Document:

Exhibit 10.7

RHINEBECK BANK

EXECUTIVE SHORT-TERM INCENTIVE AND RETENTION
PLAN

 

ARTICLE I

Establishment, Purpose and Duration

 

1.1        Establishment.
This Executive Short-Term Incentive and Retention Plan (the “Plan”) is adopted by Rhinebeck Bank (the “Bank”),
effective as of January 1, 2018 (the “Effective Date”).

 

1.2           Purpose.
The objectives of the Plan are to optimize the profitability and growth of the Bank (including its affiliates) through incentives
consistent with the Bank’s goals in order to link and align the personal interests of the Participants with the incentive
for individual and overall Bank performance. This Plan is further intended to provide flexibility to the Bank in its ability to
motivate, attract and retain the services of Participants who make significant contributions to the Bank’s success and to
allow Participants to share in the success of the Bank.

 

1.3           Duration
of this Plan. This Plan shall commence on the Effective Date, and shall remain in effect until terminated, modified or
amended in accordance with Section 4.1 of the Plan.

 

ARTICLE II

Definitions

 

For the purposes of
this Plan, the following words and phrases shall have the meanings indicated, unless the context clearly indicates otherwise:

 

2.1           “Base
Salary” means the Participant’s annual rate of base salary paid during each calendar year, excluding bonuses
and other forms of variable income, fringe benefits, reimbursements, etc.

 

2.2           “Bonus
Award” means an annual bonus paid as a cash lump sum under the Plan.

 

2.3           “Committee”
means the Compensation Committee of the Board of Directors of the Bank or Company, as applicable.

 

2.4           “Deferred
Bonus” shall have the meaning set forth in Section 3.1 of the Plan.

 

2.5           “Eligible
Employee” means executives of the Bank who are selected by the Committee, in its sole discretion, to participate
in this Plan. Being selected to participate in this Plan for one Plan Year does not guarantee selection for participation in the
Plan for any other Plan Year.

 

2.6           “LTIP”
shall have the meaning set forth in Section 3.1 of the Plan.

 

2.7           “Plan
Year” means the Bank’s fiscal year, which is the calendar year.

 

2.8           “Participant”
means an Eligible Employee who has been notified by the Committee in writing that he or she has been selected to participate in
this Plan for the current Plan Year.

 

    			 

     

    

 

ARTICLE III

Annual Cash Bonuses

 

3.1           Bonus
Award.

 

(a)          No
later than 90 days after the commencement of each Plan Year, the Committee shall set performance objectives pursuant to Section
3.2 for each Participant in writing in an Award Agreement, which shall be provided to each Participant and included as an exhibit
to the Plan. If the performance objectives for the Participant are accomplished, the Participant shall receive a Bonus Award under
the Plan equal to a designated percentage of the Participant’s Base Salary, as determined by the Committee in its sole discretion
and set forth in the Participant’s Award Agreement.

 

(b)          In
addition to the attainment of the performance objectives set forth by the Committee for the Participant in the Award Agreement,
payment of the Bonus Award is also contingent on the Participant’s overall performance level being “at expectation”
as determined by the Committee. The Committee shall have the final authority to determine whether any Participant has satisfied
these requirements.

 

(c)          If
an Eligible Employee may only become a Participant with respect to the Plan Year during which he or she is hired if the Participant’s
date of hire occurs prior to July 1 of the Plan Year.

 

3.2           Performance
Objectives.

 

(a)          Payment
of Bonus Awards in any Plan Year is contingent upon the performance objectives specified by the Committee for any Participant being
met by the Bank and/or Participant. The specific performance objectives are determined annually by the Committee, with input from
the President and Chief Executive Officer, and are subject to change by the Committee, but generally include objective performance
targets focused on financial performance, growth, asset quality, and risk management, including, but not limited to, return on
average assets, net income margin, return on equity, loan production, asset quality and subjective, discretionary performance targets,
such as particular qualitative factors for each Participant, based on his or her duties for the Bank.

 

(b)          Each
performance objective shall specify levels of achievement of goals ranging as follows:

 

(i)          Minimum
Level: The level for minimum performance deemed worthy of a Bonus Award.

 

(ii)         Target
Level: The level for typical, expected performance.

 

(iii)        Maximum
Level. The level for outstanding performance.

 

(c)          Each
objective will be weighted based on priority as a percentage of the total Bonus Award payable to the Participant. The weight of
each performance objective attributable to a Participant will be set forth in his or her Award Agreement.

 

3.3           Termination
of Employment. Unless otherwise determined by the Committee, a Participant who is not employed as of the payout date for
his or her Bonus Award shall forfeit the Bonus Award.

 

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3.4           Time
of Payout. Except as provided in Article IV, no later than two and one half (2 1⁄2) months after the close of the
Plan Year (i.e., by the March 15 that immediately follows the end of the Plan Year for which the performance is measured), the
Bonus Award will be paid to the Participant in a cash lump sum, through regular payroll practices, including all applicable withholdings.
Bonus Awards under the Plan are intended to be exempt from Section 409A of the Internal Revenue Code under the “short term
deferral rule” set forth in Treasury Regulations Section 1.409A-1(b)(4).

 

ARTICLE IV

Deferral of a Bonus Award

 

4.1           Deferred
Bonus. The Committee may grant a Bonus Award under the Plan that provides for the deferral of compensation within
the meaning of Code Section 409A. Such election to defer all or a portion of the Bonus Award (the “Deferred Bonus”)
shall be made by the Committee prior to the applicable Plan Year associated with the Bonus Award, provided, however, that if the
Bonus Award is considered “performance-based compensation” within the meaning of Code Section 409A, the Committee may
elect to pay a Deferred Bonus by the earlier of: (1) June 30th of the Plan Year; or (2) the date on which the Deferred
Bonus payable to the Participant has become readily ascertainable, as determined pursuant to Code Section 409A. To the extent that
a Deferred Bonus is payable pursuant to this Article III, the Deferred Bonus will be credited to an Incentive Benefit Account established
for the Participant under the Rhinebeck Bank Executive Long-Term Incentive and Retention Plan (the “LTIP”),
and the time and manner of the payment of the Deferred Bonus to the Participant shall be determined pursuant to the LTIP. Unless
otherwise provided by the Committee in accordance with this Section 4.1, 40% of the Participant’s Bonus Award shall be credited
to the Participant’s Incentive Benefit Account and shall be payable pursuant to the LTIP.

 

ARTICLE V

Amendments and Termination

 

5.1           Right
to Amend or Terminate. The Committee may amend or terminate this Plan at any time without the consent of any Participants,
provided, however, that the Committee may not reduce the amount of the Bonus Award already earned by any Participant in any Plan
Year without the Participant’s consent.

 

ARTICLE VI

Miscellaneous

 

6.1           No
Guarantee of Employment. This Plan is not an employment policy or contract. It does not give any Participant the right
to remain an employee of the Bank, nor does it interfere with the Bank’s right to discharge the Participant. It also does
not interfere with the Participant’s right to terminate employment at any time.

 

6.2           Non-Transferability.
Bonus Awards under this Plan cannot be sold, transferred, assigned, pledged, attached, or encumbered in any manner.

 

6.3           Applicable
Law. The Plan and all rights hereunder will be governed by the laws of the State of New York, except to the extent preempted
by the laws of the United States of America.

 

6.4           Entire
Agreement. This Plan constitutes the entire agreement between the Bank and each Participant as to the subject matter
hereof. No rights are granted to the Participant by virtue of this Plan other than those specifically set forth herein.

 

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6.5           Administration.
The Committee shall have powers which are necessary to administer this Plan, including but not limited to:

 

(a)          Interpreting
the provisions of the Plan;

 

(b)          Determine
the persons eligible to participate in the Plan;

 

(c)          Maintaining
a record of benefit payments; and

 

(d)          Establishing
rules and prescribing any forms necessary or desirable to administer the Plan.

 

[Signature Page to Follow]

 

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IN WITNESS WHEREOF,
the Bank has executed this Plan on the date set forth below.

 

	 	 	 	RHINEBECK BANK
	 	 	 	 
	 	 	 	 
	August
    28, 2018	 	By:	/s/ Michael J. Quinn
	Date	 	 	 

 

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RHINEBECK BANK

EXECUTIVE SHORT-TERIM INCENTIVE AND RETENTION
PLAN

 

AWARD AGREEMENT

 

Name: _______________________________________________________________________

 

Plan Year: ___________________________________________________________________

 

Plan Year Base Salary: _________________________________________________________

 

	 	 	 	 	 	Award as a % Base Salary	 
	Performance 
 Objective	 	Weight	 	 	Below

Minimum
	 	 	Minimum	 	 	Target	 	 	Maximum & 
 Above	 
		 	 		 	 	 	0	%	 	 		 	 	 		 	 	 		 
	 	 	 	 	 	 	 	0	%	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	0	%	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	0	%	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	0	%	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	0	%	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	0	%	 	 	 	 	 	 	 	 	 	 	 	 
	Totals	 	 	100	%	 	 	0	%Exhibit 10.8 

 

RHINEBECK BANK

EXECUTIVE LONG-TERM INCENTIVE AND RETENTION
PLAN

 

ARTICLE I

Establishment, Purpose and Duration

 

1.1           Establishment.
The Executive Long-Term Incentive and Retention Plan (the “Plan”) is adopted by Rhinebeck Bank (the “Bank”),
originally effective as of January 1, 2003 and as amended and restated, effective January 1, 2018 (the “Effective Date”).

 

1.2           Purpose.
The Plan formalizes the understanding by and among Rhinebeck Bank (the “Bank”) and certain officers of the Bank who
received a Deferred Bonus, payable pursuant to the Rhinebeck Bank Executive Short-Term Incentive and Retention Plan (the “STIP”).
This Plan is intended to constitute a nonqualified deferred compensation plan which, in accordance with Sections 201(2), 301(a)(3)
and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), is unfunded and
established primarily for the purpose of providing deferred compensation for a select group of management or highly compensated
employees. It is intended that all benefits payable under this Plan will be subject to Section 409A of the Internal Revenue Code
of 1986, as amended (“Code”), and this Plan shall be administered in good faith compliance with applicable requirements
of Code Section 409A. The Plan is an account balance plan within the meaning of Treasury Regulation Section 1.409A-1(c).

 

1.3           Duration
of Plan. This Plan shall commence as of the Effective Date, and shall remain in effect until terminated, amended or modified
in accordance with Article VIII of the Plan.

 

ARTICLE II

Definitions

 

For the purposes of
this Plan, the following words and phrases shall have the meanings indicated, unless the context clearly indicates otherwise:

 

2.1           “Bank”
means Rhinebeck Bank or any successor to the business thereof, and any other affiliated or subsidiary corporation designated by
the Board.

 

2.2           “Beneficiary”
means the person, persons or entity designated by the Participant to receive benefits payable under the Plan. If no Beneficiary
is so designated, then the Participant’s spouse, if living, will be deemed the Beneficiary. If the Participant’s spouse
is not living, then the children of the Participant will be deemed the Beneficiaries and will take on a per stirpes basis. If there
are no living children, then the estate of the Participant will be deemed the Beneficiary.

 

2.3           “Cause”
has the same meaning set forth in any written employment, change in control or severance agreement or arrangement between the Bank
and the Participant that provides for a definition of termination for “Cause.” In the absence of such definition, “Cause”
shall be determined in the sole discretion of the Board pursuant to the policies and procedures of the Bank that are applicable
to the Participant.

 

2.4           “Change
in Control” means” (except as otherwise provided in the last paragraph of hereof): (a) a change in the ownership
of the Corporation; (b) a change in the effective control of the Corporation; or (c) a change in the ownership of a substantial
portion of the assets of the Corporation as defined in accordance with Code Section 409A. For purposes of this Section 2.4 the
term “Corporation” shall be defined to include the Bank, the Company or any of their successors, as applicable.

 

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(a)          A
change in the ownership of a Corporation occurs on the date that any one person, or more than one person acting as a group (as
defined in Treasury Regulation 1.409A-3(i)(5)(v)(B)), acquires ownership of stock of the Corporation that, together with stock
held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock
of such Corporation.

 

(b)          A
change in the effective control of the Corporation occurs on the date that either (i) any one person, or more than one person acting
as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vi)(D)) acquires (or has acquired during the 12-month period ending
on the date of the most recent acquisition by such person or persons) ownership of stock of the Corporation possessing 30 percent
or more of the total voting power of the stock of the Corporation, or (ii) a majority of the members of the Board is replaced during
any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior
to the date of the appointment or election, provided that this subsection “(ii)” is inapplicable where a majority stockholder
of the Corporation is another corporation.

 

(c)          A
change in a substantial portion of the Corporation’s assets occurs on the date that any one person or more than one person
acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vii)(C)) 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 Corporation that have a total gross
fair market value equal to or more than 40 percent of the total gross fair market value of (i) all of the assets of the Corporation,
or (ii) the value of the assets being disposed of, either of which is determined without regard to any liabilities associated with
such assets. For all purposes hereunder, the definition of Change in Control shall be construed to be consistent with the requirements
of Treasury Regulation 1.409A-3(i)(5), except to the extent that such regulations are superseded by subsequent guidance.

 

Notwithstanding anything
herein to the contrary, a Change in Control shall not be deemed to have occurred either: (1) upon the conversion of the Bank to
stock form (as a stand-alone stock bank or as the subsidiary of a mutual or stock holding company); or (2) following the conversion
of the Bank to a subsidiary of a mutual holding company, upon the subsequent conversion of any mutual holding company to stock
form, or in connection with any reorganization used to effect such a conversion.

 

2.5           “Committee”
means the Compensation Committee of the Board of Directors of the Bank or Company, as applicable.

 

2.6           “Company”
means Rhinebeck Bancorp, Inc., a Maryland corporation, and any successor thereto.

 

    	 	2	 

     

    

 

2.7           “Deferred
Bonus” shall have the same meaning set forth in the STIP.

 

2.8           “Disability”
means the Participant’s suffering a sickness, accident or injury which has been determined by the carrier of any individual
or group disability insurance policy covering the Participant, or by the Social Security Administration, to be a disability rendering
the Participant totally and permanently disabled. The Participant must submit proof to the Bank of the carrier’s or Social
Security Administration’s determination upon the request of the Bank.

 

2.9           “Early
Retirement Date” means the date on which the Participant has attained age 55 and completed 15 years of service with
the Bank. The Participant’s “years of service” for purpose of this Section 2.9 is determined as of the Participant’s
date of hire with the Bank.

 

2.10         “Eligible
Employee” means each executive of the Bank who is participating in the STIP.

 

2.11         “Incentive
Benefit Account” means the account maintained on the books of the Bank for each Participant pursuant to Article IV.
A Participant’s Deferred Benefit Account shall be utilized solely as a device for the measurement and determination of the
amounts to be paid to the Participant pursuant to this Plan. A Participant’s Incentive Benefit Account shall not constitute
or be treated as a trust fund of any kind.

 

2.12         “Incentive
Benefit Account Balance” means the balance of any Incentive Benefit Account as of the applicable distribution date.

 

2.13         “Normal
Retirement Age” shall mean age 65, unless otherwise set forth in any participation agreement between the Participant
and the Bank.

 

2.14         “Participant”
means an Eligible Employee or any person who has an Incentive Benefit
Account.

 

2.15         “Plan
Year” means a twelve-month period commencing January 1st and ending the following December 31st.

 

2.16         “Separation
from Service” means the Participant’s retirement or other termination of employment with the Bank within the
meaning of Code Section 409A. No Separation from Service shall be deemed to occur due to military leave, sick leave or other bona
fide leave of absence if the period of such leave does not exceed six months or, if longer, so long as the Participant’s
right to reemployment is provided by law or contract. If the leave exceeds six (6) months and the Participant’s right to
reemployment is not provided by law or by contract, then the Executive shall have a Separation from Service on the first date immediately
following such six (6)-month period.

 

Whether a Separation
from Service has occurred is determined based on whether the facts and circumstances indicate that the Bank and the Participant
reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services
the employee would perform after such date (whether as an employee or as an independent contractor) would permanently decrease
to an amount less than 50% of the average level of bona fide services performed over the immediately preceding 36 months (or such
lesser period of time in which the Executive performed services for the Bank). The determination of whether the Participant has
had a Separation from Service shall be made by applying the presumptions set forth in the Treasury Regulations under Code Section
409A.

 

    	 	3	 

     

    

 

2.17         “Specified
Employee” means, in the event the Bank or the Company is or becomes a publicly traded company, a key employee within
the meaning of Code Section 409A and the Treasury regulations issued thereunder.

 

ARTICLE III

Incentive Benefit Account

 

3.1        Incentive
Benefit Account. The Bank shall maintain for each Participant an Incentive Benefit Account to which it shall credit all
amounts allocated thereto in accordance with Article IV of the Plan. Each Participant’s Incentive Benefit Account shall be
adjusted no less often than annually to reflect the credits made to the Incentive Benefit Account and the earnings thereon pursuant
to Section 4.2 of the Plan. Such adjustments shall be made as long as any amount remains credited to the Participant’s Incentive
Benefit Account. The amounts allocated and adjustments made will comprise of the Incentive Benefit Account at any time.

 

3.2           Unsecured
Creditor. The Participant’s interest in his or her Incentive Benefit Account is limited to the right to receive payments
under the Plan, and the Participant’s position is that of a general unsecured creditor of the Bank. Notwithstanding the foregoing,
the Committee, in its discretion, may elect to establish a fund containing assets equal to the amounts credited to the Participant’s
Incentive Benefit Account, and may elect in its discretion to designate a trustee and/or custodian to hold the fund in trust, provided,
however that the fund shall remain a general asset of the Bank, subject to the rights of creditors of the Bank.

 

ARTICLE IV

Contributions

 

4.1           Contributions.
The Participant’s Deferred Bonus will be credited to his or her Incentive Benefit Account as of the date on which the Participant’s
Bonus Award (as defined in the STIP), if any, is paid pursuant to the STIP.

 

4.2           Earnings.
As of the last day of each Plan Year, the Bank will credit to each Participant’s Incentive Benefit Account interest on the
Incentive Benefit Account Balance equal to the Company’s return on equity (on a consolidated basis) for the fiscal year of
the Company immediately preceding the applicable Plan Year.

 

4.3           Vesting.
A Participant will become vested in each Deferred Bonus (and any related earnings) 20% per year for each year of service with the
Bank, commencing on January 1st of the year immediately following the Plan Year for which the Deferred Bonus was earned,
provided, however, that the Participant will become 100% in his or her entire Incentive Benefit Account Balance upon the earlier
of: (1) the Participant’s death, Disability or involuntary termination of employment by the Bank without Cause; (2) the Participant’s
attainment of the Normal Retirement Age or Early Retirement Date; or (3) upon the occurrence of a Change in Control.

 

ARTICLE V

Distribution of Benefits

 

5.1           Separation
from Service. If the Participant has a Separation from Service for any reason (including, but not limited to, due to death
or Disability or following a Change in Control) other than for Cause, the Participant (or the Participant’s Beneficiary)
would be entitled to a lump sum cash payment equal to the vested portion of the Participant’s Incentive Benefit Account Balance
as of the date of Separation from Service, with such payment to be made within 30 days following the Participant’s Separation
from Service.

 

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5.2           Termination
for Cause. If the Participant has a Separation from Service due to Cause, the Participant’s entire Incentive Benefit
Account Balance (even if vested) would be forfeited, and the Participant’s participation in this Plan will immediately become
null and void.

 

5.3           Delayed
Distributions for Specified Employees. Notwithstanding anything in the Plan to the contrary, if a Participant is a Specified
Employee and payment of his or her Incentive Benefit 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 Code Section 409A, no payment will be made
during the first six (6) months following the Participant’s Separation from Service. Rather, any payment which would otherwise
be paid to the Participant during such period will be accumulated and paid to the Participant in a lump sum on the first day of
the seventh month following such Separation from Service.

 

ARTICLE VI

Administration

 

6.1           Committee;
Duties. This Plan shall be administered by the Committee. The Committee shall have the sole authority to make, amend, interpret,
and enforce all appropriate rules and regulations for the administration of this Plan and decide or resolve any and all questions,
including interpretations of this Plan, as may arise in connection with the Plan. A majority vote of the Committee members shall
control any decision.

 

6.2           Agents.
The Committee may, from time to time, employ other agents and delegate to them such administrative duties as it sees fit, and may
from time to time consult with counsel who may be counsel to the Bank.

 

6.3           Binding
Effect of Decisions. The decision or action of the Committee in respect to any question arising out of or in connection
with the administration, interpretation and application of the Plan and the rules of regulations promulgated hereunder shall be
final, conclusive and binding upon all persons having any interest in the Plan.

 

6.4           Indemnity
of Committee. The Bank shall indemnify and hold harmless the members of the Committee against any and all claims, loss,
damage, expense or liability arising from any action or failure to act with respect to this Plan, except in the case of gross negligence
or willful misconduct.

 

ARTICLE VII

Claims Procedures

 

7.1           Claim.
Any person claiming a benefit, requesting an interpretation or ruling under the Plan, or requesting information under the Plan
shall present the request in writing to the Committee, which shall respond in writing within 30 days.

 

7.2           Denial
of Claim. If the claim or request is denied, the written notice of denial shall state:

 

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(a)          The
reasons for denial, with specific reference to the Plan provisions on which the denial is based.

 

(b)          A
description of any additional material or information required and an explanation of why it is necessary.

 

(c)          An
explanation of the Plan’s claim review procedure.

 

7.3           Review
of Claim. Any person whose claim or request is denied or who has not received a response within 30 days may request review
by notice given in writing to the Committee. The claim or request shall be reviewed by the Committee who may, but shall not be
required to, grant the claimant a hearing. On review, the claimant may have representation, examine pertinent documents, and submit
issues and comments in writing.

 

7.4           Final
Decision. The decision on review will normally be made within 60 days. If an extension of time is required for a hearing
or other special circumstances, the claimant shall be notified and the time limit shall be 120 days. The decision will be in writing
and state the reasons and the relevant Plan provisions.

 

ARTICLE VIII

Amendment and Termination of Plan

 

8.1           Amendment.
Notwithstanding anything herein contained to the contrary, the Board reserves the exclusive right to freeze or to amend the Plan
at any time, provided that no amendment to the Plan shall be effective to decrease or to restrict the amount accrued to the Participant
as of the date of such amendment.

 

8.2           Complete
Termination. The Board may elect to terminate the Plan at any time, provided that the termination of the Plan shall not
decrease or restrict the amount accrued to the Participant as of the date of such termination. Notwithstanding the foregoing, in
event the Bank desires to pay out to the Participant his or her entire Incentive Benefit Account Balance in connection with the
termination of the Plan, the Bank must do so in accordance with the following circumstances and conditions to comply with Code
Section 409A:

 

(a)          The
Board 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 may terminate the Plan by irrevocable action within the 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 Bank 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.

 

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(c)          The
Board may terminate the Plan provided that: (i) the termination and liquidation does not occur proximate to a downturn in the financial
health of the Bank; (ii) all arrangements sponsored by the Bank 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 Bank 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.

 

ARTICLE IX

Miscellaneous

 

9.1           Non-assignability.
Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage
or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or
any part thereof, which are, and all rights to which are, expressly declared to be unassignable and non-transferable. No part of
the amounts payable shall, prior to actual payment, be subject to seizure or sequestration for the payment of any debts, judgments,
alimony or separate maintenance owed by a Participant or any other person, nor be transferable by operation of law in the event
of a Participant’s or any other person’s bankruptcy or insolvency.

 

9.2           Not
a Contract of Employment. The terms and conditions of this Plan shall not be deemed to constitute a contract of employment
between the Bank and the Participant, and the Participant (or his Beneficiary) shall have no rights against the Bank except as
may otherwise be specifically provided herein. Moreover, nothing in this Plan shall be deemed to give a Participant the right to
be retained in the service of the Bank or to interfere with the right of the Bank to discipline or discharge him or her at any
time.

 

9.3           Payment
to Participant, Legal Representative or Beneficiary. Any payment to any Participant or the legal representative, Beneficiary,
or to any guardian or committee appointed for such Participant or Beneficiary in accordance with the provisions hereof, shall,
to the extent thereof, be in full satisfaction of all claims hereunder against the Bank, which may require the Participant, legal
representative, Beneficiary, guardian or committee, as a condition precedent to such payment, to execute a receipt and release
thereof in such form as shall be determined by the Bank.

 

9.4           Governing
Laws. The provisions of this Plan shall be construed and interpreted according to the laws of the State of New York, unless
preempted by federal law. The Participant agrees that all demands, claims, actions, causes or action, suits, proceedings and litigation
between and among the Bank and any other party related to this Plan will be filed, tried and litigated only in a court located
in Dutchess County in the State of New York, unless another venue is required by applicable law.

 

9.5           Validity.
In case any provision of this Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect
the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal and invalid provision had never been
inserted herein.

 

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9.6        Notice.
Any notice or filing required or permitted to be given to the Committee under the Plan shall be sufficient if in writing and hand
delivered, or sent by registered or certified mail, to any member of the Committee or the Secretary of the Bank. Such notice shall
be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt
for registration or certification.

 

9.7           Successors.
The provisions of this Plan shall bind and inure to the benefit of the Bank and its successors and assigns. The term “successors”
as used herein shall include any 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 Bank, and successors of any such corporation or other
business entity.

 

9.8           12
U.S.C. § 1828(k). Any payments made to the Participant pursuant to this Plan or otherwise are subject to and conditioned
upon compliance with 12 U.S.C. § 1828(k) and 12 C.F.R. Part 359 Golden Parachute and Indemnification Payments or any
other rules and regulations promulgated thereunder.

 

9.9           Entire
Agreement. This Plan and the STIP sets forth the entire understanding of the parties hereto with respect to any Deferred
Bonus to be provided by the Bank, and any previous agreements or understandings between the parties hereto regarding the subject
matter hereof are superseded by this Plan.

 

[Signature Page to Follow]

 

    	 	8	 

     

    

 

IN WITNESS WHEREOF,
the Bank has caused this Plan to be executed on the day and date written below.

 

	 	 	RHINEBECK BANK
	 	 	 	 
	Date:	August
    28, 2018	 	By:	/s/ Michael J. Quinn

 

    	 	9	 

     

    

 

EXHIBIT A

 

RHINEBECK BANK

EXECUTIVE LONG-TERM INCENTIVE AND RETENTION
PLAN

 

BENEFICIARY DESIGNATION FORM

 

	Print Name: 	 

 

I hereby designate the following Beneficiary(ies)
to receive my Incentive Benefit Account Balance under the Plan, following my death:

 

PRIMARY BENEFICIARY:

 

	Name:	 	% of Benefit:	 
	 	 	 	 
	Name:	 	% of Benefit:	 
	 	 	 	 
	Name:	 	% of Benefit:	 

 

SECONDARY BENEFICIARY (if all Primary Beneficiaries pre-decease
the Participant):

 

	Name:	 	% of Benefit:	 
	 	 	 	 
	Name:	 	% of Benefit:	 
	 	 	 	 
	Name:	 	% of Benefit:	 

 

This Beneficiary Designation
hereby revokes any prior Beneficiary Designation which may have been in effect. This Beneficiary Designation is revocable.

 

	 	 	 
	Date	 	Participant
	 	 	 
	 	 	 
	Date	 	Witness

 

    	 	10

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