Document:

Change In Control Severance Payment Agreement

EXHIBIT 10.1

CHANGE IN CONTROL

SEVERANCE PAYMENT AGREEMENT

This Agreement, made
and entered into as of the 18th day of August, 2003, by and between VAIL BANKS, INC., a Colorado corporation (the
“Company”), and DAN E. GODEC (hereinafter called the “Executive”),

W I T N E S S E T H:

WHEREAS, the Executive
is currently employed by the Company and certain of its subsidiaries in various
capacities and is rendering valuable services to the Company and such
subsidiaries; and

WHEREAS, the Company desires to retain the Executive and is aware that the possibility of
a Change in Control of the Company (as defined in Section 3) might impede the accomplishment of this end; and

WHEREAS, the Company believes that the execution of this Agreement will further its aim in
retaining the Executive during an actual or attempted Change in Control and will tend to assure fair treatment of executives in the
event of a Change in Control;

NOW, THEREFORE, for and in consideration of the premises and of the Executive’s
continuation in his present employment with the Company, the parties hereto agree as follows:

1..        Duties and Status of
Executive. 

The Executive shall continue to perform such duties and responsibilities as shall be
assigned to him by E. B. Chester or the Board of Directors of the Company.  The Executive shall devote his working time and
attention to the discharge of his duties with the Company and its subsidiaries.  In addition to the compensation and other
benefits provided the Executive by the Company, the Executive shall have the additional benefits provided by this
Agreement.

2.         Term.

(a)       Initial Term.  The term of this
Agreement shall initially be a fixed period of two years that expires on the second anniversary of the date of this Agreement and
may be extended as provided in subsection (b) below.

(b)       Extension.  The term of this Agreement
shall be extended automatically on the first anniversary and on each subsequent anniversary of the date of this Agreement (each
such anniversary being referred to as an “Extension Date”) for an additional one year period so that the Agreement then
expires on the second anniversary of the applicable Extension Date; provided that

(i)        the then current term of this Agreement will
not be extended on any Extension Date if,

(A)      not later than 90 days before such Extension Date the
Company gives the Executive written notice that it does not wish to extend the term, or

(B)      before such Extension Date the Company terminates the
employment of the Executive for Cause (as defined in Section 4(b))  and

(ii)       whether or not the Company has given notice to
the Executive pursuant to clause (i) (A) above that it does not wish to extend the term of this Agreement, if a Change in Control
occurs during the initial term of this Agreement, or any extension thereof, the term of this Agreement shall not expire sooner than
the third anniversary of the date of such Change in Control.

3.         Change in Control.  For the
purposes of this Agreement, a “Change in Control” shall be deemed to have occurred in the event of:

(a)       an acquisition by any Person
of Beneficial Ownership of the Shares of the Company then outstanding (the "Company Common Stock Outstanding")
or the voting securities of the Company then outstanding entitled to vote
generally in the election of directors (the "Company Voting Securities
Outstanding"), if such acquisition of Beneficial Ownership results in the Person
beneficially owning (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) twenty-five percent (25%) or more of
the Company Common Stock Outstanding or twenty-five percent (25%) or more of the
combined voting power of the Company Voting Securities Outstanding; provided,
that immediately prior to such acquisition such Person was not a direct or
indirect Beneficial Owner of twenty-five percent (25%) or more of the Company
Common Stock Outstanding or twenty-five percent (25%) or more of the combined
voting power of Company Voting Securities Outstanding, as the case may be; or

(b)       the consummation of a
reorganization, merger, consolidation, complete liquidation or dissolution of the Company, the sale or disposition of all or
substantially all of the assets of the Company or similar corporate transaction (in each case referred to in this Section 3 as
a  "Corporate Transaction") or, if consummation of such Corporate Transaction is subject to the consent of any government or
governmental agency, the obtaining of such consent (either explicitly or implicitly); or

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(c)       a change in the composition of
the Board such that the individuals who, as of the date of this Agreement, constitute the Board (such Board shall be hereinafter
referred to as the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, for
purposes of this Section 3 that any individual who becomes a member of the Board subsequent to the date of this Agreement whose
election, or nomination for election by the Company's shareholders, was approved by a vote of at least a majority of those
individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this
proviso) shall be considered as though such individual were a member of the Incumbent Board; but, provided, further, that any such
individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms
are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act, including any successor to such Rule), or other
actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board, shall not be so

considered as a member of the Incumbent Board.

(d)       Notwithstanding the provisions
set forth in subsections (a) and (b), the following shall not constitute a Change in Control for purposes of this Agreement: 
(1) any acquisition of Shares by, or consummation of a Corporate Transaction with, any Subsidiary or any employee benefit plan (or
related trust) sponsored or maintained by the Company or an affiliate; or (2) any acquisition of Shares, or consummation of a
Corporate Transaction, following which more than fifty percent (50%) of, respectively, the shares then outstanding of common stock
of the corporation resulting from such acquisition or Corporate Transaction and the combined voting power of the voting securities
then outstanding of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly
or indirectly, by all or substantially all of the individuals and entities who were Beneficial Owners, respectively, of the Company
Common Stock Outstanding and Company Voting Securities Outstanding immediately prior to such acquisition or Corporate Transaction
in substantially the same proportions as their ownership, immediately prior to such acquisition or Corporate Transaction, of the
Company Common Stock Outstanding and Company Voting Securities Outstanding, as the case may be.

4.         Change in Control Payments And
Severance Payments.

(a)       If a Change in Control of the Company occurs, the
Company shall pay or provide to Executive (subject to withholding of applicable taxes) within ten (10) days after the date of the
Change in Control:

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(i)        a lump sum amount equal to the sum of (A)
200% of his full base annual salary at the rate in effect on the date prior to the date of the Change in Control, plus (B) 200% of
the incentive payment Executive would have received for the year during which the Change in Control occurs under the
Company’s annual incentive plan, assuming the target level of performance had been met for such year;

(ii)       an amount equal to the product of (aa) the annual
incentive bonus that would be paid or payable to the Executive for the year of termination under the Company’s annual
incentive plan, assuming the target level of performance had been met for such year, multiplied by (bb) a fraction of which the
numerator is the number of weeks that have elapsed in the then current year through the date of the Change in Control and the
denominator is 52 (and Executive’s participation in such annual incentive plan for the year of the Change in Control shall be
terminated);

(iii)    
  the amount of any annual or long-term bonus with respect to
any year that has then ended which has or would have been earned and been paid to the Executive under any annual or long-term bonus
plan then in effect but which has not yet been paid to him;

(iv)       an additional contribution to any deferred compensation
or savings plan (whether qualified or non-qualified) in which the Executive is participating, of the maximum amount which the
Company is permitted to contribute, based on the payments made pursuant to paragraphs (i), (ii) and (iii) above, provided that if
the contributions on the Executive’s behalf to the plans covered by this paragraph (iv) are not permitted under the terms of
one or more of such plans, the Company shall pay Executive in a lump sum, within 10 days, the present value of the benefits that
cannot be provided pursuant to such plan; and

(v) accelerate to the date of the Change in Control the vesting, exercisability,
transferability and payment date of all outstanding stock options, restricted stock and any other share awards held by
Executive.

             (b)          If a Change
in Control of the Company occurs and, subsequently on or before the third anniversary of such Change in Control, the
Executive’s employment with the Company is terminated (i) by the Company for any reason whatsoever other than for Cause (as
defined in subsection (c) below) or the Executive’s death or Disability (as defined in
subsection (d) below),  or (ii)
by the Executive for Good Reason (as defined in subsection (e) below), the Company shall:

(A)      pay to the Executive within 30 days after the date of
termination, an amount equal to the sum of:

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(I)        his full base salary through the date of
termination at the rate in effect at the time notice of termination (as provided for in Section 5 below) is given, plus

  (II)      an amount equal to the product of (aa) the
number of unused personal days accrued by the Executive through the date of termination multiplied by (bb) a fraction the numerator
of which is the Executive’s base salary and the denominator of which is 250;

  (B)     maintain in full force and effect for the benefit of
the Executive and his dependents for a period of two years from the date of termination (or, if shorter, the period until Executive
obtains other employment and becomes actually covered by a plan providing the specific benefit hereinafter described) all employee
life, medical, dental, and vision coverages in which the Executive is participating at the time of the Executive’s
termination; provided, that if the Executive’s continued participation is not permitted under the general terms of such
plans, the Company shall arrange to provide him with substantially similar benefits and the Company shall pay the cost of such
benefits; provided further, Executive will be required to pay the “employee portion” of any costs of such coverages in
the same amount as required for active executive employees of the Company;

(c)       For the purposes of this Section 4,
“Cause” means:

(i)        the conviction of the Executive of, or a
plea of guilty or nolo contendere by the Executive to, any felony involving conduct on the part of the Executive that renders him
unfit for the performance of his duties to the Company, or its subsidiaries and affiliates, or

(ii)       any willful misconduct on the part of the
Executive in the performance of his duties that is materially harmful to the Company or its subsidiaries or affiliates, monetarily
or otherwise.

For the purpose of this
subsection (c), no act, or failure to act, on the Executive’s part shall be considered “willful” unless done, or
omitted to be done, by him not in good faith and without reasonable belief that his action or omission was in the best interest of
the Company.  Notwithstanding the foregoing, the Executive shall not be deemed to have been terminated for Cause unless and
until there shall have been delivered to him a copy of a resolution duly adopted by the affirmative vote of not less than three
quarters of the entire membership of the Board of Directors of the Company at a meeting of the Board called and held for the
purpose (after reasonable notice to him and an opportunity for him, together with his counsel, to be heard before the Board),
finding that in the good faith opinion of the Board he was guilty of conduct set forth above in clauses (i) or (ii) above and
specifying the particulars thereof in detail.

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(d)       For the purpose of this Section 4,
“Disability” shall be deemed to exist if, as a result of the Executive’s incapacity due to physical or mental
illness, he shall have been absent from his duties with the Company on a full‐time basis for 150 consecutive calendar days
and within 30 days after he has received notice of termination pursuant to Section 5 he has not returned to the performance of his
duties on a full‐time basis.

(e)       For the purposes of this Section 4, “Good
Reason” shall be deemed to exist under any of the following circumstances, but only to the extent that they occur within the
thirty-six month period immediately after a Change in Control:

(i)        The assignment to the Executive of any
duties inconsistent with his positions, duties, responsibilities and status with the Company, its subsidiaries and affiliates
immediately prior to a Change in Control, or a change in his reporting responsibilities, titles or offices which were in effect
immediately prior to a Change in Control, or any removal of him from or any failure to re‐elect him to any of such positions,
except in connection with the termination of his employment by the Company for Cause or as a result of his death or Disability or
termination by him other than for Good Reason.

(ii)       A reduction by the Company in the
Executive’s base salary as in effect on the date hereof or as the same may be increased from time to time, or failure to give
him annual salary increases consistent with performance review ratings as compared with other employees of the same or similar
rank.

(iii)     A failure by the Company to continue giving the Executive
bonuses comparable to the amount of bonuses given to him prior to the Change in Control.

(iv)      The Company’s requiring that the Executive be
based anywhere other than the Company’s offices in the Eagle County, Colorado area, except for required travel on Company
business to an extent substantially consistent with his present business travel obligations, or in the event that the Executive
consents to any such relocations, the failure by the Company to pay (or reimburse him for) all reasonable moving expenses incurred
by him.

(v)       The failure by the Company to continue in full
force and effect any benefit, retirement, savings or compensation plan or any employee life, accident, disability, medical, dental,
vision or other employee welfare benefit plan in which the Executive is participating at the time of a Change in Control of the
Company, the taking of any action by the Company which would adversely affect his participation in or materially reduce his
benefits under any of such plans or deprive him of any material fringe benefit or perquisite enjoyed by him at the time of the
Change in Control, or the failure by the Company to provide him with the number of paid personal days to which he is then entitled
in accordance with the normal personal day policy in effect on the date hereof.

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(vi)      Any breach by the Company of its obligations under this
Agreement or any purported termination by the Company of his employment which is not effected pursuant to a notice of termination
satisfying the requirements of Section 5 (and if applicable Section 4(c)); and for purposes of this Agreement, no such purported
termination shall be effective.

(f)        The Company agrees that if the
Executive’s employment is terminated and he is entitled to benefits under Section 4(a) and/or Section 4(b), he shall not be
required to mitigate damages by seeking other employment, nor shall any amount he earns after his termination of employment reduce
the amount payable by the Company under this Agreement (except as provided in paragraph (B) above relating to benefit changes upon
subsequent employment).

(g)       (i)       
Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined (as hereafter provided) that any
payment or distribution to or for the Executive, whether paid or payable or distributed or distributable pursuant to the terms of
this Agreement or  pursuant to or by reason of any other agreement, policy, plan, program or arrangement (including, without
limitation, any employment agreement, stock plan or salary continuation agreement), or similar right (a “Payment”),
would be subject to the excise tax imposed by Section 4999 of the Code (or any successor provisions thereto), or any interest or
penalties with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereafter
collectively referred to as the “Excise Tax”), then the Executive shall be entitled to receive an additional payment or
payments (a “Gross-Up Payment”) from the Company.  The total amount of the Gross-Up Payment shall be an amount
such that, after payment by (or on behalf of) the Executive of any Excise Tax and all federal, state and other taxes (including any
interest or penalties imposed with respect to such taxes) imposed upon the Gross-Up Payment, the remaining amount of the Gross-Up
Payment is equal to the Excise Tax imposed upon the Payments.  For purposes of clarity, the amount of the Gross-Up Payment
shall be that amount necessary to pay the Excise Tax in full and all taxes assessed upon the Gross-Up Payment.

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(ii)       An initial determination as to whether a Gross-Up
Payment is required pursuant to this subsection (g) and the amount of such Gross-Up Payment shall be made by an accounting firm
selected by the Company and reasonably acceptable to the Executive (the “Accounting Firm”).  The
Accounting Firm shall provide its determination (the “Determination”), together with detailed supporting calculations
and documentation to the Company and the Executive as promptly as practicable after such calculation is requested by the Company or
by the Executive, and if the Accounting Firm determines that no Excise Tax is payable by the Executive with respect to a Payment or
Payments, it shall furnish the Executive with an opinion reasonably acceptable to the Executive that no Excise Tax will be imposed
with respect to any such Payment or Payments.  Within fifteen (15) days of the delivery of the Determination to the Executive,
the Executive shall have the right to dispute the Determination (the “Dispute”).  The Gross-Up Payment, if any, as
determined pursuant to this Section 4 shall be paid by the Company to the Executive within fifteen (15)  days of the receipt
of the Accounting Firm’s Determination.  The existence of the Dispute shall not in any way affect the right of the
Executive to receive the Gross-Up Payment in accordance with the Determination.  If there is no Dispute, the Determination
shall be binding, final and conclusive upon the Company and the Executive subject to the application of subsection (iii)
below.

(iii)     As a result of the uncertainty in the application of
Sections 4999 and 280G of the Code, it is possible that a Gross-Up Payment (or a portion thereof) will be paid which should not
have been paid (an “Excess Payment”) or a Gross-Up Payment (or a portion thereof) which should have been paid will not
have been paid (an “Underpayment”).  An Underpayment shall be deemed to have occurred upon the earliest to occur
of the following events:  (1) upon notice (formal or informal) to the Executive from any governmental taxing authority that
the tax liability of the Executive (whether in respect of the then current taxable year of the Executive or in respect of any prior
taxable year of the Executive) may be increased by reason of the imposition of the Excise Tax on a Payment or Payments with respect
to which the Company has failed to make a sufficient Gross-Up Payment, (2) upon a determination by a court, (3) by reason of a
determination by the Company (which shall include the position taken by the Company, or its consolidated group, on its federal
income tax return), or (4) upon the resolution to the satisfaction of the Executive of the Dispute.  If any Underpayment
occurs, the Executive shall promptly notify the Company and the Company shall pay to the Executive within fifteen (15) days of the
date the Underpayment is deemed to have occurred under (1), (2), (3) or (4) above, but in no event less than five days prior to the
date on which the applicable government taxing authority has requested payment, an additional Gross-Up Payment equal to the amount
of the Underpayment plus any interest and penalties imposed on the Underpayment. 

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An
Excess Payment shall be deemed to have occurred upon a “Final Determination” (as
hereinafter defined) that the Excise Tax shall not be imposed upon a Payment or
Payments (or portion of a Payment) with respect to which the Executive had
previously received a Gross-Up Payment.  A Final Determination shall be
deemed to have occurred when the Executive has received from the applicable
government taxing authority a refund of taxes or other reduction in his tax
liability by reason of the Excess Payment and upon either (1) the date a
determination is made by, or an agreement is entered into with, the applicable
governmental taxable authority which finally and conclusively binds the
Executive and such taxing authority, or in the event that a claim is brought
before a court of competent jurisdiction, the date upon which a final
determination has been made by such court and either all appeals have been taken
and finally resolved or the time for all appeals has expired, or (2) the statute
of limitations with respect to the Executive’s applicable tax return has
expired.  If an Excess Payment is determined to have been made, the amount
of the Excess Payment shall be treated as a loan by the Company to the Executive
and the Executive shall pay to the Company within 15 days following demand 
(but not less than 30 days after the determination of such Excess Payment) the
amount of the Excess Payment plus interest at an annual rate equal to the rate
provided for in Section 1274(b)(2)(B) of the Code from the date the Gross-Up
Payment (to which the Excess Payment relates) was paid to the Executive until
the date of repayment to the Company.

(iv)      Notwithstanding anything contained in this Agreement to
the contrary, in the event that, according to the Determination, an Excise Tax will be imposed on any Payment or Payments, the
Company shall pay to the applicable government taxing authorities as Excise Tax withholding, the amount of any Excise Tax that the
Company has actually withheld from the Payment or Payments; provided that the Company’s payment of withheld Excise Tax shall
not change the Company’s obligation to pay the Gross-Up Payment required under this subsection (g).

(v)       The Executive and the Company shall each provide
the Accounting Firm access to and copies of any books, records and documents in the possession of the Company or the Executive, as
the case may be, reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting Firm in connection with
the preparation and issuance of the Determination contemplated by subsection (ii) hereof.

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(vi)      The fees and expenses of the Accounting Firm for its
services in connection with the determinations and calculations contemplated by subsection (ii) shall be paid by the
Company.

5.         Notice of Termination.  Any
termination by the Company or by the Executive of the Executive’s employment by the Company shall he communicated by a
written notice of termination to the other party, and shall specify the provision of this Agreement relied upon and shall set forth
in reasonable detail the circumstances claimed to provide a basis for termination. The date of termination shall be the date on
which the notice of termination is delivered if by the Executive or 30 days after the date of the notice of termination if given by
the Company.

6.         Litigation Expenses; Indemnification
and Insurance. 

(a)       The Company shall pay all reasonable legal fees and expenses incurred by the Executive
as a result of his seeking to obtain or enforce any right or benefit provided by this Agreement, promptly and from time to time at
his request as such fees and expenses are incurred, regardless of whether such rights are pursued through settlement discussions,
mediation, arbitration, litigation or otherwise.

(b)       Unless the Executive is terminated for Cause, at
all times after a Change of Control, the Company shall continue to provide for Executive the indemnification provisions contained
in the Company’s by-laws and shall continue to maintain for the benefit of the Executive such policies of liability
insurance, providing protection to him as an officer, director, agent or employee of the Company and its subsidiaries, as may from
time to time be purchased by the Company for officers and directors generally as authorized by or in furtherance of the
indemnification provisions contained in the Company’s by-laws.  Unless the Executive is terminated for Cause, neither
the insurance nor the Executive’s right to indemnification thereunder may be canceled by the Company without his permission
for a period of five years following the date of termination under this Agreement; provided, however, that the Company may obtain a
substitute insurance policy as long as the rights of indemnity to the Executive are at least equivalent to the most favorable
rights provided under the policies in effect immediately prior to the date of a Change of Control.

7.         Assignment; Successors in
Interest.

(a)       General.  Except with the prior
written consent of the Executive, no assignment by operation of law or otherwise by the Company of any of its rights and
obligations under this Agreement may be made other than to an entity which is a successor to all or a substantial portion of the
business of the Company (but then only if such entity assumes by operation of law or by specific assumption executed by the
transferee and delivered to the Executive all obligations and liabilities of the Company under this Agreement); no transfer by
operation of law or otherwise by the Company of all or a substantial part of its business or assets shall be made unless the
obligations and liabilities of the Company under this Agreement are assumed in connection with such transfer either by operation of
law or by specific assumption executed by the transferee.  In such event, the Company shall remain liable for the performance
of all of its obligations under this Agreement (which liability shall be a primary obligation for full and prompt performance
rather than a secondary guarantee of collectibility of damages).  Except for any transfer or assignment of rights under this
Agreement, in whole or in part, upon the death of the Executive to his heirs, devisees, legatees or beneficiaries or except with
the prior written consent of the Company, no assignment or transfer by operation of law or otherwise may be made by the Executive
of any of his rights under this Agreement.

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(b)       Binding Nature.  This Agreement shall
be binding upon the parties to this Agreement and their respective legal representatives, heirs, devisees, legatees, beneficiaries
and successors and assigns; shall inure to the benefit of the parties to this Agreement and their respective permitted legal
representatives, heirs, devisees, legatees, beneficiaries and other permitted successors and assigns (and to or for the benefit of
no other person or entity, whether an employee or otherwise, whatsoever); and any reference to a party to this Agreement shall also
be a reference to a permitted successor or assign.

8.         Miscellaneous.

(a)       The failure of any party to this Agreement at any
time or times to require performance of any provision of this Agreement shall in no manner affect the right to enforce the
same.  No waiver by any party to this Agreement of any provision (or of a breach of any provision) of this Agreement, whether
by conduct or otherwise, in any one or more instances shall be deemed or construed either as a further or continuing waiver of any
such provision or breach or as a waiver of any other provision (or of a breach of any other provision) of this
Agreement.

(b)       Wherever possible each provision of this Agreement
shall be interpreted in such manner as to be effective and valid but if any one or more of the provisions of this Agreement shall
be invalid, illegal or unenforceable in any respect for any reason, the validity, legality or enforceability of any such provisions
in every other respect and of the remaining provisions of this Agreement shall not be impaired.

(c)       This Agreement shall be governed by and
interpreted in accordance with the laws of the State of Colorado (without giving effect to any choice of law
provisions).

(d)       This Agreement may only be amended by a written
instrument signed by the parties hereto which makes specific reference to the Agreement.

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            IN WITNESS WHEREOF, the
Company has caused this Agreement to be executed by its duly authorized officer and the Executive has executed this Agreement as of
the date and year first written above.

 

	 	
VAIL BANKS, INC.

 

By:  /s/ E.B.
Chester                                      

	 	
  

EXECUTIVE

 

/s/  Dan E.
Godec                                           

Name:  DAN E. GODECChange In Control Severance Payment Agreement

EXHIBIT 10.2

 

CHANGE IN CONTROL

SEVERANCE PAYMENT AGREEMENT

This Agreement, made and entered into as of the 18th day of August, 2003, by
and between VAIL BANKS, INC., a Colorado corporation (the “Company”), and GARY S. JUDD (hereinafter called the
“Executive”),

W I T N E S S E T H:

WHEREAS, the Executive is currently employed by the Company and certain of its
subsidiaries in various capacities and is rendering valuable services to the Company and such subsidiaries; and

WHEREAS, the Company desires to retain the Executive and is aware that the possibility of
a Change in Control of the Company (as defined in Section 3) might impede the accomplishment of this end; and

WHEREAS, the Company believes that the execution of this Agreement will further its aim in
retaining the Executive during an actual or attempted Change in Control and will tend to assure fair treatment of executives in the
event of a Change in Control;

NOW, THEREFORE, for and in consideration of the premises and of the Executive’s
continuation in his present employment with the Company, the parties hereto agree as follows:

1.         Duties and Status of
Executive. 

The Executive shall continue to perform such duties and responsibilities as shall be
assigned to him by E. B. Chester or the Board of Directors of the Company.  The Executive shall devote his working time and
attention to the discharge of his duties with the Company and its subsidiaries.  In addition to the compensation and other
benefits provided the Executive by the Company, the Executive shall have the additional benefits provided by this
Agreement.

2.         Term.

(a)       Initial Term.  The term of this
Agreement shall initially be a fixed period of two years that expires on the second anniversary of the date of this Agreement and
may be extended as provided in subsection (b) below.

(b)       Extension.  The term of this Agreement
shall be extended automatically on the first anniversary and on each subsequent anniversary of the date of this Agreement (each
such anniversary being referred to as an “Extension Date”) for an additional one year period so that the Agreement then
expires on the second anniversary of the applicable Extension Date; provided that

(i)        the then current term of this Agreement will
not be extended on any Extension Date if,

(A)      not later than 90 days before such Extension Date the
Company gives the Executive written notice that it does not wish to extend the term, or

(B)      before such Extension Date the Company terminates the
employment of the Executive for Cause (as defined in Section 4(b))  and

(ii)       whether or not the Company has given notice to
the Executive pursuant to clause (i) (A) above that it does not wish to extend the term of this Agreement, if a Change in Control
occurs during the initial term of this Agreement, or any extension thereof, the term of this Agreement shall not expire sooner than
the third anniversary of the date of such Change in Control.

3.         Change in Control.  For the
purposes of this Agreement, a “Change in Control” shall be deemed to have occurred in the event of:

(a)       an acquisition by any Person
of Beneficial Ownership of the Shares of the Company then outstanding (the "Company Common Stock Outstanding") or the voting
securities of the Company then outstanding entitled to vote generally in the election of directors (the "Company Voting Securities
Outstanding"), if such acquisition of Beneficial Ownership results in the Person beneficially owning (within the meaning of Rule
13d-3 promulgated under the Exchange Act) twenty-five percent (25%) or more of the Company Common Stock Outstanding or twenty-five
percent (25%) or more of the combined voting power of the Company Voting Securities Outstanding; provided, that immediately prior
to such acquisition such Person was not a direct or indirect Beneficial Owner of twenty-five percent (25%) or more of the Company
Common Stock Outstanding or twenty-five percent (25%) or more of the combined voting power of Company Voting Securities
Outstanding, as the case may be; or

(b)       the consummation of a
reorganization, merger, consolidation, complete liquidation or dissolution of the Company, the sale or disposition of all or
substantially all of the assets of the Company or similar corporate transaction (in each case referred to in this Section 3 as
a  "Corporate Transaction") or, if consummation of such Corporate Transaction is subject to the consent of any government or
governmental agency, the obtaining of such consent (either explicitly or implicitly); or

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(c)       a change in the composition of
the Board such that the individuals who, as of the date of this Agreement, constitute the Board (such Board shall be hereinafter
referred to as the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, for
purposes of this Section 3 that any individual who becomes a member of the Board subsequent to the date of this Agreement whose
election, or nomination for election by the Company's shareholders, was approved by a vote of at least a majority of those
individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this
proviso) shall be considered as though such individual were a member of the Incumbent Board; but, provided, further, that any such
individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms
are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act, including any successor to such Rule), or other
actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board, shall not be so
considered as a member of the Incumbent Board.

(d)       Notwithstanding the provisions
set forth in subsections (a) and (b), the following shall not constitute a Change in Control for purposes of this Agreement: 
(1) any acquisition of Shares by, or consummation of a Corporate Transaction with, any Subsidiary or any employee benefit plan (or
related trust) sponsored or maintained by the Company or an affiliate; or (2) any acquisition of Shares, or consummation of a
Corporate Transaction, following which more than fifty percent (50%) of, respectively, the shares then outstanding of common stock
of the corporation resulting from such acquisition or Corporate Transaction and the combined voting power of the voting securities
then outstanding of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly
or indirectly, by all or substantially all of the individuals and entities who were Beneficial Owners, respectively, of the Company
Common Stock Outstanding and Company Voting Securities Outstanding immediately prior to such acquisition or Corporate Transaction
in substantially the same proportions as their ownership, immediately prior to such acquisition or Corporate Transaction, of the
Company Common Stock Outstanding and Company Voting Securities Outstanding, as the case may be.

4.         Change in Control Payments And
Severance Payments.

(a)       If a Change in Control of
the Company occurs, the
Company shall pay or provide to Executive (subject to withholding of applicable taxes) within ten (10) days after the date of the
Change in Control:

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(i)        a lump sum amount equal to the sum of (A)
200% of his full base annual salary at the rate in effect on the date prior to the date of the Change in Control, plus (B) 200% of
the incentive payment Executive would have received for the year during which the Change in Control occurs under the
Company’s annual incentive plan, assuming the target level of performance had been met for such year;

(ii)       an amount equal to the product of (aa) the annual
incentive bonus that would be paid or payable to the Executive for the year of termination under the Company’s annual
incentive plan, assuming the target level of performance had been met for such year, multiplied by (bb) a fraction of which the
numerator is the number of weeks that have elapsed in the then current year through the date of the Change in Control and the
denominator is 52 (and Executive’s participation in such annual incentive plan for the year of the Change in Control shall be
terminated);

(iii)     the amount of any annual or long-term bonus with respect to
any year that has then ended which has or would have been earned and been paid to the Executive under any annual or long-term bonus
plan then in effect but which has not yet been paid to him;

(iv)      an additional contribution to any deferred compensation
or savings plan (whether qualified or non-qualified) in which the Executive is participating, of the maximum amount which the
Company is permitted to contribute, based on the payments made pursuant to paragraphs (i), (ii) and (iii) above, provided that if
the contributions on the Executive’s behalf to the plans covered by this paragraph (iv) are not permitted under the terms of
one or more of such plans, the Company shall pay Executive in a lump sum, within 10 days, the present value of the benefits that
cannot be provided pursuant to such plan; and

(v) accelerate to the date of the Change in Control the vesting, exercisability,
transferability and payment date of all outstanding stock options, restricted stock and any other share awards held by
Executive.

(b)        If a Change
in Control of the Company occurs and, subsequently on or before the third anniversary of such Change in Control, the
Executive’s employment with the Company is terminated (i) by the Company for any reason whatsoever other than for Cause (as
defined in subsection (c) below) or the Executive’s death or Disability (as defined in subsection (d) below),  or (ii)
by the Executive for Good Reason (as defined in subsection (e) below), the Company shall:

(A)      pay to the Executive within 30 days after the date of
termination, an amount equal to the sum of:

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(I)        his full base salary through the date of
termination at the rate in effect at the time notice of termination (as provided for in Section 5 below) is given, plus

(II)      an amount equal to the product of (aa) the
number of unused personal days accrued by the Executive through the date of termination multiplied by (bb) a fraction the numerator
of which is the Executive’s base salary and the denominator of which is 250;

  (B)     maintain in full force and effect for the benefit of
the Executive and his dependents for a period of two years from the date of termination (or, if shorter, the period until Executive
obtains other employment and becomes actually covered by a plan providing the specific benefit hereinafter described) all employee
life, medical, dental, and vision coverages in which the Executive is participating at the time of the Executive’s
termination; provided, that if the Executive’s continued participation is not permitted under the general terms of such
plans, the Company shall arrange to provide him with substantially similar benefits and the Company shall pay the cost of such
benefits; provided further, Executive will be required to pay the “employee portion” of any costs of such coverages in
the same amount as required for active executive employees of the Company;

(c)       For the purposes of this Section 4,
“Cause” means:

(i)        the conviction of the Executive of, or a
plea of guilty or nolo contendere by the Executive to, any felony involving conduct on the part of the Executive that renders him
unfit for the performance of his duties to the Company, or its subsidiaries and affiliates, or

(ii)       any willful misconduct on the part of the
Executive in the performance of his duties that is materially harmful to the Company or its subsidiaries or affiliates, monetarily
or otherwise.

For the purpose of this
subsection (c), no act, or failure to act, on the Executive’s part shall be considered “willful” unless done, or
omitted to be done, by him not in good faith and without reasonable belief that his action or omission was in the best interest of
the Company.  Notwithstanding the foregoing, the Executive shall not be deemed to have been terminated for Cause unless and
until there shall have been delivered to him a copy of a resolution duly adopted by the affirmative vote of not less than three
quarters of the entire membership of the Board of Directors of the Company at a meeting of the Board called and held for the
purpose (after reasonable notice to him and an opportunity for him, together with his counsel, to be heard before the Board),
finding that in the good faith opinion of the Board he was guilty of conduct set forth above in clauses (i) or (ii) above and
specifying the particulars thereof in detail.

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(d)       For the purpose of this Section 4,
“Disability” shall be deemed to exist if, as a result of the Executive’s incapacity due to physical or mental
illness, he shall have been absent from his duties with the Company on a full‐time basis for 150 consecutive calendar days
and within 30 days after he has received notice of termination pursuant to Section 5 he has not returned to the performance of his
duties on a full‐time basis.

(e)       For the purposes of this Section 4, “Good
Reason” shall be deemed to exist under any of the following circumstances, but only to the extent that they occur within the
thirty-six month period immediately after a Change in Control:

(i)        The assignment to the Executive of any
duties inconsistent with his positions, duties, responsibilities and status with the Company, its subsidiaries and affiliates
immediately prior to a Change in Control, or a change in his reporting responsibilities, titles or offices which were in effect
immediately prior to a Change in Control, or any removal of him from or any failure to re‐elect him to any of such positions,
except in connection with the termination of his employment by the Company for Cause or as a result of his death or Disability or
termination by him other than for Good Reason.

(ii)       A reduction by the Company in the
Executive’s base salary as in effect on the date hereof or as the same may be increased from time to time, or failure to give
him annual salary increases consistent with performance review ratings as compared with other employees of the same or similar
rank.

(iii)     A failure by the Company to continue giving the Executive
bonuses comparable to the amount of bonuses given to him prior to the Change in Control.

(iv)      The Company’s requiring that the Executive be
based anywhere other than the Company’s offices in the Denver, Colorado area, except for required travel on Company business
to an extent substantially consistent with his present business travel obligations, or in the event that the Executive consents to
any such relocations, the failure by the Company to pay (or reimburse him for) all reasonable moving expenses incurred by
him.

(v)       The failure by the Company to continue in full
force and effect any benefit, retirement, savings or compensation plan or any employee life, accident, disability, medical, dental,
vision or other employee welfare benefit plan in which the Executive is participating at the time of a Change in Control of the
Company, the taking of any action by the Company which would adversely affect his participation in or materially reduce his
benefits under any of such plans or deprive him of any material fringe benefit or perquisite enjoyed by him at the time of the
Change in Control, or the failure by the Company to provide him with the number of paid personal days to which he is then entitled
in accordance with the normal personal day policy in effect on the date hereof.

6

(vi)      Any breach by the Company of its obligations under this
Agreement or any purported termination by the Company of his employment which is not effected pursuant to a notice of termination
satisfying the requirements of Section 5 (and if applicable Section 4(c)); and for purposes of this Agreement, no such purported
termination shall be effective.

(f)        The Company agrees that if the
Executive’s employment is terminated and he is entitled to benefits under Section 4(a) and/or Section 4(b), he shall not be
required to mitigate damages by seeking other employment, nor shall any amount he earns after his termination of employment reduce
the amount payable by the Company under this Agreement (except as provided in paragraph (B) above relating to benefit changes upon
subsequent employment).

(g)       (i)       
Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined (as hereafter provided) that any
payment or distribution to or for the Executive, whether paid or payable or distributed or distributable pursuant to the terms of
this Agreement or  pursuant to or by reason of any other agreement, policy, plan, program or arrangement (including, without
limitation, any employment agreement, stock plan or salary continuation agreement), or similar right (a “Payment”),
would be subject to the excise tax imposed by Section 4999 of the Code (or any successor provisions thereto), or any interest or
penalties with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereafter
collectively referred to as the “Excise Tax”), then the Executive shall be entitled to receive an additional payment or
payments (a “Gross-Up Payment”) from the Company.  The total amount of the Gross-Up Payment shall be an amount
such that, after payment by (or on behalf of) the Executive of any Excise Tax and all federal, state and other taxes (including any
interest or penalties imposed with respect to such taxes) imposed upon the Gross-Up Payment, the remaining amount of the Gross-Up
Payment is equal to the Excise Tax imposed upon the Payments.  For purposes of clarity, the amount of the Gross-Up Payment
shall be that amount necessary to pay the Excise Tax in full and all taxes assessed upon the Gross-Up Payment.

7

(ii)       An initial determination as to whether a Gross-Up
Payment is required pursuant to this subsection (g) and the amount of such Gross-Up Payment shall be made by an accounting firm
selected by the Company and reasonably acceptable to the Executive (the “Accounting Firm”).  The
Accounting Firm shall provide its determination (the “Determination”), together with detailed supporting calculations
and documentation to the Company and the Executive as promptly as practicable after such calculation is requested by the Company or
by the Executive, and if the Accounting Firm determines that no Excise Tax is payable by the Executive with respect to a Payment or
Payments, it shall furnish the Executive with an opinion reasonably acceptable to the Executive that no Excise Tax will be imposed
with respect to any such Payment or Payments.  Within fifteen (15) days of the delivery of the Determination to the Executive,
the Executive shall have the right to dispute the Determination (the “Dispute”).  The Gross-Up Payment, if any, as
determined pursuant to this Section 4 shall be paid by the Company to the Executive within fifteen (15)  days of the receipt
of the Accounting Firm’s Determination.  The existence of the Dispute shall not in any way affect the right of the
Executive to receive the Gross-Up Payment in accordance with the Determination.  If there is no Dispute, the Determination
shall be binding, final and conclusive upon the Company and the Executive subject to the application of subsection (iii)
below.

(iii)     As a result of the uncertainty in the application of
Sections 4999 and 280G of the Code, it is possible that a Gross-Up Payment (or a portion thereof) will be paid which should not
have been paid (an “Excess Payment”) or a Gross-Up Payment (or a portion thereof) which should have been paid will not
have been paid (an “Underpayment”).  An Underpayment shall be deemed to have occurred upon the earliest to occur
of the following events:  (1) upon notice (formal or informal) to the Executive from any governmental taxing authority that
the tax liability of the Executive (whether in respect of the then current taxable year of the Executive or in respect of any prior
taxable year of the Executive) may be increased by reason of the imposition of the Excise Tax on a Payment or Payments with respect
to which the Company has failed to make a sufficient Gross-Up Payment, (2) upon a determination by a court, (3) by reason of a
determination by the Company (which shall include the position taken by the Company, or its consolidated group, on its federal
income tax return), or (4) upon the resolution to the satisfaction of the Executive of the Dispute.  If any Underpayment
occurs, the Executive shall promptly notify the Company and the Company shall pay to the Executive within fifteen (15) days of the
date the Underpayment is deemed to have occurred under (1), (2), (3) or (4) above, but in no event less than five days prior to the
date on which the applicable government taxing authority has requested payment, an additional Gross-Up Payment equal to the amount
of the Underpayment plus any interest and penalties imposed on the Underpayment. 

8

An
Excess Payment shall be deemed to have occurred upon a “Final Determination” (as
hereinafter defined) that the Excise Tax shall not be imposed upon a Payment or
Payments (or portion of a Payment) with respect to which the Executive had
previously received a Gross-Up Payment.  A Final Determination shall be
deemed to have occurred when the Executive has received from the applicable
government taxing authority a refund of taxes or other reduction in his tax
liability by reason of the Excess Payment and upon either (1) the date a
determination is made by, or an agreement is entered into with, the applicable
governmental taxable authority which finally and conclusively binds the
Executive and such taxing authority, or in the event that a claim is brought
before a court of competent jurisdiction, the date upon which a final
determination has been made by such court and either all appeals have been taken
and finally resolved or the time for all appeals has expired, or (2) the statute
of limitations with respect to the Executive’s applicable tax return has
expired.  If an Excess Payment is determined to have been made, the amount
of the Excess Payment shall be treated as a loan by the Company to the Executive
and the Executive shall pay to the Company within 15 days following demand 
(but not less than 30 days after the determination of such Excess Payment) the
amount of the Excess Payment plus interest at an annual rate equal to the rate
provided for in Section 1274(b)(2)(B) of the Code from the date the Gross-Up
Payment (to which the Excess Payment relates) was paid to the Executive until
the date of repayment to the Company.

(iv)      Notwithstanding anything contained in this Agreement to
the contrary, in the event that, according to the Determination, an Excise Tax will be imposed on any Payment or Payments, the
Company shall pay to the applicable government taxing authorities as Excise Tax withholding, the amount of any Excise Tax that the
Company has actually withheld from the Payment or Payments; provided that the Company’s payment of withheld Excise Tax shall
not change the Company’s obligation to pay the Gross-Up Payment required under this subsection (g).

(v)       The Executive and the Company shall each provide
the Accounting Firm access to and copies of any books, records and documents in the possession of the Company or the Executive, as
the case may be, reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting Firm in connection with
the preparation and issuance of the Determination contemplated by subsection (ii) hereof.

9

(vi)      The fees and expenses of the Accounting Firm for its
services in connection with the determinations and calculations contemplated by subsection (ii) shall be paid by the
Company.

5.         Notice of Termination.  Any
termination by the Company or by the Executive of the Executive’s employment by the Company shall he communicated by a
written notice of termination to the other party, and shall specify the provision of this Agreement relied upon and shall set forth
in reasonable detail the circumstances claimed to provide a basis for termination. The date of termination shall be the date on
which the notice of termination is delivered if by the Executive or 30 days after the date of the notice of termination if given by
the Company.

6.         Litigation Expenses; Indemnification
and Insurance. 

(a)       The Company shall pay all reasonable legal fees
and expenses incurred by the Executive as a result of his seeking to obtain or enforce any right or benefit provided by this
Agreement, promptly and from time to time at his request as such fees and expenses are incurred, regardless of whether such rights
are pursued through settlement discussions, mediation, arbitration, litigation or otherwise.

(b)       Unless the Executive is terminated for Cause, at
all times after a Change of Control, the Company shall continue to provide for Executive the indemnification provisions contained
in the Company’s by-laws and shall continue to maintain for the benefit of the Executive such policies of liability
insurance, providing protection to him as an officer, director, agent or employee of the Company and its subsidiaries, as may from
time to time be purchased by the Company for officers and directors generally as authorized by or in furtherance of the
indemnification provisions contained in the Company’s by-laws.  Unless the Executive is terminated for Cause, neither
the insurance nor the Executive’s right to indemnification thereunder may be canceled by the Company without his permission
for a period of five years following the date of termination under this Agreement; provided, however, that the Company may obtain a
substitute insurance policy as long as the rights of indemnity to the Executive are at least equivalent to the most favorable
rights provided under the policies in effect immediately prior to the date of a Change of Control.

7.         Assignment; Successors in
Interest.

(a)       General.  Except with the prior
written consent of the Executive, no assignment by operation of law or otherwise by the Company of any of its rights and
obligations under this Agreement may be made other than to an entity which is a successor to all or a substantial portion of the
business of the Company (but then only if such entity assumes by operation of law or by specific assumption executed by the
transferee and delivered to the Executive all obligations and liabilities of the Company under this Agreement); no transfer by
operation of law or otherwise by the Company of all or a substantial part of its business or assets shall be made unless the
obligations and liabilities of the Company under this Agreement are assumed in connection with such transfer either by operation of
law or by specific assumption executed by the transferee.  In such event, the Company shall remain liable for the performance
of all of its obligations under this Agreement (which liability shall be a primary obligation for full and prompt performance
rather than a secondary guarantee of collectibility of damages).  Except for any transfer or assignment of rights under this
Agreement, in whole or in part, upon the death of the Executive to his heirs, devisees, legatees or beneficiaries or except with
the prior written consent of the Company, no assignment or transfer by operation of law or otherwise may be made by the Executive
of any of his rights under this Agreement.

10

(b)       Binding Nature.  This Agreement shall
be binding upon the parties to this Agreement and their respective legal representatives, heirs, devisees, legatees, beneficiaries
and successors and assigns; shall inure to the benefit of the parties to this Agreement and their respective permitted legal
representatives, heirs, devisees, legatees, beneficiaries and other permitted successors and assigns (and to or for the benefit of
no other person or entity, whether an employee or otherwise, whatsoever); and any reference to a party to this Agreement shall also
be a reference to a permitted successor or assign.

8.         Miscellaneous. 

(a)       The failure of any party to this Agreement at any time or times to require performance
of any provision of this Agreement shall in no manner affect the right to enforce the same.  No waiver by any party to this
Agreement of any provision (or of a breach of any provision) of this Agreement, whether by conduct or otherwise, in any one or more
instances shall be deemed or construed either as a further or continuing waiver of any such provision or breach or as a waiver of
any other provision (or of a breach of any other provision) of this Agreement.

(b)       Wherever possible each provision of this Agreement
shall be interpreted in such manner as to be effective and valid but if any one or more of the provisions of this Agreement shall
be invalid, illegal or unenforceable in any respect for any reason, the validity, legality or enforceability of any such provisions
in every other respect and of the remaining provisions of this Agreement shall not be impaired.

(c)       This Agreement shall be governed by and
interpreted in accordance with the laws of the State of Colorado (without giving effect to any choice of law
provisions).

(d)       This Agreement may only be amended by a written
instrument signed by the parties hereto which makes specific reference to the Agreement.

11

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer and the Executive has executed this Agreement as of the date and year first written above.

		
VAIL BANKS, INC.

By:  /s/ E.B.
Chester                                      

		
 

EXECUTIVE

 

/s/ Gary S.
Judd                                              

Name:  GARY S. JUDD

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