Document:

Exhibit 10.3 

 

EXECUTION COPY

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(the "Agreement") is made and entered into, effective as of January 1, 2018 (the "Effective Date"),
by and between Orange Bank & Trust Company (the "Bank") and John Bartolotta ("Executive"). Any reference
to the "Company" shall mean Orange County Bancorp, Inc. or any successor thereto.

 

WHEREAS,
the Bank wishes to assure itself of the continued services of Executive for the period provided in this Agreement; and

 

WHEREAS,
in order to induce Executive to remain in the employ of the Bank and to provide further incentive for Executive to achieve
the financial and performance objectives of the Bank, the parties desire to enter into this Agreement; and

 

WHEREAS,
the Bank desires to set forth the rights and responsibilities of Executive and the compensation payable to Executive, as modified
from time to time.

 

NOW,
THEREFORE, in consideration of the mutual covenants herein contained, and upon the other terms and conditions hereinafter provided,
the parties hereby agree as follows:

 

1.            POSITION
AND RESPONSIBILITIES.

 

During the term of this Agreement,
Executive agrees to serve as Executive Vice President, Rockland Regional President, of the Bank or any successor position with the Bank
as mutually agreed to by the Bank and Executive (Executive's foregoing position or any successor position with the Bank shall be referred
to as the "Executive Position"), and will perform the duties and will have all powers associated with such position as
commonly incident to such position, as well as those delegated to Executive by the Board of Directors of the Bank or its designee (the
 "Board"). Executive shall report directly to the Chief Executive Officer of the Bank. During the period provided in this Agreement,
Executive also agrees to serve, if elected, as an officer or director of any subsidiary or affiliate of the Bank and in such capacity
carry out such duties and responsibilities reasonably appropriate to that office.

 

2.            TERM
AND DUTIES.

 

(a)            Term
and Annual Renewal. The initial term of this Agreement and the period of Executive's employment hereunder shall begin as of the
Effective Date and shall continue through December 31, 2020 (the "Initial Term"). Commencing on January 1,
2021 and continuing on each January 1 st thereafter (the "Renewal Date"), the Initial Term shall extend
automatically for one additional year, unless either the Bank or the Executive by written notice to the other given at least ninety (90)
days prior to such Renewal Date notifies the other of its intent not to extend the same. In the event that notice not to extend is given
by either the Bank or the Executive, this Agreement shall terminate as of the last day of the then current term. References herein to
the "Term" shall mean the Initial Term, as the same may be renewed.

 

     

     

    

 

(b)            Membership
on Other Boards or Organizations. During the period of his employment hereunder, except for periods of absence occasioned by illness,
reasonable vacation periods, and reasonable leaves of absence, Executive will devote all of his business time, attention, skill and efforts
to the faithful performance of his duties under this Agreement, including activities and duties related to the Executive Position. Notwithstanding
the preceding sentence, subject to the approval of the Board, Executive may serve as a member of the board of directors of business, community
and charitable organizations, provided that in each case such service shall not materially interfere with the performance of his duties
under this Agreement, adversely affect the reputation of the Bank or any other affiliates of the Bank (as determined by the Board), or
present any conflict of interest.

 

(c)            Continued
Employment Following Expiration of Term. Nothing in this Agreement shall mandate or prohibit a continuation of Executive's employment
following the expiration of the term of this Agreement.

 

3.            COMPENSATION,
BENEFITS AND REIMBURSEMENT.

 

(a)            Base
Salary. In consideration of Executive's performance of the responsibilities and duties set forth in this Agreement, the Bank will
provide Executive the compensation specified in this Agreement. The Bank will pay Executive a salary of $290,000 per year ("Base
Salary"). Such Base Salary will be payable in accordance with the customary payroll practices of the Bank. During the term
of this Agreement, the Board may consider increasing, but not decreasing, Executive's Base Salary as the Board deems appropriate. Any
change in Base Salary will become the "Base Salary" for purposes of this Agreement.

 

(b)            Annual
Bonus. For each fiscal year of the Bank during the Term, Executive shall be eligible to participate in the Bank's Annual Incentive
Plan (or any successor thereto) (the "Annual Bonus Plan"). Executive's target annual bonus under the Annual Bonus Plan
shall be determined by the Compensation Committee of the Board (the "Committee") and shall be commensurate with the target
bonus opportunity available for similarly-situated executives of the Bank generally (the "Target Bonus"). The actual
amount of Executive's annual bonus shall depend upon the achievement of performance goals established by the Committee. The terms and
conditions of the Annual Bonus Plan and the payments to Executive thereunder shall be applied on the basis not less favorable to Executive
than to other similarly situated executives of the Bank generally. The Committee may in its discretion increase Executive's annual bonus
opportunity. The term Target Bonus, as utilized in this Agreement, shall refer to the Target Bonus as it may be increased. Annual bonuses
awarded to Executive under the Annual Bonus Plan are referred to herein as "Annual Bonuses." The payment of any such
Annual Bonus shall be subject to all the terms and conditions of the applicable Annual Bonus Plan, including any underlying award agreement.

 

(c)            Long-Term
Compensation. For each fiscal year of the Bank during the Term, Executive shall be eligible to participate in the Company's Long-Term
Incentive Plan (the "LTIP Plan") and/or any other long-term compensation program established by the Company or the Bank from
time to time for executive officers. Executive's target annual equity award opportunity shall be determined by the Committee and shall
be no less favorable than the target equity award opportunity available to other similarly-situated executives of the Bank generally,
with the actual award to be determined by the Committee on a basis not less favorable to Executive than other similarly-situated executives
of the Bank generally. The terms and conditions of any equity award (such as the underlying performance goals and/or vesting requirements)
shall be subject to the LTIP Plan, including any underlying award agreement.

 

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(d)            Supplemental
Executive Retirement Plan. For each fiscal year of the Bank during the Term, Executive shall be eligible to participate in the
Bank's Supplemental Executive Retirement Plan (the "SERP"), pursuant to which the Bank shall make an annual contribution to
a book-entry account for the benefit of Executive, with the amount and the terms and conditions of the annual contributions (such as the
underlying performance goals, vesting requirements and the time and manner in which the benefits will be paid) to be determined pursuant
to an underlying Participation Agreement, which shall be reasonable and acceptable to the Bank and Executive.

 

(e)            Other
Benefit Plans. During the Term, Executive shall be entitled to participate, on the terms and conditions not less favorable to
Executive than other similarly situated executives of the Bank generally, in the Bank's (A) tax-qualified retirement plans; (B) group
life, health and disability insurance plans; and (C) any other employee benefit plans and programs and perquisites in accordance
with the Bank's customary practices with respect to other similarly situated executives generally, provided that Executive's participation
shall be subject to the terms of such plans and programs; and provided, further, that nothing herein shall limit the Bank's right to amend
or terminate any such plans or programs.

 

(f)             Vacation.
Executive will be entitled to four (4) weeks of paid vacation time each year during the term of this Agreement measured
on a calendar year basis, in accordance with the Bank's customary practices, as well as sick leave, holidays and other paid absences
in accordance with the Bank's policies and procedures for executives. Any unused paid time off during an annual period will be treated
in accordance with the Bank's personnel policies as in effect from time to time.

 

(g)            Expense
Reimbursements. The Bank will reimburse Executive for all reasonable travel, entertainment and other reasonable expenses incurred
by Executive during the course of performing his obligations under this Agreement, including, without limitation, fees for memberships
in such organizations as Executive and the Chief Executive Officer mutually agree are necessary and appropriate in connection with the
performance of his duties under this Agreement, upon substantiation of such expenses in accordance with applicable policies and procedures
of the Bank. Executive shall be provided a car allowance in the amount of $750.00 per month, with the expense of gas and maintenance incurred
be paid or reimbursed to Executive by the Bank. In addition, Executive shall be entitled to reimbursement of membership fees and assessments
with respect to a country club located in a county of New York relevant to Executive's business activities, as approved by the Chief Executive
Officer. All reimbursements pursuant to this Section 3(g) shall be reimbursed upon presentation to the Bank of an itemized account
of such expense in such form as the Bank may reasonably require.

 

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4.            TERMINATION
AND TERMINATION PAY.

 

Subject to Section 5
of this Agreement which governs the occurrence of a Change in Control, Executive's employment under this Agreement may be terminated in
the following circumstances:

 

(a)            Death.
This Agreement shall terminate upon Executive's death, in which event the Bank's sole obligation shall be to pay Executive's estate
or beneficiary any "Accrued Obligations." For purposes of this Agreement, "Accrued Obligations" shall mean:
(1) any accrued and unpaid Base Salary of Executive through the date of termination of employment, payable pursuant to the Bank's
standard payroll policies; (2) any earned and unpaid bonus of Executive under the Annual Bonus Plan for any completed fiscal year
prior to the date of termination of employment; (3) any compensation and benefits to the extent payable to Executive based on Executive's
participation in any compensation or benefit plan (including pursuant to any individual or group life insurance plan or policy), program
or arrangement of the Bank through the date of termination of employment, payable in accordance with the terms of such plan, program
or arrangement; and (4) any expense reimbursement to which Executive is entitled under the Bank's standard expense reimbursement
policy (as applicable) in Section 3(g) hereof.

 

(b)            Disability.
This Agreement shall terminate in the event of Executive becomes "Totally Disabled." For purposes of this Agreement, Executive
shall be "Totally Disabled" if Executive is deemed disabled for purposes of eligibility for receipt of disability benefits
under the Bank's long-term disability plan, if any, or receipt of Social Security disability benefits. In the event Executive's employment
is terminated due to becoming Totally Disabled, the Bank shall pay or provide Executive with any Accrued Obligations. In addition, Executive
shall continue to receive his full Base Salary under Section 3(a) of this Agreement until he becomes eligible for and receives
disability income under the long-term disability insurance coverage then in effect for the Executive. If Executive elects to continue
his group health coverage with the Bank pursuant to COBRA, the Bank shall pay to Executive the "COBRA Payments" for a period
of 18 months or, if earlier, until the date on which Executive receives substantially comparable coverage under another group health insurance
plan. The "COBRA Payments" shall be monthly installment payments, each equal to the monthly COBRA premium in effect as
of the date of Executive's termination of employment for the level of coverage in effect for Executive under the Bank's group health plan.

 

(c)            Termination
for Cause. The Board may immediately terminate Executive's employment at any time for "Cause." In the event Executive's
employment is terminated for Cause, the Bank's sole obligation shall be to pay or provide to Executive any Accrued Obligations. Termination
for "Cause" shall mean termination because of, in the good faith determination of the Board, Executive's:

 

(i)            an
act of fraud, embezzlement, or theft while employed by the Bank, or indictment or conviction of the Executive for, or plea of no contest
to, a felony, conviction of or plea of no contest to a misdemeanor involving moral turpitude, or the arrest and incarceration of Executive
for acts by Executive involving moral turpitude;

 

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(ii)            gross
negligence, insubordination, disloyalty, or dishonesty in the performance of the Executive's duties as an officer of the Bank; willful
or reckless failure by the Executive to adhere to the Bank's written policies; intentional wrongful damage by Executive to the business
or property of the Company and the Bank, including without limitation its reputation, which in the Board's sole judgment causes material
harm to the Company, the Bank or any of its affiliates, provided, however, that the Bank shall provide Executive with written notice specifying
Executive's actions or conduct that breached this Section 4(c)(ii) and Executive shall have 30 days to cure or remediate such
actions or conduct after receiving such written notice;

 

(iii)            removal
of Executive from office or permanent prohibition of Executive from participating in the affairs of the Bank by an order issued under
Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(e)(4) or (g)(1); or

 

(iv)            acts
or omissions in the performance of Executive's duties having a material adverse effect on the Bank that were not done or omitted to be
done in good faith or which involved intentional misconduct or a knowing violation of law.

 

(d)            Voluntary
Termination by Executive without Good Reason. Executive may voluntarily terminate employment during the Term upon at least 30
days prior written notice to the Board. Except upon Executive's voluntary termination "With Good Reason" (as defined below),
Executive shall have no right to receive any compensation or benefits under this Agreement or otherwise upon his voluntary termination
of employment, except any Accrued Obligations, provided, however, that any unpaid Annual Bonus as of the date of termination shall be
forfeited. The Bank may accelerate the date of termination upon receipt of written notice of Executive's voluntary termination.

 

(e)            Termination
Without Cause or With Good Reason.

 

		(i)	The Board may immediately terminate Executive's employment at any time for a reason other than Cause (a
termination "Without Cause"), and Executive may, by written notice to the Board, terminate this Agreement at any time
within 90 days following an event constituting "Good Reason," as defined below (a termination "With Good Reason");
provided, however, that the Bank shall have 30 days to cure the "Good Reason" condition, but the Bank may waive its right
to cure. Any termination of Executive's employment shall have no effect on or prejudice the vested rights of Executive under the Bank's
qualified or non-qualified retirement, pension, savings, thrift, profit-sharing or bonus plans, group life, health (including hospitalization,
medical and major medical), dental, accident and long-term disability insurance plans or other employee benefit plans or programs, or
compensation plans or programs in which Executive was a participant.

 

		(ii)	In the event of termination as described under Section 4(e)(i) and subject to the requirements
of Section 4(e)(v), the Bank shall pay or provide to Executive any Accrued Obligations. In addition, the Bank shall pay Executive,
or in the event of Executive's subsequent death, Executive's beneficiary or estate, as the case may be, as severance pay, a cash lump
sum payment equal to 100% of Executive's Base Salary, payable within 30 days following Executive's date of termination.

 

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		(iii)	In addition, the Bank shall pay to Executive the COBRA Payments on a monthly basis commencing with the
first month following Executive's date of termination and continuing until the earlier of (A) the sixth (6th) month following
Executive's date of termination; or (B) such time that Executive first becomes eligible for health insurance coverage with another
employer.

 

		(iv)	"Good Reason" exists if, without Executive's express written consent, any of the following
occurs:

 

		(A)	a material reduction in Executive's Base Salary;

 

		(B)	a material reduction in Executive's authority, duties or responsibilities from the position and attributes
associated with the Executive Position;

 

		(C)	Executive ceases to report to the Chief Executive Officer of the Bank; or

 

		(D)	a change in the geographic location at which Executive must perform services for the Bank by more than
35 miles from the location where it is contemplated that Executive will be performing Executive's duties, provided, however, that Executive
being asked/requested to provide services to the Bank at its headquarters in Middletown, NY shall not constitute "Good Reason"
under this Section 4(e)(iv).

 

		(v)	Executive shall not be entitled to any payments or benefits under this Section 4(e) unless and
until Executive executes a release of claims (the "Release") against the Bank and any affiliate, and their officers,
directors, successors and assigns, releasing said persons from any and all claims, rights, demands, causes of action, suits, arbitrations
or grievances relating to the employment relationship, including claims under the Age Discrimination in Employment Act, but not including
claims for benefits under tax-qualified plans or other benefit plans in which Executive is vested, claims for benefits required by applicable
law or claims with respect to obligations set forth in this Agreement that survive the termination of this Agreement. The Release must
be executed and become irrevocable by the 60th day following the date of Executive's termination of employment, provided that
if the 60-day period spans two (2) calendar years, then, to the extent necessary to comply with Section 409A of the Internal
Revenue Code of 1986, as amended (the "Code"), the payments and benefits described in this Section 4(e) will be paid,
or commence, in the second calendar year.

 

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(f)             Effect
on Status as a Director. In the event of Executive's termination of employment under this
Agreement for any reason, such termination shall also constitute Executive's resignation as a director of the Bank or the Company, or
any subsidiary or affiliate thereof, to the extent Executive is acting as a director of any of the aforementioned entities.

 

5.            CHANGE
IN CONTROL.

 

(a)            Change
in Control Defined. For purposes of this Agreement, the term "Change in Control"
shall mean the occurrence of any of the following events in accordance with Code Section 409A and the regulations and guidance of
general application thereunder issued by the U.S. Department of the Treasury, including:

 

		(i)	Change in Ownership: the date any one person or persons acting as a group (but excluding an intra
family acquisition or transfer of stock between members of the Morrison family) accumulates ownership of Company stock constituting more
than 50% of the total voting power of Company stock;

 

		(ii)	Change in Effective Control: the date that (A) any one person or persons acting as a group
(but excluding an intra family acquisition or transfer of stock between members of the Morrison family) acquires within a 12-month period
ownership of Company stock possessing 40% or more of the total voting power of Company stock, or (B) a majority of the Company's
board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed in advance by a majority
of the Company's board of directors; or

 

		(iii)	Change in Ownership of a Substantial Portion of Assets: the date that any one person or persons
acting as a group (but excluding an intra family acquisition or transfer of stock between members of the Morrison family) acquires (or
has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company
or the Bank that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets
of the Company or the Bank immediately prior to such acquisition.

 

(b)           Change
in Control Benefits. In the event of a termination of Executive's employment by the Bank (or any successor) Without Cause or by
Executive With Good Reason upon or within 12 months of a Change in Control that occurs during the Term, the Bank (or any successor) (i) the
Bank shall pay or provide to Executive any Accrued Obligations; and (ii) pay Executive, or in the event of Executive's subsequent
death, Executive's beneficiary or estate, as severance pay an amount equal to two (2) times Executive's Base Salary (at the rate
in effect when the Change in Control occurs or, if higher, at the rate in effect on Executive's date of termination) in a lump sum payment
within 30 days following Executive's date of termination. In addition, the Bank (or any successor) shall pay to Executive the COBRA Payments
on a monthly basis commencing with the first month following Executive's date of termination and continuing until the earlier of (A) the
sixth (6th) month following Executive's date of termination; or (B) such time that Executive first becomes eligible for
health insurance coverage with another employer. Notwithstanding the foregoing, the payments and benefits provided in this Section 5(b) shall
be payable to Executive in lieu of any payments or benefits that are payable under Section 4(e).

 

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(c)            280G.
Notwithstanding the preceding paragraphs of this Section, if the payments and benefits to be afforded to Executive under Section 5
hereof (the "Severance Benefits") either alone or together with other payments and benefits which Executive has the right
receive from the Company or the Bank (or any affiliate) would constitute a "parachute payment" under Section 280G of the
Code, and but for this Section 5, would be subject to the excise tax imposed by Section 4999 of the Code (the "Excise
Tax"), then the Severance Benefits shall be reduced (the "Benefit Reduction") by the minimum amount necessary
to result in no portion of the Severance Benefits being subject to the Excise Tax. All determinations required to be made under this Section 5(c) shall
be made by tax counsel or a nationally recognized certified public accounting firm or other professional organization that is a certified
public accounting firm recognized as an expert in determinations and calculations for purposes of Section 280G of the Code selected
by the Bank prior to a Change in Control and reasonably acceptable to Executive, which determinations shall be conclusive and binding
on Executive and the Bank absent manifest error.

 

6.            COVENANTS
OF EXECUTIVE.

 

(a)            Non-Competition/Non-Solicitation
 — Employed with the Bank. Executive hereby covenants and agrees to comply with the: (1) Non-Solicitation of Employees
Covenant; (2) Non-Solicitation of Customers Covenant; and (3) Non-Competition Covenant while employed with Bank during, and
after the expiration of, the Term, as applicable.

 

(b)            Non-Competition/Non-Solicitation
 — Termination of Employment During the Term.

 

(i)        Termination
for Cause/Voluntary Termination Without Good Reason. In the event of Executive's termination by the Bank for Cause or voluntary resignation
without Good Reason during the Term, Executive agrees to comply with the (1) Non-Solicitation of Employees Covenant; (2) Non-Solicitation
of Customers Covenant; and (3) Non-Competition Covenant for a period of 18 months following Executive's date of termination.

 

(ii)        Involuntary
Termination Without Cause/Voluntary Termination With Good Reason. In the event of Executive's termination by the Bank without Cause
or voluntary resignation With Good Reason during the Term, Executive agrees to comply with the (1) Non-Solicitation of Employees
Covenant; and (2) Non-Solicitation of Customers Covenant for a period of 12 months following Executive's date of termination.

 

(c)            Non-Competition/Non-Solicitation
 — Termination of Employment after the Expiration of the Term. In the event of Executive's
termination of employment with the Bank for any reason (or no reason) following the expiration of the Term, Executive agrees to comply
with the (1) Non-Solicitation of Employees Covenant and (2) Non-Solicitation of Customers Covenant for a period of 12 months
following Executive's date of termination, provided, however, that the foregoing covenants shall only apply to Executive if the expiration
of the Term is on account of Executive's election not to renew the Term pursuant to Section 2(a) of this Agreement.

 

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(d)            Non-Competition/Non-Solicitation
 — Survival of Covenants/Change in Control. The covenants of Executive set forth in this Sections 6(a) 6(b) and
6(c) shall survive the termination of this Agreement. However, Sections 6(b) and 6(c) shall become null and void effective
immediately upon a Change in Control.

 

(e)            Non-Competition/Non-Solicitation
 — Certain Definitions. For purposes of this Agreement, the following capitalized terms are defined as follows:

 

(i)            "Non-Solicitation
of Employees Covenant" means that Executive shall not, without the written consent of the Bank, either directly or indirectly
solicit, offer employment to, or take any other action intended (or that a reasonable person acting in like circumstances would expect)
to have the effect of causing any officer or employee of the Bank, or any of its respective subsidiaries or affiliates, to terminate his
or her employment with the Bank and/or accept employment with another employer.

 

(ii)            "Non-Solicitation
of Customers Covenant" means that Executive shall not, without the written consent of the Bank, either directly or indirectly
induce or attempt to induce any client, customer or other business relation (whether (1) current, (2) former, within the six
(6) months after such relationship has been terminated or (3) prospective, provided that there are demonstrable efforts or plans
to establish such relationship) of the Bank or any of its respective subsidiaries or affiliates to cease doing business or to reduce the
amount of business they have customarily done or contemplate doing with the Bank or any such subsidiary or affiliate, whether or not the
relationship with the Bank or such subsidiary or affiliate and such client, customer or other business relation was originally established,
in whole or in part, through Executive's efforts, or in any way interfere with the relationship between any such client, customer or business
relation, on the one hand, and the Bank or any such affiliate or subsidiary, on the other hand.

 

(iii)            "Non-Competition
Covenant" means that Executive shall not, without the written consent of the Bank, either directly or indirectly become an officer,
employee, consultant, director, independent contractor, agent, joint venturer, partner or trustee of any savings bank, savings and loan
association, savings and loan holding company, commercial bank, credit union, bank or bank holding company, any mortgage or loan broker
or any other entity (excluding not-for-profit entities other than credit unions) that competes with the business of the Bank or any of
their direct or indirect subsidiaries or affiliates that has a headquarters, or one or more offices, within the New York Counties of Dutchess,
Putnam, Sullivan, Westchester, Rockland, Orange or Bronx, or the Connecticut County of Fairfield.

 

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(f)             Confidentiality.
Executive recognizes and acknowledges that the knowledge of the business activities, plans for business activities, and all other proprietary
information of the Bank, as it may exist from time to time, are valuable, special and unique assets of the business of the Bank. Executive
will not, during or after the term of Executive's employment, disclose any knowledge of the past, present, planned or considered business
activities or any other similar proprietary information of the Bank to any person, firm, corporation, or other entity for any reason or
purpose whatsoever unless expressly authorized by the Board or required by law. Notwithstanding the foregoing, Executive may disclose
any knowledge of banking, financial and/or economic principles, concepts or ideas which are not solely and exclusively derived from the
business plans and activities of the Bank. Further, Executive may disclose information regarding the business activities of the Bank to
any bank regulator having regulatory jurisdiction over the activities of the Bank pursuant to a formal regulatory request. In the event
of a breach or threatened breach by Executive of the provisions of this Section, the Bank will be entitled to an injunction restraining
Executive from disclosing, in whole or in part, the knowledge of the past, present, planned or considered business activities of the Bank
or any other similar proprietary information, or from rendering any services to any person, firm, corporation, or other entity to whom
such knowledge, in whole or in part, has been disclosed or is threatened to be disclosed. Nothing herein will be construed as prohibiting
the Bank from pursuing any other remedies available to the Bank for such breach or threatened breach, including the recovery of damages
from Executive.

 

(g)            Information/Cooperation.
Executive shall, upon reasonable notice, furnish such information and assistance to the Bank as may be reasonably required by the Bank,
in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party; provided, however,
that Executive shall not be required to provide information or assistance with respect to any litigation between Executive and the Bank
or any other subsidiaries or affiliates.

 

(h)            Reliance.
Except as otherwise provided, all payments and benefits to Executive under this Agreement shall be subject to Executive's compliance
with this Section 6, to the extent applicable. The parties hereto, recognizing that irreparable injury will result to the Bank, its
business and property in the event of Executive's breach of this Section 6, agree that, in the event of any such breach by Executive,
the Bank will be entitled, in addition to any other remedies and damages available, to an injunction to restrain the violation hereof
by Executive and all persons acting for or with Executive. Executive represents and admits that Executive's covenants set forth in this
Section 6 are reasonable. Nothing herein will be construed as prohibiting the Bank from pursuing any other remedies available to
them for such breach or threatened breach, including the recovery of damages from Executive.

 

7.            SOURCE
OF PAYMENTS.

 

All payments provided in this
Agreement shall be timely paid by check or direct deposit from the general funds of the Bank (or any successor of the Bank).

 

8.            EFFECT
ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.

 

This Agreement, along with
any agreement referenced herein, contains the entire understanding between the parties hereto and supersedes any prior employment agreement
between the Bank or any predecessor of the Bank and Executive, except that this Agreement shall not affect or operate to reduce any benefit
or compensation inuring to Executive under another plan, program or agreement (other than an employment agreement) between the Bank and
Executive.

 

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9.            NO
ATTACHMENT; BINDING ON SUCCESSORS.

 

(a)         Except
as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale,
assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment by operation
of law, and any attempt, voluntary or involuntary, to affect any such action shall be null, void, and of no effect.

 

(b)        The
Bank shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially
all the business or assets of the Bank, expressly and unconditionally to assume and agree to perform the Bank's obligations under this
Agreement, in the same manner and to the same extent that the Bank would be required to perform if no such succession or assignment had
taken place.

 

10.           MODIFICATION
AND WAIVER.

 

(a)        This
Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto.

 

(b)        No
term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any
provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written waiver shall
be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition
waived and shall not constitute a waiver of such term or condition for the future as to any act other than that specifically waived.

 

11.            REQUIRED
PROVISIONS.

 

Notwithstanding anything herein
contained to the contrary, the following provisions shall apply:

 

(a)            The
Board may terminate Executive's employment at any time, but any termination by the Bank's Board other than termination for Cause shall
not prejudice Executive's right to compensation or other benefits under this Agreement. Executive shall have no right to receive compensation
or other benefits under this Agreement for any period after Executive's termination for Cause.

 

(b)            Notwithstanding
anything herein contained to the contrary, any payments to Executive by the Company, 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. Section 1828(k),
and the regulations promulgated thereunder in 12 C.F.R. Part 359.

 

(c)            Notwithstanding
anything else in this Agreement to the contrary (with the exception of Section 4(c)(i)), Executive's employment shall not be deemed
to have been terminated unless and until Executive has a Separation from Service within the meaning of Code Section 409A. For purposes
of this Agreement, a "Separation from Service" shall have occurred if the Bank and Executive reasonably anticipate that
either no further services will be performed by Executive after the date of termination (whether as an employee or as an independent contractor)
or the level of further services performed is less than 50 percent of the average level of bona fide services in the 36 months immediately
preceding the termination. For all purposes hereunder, the definition of Separation from Service shall be interpreted consistent with
Treasury Regulation Section 1.409A-1(h)(ii).

 

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(d)        Notwithstanding
the foregoing, if Executive is a "specified employee" (i.e., a "key employee" of a publicly traded company
within the meaning of Section 409A of the Code and the final regulations issued thereunder) and any payment under this Agreement
is triggered due to Executive's Separation from Service, then solely to the extent necessary to avoid penalties under Section 409A
of the Code, no payment shall be made during the first six (6) months following Executive's Separation from Service. Rather, any
payment which would otherwise be paid to Executive during such period shall be accumulated and paid to Executive in a lump sum on the
first day of the seventh month following such Separation from Service. All subsequent payments shall be paid in the manner specified in
this Agreement.

 

(e)        If
the Bank cannot provide Executive or Executive's dependents any continued health insurance or other welfare benefits as required by this
Agreement because Executive is no longer an employee, applicable rules and regulations prohibit such benefits or the payment of such
benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank shall pay Executive or Executive's beneficiary
or estate in the event of death a cash lump sum payment reasonably estimated to be equal to the value of such benefits or the value of
the remaining benefits at the time of such determination. Such cash payment shall be made in a lump sum within 30 days after the later
of Executive's date of termination or the effective date of the rules or regulations prohibiting such benefits or subjecting the
Bank to penalties.

 

(f)        To
the extent not specifically provided in this Agreement, any compensation or reimbursements payable to Executive shall be paid or provided
no later than two and one-half (2.5) months after the calendar year in which such compensation is no longer subject to a substantial risk
of forfeiture within the meaning of Treasury Regulation Section 1 409A-1(d).

 

(g)        Notwithstanding
anything in this Agreement to the contrary, Executive understands that nothing contained in this Agreement limits Executive's ability
to file a charge or complaint with the Securities and Exchange Commission or any other federal, state or local governmental agency or
commission ("Government Agencies") about a possible securities law violation without approval of the Bank (or any affiliate).
Executive further understands that this Agreement does not limit Executive's ability to communicate with any Government Agency or otherwise
participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other
information, without notice to the Bank (or any affiliate) related to the possible securities law violation. This Agreement does not limit
Executive's right to receive any resulting monetary award for information provided to any Government Agency.

 

12.            SEVERABILITY.

 

If, for any reason, any provision
of this Agreement, or any part of any provision, is held invalid, such invalidity shall not affect any other provision of this Agreement
or any part of such provision not held so invalid, and each such other provision and part thereof shall to the full extent consistent
with law continue in full force and effect.

 

13.            GOVERNING
LAW.

 

This Agreement shall be governed
by the laws of the State of New York, but only to the extent not superseded by federal law.

 

    12 

     

    

 

14.          PAYMENT
OF LEGAL FEES.

 

To the extent that such payment(s) may
be made without triggering penalty under Code Section 409A, all reasonable legal fees paid or incurred by Executive pursuant to any
dispute relating to this Agreement shall be paid or reimbursed by the Bank provided that the dispute is resolved in Executive's favor,
and such reimbursement shall occur no later than 60 days after the end of the year in which the dispute is settled or resolved in Executive's
favor.

 

15.          INDEMNIFICATION.

 

The Bank shall provide Executive
(including Executive's heirs, executors and administrators) with coverage under a standard directors' and officers' liability insurance
policy at its expense, and shall indemnify Executive (and Executive's heirs, executors and administrators) in accordance with the charter
and bylaws of the Bank and to the fullest extent permitted under applicable law against all expenses and liabilities (including attorneys'
fees) reasonably incurred by Executive in connection with or arising out of any action, suit or proceeding in which he may be involved
by reason of Executive having been a director or officer of the Bank or any subsidiary or affiliate of the Bank.

 

16.          NOTICE.

 

For the purposes of this Agreement,
notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by certified or registered mail, return receipt requested, postage prepaid, addressed to the respective addresses
set forth below:

 

		To
                            the Bank:	Orange Bank &Trust Company
	 	 	212 Dolson Avenue
	 	 	Middletown, NY 10940
	 	 	Attention: Chief Executive Officer
	 	 	 
	 	To Executive:	Most
recent address on file with the Bank

 

[Signature Page Follows]

 

    13 

     

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the dates below.

 

By signing below, the Bank
and Executive acknowledge and agree that: (1) this Agreement shall supersede and replace the employment agreement between the Bank
and Executive dated January 5, 2015 (the "Prior Agreement") as of the Effective Date; and (2) the Prior
Agreement shall be terminated as of the Effective Date.

 

		 	ORANGE BANK & TRUST COMPANY
	Date: 11/17/17                                                                           	 	 
	 	By:	/s/ Michael J. Gilfeather
	 	Name:	Michael J. Gilfeather
	 	Title:	President and Chief Executive Officer 
	 	 	 
	 	 	/s/ John Bartolotta
	 	 	John Bartolotta
	Date: 11/17/17                                                                          	 	 

 

    14Exhibit 10.4

 

ORANGE BANK & TRUST COMPANY

PERFORMANCE-BASED SUPPLEMENTAL EXECUTIVE RETIREMENT
PLAN

 

ARTICLE I

GENERAL

 

1.1           PURPOSE
OF THE PLAN. The purpose of the Orange Bank & Trust Company Performance-Based Supplemental Executive Retirement
Plan (the “Plan”) is to assist the Employer and its affiliates in retaining, attracting and providing supplemental executive
retirement benefits to certain key management employees. The Plan is intended at all times to satisfy Section 409A of the Code (and
all guidance published thereunder), and the provisions of the Plan shall be construed to effectuate such intent. The Plan is also intended
to qualify as a “top hat” plan for purposes of ERISA.

 

1.2           PLAN
BENEFITS GENERALLY. Pursuant to this Plan, the Employer may provide to each Participant a performance-based supplemental retirement
benefit, subject to the terms and conditions contained in this Plan and the Participant’s individual Participation Agreement.

 

1.3           EFFECTIVE
DATE. The effective date of this Plan is January 1, 2018.

 

ARTICLE II

DEFINITIONS

 

2.1           “ADMINISTRATOR”
means the Compensation Committee of the Board of Directors.

 

2.2          “BENEFICIARY”
means the person or persons designated by a Participant as his or her beneficiary in accordance with Section 5.6 of the Plan.

 

2.3           “BOARD
OF DIRECTORS” means the Board of Directors of the Employer.

 

2.4           “CAUSE”
shall have the meaning set forth in any employment agreement or change in control agreement between the Employer and the Participant.
If the Participant is not a party to an employment agreement or change in control agreement with the Employer, then Cause means a good
faith determination of the Board of Directors of the Participant’s:

 

		(i)	personal dishonesty;

 

		(ii)	incompetence;

 

		(iii)	willful misconduct;

 

		(iv)	breach of fiduciary duty involving personal profit;

 

		(v)	intentional failure to perform stated duties; or

 

		(vi)	willful violation of any law, rule or regulation (other than traffic violations or similar offenses)
or final cease and desist order.

 

    	 	1	 

     

    

 

2.5           “CHANGE
OF CONTROL” means, for purposes of this Plan, the occurrence of any of the following events in accordance with a change
in control as defined in Section 409A of the Code and the rules, regulations, and guidance of general application thereunder issued
by the Department of the Treasury, including:

 

		(i)	Change in ownership: the date any one person or persons acting as a group (but excluding an intra
family acquisition or transfer of stock between members of the Morrison family) accumulates ownership of Company stock constituting more
than fifty (50%) percent of the total voting power of Company stock, or

 

		(ii)	Change in effective control:
the date that (A) any one person or persons acting as a group (but excluding an intra family acquisition or transfer of stock between
members of the Morrison family) acquires within a 12-month period ownership of Company stock possessing forty (40%) percent or more of
the total voting power of Company stock, or (B) a majority of the Company’s board of directors is replaced during any 12-month
period by directors whose appointment or election is not endorsed in advance by a majority of the Company’s board of directors,
or

 

		(iii)	Change in ownership of a substantial portion of assets: the date that any change in ownership of
one person or persons acting as a group (but excluding an intra family acquisition or transfer of stock between members of the Morrison
family) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons)
assets from the Company or the Employer having a total gross fair market value equal to or exceeding 40% of the total gross fair market
value of all of the Company’s assets immediately before the acquisition or acquisitions. For this purpose, gross fair market value
means the value of the Company’s assets, or the value of the assets being disposed of, determined without regard to any liabilities
associated with the assets.

 

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

 

2.7           “COMPANY”
means Orange County Bancorp, Inc. and any successor thereto.

 

2.8           “DISABILITY”
or “DISABLED” means (i) the inability of the Participant to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than twelve months; or (ii) the Participant is receiving income replacement benefits for a period
of not less than three months from the Employer’s accident and health plan by reason of the Participant’s medically-determined
physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than
twelve months; or (iii) the Participant has been determined to be totally disabled by the Social Security Administration; or (iv) the
Participant has been determined to be disabled in accordance with a disability insurance program, provided that the definition of disability
applied under such disability insurance program complies with the requirements of Treasury Regulation §1.409A-3(i)(4).

 

Notwithstanding the preceding
provisions of this definition, to the extent any provision of this Plan would cause payment of an amount that constitute deferred compensation
for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) to be made because
of the Participant’s Disability, then there shall not be a Disability that triggers payment until the date (if any) that the Participant
is disabled within the meaning of Section 409A(a)(2)(C) of the Code. Any payment that would have been made except for the application
of the preceding sentence shall be made in accordance with the payment schedule that would have applied in the absence of a Disability.

 

    	 	2	 

     

    

 

2.9          “EMPLOYER”
means Orange Bank & Trust Company and any successor or assignee, whether direct or indirect, by purchase, merger consolidation
or otherwise.

 

2.10         “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

2.11        “EXECUTIVE”
means a management or highly compensated employee of the Employer designated by the Administrator as eligible to participate in the Plan.

 

2.12        “PARTICIPANT”
means any Executive who is selected by the Administrator to participate in this Plan by entering into a Participation Agreement in accordance
herewith.

 

2.13        “PARTICIPATION
AGREEMENT” means a written agreement between the Employer and a Participant, pursuant to which the Employer agrees to
provide the Participant with benefits described in the Plan and the Participation Agreement. Each Participation Agreement shall contain
such information, terms and conditions as the Administrator, in its discretion, may specify, including, without limitation, the following:

 

		(a)	the effective date of the Participant’s participation in the Plan;

 

		(b)	the Participant’s Normal Retirement Age;

 

		(c)	the benefits to which the Participant is entitled under the Plan and the form of payment for such benefits
(i.e. installments or lump sum);

 

		(d)	the identity of the Participant’s Beneficiary; and

 

		(e)	any other provisions which supplement the terms and conditions contained in the Plan and which are not
inconsistent with the terms and conditions of the Plan.

 

2.14       “PERFORMANCE-BASED
CONTRIBUTION” or “P&L CONTRIBUTION” means an annual Employer contribution based on the attainment of
pre-defined financial or performance goals set forth in a Participation Agreement.

 

2.15        “PLAN
YEAR” means a twelve (12) month period beginning on January 1st and ending on the following December 31st.

 

2.16        “SEPARATION
FROM SERVICE” means a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(ii) and
in accordance with the default rules thereunder which includes termination of the Participant’s employment whether voluntarily
or involuntarily, by reason of death, Disability, resignation or discharge.

 

2.17         “SPECIFIED
EMPLOYEE means, in the event of the Employer or any corporate parent is or becomes publicly traded, a “Key Employee”
as such term is defined in Code Section 416(i) without regard to paragraph 5 thereof.

 

2.18       “SERP
ACCOUNT” means, an account to which the Employer shall credit all Performance-based Contributions or P&L Contributions
allocated thereto. Each Participant’s SERP Account shall be utilized solely as a device for the termination and measurement of the
amounts to be paid to the Participant pursuant to the Plan and related Participation Agreement. A Participant’s SERP Account shall
not constitute or be treated as a trust fund of any kind.

 

    	 	3	 

     

    

 

2.19       “YEAR
OF SERVICE” means, for purposes of the 2018 Plan Year, a twelve (12) consecutive month period in which a Participant
completes at least 1,000 hours of service for the Employer measured from his date of hire with the Employer. For all subsequent Plan Years,
a Year of Service shall be determined based on the applicable calendar year.

 

ARTICLE III

ELIGIBILITY AND PARTICIPATION

 

3.1         ELIGIBILITY.
The Plan is available to a select group of management and/or highly compensated employee of the Employer, determined by the Administrator,
in its sole discretion, from time to time.

 

3.2         PARTICIPATION.
Each Executive who is eligible to participate in this Plan shall enroll in this Plan by entering into a Participation Agreement and completing
such other forms and furnishing such other information as the Administrator may request. An Executive’s participation in this Plan
shall commence as of the date specified in the Participation Agreement.

 

ARTICLE IV

BENEFITS

 

4.1         SERP
ACCOUNT. The Employer shall maintain for each Participant a SERP Account to which it shall credit all amounts allocated thereto
in accordance with Sections 4.2 and 4.3. Each Participant’s SERP Account shall be adjusted no less often than annually to reflect
the credits made to the SERP Account and the earnings thereon pursuant to Section 4.4 of the Plan. Such adjustments shall be made
as long any amount remains credited to the Participant’s SERP Account. The amounts allocated and adjustments made shall comprise
the balance of the SERP Account at any time.

 

4.2         PERFORMANCE-BASED
CONTRIBUTIONS/P&L CONTRIBUTIONS. The Employer shall make Performance-Based Contributions or P&L Contributions to Participant
SERP Accounts from time to time in accordance with the terms and conditions set forth in each Participation Agreement.

 

4.3         DISCRETIONARY
CONTRIBUTIONS. The Employer shall have the right to allocate non-performance-based discretionary contributions to any Participant
which the Employer, in its sole discretion, shall determine in accordance with the terms and conditions set forth in each Participation
Agreement.

 

4.4          EARNINGS.
Interest shall be credited to each Participant’s SERP Account beginning on the first business day of the calendar year, compounded
monthly. Interest shall be based on the prime rate as published in The Wall Street Journal on the last business day of the preceding
calendar year plus one (1%) percent. The interest rate determined as of the first business day of the calendar year shall be the same
rate used for the entirety of the calendar year. The Administrator may alter the interest crediting rate formula prospectively with respect
to any future Plan Year.

 

4.5          VESTING.
The Participation Agreements shall set forth the vesting schedules (if any) for contributions made under this Plan.

 

    	 	4	 

     

    

 

4.6         FORM OF
PAYMENT. The Employer shall specify the form of the payment of the SERP Account balance (e.g. lump sum or installment payments)
in each Participant’s Participation Agreement.

 

		(a)	Lump Sum. If a Participant’s
SERP Account is to be paid in the form of a lump sum the account shall be valued as of the date of the distribution.

 

		(b)	Installment Payments.

 

		(i)	If a Participant’s SERP Account is to be paid in the form of installments it shall be valued as
of the date that occurs on or immediately prior to the payment date specified in the Participation Agreement and the first installment
shall be paid on that payment date. Thereafter, installment payments shall be paid on each successive anniversary of the payment date
for the number of years specified in the Participation Agreement. The amount of each installment shall be determined in accordance with
subparagraph (ii) below. Notwithstanding the foregoing, if before the date the last installment distribution is processed for payment
the Participant dies, the remaining balance of the Participant’s SERP Account shall instead be distributed in a lump sum in accordance
with the terms of the Participation Agreement.

 

		(ii)	In determining an installment payment, a Participant’s SERP Account shall continue to be credited
with earnings as specified in Section 4.4 until the date that immediately precedes the date the first installment payment commences.
In determining the value of a Participant’s remaining SERP Account balance following an installment payment, such distribution shall
reduce the value of the Participant’s SERP Account as of the valuation date preceding the payment date for such installment (or
partial distribution). The amount to be distributed in connection with any installment payment shall be determined by dividing the value
of a Participant’s SERP Account as of such preceding valuation date (determined before reduction of the SERP Account as of such
valuation date in accordance with the preceding sentence) by the remaining number of installments to be paid with respect to the SERP
Account.

 

ARTICLE V

SERP BENEFITS

 

5.1         SEPARATION
OF SERVICE ON OR AFTER ATTAINING NORMAL RETIREMENT AGE. If a Participant has a Separation of Service on or after attaining
his Normal Retirement Age, for reasons other than a termination for Cause, the Participant shall be entitled to a benefit equal to the
vested percentage of his SERP Account balance. The vesting and distribution of the Participant’s SERP Account balance under this
Section 5.1 shall be set forth in the Participant’s Participation Agreement.

 

5.2         SEPARATION
OF SERVICE PRIOR TO ATTAINING NORMAL RETIREMENT AGE. If a Participant has a Separation from Service prior to attaining Normal
Retirement Age, the Participant shall entitled to the vested percentage of his SERP Account balance. The vesting and distribution of the
Participant’s SERP Account balance under this Section 5.2 shall be set forth in the Participant’s Participation Agreement.

 

    	 	5	 

     

    

 

5.3         CHANGE
IN CONTROL. In the event of a Change in Control, the Participant shall be 100% vested in his entire SERP Account balance as
of the date of the Change in Control. Any payment under this Section 5.3 shall be distributed in accordance with the terms and conditions
of each Participation Agreement. If the payment under this Section 5.3, either alone or together with any other payments and benefits
the Participant has the right to receive from the Employer, would constitute a "parachute payment" under Section 280G of
the Code, and but for this Section 5.3 would be subject to excise tax imposed by Section 4999 of the Code (the “Excise
Tax”), then such payments and benefits shall be reduced by the minimum amount necessary to result in no portion of the benefits
be subject to the Excise Tax. All determinations required to be made under this Section 5.3 shall be made by tax counsel, recognized
compensation consultant or certified public accounting firm that are experts in determinations and calculations for purposes of Section 280G
of the Code. All determinations will be conclusive and binding on the Employer and Participants.

 

5.4         TERMINATION
FOR CAUSE. Notwithstanding anything to the contrary in this Plan, if a Participant is terminated for Cause, he will forfeit
his entire SERP Account balance (vested and unvested) and his participation in this Plan shall cease.

 

5.5         DEATH.
The Participant’s Beneficiary shall be entitled to a distribution of the Participant’s vested SERP Account balance in accordance
with the terms and conditions of the Participation Agreement.

 

5.6         DELAYED
DISTRIBUTIONS FOR SPECIFIED EMPLOYEES. Notwithstanding the foregoing, if a Participant is a Specified Employee and payment
of his SERP Account balance is triggered due to Separation from Service (other than due to Disability or death), then solely to the extent
necessary to avoid penalties under Section 409A of the Code, no payment shall be made during the first six (6) months following
the Participant’s Separation from Service. If payments are scheduled to be made in installments, the first six (6) months of
installment payments shall be delayed, aggregated, and paid instead on the first day of the seventh month, after which all installment
payments shall be made on their regular schedule.

 

5.7         BENEFICIARY.
The Participant’s executed Participation Agreement shall dictate the Participant’s rights and responsibilities regarding the
Participant’s Beneficiary(ies).

 

ARTICLE VI

PLAN ADMINISTRATION

 

6.1         ADMINISTRATION.

 

		(a)	General. The Plan shall
be administered by the Administrator. The Administrator shall have sole and absolute discretion to interpret where necessary all provisions
of the Plan and each Participation Agreement (including, without limitation, by supplying omissions from, correcting deficiencies in,
or resolving inconsistencies or ambiguities in, the language of the Plan, a Participation Agreement, or between the Plan and a Participation
Agreement), to determine the rights and status under the Plan of Participants or other persons, to resolve questions or disputes arising
under the Plan and to make any determinations with respect to the benefits payable under the Plan and the persons entitled thereto as
may be necessary for the purposes of the Plan. The Administrator’s determination of the rights of any Executive or former Executive
hereunder shall be final and binding on all persons, subject only to the claims procedures outlined in Article 7 hereof.

 

    	 	6	 

     

    

 

		(b)	Delegation of Duties. The
Administrator may delegate any of its administrative duties, including, without limitation, duties with respect to the processing, review,
investigation, approval and payment of benefits payable hereunder, to a named administrator or administrators.

 

6.2         REGULATIONS.
The Administrator may promulgate any rules and regulations it deems necessary in order to carry out the purposes of the Plan or to
interpret the provisions of the Plan; provided, however, that no rule, regulation or interpretation shall be contrary to the provisions
of the Plan. The rules, regulations and interpretations made by the Administrator shall, subject only to the claims procedure outlined
in Article 7 hereof, be final and binding on all persons.

 

6.3          REVOCABILITY
OF ADMINISTRATOR/EMPLOYER ACTION. Any action taken by the Administrator with respect to the rights or benefits under the Plan
of any Executive or former Executive shall be revocable by the Administrator as to payments not yet made to such person in order to correct
any incorrect payment to a Participant or a Beneficiary, and then only to the extent necessary to correct such error. Acceptance of any
benefits under the Plan constitutes acceptance of, and agreement to, the Administrator’s making any appropriate adjustments in future
payments to such person to correct any previously made overpayment or underpayment.

 

6.4         AMENDMENT.

 

		(a)	Right to Amend. The
Board of Directors, by written instrument, shall have the right to amend the Plan at any time and with respect to any provisions hereof,
and all parties hereto or claiming any interest hereunder shall be bound by such amendment; provided, however, that no such amendment
shall, without the Participant’s consent, decrease or restrict the amount accrued to the date of the amendment.

 

		(b)	Amendment Required by Law.
Notwithstanding the provisions of Section 6.4(a), the Plan may be amended at any time, retroactively if required, if found necessary,
in the opinion of the Administrator, in order to ensure that the Plan is characterized as a non-tax-qualified plan of deferred supplemental
retirement compensation maintained for members of a select group of executives and thus exempt from ERISA and in compliance with all other
provisions under the Code, as such provisions relate to the original purpose of this Plan, supplemental retirement income to the Participant(s) and/or
other related Plan and Employer objectives.

 

    	 	7	 

     

    

 

6.5         TERMINATION.
Subject to the requirements of Section 409A of the Code, in the event of complete termination of the Plan, the Plan shall cease to
operate and the Employer shall pay out to each Participant his vested SERP Account balance (including the unvested portion) as of the
date of termination of the Plan. Such complete termination of the Plan shall occur only under the following circumstances and conditions:

 

		(a)	The Board of Directors may terminate the Plan within 12 months of a corporate dissolution taxed under
Code Section 331, or with approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), provided that the amounts deferred
under the Plan are included in the Participant’s gross income in the latest of: (i) the calendar year in which the Plan terminates;
(ii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first calendar
year in which the payment is administratively practicable.

 

		(b)	The Board of Directors may terminate the Plan by irrevocable action within 30 days preceding, or 12 months
following, a Change in Control, provided that the Plan shall only be treated as terminated if all substantially similar arrangements sponsored
by the Employer are terminated so that the Participant and all participants under substantially similar arrangements are required to receive
all amounts of compensation deferred under the terminated arrangements within 12 months of the date of the irrevocable termination of
the arrangements. For these purposes, “Change in Control” shall be defined in accordance with the Treasury Regulations under
Code Section 409A.

 

		(c)	The Board of Directors may terminate the Plan provided that:

 

		(i)	the termination and liquidation does not occur proximate to a downturn in the financial health of the
Employer;

 

		(ii)	all arrangements sponsored by the Employer that would be aggregated with this Plan under Treasury Regulations
Section 1.409A-1(c) if the Participant covered by this Plan was also covered by any of those other arrangements are also terminated;

 

		(iii)	no payments other than payments that would be payable under the terms of the arrangement if the termination
had not occurred are made within 12 months of the termination of the arrangement;

 

		(iv)	all payments are made within 24 months of the termination of the arrangements; and

 

		(v)	the Employer does not adopt a new arrangement that would be aggregated with any terminated arrangement
under Treasury Regulations Section 1.409A-1(c) if the Participant participated in both arrangements, at any time within three
years following the date of termination of the arrangement.

 

6.6         WITHHOLDING.
The Employer shall deduct from any distributions hereunder any taxes or other amounts required by law to be withheld therefrom. This Plan
shall permit the acceleration of the time or schedule of a payment to pay employment related taxes as permitted under Treasury Regulation
Section 1.409A-3(j) or to pay any taxes that may become due at any time that the arrangement fails to meet the requirements
of Section 409A of the and the regulations and other guidance promulgated thereunder. In the latter case, such payments shall not
exceed the amount required to be included in income as the result of the failure to comply with the requirements of Section 409A
of the Code.

 

    	 	8	 

     

    

 

ARTICLE VII

CLAIMS ADMINISTRATION

 

7.1         GENERAL.
If a Participant, Beneficiary or his or her representative is denied all or a portion of an expected Plan benefit for any reason and the
Participant, Beneficiary or his or her representative desires to dispute the decision of the Administrator, he/she must file a written
notification of his or her claim with the Administrator.

 

7.2         CLAIMS
PROCEDURE. Upon receipt of any written claim for benefits, the Administrator shall be notified and shall give due consideration
to the claim presented. If any Participant or Beneficiary claims to be entitled to benefits under the Plan and the Administrator determines
that the claim should be denied in whole or in part, the Administrator shall, in writing, notify such claimant within ninety (90) days
of receipt of the claim that the claim has been denied. The Administrator may extend the period of time for making a determination with
respect to any claim for a period of up to ninety (90) days, provided that the Administrator determines that such an extension is necessary
because of special circumstances and notifies the claimant, prior to the expiration of the initial ninety (90) day period, of the circumstances
requiring the extension of time and the date by which the Administrator expects to render a decision. If the claim is denied to any extent
by the Administrator, the Administrator shall furnish the claimant with a written notice setting forth:

 

		(a)	the specific reason or reasons for denial of the claim;

 

		(b)	a specific reference to the Plan provisions on which the denial is based;

 

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

 

		(d)	an explanation of the provisions of this Article.

 

7.3         RIGHT
OF APPEAL. A claimant who has a claim denied under Section 7.2 may appeal to the Administrator for reconsideration of
that claim. A request for reconsideration under this section must be filed by written notice within sixty (60) days after receipt by the
claimant of the notice of denial under Section 7.2.

 

7.4         REVIEW
OF APPEAL. Upon receipt of an appeal the Administrator shall promptly take action to give due consideration to the appeal.
Such consideration may include a hearing of the parties involved, if the Administrator feels such a hearing is necessary. In preparing
for this appeal, the claimant shall be given the right to review pertinent documents and the right to submit in writing a statement of
issues and comments. After consideration of the merits of the appeal the Administrator shall issue a written decision which shall be binding
on all parties. The decision shall specifically state its reasons and pertinent Plan provisions on which it relies. The Administrator’s
decision shall be issued within sixty (60) days after the appeal is filed, except that the Administrator may extend the period of time
for making a determination with respect to any claim for a period of up to sixty (60) days, provided that the Administrator determines
that such an extension is necessary because of special circumstances and notifies the claimant, prior to the expiration of the initial
sixty (60) day period, of the circumstances requiring the extension of time and the date by which the Administrator expects to render
a decision.

 

7.5         DESIGNATION.
The Administrator may designate any other person of its choosing to make any determination otherwise required under this Article. Any
person so designated shall have the same authority and discretion granted to the Administrator hereunder.

 

    	 	9	 

     

    

 

7.6          ARBITRATION.
The claimant must follow the claims procedures of Section 7.2 and exhaust his administrative remedies before taking any further action
with respect to a claim for benefits. Any dispute, controversy or claim arising under or in connection with this Plan that is not resolved
through the Plan’s administrative procedures shall be settled exclusively by arbitration in Orange County, New York (unless another
location is mutually agreed to by the claimant and the Board), in accordance with the rules of the American Arbitration Association
then in effect. The arbitrator shall be selected by mutual agreement of the claimant and the Board of Directors. Judgment may be entered
on the arbitrators’ award in any court having jurisdiction. Unless otherwise provided in the rules of the American Arbitration
Association, the arbitrator shall, in the award, allocate between the parties the cost of arbitration, but excluding attorneys’
fees and other expenses of the parties, in such proportion as the arbitrators deem just.

 

ARTICLE VIII

MISCELLANEOUS

 

8.1          ADMINISTRATOR.
The Administrator is expressly empowered to interpret the Plan and to determine all questions arising in the administration, interpretation,
and application of the Plan; to employ actuaries, accountants, counsel, and other persons it deems necessary in connection with the administration
of the Plan; to request any information from the Employer it deems necessary to determine whether the Employer would be considered insolvent
or subject to a proceeding in bankruptcy; and to take all other necessary and proper actions to fulfill its duties as Administrator. The
Administrator is relieved of all responsibility in connection with its duties hereunder to the fullest extent permitted by law, except
any breach of duty to the Participants or Beneficiaries. If any individual shall have been delegated the duties or responsibilities as
Administrator, such person shall not be liable for any actions by him or her hereunder unless due to his or her own gross negligence or
willful misconduct and shall be indemnified and held harmless by the Employer from and against all personal liability to which he or she
may be subject by reason of any act done or omitted to be done in his or her official capacity as Administrator in the good faith administration
of the Plan, including all expenses reasonably incurred in his or her defense in the event the Employer fails to provide such defense
upon request.

 

8.2          NO
ASSIGNMENT. No benefit under the Plan or a Participation Agreement shall be subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance, or charge, and any such action shall be void for all purposes of the Plan or a Participation
Agreement. No benefit shall in any manner be subject to the debts, contracts, liabilities, engagements, or torts of any person, nor shall
it be subject to attachment or other legal process for or against any person.

 

8.3          NO
EMPLOYMENT RIGHTS. Participation in this Plan and execution of a Participation Agreement shall not be construed to confer upon
any Participant the legal right to be retained in the employ of the Employer, or give a Participant or Beneficiary, or any other person,
any right to any payment whatsoever, except to the extent of the benefits provided for hereunder. Each Participant shall remain subject
to discharge to the same extent as if this Plan had never been adopted and the Participation Agreement had never been executed.

 

8.4         IDENTITY.
If, at any time, any doubt exists as to the identity of any person entitled to any payment hereunder or the amount or time of such payment,
the Administrator shall be entitled to hold such sum until such identity or amount or time is determined or until an order of a court
of competent jurisdiction is obtained. The Administrator shall also be entitled to pay such sum into court in accordance with the appropriate
rules of law. Any expenses incurred by the Employer or Administrator incident to such proceeding or litigation shall be charged against
the SERP Account of the affected Participant.

 

    	 	10	 

     

    

 

8.5          NO
LIABILITY. No liability shall attach to or be incurred by any employee of the Employer or Administrator individually under
or by reason of the terms, conditions, and provisions contained in the Plan, or for the acts or decisions taken or made under or in connection
with the Plan; and, as a condition precedent to the establishment of this Plan or the receipt of benefits hereunder, or both, such liability,
if any, is expressly waived and released by each Participant and by any and all persons claiming benefits under the Plan. Such waiver
and release shall be conclusively evidenced by any act or participation in or the acceptance of benefits under this Plan.

 

8.6          EXPENSES.
Except as otherwise provided in the Plan, all expenses incurred in the administration of the Plan shall be paid by the Employer.

 

8.7          EMPLOYER
DETERMINATIONS. Any determinations, actions, or decisions of the Employer (including, but not limited to, Plan amendments and
Plan termination) shall be made by the Board of Directors in accordance with its established procedures or by such other individuals,
groups, or organizations that have been properly delegated by the Board of Directors to make such determinations or decisions.

 

8.8          CONSTRUCTION.
All questions of interpretation, construction or application arising under or concerning the terms of this Plan and any Participation
Agreement shall be decided by the Administrator, in its sole and final discretion, whose decision shall be final, binding and conclusive
upon all persons.

 

8.9         GOVERNING
LAW. The provisions of the Plan shall be construed, administered and governed under applicable federal laws and the laws of
the State of New York. In applying the laws of the State of New York, no effect shall be given to conflict of laws principles that would
cause the laws of another jurisdiction to apply.

 

8.10       SEVERABILITY.
Should any provision of the Plan or any Participation Agreement be deemed or held to be unlawful or invalid for any reason, such fact
shall not adversely affect the other provisions, unless such invalidity shall render impossible or impractical the functioning of the
Plan and, in such case, the appropriate parties shall immediately adopt a new provision to take the place of the one held illegal or invalid.

 

8.11       HEADINGS.
The headings contained in the Plan are inserted only as a matter of convenience and for reference and in no way define, limit, enlarge,
or describe the scope or intent of this Plan nor in any way shall they affect this Plan or the construction of any provision thereof.

 

8.12       TERMS.
Capitalized terms shall have meanings as defined herein. Singular nouns shall be read as plural, masculine pronouns shall be read as feminine,
and vice versa, as appropriate.

 

8.13       OWNERSHIP
OF ASSETS; RELATIONSHIP WITH EMPLOYER. Nothing contained in the Plan, and no action taken pursuant to its provisions, shall
create or be construed to create a trust of any kind or a fiduciary relationship between the Employer and any Participant or any other
person. To the extent that any person acquires a right to receive payments from the Employer under this Plan, such right shall be no greater
than the right of an unsecured general creditor of the Employer.

 

8.14       DEPOSITS
IN TRUST. The Employer may, at its sole discretion, establish with a corporate trustee a grantor rabbi trust under which all
or a portion of the assets of the Plan are to be held, administered and managed. The trust agreement evidencing the trust shall conform
with the terms of Revenue Procedure 92-64 or any successor procedure. The Employer in its sole discretion may make deposits to augment
the principal of such trust.

 

    	 	11	 

     

    

 

8.15       UNFUNDED
PLAN. This Plan is intended to be an unfunded plan maintained primarily to provide deferred compensation benefits for a select
group of management or highly compensated employees. This Plan is not intended to create an investment contract, but to provide tax planning
opportunities and retirement benefits to eligible individuals who have elected to participate in the Employer’s operations and have
the ability to materially affect the Employer’s profitability and operations.

 

8.16      SECTION 409A
COMPLIANCE. The Employer and each Participant intend that their exercise of authority or discretion under this Agreement shall
comply with Section 409A of the Code. If any provision of this Agreement would subject a Participant to additional tax or interest
under Section 409A, the Employer shall reform the provision. However, the Employer shall maintain to the maximum extent practicable
the original intent of the applicable provision without subjecting the Executive to additional tax or interest, and the Employer shall
not be required to incur any additional compensation expense as a result of the reformed provision. Each payment that is payable pursuant
to this Plan is intended to constitute a “separate payment” for purpose of Treasury Regulation Section 1.409A-2(b)(ii).

 

Except as specifically permitted
herein or in other sections of this Plan, no acceleration of the time or schedule of any payment may be made hereunder. Notwithstanding
the foregoing, payments may be accelerated hereunder by the Employer, in accordance with the provisions of Treasury Regulation Section 1.409A-3(j)(4) and
any subsequent guidance issued by the United States Department of the Treasury. Accordingly, payments may be accelerated, in accordance
with requirements and conditions of the Treasury Regulations (or subsequent guidance) in the following circumstances:

 

		(i)	as a result of certain domestic relations orders;

 

		(ii)	in compliance with ethics agreements with the federal government;

 

		(iii)	in compliance with ethics laws and conflicts of interest laws;

 

		(iv)	in limited cash-outs (but not in excess of the limit under Code Section 402(g)(1)(B));

 

		(v)	to apply certain offsets in satisfaction of a debt of the Participant to the Employer;

 

		(vi)	in satisfaction of certain bona fide disputes between the Participant and the Employer; or

 

		(vii)	for any other purpose set forth in the Treasury Regulations and subsequent guidance.

 

8.17       SUCCESSORS.
The provisions of this Plan shall bind and inure to the benefit of the Employer and its successors and assigns. The term “ successor”
as used herein shall include and corporate or other business entity which shall, whether by merger, consolidation, purchase or otherwise
acquire all or substantially all of the business and assets of the Employer, and its successors of any corporation or business entity.

 

    	 	12	 

     

    

 

ARTICLE IX

REGULATORY PROVISIONS

 

9.1         Notwithstanding
anything herein contained to the contrary, any SERP Benefit under this Plan and related Participation Agreement is subject to and conditioned
upon its compliance with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. §1828(k), and the regulations promulgated
thereunder in 12 C.F.R. Part 359, Golden Parachute and Indemnification Payments.

 

9.2        If
an Executive is removed from office or permanently prohibited from participating in the Employer’s affairs by an order issued under
Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(e)(4) or (g)(1), all obligations of
the Employer under this Plan and related Participation Agreement shall terminate as to the Executive as of the effective date of the order.

 

9.3           Notwithstanding
any provision of this Plan to the contrary, if the Employer is in “default” or “in danger of default,” as those
terms are defined in Section 3(x) of the Federal Deposit Insurance Act, 12 U.S.C. 1813(x), all obligations under this Plan shall
terminate.

 

    	 	13

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