Document:

Exhibit 10.25

    
      

    

    Exhibit
      10.25

    Change
      in
      control agreement with Ronald M. Bentley dated May 1, 2003.

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    May
      1,
      2003

    

    Mr.
      Ronald M. Bentley 

    30
      Springfield Drive 

    Voorheesville.
      NY 12186

    

    Dear
      Mr.
      Bentley:

    

    NBT
      Bancorp Inc. (which, together with its wholly-owned subsidiary, NBT Bank,
      National Association, is referred to as the "Company") considers the stability
      of its key management group to be essential to the best interests of the Company
      and its shareholders. The Company recognizes that, as is the case with many
      publicly-held corporations, the possibility of a change in control may arise
      and
      that the attendant uncertainty may result in the departure or distraction of
      key
      management personnel to the detriment of the Company and its
      shareholders.

    

    Accordingly,
      the Board of Directors of the Company (the "Board") has determined that
      appropriate steps should be taken to encourage members of the Company's key
      management group to continue as employees notwithstanding the possibility of
      a
      change in control of the Company.

    

    The
      Board
      also believes it important that, in the event of a proposal for transfer of
      control of the Company, you be able to assess the proposal and advise the Board
      without being influenced by the uncertainties of your own
      situation.

    

    In
      order
      to induce you to remain in the employ of the Company, this Agreement, which
      has
      been approved by the Board, sets forth the severance compensation which the
      Company agrees will be provided to you in the event your employment with the
      Company is terminated subsequent to a "change in control" of the Company under
      the circumstances described below.

    

    

    Agreement
      to Provide Services; Right to Terminate.

    

    

    (a)    Termination
      Prior to Certain Offers.
      Except
      as otherwise provided in paragraph (b) below, or in any written employment
      agreement between you and theCompany,
      the Company or you may terminate your employment at any time. If, and only
      if,
      such termination occurs after a "change in control of the Company" (as defined
      in section 6), the provisions of this Agreement regarding the payment of
      severance compensation and benefits shall apply.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (b)    Termination
      Subsequent to Certain Offers.
      In the
      event a tender offer or exchange offer is made by a "person" (as defined in
      section 6) for more than 30 percent of the combined voting power of the
      Company's outstanding securities ordinarily having the right to vote at
      elections of directors ("Voting Securities"), including shares of common
      stock, no par value, of the Company (the "Company Shares"), you agree that
      you
      will not
      leave the employ of the Company (other than as a result of Disability as such
      term is defined in section 6) and will render services to the Company in the
      capacity in which you then serve until such tender offer or exchange offer
      has
      been abandoned or terminated or a change in control of the Company has occurred
      as a result of such tender offer or exchange offer.
      If,
      during the period you are obligated to continue in the employ of the Company
      pursuant to this section l(b), the Company reduces your compensation, terminates
      your employment without Cause, or you provide written notice of your decision
      to
      terminate your employment for Good Reason, your obligations under this section
      1(b) shall thereupon terminate and you will be entitled to payments provided
      under
      Section
      3(b).

    

    2.    Term
      of Agreement.
      This
      Agreement shall commence on the date hereof and shall continue in effect until
      December 31, 2005; provided, however, that commencing
      December 31, 2003 and each December 31 thereafter, the remaining term
      of
      this
      Agreement shall automatically be extended for one additional year (to a total
      of
      three years) unless at least 90 days prior to such anniversary, the Company
      or
      you shall have given notice that this Agreement shall not be extended; and
      provided, however, that if a change in control of the Company shall occur while
      this Agreement is in effect, this Agreement shall automatically be extended
      for
      24 months from the date the change in control of the Company occurs. This
      Agreement shall terminate if you or the Company terminates your employment
      prior
      to a change in control of the Company but without prejudice to any remedy the
      Company may have for breach of your obligations, if any, under section l
      (b).

    

    3.    Severance
      Payment and Benefits If Termination Occurs Following Change in
      Control for Disability, Without Cause, With Good Reason or Without Good Reason
      within 12 Months of the Change.
      If, (1)
      within 24 months from the date of occurrence of any
      event
      constituting a change in control of the Company (it being recognized that
      more than
      one
      such event may occur in which case the 24-month period shall run from the
      date
      of
      occurrence of each such event), your employment with the Company is terminated
      (i) by the Company for Disability, (ii) by the Company without Cause, or (iii)
      by you with Good Reason (as defined in section 6), or (II) within 12 months
      from
      the date of occurrence of any event constituting a change in control of the
      Company (it being recognized
      that more than one such event may occur in which case the 12-month period shall
      run from the date of occurrence of each such event) you terminate your
      employment either with or without Good Reason, you shall be entitled to a
      severance payment and other benefits as follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a)    Disability.
      If your
      employment with the Company is terminated for Disability, your benefits shall
      thereafter be determined in accordance with the Company's long-term disability
      income insurance plan. If the Company's long-term disability income insurance
      plan is modified or terminated following a change in control, the Company shall
      substitute such a plan with benefits applicable to you substantially similar
      to
      those provided by such plan prior to its modification or termination. During
      any
      period that you fail to perform your duties hereunder as a result of incapacity
      due to physical or mental illness, you shall continue to receive your full
      base
      salary at the rate then in effect until your employment is terminated by the
      Company for Disability.

    

    (b)    Termination
      Without Cause or With Good Reason or Within 12 Months of Change in
      Control.
      If your
      employment with the Company is terminated without Cause by the Company or with
      Good Reason by you, or by you within 12 months of a change in control of the
      Company without Good Reason, then the Company shall pay to you, upon demand,
      the
      following amounts (net of applicable payroll taxes):

    

       
      (i)    
Your
      full
      base salary through the Date of Termination at the rate in effect on the date
      the change in control of the Company occurs plus year-to-date accrued
      vacation.

     

       
      (ii)    As
      severance pay, an amount equal to the product of 2.00 multiplied by the greater
      of (A) the sum of your annualized salary for the calendar year in which the
      change in control of the Company occurs, the maximum target bonus that could
      have been paid to you for such year if all applicable targets and objectives
      had
      been achieved, or if no formal bonus program is in effect, the largest bonus
      amount paid to you during any one of the three preceding calendar years, your
      income from the exercise of nonqualified options during such year, your
      compensation income from any disqualifying disposition during such year of
      stock
      acquired pursuant to the exercise of incentive stock options and other
      annualized amounts that constitute taxable income to you from the Company for
      such year, without reduction for salary reduction amounts excludible from income
      under Section 402(e)(3) or 125 of the Internal Revenue Code of 1986, as amended
      (the "Code"), or (B) your average "Compensation" (as defined below) for the
      three calendar years preceding the calendar year in which the change in control
      of the Company occurs. As used in this subsection 3(b)(ii) your "Compensation"
      shall mean your base salary, bonus, income from the exercise of nonqualified
      options, compensation income from any disqualifying disposition of stock
      acquired pursuant to the exercise of incentive stock options and any other
      amounts that constitute taxable income to you fromthe
      Company, without reduction for salary reduction amounts excludible from
      income
      under
      Section 402(e)(3) or 125 of the Code.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)    Related
      Benefits.
      Unless
      you die or your employment is terminated by the Company for Cause or Disability,
      or by you other than for Good Reason
      and not within 12 months after a change in control of the Company, the
      Company shall
      maintain in full force and effect, for your continued benefit and, if
      applicable, for
      the continued
      benefit of your spouse and family, for three years after the Date of
      Termination, or
      such
      longer period as may be provided by the terms of the appropriate plan, all
      noncash
      employee
      benefit plans, programs, or arrangements (including, without limitation, pension
      and retirement plans and arrangements, stock option plans, life insurance and
      health
      and accident plans and arrangements, medical insurance plans, disability plans,
      and
      vacation
      plans) in which you were entitled to participate immediately prior to the Date
      of Termination, as in effect at the Date of Termination, or, if more favorable
      to you and, if applicable, your spouse and family, as in effect generally at
      any
      time thereafter with respect to executive employees of the Company or any
      successor; provided that your continued participation is possible after
      Termination under the general terms and provisions of such plans, programs,
      and
      arrangements; provided, however, that if you become eligible to participate
      in a
      benefit plan, program, or arrangement of another employer
      which confers substantially similar benefits upon you, you shall cease to
      receive
      benefits
      under this subsection in respect of such plan, program, or arrangement. In
      the
      event that your participation in any such plan, program, or arrangement is
      not
      possible after Termination under the general terms and provisions of such plans,
      programs, and arrangements, the Company shall arrange to provide you with
      benefits substantially similar to those which you are entitled to receive under
      such plans, programs and arrangements or alternatively, pay an amount equal
      to
      the reasonable value of such substantially similar benefits. If, after
      termination of employment following a change in control
      of the Company, you elect or, if applicable, your spouse or family elects,
      COBRA
      continuation coverage, the Company will pay the applicable COBRA premium for
      the
      maximum period during which such coverage is available. If termination follows
      a
      change in control of the Company specified in Section 6(b)(111),
      then
      you
      and, if applicable, your spouse and family may elect in lieu of COBRA
      continuation coverage to have the acquiring entity obtain an individual or
      group
      health insurance coverage and the acquiring entity will pay premiums thereunder
      for the maximum period during which you and, if applicable, your spouse and
      family could have elected to receive COBRA continuation coverage.

    

    (d)    Establishment
      of Trust.
      Within
      five days following conclusion of a change in control of the Company, the
      Company shall establish a trust that conforms in all regards with the model
      trust published in Revenue Procedure 92-64 and deposit an amount sufficient
      to
      satisfy all liabilities of the Company under Section 3(b) of this
      Agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e)    Automatic
      Extension.
      Notwithstanding the prior provisions of this Section, if an individual is
      elected to the Board of Directors who has not been nominated by the Board of
      Directors as constituted prior to his election, then the term of this Agreement
      will automatically be extended until two years from the date on which such
      individual was elected if such extended termination date is later than the
      normal termination date of this Agreement, otherwise, the termination date
      of
      this Agreement will be as provided above. This extension will
      take
      effect only upon the first instance of an individual being elected to the Board
      of Directors without having been nominated by the original Board.

    

    (f)    Alternative
      to Lump Sum Payout.
      The
      amount described in this subsection will be paid to you in a single lump-sum
      unless, at least 30 days before the conclusion of a change in control of the
      Company, you elect in writing to receive the severance pay in 3 equal annual
      payments with the first payment to be made within 30 days of demand and the
      subsequent payments to be made by January 31st of each year subsequent to the
      year in which the first payment is made, provided that under no circumstances
      will two payments be made during a single tax year of the
      recipient.

    

    4.    Payment
      If Termination Occurs Following_ Change in Control, Because of Death
      For Cause, or Without Good Reason and not within 12 Months of the Change in
      Control.
      If your
      employment shall be terminated following any event constituting a change in
      control of the Company because of your death, or by the Company for Cause,
      or by
      you other than for Good Reason and not within 12 months after a change in
      control of the Company, the Company shall pay you your full base salary through
      the Date of Termination at the rate in effect on the date the change in control
      of the Company occurs plus year-to-date accrued vacation. The Company shall
      have
      no further obligations to you under this Agreement.

    

    5.    No
      Mitigation.
      You
      shall not be required to mitigate the amount of any payment provided for in
      this
      Agreement by seeking other employment or otherwise, nor, except as expressly
      set
      forth herein, shall the amount of any payment provided for in this Agreement
      be
      reduced by any compensation earned by you as the result of employment by another
      employer after the Date of Termination, or otherwise.

    

    6.    Definitions
      of Certain Terms.
      For the
      purpose of this Agreement, the terms defined in this section 6 shall have the
      meanings assigned to them herein.

    

    (a)    Cause.
      Termination of your employment by the Company for "Cause" shall mean termination
      because, and only because, you committed an act of fraud, embezzlement, or
      theft
      constituting a felony or an act intentionally against the interests of the
      Company which causes the Company material injury. Notwithstanding the foregoing,
      you shall not be deemed to have been terminated for Cause unless and until
      there
      shall have been delivered to you a copy of a resolution duly adopted by
      theaffirmative vote of not less than three-quarters of the entire membership
      of
      the Board at a meeting of the Board called and held for the purpose (after
      reasonable notice to you and an opportunity for you, together with your counsel,
      to be heard before the Board), finding that in the good faith opinion of the
      Board you were guilty of conduct constituting Cause as defined above and
      specifying the particulars thereof in detail.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)    Change
      in Control of the Company.
      A
      "change in control of the Company" shall mean:

    

    (i)    A
      change
      in control of a nature that would be required to be reported in response to
      Item
      6(e) of Schedule 14A of Regulation 14A as in effect on the date hereof pursuant
      to the Securities Exchange Act of 1934 (the "Exchange Act"); provided that,
      without limitation, such a change in control shall be deemed to have occurred
      at
      such time as any Person hereafter becomes the "Beneficial Owner" (as defined
      in
      Rule 13d-3 under the Exchange Act), directly or indirectly, of 30 percent or
      more of the combined voting power of the Company's Voting Securities;
      or

    

    (ii)   During
      any period of two consecutive years, individuals who at the beginning of such
      period constitute the Board cease for any reason to con-stitute at least a
      majority thereof unless the election, or the nomination for election by the
      Company's shareholders, of each new director was approved by a vote of at least
      two-thirds of the directors then still in office who were directors at the
      beginning of the period; or

     

    (iii)         
      There
      shall be consummated (x) any consolidation or merger of the Company in which
      the
      Company is not the continuing or surviving corporation or pursuant to which
      Voting Securities would be converted into cash, securities, or other property,
      other than a merger of the Company in which the holders of Voting Securities
      immediately prior to the merger have the same proportionate ownership of common
      stock of the surviving corporation immediately after the merger, or (y) any
      sale, lease, exchange, or other transfer (in one transaction or a series of
      related transac-tions) of all, or substantially all of the assets of the
      Company, provided that any such consolidation,, merger, sale, lease, exchange
      or
      other transfer consummated at the insistence of an appropriate banking
      regulatory agency shall not constitute a change in control of the Company;
      or

    

    (iv)   Approval
      by the shareholders of the Company of any plan or proposal for the liquidation
      or dissolution of the Company.

    

    (c)    Date
      of Termination.
      "Date of
      Termination" shall mean (1) if your employment is terminated by the Company
      for
      Disability, 30 days after Notice of Termination is given (provided that you
      shall not have returned to the performance of your duties on a full-time basis
      during such 30-day period), and (ii) if your employment is terminated for any
      other reason, the date on which a Notice of Termination is given;provided that
      if within 30 days after any Notice of Termination is given the party receiving
      such Notice of Termination notifies the other party that a dispute exists
      concerning the termination, the Date of Termination shall be the date on which
      the dispute is finally determined, either by mutual written agreement of the
      parties or by a final judgment, order, or decree of a court of competent
      jurisdiction (the time for appeal therefrom having expired and no appeal having
      been perfected). The term of this Agreement shall be extended until the Date
      of
      Termination.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)    Disability-
      Termination of your employment by the Company for "Disability" shall mean
      termination because of your absence from your duties with the Company on a
      full-time basis for 180 consecutive days as a result of your incapacity due
      to
      physical or mental illness and your failure to return to the performance of
      your
      duties on a full-time basis during the 30-day period after Notice of Termination
      is given.

    

    (e)    Good
      Reason.
      Termination by you of your employment for "Good Reason" shall mean termination
      based on any of the following:

    

    (i)    A
      change
      in your status or position(s) with the Company, which in your reasonable
      judgment, does not represent a promotion from your status or positions) as
      in
      effect immediately prior to the change in control of the Company, or a change
      in
      your duties or responsibilities which, in your reasonable judgment, is
      inconsis-tent with such status or position(s), or any removal of you from,
      or
      any failure to reappoint or reelect you to, such position(s), except in
      connection with the termination of your employment for Cause or Disability
      or as
      a result of your death or by you other than for Good Reason.

    

    (ii)    A
      reduction by the Company in your base salary as in effect immediately prior
      to
      the change in control of the Company.

    

    (iii)          
      The
      failure by the Company to continue in effect any Plan (as hereinafter defined)
      in which you are participating at the time of the change in control of the
      Company (or Plans providing you with at least substantially similar benefits)
      other than as a result of the normal expiration of any such Plan in accordance
      with its terms as in effect at the time of the change in control of the Company,
      or the taking of any action, or the failure to act, by the Company which would
      adversely affect your continued participation in any of such Plans on at least
      as favorable a basis to you as is the case on the date of the change in control
      of the Company or which would materially reduce your benefits in the future
      under any of such Plans or deprive you of any material benefit enjoyed by you
      at
      the time of the change in control of the Company.

    

    (iv)   The
      failure by the Company to provide and credit you with the number of paid
      vacation days to which you are then entitled in accordance with the Company's
      normal vacation policy as in effect immediately prior to the change in control
      of the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (v)    The
      Company's requiring you to be based anywhere other than where your office is
      located immediately prior to the change in control of the Company except for
      required travel on the Company's business to an extent substantially consistent
      with the business travel obligations which you undertook on behalf of the
      Company prior to the change in control of the Company.

    

    (vi)    The
      failure by the Company to obtain from any successor the assent to this Agreement
      contemplated by section 8 hereof.

    

    (vii)   Any
      purported
      termination by the Company of your employment which is not effected pursuant
      to
      a Notice of Termination satisfying the requirements of this Agreement; and
      for
      purposes of this Agreement, no such purported termination shall be
      effective.

    

    (viii)   Any
      refusal by the
      Company to continue to allow you to attend to matters or engage in activities
      not directly related to the business of the Company which, prior to the change
      in control of the Company, you were permitted by the Board to attend to or
      engage in.

    

    For
      purposes of this subsection, "Plan" shall mean any compensation plan such as
      an
      incentive or stock option plan or any employee benefit plan such as a thrift,
      pension, profit sharing, medical, disability, accident, life insurance plan,
      or
      a relocation plan or policy or any other plan, program, or policy of the Company
      intended to benefit employees.

     

    (f)    Notice
      of Termination.
      A
      "Notice of Termination" of your employment given by the Company shall mean
      a
      written notice given to you of the termination of your employment which shall
      indicate the specific termination provision in this Agreement relied upon,
      and
      shall set forth in reasonable detail the facts and circumstances claimed to
      provide a basis for termination of your employment under the provision so
      indicated.

    

    (g)    Person.
      The tern
      "Person" shall mean and include any individual, corporation, partnership, group,
      association, or other "person," as such term is used in section 14(d) of the
      Exchange Act, other than the Company or any employee benefit plan(s) sponsored
      by the Company.

    

    7.    Notice.
      For the
      purposes of this Agreement, notices and all other communications provided for
      in
      the Agreement shall be in writing and shall be deemed to have been duly given
      when delivered or mailed by United States certified or registered mail, return
      receipt requested, postage prepaid, addressed to the respective addresses set
      forth on the first page of this Agreement, provided that all notices to the
      Company shall be directed to the attention of the Chief Executive Officer of
      the
      Company with a copy to the Secretary of the Company, or to such other address
      as
      either party may have furnished to the other in writing in accordance herewith,
      except that notices of change of address shall be effective only upon
      receipt.

     

    8.    Successors;
      Binding Agreement.

    

    (a)    This
      Agreement shall inure to the benefit of, and be binding upon, any corporate
      or
      other successor or assignee of the Company which shall acquire, directly or
      indirectly, by merger, consolidation or purchase, or otherwise, all or
      substantially all of the business or assets of the Company. The Company shall
      require any such successor, by an agreement in form and substance satisfactory
      to you, expressly to assume and agree to perform this Agreement in the same
      manner and to the same extent as the Company would be required to perform if
      no
      such succession had taken place.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)    This
      Agreement shall inure to the benefit of and be enforceable by your personal
      or
      legal representatives, executors, administrators, successors, heirs,
      distributees, devisees and legatees. If you should die while any amount would
      still be payable to you hereunder if you had continued to live, all such
      amounts, unless otherwise provided herein, shall be paid in accordance with
      the
      terms of this Agreement to your devisee, legatee, or other designee or, if
      there
      is no such designee, to your estate.

    

    9.    Maximization
      of After-Tax Amounts.
      Notwithstanding any other provision of this Agreement, and notwithstanding
      any
      other agreement or formal or informal compensation plan or arrangement, if
      you
      are a "disqualified individual," as defined in Section 280G(c) of the Internal
      Revenue Code of 1986, as amended (the "Code"), your right to receive any payment
      or benefit under this Agreement shall be limited to the extent that: (i) such
      payment or benefit, taking into account any other "payment in the nature of
      compensation"
      (within the meaning of Section 28OG of the Code) to you or for your
      benefit
      ("Compensation"), would cause any payment or benefit under this Agreement to
      be
      considered a "parachute payment" within the meaning of Section 280G(b)(2) of
      the
      Code as then in effect (a "Parachute Payment") and (ii) as a result of receiving
      a Parachute Payment, the aggregate after-tax amount you would receive (under
      this Agreement and otherwise) would be less than the maximum after-tax amount
      that you could receive without causing any such payment or benefit to be
      considered a Parachute Payment. In the event that the receipt
      of any such payment or benefit under this Agreement, in conjunction with your
      other Compensation,
      would cause you to be considered to have received a Parachute Payment
      that
      would
      have the effect of decreasing the after-tax amount received by you as described
      in clause (ii) of the preceding sentence, then you shall have the right, in
      your
      sole discretion, to designate
      any payments or benefits under this Agreement,
      and
      any
      other Compensation, that shall
      be
      reduced or eliminated so as to avoid having the payment or benefit to you under
      this
      Agreement be deemed to be a Parachute Payment.

     

    10.    Miscellaneous.
      No
      provision of this Agreement may be modified, waived,
      or
      discharged unless such modification, waiver, or discharge is agreed to in a
      writing signed by you and the Chief Executive Officer or President of the
      Company. No waiver by either party hereto at any time of any breach by the
      other
      party hereto of, or of compliance with, any condition or provision of this
      Agreement to be performed by such other party shall be deemed a waiver of
      similar or dissimilar provisions or conditions at the same, or at any prior
      or
      subsequent, time. No agreements or representations, oral or otherwise, express
      or implied, with respect to the subject matter hereof have been made by either
      party which are not expressly set forth in this Agreement. The validity,
      interpretation, construction, and performance of this Agreement shall be
      governed by laws of the State of New York without giving effect to the
      principles of conflict of laws thereof.

     

    11.    Legal
      Fees and Expenses.
      The
      Company shall pay or reimburse any reasonable
      legal fees and expenses you may incur in connection with any legal action
      to
      enforce
      your rights under, or to defend the validity of, this Agreement. The Company
      will pay or reimburse such legal fees and expenses on a regular, periodic basis
      upon presentation
      by you of a statement or statements prepared by your counsel in
      accordance
      with its
      usual practices.

    

    12.    Validity.
      The
      invalidity or unenforceability of any provision of this Agreement
      shall not affect the validity or enforceability of any other provision of
      this
      Agreement, which shall remain in full force and effect.

    

    13.    Payments
      During Controversy.
      Notwithstanding the pendency of any dispute or controversy, the Company will
      continue to pay you your full compensation in effect when the notice giving
      rise
      to the dispute was given (including, but not limited to, base
      salary and installments of incentive compensation) and continue you as a
      participant
      in all
      compensation, benefit, and insurance plans in which you were participating
      when
      the notice giving rise to the dispute was given, until the dispute is finally
      resolved in accordance with section 7(c). Amounts paid under this section 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. You shall be entitled to seek specific performance
      of your
      right to be paid until the Date of Termination during the pendency of any
      dispute or
      controversy arising under or in connection with this Agreement.

    

    14.    Illegality.
      Anything
      in this Agreement to the contrary notwithstanding, this Agreement is not
      intended and shall not be construed to require any payment to you which
      would violate any federal or state statute or regulation, including without
      limitation the
      "golden parachute payment regulations" of the Federal Deposit Insurance
      Corporation
      codified
      to Part 359 of title 12, Code of Federal Regulations.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    If
      this
      letter correctly sets forth our agreement on the subject matter hereof, kindly
      sign and return to the Company the enclosed copy of this letter, which will
      then
      constitute our agreement on this subject.

    
      

      
        	 	
                Very
                  truly yours,

              	 
	 	 	 
	 	
                NBT
                  BANCORP INC.

              	 
	 	
                By:
                  /S/
                  Daryl R. Forsythe

              	 
	 	 	 
	 	
                Agreed
                  To:

              	 
	 	
                /S/
                  Ronald M. Bentley

              	 
	 	
                Ronald
                  M. BentleyExhibit 10.26

    
      

    

     

    Exhibit
      10.26

    Description
      of Arrangements for Directors Fees

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Description
      of Arrangement for Directors Fees

    

    Except
      as
      set forth below, the following sets forth the amount of fees payable to outside
      directors of NBT Bancorp for their services as Directors in fiscal year
      2006:

    

    
      	
              Event

            	
              Fee

            
	 	 
	
              Annual
                retainer

            	
              Cash
                - $5,000

              Restricted
                Stock - $10,000

            
	 	 
	
              Board
                meeting attended

            	
              $900
                per meeting

            
	 	 
	
              Telephonic
                board meeting

            	
              $900
                per meeting

            
	 	 
	
              Committee
                meeting attended

            	
              Chairman
                $900, Member $600

            
	 	 
	
              Telephonic
                committee meeting

            	
              Chairman
                $900, Member $600

            
	 	 
	
              Deferred
                common stock

            	
              400
                Shares

            
	 	 
	
              Common
                stock options 

            	
              1,000
                shares multiplied by the number of board meetings attended in the
                prior
                year and divided by the number of meetings held in the prior
                year.

            
	 	 
	
              Special
                meeting held with committee member representative at the request
                of
                management 

            	
              $900
                per meeting

            

    

    

    

    The
      Chairman of the Board’s annual stock retainer is $50,000 (in the form of
      unrestricted stock), his annual stock option award is 5,000 multiplied by the
      number of board meetings attended during the year and divided by the number
      of
      meetings held and he receives $1,000 for each board and committee meeting
      attended.

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