Exhibit 10(i) SOUTH BOSTON SAVINGS BANK 460 West Broadway South Boston, MA 02127-9109 Telephone (617) 268-2500 Fax (617) 269-5354 SEVERANCE AGREEMENT South Boston Savings Bank, effective as of the date hereunder, hereby enters into this severance agreement with Stephen P. McNulty, Vice President. The basic terms and conditions will be as follows: Period of Agreement: Two (2) years from the date hereunder or the effective date of a change of control of Boston Bancorp/South Boston Savings Bank - whichever is later. Severance Payment: Two years' compensation, an amount computed as the arithmetic average of the three (3) most recent calendar years' compensation paid by South Boston Savings Bank to Mr. McNulty time (2) two. Form of Payment: Lump sum immediately following a termination of employment of Mr. McNulty. Geographic Restrictions on Involuntary Relocation: In the event of a change of control of Boston Bancorp/South Boston Savings Bank, an involuntary relocation of Mr. McNulty beyond a 20 miles radius from 460 West Broadway, South Boston, Massachusetts shall result in the payment of severance compensation as described above. Restriction on Reduction in Compensation: In the event of a change of control of Boston Bancorp/South Boston Savings Bank, a reduction in the level of compensation paid to Mr. McNulty after such change of control, as compared with the level of compensation paid by South Boston Savings Bank to Mr. McNulty prior to such change of control, shall result in the payment of severance compensation as described above. Agreed to this 1st day of June, 1995: /s/ Stephen P. McNulty /s/ Peter H. Hersey - ------------------------- ------------------------------ Officer Peter H. Hersey Chairman of the Board & Acting President & Chief Executive Officer /s/ Robert E. Lee ------------------------------ Robert E. Lee Office of the Chairman, Director & Senior Vice President