Document:

Federal Home Loan Bank of Seattle Executive Supplemental Retirement Plan

 Exhibit 10.20 
  
 FEDERAL HOME LOAN BANK OF SEATTLE 
  
 EXECUTIVE SUPPLEMENTAL RETIREMENT PLAN 
  
 Effective as of 
 January 1, 2007 

 EXECUTIVE SUPPLEMENTAL RETIREMENT PLAN 
  
 INTRODUCTION 
  
 This Executive Supplemental Retirement Plan has been authorized by the Board of Directors of
the Federal Home Loan Bank of Seattle (the “Employer”) solely for the purpose of providing benefits to those employees of the Employer on or after January 1, 2007 who are designated by the Board of Directors of the Employer as eligible
Members from a select group of highly-compensated or management employees and who are not eligible to participate in the Pentegra Defined Benefit Plan for Financial Institutions (the “Pentegra Plan”) because they were hired by the Employer
on or after January 1, 2004 and they never participated in the Pentegra Plan as sponsored by any employer. The benefits payable to such employees will be the benefits that would have been payable under the Pentegra Plan that is in effect during the
2006 Plan Year, if such employees had been eligible to participate in that 2006 Pentegra Plan without regard to the limitations placed on Pentegra Plan benefits for such employees by Sections 401(a)(17) and 415 of the Internal Revenue Code, except
as otherwise provided in this Plan. 
  
 Notwithstanding the foregoing, the 2006
Pentegra Plan benefit formula used to determine an eligible employee’s benefits under this Plan may later be amended by the Board to freeze the Member’s accrued benefit under this Plan or to change the benefit formula prospectively, and to
change the definition of actuarial equivalence for purposes of determining actuarial equivalent benefits, and such benefit shall be designed to meet the requirements of Code Section 409A and applicable regulations so that payment of a Member’s
vested Plan benefits will begin from the Plan upon the earliest of an eligible Member’s termination of employment, retirement, or death and so that one of the permitted forms of payment will be elected by the eligible Member at the time he or
she becomes an eligible Member or by December 31, 2007, whichever is later, with subsequent form of payment election changes subject to the rules of Code Section 409A and applicable regulations, as provided in this Plan. 
  
 This Plan is intended to provide such benefits solely from the general assets of the Employer
and/or a grantor trust established by the Employer to pay such benefits. No benefits under this Plan shall be payable from the assets of the Pentegra Plan. 
  

 1 

 Article 1.   Definitions 
  
 When used in the Plan, the following terms shall have the following meanings: 
  
 1.01 “Actuary” means the independent consulting actuary retained by the Employer to assist the Committee in
its administration of the Plan. 
  
 1.02
“Employer” means the Federal Home Loan Bank of Seattle. 
  
 1.03 “Beneficiary” means the beneficiary or beneficiaries designated in accordance with Article 5 of the Plan to receive the benefit, if any, payable upon the death of a Member of the Plan. 
  
 1.04 “Board of Directors” means the Board of Directors of
the Employer. 
  
 1.05 “Committee” means the
Committee appointed by the Board of Directors to administer the Plan. 
  
 1.06 “Effective Date” means January 1, 2007. 
  
 1.07 “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto. 
  
 1.08 “Member” means an employee of the Employer on or after January 1, 2007, who is designated by the Board of Directors as an eligible
Member from a select group of highly-compensated or management employees, and who is not eligible to participate in the Pentegra Plan because he or she (1) was hired as an employee of the Employer on or after January 1, 2004, and (2) never
participated in the Pentegra Plan as sponsored by any employer. 
  
 1.09 “Pentegra Plan” means the Pentegra Defined Benefit Plan for Financial Institution that is in effect during the 2006 Plan Year, which is attached hereto as “Exhibit A.” 
  
 1.10 “Plan” means this Federal Home Loan Bank of Seattle
Executive Supplemental Retirement Plan. 
  
 1.11 “Plan
Year” means the calendar year. 
  

 2 

 Article 2.   Membership 
  
 2.01 Each employee of the Employer who meets the requirements of the definition of Member under Section 1.08 shall be
enrolled as a Member of the Plan on the later of January 1, 2007 or the date he or she meets the requirements of the definition of Member under Section 1.08. 
  
 2.02 If the Member thereafter no longer meets the requirements of the definition of Member under Section 1.08, his or her membership in the Plan
shall terminate on such date. 
  
 2.03 A Member’s
vested Plan benefit shall be payable under the Plan only upon the Member’s retirement, death or other termination of employment with the Employer. 
  

 3 

 Article 3.   Amount and Payment of Benefits 
  
 3.01 The amount, if any, of the annual benefit payable to or on
account of a Member pursuant to the Plan shall equal the annual benefit (as calculated by the Plan Actuary on the basis of the form of payment elected by the Member under Section 3.03 below) that would otherwise be payable to or on account of the
Member under the Pentegra Plan in effect for the 2006 Plan Year, as amended pursuant to Article 7 of this Plan, if applicable, if the Member had been eligible to participate in that Pentegra Plan and if that Pentegra Plan was administered without
regard to the limitations imposed by Sections 401(a)(17) and 415 of the Code, and on the basis of salary unreduced by elective contributions under the Employer’s Thrift Plan Benefit Equalization Plan. 
  
 For the purposes of this Section 3.01, “annual benefit” includes any “Active
Service Death Benefit”, “Retirement Adjustment Payment”, “Annual Increment” and “Single Purchase Fixed Percentage Adjustment” which the Employer elected to provide its employees under the 2006 Pentegra Plan.

  
 For purposes of this Section 3.01, the annual benefit is calculated on the
basis of the definition of Salary included in the 2006 Pentegra Plan, which determines Salary before any salary reduction contributions to the Employer’s 401(k) Plan, to the Employer’s Internal Revenue Code Section 125 flexible benefits
plan, and to the Employer’s Internal Revenue Code Section 132(f) qualified transportation fringe benefits plan. 
  
 Benefit Service and Membership Service in determining the amount of a Member’s Plan benefit is the number of years and months of service from the Member’s
Enrollment Date to retirement, death, or other termination of employment, as provided in Article III, Section 1, of the 2006 Pentegra Plan. In determining that Benefit Service and Membership Service, the Member’s Enrollment Date is the date the
Member would have been enrolled in the Pentegra Plan if he or she had been eligible to participate in that plan, which date is the first day of the month after the Member completed three months of service with the Employer and attained age 21.
Provided, however, that to receive such Benefit Service and Membership Service, the Member must complete 1000 Hours of Service with the Employer in the 12-consecutive-month period commencing on his or her Enrollment Date as defined in the preceding
sentence, and must complete 1000 Hours of Service in each calendar year commencing after such Enrollment Date for Benefit Service and Membership Service to accrue for that 12-consecutive-month period and for each calendar year thereafter, as
provided in Article X, Section 3, of the 2006 Pentegra Plan. 
  
 Vesting Service
is the Member’s period of employment with the Employer measured from the first day of the month in which the Member is hired by the Employer to the last day of the month in which the Member terminates employment with the Employer, subject to
the terms of the 2006 Pentegra Plan. 
  
 3.02 Unless the
Member elects a form of payment under the Plan pursuant to Section 3.03 below, the annual benefit, if any, payable to or on account of the Member under Section 3.01 above, shall be converted by the Actuary and shall be payable to or on account of
the Member in the “Regular Form” of payment, utilizing for that purpose the same actuarial factors and assumptions used by the 2006 Pentegra Plan to determine actuarial equivalence 

  

 4 

 
unless the Board amends this Plan to change the definition of actuarial equivalence for purposes of determining actuarial equivalent benefits under this
Plan. For purposes of the Plan, the “Regular Form” of payment means an annual benefit payable for the Member’s lifetime and the death benefit described in Section 3.04 below. 
  
 3.03 (a) Within 30 days after an employee becomes a Member in
this Plan or by December 31, 2007, whichever is later, a Member must make an initial written election of the form of payment in which his or her vested Plan benefits will be distributed. If no initial election is made by the later of such dates, the
Member’s initial election of his or her form of payment shall be deemed to be the Regular Form of Payment under the Plan, which is an annual single life annuity for the Member’s life plus the death benefit described in Section 3.04 of the
Plan (a lump sum payment to the Member’s beneficiary equal to 12 times the annual benefit less the amount of the payments the Member has already received under the Plan prior to his or her death.) The Member’s initial written election of
the form of payment of his or her Plan benefits shall be one of the following forms of payment, notwithstanding any language in the 2006 Pentegra Plan to the contrary: 
  
 i. Regular Form of Payment - Single Life Annuity Plus Death Benefit. A Member who elects the Regular Form of Payment
will receive his or her vested Plan benefit in the form of a single life annuity for the Member’s lifetime plus the death benefit described in Section 3.04 of the Plan (a lump sum payment to the Member’s beneficiary equal to 12 times the
Member’s annual benefit less the amount of the payments the Member already had received under the Plan prior to the Member’s death). 
  
 ii. Lump Sum Payment - A Member who elects a lump sum payment will receive his or her vested Plan benefits in the form of a lump sum payment if the
Member is at least age 45 at the time of retirement or termination of employment with the Employer. Such payment will be made within 60 days after the Member’s retirement or termination of employment, less applicable tax withholding. After this
lump sum payment is made, no further Plan benefits are payable to the Member or to any beneficiary. If the Member who has elected a lump sum payment is not at least age 45 at the time of retirement or termination of employment, his or her vested
Plan benefits will be paid in the Regular Form of Payment under Section 3.02. 
  
 iii. Single Life Annuity With No Death Benefit - A Member who elects a single life annuity with no death benefit will receive his or her vested Plan benefits in the form of a single life annuity for the
Member’s lifetime, with all Plan payments ending at the Member’s death, and with no death benefit to any beneficiary. 
  
 iv. Joint and 100% Survivor Annuity with 120 Months Certain - A Member who elects a joint and 100% survivor annuity with 120 months certain will
receive his or her vested Plan benefits in the form of a joint and 100% survivor annuity for the Member’s life that would continue after the Member’s death at the rate of 100% to the Member’s joint annuitant if he or she survives the
Member. If they both die before 120 monthly installment payments have been paid, the commuted value of those unpaid installments will be paid to the Member’s beneficiary. 
  

 5 

 v. Joint and 50% Survivor Annuity - A Member who elects a joint and 50% survivor annuity will
receive his or her vested Plan benefits in the form of a joint and 50% survivor annuity for the Member’s life that would continue after the Member’s death to the Member’s joint annuitant, if he or she survives the Member, at the rate
of 50% of the amount payable during the life of the Member. 
  
 vi. Partial Lump Sum/Partial Life Annuity - A Member who elects a partial lump sum/partial life annuity will receive his or her vested Plan benefits in the form of a partial lump sum payment equal to 20%, 50% or 75% of the
Member’s vested Plan benefits as elected by the Member, and a single life annuity for the Member’s lifetime for the remainder of the Member’s vested Plan benefits, if the Member has attained age 45 at the time of retirement or
termination of employment with the Employer. After the Member’s death, no further Plan benefits are payable to the Member or to any beneficiary. If a Member elects a partial lump sum/partial life annuity and is not age 45 at the time of
retirement or termination of employment, his or her vested Plan benefits will be paid in the Regular Form of Payment under Section 3.02. 
  
 3.03 (b) Each form of payment under Section 3.03 (a) will have the same actuarial equivalent values, as determined by the Plan Actuary utilizing
for that purpose the same actuarial factors and assumptions used by the 2006 Pentegra Plan to determine actuarial equivalence, unless the Board amends this Plan to change the definition of actuarial equivalence for purposes of determining actuarial
equivalent benefits under this Plan. 
  
 3.03 (c) A
Member’s initial written election of the form of payment of his or her vested Plan benefits may be changed in the future (i) if the Member’s make that written election to change the form of payment at least 12 months prior to the date of
the Member’s retirement or termination of employment, and (ii) as long as the distribution date for commencement of payment of the Member’s vested Plan benefits is also changed to a date at least five years later than the Member’s
date of retirement or termination of employment, if that additional five year deferral of the time of payment is required by Code Section 409A and applicable regulations. The new election will not be effective until the date that is 12 months after
it is made in writing and delivered to the Plan Committee. 
  
 3.03 (d) If a Member had elected a form of payment under Section 3.03 (a)(ii), (iii), (iv), (v) or (vi) and dies after the date his benefit payments under the Plan had commenced, the only death benefit, if any, payable under the Plan
in respect of said Member shall be the amount, if any, payable under the form of payment which the Member had elected under the Plan. If a Member had elected a form of payment under this Section 3.03 and dies before the date his benefit payments
under the Plan commence, that form of payment election does not apply and the lump sum death benefit described in Section 3.04 below shall be paid to the Member’s beneficiary. 
  
 3.03 (e) Election of a form of payment under this Section 3.03 may be made only on a form prescribed by the Committee
and filed by the Member with the Committee as provided under Section 3.03(a) above. 
  
 3.04 Upon the death of a Member who is receiving the Regular Form of Payment (a Single Life Annuity Plus Death Benefit) under Section 3.02 or 3.03 above, or upon the death of a 

  

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Member who died before his or her benefit payments under the Plan commenced, a death benefit shall be paid to the Member’s beneficiary in a lump sum
equal to the excess, if any, of (i) over (ii), where 
  
 i.
is an amount equal to 12 times the annual benefit, if any, payable under Section 3.02 or Section 3.03(a)(i) above, and 
  
 ii. is the sum of the benefit payments, if any, which the Member had received under the Plan. 
  
 3.05 If a Member is restored to employment with the Employer after
payment of his benefit under the Plan has commenced, all payments under the Plan shall thereupon be discontinued. Upon the Member’s subsequent retirement or termination of employment with the Employer, his benefit under the Plan shall be
recomputed in accordance with Sections 3.01, 3.02, 3.03 and 3.04, and any amendments made to this Plan, including amendments to the 2006 Pentegra benefit formula, but shall be reduced by the actuarial equivalent value of the amount of any benefit
paid by the Plan in respect of his previous retirement or termination of employment, and such reduced benefit shall be paid to the Member in accordance with the provisions of the Plan. For purposes of this Section 3.05, the actuarial equivalent
value to the benefit paid in respect of a Member’s previous retirement or termination of employment shall be determined by the Actuary utilizing for that purpose the same actuarial factors and assumptions used by the 2006 Pentegra Plan to
determine actuarial equivalence, unless the Board amends this Plan to change the actuarial equivalence definition for purposes of determining the actuarial equivalent value to that benefit. 
  

 7 

 Article 4.   Source and Method of Payments 
  
 4.01 All payments of benefits under the Plan shall be paid from, and
shall only be a general claim upon, the general assets of the Employer, notwithstanding that the Employer, in its discretion, may establish a bookkeeping reserve or a grantor trust (as such term is used in Sections 671 through 677 of the Code) to
reflect or to aid it in meeting its obligations under the Plan with respect to any Member or beneficiary. No benefit whatever provided by the Plan shall be payable from the assets of the Pentegra Plan. No Member shall have any right, title or
interest whatever in any investments which the Employer may make or any specific assets which the Employer may reserve to aid it in meeting its obligations under the Plan. 
  
 4.02 Should the Employer choose to establish a bookkeeping reserve or a grantor trust, the amount of the reserve or
the funding of the trust may be based upon actuarially determined amounts reflecting the benefit payable, and funding of any grantor trust shall be subject to approval by the Board of Directors and the Federal Housing Finance Board. 
  
 4.03 Subject to Section 3.04, all vested Plan benefit payments shall
commence within 60 days following the Member’s termination of employment, death, or retirement date as defined in the Pentegra Plan. 
  

 8 

 Article 5.   Designation of Beneficiaries 
  
 5.01 The beneficiary who shall be entitled to receive the amount, if
any, payable under the Plan upon a Member’s death shall be the beneficiary whom the Member has designated on a Plan beneficiary designation form provided to the Member by the Committee. 
  
 5.02 If no such valid Plan beneficiary designation is in effect at the
time of a Member’s death, or if no designated beneficiary survives the Member, the Member’s estate shall be deemed to have been designated his beneficiary and shall be paid the amount, if any, payable under the Plan upon the Member’s
death. If the Committee is in doubt as to the right of any person to receive such amount, the Committee may pay such amount into any court of appropriate jurisdiction and such payment shall be a complete discharge of the liability of the Plan and
the Employer therefor. 
  

 9 

 Article 6.   Administration of the Plan 
  
 6.01 The Board of Directors has delegated to the Committee, subject to
those powers which the Board has reserved as described in Article 7 below, general authority over and responsibility for the ministerial administration of the Plan. The Committee shall, subject to the review and approval of the Human Resources
Committee of the Board of Directors, interpret and construe the Plan, make all determinations considered necessary or advisable for the administration of the Plan and the calculations of the amount of benefits payable thereunder, and review claims
for benefits under the Plan. The Human Resources Committee of the Board of Directors’ interpretations and constructions of the Plan and its decisions or actions thereunder shall be binding and conclusive on all persons for all purposes.

  
 6.02 If the Committee deems it advisable, it shall
arrange for the engagement of the Actuary, and legal counsel and certified public accountants (who may be counsel or accountants for the Employer), and other consultants, and make use of agents and clerical or other personnel, for purposes of the
Plan. The Committee may rely upon the written opinions of such Actuary, counsel, accountants, and consultants, and delegate to any agent or to any subcommittee or Committee member its authority to perform any act hereunder, including without
limitations those matters involving the exercise of discretion; provided, however, that such delegations shall be subject to revocations at any time at the discretion of the Committee. The Committee shall report to the Human Resources Committee of
the Board of Directors at least once each calendar year with regard to the matters for which it is responsible under the Plan. 
  
 6.03 The Committee shall consist of at least three individuals, each of whom shall be appointed by, shall remain in office at the will of, and may
be removed, with or without cause, by the Board of Directors. No Committee member shall be entitled to act on or decide any matters relating solely to such member or any of his rights or benefits under the Plan. Any Committee member may resign at
any time. A Committee member shall not receive any special compensation for serving in such capacity but shall be reimbursed for any reasonable expenses incurred in connection therewith. No bond or other security need be required of the Committee or
any member thereof in any jurisdiction. 
  
 6.04 The
Committee shall elect or designate its own Chairman, establish its own procedures and the time and place for its meetings and provide for the keeping of minutes of all meetings. Any action of the Committee may be taken upon the affirmative vote of a
majority of the members at a meeting or, at the direction of its Chairman, without a meeting by mail or telephone, provided that all of the Committee members are informed in writing of the vote. 
  
 6.05 All claims for benefits under the Plan shall be submitted in
writing to the Chairman of the Committee. The Committee will present its determination regarding all claims to the Human Resources Committee of the Board of Directors for approval. Written notice of the decision on each such claim shall be furnished
with reasonable promptness to the Member or his beneficiary (the “claimant”). The claimant may request a review by the Human Resources Committee of the Board of Directors of any decision denying the claim in whole or in part. Such request
shall be made in writing and filed with the Human Resources Committee of the Board of Directors within 30 days of such denial. A request for review shall contain all additional information which the claimant wishes the Human Resources Committee of
the Board of 

  

 10 

 
Directors to consider. The Human Resources Committee of the Board of Directors may hold any hearing or conduct any independent investigation which it deems
desirable to render its decision, and the decision on review shall be made as soon as feasible after the Human Resources Committee of the Board of Directors’ receipt of the request for review. Written notice of the decision on review shall be
furnished to the claimant. For all purposes under the Plan, such decisions on claims (where no review is requested) and decisions on review (where review is requested) shall be final, binding and conclusive on all interested persons as to all
matters relating to the Plan. 
  
 6.06 All expenses
incurred by the Committee and the Human Resources Committee of the Board of Directors in its administration of the Plan shall be paid by the Employer. 
  

 11 

 Article 7.   Amendment and Termination 
  
 7.01 The Board of Directors may amend, suspend or terminate, in whole
or in part, the Plan without the consent of the Committee, any Member, beneficiary or other person, except that no amendment, suspension or termination shall retroactively impair of otherwise adversely affect the vested rights of any Member,
beneficiary or other person to benefits under the Plan which have accrued prior to the date of such action. Provided, however, that the 2006 Pentegra Plan benefit formula used to determine a Member’s benefits under this Plan may be amended by
the Board to freeze the Member’s accrued benefit under this Plan or to change the benefit formula prospectively, the Board may amend this Plan to change the definition of actuarial equivalence for purposes of determining actuarial equivalent
benefits, and the Member’s benefit shall be designed to meet the requirements of Code Section 409A and applicable regulations. 
  
 The Board of Directors also delegates amendment authority to the Committee to adopt Plan amendments which are of an administrative nature or are required
under applicable law, provided that any such amendment is reported to the Board within 21⁄2 months after the end of the Plan Year in which that amendment is adopted. 
  

 12 

 Article 8.   General Provisions 
  
 8.01 The Plan shall be binding upon and inure to the benefit of the
Employer and its successors and assigns and the Members, and the successors, assigns, designees and estates of the Members. The Plan shall also be binding upon and inure to the benefit of any successor organization succeeding to substantially all of
the assets and business of the Employer, but nothing in the Plan shall preclude the Employer from merging or consolidating into or with, or transferring all or substantially all of its assets to, another organization which assumes the Plan and all
obligation of the Employer hereunder. The Employer agrees that it will make appropriate provision for the preservation of the Members’ rights under the Plan in any agreement or plan which it may enter into to effect any merger, consolidation,
reorganization, or transfer of assets. Upon such a merger, consolidation, reorganization, or transfer of assets and assumption of Plan obligations of the Employer, the term “Employer” shall refer to such other organization and the Plan
shall continue in full force and effect to the extent such successor organization has assumed the Plan. If such successor organization does not assume the Plan, the Employer remains liable for payment of Plan benefits under this Plan. 
  
 8.02 Neither the Plan nor any action taken thereunder shall be
construed as giving to a Member the right to be retained in the employ of the Employer or as affecting the right of the Employer to dismiss any Member from its employ. 
  
 8.03 The Employer shall withhold or cause to be withheld from all benefits payable under the Plan all federal, state,
local or other taxes required by applicable law to be withheld with respect to such payments. 
  
 8.04 No right or interest of a Member under the Plan may be assigned, sold, encumbered, transferred or otherwise disposed of and any attempted disposition of such right or interest shall be null and void.

  
 8.05 If the Committee shall find that any person to
whom any amount is or was payable under the Plan is unable to care for his or her affairs because of illness or accident, or is a minor, or has died, then any payment, or any part therefor, due to such person or his or her estate (unless a prior
claim therefor has been made by a duly appointed legal representative), may, if the Committee is so inclined, be paid to such person’s spouse, adult child or other relative, an institution maintaining or having custody of such person, or any
other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment. Any such payment shall be in complete discharge of the liability of the Plan and the Employer therefor. 
  
 8.06 The unpaid balance of any account maintained pursuant to this
Plan is an unsecured, general obligation of the Employer. All amounts deferred hereunder remain the unrestricted assets of the Employer. Any assets purchased shall remain the sole property of the Employer subject to the claims of its general
creditors and shall be available for the Employer’s use for whatever purpose desired. No Participant hereunder shall have any right other than the unsecured promise of the Employer to pay deferred Compensation in the future. No Participant has
ownership rights with respect to any asset of the Employer by reason of his or her participation in this Plan. 
  

 13 

 8.07 All elections, designations, requests, notices, instructions, and other communications from a
Member, beneficiary or other person to the Committee required or permitted under the Plan shall be in such form as is prescribed from time to time by the Committee and shall be mailed by first-class mail or delivered to such location as shall be
specified by the Committee and shall be deemed to have been given and delivered only upon actual receipt thereof at such location. 
  
 8.08 The benefits payable under the Plan shall be in addition to all other benefits provided for employees of the Employer and shall not be deemed
salary or other compensation by the Employer for the purpose of computing benefits to which any employee may be entitled under any plan or arrangement of the Employer. 
  
 8.09 No Committee member shall be personally liable by reason of any instrument executed by him or her or on his or
her behalf, or action taken by him or her, in his or her capacity as a Committee member nor for any mistake of judgment made in good faith, unless due to the Committee member’s willful misconduct or gross negligence. The Employer shall
indemnify and hold harmless each Committee member and each employee, officer or director of the Employer, to whom any duty, power, function or action in respect of the Plan may be delegated or assigned, against any cost or expense (including fees of
legal counsel) and liability (including any sum paid in settlement of a claim or legal action with the approval of the Employer) arising out of anything done or omitted to be done in connection with the Plan, unless arising out of such person’s
fraud, bad faith, willful misconduct or gross negligence. 
  
 8.10 As used in the Plan, the masculine gender shall be deemed to refer to the feminine, and the singular person shall be deemed to refer to the plural, wherever appropriate. 
  
 8.11 The captions preceding the section of the Plan have been inserted
solely as a matter of convenience and shall not in any manner define or limit the scope or intent of any provisions of the Plan. 
  
 8.12 The Plan shall be construed, administered and enforced according to the laws of the State of Washington in effect from time to time. Venue
shall also be in the State of Washington. 
  
 This Executive
Supplemental Retirement Plan has been duly executed by the Employer’s authorized representative this ____ day of ________, 2006, to be effective as of the 1st day of January, 2007. 
  

					
	FEDERAL HOME LOAN BANK OF SEATTLE
		
	By:	 	  

		 	Its	 	  

  

 14Employment Agreement by and between Beverly National Corp. and Donat A. Fournier

 Exhibit 10.4 
 EMPLOYMENT AGREEMENT 
 AGREEMENT made and entered into as of the 9th day of July, 2002 by and between
Beverly National Corporation, a Massachusetts corporation having its principal place of business at 240 Cabot Street in Beverly, Massachusetts 01915 (“Company”), and Donat Fournier with a principal residence of 17 Homestead Road in West
Simsbury, Connecticut 06092-2227 (the “Employee”). 
 W I T N E S S E T H    T H A T: 
 WHEREAS the Company wishes to employ the Employee as its President and as the President of The Beverly National Bank, a wholly-owned subsidiary of the
Company (the “Bank”); and 
 WHEREAS the Employee desires to be so employed. 
 NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1. Term. The period of employment of the
Employee under this Agreement shall be deemed to commence as of August 1, 2002 and shall continue in effect through July 31, 2005. On July 31, 2005 and on each subsequent anniversary thereof, the term of this Agreement shall
automatically extend for an additional year unless, not later than the proceeding January 31st either party notifies the other by written notice of his or its intent not to extend the same. Notwithstanding the foregoing provisions of this
Section 1, his employment shall terminate in any event upon the Employee’s attainment of age sixty-six (66) or, if earlier, the normal retirement age provided in the Bank’s retirement plan, and the Employee may resign from, and
terminate his employment by, the Company at any time upon ninety (90) days prior written notice to the Company. 
 2. Capacity.

 (a) At all times during the term hereof, the Company shall employ the Employee as its President and Chief Executive
Officer. In such capacity, the Employee shall be assigned only such duties and tasks as are appropriate for a person in the position of President and Chief Executive Officer, and he shall be subject to the supervision of the Board of Directors of
the Company. The Company shall employee the Employee on full-time basis, and (subject to the last sentence of this paragraph) the Employee shall devote his full time and professional efforts to the performance of his duties as President of the
Company and any office he may hold in each of its subsidiaries. It is the intention of the Company and the Employee that the Employee shall have full discretionary authority to control the day-to-day operations of the Company and each subsidiary of
the Company and to incur such obligations on behalf of such entities as may be required in the ordinary course of their business. The Company encourages participation by the Employee on community boards and committees and in activities generally
considered to be in the public interest, but the Company shall have the right to approve the Employee’s participation on such other boards and committees as may conflict with the Company’s own business or demands upon the Employee’s
time. 
 (b) During the period of his employment by the Company the Employee agrees to serve as President and Chief Executive
officer of the Bank without additional compensation, except for reimbursement for all reasonable out-of-pocket expenses. In the event that during the term of his employment the Employee is terminated as President and Chief Executive Officer of the
Bank involuntarily without Cause, as hereinafter defined (except that for such purpose such definition shall refer to the Bank rather than the Company), the Employee shall have the right to resign as President of the Company for Good Reason, in
which case he shall be entitled to the benefits set forth in Section 8(d). 
 (c) The Company represents that Employee
has been duly elected a director of the Company and of the Bank effective August 1, 2002. 

 (d) The Company agrees to propose to its shareholders at each Annual Meeting of
Shareholders during the term hereof for which he is otherwise eligible, the reelection of the Employee as a Director of the Company, to vote for the reelection of the Employee as a Director of the Bank and to cause Employee to be employed as the
President and Chief Executive officer of the Company and the Bank. 
 3. Compensation and Benefits. 
 (a) Base Compensation. The Company shall pay to the Employee in equal monthly installments a base annual salary in the amount of
Two Hundred Thousand Dollars $200,000.00) Dollars. The base annual salary of the Employee shall be adjusted upward from time to time in the sole discretion of the Company, in which case such increased amount shall thereafter constitute the
Employee’s base annual salary. It is the intention of the Company to compensate the Employee at a level at least comparable to the compensation of persons employed in the position of President and Chief Executive Officer of companies engaged in
New England in activities substantially similar to those of the Company and having approximately the same combined gross assets as the Company and its subsidiaries. 
 (b) Benefits. At all times during the term of this Agreement, the Company shall provide or cause to be provided to the Employee the
benefits set forth on Exhibit A to this Agreement, together with such other benefits as may from time to time be provided generally for executive officers of the Company or the Bank. The Employee shall maintain adequate records of all reimbursable
expenses necessary to satisfy reporting requirements of the Internal Revenue Code and applicable Treasury regulations. 
 4.
Non-Competition. At all times during which the Employee is employed by the Company under this Agreement and for a period of one (1) year thereafter, the Employee shall not, directly or indirectly, as an employee of any person or entity
(whether or not engaged in business for profit), individual proprietor, partner, stockholder, director, officer, joint venturer, investor, lender or in any other capacity whatever (otherwise than as holder of less than ten (10) percent of any
securities publicly traded in the market) compete within (i) the City of Beverly, Massachusetts, or the Towns of Hamilton or Manchester, Massachusetts, or (ii) municipalities contiguous to the City of Beverly, Massachusetts, the Town of
Hamilton, Massachusetts, or the Town of Manchester, Massachusetts or (iii) any other Cities or Towns in which the Bank may locate during the term of this Agreement, with the business of the Company or any of its subsidiaries, as such businesses
are constituted at any time during the term of this Agreement. For purposes of this Section 4, the Employee’s ownership of or employment by an institution doing business in Beverly, Massachusetts, Hamilton, Massachusetts, Manchester,
Massachusetts, in municipalities contiguous to Beverly, Hamilton or Manchester, Massachusetts or in such other Cities or Towns, but having its principal place of business elsewhere, shall not constitute competition hereunder so long as the Employee
does not solicit business in Beverly, Hamilton, or Manchester, in such contiguous municipalities, or in such other Cities or Towns, as the case may be. 
 5. No Solicitation of Employees. At all times during which the Employee is employed under this Agreement and for a period of one (1) year thereafter, the Employee shall not, directly or indirectly, employ,
attempt to employ, recruit or otherwise solicit, induce or influence to leave his employment any employee of the Company or its subsidiaries. This Section shall not apply to solicitation by a future employer of Employee who takes such actions
without the assistance or consent of the Employee. 
 6. No Disclosure of Information. The Employee shall not at any time divulge,
use, furnish, disclose or make accessible to anyone other than the Company or any of its subsidiaries any knowledge of information with respect to confidential or secret data, procedures or techniques of the Company or any of its subsidiaries,
provided, however, that nothing in this Section 6 shall prevent the disclosure by the Employee of any such information which at any time comes in to the public domain other than as a result of the violation of the terms of this Section 6
by the Employee or which is otherwise lawfully acquired by the Employee. 
 7. Termination of Employment. The employment of the
Employee shall terminate on the earliest to occur of the following dates: 
 (a) The expiration of the term hereof as provided
in Section 1 hereof or as from time to time extended; 
  

 2 

 (b) The Employee’s resignation from the Company or the death or disability of the
Employee; 
 (c) Upon the election of the Company, for Cause, as hereinafter defined, after ten (10) business days’
prior written notice to the Employee and by an affirmative vote of not less than three fourths (3/4) of the entire Board of the Company at a meeting held for such purpose at which the Employee shall be granted an opportunity to be heard, for
Cause, as hereinafter defined. For purposes of this Agreement, the Company shall be deemed to have “Cause” to terminate the employment of the Employee under this Agreement only if: 
  

	 	(i)	The Employee is convicted by a court of competent jurisdiction of any criminal offense involving dishonesty or breach of trust; 

  

	 	(ii)	The Employee shall commit an act of fraud materially evidencing bad faith toward the Company or any of its subsidiaries; 

  

	 	(iii)	The Employee fails (after demand and an opportunity to correct as set forth below) to substantially perform the duties reasonably assigned to him by the Board of Directors of the
Company which are normal and customary for an Employee in a similar position in a substantially similar company in Massachusetts (other than any such failure resulting from the Employee’s incapacity due to physical or mental illness). The Board
shall first make a written demand for substantial performance to Employee by the Board of Directors of the Company. Such demand shall specifically identify the objective and reasonable standards which such board believes that Employee has not
substantially performed such duties. Such demand shall also specify a reasonable time for Employee to demonstrate objectively to the Board of Directors of the Company that he has substantially performed the duties reasonably assigned to him.

 (d) At the election of the Employee, for Good Reason, as hereinafter defined, after ten (10) business
days written notice of the basis thereof to the Company if during such period the Company shall not cure the basis thereof. For the purpose of this Agreement, the Employee shall be deemed to have “Good Reason” to terminate his employment
only if the Company is in material breach of this Agreement or any other written agreement the Company may have with the Employee, or if the Employee resigns as President of the Company as provided in Subsection 2b hereof. 
 (e) Upon the election of the Company, without Cause (as hereinabove defined), after ten (10) business days prior written notice to
the Employee and by the affirmative vote of not less than a majority of the entire Board of the Company at a meeting held for such purposes at which the Employee shall be granted an opportunity to be heard, for any reason other than Cause.

 8. Payments Upon Termination of Employment. 
 (a) Payments Upon Death. If at any time while he is employed hereunder the Employee shall die, in addition to all other benefits to
which he or his personal representatives may be entitled, the Company shall pay to his designated beneficiary or, if no such beneficiary exists, to his estate, for a period of three (3) months following the Employee’s death, such amounts
of base annual salary as the Employee would have been entitled to receive during said period (and at the times he would have been entitled to receive them) had he remained alive. 
 (b) Payments Upon Disability. If at any time during the term of this Agreement, in the opinion of a physician mutually agreeable to
the Company and the Employee, the Employee shall be determined to be unable to render services hereunder due to physical or mental illness or accident, in addition to all other benefits to which he or his personal representatives may be entitled,
the Employee shall be entitled to receive all benefits payable to him under the Bank’s long-term disability income plan. Notwithstanding the above, the Employee will be deemed to be disabled if he has been unable for one hundred eighty
(180) consecutive days to render services required to be rendered by him during the term hereof. 
 (c) Payments upon
Expiration of Term Without Renewal. In the event that employment pursuant to this Agreement shall expire without renewal, the Employee shall be entitled to receive compensation through the date of expiration and shall be entitled to purchase at
Bank’s book value any Bank-owned automobile then being used by him. 
  

 3 

 (d) Payments Upon Termination Without Cause or for Good Reason. If at any time
during the term of this Agreement (as provided in Section 1 hereof) the employment of the Employee is terminated (i) voluntarily for Good Reason or (ii) involuntarily for any reason except for termination for Cause under
Section 7c, as heretofore defined, then in such case: 
  

	 	(i)	Within five days after such termination, the Company shall pay to the Employee (or to his personal representative in case of death), the sum of all accrued and unpaid compensation
through the date of such termination, plus a lump sum amount equal to twelve months’ base annual salary as in effect as of the date of such termination. 

  

	 	(ii)	The Company shall maintain or cause to be maintained in effect for the Employee for a period of twelve months following such termination, at the Company’s sole expense, all
group insurance (including life, health, accident and disability insurance) and all other employee benefit plans, programs or arrangements (other than the Bank’s retirement plan, the Bank’s profit-sharing plan, and the Company’s
employee stock ownership plan), in which the Employee was participating at any time during the twelve (12) months preceding such termination. 

  

	 	(iii)	The Employee shall be entitled to purchase at Bank’s book value any Bank-owned automobile then being used by him. 

  

	 	(iv)	The Employee shall not be required to mitigate the amount of any payment provided for in this Section 8(d) by seeking employment or otherwise. 

 In the event that the Employee’s participation in any of the foregoing plans, programs or arrangements (including those contemplated by Subsection
(d) hereof) is barred by law or otherwise, or in the event that any such plan, program or arrangement is discontinued or the benefits thereunder are materially reduced during such period, the Company shall provide the Employee with benefits
substantially similar to those to which the Employee was entitled immediately prior to the date of his termination of employment. Upon expiration of the period of coverage provided hereunder, the Employee shall be provided with the opportunity to
have assigned to him at no cost and with no appointment of prepaid premiums any assignable insurance owned by the Company or any of its subsidiaries and relating specifically to the Employee. 
 9. Payments upon Termination for Cause. If at any time during the term of this Agreement, Employee is terminated for Cause pursuant to
Section 7(c) hereof, the Company shall pay Employee, to the extent it has not been previously paid, an amount equal to Employee’s full base salary through the date of Employee’s termination of employment at the rate in effect at that
time and the Company shall have no further obligation to Employee under this Agreement. 
 10. Notices. Notices under this Agreement
shall be in writing and shall be mailed by registered or certified mail, effective upon receipt, addressed as follows: 
  

	 	(a)	To the Company: Beverly National Corporation 

 240 Cabot
Street 
 Beverly, Massachusetts 01915 
 Attention: Treasurer 
  

	 	(b)	To the Employee: Mr. Donat Fournier 

 17 Homestead
Road 
 West Simsbury, CT 06092-2227 
 Either party may by notice in writing change the address to which notices to it or him are to be addressed hereunder. 
  

 4 

 10. Arbitration. Any dispute or controversy arising under or in connection with this Agreement
shall be settled exclusively by arbitration in Boston, Massachusetts, in accordance with the rules of the American Arbitration Association then in effect. Notwithstanding the pendency of any such dispute or controversy, the Company will pay the
Employee promptly an amount equal to his full compensation in effect when the notice giving rise to the dispute was given (including, but not limited to, base salary) and shall provide or cause to be provided to the Employee all compensation,
benefits and insurance plans in which he was participating when the notice giving rise to the dispute was given, until the dispute is finally resolved. Amounts paid under this Section 10 are in addition to all other amounts due under this
Agreement and shall not be offset against or reduce any other amounts due under this Agreement. Judgment may be entered on the arbitrator’s award in any court having jurisdiction; provided, however, that the Employee shall be entitled to seek
specific performance of his right to be paid as specified in this Section 10. 
 11. Miscellaneous. 
 (a) Indemnification. During the period of his employment hereunder, the Company agrees to indemnify the Employee in his capacity as
a director and officer of the Bank, the Company, and, each subsidiary of either, all to the maximum extent permitted under the laws of the Commonwealth of Massachusetts and applicable banking rules and regulations. The provisions of the
Section 11(a) shall survive expiration or termination of this Agreement for any reason whatsoever. 
 (b) Legal
Fees. The Company shall pay to the Employee all reasonable legal fees and expenses incurred by him in contesting or disputing any termination of this Agreement or in seeking to obtain or enforce any right or benefit provided by this Agreement,
provided that the final resolution of such matter principally is in Employee’s favor. 
 (c) Entire Agreement.
This Agreement constitutes the entire Agreement between the parties and may not be changed except by a writing duly executed and delivered by the Company and the Employee in the same manner as the Agreement. 
 (d) Governing Law. This Agreement is governed by and shall be construed in accordance with the laws of the Commonwealth of
Massachusetts. Employee agrees that it supersedes in all respects any prior agreement between the Company or the Bank and the Employee. 
 (e) Binding Effect; Non-Assignability. This Agreement shall be binding upon the Company and inure to the benefit of the Company and its successors. Neither this Agreement nor any rights arising hereunder may be
assigned or pledged by the Employee during his lifetime. This Agreement shall inure to the benefit of and be enforceable by the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees
and legatees. 
 (f) Time is of the Essence. It is expressly understood by the Obligors that time is of the essence in
performance of all terms and conditions of this Agreement. 
 (g) Duplicate Originals. Two or more duplicate originals
of this Agreement may be signed by the parties hereto, each of which shall constitute one and the same instrument. 
 (h)
Captions. The caption of the sections of this Agreement are for the purpose of convenience only and are not intended to be a part of this Agreement and shall not be deemed to modify, explain, enlarge or restate any of the provisions in this
Agreement. 
  

 5 

 IN WITNESS WHEREOF, the parties hereto have executed the within instrument as a sealed document as of the
date first above written. 
  

									
	ATTEST	 		 	BEVERLY NATIONAL CORPORATION
				
	/s/ Paul Germano	 		 	By:	 	/s/ Alice B. Griffin
		 		 		 		 	Its Duly Authorized Representative
				
		 		 		 	/s/ Donat A. Fournier
		 		 		 	Donat A. Fournier, Individually

  

 6 

 EXHIBIT A 
 TO 
 EMPLOYMENT AGREEMENT 
 BY AND BETWEEN 
 BEVERLY NATIONAL CORPORATION 
 AND 
 DONAT FOURNIER 
 DATED: July 9, 2002 
  

	1.	Automobile - The Employee shall be entitled to the exclusive use of an automobile the value of which shall not be unreasonable in view of the Employee’s position consistent
with Company policy. The automobile may be replaced every three (3) years or seventy thousand (70,000) miles, whichever occurs first. 

  

	2.	Vacation - The Employee shall be entitled to five (5) weeks paid vacation in each calendar year during the term of the Agreement. A vacation period should not be for more than
four weeks or less than two weeks. The Employee shall also be entitled to all paid holidays recognized by the Bank. 

  

	3.	Club Memberships - Upon concurrence of the Board of Directors of the Company the Employee shall be entitled to reimbursement for club membership fees and dues at a local country
club of his choice and consistent with Internal Revenue Service Regulations, such other club membership fees and dues as shall be determined to be in the best interests of the Company. 

  

	4.	Conventions, Seminars and Travel - The Employee shall be entitled at no expense to the Employee to attend conventions and seminars consistent with the business of the Company and
the Bank and his position therewith. 

  

	5.	General Reimbursement - The Employee shall be entitled to reimbursement for any and all expenses incurred by him reasonably related to and incurred on account of advancement of the
interests of the Bank. 

  

	6.	Pension Plan - The Employee shall be entitled to participate in the Bank’s retirement plan as amended from time to time. 

  

	7.	401(k) Profit Sharing Plan - The Employee shall be entitled to participate in the Bank’s 401(k) profit sharing plan as amended from time to time. 

  

	8.	Incentive Stock Option Plan - The Employee shall be entitled to participate in the Company’s incentive stock options plans in effect from time to time.

  

	9.	Directors’ Plan - The Employee shall be entitled to participate in the Company’s Directors’ Plans in effect from time to time. The Employee shall not be entitled to
receive fees for attendance at meetings of the Board or of any committees thereof. 

  

	10.	Employee Stock Ownership Plan - The Employee shall be entitled to participate in the Company’s employee stock ownership plan in effect from time to time.

  

	11.	Insurance - The Employee shall be entitled to participate in all insurance programs and benefits as outlined and subject to the limitations contained in the Summary of Employee
Benefits maintained by the Company or the Bank including life, health, accident and disability. The Company shall reimburse Employee for his COBRA health insurance cost prior to Employee’s eligibility under the Company’s health insurance
plan. The Company shall provide Employee with key man life insurance in such amounts as shall be mutually agreed upon. 

  

	12.	Moving expenses to cover the cost of the amount of all household goods and furnishings from West Simsbury, Connecticut to a community within the Company’s present service area
and for reasonable temporary lodging expenses, which in the aggregate shall not exceed $15,000. 

  

	13.	 Bank’s Incentive Plan - The Employee will be entitled to participate in the Bank’s incentive plan in effect from time to time. Targets are determined
annually at budget time. Awards for President/CEO range from 0% to 40% 

  

 7 

	 	 
of cash compensation of President/CEO. For employment through December 31, 2002, Employee shall receive a bonus of $35,000, payable not later than
March 31, 2003. 

  

	14.	Signing Bonus of Treasury Stock - The Company shall award Employee, as bonuses, 500 shares of Company’s common stock on each of August 1, 2003, August 1,
2004, August 1, 2005, August 1, 2006 and August 1, 2007, provided that Employee’s employment with the Company (or any successor) has not been previously terminated as a result of resignation, death, disability or for
Cause. A Certificate shall be issued as soon as practical after each such award and such compensation shall be included in Employee’s W-2 compensation. 

  

	15.	Supplemental Executive Retirement Plan - The plan will be set forth in a separate agreement to be agreed by Company and Employee, based upon Employee’s existing plans and
Company contributions in the future. 

  

	16.	Change in Control Protection - The protection is set forth in the separate agreement dated as of the date hereof. 

  

 8 

 AMENDMENT TO EMPLOYMENT AGREEMENT 
 as of January 25, 2005 
 Donat Fournier, President 
 Beverly National Corporation 
 240 Cabot Street 
 Beverly, MA 01915 
 Dear Don: 
 Reference is made to your Employment Agreement dated July 9, 2002 between us (the “Agreement”). This letter confirms our understanding
that in consideration of valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the terms of Section 1 of the Agreement are hereby amended to provide as follows: 
 1. Term. The period of employment of the Employee under this Agreement shall be
deemed to commence as of August 1, 2002 and shall continue in effect through July 31, 2008. On July 31, 2008 and on each subsequent anniversary thereof, the term of this Agreement shall automatically extend for an additional year
unless, not later than the proceeding January 31st, either party notifies the other by written notice of his or
its intent not to extend the same. Notwithstanding the foregoing provisions of this Section 1, his employment shall terminate in any event upon the Employee’s attainment of age sixty-six (66) or, if earlier, the normal retirement age
provided in the Bank’s retirement plan, and the Employee may resign from, and terminate his employment by, the Company at any time upon ninety (90) days prior written notice to the Company. 
 All other provisions of the Agreement remain in full force and effect. 
 Please sign below to indicate your concurrence with the foregoing. 
  

							
		 		 	Sincerely,
			
		 		 	BEVERLY NATIONAL CORPORATION
				
	 	 		 	By:	 	/s/ Alice B. Griffin
			
	WITNESS:	 		 	AGREED:
			
	/s/ Paul J. Germano	 		 	/s/ Donat A. Fournier
		 		 	Donat A. Fournier

  

 9 

 AMENDMENT TO EMPLOYMENT AGREEMENT 
 as of August 16, 2005 
 Donat A. Fournier 
 President 
 240 Cabot Street 
 Beverly, MA 01915 
 Dear Don: 
 Reference is made to your Employment Agreement dated July 9, 2002, as amended January 25, 2005 (the “Agreement”). This letter
confirms our understanding that in consideration of valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the terms of Exhibit A of the Agreement are hereby amended to delete Item 12 and replace same with new
Item 12 which provides as stated below: 
 12. Restricted Stock Plan. The Employee shall be entitled to participate in the
Company’s Restricted Stock Plan. However, the Employee is not eligible to participate in the Director’s Non-Qualified Stock Option Plan. 
 All other provisions of the Agreement remain in full force and effect. 
 Please sign below to indicate your concurrence with the
foregoing. 
  

							
		 		 	Sincerely,
			
		 		 	BEVERLY NATIONAL CORPORATION
				
	 	 		 	By:	 	/s/ Paul J. Germano
			
	WITNESS:	 		 	AGREED:
			
	/s/ Elizabeth A. Thompson	 		 	/s/ Donat A. Fournier
		 		 	Donat A. Fournier

  

 10 

 AMENDMENT 
 TO 
 EMPLOYMENT AGREEMENT 
 Reference is made to the Employment Agreement dated as of July 9, 2002, as amended effective as of January 25, 2005, and further amended effective as of August 16, 2005 (the “Agreement”) by
and between Beverly National Corporation, a Massachusetts corporation having its principal place of business in Beverly, Massachusetts (therein and hereinafter referred to as the “Company,” and together with The Beverly National Bank, a
wholly owned subsidiary, therein and hereinafter referred to as the “Bank”) and Donat Fournier (therein and hereinafter referred to as the “Employee”). 
 WHEREAS, the Company and the Employee now desire to amend the Agreement, effective January 1, 2005, with respect to any provisions, features or
arrangements of the Agreement that provide for the deferral of compensation that would otherwise be subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), to conform each such provision, feature and
arrangement to the requirements of paragraphs (2), (3) and (4) of Code Section 409A; 
 NOW, THEREFORE, for valuable
consideration paid, the receipt and sufficiency of which are hereby acknowledged, the Company and the Employee hereby amend the Agreement, effective January 1, 2005, as follows: 
  

	 	1.	Section 8(d)(i) is amended by deleting the period at the end of the first and only sentence of such Section and by inserting in lieu thereof the following:

 “; provided that if the Employee is then a “specified employee” within the meaning of
Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”), and the payment is treated as being made on account of separation from service pursuant to Section 409A(a)(2)(A)(i) of the Code, the lump sum
amount shall be payable to the Executive pursuant to this Section 8(d)(i) beginning on the first day of the seventh month following on the date of such termination.” 
  

	 	2.	Section 8(d)(ii) is amended by deleting such Section in its entirety and by inserting in lieu thereof the following: 

 “The Company shall maintain or cause to be maintained in effect for the Employee for a period of twelve months following such termination, at the
Company’s sole expense, all medical and dental group insurance in which the Employee was participating at any time during the twelve (12) months preceding such termination, to the extent that such medical and dental insurance coverage
continuation constitutes an arrangement excluded from the application of Section 409A of the Code.” 
  

	 	3.	Section 11 is amended by adding the following new subsection (i): 

 “(i) Interpretation. It is the intent of the Company and the Employee that the provisions of this Agreement and all amounts payable to the Employee hereunder meet the requirements of Section 409A of the
Code, to the extent applicable to this Agreement and such payments, and the Agreement shall be interpreted and construed in a manner consistent with such intent. Recognizing such intent and the limited guidance currently available regarding the
application of Section 409A, the Company and the Employee agree to cooperate in good faith in preparing and executing, at such time as sufficient guidance is available under Section 409A and from time to time thereafter, one or more
amendments to this Agreement as may reasonably be necessary solely for the purpose of assuring that this Agreement and all amounts payable to the Employee hereunder meet the requirements of Section 409A; provided that no such amendments shall
increase the cost to the Company of providing the amounts payable to the Employee hereunder; and provided further that any such amendment that relates to amounts deferred in one or more taxable years beginning before January 1, 2005 shall be
rendered null and void to the extent the amendment constitutes a material modification of the Agreement within the meaning of Section 

  

 11 

 
885(d)(2)(B) of the American Jobs Creation Act of 2004 (the “Act”), unless (i) such modifications are pursuant to guidance issued by the U.S.
Treasury under Section 885(f) of the Act, or (ii) the parties expressly agree that the amounts deferred prior to 2005 may be treated as deferred after 2004 for purposes of Section 409A due to such amendment.” 
  

	 	4.	Section 13 of Exhibit A is amended by adding the following sentence after the fourth and final sentence of such Section: 

 “Effective January 1, 2005, awards under the Bank’s incentive plan, if applicable, shall be payable on May 1 of the first calendar
year after the calendar year to which the award relates.” 
 IN WITNESS WHEREOF,
the Employee and the Company have duly executed on this 9th day of January, 2007 and adopted this Amendment to the
Agreement, effective as of January 1, 2005. 
  

			
	BEVERLY NATIONAL CORPORATION
		
	By:	 	/s/ Michael O. Gilles
		 	A Duly Authorized Representative

  

	
	EMPLOYEE
	
	/s/ Donat Fournier
	Donat Fournier

  

 12

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