Document:

exhibit101

Page 1 of 11 September 20, 2016  Mr. Eric Aboaf  Dear Eric:  I am pleased to offer you employment with State Street Bank and Trust Company (together with its parent, State Street Corporation, and its or their direct and indirect subsidiaries “State Street” or the “Company”). This letter and its Appendix A contain a summary of the initial terms of your employment (the “Terms Summary”).  I. General Terms. 1. Position Details.  On a mutually-agreeable date not later than January 2, 2017 (the actual date your employment starts is referred to below as the “Start Date”), you will commence employment as an Executive Vice President, Finance. Subsequently, not later than April 1, 2017, State Street will appoint you to the position of Chief Financial Officer of State Street. You will report to State Street’s Chief Executive Officer, currently Joseph L. Hooley, and will be located at State Street Financial Center in Boston, Massachusetts. You agree to perform the duties of your position and such other duties as may reasonably be assigned to you from time to time by the Chief Executive Officer. You also agree that, while employed by State Street, you will devote your full working time, business judgment, skill and knowledge exclusively to the advancement of the business interests of State Street. 2. Base Compensation. State Street will pay you a base salary at the initial gross rate of $700,000 annually (such salary as adjusted from time to time, is referred to as the “Base Salary”), currently payable on a bi-weekly pay cycle. The bi- weekly pay cycle generally results in payment every other Friday. State Street may adjust the Base Salary and pay cycle from time to time.  3. Incentive Compensation Plan Participation.  State Street’s approach to employee compensation is based on total compensation and pay-for-performance. Employees generally have the opportunity to earn some type of variable, discretionary incentive pay in addition to base compensation through State Street’s incentive compensation plans. Incentive compensation may be delivered in the form of immediate or deferred awards. Receipt of incentive compensation is subject to the terms and conditions of the applicable plan and deferred award documents approved by the Board of Directors of State Street Corporation or its delegate (the “Board”) or authorized officer as in effect from time to time. Although State Street intends to continue to use incentive compensation to reward performance indefinitely, it may amend, modify or terminate its plans and programs at any time; provided, however, that any such amendment, modification or termination shall not (without your prior written consent) materially  and adversely impact any incentive compensation award that had already been granted to you, unless State Street expressly reserves the right to do so at the time it makes the award. You will be eligible to be considered for discretionary incentive compensation awards under State Street’s annual incentive compensation plans (each such plan, an “IC Plan”). Awards under the IC Plans are made at the sole discretion of the Board or authorized officer and are based upon company performance, individual performance, risk factors and such other factors as determined by the Board or authorized officer. State Street may adjust the proportion of cash and deferred compensation in each award, the type, form and structure of deferred compensation, as well as the threshold for deferred compensation eligibility at any time. Because of your position, your incentive awards will be subject to applicable clawback and forfeiture conditions and restrictive covenants. 

 

  Page 2 of 11  State Street: Confidential Incentive compensation awards are typically made in the first quarter in respect of performance for the prior calendar year. You must be employed on the date an award is approved by the Board in order to receive it. For your 2017 incentive compensation, payable in the first quarter of 2018, you will be eligible for a long-term incentive award (such award, the “2017 LTI”). State Street will use a full-year gross target amount of $3,100,000 to determine the amount of your 2017 LTI. You will also be eligible for an annual incentive award for 2017 (such award, the “2017 AI”). State Street will use a full-year gross target amount of $1,700,000 to determine the amount of your 2017 AI. However, both the 2017 LTI and the 2017 AI are subject to the terms of the preceding paragraphs and of the IC Plan for 2017, including without limitation the discretion of the Board or authorized officer in determining the amount and terms of awards and the requirement that you be employed on the date of approval. The targets described above for your 2017 LTI and 2017 AI represent the approximate amount you can expect to be awarded with respect to the 2017 performance year. However, these are target amounts only and, like all awards under the IC Plan, the amount ultimately awarded to you may vary up or down at the sole discretion of the Board or authorized officer based upon company performance, individual performance, risk factors and such other factors as determined by the Board or its delegate in its discretion. These targets will be used in determining the amount of your 2017 LTI and 2017 AI awards only and will not be used to determine any awards you are considered for under the IC Plan or any other incentive plan for subsequent years. An award of incentive compensation in one year does not guarantee an award in any future year. The variable incentive compensation described above, together with your base salary, constitute the components of your total compensation package under State Street’s total compensation structure. 4. 2016 Bonus Replacement.  To compensate you for the expected loss of incentive compensation for 2016 from your now-current employer, State Street will provide you with a special, one-time bonus in the gross value of $2,550,000 (the “2016 Bonus Replacement”) less the gross amount of any 2016 incentive award or awards you receive from, and are permitted to retain by, your current employer following your resignation (the “Deductions from the 2016 Bonus Replacement”). You agree that you will promptly disclose to State Street any payments of a 2016 incentive award that you receive from your current employer and provide State Street with any substantiation that it may reasonably request as to the amount or nature of such payments. Any amounts treated as Deductions from the 2016 Bonus Replacement that your current employer subsequently seeks to clawback or otherwise recoup shall nonetheless be deemed to have been received and retained by you for purposes of the 2016 Bonus Replacement. The 2016 Bonus Replacement shall be payable during the first quarter of 2017, subject to your continued employment. To the extent the full bonus is paid, it shall be paid as follows:  $892,500 in the form of an immediate cash payment (to wit, no later than March 15, 2017).   $663,000 in the form of a deferred stock award (“DSA”), subject to necessary approvals of the award by the Board. The DSA will vest, subject to applicable taxes and withholdings, in equal annual installments over a four-year period, with the first installment (1/4 of the DSA) vesting in February 2018, and with the remaining installments vesting in equal annual installments in each of the three following Februarys; provided, however, that such payments are subject to your acceptance of the then-current applicable approved form of deferred stock award agreement. The DSA will be subject to all terms and conditions set forth in the applicable plan documents and deferred stock award agreement, including without limitation the forfeiture and clawback provisions, and the restrictive covenants, contained therein. The number of shares subject to this award will be determined by dividing the gross value of the award by the closing price of State Street common stock on the New York Stock Exchange on the date the award is approved by the Board.  $994,500 in the form of performance restricted stock units (“PRSUs”), subject to necessary approvals of the award by the Board.  The PRSUs will vest, subject to applicable taxes and withholdings, in a single tranche in February 2020 (a 3-year performance period), subject to your acceptance of the then-current applicable approved form of restricted stock unit award agreement with performance criteria and to 

 

Page 3 of 11 State Street: Confidential  achievement of the performance criteria specified therein. The PRSUs will be subject to all terms and conditions set forth in the applicable plan documents and restricted stock unit award agreement with performance criteria, including without limitation the forfeiture and clawback provisions, and the restrictive covenants, contained therein.  The number of PRSUs subject to this award will be determined by dividing the gross value of the award by the closing price of State Street common stock on the New York Stock Exchange on the date the award is approved by the Board. These amounts will be offset by the Deductions from the 2016 Bonus Replacement, as follows. First, the value of the immediate cash payment shall be reduced dollar for dollar. If the value of the immediate cash payment is fully offset, then the value of the DSA shall be offset by $0.40 and the value of the PRSU shall be offset by $0.60 for each remaining dollar of Deductions from the 2016 Bonus Replacement.   5. Sign-On Bonus. To compensate you for the unvested deferred compensation that you will lose by leaving your current employer to join State Street, you will also receive the following one-time sign-on awards as soon as reasonably practicable following your Start Date, but in no event later than March 15, 2017 subject to your continued employment on the award date:  A cash bonus in the gross amount of $1,200,000 (the “Sign-On Cash”), less all applicable taxes and deductions. You will earn the Sign-On Cash upon the completion of one year of employment with State Street. You agree that if you resign from employment with State Street for any reason within one year of the Start Date, you will repay the entire amount, through deduction from final pay consistent with applicable law or otherwise, within two (2) weeks of the termination date. If State Street terminates your employment involuntarily during the first year under circumstances that do not result in the forfeiture of any DSAs, DVAs or PRSUs, then you will be deemed to have earned the Sign-On Cash as of the termination date and will not be required to repay it.   A deferred stock award (the “Sign-On DSA”) with a gross value at the time of the award of $1,260,000, subject to the necessary approvals of the award by the Board. The Sign-On DSA will vest, subject to applicable taxes and withholdings, in two equal annual installments, with the first installment vesting in February 2018, and the second vesting in February 2019, subject to your acceptance of the then-current applicable approved form of deferred stock award agreement. The Sign-On DSA will be subject to all terms and conditions set forth in the applicable plan documents and deferred stock award agreement, including without limitation the forfeiture and clawback provisions, and the restrictive covenants, contained therein. The number of shares subject to this award will be determined by dividing the gross value of the award by the closing price of State Street common stock on the New York Stock Exchange on the date the award is approved by the Board.  An award of performance restricted stock units (the “Sign-On PRSUs”) with a gross value at the time of the award of $1,200,000, subject to the necessary approvals of the award by the Board. The Sign-On PRSUs will vest, subject to applicable taxes and withholdings, in a single tranche in February 2019 (a 2- year performance period), subject to your acceptance of the then-current applicable approved form of restricted stock unit award agreement with performance criteria and to achievement of the performance criteria specified therein. The Sign-On PRSU will be subject to all terms and conditions set forth in the applicable plan documents and restricted stock unit award agreement with performance criteria, including without limitation the forfeiture and clawback provisions, and the restrictive covenants, contained therein. The number of shares subject to this award will be determined by dividing the gross value of the award by the closing price of State Street common stock on the New York Stock Exchange on the date the award is approved by the Board. You agree that you will provide such reasonable substantiation as State Street may request confirming your loss of unvested deferred compensation. In the event that you do not lose all or part of your unvested deferred compensation as a result of leaving your current employer and becoming employed with State Street, you and State Street agree to renegotiate the Sign-On Bonus in good faith in order to assure that you are compensated only for the unvested deferred compensation that you actually forfeit upon resignation from your current employer. 

 

  Page 4 of 11  State Street: Confidential 6. Relocation Assistance.  You will be eligible to receive relocation assistance as set forth in, and subject to the conditions of the relocation assistance agreement which will be sent to you under separate cover. Relocation assistance is managed by State Street’s Global Mobility group. 7. Benefits Program Participation. You will be eligible to participate in all benefit programs that State Street makes available to its employees, subject to the eligibility requirements and other terms and conditions contained in the applicable plan and related documents. The current State Street Benefits Overview, which provides information regarding benefit plan options that may be available to you, is enclosed for your review. At the Executive Vice President level, State Street’s benefits program includes certain protections for a period of two years following a covered change of control under State Street’s change of control agreement program. Participation in this program requires the execution of the then-current applicable separate agreement. Visit Fidelity NetBenefits at www.netbenefits.com/statestreet for additional information about State Street’s benefits plan offerings. Although State Street intends to continue to offer valuable employee benefits for its employees indefinitely, it may amend, modify or terminate such programs at any time. 8. Vacation.  You will be eligible to earn and take vacation in accordance with State Street’s vacation policies as in effect from time to time.  Currently, State Street’s policies allow you to accrue vacation time at the rate of four (4) weeks of vacation per year (without carryover). Vacation currently accrues annually, on a calendar year basis, so you will begin earning vacation at this rate commencing on the Start Date.   For more information, please refer to the enclosed State Street Benefits Overview. II. Additional Terms and Conditions.  1. At-Will Employment.  Your employment at State Street is at-will. This means that either you or State Street may terminate your employment relationship at any time, for any reason, subject to the notice provision contained in the restrictive covenant agreement in Appendix A.  Nothing in this Terms Summary or any of the documents referenced in it obligates State Street to continue your employment for any particular period or level of compensation. Nor does it in any way restrict the right of State Street to terminate the employment relationship at any time, with or without notice or cause. Only the Chief Executive Officer of State Street, upon approval of the Board, may authorize any change to the at-will status of your employment.  2. Conditions to Employment.  This offer of employment is subject to your satisfaction of the following conditions:  Background Investigation. You have consented to a background investigation (including credit history, criminal background, education and employment verification). The results of such investigation are satisfactory to State Street. You agree to cooperate with State Street to complete a second background check, consisting solely of the criminal and credit check components of State Street’s normal background check program within 30 days before your actual Start Date. 

 

Page 5 of 11 State Street: Confidential   Restrictive Covenant Agreement. You must sign and return this Terms Summary, and abide by all its terms, including those terms contained in the restrictive covenant agreement in Appendix A.   Additional Employment-Related Agreements and Codes of Conduct. You will also be required to complete State Street’s on-line Standard of Conduct certification and learning assessment following the commencement of employment, as a condition of continued employment. By signing and returning this Terms Summary, you acknowledge and agree that you will comply with the Standard of Conduct (as it may be in effect from time to time) throughout your employment. A copy of this document is enclosed.   Eligibility for Employment. You must also document your eligibility to work in the United States by providing identification and/or employment eligibility documents which satisfy the requirements of U.S. law. You must begin this process by accessing State Street’s electronic verification system at www.newi9.com. The approved list of acceptable documents can be found at that website once you have completed the first section as outlined in the enclosed instructions. State Street will also use an electronic system established by the federal government (E-Verify) to verify your employment eligibility. Further information regarding State Street’s use of E-Verify is posted in the workplace.  Political Donations.  In addition, you have provided true and complete answers to a questionnaire regarding certain state and local political contributions made by you and/or your dependents in order to establish your eligibility for employment with State Street.  Your responses to this initial questionnaire were satisfactory to State Street. You agree to update State Street concerning political contributions by you and your dependents before and after your Start Date. You further agree that you and your dependents will not make any further political contributions without first consulting with State Street in order to avoid any potential disqualifications.  Representations. You represent and warrant that the information that you have provided to State Street concerning the terms and conditions governing your resignation from your current employer, and the effect of such resignation on your 2016 incentive compensation and previously awarded deferred compensation, is both accurate and complete. You acknowledge that State Street’s offer of employment and the compensation package described above are each conditioned on the accuracy and completeness of such information. III. Miscellaneous. By accepting this offer of employment, you represent and warrant that your accepting employment with and performing services for State Street will not breach or be in conflict with your obligations to any third party and that you are not now subject to any covenant against competition, covenant against solicitation, court order or other agreement or obligation that could affect your performance of duties and obligations to State Street. You further agree that you will not disclose to or use on behalf of State Street any confidential or proprietary information of any third party without that party’s consent. All payments, including without limitation the various bonuses and incentive awards described in this Terms Summary, made to you during your employment shall be reduced by any tax or other amounts legally required to be withheld by State Street and any lawful deductions authorized by you. The provisions of this Terms Summary are intended to be exempt from, or compliant with, Section 409A of the Internal Revenue Code, and shall be construed and interpreted consistently therewith.  Notwithstanding the foregoing, State Street shall not have any liability to you or to any other person if any portion of this Terms Summary is not so exempt or compliant.  This Terms Summary and the documents referenced in it set forth the entire agreement between you and State Street and replaces all prior and contemporaneous communications, summaries, agreements and understandings, written and oral, with respect to the terms and conditions, including without limitation relating to compensation, of your employment. 

 

  Page 6 of 11  State Street: Confidential IV. Acceptance and New Hire Process.  In order to make your onboarding process as smooth as possible, you will need to complete new hire tasks within the required timeframes. Failure to complete these steps within the time frames listed may impact your start date. Your related new hire paperwork is attached in the email you received containing this offer.    Offer Letter. Please sign and date one copy of this document and return it by emailing a scanned copy to the contact listed below.   I-9 Authorization Forms. Please follow the instructions provided with the email covering this offer for completing Section 1 of the online Form I-9. After completing Section 1, you will then need to visit one of State Street’s Global Security offices in-person at least 5 days prior to your Start Date in order to complete Section 2 and to present identification and documentation of your right to work in the United States. A list of Global Security offices where you can do this is also provided with the same email. Please note that proper unexpired documentation will be required to complete the Form I-9/Employment Authorization process. A full list of acceptable documents for identification and work authorization purposes will be provided to you when you complete section 1 of the online Form I-9. You will also be fingerprinted when you visit the Global Security office so that we can complete the criminal portion of the background check process. Formalities aside, I am delighted to extend this offer of employment to you on behalf of State Street and hope that you will choose to join our team.  STATE STREET BANK AND TRUST COMPANY   /s/ Alison Quirk Chief Human Resources and Citizenship Officer  By signing and dating below, I represent and agree that:  I have read, understand and agree to the terms and conditions of this Terms Summary as set forth above, including without limitation the Restrictive Covenant Agreement at Appendix A.  /s/ Eric Aboaf    September 22, 2016   ☒Accept Offer  ☐Reject Offer: Please provide a brief description for rejecting offer: _________________________________  

 

Page 7 of 11 State Street: Confidential  Appendix A Restrictive Covenant Agreement. 1. Confidentiality.  You acknowledge that in connection with your employment by State Street, you will learn of, and may create Confidential Information, as defined below. Subject to the section labeled “Certain Limitations”, below, you agree as follows:  All Confidential Information is and shall remain the property of State Street, its Affiliates and/or its or their licensors, suppliers or customers.  You will always preserve as confidential all Confidential Information, and will never use it for your own benefit or for the benefit of others; this includes that you will not use any knowledge of activities or positions in the accounts or cash accounts of State Street, its subsidiaries, or any of their respective clients for your own personal gain or for the gain of others.  You will not disclose, divulge, or communicate Confidential Information to any unauthorized person, business or corporation during or after the termination of your employment with State Street. You will use your best efforts and exercise due diligence to protect, to not disclose and to keep as confidential all Confidential Information.  You will not initiate or facilitate any unauthorized attempts to intercept data in transmission or attempt entry into data systems or files. You will not intentionally affect the integrity of any State Street data or systems through the introduction of unauthorized code or data, or through unauthorized deletion or addition. You will abide by all applicable Corporate Information Security procedures and policies designed to protect State Street’s data.  Upon request and at the termination of your employment, you agree to return to the Company, or if so directed by the Company, to destroy any and all copies of materials in your possession containing Confidential Information. These terms do not apply to any information which (i) is previously known to you without an obligation of confidence, (ii) is publicly disclosed (other than by a violation by you of the terms of this Appendix A) either prior to or subsequent to your receipt of such information, or (iii) is rightfully received by you from a third party without obligation of confidence and other than in relation to your employment with State Street.  Your obligations under this Section 1 shall survive the termination of your employment, without regard to the reason for such termination. 2. Assignment and Disclosure.  You hereby acknowledge that, by reason of being employed by State Street, to the extent permitted by law, all works, deliverables, products, methodologies and other work product conceived, created and/or reduced to practice by you, individually or jointly with others, during the period of your employment by State Street and relating to the business or demonstrably anticipated business, products, activities, research or development of State Street or any of its Affiliates or resulting from any work performed by you for State Street or any of its Affiliates, including any track record with which you may be associated as an investment manager or fund manager (“Work Product”) that consists of copyrightable subject matter is "work made for hire" as defined in the Copyright Act of 1976 (17 U.S.C. § 101), and such copyrights are therefore owned, upon creation, exclusively by State Street. To the extent the foregoing does not apply and to the extent permitted by law, you hereby assign and agree to assign, for no additional consideration, all of your rights, title and interest in any Work Product and any intellectual property rights therein to State Street and its Affiliates. You hereby waive in favor of State Street and its Affiliates any and all artist’s or moral rights (including without limitation, all rights of integrity and attribution) you may have pursuant to any state, federal or foreign laws, rules or regulations in respect of any Work Product and all similar rights thereto. You will not pursue any ownership or other interest in such Work Product, including any intellectual property rights.  You will promptly disclose, in writing, to State Street all Work Product, whether or not patentable or copyrightable. You agree to reasonably cooperate with State Street (a) to transfer to State Street the Work 

 

  Page 8 of 11  State Street: Confidential Product and any intellectual property rights therein, (b) to obtain or perfect such rights, (c) to execute all papers, at State Street’s expense, that State Street shall deem necessary to apply for and obtain domestic and foreign patents, copyright and other registrations, and (d) to protect and enforce State Street's interest in them.  These obligations shall continue beyond the period of your employment with respect to Work Product conceived or made by you during the period of your employment. You hereby represent and warrant that you do not possess any pre-existing rights in any inventions or works and will not use any pre-existing rights during your period of employment by State Street. However, in the event that you create any inventions or works that are not assigned to State Street pursuant to the promises above and you subsequently incorporate any such inventions or works into any work that you perform or create for State Street or any of its Affiliates during the period of your employment by State Street, you hereby irrevocably grant to State Street and its Affiliates a royalty-free, fully paid-up, perpetual, transferable, worldwide, non-exclusive license (with the right to sublicense) to make, have made, copy, modify, make derivative works of, use, offer to sell, sell, import and otherwise distribute such inventions or creative works as part of or in connection with your work product for State Street, and to practice any method related thereto. 3. Non-Disparagement.  Subject to the section labeled “Certain Limitations”, below, you agree that, whether during your employment or following the termination thereof, you shall not make any false, disparaging, or derogatory statements to any media outlet (including, but not limited to, Internet-based chat rooms, message boards, social media (such as Facebook), and/or web pages), industry groups, financial institutions, or to any current, former or prospective employees, consultants, clients, or customers of State Street, its Affiliates or any of their respective directors, officers, employees, agents or representatives, or about State Street’s or its Affiliates’ business affairs and/or financial condition. 4. Non-Solicitation.  You agree that during your employment and for a period of eighteen months from the date of termination of your employment you will not, without the prior written consent of State Street or the legal entity with whom you are employed:   Solicit, directly or indirectly (other than through a general solicitation of employment not specifically directed to employees of State Street or its Affiliates), the employment of, hire or employ, recruit, or in any way assist another in soliciting or recruiting the employment of, or otherwise induce the termination of the employment of, any person who then or within the preceding twelve (12) months was an Officer of State Street or any of its Affiliates (excluding any such officer whose employment was involuntarily terminated); or   Engage in the Solicitation of Business from any Client on behalf of any person or entity other than State Street or its Affiliates. For this purpose, the term “Officer” shall include any person holding a position title of Assistant Vice President or SSGA Principal 4 or higher.  Notwithstanding the foregoing, the post-employment period of restriction contained in this Section 4 shall be reduced by the duration of the Notice Period specified below provided during such Notice Period that you fully comply with your obligations under this Section 4 and (ii) under any other non-solicitation or non- competition provision contained in any other agreement between you and State Street or its Affiliates, including any such restrictions that are a condition precedent to the receipt of compensation or benefits under other awards, plans or arrangements of State Street and its Affiliates. 5. Non-Competition. During your employment and for the twelve months following its termination for any reason, you will not, directly or indirectly, whether as owner, partner, investor, consultant, agent, employee, co-venturer or otherwise, compete with State Street or any of its Affiliates in any geographic area in which it or they do 

 

Page 9 of 11 State Street: Confidential  business, or undertake any planning for any business competitive with the business of State Street or any of its Affiliates. Specifically, but without limiting the foregoing, you agree not to engage in any manner in any activity that is directly or indirectly competitive or potentially competitive with the business of State Street or any of its Affiliates as conducted or under consideration at any time during your employment and further agree not to work or provide services, in any capacity, whether as an employee, independent contractor or otherwise, whether with or without compensation, to any Person who is engaged in any business that is competitive with the business of State Street or any of its Affiliates for which you have provided services, as conducted or in planning during your employment. The foregoing, however, shall not prevent your passive ownership of two percent (2%) or less of the equity securities of any publicly traded company.  6. Notice Period Upon Resignation. In order to permit State Street to safeguard its business interests and goodwill in the event of your resignation from employment for any reason, you agree to give 180 days’ advance notice of your resignation (the “Notice Period”). During the Notice Period, you will cooperate with the State Street in, and provide any requested information to, assist with transitioning your duties, accomplishing business goals, and/or preserving client relationships.  In its sole discretion, during the Notice Period, State Street may place you on a partial or complete leave of absence and relieve you of some or all of your duties and responsibilities. In these circumstances, you shall continue to be an employee of State Street, shall continue to receive your regular salary and benefits (although you will not be eligible for any grants of incentive compensation awards or to accrue any vacation) and you will continue to comply with the applicable policies of State Street. You agree that should you fail to provide advance notice of your resignation as required here, State Street shall be entitled to seek injunctive relief restricting you from employment for a period equal to the period for which notice of resignation was required but not provided, in addition to any other remedies available under law.  If there are 60 days or fewer remaining in the Notice Period, in its sole discretion State Street may release you from your obligations under this Paragraph 6 and give immediate effect to your resignation; provided that such action shall not affect your other obligations under this Appendix A.  Notwithstanding the foregoing, this Paragraph 6 shall not apply in the event you terminate your employment for Good Reason on or prior to the first anniversary of a Change in Control (each as defined in the State Street Corporation 2006 Equity Incentive Plan, as amended or successor plan). 7. Definitions.  For the purpose of clarity, the following terms in this Appendix A are defined as follows:    “Affiliates” means any entity controlling, controlled by or under common control with State Street, including State Street Corporation and its direct and indirect subsidiaries and the direct and indirect subsidiaries of State Street.  “Client” means a present or former customer or client of State Street or any of its Affiliates with whom you have had, or with whom individuals supervised by you have had, substantive and recurring personal contact during your employment with State Street or any of its Affiliates. A former customer or client means any such customer or client for which State Street or any of its Affiliates stopped providing all services within twelve months prior to the date your employment with State Street ends.   “Confidential Information” means any and all information of State Street and its Affiliates that is not generally available to the public, and includes any information received by State Street or any of its Affiliates from any third party with the understanding, express or implied, that it would be kept confidential. By way of example, Confidential Information includes but is not limited to all trade secrets, trade knowledge, systems, software, code, data documentation, files, formulas, processes, programs, training aids, printed materials, methods, books, records, client files, policies and procedures, client and prospect lists, employee data and other information relating to the operations of State Street and to its customers, and information concerning any and all discoveries, inventions or improvements thereof made 

 

  Page 10 of 11  State Street: Confidential or conceived by you or others for State Street whether or not patented or copyrighted, as well as cash and securities account transactions and position records of clients, regardless of whether such information is formally designated as “confidential.”   “State Street” means State Street Bank and Trust Company.   “Solicitation of Business” means the attempt through direct or indirect contact by you or by any other person or entity with your assistance to induce a Client to:   a. transfer the Client’s business from State Street or any of its Affiliates to any other person or entity;  b. cease or curtail the Client’s business with State Street or any of its Affiliates; or  c. divert a business opportunity from State Street or any of its Affiliates to any other person or entity, which business or business opportunity concerns or relates to the business with which you were actively connected during your employment with State Street or any of its Affiliates.  8. Post-Employment Cooperation.  You agree that, following the termination of your employment with State Street and its Affiliates, you will reasonably cooperate with State Street with respect to any matters arising during or related to your employment, including but not limited to any litigation, governmental investigation, or regulatory or other proceeding which may have arisen during your employment. State Street shall reimburse you for any reasonable out-of-pocket and properly documented expenses you incur in connection with such cooperation. 9. Enforcement.  You acknowledge and agree that the provisions contained in this Appendix A are necessary to the protection of the Company’s business and good will, and are material and integral to the undertakings of the Company. You further agree that State Street and its Affiliates will be irreparably harmed in the event such provisions are not performed in accordance with their specific terms or are otherwise breached. Accordingly, if you fail to comply with such provisions, State Street or any of its Affiliates shall be entitled to injunctive or other equitable relief or remedy in addition to, and not in lieu of, any other relief or remedy at law to which it or they may be entitled hereunder, without the need to post bond. In addition, State Street or any of its Affiliates shall be entitled to recover its or their reasonable attorneys’ fees and costs incurred in connection with obtaining any relief as a result of your breach of any of your obligations under this Appendix A.  10. Certain Limitations.  Nothing in this Appendix A prohibits you from reporting possible violations of federal law or regulation to any governmental agency or regulatory authority or from making other disclosures that are protected under the whistleblower provisions of federal law or regulation. Moreover, nothing in this Appendix A requires you to notify the Company that you have made any such report or disclosure.  You shall not be held criminally or civilly liable under any Federal or State trade secret law if you disclose a State Street trade secret (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney, solely for the purposes of reporting or investigating a suspected violation of law; or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. However, in connection with any such activity, you acknowledge you must take reasonable precautions to ensure that any confidential information that is disclosed to such authority is not made generally available to the public, including by informing such authority of the confidentiality of the same. Despite the foregoing, you also acknowledge that you are not permitted to disclose to any third-party, including any governmental or regulatory authority, any information learned in the course of your employment that is protected from disclosure by any applicable privilege, including but not limited to the attorney-client privilege, attorney work product doctrine, the bank examiner’s privilege, and/or privileges applicable to information covered by the Bank Secrecy Act (31 U.S.C. §§ 5311-5330), including information that would reveal the existence or contemplated filing of a suspicious activity report. State Street does not waive any 

 

Page 11 of 11 State Street: Confidential  applicable privileges or the right to continue to protect its privileged attorney-client information, attorney work product, and other privileged information. 11. No Waiver.  No delay or waiver by State Street in exercising any rights under this Appendix A shall operate as a waiver of that right or of any other right. Any waiver or consent as to any of the provisions herein provided by State Street must be in writing, is effective only in that instance, and may not be construed as a broader waiver of rights or as a bar to enforcement of the provision(s) at issue on any other occasion.  12. Interpretation of Business Protections.  The representations and agreements made by you in this Appendix A shall be construed and interpreted in any judicial or other adjudicatory proceeding to permit their enforcement to the maximum extent permitted by law, and each of the provisions in this Appendix A is severable and independently enforceable without reference to the enforcement of any other provision. If any restriction set forth in this Appendix A is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made this 27th day of September, 2016, by and between BAR HARBOR
BANKSHARES, a Maine corporation with its headquarters located in Bar Harbor, Maine (the “Company”), BAR HARBOR BANK & TRUST, a wholly-owned subsidiary of the Company (the “Bank”) (together, the
“Employer”), and JOSEPHINE IANNELLI, residing at the address on file with the Employer (the “Executive”). 

W I T N E S S E T H: 
 WHEREAS,
the Employer desires to employ the Executive, and the Executive desires to accept such employment upon the terms and conditions set forth herein, including, without limitation, the restrictive covenants in Sections 10 and 11 herein. 

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged by the parties hereto, the parties agree as follows: 
  

	1.	DEFINITIONS. 

 1.1. “Cause” shall mean: (i) the Executive is
charged with or convicted of, or pleads guilty, no contest or nolo contendere to, or enters into a pre-trial diversion program in connection with, any crime or criminal offense involving dishonesty, breach of trust, money laundering, or the illegal
manufacture, sale or distribution of, or trafficking in, controlled substances; (ii) the Executive’s gross or willful misconduct, gross or willful negligence, or gross insubordination in connection with the performance of her duties,
functions or responsibilities for the Employer; (iii) the Executive engages in or commits an act of fraud, misappropriation, material dishonesty, theft, embezzlement, conversion, self-dealing, obtaining funds or property under false pretenses,
or other material malfeasance against or in connection with the business of the Company, the Bank, or any of their subsidiaries or affiliates; (iv) the Executive breaches any fiduciary duty she owes to the Employer; (v) the Executive
materially violates any federal, state or local securities or banking laws, rules or regulations, or any rules or regulations of any applicable regulatory or self-regulatory organization, and such violation, if curable under the circumstances (as
determined by the Employer, in its reasonable discretion), is not cured to the Employer’s reasonable satisfaction within thirty (30) days after the Executive’s receipt of written notice of such breach (the “Cause Cure
Period”); (vi) the Executive’s material breach of the Company’s drug and alcohol use, harassment and discrimination-free work environment, or workplace violence policies, or any other similarly material written policy or rule
of the Employer, and such breach, if curable under the circumstances (as determined by the Employer, in its reasonable discretion), is not cured to the Employer’s reasonable satisfaction within the Cause Cure Period; and/or (vii) the
Executive’s material breach of Section 10 or Section 11 of this Agreement and 

 
such breach, if curable under the circumstances (as determined by the Employer, in its reasonable discretion), is not cured to the Employer’s reasonable satisfaction within the Cause Cure
Period. For purposes of clauses (v), (vi) and (vii) of this paragraph, if the Executive cures the specified violation or breach during the Cause Cure Period, Cause shall be deemed not to have occurred, provided that the Executive may cure
a specific violation or breach for which she is entitled to notice only one (1) time and, if the same violation breach occurs again, the violation or breach shall constitute Cause. 

1.2. “Change in Control” shall mean the occurrence of any one of the following events: 

 

	 	1.2.1.	Any person, including a group (as such term is used in Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), becomes the beneficial owner (as determined pursuant
to Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company or the Bank representing more than fifty percent (50%) of the combined voting power of the Company’s or the Bank’s then outstanding
securities, other than as a result of an issuance of securities initiated by the Company or the Bank in the ordinary course of its business; or 

  

	 	1.2.2.	The Company or the Bank is party to a Business Combination (as hereinafter defined) unless, following consummation of the Business Combination, more than fifty percent (50%) of the outstanding voting securities of
the resulting entity are beneficially owned, directly or indirectly, by the holders of the Company’s or the Bank’s outstanding voting securities immediately prior to the Business Combination in substantially the same proportions as those
existing immediately prior to the Business Combination; or 

  

	 	1.2.3.	The stockholders of the Company or the Bank approve a plan of complete liquidation of the Company or the Bank or an agreement for the sale or disposition by the Company or the Bank of all or substantially all of the
Company’s or the Bank’s assets to another person or entity that is not a wholly-owned subsidiary of the Company or the Bank. 

For purposes of this Section 1.2, a Business Combination means any cash tender or exchange offer, merger or other business combination,
sale of stock, or sale of all or substantially all of the assets, or any combination of the foregoing transactions. 
 For purposes of this
Section 1.2, a Change in Control shall exclude any internal corporate change, reorganization, or other such event, and a purchase of securities or assets of the Company or the Bank by any employee benefit plan maintained by the Company or the
Bank, which occurred prior to or may occur following the Effective Date of this Agreement. 

  
 2 

 1.3. “Code” shall mean the Internal Revenue Code of 1986, as amended, together
with the rules and regulations promulgated thereunder. 
 1.4. “Confidential Information” shall mean any and all
information and compilations of information, in whatever form or medium (including any copies thereof), relating to any part of the business of the Company, the Bank, or any of their subsidiaries or affiliates, or the business of their customers,
provided to the Executive, or which the Executive obtained, compiled or had access to, or had obtained or compiled on her behalf, which information or compilations of information are not a matter of public record or generally known or available to
the public, including, without limitation, but subject to the foregoing, the following: 
  

	 	1.4.1.	Financial information regarding the Company, the Bank, or any of their subsidiaries or affiliates; 

  

	 	1.4.2.	Personnel data, including compensation arrangements relating to any employees of the Company, the Bank, or any of their subsidiaries or affiliates (excluding data regarding the Executive that is part of her personnel
file); 

  

	 	1.4.3.	Internal plans, practices, and procedures of the Company, the Bank, or any of their subsidiaries or affiliates; 

  

	 	1.4.4.	The names, personal identifying information, portfolio information, investment strategies, requirements, lending, deposit or other account information, or any similar information, of any customers, clients, or prospects
of the Company, the Bank, or any of their subsidiaries or affiliates; 

  

	 	1.4.5.	Business methods and marketing strategies of the Company, the Bank, or any of their subsidiaries or affiliates; 

  

	 	1.4.6.	Any other information expressly identified to Executive as confidential by the officers and directors of the Company, the Bank, or any of their subsidiaries or affiliates; and 

 

	 	1.4.7.	The terms and conditions of this Agreement and any documents or instruments executed in connection herewith that are not of public record. 

  
 3 

 1.5. “Disability” shall mean a condition: (a) which causes the Executive to
be unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which can be expected to last for a continuous period of not less than twelve
(12) months; or (b) which results in her receiving, by reason of any medically determinable physical or mental impairment which can be expected to result in death or which can be expected to last for a continuous period of not less than
twelve (12) months, income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Employer. Disability shall be deemed to exist only when the disability has been
certified to the Board of Directors of the Company by a licensed physician approved by the Board of Directors of the Company. 
 1.6.
“Effective Date” shall mean the close of business on October 27, 2016. 
 1.7. “Good Reason” shall
mean the occurrence of one or more of the following events without the consent of the Executive: 
  

	 	1.7.1.	A material diminution in the Executive’s Base Compensation; 

  

	 	1.7.2.	A material diminution or adverse change in the Executive’s authority, duties, or responsibilities; 

  

	 	1.7.3.	A material diminution or adverse change in the authority, duties, or responsibilities of the person to whom the Executive is required to report; 

 

	 	1.7.4.	A material diminution or adverse change in the budget over which the Executive retains authority; 

  

	 	1.7.5.	A material change in the geographic location at which the Executive must perform a substantial portion of her services, which for purposes of this Agreement means a location that is more than one hundred
(100) miles from Bar Harbor, Maine; 

  

	 	1.7.6.	Any other action or inaction that constitutes a material breach by the Employer of this Agreement or any other agreement under which the Executive provides services to the Employer or the Employer provides compensation
or benefits to Executive; or 

  

	 	1.7.7.	If the Employer delivers a Notice of Termination for Cause to the Executive pursuant to Section 7.1 and it is determined by an arbitrator pursuant to Section 13.4 that grounds for termination for Cause did not
in fact exist. 

  
 4 

 1.8. “Notice of Termination” shall mean the written communication provided to
the other party in the event of the Executive’s termination of employment (i) by the Employer for Cause or on account of the Executive’s Disability or (ii) by the Executive for Good Reason. A Notice of Termination must indicate
the specific provisions in this Agreement upon which the applicable party relies as the basis for the Executive’s termination of employment and must also set forth in reasonable detail the facts and circumstances claimed to provide the basis
for such termination of employment under the provisions so indicated. 
 1.9. “Restrictive Period” shall mean the period
commencing on the Effective Date and terminating on the one (1) year anniversary of the Executive’s termination of employment with the Company, the Bank, and all of their subsidiaries and affiliates, regardless of reason and whether or not
pursuant to this Agreement. 
  

	2.	EMPLOYMENT. 

 As of the Effective Date, the Employer hereby employs the Executive,
and the Executive hereby accepts employment by the Employer, as the Chief Financial Officer of the Company, the Bank, Bar Harbor Trust Services, and other subsidiaries and affiliates of the Company and/or the Bank (the “Company Group”), on
the terms and conditions specified herein. 
  

	3.	TERM OF EMPLOYMENT. 

 3.1. Term. The Executive’s employment shall be
for a term of two (2) years commencing on the Effective Date and ending on the second anniversary of the Effective Date (the “Term”), unless terminated sooner pursuant to this Agreement. The Employer agrees to notify the
Executive not less than one hundred and twenty (120) days prior to the second anniversary of the Effective Date if it does not intend to extend the Executive’s employment. 

3.2. Extension. In the absence of notice of intent not to extend this Agreement by the Employer, the Agreement shall be deemed
automatically extended for additional one (1) year terms commencing on the applicable anniversary of the Effective Date. After the initial extension of the Term, the Employer agrees to a like notice period and subsequent extensions of this
Agreement, unless and until the Employer and the Executive shall mutually agree to modify the terms of this Agreement. During any extension of this Agreement, as provided herein, all other provisions of this Agreement shall remain in effect. 

  
 5 

 3.3. Expiration. Upon expiration of this Agreement, pursuant to a notice of intention not
to extend in accordance with Section 3.1, the Executive’s employment with the Employer shall cease, and this Agreement shall terminate without further obligations to the Executive, except as provided under Section 8.1. 

 

	4.	RESPONSIBILITIES AND OTHER ACTIVITIES. 

 The Executive shall be employed as the
Chief Financial Officer of the Company Group as of the Effective Date. In such roles, the Executive shall undertake the overall management, responsibilities, and duties related to these positions as defined by the Board of Directors of the Company,
the Bank, or the member(s) of the Company Group, as applicable, and summarized in the job description attached hereto as Exhibit C. The Executive shall faithfully perform the duties of her positions as described herein; shall devote
substantially all of her business time and energies to the business and affairs of the Company Group; and shall use her best efforts, skills, and abilities to promote the Company Group’s interests. The Executive may not engage in any business
activities or render any services of a business, commercial, or professional nature (whether or not for compensation) that would adversely affect the Executive’s performance of her responsibilities and duties hereunder or conflict with the
business of the Company Group for the benefit of any person or entity, unless the Executive receives the prior written consent of the Employer. 
  

	5.	COMPENSATION. 

 5.1. Base Compensation. The Employer shall pay the
Executive an annual base salary of Three Hundred and Fifty Thousand Dollars ($350,000) (“Base Compensation”). The Base Compensation shall be paid in substantially equal installments in accordance with the Employer’s
compensation policies and procedures on the payroll dates established by the Employer for its senior executive officers. The Base Compensation shall be reviewed annually by the Compensation Committee of the Company’s Board of Directors and may
be adjusted in the Company’s sole discretion, provided that the Base Compensation may not be adjusted downwards during the initial Term. 
  

	 	5.2.	Other Compensation. 

  

	 	5.2.1.	The Executive shall be a participant in the Company’s Annual Incentive Plan, in the form attached hereto as Exhibit A as may be amended from time to time in the Company’s sole discretion, with her
participation in 2016 pro-rated as of her hire date. 

  
 6 

	 	5.2.2.	The Executive shall be a participant in the Company’s Long Term Incentive Plan, in the form attached hereto as Exhibit B, as may be amended from time to time in the Company’s sole discretion.

  

	 	5.2.3.	The Executive shall be eligible to participate in any performance compensation plans agreed upon by the parties during the Term of this Agreement in concert with the Employer’s evolving goals and objectives.

  

	6.	OTHER BENEFITS. 

 6.1. Benefits. The Executive shall be eligible to
participate in such medical, dental, disability, retirement, life insurance, and other employee benefits on the same basis as may be provided to other similarly-situated employees of the Employer. As to all other benefits to which the Executive may
be entitled in parity with all other employees, such benefits may be created, changed, or terminated from time to time in the Employer’s sole discretion. 

6.2. Vacation. The Executive shall be entitled to reasonable paid vacations and sick leave benefits consistent with the Employer’s
vacation and sick leave policies. 
 6.3. New Hire and Relocation. “The Employer will pay the Executive a signing bonus in the
total sum of $100,000, minus all applicable tax withholding and other deductions, to cover the entire Executive’s moving and relocation expenses. The signing bonus shall be paid out to the Executive on the Employer’s first or second
regular payroll date following the Executive’s execution and delivery to the Employer of this Agreement and the Effective Date. The Executive promises and agrees to, and shall, promptly reimburse the Employer for the full amount of the
signing bonus in the event the Executive voluntarily terminates or resigns her employment with the Employer without Good Reason during the initial Term of the Agreement. In addition, the Employer shall provide housing assistance to the
Executive in the form of the use of a condominium unit owned by the Company in Ellsworth, Maine, for a period of up to six (6) months, subject to renewal for up to six (6) additional months upon reasonable notice from the Executive to the
Employer (with the value of any such benefit imputed to the Executive according to applicable tax requirements). 
 6.4. Additional
Benefits. The Employer further agrees to provide the Executive with a monthly car allowance, initially set at $833.00 (pro-rated for any partial months), in accordance with the policies of the Employer for its similarly situated executive
employees (which amount and policies may be amended by the Employer from time to time), for all costs associated with the purchase or lease of a motor vehicle (including all lease, maintenance, insurance, gas and other charges or expenses). The
Employer shall also pay the cost of all dues associated with the Executive’s membership to an area golf, yacht, or tennis club as well as the cost of the 

  
 7 

 
reasonable travel expenses associated with the Executive’s spouse’s attendance at business conferences with the Executive, with the value of such benefits imputed to the Executive
according to applicable tax requirements. Between the Effective Date and the first day of the month next following thirty (30) days from the Effective Date, the Employer shall also reimburse the Executive for her share of costs for continuation
coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), if any. 
 6.5.
Reimbursements. The Employer shall reimburse the Executive for all ordinary and necessary business expenses described in Code Section 62(a)(2)(A) which are incurred by the Executive in the performance of her duties hereunder and which
are subject to reimbursement in accordance with the Employer’s expense reimbursement policy, as in effect from time to time; provided, however, that: (i) such expenses shall be reimbursed no later than the end of the calendar year
following the calendar year in which the expenses were incurred, with the expectation that such amounts shall be reimbursed by the end of the calendar month following the year in which the expenses were incurred; (ii) the amount of such
expenses eligible for reimbursement in one calendar year cannot affect the amount of such expenses eligible for reimbursement in another calendar year; and (iii) the right to reimbursement is not subject to liquidation or exchange for another
benefit. 
  

	7.	TERMINATION. 

 This Agreement may terminate prior to the expiration of the Term in
accordance with this Section 7. 
 7.1. By the Employer For Cause. The Employer may elect to terminate this Agreement and to
terminate the Executive’s employment at any time for Cause. Such termination shall be effective immediately upon Notice of Termination to the Executive. If the Employer terminates the Executive’s employment for Cause during the Term, this
Agreement shall terminate without further obligations to the Executive, except as provided under Section 8.2. 
 7.2. By the
Employer Without Cause. The Employer may elect to terminate this Agreement and to terminate the Executive’s employment at any time by giving the Executive thirty (30) days’ prior written notice of her termination of employment.
The Executive’s termination of employment shall occur on the date specified in such written notice. If the Employer terminates the Executive’s employment without Cause during the Term, this Agreement shall terminate without further
obligations to the Executive, except as provided under Sections 8.3 and 8.5. 
 7.3. By the Executive without Good Reason. The
Executive may elect to terminate this Agreement and to voluntarily resign her employment at any time for any reason by giving 

  
 8 

 
the Employer not less than thirty (30) days’ prior written notice of her termination of employment. The Executive’s termination of employment shall occur on the date specified in
such written notice, unless the Employer elects, in its sole discretion, to terminate the Executive’s employment as of a date prior thereto. If the Executive terminates this Agreement pursuant to this Section 7.3 during the Term, this
Agreement shall terminate without further obligations to the Executive, except as provided under Section 8.2. 
 7.4. By the
Executive for Good Reason. The Executive may elect to terminate this Agreement and her employment for Good Reason within the two (2)-year period following the initial existence of the condition or conditions constituting Good Reason. Before the
Executive may terminate this Agreement for Good Reason, the Executive must provide the Employer with a Notice of Termination describing the existence of the condition or conditions giving rise to Good Reason no later than ninety (90) days after
the date of the initial occurrence of such condition or conditions, and the Employer must have failed to remedy such condition or conditions within the thirty (30)-day period following such Notice of Termination. If the Executive terminates this
Agreement for Good Reason during the Term, this Agreement shall terminate without further obligations to the Executive, except as provided under Sections 8.3 and 8.5. 

7.5. Death. The Executive’s employment shall terminate on account of the Executive’s death. If the Executive’s
employment is terminated on account of the Executive’s death during the Term, this Agreement shall terminate without further obligations to the Executive’s estate or other legal representatives under this Agreement, except as provided
under Section 8.4. 
 7.6. Disability. The Employer may elect to terminate this Agreement and to terminate the Executive’s
employment on account of the Executive’s Disability. Such termination shall be effective immediately upon Notice of Termination to the Executive. If the Executive’s employment is terminated on account of the Executive’s Disability
during the Term, this Agreement shall terminate without further obligations to the Executive, except as provided under Section 8.4. 
  

	8.	PAYMENTS TO EXECUTIVE UPON TERMINATION. 

 8.1. Generally. Regardless of the
reason for any termination of this Agreement and subject to this Section 8, the Executive (or the Executive’s estate or other legal representatives if the Agreement terminates on account of the Executive’s death) shall be entitled to
receive (together, “Accrued Benefits”): 

  
 9 

	 	8.1.1.	Payment of the Executive’s earned but unpaid Base Compensation (including, without limitation, all items which constitute wages under applicable law) as of the effective date of the Executive’s termination of
employment, with such payment to be made in accordance with the Employer’s compensation policies and procedures but in no event later than the date required by applicable law; 

 

	 	8.1.2.	Payment of the Executive’s earned but unused vacation time as of the effective date of the Executive’s termination of employment, with such payment to be made in accordance with the Employer’s vacation
pay policy; and 

  

	 	8.1.3.	All rights and benefits (if any) to which the Executive is entitled due to her termination of employment as required, independent of this Agreement, by the terms of any employee benefit plans and programs of the Company
or of the Bank in existence as of the date of the Executive’s termination of employment, such as The Bar Harbor Bankshares and Subsidiaries Equity Incentive Plan of 2009, the 2016 Executive Annual Incentive Program, the Long-Term Executive
Incentive Plan or any other Company or Bank incentive plan, with such rights and benefits to be determined in accordance with the terms of such plans and programs. 

8.2. Termination by the Employer for Cause or by the Executive without Good Reason. If the Employer terminates the Executive’s
employment for Cause pursuant to Section 7.1 or the Executive terminates her employment without Good Reason pursuant to Section 7.3, the Executive shall be entitled to receive payment of her Accrued Benefits. 

8.3. Termination by the Employer without Cause or by the Executive for Good Reason. If the Employer terminates the Executive’s
employment without Cause pursuant to Section 7.2 or the Executive terminates her employment for Good Reason pursuant to Section 7.4, or if the Employer fails to renew this Agreement following the initial Term, the Executive shall be
entitled, subject to Section 8.7, to receive: 
  

	 	8.3.1.	Payment of her Accrued Benefits; 

  

	 	8.3.2.	 A lump sum payment equal to either (i) two (2) times the Executive’s Base Compensation as of the
effective date of the Executive’s termination of employment in the event the Employer terminates the Executive’s employment without Cause pursuant to Section 7.2 or the Executive terminates her employment for Good Reason pursuant to
Section 7.4, or 

  
 10 

	 	
(ii) two (2) times the Executive’s Base Compensation as of the effective date of the Executive’s termination of employment in the event the Employer fails to renew this Agreement
following the initial Term, with any such payment to be made as soon as reasonably practicable following the date as of which all requirements for payment have been satisfied (including, but not limited to, the execution and delivery of a Release,
as described and defined in Section 8.7, and the passage of any applicable revocation period); provided, however, that, if payable, payment shall be made no later than the end of the “applicable 2
 1⁄2 month period” (as that phrase is used for purposes of the short-term deferral exemption to Code Section 409A found in Treasury Regulation
Section 1.409A-1(b)(4); and 

  

	 	8.3.3.	A lump sum payment in an amount equal to the Employer’s share of monthly premium contributions for medical, health, dental, and vision insurance benefits for the Executive and her eligible dependents, if any, for a
period of eighteen (18) months, calculated based upon the Employer’s share of monthly premium contributions for such benefits as of the date of the Executive’s termination of employment. Any taxable cash payments under this
Section 8.3.3 are intended to be separation pay that is exempt from Code Section 409A by reason of the exemption for certain separation pay set forth in Treasury Regulation Section 1.409A-1(b)(9)(iii). 

If the Executive shall die prior to the receipt of all such payments under this Section 8.3, the remainder of such payments shall be paid
to her surviving spouse or, if she has no surviving spouse, to her estate. 
 Notwithstanding the above, any amounts payable by reason of
the Executive’s termination of employment under this Agreement that are subject to Code Section 409A that would, but for this paragraph, be payable during the six (6) month period following the Executive’s termination of
employment, shall not be paid during such six (6) month period, but shall be paid on the first day of the seventh (7th) month following the Executive’s termination of employment.

 8.4. Termination due to Death or Disability. In the event of termination of this Agreement on account of the Executive’s
death or on account of the Executive’s Disability pursuant to Section 7.6, the Executive or the Executive’s estate or other legal representatives shall be entitled to receive payment of the Executive’s Accrued Benefits. 

8.5. Termination in Connection with a Change in Control. Notwithstanding the other provisions of this Section 8, in the event that
(a) the Employer terminates the Executive’s employment without Cause (excluding termination on account of death or Disability), or the 

  
 11 

 
Executive terminates her employment for Good Reason; and (b) such termination of the Executive’s employment occurs in anticipation of or within the twelve (12)-month period after a
Change in Control, then the Employer shall pay, subject to Section 8.7, the Executive the severance benefits described in this Section 8.5 in lieu of the benefits described in Section 8.3. The Executive’s termination of
employment shall be deemed to be in anticipation of a Change in Control for purposes of this Section 8.5 if it occurs within the six (6)-month period prior to the occurrence of the Change in Control. 

In addition to any Accrued Benefits owed, the severance benefits described in this Section 8.5 shall include the following: 

 

	 	8.5.1.	A lump sum payment equal to two (2) times the Executive’s Base Compensation as of the effective date of the Executive’s termination of employment, with such payment to be made on the Employer’s first
or second regular payroll date following the date as of which all requirements for payment have been satisfied (including, but not limited to, the execution and delivery of a Release, as described and defined in Section 8.7, and the expiration
of any applicable revocation period); provided, however, that, if payable, payment shall be made no later than the end of the “applicable 2  1⁄2 month
period” (as that phrase is used for purposes of the short-term deferral exemption to Code Section 409A found in Treasury Regulation Section 1.409A-1(b)(4); and 

 

	 	8.5.2.	A lump sum payment in an amount equal to the Employer’s share of monthly premium contributions for medical, health, dental, and vision insurance benefits for the Executive and her eligible dependents, if any, for a
period of eighteen (18) months, calculated based upon the Employer’s share of monthly premium contributions for such benefits as of the date of the Executive’s termination of employment. Any taxable cash payments under this
Section 8.3.3 are intended to be separation pay that is exempt from Code Section 409A by reason of the exemption for certain separation pay set forth in Treasury Regulation Section 1.409A-1(b)(9)(iii). 

8.6. No Mitigation. The Executive shall not be required to mitigate the amount of any severance benefits described in this
Section 8 by seeking other employment, other than as provided in Sections 8.3.3 and 8.5.2 hereof. 
 8.7. Release. Payment and
provision of the benefits described in Sections 8.3.2, 8.3.3, 8.5.1, and 8.5.2 hereof (the “Severance Payments”) are subject to and expressly conditioned upon the Executive’s execution and delivery to the Employer of a
separation agreement and 

  
 12 

 
general release in favor of the Employer in form and substance satisfactory to the Employer (the “Release”), within thirty (30) days after the Executive’s termination
of employment, which (after the expiration of any and all revocation periods and rights, if any) has, and not until it has, become fully effective and irrevocable, satisfactory to the Employer in the reasonable exercise of its discretion, releasing
the Company, the Bank, their subsidiaries, their affiliates, and their directors, officers, employees, agents, insurers and certain others from any and all claims or potential claims arising from or related to the Executive’s employment with
the Employer or the termination of that employment. In no event shall any Severance Payments be due or payable unless and until such Release becomes effective and all statutory rights to rescind, revoke or terminate the same have expired
unexercised. Payment and provision of the Severance Payments are also subject to and expressly conditioned upon the Executive’s compliance with her obligations under Sections 10 and 11 of this Agreement. Anything in this Agreement to the
contrary notwithstanding, in the event the Executive is determined by a court or arbitrator to have breached any of the provisions of Sections 10 or 11 of this Agreement, then the Employer shall have no further obligation to pay or provide the
Severance Payments, and the Employer shall be entitled to obtain reimbursement from the Executive, and the Executive shall be obligated to reimburse the Company, for any Severance Payments previously paid to the Executive, in addition to any and all
other rights or remedies available to the Employer under this Agreement or applicable law. 
  

	9.	CODE SECTIONS 280G AND 4999. 

 Notwithstanding anything contained herein to the
contrary, in the event it shall be determined that any payment or distribution made at any time by the Company, the Bank, or any corporation which is a member of an “affiliated group” (as defined in Code Section 1504(a), without
regard to Code Section 1504(b)) of which the Company or the Bank is a member, to or for the benefit of the Executive (whether paid or payable, or distributed or distributable, pursuant to the terms of this Agreement or otherwise) (a
“Payment”) would constitute an “excess parachute payment” (as defined in Code Section 280G(b)(2)), such Payment shall be reduced to the extent necessary to ensure that no portion of such Payment will be non-deductible
to the Employer by Code Section 280G or will be subject to the excise tax imposed by Code Section 4999 (the “Reduced Payment”), and the Executive shall have no further rights or claims with respect to an amount in excess
of the Reduced Payment. If a Payment is reduced pursuant to this Section 9, the Employer shall reduce or eliminate the following portions of the Payment in successive order to reach the Reduced Payment: (i) first, the benefits portion of
the Payment, (ii) then, the cash portion of the Payment, and (iii) then, the equity portion of the Payment. Any determination required under this Section 9 (including, without limitation, the amount of the Reduced Payment and the
assumptions to be utilized in arriving at such determination) shall be made by the Employer and its tax advisors, whose determination shall be final, conclusive and binding upon the Executive. 

  
 13 

	10.	CONFIDENTIALITY. 

 10.1. The Executive recognizes and acknowledges that certain
assets of the Company, the Bank, and their affiliates or subsidiaries constitute Confidential Information. 
 10.2. The Executive shall not,
without the prior written consent of the Company, the Bank, or any of their subsidiaries or affiliates, use or disclose, or negligently permit any unauthorized person to use, disclose, or gain access to, any Confidential Information. 

10.3. Upon termination of employment, the Executive hereby agrees to deliver promptly to the Company, the Bank, or any of their subsidiaries
or affiliates all memoranda, notes, records, manuals, or other documents, including all copies of such materials, containing Confidential Information, whether made or compiled by the Executive or furnished to her from any source by virtue of the
Executive’s relationship with the Company, the Bank, or any of their subsidiaries or affiliates. 
 10.4. Regardless of the reason for
her cessation of employment, the Executive will furnish such information as may be in the Executive’s possession and will cooperate with the Company, the Bank, or any of their subsidiaries or affiliates as may reasonably be requested in
connection with any claims or legal actions in which the Company, the Bank, or any of their subsidiaries or affiliates are or may become a party. The Employer will reimburse the Executive for any reasonable out-of-pocket expenses the Executive
incurs in order to satisfy her obligations under this Section 10.4. 
  

	11.	NON-COMPETITION AND NON-SOLICITATION. 

 11.1. In consideration of the covenants of
the Employer contained herein, the Executive covenants and agrees with the Employer that, during the Restrictive Period and within a one hundred and fifty (150) “air” mile radius from Bar Harbor, Maine, the Executive shall not,
without specific written approval of the Employer, directly or indirectly, whether on behalf of or in conjunction with any entity or person, and whether for the Executive’s own benefit or account or for the benefit or account of any person or
entity other than the Company, the Bank or any of their subsidiaries or affiliates: 
  

	 	11.1.1.	Engage in any insurance, brokerage, trust, banking, or other financial services as an owner, employee, independent contractor, consultant, director, representative, agent, or in any other capacity; 

 

	 	11.1.2.	 Directly or indirectly request, advise or otherwise cause any past, present, or future client or customer of the
Company, the Bank, or any of their 

  
 14 

	 	
subsidiaries or affiliates to withdraw, curtail, or cancel his or her or its business with the Company, the Bank, or any of their subsidiaries or affiliates; 

 

	 	11.1.3.	Directly or indirectly cause, suggest, or induce others to call on any past, present, or future client or customer of the Company, the Bank, or any of their subsidiaries or affiliates, for the purpose of
(i) selling or providing to any such client or customer any products or services offered by (or that compete with the products or services offered by) the Company, the Bank, or any of their subsidiaries or affiliates, (ii) causing such
client or customer to withdraw, curtail, or cancel his or her or its business with the Company, the Bank, or any of their subsidiaries or affiliates, or (iii) enticing, diverting, or taking away any such client or customer from the Company, the
Bank, or any of their subsidiaries or affiliates; or 

  

	 	11.1.4.	Canvas, solicit, or accept any business on behalf of any other bank, insurance agency, trust, or other financial services business, other than the Company, the Bank, or any of their subsidiaries or affiliates, from any
past or present client or customer of the Company, the Bank, or any of their subsidiaries or affiliates. 

 11.2. During the
Restrictive Period, the Executive shall not, whether personally or in association with others, and whether on behalf of or in conjunction with any entity or person, directly or indirectly, by any means or device whatsoever, (a) solicit, aid in
the solicitation of, induce, encourage, persuade or recruit, or attempt to solicit, induce, encourage, persuade or recruit, any person who is an employee, consultant, agent, or independent contractor of the Company, the Bank, or any of their
subsidiaries or affiliates, to terminate or alter such employment, retention or engagement or to apply for or accept employment or retention with any other person or entity, (b) hire or employ or attempt to hire or employ, or solicit for
employment or any other engagement, or cause any other person, firm, corporation or other entity to hire or employ or attempt to hire or employ or solicit for employment or any other engagement, any person who is an employee, consultant, agent, or
independent contractor of the Company, the Bank, or any of their subsidiaries or affiliates, or (c) solicit, encourage or induce any person or entity known by her to have a contractual relationship with the Company, the Bank, or any of their
subsidiaries or affiliates to discontinue, terminate, cancel or refrain from entering into or expanding such contractual relationship. 

11.3. Other Agreements. The Executive represents and warrants that neither the Executive’s employment with the Employer nor the
Executive’s performance of her obligations hereunder will conflict with or violate the Executive’s obligations under the terms of any 

  
 15 

 
agreement with a previous employer or other party, including agreements to refrain from competing, directly or indirectly, with the business of such previous employer or other party. Prior to the
Effective Date hereof, the Executive has provided to the Employer copies of all restrictive covenants (e.g., non-solicitation and non-competition agreements) to which she is a party in order to ensure her compliance with this Section 11.3. 

 

	12.	REFORMATION AND INJUNCTIVE RELIEF. 

 12.1. Reformation. All the parties
hereto acknowledge that the parties have carefully considered the nature and scope of this Agreement. The activities, period, and area covered by Sections 10 and 11 are expressly acknowledged and agreed to be fair, reasonable, and necessary. To the
extent that any covenant contained in Sections 10 and 11 is held to be invalid, illegal, or unenforceable because of the extent of activities, duration of such covenant, the geographic area covered thereby, or otherwise, the parties agree that the
court making such determination shall reform such covenant to include as much of its nature and scope as will render it enforceable and, in its reduced form, said covenant shall be valid, legal, and enforceable to the fullest extent of the law. 

12.2. Injunctive Relief. The Executive acknowledges and agrees that, upon any breach by the Executive of her obligations under Sections
10 and 11 hereof, the Employer will have no adequate remedy at law, and accordingly will be entitled to specific performance and other appropriate injunctive and equitable relief, notwithstanding Section 13 hereof. Nothing herein shall be
construed as prohibiting the Employer from pursuing any other remedies available to it, including the recovery of damages from the Executive. 
  

	13.	MEDIATION AND ARBITRATION. 

 13.1. Generally. If the Executive and the
Employer have any dispute whatsoever relating to the interpretation, validity, or performance of this Agreement, or any other dispute arising out of this Agreement, every reasonable attempt will be made to resolve any differences or dispute within
thirty (30) days of an issuance of written notice by either party to the other party. If a successful resolution of any differences or dispute has not been achieved to the satisfaction of both parties at the end of the thirty (30)-day period,
the steps outlined in the following Sections 13.2, 13.3, and 13.4 shall apply. 
 13.2. ADR. Except as otherwise expressly provided
hereunder, the parties agree that any and all disputes arising out of the Executive’s employment, or cessation of employment, including but not limited to any dispute, controversy, or claim arising under any federal, state, or local statute,
law, ordinance, or regulation or under this Agreement, shall be resolved exclusively by Alternative Dispute Resolution described in this Agreement (“ADR”). The initiation of ADR 

  
 16 

 
shall first require mediation, and the parties agree to first try to settle any dispute through mediation. Mediation shall be initiated by either party by the serving of a written notice of
intent to mediate (a “Mediation Notice”) by one party upon the other. If no resolution has been mutually agreed through mediation within ninety (90) days of service of a Mediation Notice, then and only then may the dispute be
submitted to arbitration. Arbitration shall be initiated by the serving of a written notice of intent to arbitrate (an “Arbitration Notice”) by one party upon the other. 

13.3. Mediation. In the event that a party wishes to initiate ADR with respect to a claim, a Mediation Notice must be served on the
other party within six (6) months from the date on which the claim arose. If the parties cannot mutually agree on a mediator, then a mediator shall be selected in accordance with the Employment Mediation Rules of the American Arbitration
Association. 
 13.4. Arbitration. In the event that mediation is unsuccessful and arbitration is initiated, it shall be conducted
under the National Rules for the Resolution of Employment Disputes of the American Arbitration Association, as modified by this Agreement. There shall be a single arbitrator to be agreed upon by the parties; provided that, if the parties are unable
to agree upon a single arbitrator, the Executive and the Employer shall each name an arbitrator, and the two (2) arbitrators so named shall name a third (3rd) arbitrator. The arbitration
proceedings shall be heard by the arbitrator(s), and the decision of the arbitrator, or of a majority of the panel if one has been selected, shall be final and binding on the parties. The arbitration award shall be accompanied by a written statement
containing a summary of the issues in controversy, a description of the award, and an explanation of the reasons for the award. Judgment upon the arbitration award may be entered in any court of competent jurisdiction. An Arbitration Notice must be
served on the other party within one (1) year from the date on which the claim arose, and failure to bring such a claim within such one (1)-year period shall constitute a waiver of such claim and an absolute bar to any further proceedings in
any forum with respect to it. All mediation and arbitration proceedings shall be conducted in Bangor, Maine, unless the parties otherwise agree in writing. All arbitration proceedings shall be confidential 

13.5. Costs. The cost of any mediation proceeding under this Section 13 will be paid entirely by the Employer. The cost of any
arbitration proceeding shall be shared equally by the parties to the dispute; provided, however, that if the dispute is resolved in favor of the Executive, such cost shall be paid in full by the Employer. Each party shall be responsible for its own
cost of representation and counsel. 

  
 17 

	14.	NOTICES. 

 All notices, requests, demands, waivers, and other
communications required or permitted to be given under this Agreement will be in writing and will be deemed to have been duly given: (a) if delivered personally or sent by facsimile or electronic mail, on the date received; (b) if delivered by
overnight courier, on the day after mailing; and (c) if mailed, five days after mailing with postage prepaid. Any such notice will be sent as follows: 
  

			
	To the Employer:	  	 Bar Harbor Bankshares
 ATTN: Human Resources
Department
 82 Main Street
 P.O. Box 400

Bar Harbor, ME 04609
 Fax: (207) 288-2811

Email: msawyer@bhbt.com
  

With copies to:
  

Richard Schaberg, Esq.
 Hogan Lovells US LLP

555 Thirteenth Street NW
 Washington, DC 20004

Fax: (202) 637-5671
 Email:
richard.schaberg@hoganlovells.com
  
 Jonathan Shapiro, Esq.

Littler Mendelson, P.C.
 One Monument Square

Suite 600
 Portland, Maine 04101

Exhibit Ax: (207) 775-6407
 Email:
jonshapiro@littler.com

		
	To the Executive:	  	At the address on file with the Employer

  

	15.	SUCCESSORS AND ASSIGNS. 

 15.1. The rights and obligations of the Executive
hereunder are not assignable or delegable, and any such assignment or delegation will be null and void, provided, however, that in the event of her death any and all amounts due the Executive hereunder shall be paid to her surviving spouse, or if
she has no surviving spouse, to her estate, including without limitation any amounts due the Executive under Section 8 hereof. 
 15.2.
This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors, beneficiaries, heirs, and personal representatives. 

15.3. The Employer shall require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the business and/or 

  
 18 

 
assets of the Employer to expressly assume and agree to perform its obligations under this Agreement in the same manner and to the same extent that the Employer would be required to perform them
if no such succession had taken place. Each such successor shall execute a written agreement evidencing its assumption of the Employer’s obligations under this Agreement prior to the effective date of any such purchase, merger, consolidation,
or other transaction. 
 15.4. The failure of the Employer to obtain from each successor the written agreement described in
Section 15.3 shall be deemed to be a material breach of the obligations of the Employer under this Agreement, and shall entitle the Executive to incur a separation from service for Good Reason pursuant to Section 7.4. 

15.5. As used in this Section 15, the Employer shall include the Company, the Bank, and any successor to all or substantially all of the
business and/or assets of any of them (whether direct or indirect, by purchase, merger, consolidation, or otherwise) which executes and delivers the written agreement described in Section 15.3 or which otherwise becomes bound by all the terms
and provisions of this Agreement. 
  

	16.	SURVIVAL. 

 Notwithstanding anything contained herein to the contrary, the
provisions of this Agreement which by their terms are to be performed subsequent to termination, including, without limitation, Sections 8, 10, 11, 12, and 13 and this Section 16, shall survive the termination of this Agreement and shall remain
fully enforceable. 
  

	17.	NON-DUPLICATION. 

 In the event that the Executive shall perform services for the
Company, the Bank, and/or any of their direct or indirect subsidiaries, any compensation or benefits provided to the Executive by such employer or pursuant to such employer’s employee benefit plans shall be applied to offset the obligations of
the Employer hereunder, it being intended that the provisions of this Agreement shall set forth the aggregate compensation and benefits payable to the Executive for all services rendered to the Company, the Bank, and any of their direct or indirect
subsidiaries. 
  

	18.	CODE SECTION 409A. 

 18.1. The Executive and the Employer acknowledge that each of
the payments and benefits promised to the Executive under this Agreement must either comply with the requirements of Code Section 409A and the regulations thereunder or qualify for an exception from compliance. To that end, the Executive
and the Employer agree that: 

  
 19 

	 	18.1.1.	The Executive will be deemed to have a date of termination of employment for purposes of determining the timing of any payments or benefits hereunder that are classified as deferred compensation only upon a
“separation from service” within the meaning of Code Section 409A; 

  

	 	18.1.2.	The expense reimbursements described in Section 6.5 are intended to satisfy the requirements for a “reimbursement plan” described in Treasury Regulation Section 1.409A-3(i)(1)(iv)(A) and shall be
administered to satisfy such requirements; 

  

	 	18.1.3.	The payments described in Sections 8.1.1 and 8.1.2 are intended to be excepted from compliance with Code Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(3) as payment made pursuant to the
Employer’s customary payment timing arrangement; 

  

	 	18.1.4.	The benefits and payments described in Section 8.1.3 are expected to comply with or be excepted from compliance with Code Section 409A on their own terms; and 

 

	 	18.1.5.	The welfare benefits provided in kind under Section 8.5.2 are intended to be excepted from compliance with Code Section 409A as welfare benefits pursuant to Treasury Regulation Section 1.409A-1(a)(5)
and/or as benefits not includible in gross income. 

 18.2. With respect to payments under this Agreement, for purposes of
Code Section 409A, each severance payment (if there is more than one payment) will be considered one of a series of separate payments. The Executive and the Employer further agree that, to the extent not otherwise exempt, the termination
benefits described in this agreement are intended to be exempt from Code Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(4) as short-term deferrals or as payments pursuant to a separation pay plan pursuant to Treasury
Regulation Section 1.409A-1(b)(9)(iii). In the case of a payment that is not excepted from compliance with Code Section 409A and that is not otherwise designated to be paid immediately upon a permissible payment event within the meaning of
Treasury Regulation Section 1.409A-3(a), the payment shall not be made prior to, and shall, if necessary, be deferred to and paid on the later of the date sixty (60) days after the Executive’s earliest separation from service (within
the meaning of Treasury Regulation Section 1.409A-1(h)) and, if the Executive is a specified employee (within the meaning of Treasury Regulation Section 1.409A-1(i)) on the date of her separation from service, the first day of the seventh
month following the Executive’s separation from service. Furthermore, this Agreement shall be construed and administered in such manner as shall be necessary to effect compliance with Code Section 409A. 

  
 20 

	19.	COMPLIANCE WITH FDI ACT. 

 Notwithstanding anything contained herein to the
contrary, any payments to the Executive by the Employer, whether pursuant to this Agreement or otherwise, are subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. §1828(k), and
any regulations promulgated thereunder. 
  

	20.	GENERAL PROVISIONS. 

 20.1. Entire Agreement. This Agreement and the
attachments hereto constitute the entire understanding and agreement between the parties hereto with respect to the Employer’s employment of the Executive, and supersedes and revokes any and all prior agreements and understandings, whether oral
or written, between the parties relating to the subject matter of this Agreement. 
 20.2. Withholding. The Employer may withhold
from any payments to be made hereunder such amounts as it may be required or permitted to withhold under applicable federal, state, or other law, and transmit such withheld amounts, as appropriate, to the appropriate taxing authorities. 

20.3. Governing Law. This Agreement shall be interpreted under, subject to, and governed by the substantive laws of the State of Maine,
without giving effect to provisions thereof regarding conflict of laws. 
 20.4. Modification and Waiver. This Agreement may not be
modified or amended, except by an instrument in writing signed by the parties hereto. Notwithstanding the preceding sentence, this Agreement shall be construed and administered in such manner as shall be necessary to effect compliance with Code
Section 409A and shall be subject to amendment in the future, in such manner as the Employer, in consultation with the Executive, may deem necessary or appropriate to effect such compliance; provided, that any such amendment shall preserve for
the Executive the benefit originally afforded pursuant to this Agreement. No term or condition of this Agreement shall be deemed to have been waived, except by written instrument of the party charged with such waiver. A waiver shall operate only as
to the specific term or condition waived and will not constitute a waiver of any other term or condition of this Agreement or as to any subsequent occurrence of the term or condition. 

20.5. Cooperation. Each of the parties agrees to execute all further instruments and documents and to take all further action as the
other party may reasonably request in order to effectuate the terms and purposes of this Agreement. 

  
 21 

 20.6. Captions. The captions appearing in this Agreement are for convenience of reference
only and in no way define, limit, or affect the scope or substance of any section of this Agreement. 
 20.7. Severability. The
invalidity or unenforceability of any provision of this Agreement shall not affect any other provision hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision was omitted. Furthermore, in lieu of
such illegal, invalid, or unenforceable provision there shall automatically be added as a part of this Agreement a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and be legal, valid, and
enforceable. 
 20.8. Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all
Parties hereto had signed the same document. All counterparts shall be construed together and shall constitute one Agreement. This Agreement, to the extent signed and delivered by means of a facsimile machine or PDF, shall be treated in
all manner and respects as an original signed agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. 

 

	21.	ACKNOWLEDGEMENT. 

 The Executive acknowledges that she has had a full and complete
opportunity to review the terms, enforceability, and implications of this Agreement; that she has had a full and complete opportunity to present it to competent legal counsel for review; and that the Employer has not made any representations and
warranties to the Executive concerning the terms, enforceability, and implications of this Agreement other than as reflected in this Agreement. 

[THE NEXT PAGE IS THE SIGNATURE PAGE.]

  
 22 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first
written above. 
  

							
	Witness:	  	BAR HARBOR BANKSHARES	 	
				
	 /s/ Witness
	  	By:	 	 /s/ Curtis C. Simard
	 	
				
		  	Name:	 	Curtis C. Simard	 	
		  	Title:	 	President & CEO	 	
			
	Witness:	  	BAR HARBOR BANK & TRUST	 	
				
		  	By:	 	 /s/ Curtis C. Simard
	 	
	 /s/ Witness
	  		 		 	
		  	Name:	 	Curtis C. Simard	 	
		  	Title:	 	President & CEO	 	
			
	Witness:	  	EXECUTIVE	 	
			
	 /s/ Witness
	  	 /s/ Josephine Iannelli
	 	
		  	JOSEPHINE IANNELLI

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