Document:

Exhibit
10.40.2

 

ENTERPRISE
BANK AND TRUST COMPANY

SUPPLEMENTAL
LIFE INSURANCE AGREEMENT

 

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

 

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

 

Article 1

Definitions

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

Article 2

Policy
Ownership/Interests

 

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

 

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

 

2.2.1        Death
Prior to Separation from Service.  If
the Executive dies while employed by the Bank, the Executive’s Beneficiary/ies
shall be entitled to a benefit equal, in the aggregate, to Seven Hundred Ninety-One
Thousand Four Hundred Ninety-Six Dollars ($791,496).

 

2.2.2        Death
After Separation from Service.  If the
Executive dies after Separation from Service, the Executive’s Beneficiary/ies
shall be entitled to a benefit equal, in the aggregate, to Seven Hundred Ninety-One
Thousand Four Hundred Ninety-Six Dollars ($791,496).

 

2.3           Forfeiture
of Executive’s Interest.  The
Executive and any assignee of the Executive’s interests hereunder shall forfeit
all rights under Section 2.2 if the Executive fails to comply fully with the
terms of Sections 7.1 and 7.2 of that certain Amended and Restated Employment
Agreement by and among Enterprise Bancorp, Inc., the Bank and the Executive
dated as of January 1, 2004, as amended by Amendment No. 1 thereto dated as of
December 31, 2004 (the “Confidentiality and Non-compete Restrictions”).  The Bank’s enforcement rights as to the Confidentiality
and Non-compete Restrictions shall be governed by Sections 5.4.1 and 5.4.2 of
that certain Salary Continuation Agreement by and between the Bank and the
Executive of even date herewith.

 

Article 3

Comparable
Coverage

 

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

 

2

 

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

 

Article 4

Premiums
and Imputed Income

 

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

 

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

 

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

 

Article 5

Beneficiaries

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

Article 6

Assignment

 

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

 

Article 7

Insurer

 

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

 

Article 8

Claims
and Review Procedure

 

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

 

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

 

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

 

4

 

Bank expects to render
its decision.

 

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

 

(a)           The
specific reasons for the denial;

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

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

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

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

(a)           The
specific reasons for the denial;

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

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

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

 

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

 

Article 9

Amendments
and Termination

 

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

 

Article
10

Administration

 

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

 

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

 

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

 

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

 

6

 

reasonably require.

 

Article 11

Miscellaneous

 

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

 

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

 

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

 

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

 

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

 

Enterprise Bank and Trust
Company

222 Merrimack Street

Lowell, MA 01852-5901

Attention:              John
P. Clancy, Jr.

Executive
Vice President and

Chief
Operating Officer

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

	
  EXECUTIVE:

  	
  ENTERPRISE BANK AND TRUST
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Richard W. Main

  	
   

  	
  By:

  	
    /s/ John P.
  Clancy, Jr.

  	
   

  
	
  Richard W. Main

  	
   

  
	
   

  	
  Title:

  	
    Chief
  Operating Officer

  	
   

  
						

 

8

 

ENTERPRISE BANK AND TRUST
COMPANY

Supplemental Life
Insurance Agreement

 

BENEFICIARY DESIGNATION FORM

 

o            New Designation

o            Change in Designation

 

I,
Richard W. Main, designate the following as Beneficiary under the Enterprise
Bank Supplemental Executive Life Insurance Plan:

 

	
  Primary:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Contingent:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  

 

Notes:

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

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

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

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

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

 

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

 

	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Received
  by the Plan Administrator this       day of                                ,
  20      .

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
							

 

 

POLICY ENDORSEMENT

 

Contract Owner:   ENTERPRISE BANK AND TRUST COMPANY

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Signed at                                         ,
                     ,
this              
day of                              ,
20      .

 

 

OWNER:

 

ENTERPRISE BANK AND TRUST COMPANY

 

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  (Signature:
  Bank Officer #1)

  	
   

  	
   

  	
  (Signature:
  Bank Officer #2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Printed)

  	
   

  	
   

  	
  (Printed)

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

1

 

Schedule
Page

Policy(ies)
Subject to Policy Endorsement

 

	
  Policy Number

  	
  Insured

  
	
   

  	
  Richard W. Main

  
	
   

  	
   

  

 

2Exhibit
10.40.3

 

ENTERPRISE
BANK AND TRUST COMPANY

SUPPLEMENTAL
LIFE INSURANCE AGREEMENT

 

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

 

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

 

Article 1

Definitions

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

Article 2

Policy
Ownership/Interests

 

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

 

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

 

2.2.1        Death
Prior to Separation from Service.  If
the Executive dies while employed by the Bank, the Executive’s Beneficiary/ies
shall be entitled to a benefit equal, in the aggregate, to Two Hundred
Thirty-Nine Thousand Four Hundred Sixteen Dollars ($239,416).

 

2.2.2        Death
After Separation from Service.  If
the Executive dies after Separation from Service, the Executive’s
Beneficiary/ies shall be entitled to a benefit equal, in the aggregate, to Two
Hundred Thirty-Nine Thousand Four Hundred Sixteen Dollars ($239,416).

 

2.3           Forfeiture
of Executive’s Interest.  The
Executive and any assignee of the Executive’s interests hereunder shall forfeit
all rights under Section 2.2 if the Executive fails to comply fully with the
terms of Sections 8(a) and 8(b) of that certain Change in
Control/Noncompetition Agreement by and among Enterprise Bancorp, Inc., the
Bank and the Executive dated as of August 1, 2001, as amended by Amendment No.
1 thereto dated as of the date hereof (the “Confidentiality and Non-compete
Restrictions”).  The Bank’s enforcement
rights as to the Confidentiality and Non-compete Restrictions shall be governed
by Sections 5.4.1 and 5.4.2 of that certain Salary Continuation Agreement by
and between the Bank and the Executive of even date herewith.

 

Article 3

Comparable
Coverage

 

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

 

2

 

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

 

Article 4

Premiums
and Imputed Income

 

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

 

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

 

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

 

Article 5

Beneficiaries

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

Article 6

Assignment

 

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

 

Article 7

Insurer

 

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

 

Article 8

Claims
and Review Procedure

 

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

 

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

 

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

 

4

 

Bank expects to render
its decision.

 

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

 

(a)           The
specific reasons for the denial;

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

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

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

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

(a)           The
specific reasons for the denial;

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

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

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

 

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

 

Article 9

Amendments
and Termination

 

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

 

Article
10

Administration

 

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

 

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

 

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

 

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

 

6

 

reasonably require.

 

Article 11

Miscellaneous

 

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

 

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

 

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

 

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

 

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

 

Enterprise Bank and Trust
Company

222 Merrimack Street

Lowell, MA 01852-5901

Attention:              John
P. Clancy, Jr.

Executive
Vice President and

Chief
Operating Officer

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

	
  EXECUTIVE:

  	
  ENTERPRISE BANK AND TRUST
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Robert R. Gilman

  	
   

  	
  By:

  	
    /s/ John
  P. Clancy, Jr.

  	
   

  
	
  Robert R. Gilman

  	
   

  
	
   

  	
  Title:

  	
    Chief
  Operating Officer

  	
   

  
						

 

8

 

ENTERPRISE BANK AND TRUST
COMPANY

Supplemental Life
Insurance Agreement

 

BENEFICIARY DESIGNATION FORM

 

o            New Designation

o            Change in Designation

 

I,
Robert R. Gilman, designate the following as Beneficiary under the Enterprise
Bank Supplemental Executive Life Insurance Plan:

 

	
  Primary:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Contingent:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  %

  

 

Notes:

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

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

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

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

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

 

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

 

 

	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Received
  by the Plan Administrator this       day of                     ,
  20      .

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
							

 

 

POLICY ENDORSEMENT

 

Contract Owner:   ENTERPRISE BANK AND TRUST COMPANY

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Signed at                                         ,
                     ,
this              
day of                              ,
20      .

 

 

OWNER:

 

ENTERPRISE BANK AND TRUST COMPANY

 

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  (Signature:
  Bank Officer #1)

  	
   

  	
   

  	
  (Signature:
  Bank Officer #2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Printed)

  	
   

  	
   

  	
  (Printed)

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

1

 

Schedule
Page

Policy(ies)
Subject to Policy Endorsement

 

	
  Policy Number

  	
  Insured

  
	
   

  	
  Robert R. Gilman

  
	
   

  	
   

  

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]