EXHIBIT 10.8

HUDSON VALLEY BANK

AMENDED AND RESTATED
DIRECTORS RETIREMENT PLAN

EFFECTIVE MAY 1, 2004

      This Amended and Restated Directors Retirement Plan (the “Plan”) is
adopted by HUDSON VALLEY BANK (“HVB”), formerly known as HUDSON VALLEY NATIONAL
BANK, and is for the benefit of the Directors of Hudson Valley Bank and all
subsidiaries and affiliates thereof, (hereinafter referred to as “Directors”).
It is in recognition of the long and distinguished service they have rendered to
these entities and with the hope of encouraging future outside directors to
similarly provide lengthy and distinguished service as well.

ARTICLE ONE

TYPE OF PLAN

      This Plan is intended to be an unfunded retirement plan for the benefit of
the outside Directors of the above named entities. This Plan replaces and
supersedes the Hudson Valley National Bank Directors Retirement Plan dated
November 24, 1987 and the Hudson Valley National Bank Amended and Restated
Directors Retirement Plan dated December 1, 1993.

ARTICLE TWO

EFFECTIVE DATE

      The effective date of the original plan was November 24, 1987 and the
effective date of the amended and restated plan was December 1, 1993
(collectively, the “Original Plans”). This restatement is effective as of May 1,
2004. The Original Plans are of no further force and effect.

ARTICLE THREE

ELIGIBILITY

      A. Eligibility is restricted to outside Directors (“Directors”). An
“outside director” shall mean a Director who is not a full-time employee of any
entity referred to in this plan.

      B. A Director, in order to be eligible, must accrue two (2) full years of
service as a Director. A “year of service” is determined on a July 1, fiscal
year.

      C. The Director must retire, resign, or otherwise relinquish his service
as Director to receive a retirement benefit under the Plan.

ARTICLE FOUR

VESTING

      A. Every Director who satisfies all of the requirements of Section 3
herein shall be eligible to receive either a pro rata or full retirement benefit
on his or her benefit commencement date.

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      B. Pro rata retirement benefits are based on the following vesting
schedules:

          No. of Years as Directors Amount Payable (As of July 1/st/) Retirement
Age

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2 years but less than 3 years
    5 %
3 years but less than 4 years
    10 %
4 years but less than 5 years
    17.50 %
5 years but less than 6 years
    25 %
6 years but less than 7 years
    32.50 %
7 years but less than 8 years
    40.00 %
8 years but less than 9 years
    47.50 %
9 years but less than 10 years
    55 %
10 years but less than 11 years
    62.50 %
11 years but less than 12 years
    70 %
12 years but less than 13 years
    77.50 %
13 years but less than 14 years
    85 %
14 years but less than 15 years
    92.50 %
15 or more years
    100 %

ARTICLE FIVE

FORFEITURE

      Section 4 of this plan notwithstanding, a Director who has become vested
under Section 4 shall forfeit all benefits hereunder if he or she has engaged in
any gross misconduct or criminal activity as a Director.

ARTICLE SIX

RETIREMENT BENEFITS

      Each Director shall receive an annual retirement benefit payable in
substantially equal monthly installments equal to the amount of the basic fees
that such Director received during the 12 month period immediately prior to the
benefit commencement date. The term basic fees, as used herein, shall mean fees
paid for attendance at all board meetings, fees paid for all committee meetings
or sub-committees of the entities of their ultimate parent corporation, the
Hudson Valley Holding Corp. (the “Holding Corp.”). It shall exclude all other
fees, including Directors stipends, special stipends for selected committee
chairman, all reimbursed expenses and all fees paid for acting as Vice Chairman
or Chairman of the Board of Hudson Valley Bank, the Holding Corp., and all other
entities as may be covered by this agreement from time to time.

ARTICLE SEVEN

BENEFIT COMMENCEMENT DATE

      A Director shall begin to receive benefits under the plan on the first day
of the month after he or she retires, resigns, or otherwise relinquishes his or
her place as a Director.

ARTICLE EIGHT

FORM OF BENEFIT

      Each Director shall receive a monthly benefit, payable as follows:
Directors receive credit towards pension benefits equal to six (6) months for
each year of service (subject to vesting and minimum age criteria) up to a
maximum of 120 months (10 years), payable to the Director during his life, and
on his or her

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death prior to receiving payments for such period, to the spouse of such
Director, if such Director is married, and to his or her estate, if such
Director is unmarried, for the remainder of such period.

ARTICLE NINE

DEATH PRIOR TO BENEFIT COMMENCEMENT DATE

      If such Director who is vested in his or her retirement benefit dies prior
to his or her benefit commencement date, he or she will be deemed to have
retired on the day before his or her death, and his or her spouse or estate will
receive benefits in accordance with Articles “Four” through “Eight” hereof.

ARTICLE TEN

ASSIGNMENT

      No retirement benefit under the plan shall be subject in any manner to
alienation, anticipation, encumbrance, sale, assignment, transfer, pledge,
charge or hypothecation, whether voluntary or involuntary, and any attempt to
alienate, anticipate, encumber, sell, assign, transfer, pledge, charge or
hypothecate shall be null and void and shall be disregarded by Hudson Valley
Bank, which shall continue to discharge its obligations hereunder as though no
such assignment had been made.

ARTICLE ELEVEN

FUNDING

      The plan is intended to be an unfunded arrangement. Nothing contained in
the plan and no action taken pursuant to the provision of this plan shall create
or be construed to create a trust of any kind, or a fiduciary relationship
between Hudson Valley Bank and any Director, his or her spouse, or his or her
estate.

ARTICLE TWELVE

RIGHTS OF DIRECTORS

      Any retirement benefits payable hereunder shall represent only an
unsecured contractual obligation on the part of Hudson Valley Bank to pay the
amounts described herein. No person, including the Director, his or her spouse,
or his or her estate, shall have, by virtue of the terms of this plan, any
interest in such amounts. The extent that any person acquires a right to secure
payments from Hudson Valley Bank under this plan, such right shall not be
greater than the right of any unsecured general creditor of Hudson Valley Bank.
If Hudson Valley Bank elects to satisfy its obligations hereunder through the
purchase of an annuity certificate, neither the Director, his or her spouse, nor
his or her estate, shall have any rights whatsoever in the annuity certificate.
Hudson Valley Bank shall be the sole owner and beneficiary thereof and may
exercise all incidents of ownership therein.

ARTICLE THIRTEEN

AMENDMENT

      Hudson Valley Bank, through its Board of Directors, reserves the right to
amend this plan, or to terminate the plan, at any time, except that all benefits
in pay status shall be continued.

ARTICLE FOURTEEN

ADMINISTRATION

      The Executive Committee, or the Board of Directors itself of HVB or, if
there is no such committee, the Board of Directors, shall administer the plan.
No members of such committee, while serving as a committee

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member, shall be eligible to receive any retirement benefit under the plan, but
such Director will accrue years of service. Decisions and determinations by the
committee shall be final and binding upon all parties. The committee shall have
the authority to interpret the plan, to adopt and revise rules and regulations
relating to the plan, and to make any other determinations which it believes
necessary or advisable for the administration of the plan.

ARTICLE FIFTEEN

MANDATORY RETIREMENT DATE

      Mandatory retirement age for Directors of the entities shall be
seventy-five (75) years of age. However, upon request, the Board may grant year
to year extensions until the Director reaches age eighty (80), at which time
they must retire on their eightieth (80th) birthday.

ARTICLE SIXTEEN

LEGAL INCAPACITY

      Whenever, in the committee’s opinion, a person entitled to receive any
retirement benefit hereunder is under a legal disability or is incapacitated in
any way as to be unable to manage the person’s financial affairs, the committee
may direct that payment be made to such person’s legal representative or
guardian or to a friend of relative of such person for such person’s benefit, or
the committee may direct that application of the payment for the benefit of such
person in any manner as the committee considers advisable. Any payment of a
retirement benefit in accordance with the provision of this Article 16 shall be
complete discharge of any liability for the making of such payment under the
provisions of the plan.

ARTICLE SEVENTEEN

GOVERNING LAW

      This plan shall be construed in accordance with the laws of the State of
New York, except to the extent (if any) pre-empted by federal law.

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      The foregoing constitutes the entire Agreement known the HUDSON VALLEY
BANK DIRECTORS RETIREMENT PLAN.

DIRECTORS OF HUDSON VALLEY BANK AS OF MAY 1, 2004

 

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  WILLIAM E. GRIFFIN, Chairman of the Board    

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  JAMES J. LANDY, President and CEO    

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  STEPHEN R. BROWN    

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  JAMES M. COOGAN    

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  GREGORY F. HOLCOMBE    

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  ANGELO R. MARTINELLI    

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  WILLIAM J. MULROW    

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  JOHN A. PRATT JR.    

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  CECILE D. SINGER    

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  CRAIG S. THOMPSON

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