Document:

Exhibit 10.15

    
      

    

    Exhibit
      10.15

    Form
      of
      Employment Agreement between NBT Bancorp Inc. and Martin A. Dietrich made as
      of
      January 1, 2005.

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EMPLOYMENT
      AGREEMENT 

    

    This
      EMPLOYMENT AGREEMENT (the "Agreement") made and entered into this first day
      of
      January 2005, by and between MARTIN A. DIETRICH ("Executive") and NBT BANCORP
      INC., a Delaware corporation having its principal office in Norwich, New York
      ("NBTB")

    

    W
      I T N E S S E T H T H A T :

    

    WHEREAS,
      Executive agrees to serve as president and chief executive officer of NBT Bank,
      National Association, a wholly-owned subsidiary of NBTB ("NBT Bank"), as
      president of NBTB from January 1, 2005 to December 31, 2005 and then as
      president and chief executive officer of NBTB as of January 1, 2006. Further,
      Executive will serve as a director of NBT Bank and in addition, as of January
      1,
      2005, will be appointed a director of NBTB and stand for election at the 2005
      Annual Meeting of NBTB; and

    

    WHEREAS,
      NBTB desires to secure the continued employment of Executive, subject to the
      provisions of this Agreement; and

    

    WHEREAS,
      Executive is desirous of entering into the Agreement for such periods and upon
      the terms and conditions set forth herein.

    

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants and agree-ments
      hereinafter set forth, intending to be legally bound, the parties agree as
      follows:

    

    1.    Employment;
      Responsibilities and Duties.

    

    (a)    NBTB
      hereby agrees to employ Executive, and Executive hereby agrees to serve in
      the
      capacities delineated above during the Term of Employment. Executive shall
      have
      such executive duties, responsibilities, and authority as shall be set forth
      in
      the bylaws of NBT Bank or as may otherwise be determined by NBTB or by NBT
      Bank.
      During the Term of Employment, Executive shall report directly to the chairman
      of the board of NBTB.

    

    (b)    NBTB
      hereby agrees to cause Executive to be reelected to the board of directors
      of
      NBT Bank for successive terms throughout the Term of Employment and further
      agrees to appoint and subsequently nominate Executive to the board of directors
      of NBTB as of January 1, 2005.

    

    (c)    Executive
      shall devote his full working time and best efforts to the performance of his
      responsibilities and duties hereunder. During the Term of Employ-ment, Executive
      shall not, without the prior written consent of the chairman of the board of
      NBTB, render services as an employee, independent contractor, or otherwise,
      whether or not compensated, to any person or entity other than NBTB or its
      affiliates; provided that Executive may, where involvement in such activities
      does not individually or in the aggregate significantly interfere with the
      performance by Executive of his duties or violate the provisions of section
      4
      hereof, (i) render services to charitable organizations, (ii) manage his
      personal invest-ments, and (iii) with the prior permis-sion of the chairman
      of
      the board of
      NBTB,
      hold such other director-ships or part-time academic appointments or have such
      other business affiliations as would otherwise be prohibited under this section
      1.

    

    2.    Term
      of Employment.

    

    (a)    The
      term
      of this Agreement ("Term of Employment") shall be the period com-mencing on
      the
      date of this Agreement (the "Commence-ment Date") and continuing until the
      Termination Date, which shall mean the earliest to occur of:

    

    (i)    the
      fifth
      anniversary of the Commencement Date, unless the Term of Employment shall be
      extended by mutual agreement of the parties;

    

    (ii)    the
      death
      of Executive;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (iii)   Executive's
      inability to perform his duties hereunder, as a result of physical or mental
      disability as reasonably determined by the personal physician of Executive,
      for
      a period of at least 180 consecutive days or for at least 180 days during any
      period of twelve consecutive months during the Term of Employment;
      or

    

    (iv)   the
      discharge of Executive by NBTB "for cause," which shall mean one or more of
      the
      following:

    

    (A)    any
      willful or gross misconduct by Executive with respect to the business and
      affairs of NBTB or NBT Bank, or with respect to any of its affiliates for which
      Executive is assigned material responsibilities or duties;

    

    (B)    the
      conviction of Executive of a felony (after the earlier of the expiration of
      any
      applicable appeal period without perfection of an appeal by Executive or the
      denial of any appeal as to which no further appeal or review is available to
      Executive) whether or not committed in the course of his employment by
      NBTB;

    

    (C)    Executive's
      willful neglect, failure, or refusal to carry out his duties hereunder in a
      reasonable manner (other than any such failure resulting from disability or
      death or from termination by Executive for Good Reason, as hereinafter defined)
      after a written demand for substantial performance is delivered to Executive
      that speci-fically identifies the manner in which NBTB believes that Executive
      has not substantially performed his duties and Executive has not resumed
      substantial performance of his duties on a continuous basis within thirty days
      of receiving such demand; or

    

    (D)    the
      breach by Executive of any representa-tion or warranty in section 6(a) hereof
      or
      of any agreement contained in section 1, 4, 5, or 6(b) hereof, which breach
      is
      material and adverse to NBTB or any of its affiliates for which Executive is
      assigned material responsibili-ties or duties; or

    

    (v)    Executive's
      resignation from his position as president and chief operating officer of NBT
      Bank other than for "Good Reason," as hereinafter defined; or

    

    (vi)    the
      termination of Executive's employment by NBTB "without cause," which shall
      be
      for any reason other than those set forth in subsections (i), (ii), (iii),
      (iv),
      or (v) of this section 2(a), at any time, upon the thirtieth day following
      notice to Executive; or

    

    (vii)   Executive's
      resignation for "Good Reason."

    

    "Good
      Reason" shall mean, without Executive's express written consent, reassignment
      of
      Executive to a position other than as president and chief operating officer
      of
      NBT Bank other than for "Cause," or a decrease in the amount or level of
      Executive's salary or benefits from the amount or level established in section
      3
      hereof.

    

    (b)   In
      the
      event that the Term of Employment shall be terminated for any reason other
      than
      that set forth in section 2(a)(vi) or 2(a)(vii) hereof, Executive shall be
      entitled to receive, upon the occur-rence of any such event:

    

    (i)    any
      salary (as hereinafter defined) payable pursuant to section 3(a)(i) hereof
      which
      shall have accrued as of the Termination Date; and

    

    (ii)   such
      rights as Executive shall have accrued as of the Termination Date under the
      terms of any plans or arrange-ments in which he participates pursuant to section
      3(b) hereof, any right to reimbursement for expenses accrued as of the
      Termination Date payable pursuant to section 3(h) hereof, and the right to
      receive the cash equivalent of paid annual leave and sick leave accrued as
      of
      the Termination Date pursuant to section 3(d) hereof.

    

    (c)    In
      the
      event that the Term of Employment shall be terminated for the reason set forth
      in section 2(a)(vi) or 2(a)(vii) hereof, Executive shall be entitled to
      receive:

    

    (i)    any
      salary payable pursuant to section 3(a)(i) hereof which shall have accrued
      as of
      the Termination Date, and, for the period commencing on the date immedi-ately
      following the Termi-na-tion Date and ending upon and including the latest of
      the
      fifth anniversary of the Commence-ment Date or the third anniversary of the
      Termination Date, salary payable at the rate established pursuant to section
      3(a)(i) hereof, in a manner consistent with the normal payroll practices of
      NBTB
      with respect to executive personnel as presently in effect or as they may be
      modified by NBTB from time to time; and

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (ii)    such
      rights as Executive may have accrued as of the Termination Date under the terms
      of any plans or arrangements in which he participates pursuant to section 3(b)
      hereof, any right to reimbursement for expenses accrued as of the Termina-tion
      Date payable pursuant to section 3(h) hereof, and the right to receive the
      cash
      equivalent of paid annual leave and sick leave accrued as of the Termination
      Date pursuant to section 3(d) hereof.

    

    (iii)    if,
      within eighteen (18) months following the Termination Date, Executive should
      sell his principal residence in the Norwich Rand McNally Metropolitan Area
      as
      determined by Rand McNally & Company (the "Norwich RMA") and relocate to a
      place outside of the Norwich RMA, (A) reimbursement for any shortfall between
      the net proceeds on the sale of his principal residence and the purchase price
      plus improvements, including direct, necessary and reasonable transaction costs
      incurred in connection with such purchase, as determined by the chief financial
      officer of NBTB, for such residence, and including direct, necessary and
      reasonable expenses, as determined by the chief financial officer of NBTB,
      incurred to prepare the residence for sale, (B) reimbursement for direct,
      necessary and reasonable expenses, as determined by the chief financial officer
      of NBTB, incurred in connection with the sale of such residence not already
      included as part of the reimbursement under (A) above, and (C) an amount
      necessary to pay all federal, state and local income taxes resulting from any
      reimbursement made pursuant to (A) and (B) (including any additional federal,
      state and local income taxes resulting from the payment hereunder of such
      taxes), the intent being that Executive shall be paid an additional amount
      (the
“Gross-Up”) such that the net amount retained by the Executive, after deduction
      of such federal, state and local income taxes resulting from the reimbursement
      under (A) and (B) shall be equal to the amount of the reimbursement under (A)
      and (B) before payment of such taxes; for purposes of determining the amount
      of
      the Gross-Up, Executive shall be deemed to pay federal, state and local income
      taxes at the highest marginal rate of taxation in effect in the calendar year
      in
      which the reimbursement is made. Amounts due under this subsection shall be
      paid
      as soon as administratively practicable, but in no event later than ninety
      (90)
      days after the date of the sale of Executive’s principal residence.

    

    Notwithstanding
      the foregoing, in the event the Executive is reimbursed, entitled to
      reimbursement, or is paid any amounts by an entity or entities other than NBTB
      or NBT Bank of any affiliate or successor thereof (the “Third Party”), for any
      amounts for which Executive has received, or is entitled to receive,
      reimbursement under (A) or (B) above with respect to the sale of his principal
      residence or any Gross-Up under (C) above, the Executive agrees: 

    
      	
              (1)

            	
              with
                regard to amounts already paid by NBTB or NBT Bank or any affiliate
                or
                successor thereof (hereinafter referred to collectively as the “Company”),
                the Executive shall notify the Company of all amounts received or
                due from
                the Third Party, and shall reimburse the Company in an amount equal
                to the
                amount so received or due from the Third Party up to the amount the
                Company paid to the Executive under (A), (B), and (C) above;
                and

            

    

    
      	
              (2)

            	
              with
                regard to amounts due but not yet paid by the Company to the Executive,
                the Executive shall notify the Company of any amounts received or
                due from
                the Third Party, and the Executive agrees that the Company shall
                reduce
                the amount due under (A), (B), and (C) above by the amount the Executive
                has been paid or is entitled to be paid by the Third Party up to
                the
                amount due the Executive from the
                Company.

            

    

    

    (d)   Any
      provision of this section 2 to the contrary notwithstanding, in the event that
      the employment of Executive with NBTB is terminated in any situation described
      in section 3 of the change-in-control letter agreement dated July 23, 2001
      between NBTB and Executive (the "Change-in-Control Agreement") so as to entitle
      Executive to a severance payment and other benefits described in section 3
      of
      the Change-in-Control Agreement, then Executive shall be entitled to receive
      the
      following, and no more, under this section 2:

    

    (i)    any
      salary payable pursuant to section 3(a)(i) hereof which shall have accrued
      as of
      the Termination Date;

    

    (ii)   such
      rights as Executive shall have accrued as of the Termination Date under the
      terms of any plans or arrangements in which he participates pursuant to section
      3(b) hereof, any right to reimbursement for expenses accrued as of the
      Termination Date payable pursuant to section 3(g) hereof, and the right to
      receive the cash equivalent of paid annual leave and sick leave accrued as
      of
      the Termination Date pursuant to section 3(d) hereof;

    

    (iii)   the
      severance payment and other benefits provided in the Change- in-Control
      Agreement; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iv)    if,
      within eighteen (18) months following the Termination Date, Executive should
      sell his principal residence in the Norwich RMA and relocate to a place outside
      of the Norwich RMA, (A) reimbursement for any shortfall between the net proceeds
      on the sale of his principal residence and the purchase price plus improvements,
      including direct, necessary and reasonable transaction costs incurred in
      connection with such purchase, as determined by the chief financial officer
      of
      NBTB, for such residence, and including direct, necessary and reasonable
      expenses, as determined by the chief financial officer of NBTB, incurred to
      prepare the residence for sale, (B) reimbursement for direct, necessary and
      reasonable expenses, as determined by the chief financial officer of NBTB,
      incurred in connection with the sale of such residence not already included
      as
      part of the reimbursement under (A) above, and (C) the Gross-Up, the intent
      being that the net amount retained by the Executive, after deduction of such
      federal, state and local income taxes resulting from the reimbursement under
      (A)
      and (B) shall be equal to the amount of the reimbursement under (A) and (B)
      before payment of such taxes; for purposes of determining the amount of the
      Gross-Up, Executive shall be deemed to pay federal, state and local income
      taxes
      at the highest marginal rate of taxation in effect in the calendar year in
      which
      the reimbursement is made. Amounts due under this subsection shall be paid
      as
      soon as administratively practicable, but in no event later than ninety (90)
      days after the date of the sale of Executive’s principal residence.

    

    Notwithstanding
      the foregoing, in the event the Executive is reimbursed, entitled to
      reimbursement, or is paid any amounts by a Third Party, for any amounts for
      which Executive has received, or is entitled to receive, reimbursement under
      (A)
      or (B) above with respect to the sale of his principal residence or any Gross-Up
      under (C) above, the Executive agrees: 

    

    
      	 	
              (1)

            	
              with
                regard to amounts already paid by the Company, the Executive shall
                notify
                the Company of all amounts received or due from the Third Party,
                and shall
                reimburse the Company in an amount equal to the amount so received
                or due
                from the Third Party up to the amount the Company paid to the Executive
                under (A), (B), and (C) above; and

            

    

    

    
      	 	
              (2)

            	
              with
                regard to amounts due but not yet paid by the Company to the Executive,
                the Executive shall notify the Company of any amounts received or
                due from
                the Third Party, and the Executive agrees that the Company shall
                reduce
                the amount due under (A), (B), and (C) above by the amount the Executive
                has been paid or is entitled to be paid by the Third Party up to
                the
                amount due the Executive from the
                Company.

            

    

     

    3.    Compensation.
      For the
      services to be performed by Executive for NBTB and its affiliates under this
      Agreement, Executive shall be compensated in the following manner:

    

    (a)    Salary.
      During
      the Term of Employment:

    

    (i)    NBTB
      shall pay Executive a salary, which, on an annual basis, shall be $350,000.
      Salary commencing on January 1, 2006 will be negotiated between Executive and
      the chairman of the board of NBTB based on recommendations from the NBTB
      Compensation and Benefits Committee and in line with comparable compensation
      for
      positions in companies of similar size and structure, but in no case less than
      $350,000. Salary shall be payable in accordance with the normal payroll
      practices of NBTB with respect to executive personnel as presently in effect
      or
      as they may be modified by NBTB from time to time.

    

    (ii)    Executive
      shall be eligible to be considered for performance bonuses commensurate with
      the
      Executive’s title and salary grade,
      in
      accordance with the compensation policies of NBTB with respect to executive
      personnel as presently in effect or as they may be modified by NBTB from time
      to
      time.

    

    (b)    Employee
      Benefit Plans or Arrangements.
      During
      the Term of Employ-ment, Executive shall be entitled to participate in all
      employee benefit plans of NBTB, as presently in effect or as they may be
      modified by NBTB from time to time, under such terms as may be applicable to
      officers of Executive's rank employed by NBTB or its affiliates, including,
      without limitation, plans providing retirement benefits, stock options, medical
      insurance, life insurance, disability insurance, and accidental death or
      dismember-ment insurance, provided that there be no duplication of such benefits
      as are provided under any other provision of this Agree-ment.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (c)    Stock
      Options and NBT Performance Share Plan.
      Each
      January or February annually during the Term of Employ-ment, NBTB will cause
      Executive to be granted a non-statutory ("non-qualified") stock option (each
      an
      "Option") to purchase the number of shares of the common stock of NBTB, $0.01
      par value (the "NBTB Common Stock"), pursuant to the NBT Bancorp Inc. 1993
      Stock
      Option Plan, as amended, or any appropriate successor plan (the "Stock Option
      Plan"), computed using a formula approved by NBTB that is commensurate with
      the
      Executive’s title and salary grade.
      The
      option exercise price per share of the shares subject to each Option shall
      be
      such Fair Market Value, and the terms, conditions of exercise, and vesting
      schedule of such Option shall be as set forth in section 8 of the Stock Option
      Plan. In addition, Executive shall be entitled to participate in any NBTB
      Performance Share Plan (the “Performance Share Plan”) as applicable to officers
      of Executive’s rank.

    

    (d)    Vacation
      and Sick Leave.
      During
      the Term of Employment, Executive shall be entitled to paid annual vacation
      periods and sick leave in accordance with the policies of NBTB as in effect
      as
      of the Commencement Date or as may be modified by NBTB from time to time as
      may
      be applicable to officers of Executive's rank employed by NBTB or its
      affiliates, but in no event less than four weeks of paid vacation per
      year.

    

    (e)    Automobile.
      During
      the Term of Employment, Executive shall be entitled to the use of an automobile
      owned by NBTB or an affiliate of NBTB, the make and model of which automobile
      shall be appropriate to an officer of Executive's rank, and which shall be
      replaced with a new automobile every two years (or earlier if accumulated
      mileage exceeds 50,000 miles). Executive shall be responsible for all expenses
      of ownership and use of any such automobile, subject to reimburse-ment of
      expenses for business use in accordance with section 3(h).

    

    (f)    Country
      Club Dues.
      During
      the Term of Employment, Executive shall be reimbursed for dues and assessments
      incurred in relation to Executive's membership at a country club mutually agreed
      upon by NBTB and the Executive.

    

    (g)    Withholding.
      All
      compensation to be paid to Executive hereunder shall be subject to required
      withholding and other taxes.

    

    (h)    Expenses.
      During
      the Term of Employment, Executive shall be reim-bursed for reasonable travel
      and
      other expenses incurred or paid by Executive in connection with the performance
      of his services under this Agreement, upon presentation of expense statements
      or
      vouchers or such other supporting information as may from time to time be
      requested, in accordance with such policies of NBTB as are in effect as of
      the
      Commencement Date and as may be modified by NBTB from time to time, under such
      terms as may be applicable to officers of Executive's rank employed by NBTB
      or
      its affiliates.

    

    4.    Confidential
      Business Information; Non-Competition.

    

    (a)    Executive
      acknowledges that certain business methods, creative techniques, and technical
      data of NBTB and its affiliates and the like are deemed by NBTB to be and are
      in
      fact confidential business informa-tion of NBTB or its affiliates or are
      en-trusted to third parties. Such confidential information includes but is
      not
      limited to procedures, methods, sales relation-ships developed while in the
      service of NBTB or its affiliates, knowledge of customers and their
      require-ments, marketing plans, marketing information, studies, forecasts,
      and
      surveys, competitive analyses, mailing and marketing lists, new business
      proposals, lists of vendors, consul-tants, and other persons who render service
      or provide material to NBTB or NBT Bank or their affiliates, and composi-tions,
      ideas, plans, and methods belonging to or related to the affairs of NBTB or
      NBT
      Bank or their affiliates. In this regard, NBTB asserts proprietary rights in
      all
      of its business information and that of its affiliates except for such
      informa-tion as is clearly in the public domain. Notwithstanding the foregoing,
      information that would be generally known or available to persons skilled in
      Executive's fields shall be considered to be "clearly in the public domain"
      for
      the purposes of the preceding sentence. Executive agrees that he will not
      disclose or divulge to any third party, except as may be required by his duties
      hereunder, by law, regulation, or order of a court or government authority,
      or
      as directed by NBTB, nor shall he use to the detriment of NBTB or its affiliates
      or use in any business or on behalf of any business competitive with or
      substantially similar to any business of NBTB or NBT Bank or their affiliates,
      any confidential business information obtained during the course of his
      employment by NBTB. The foregoing shall not be construed as restricting
      Executive from disclosing such information to the employees of NBTB or NBT
      Bank
      or their affiliates. On or before the Termination Date, Executive shall promptly
      deliver to NBTB any and all tangible, confidential information in his
      position.

    

    (b)    Executive
      hereby agrees that from the Commencement Date until the first anniversary of
      the
      Termination Date, Executive will not (i) interfere with the relationship of
      NBTB
      or NBT Bank or its affiliates with any of their employees, suppliers, agents,
      or
      representatives (including, without limitation, causing or helping another
      business to hire any employee of NBTB or NBT Bank or its affiliates), or (ii)
      directly or indirectly divert or attempt to divert from NBTB or NBT Bank or
      its
      affiliates any business in which any of them has been actively engaged during
      the Term of Employment, nor interfere with the relationship of NBTB or NBT
      Bank
      or its affiliates with any of their customers or prospective customers. This
      paragraph 4(b) shall not, in and of itself, prohibit Executive from engaging
      in
      the banking, trust, or financial services business in any capacity, including
      that of an owner or employee.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (c)    Executive
      acknowledges and agrees that irreparable injury will result to NBTB in the
      event
      of a breach of any of the provisions of this section 4 (the "Designated
      Provisions") and that NBTB will have no adequate remedy at law with respect
      thereto. Accordingly, in the event of a material breach of any Designated
      Provision, and in addition to any other legal or equitable remedy NBTB may
      have,
      NBTB shall be entitled to the entry of a preliminary and permanent
      injunction (including,
      without limitation, specific performance) by a court of competent jurisdiction
      in Chenango County, New York, or elsewhere, to restrain the violation or breach
      thereof by Executive, and Executive submits to the jurisdiction of such court
      in
      any such action.

    

    (d)    It
      is the
      desire and intent of the parties that the provisions of this section 4 shall
      be
      enforced to the fullest extent permissible under the laws and public policies
      applied in each jurisdiction in which enforcement is sought. Accordingly, if
      any
      particular provision of this section 4 shall be adjudicated to be invalid or
      unenforceable, such provision shall be deemed amended to delete therefrom the
      portion thus adjudicated to be invalid or unenforceable, such deletion to apply
      only with respect to the operation of such provision in the particular
      jurisdiction in which such adjudication is made. In addition, should any court
      determine that the provisions of this section 4 shall be unenforceable with
      respect to scope, duration, or geographic area, such court shall be empowered
      to
      substitute, to the extent enforceable, provisions similar hereto or other
      provisions so as to provide to NBTB, to the fullest extent permitted by
      applicable law, the benefits intended by this section 4.

     

    5.    Life
      Insurance.
      In
      light of the unusual abilities and experience of Executive, NBTB (or its
      affiliates) in its discretion may apply for and procure as owner and for its
      own
      benefit insurance on the life of Executive, in such amount and in such form
      as
      NBTB may choose. NBTB shall make all payments for such insurance and shall
      receive all benefits from it. Executive shall have no interest whatsoever in
      any
      such policy or policies but, at the request of NBTB, shall submit to medical
      examinations and supply such information and execute such documents as may
      reasonably be required by the insurance company or companies to which NBTB
      has
      applied for insurance.

    

    6.    Representations
      and Warranties.

    

    (a)    Executive
      represents and warrants to NBTB that his execution, delivery, and performance
      of
      this Agreement will not result in or constitute a breach of or conflict with
      any
      term, covenant, condition, or provision of any commitment, contract, or other
      agreement or instrument, including, without limitation, any other employment
      agreement, to which Executive is or has been a party.

    

    (b)    Executive
      shall indemnify, defend, and hold harmless NBTB for, from, and against any
      and
      all losses, claims, suits, damages, expenses, or liabilities, including court
      costs and counsel fees, which NBTB has incurred or to which NBTB may become
      subject, insofar as such losses, claims, suits, damages, expenses, liabilities,
      costs, or fees arise out of or are based upon any failure of any represen-tation
      or warranty of Executive in section 6(a) hereof to be true and correct when
      made.

    

    7.    Notices. 
      All notices, consents, waivers, or other communications which are required
      or
      permitted hereunder shall be in writing and deemed to have been duly given
      if
      delivered personally or by messenger, transmitted by telex or telegram, by
      express courier, or sent by registered or certified mail, return receipt
      requested, postage prepaid. All communications shall be addressed to the
      appropriate address of each party as follows:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    If
      to
      NBTB:

    

    NBT
      Bancorp Inc.

    52
      South
      Broad Street

    Norwich,
      New York 13815

    

    
      	 	
              Attention:

            	
              Mr.
                Daryl R. Forsythe, Chairman

            

    

    

    

    With
      a
      required copy to:

    

    NBT
      Bancorp Inc. Corporate Counsel

    

    If
      to
      Executive:

    

    Mr.
      Martin A. Dietrich

    122
      Serenity Drive

    Norwich,
      New York 13815

    

    All
      such
      notices shall be deemed to have been given on the date delivered, transmitted,
      or mailed in the manner provided above.

    

    8.    Assignment.
      Neither
      party may assign this Agreement or any rights or obliga-tions hereunder without
      the consent of the other party.

    

    9.    Governing
      Law.
      This
      Agreement shall be governed by, construed, and enforced in accordance with
      the
      laws of the State of New York, without giving effect to the principles of
      conflict of law thereof. The parties hereby designate Chenango County, New
      York
      to be the proper jurisdic-tion and venue for any suit or action arising out
      of
      this Agree-ment. Each of the parties consents to personal jurisdic-tion in
      such
      venue for such a proceeding and agrees that it may be served with process in
      any
      action with respect to this Agreement or the trans-actions contem-plated thereby
      by certified or regis-tered mail, return receipt requested, or to its registered
      agent for service of process in the State of New York. Each of the parties
      irrevocably and uncon-ditionally waives and agrees, to the fullest extent
      permitted by law, not to plead any objection that it may now or hereafter have
      to the laying of venue or the convenience of the forum of any action or claim
      with respect to this Agreement or the transactions contemplated thereby brought
      in the courts aforesaid.

    

    10.    Entire
      Agreement.
      This
      Agreement constitutes the entire understanding among NBTB and Executive relating
      to the subject matter hereof. Any previous agreements or under-stand-ings
      between the parties hereto or between Executive and NBT Bank or any of its
      affiliates regarding the subject matter hereof, including without limitation
      the
      terms and conditions of employment, compensation, benefits, retirement,
      competition following employment, and the like, are merged into and superseded
      by this Agreement. Neither this Agreement nor any provisions hereof can be
      modified, changed, discharged, or terminated except by an instru-ment in writing
      signed by the party against whom any waiver, change, discharge, or termination
      is sought.

    

    11.    Illegality;
      Severability.

    

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

    

    (b)    If
      any
      provision or provisions of this Agreement shall be held to be invalid, illegal,
      or unenforce-able for any reason whatsoever:

    

    (i)    the
      validity, legality, and enforceability of the remaining provisions of this
      Agreement (including, without limitation, each portion of any section of this
      Agreement contain-ing any such provision held to be invalid, illegal, or
      unenforce-able) shall not in any way be affected or impaired thereby;
      and

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (ii)    to
      the
      fullest extent possible, the provisions of this Agreement (including, without
      limitation, each portion of any section of this Agreement containing any such
      provisions held to be invalid, illegal, or unenforceable) shall be construed
      so
      as to give effect to the intent manifested by the provision held invalid,
      illegal, or unenforceable.

    

    12.    Arbitration.
      Subject
      to the right of each party to seek specific performance (which right shall
      not
      be subject to arbitration), if a dispute arises out of or related to this
      Agreement, or the breach thereof, such dispute shall be referred to arbitration
      in accordance with the Commercial Arbitration Rules of the American Arbitration
      Association ("AAA"). A dispute subject to the provisions of this section will
      exist if either party notifies the other party in writing that a dispute subject
      to arbitration exists and states, with reasonable specificity, the issue subject
      to arbitration (the "Arbitration Notice"). The parties agree that, after the
      issuance of the Arbitration Notice, the parties will try in good faith to
      resolve the dispute by mediation in accordance with the Commercial Rules of
      Arbitration of AAA between the date of the issuance of the Arbitration Notice
      and the date the dispute is set for arbitration. If the dispute is not settled
      by the date set for arbitration, then any controversy or claim arising out
      of
      this Agreement or the breach hereof shall be resolved by binding arbitration
      and
      judgment upon any award rendered by arbitrator(s) may be entered in a court
      having jurisdiction. Any person serving as a mediator or arbitrator must have
      at
      least ten years' experi-ence in resolving commercial disputes through
      arbitration. In the event any claim or dispute involves an amount in excess
      of
      $100,000, either party may request that the matter be heard by a panel of three
      arbitrators; otherwise all matters subject to arbitration shall be heard and
      resolved by a single arbitrator. The arbitrator shall have the same power to
      compel the attendance of witnesses and to order the production of documents
      or
      other materials and to enforce discovery as could be exercised by a United
      States District Court judge sitting in the Northern District of New York. In
      the
      event of any arbitration, each party shall have a reasonable right to conduct
      discovery to the same extent permitted by the Federal Rules of Civil Procedure,
      provided that such discovery shall be concluded within ninety days after the
      date the matter is set for arbitration. In the event of any arbitration, the
      arbitrator or arbitrators shall have the power to award reasonable attorney's
      fees to the prevailing party. Any provision in this Agreement to the contrary
      notwithstanding, this section shall be governed by the Federal Arbitration
      Act
      and the parties have entered into this Agreement pursuant to such
      Act.

    

    13.    Costs
      of Litigation.
      In the
      event litigation is commenced to enforce any of the provisions hereof, or to
      obtain declaratory relief in connection with any of the provisions hereof,
      the
      prevailing party shall be entitled to recover reasonable attorney's fees. In
      the
      event this Agreement is asserted in any litigation as a defense to any
      liability, claim, demand, action, cause of action, or right asserted in such
      litigation, the party prevailing on the issue of that defense shall be entitled
      to recovery of reasonable attorney's fees.

    

    14.    Affiliation.
      A
      company will be deemed to be "affiliated" with NBTB or NBT Bank according to
      the
      definition of "Affiliate" set forth in Rule 12b-2 of the General Rules and
      Regulations under the Securi-ties Exchange Act of 1934, as amended.

    

    15.    Headings.
      The
      section and subsection headings herein have been inserted for convenience of
      reference only and shall in no way modify or restrict any of the terms or
      provisions hereof.

    

    IN
      WITNESS WHEREOF, the parties hereto executed or caused this Agreement to be
      executed as of the day and year first above written.

    

    

    
      	 	
              NBT
                BANCORP INC.

            	 
	 	 	 	 
	 	 	 	 
	 	
              By:

            	
              /S/
                Daryl R. Forsythe

            	 
	 	 	
              Daryl
                R. Forsythe

            	 
	 	
              Chairman
                and Chief Executive Officer

            	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
              MARTIN
                A. DIETRICH

            	 
	 	 	 	 
	 	
              /S/
                Martin A. DietrichExhibit 10.18

    
      

    

    Exhibit
      10.18

    Form
      of
      Employment Agreement between NBT Bancorp Inc. and Michael J. Chewens made as
      of
      January 1, 2005.

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EMPLOYMENT
      AGREEMENT 

    

    

    This
      EMPLOYMENT
      AGREEMENT
      (the
      "Agreement") made and entered into as of the first day of January
      2005,
      by and
      between MICHAEL J. CHEWENS ("Executive") and NBT BANCORP INC., a Delaware
      corporation having its principal office in Norwich, New York
      ("NBTB")

    

    W
      I T N E S S E T H  T H A T :

    

    WHEREAS,
      Executive is an senior executive vice president and the chief financial officer
      of NBTB and NBT Bank, National Association, a national banking association
      which
      is a wholly-owned subsidiary of NBTB ("NBT Bank");

    

    WHEREAS,
      NBTB desires to secure the continued employment of Executive, subject to the
      provisions of this Agreement; and

    

    WHEREAS,
      Executive is desirous of entering into the Agreement for such periods and upon
      the terms and conditions set forth herein;

    

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants and agreements
      hereinafter set forth, intending to be legally bound, the parties agree as
      follows:

    

    
      	 	
              1.

            	
              Employment;
                Responsibilities and Duties.

            

    

    

    (a)    NBTB
      hereby agrees to employ Executive and to cause NBT Bank and any successor
      organization to NBT Bank to employ Executive, and Executive hereby agrees to
      serve as a senior executive vice president and the chief financial officer
      of
      NBTB and NBT Bank, and of any successor organization to NBTB or NBT Bank, as
      applicable, during the Term of Employment. Executive shall have such executive
      duties, responsibilities, and authority as shall be set forth in the bylaws
      of
      NBTB and NBT Bank or as may otherwise be determined by NBTB. During the Term
      of
      Employment, Executive shall report directly to the chief executive officer
      of
      NBTB.

    

    (b)    Executive
      shall devote his full working time and best efforts to the performance of his
      responsibilities and duties hereunder. During the Term of Employment, Executive
      shall not, without the prior written consent of the chief executive officer
      of
      NBTB, render services as an employee, independent contractor, or otherwise,
      whether or not compensated, to any person or entity other than NBTB or its
      affiliates; provided that Executive may, where involvement in such activities
      does not individually or in the aggregate significantly interfere with the
      performance by Executive of his duties or violate the provisions of section
      4
      hereof, (i) render services to charitable organizations, (ii) manage his
      personal investments, and (iii) with the prior permission of the chief executive
      officer of NBTB,
      hold
      such other directorships or part-time academic appointments or have such other
      business affiliations as would otherwise be prohibited under this section
      1.

    

    
      	 	
              2.

            	
              Term
                of Employment.

            

    

    

    (a)    The
      term
      of this Agreement ("Term of Employment") shall be the period commencing on
      the
      date of this Agreement (the "Commencement Date") and continuing until the
      Termination Date, which shall mean the earliest to occur of:

     

    (i)    January
      1, 2008, provided, however, that on January 1, 2006 and on each January 1
      thereafter, the Term of Employment shall be extended by one additional
      year;

    

    (ii)   the
      death
      of Executive;

    

    (iii)         
      Executive's
      inability to perform his duties hereunder, as a result of physical or mental
      disability as reasonably determined by the personal physician of Executive,
      for
      a period of at least 180 consecutive days or for at least 180 days during any
      period of twelve consecutive months during the Term of Employment;
      or

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (iv)         
      the
      discharge of Executive by NBTB "for cause," which shall mean one or more of
      the
      following:

    

    (A)    any
      willful or gross misconduct by Executive with respect to the business and
      affairs of NBTB or NBT Bank, or with respect to any of its affiliates for which
      Executive is assigned material responsibilities or duties;

    

    (B)    the
      conviction of Executive of a felony (after the earlier of the expiration of
      any
      applicable appeal period without perfection of an appeal by Executive or the
      denial of any appeal as to which no further appeal or review is available to
      Executive) whether or not committed in the course of his employment by
      NBTB;

    

    (C)    Executive's
      willful neglect, failure, or refusal to carry out his duties hereunder in a
      reasonable manner (other than any such failure resulting from disability or
      death or from termination by Executive for Good Reason, as hereinafter defined)
      after a written demand for substantial performance is delivered to Executive
      that specifically identifies the manner in which NBTB believes that Executive
      has not substantially performed his duties and Executive has not resumed
      substantial performance of his duties on a continuous basis within thirty days
      of receiving such demand; or

    

    (D)    the
      breach by Executive of any representation or warranty in section 6(a) hereof
      or
      of any agreement contained in section 1, 4, 5, or 6(b) hereof, which breach
      is
      material and adverse to NBTB or any of its affiliates for which Executive is
      assigned material responsibilities or duties; or

    

    (v)    Executive's
      resignation from his position as senior executive vice president and chief
      financial officer of NBTB or NBT Bank other than for "Good Reason," as
      hereinafter defined; or

    

    (vi)   the
      termination of Executive's employment by NBTB "without cause," which shall
      be
      for any reason other than those set forth in subsections (i), (ii), (iii),
      (iv),
      or (v) of this section 2(a), at any time, upon the thirtieth day following
      notice to Executive; or

    

    (vii)   Executive's
      resignation for "Good Reason."

    

    "Good
      Reason" shall mean, without Executive's express written consent, reassignment
      of
      Executive to a position other than senior executive
      vice president and chief financial officer of NBTB or NBT Bank other than for
      "Cause," or a decrease in the amount or level of Executive's salary or benefits
      from the amount or level established in section 3 hereof.

    

    (b)    In
      the
      event that the Term of Employment shall be terminated for any reason other
      than
      that set forth in section 2(a)(vi) or 2(a)(vii) hereof, Executive shall be
      entitled to receive, upon the occurrence of any such event:

    

    (i)    any
      salary (as hereinafter defined) payable pursuant to section 3(a)(i) hereof
      which
      shall have accrued as of the Termination Date; and

    

    (ii)   such
      rights as Executive shall have accrued as of the Termination Date under the
      terms of any plans or arrangements in which he participates pursuant to section
      3(b) hereof, any right to reimbursement for expenses accrued as of the
      Termination Date payable pursuant to section 3(g) hereof, and the right to
      receive the cash equivalent of paid annual leave and sick leave accrued as
      of
      the Termination Date pursuant to section 3(d) hereof, and

    

    (c)    In
      the
      event that the Term of Employment shall be terminated for the reason set forth
      in section 2(a)(vi) or 2(a)(vii) hereof, Executive shall be entitled to
      receive:

    

    (i)    any
      salary payable pursuant to section 3(a)(i) hereof which shall have accrued
      as of
      the Termination Date, and, for the period commencing on the date immediately
      following the Termination Date and ending upon and including the latest of
      the
      third anniversary of the Commencement Date or the date to which the Term of
      Employment shall (as of the Termination Date) have automatically extended itself
      under section 2(a)(i) hereof, salary payable at the rate established pursuant
      to
      section 3(a)(i) hereof, in a manner consistent with the normal payroll practices
      of NBTB with respect to executive personnel as presently in effect or as they
      may be modified by NBTB from time to time;

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ii)   such
      rights as Executive may have accrued as of the Termination Date under the terms
      of any plans or arrangements in which he participates pursuant to section 3(b)
      hereof, any right to reimbursement for expenses accrued as of the Termination
      Date payable pursuant to section 3(g) hereof, and the right to receive the
      cash
      equivalent of paid annual leave and sick leave accrued as of the Termination
      Date pursuant to section 3(d) hereof; and

    

    (iii)         
      if,
      within eighteen (18) months following the Termination Date, Executive should
      sell his principal residence in the Binghamton Rand McNally Metropolitan Area
      as
      determined by Rand McNally & Company (the "Binghamton RMA") and relocate to
      a place outside of the Binghamton RMA, (A) reimbursement for any shortfall
      between the net proceeds on the sale of his principal residence and the purchase
      price plus improvements, including direct, necessary and reasonable transaction
      costs incurred in connection with such purchase, as determined by the
      controller’s division of NBT Bank, for such residence, and including direct,
      necessary and reasonable expenses, as determined by the finance division of
      NBT
      Bank, incurred to prepare the residence for sale, (B) reimbursement for direct,
      necessary and reasonable expenses, as determined by the finance division of
      NBT
      Bank, incurred in connection with the sale of such residence not already
      included as part of the reimbursement under (A) above, and (C) an amount
      necessary to pay all federal, state and local income taxes resulting from any
      reimbursement made pursuant to (A) and (B) (including any additional federal,
      state and local income taxes resulting from the payment hereunder of such
      taxes), the intent being that Executive shall be paid an additional amount
      (the
“Gross-Up”) such that the net amount retained by the Executive, after deduction
      of such federal, state and local income taxes resulting from the reimbursement
      under (A) and (B) shall be equal to the amount of the reimbursement under (A)
      and (B) before payment of such taxes; for purposes of determining the amount
      of
      the Gross-Up, Executive shall be deemed to pay federal, state and local income
      taxes at the highest marginal rate of taxation in effect in the calendar year
      in
      which the reimbursement is made. Amounts due under this subsection shall be
      paid
      as soon as administratively practicable, but in no event later than ninety
      (90)
      days after the date of the sale of Executive’s principal residence.

    

    Notwithstanding
      the foregoing, in the event the Executive is reimbursed, entitled to
      reimbursement, or is paid any amounts by an entity or entities other than NBTB
      or NBT Bank of any affiliate or successor thereof (the “Third Party”), for any
      amounts for which Executive has received, or is entitled to receive,
      reimbursement under (A) or (B) above with respect to the sale of his principal
      residence or any Gross-Up under (C) above, the Executive agrees: 

    
      	
              (3)

            	
              with
                regard to amounts already paid by NBTB or NBT Bank or any affiliate
                or
                successor thereof (hereinafter referred to collectively as the “Company”),
                the Executive shall notify the Company of all amounts received or
                due from
                the Third Party, and shall reimburse the Company in an amount equal
                to the
                amount so received or due from the Third Party up to the amount the
                Company paid to the Executive under (A), (B), and (C) above;
                and

            

    

    
      	
              (4)

            	
              with
                regard to amounts due but not yet paid by the Company to the Executive,
                the Executive shall notify the Company of any amounts received or
                due from
                the Third Party, and the Executive agrees that the Company shall
                reduce
                the amount due under (A), (B), and (C) above by the amount the Executive
                has been paid or is entitled to be paid by the Third Party up to
                the
                amount due the Executive from the
                Company.

            

    

    

    (d)    Any
      provision of this section 2 to the contrary notwithstanding, in the event that
      the employment of Executive with NBTB is terminated in any situation described
      in section 3 of the change-in-control letter agreement dated July 23, 2001
      between NBTB and Executive (the "Change-in-Control Agreement") so as to entitle
      Executive to a severance payment and other benefits described in section 3
      of
      the Change-in-Control Agreement, then Executive shall be entitled to receive
      the
      following, and no more, under this section 2:

    

    (i)    any
      salary payable pursuant to section 3(a)(i) hereof which shall have accrued
      as of
      the Termination Date;

    

    (ii)   such
      rights as Executive shall have accrued as of the Termination Date under the
      terms of any plans or arrangements in which he participates pursuant to section
      3(b) hereof, any right to reimbursement for expenses accrued as of the
      Termination Date payable pursuant to section 3(g) hereof, and the right to
      receive the cash equivalent of paid annual leave and sick leave accrued as
      of
      the Termination Date pursuant to section 3(d) hereof;

    

    (iii)   the
      severance payment and other benefits provided in the Change- in-Control
      Agreement; and

    

    (iv)   if,
      within eighteen (18) months following the Termination Date, Executive should
      sell his principal residence in the Binghamton RMA and relocate to a place
      outside of the Binghamton RMA, (A) reimbursement for any shortfall between
      the
      net proceeds on the sale of his principal residence and the purchase price
      plus
      improvements, including direct, necessary and reasonable transaction costs
      incurred in connection with such purchase, as determined by the finance division
      of NBT Bank, for such residence, and including direct, necessary and reasonable
      expenses, as determined by the controller’s division of NBT Bank, incurred to
      prepare the residence for sale, (B) reimbursement for direct, necessary and
      reasonable expenses, as determined by the finance division
      of NBT Bank, incurred in connection with the sale of such residence not already
      included as part of the reimbursement under (A) above, and (C) the Gross-Up,
      the
      intent being that the net amount retained by the Executive, after deduction
      of
      such federal, state and local income taxes resulting from the reimbursement
      under (A) and (B) shall be equal to the amount of the reimbursement under (A)
      and (B) before payment of such taxes; for purposes of determining the amount
      of
      the Gross-Up, Executive shall be deemed to pay federal, state and local income
      taxes at the highest marginal rate of taxation in effect in the calendar year
      in
      which the reimbursement is made. Amounts due under this subsection shall be
      paid
      as soon as administratively practicable, but in no event later than ninety
      (90)
      days after the date of the sale of Executive’s principal
      residence.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Notwithstanding
      the foregoing, in the event the Executive is reimbursed, entitled to
      reimbursement, or is paid any amounts by a Third Party, for any amounts for
      which Executive has received, or is entitled to receive, reimbursement under
      (A)
      or (B) above with respect to the sale of his principal residence or any Gross-Up
      under (C) above, the Executive agrees: 

    
      	
              (3)

            	
              with
                regard to amounts already paid by the Company, the Executive shall
                notify
                the Company of all amounts received or due from the Third Party,
                and shall
                reimburse the Company in an amount equal to the amount so received
                or due
                from the Third Party up to the amount the Company paid to the Executive
                under (A), (B), and (C) above; and

            

    

    

    
      	
              (4)

            	
              with
                regard to amounts due but not yet paid by the Company to the Executive,
                the Executive shall notify the Company of any amounts received or
                due from
                the Third Party, and the Executive agrees that the Company shall
                reduce
                the amount due under (A), (B), and (C) above by the amount the Executive
                has been paid or is entitled to be paid by the Third Party up to
                the
                amount due the Executive from the
                Company.

            

    

    

    3.    Compensation.
      For the
      services to be performed by Executive for NBTB and its affiliates under this
      Agreement, Executive shall be compensated in the following manner:

    

    (a)    Salary.
      During
      the Term of Employment:

    

    (i)    NBTB
      shall pay Executive a salary, which, on an annual basis, shall be $271,600.00
      commencing on January 1, 2005. Salary commencing on January 1, 2006 will be
      negotiated between Executive and the CEO of NBTB based on recommendations from
      the Compensation and Benefits Committee and in line with compensation for
      comparable positions in companies of similar size and structure, but in no
      case
      less than $271,600.00. 
      Salary
      shall be payable in accordance with the normal payroll practices of NBTB with
      respect to executive personnel as presently in effect or as they may be modified
      by NBTB from time to time.

    

    (ii)    Executive
      shall be eligible to be considered for performance bonuses commensurate with
      the
      Executive’s title and salary grade in accordance with the compensation policies
      of NBTB with respect to executive personnel as presently in effect or as they
      may be modified by NBTB from time to time.

    

    (b)    Employee
      Benefit Plans or Arrangements.
      During
      the Term of Employment, Executive shall be entitled to participate in all
      employee benefit plans of NBTB, as presently in effect or as they may be
      modified by NBTB from time to time, under such terms as may be applicable to
      officers of Executive's rank employed by NBTB or its affiliates, including,
      without limitation, plans providing retirement benefits, stock options, medical
      insurance, life insurance, disability insurance, and accidental death or
      dismemberment insurance, provided that there be no duplication of such benefits
      as are provided under any other provision of this Agreement.

    

    (c)    Stock
      Options and NBTB Performance Share Plan.
      Each
      January or February annually during the Term of Employment, NBTB will cause
      Executive to be granted a non-statutory ("non-qualified") stock option (each
      an
      "Option") to purchase the number of shares of the common stock of NBTB, $0.01
      par value (the "NBTB Common Stock"), pursuant to the NBT Bancorp Inc. 1993
      Stock
      Option Plan, as amended, or any appropriate successor plan (the "Stock Option
      Plan"), computed by using a formula approved by NBTB that is commensurate with
      the Executive’s title and salary grade. The option exercise price per share of
      the shares subject to each Option shall be such Fair Market Value, and the
      terms, conditions of exercise, and vesting schedule of such Option shall be
      as
      set forth in section 8 of the Stock Option Plan.
      In
      addition, Executive shall be entitled to participate in any NBTB Performance
      Share Plan (the “Performance Share Plan”) as applicable to officers of
      Executive’s rank. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (d)    Vacation
      and Sick Leave.
      During
      the Term of Employment, Executive shall be
      entitled to paid annual vacation periods and sick leave in accordance with
      the
      policies of NBTB as in effect as of the Commencement Date or as may be modified
      by NBTB from time to time as may be applicable to officers of Executive's rank
      employed by NBTB or its affiliates, but in no event less than four weeks of
      paid
      vacation per year.

    

    (e)    Automobile.
      During
      the Term of Employment, Executive shall be entitled to the use of an automobile
      owned by NBTB or an affiliate of NBTB, the make, model, and year of which
      automobile shall be appropriate to an officer of Executive's rank and which
      will
      be replaced every two years (or earlier if the accumulated mileage exceeds
      50,000 miles). Executive shall be responsible for all expenses of ownership
      and
      use of any such
      automobile, subject to reimburse-ment of expenses for business use in accordance
      with section 3(h).

    

    (f)    Country
      Club Dues.
      During
      the Term of Employment, Executive shall be reimbursed for dues and assessments
      incurred in relation to Executive's membership at a country club mutually agreed
      upon by the chief executive officer of NBTB and the Executive.

    

    (g)    Withholding.
      All
      compensation to be paid to Executive hereunder shall be subject to required
      withholding and other taxes.

    

    
      	 	
              (h)

            	
              Expenses.
                During the Term of Employment, Executive shall
                be

            

    

    reimbursed
      for reasonable travel and other expenses incurred or paid by Executive in
      connection with the performance of his services under this Agreement, upon
      presentation of expense statements or vouchers or such other supporting
      information as may from time to time be requested, in accordance with such
      policies of NBTB as are in effect as of the Commencement Date and as may be
      modified by NBTB from time to time, under such terms as may be applicable to
      officers of Executive's rank employed by NBTB or its affiliates.

    

    
      	 	
              4.

            	
              Confidential
                Business Information; Non-Competition.

            

    

    

    
      	 	
              (a)

            	
              Executive
                acknowledges that certain business methods, creative techniques,
                and
                technical data of NBTB and its affiliates and the like are deemed
                by NBTB
                to be and are in fact confidential business information of NBTB or
                its
                affiliates or are entrusted to third parties. Such confidential
                information includes but is not limited to procedures, methods, sales
                relationships developed while in the service of NBTB or its affiliates,
                knowledge of customers and their requirements, marketing plans, marketing
                information, studies, forecasts, and surveys, competitive analyses,
                mailing and marketing lists, new business proposals, lists of vendors,
                consultants, and other persons who render service or provide material
                to
                NBTB or NBT Bank or their affiliates, and compositions, ideas, plans,
                and
                methods belonging to or related to the affairs of NBTB or NBT Bank
                or
                their affiliates. In this regard, NBTB asserts proprietary rights
                in all
                of its business information and that of its affiliates except for
                such
                information as is clearly in the public domain. Notwithstanding the
                foregoing, information that would be generally known or available
                to
                persons skilled in Executive's fields shall be considered to be "clearly
                in the public domain" for the purposes of the preceding sentence.
                Executive agrees that he will not disclose or divulge to any third
                party,
                except as may be required by his duties hereunder, by law, regulation,
                or
                order of a court or government authority, or as directed by NBTB,
                nor
                shall he use to the detriment of NBTB or its affiliates or use in
                any
                business or on behalf of any business competitive with or substantially
                similar to any business of NBTB or NBT Bank or their affiliates,
                any
                confidential business information obtained during the course of his
                employment by NBTB. The foregoing shall not be construed as restricting
                Executive from disclosing such information to the employees of NBTB
                or NBT
                Bank or their affiliates. On or before the Termination Date, Executive
                shall promptly deliver to NBTB any and all tangible, confidential
                information in his possession.

            

    

    

    (b)    Executive
      hereby agrees that from the Commencement Date until the first anniversary of
      the
      Termination Date, Executive will not (i) interfere with the relationship of
      NBTB
      or NBT Bank or their affiliates with any of their employees, suppliers, agents,
      or representatives (including, without limitation, causing or helping another
      business to hire any employee of NBTB or NBT Bank or their affiliates), or
      (ii)
      directly or indirectly divert or attempt to divert from NBTB, NBT Bank or their
      affiliates any business in which any of them has been actively engaged during
      the Term of Employment, nor interfere with the relationship of NBTB, NBT Bank
      or
      their affiliates with any of their customers or prospective customers. This
      paragraph 4(b) shall not, in and of itself, prohibit Executive from engaging
      in
      the banking, trust, or financial services business in any capacity, including
      that of an owner or employee.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (c)    Executive
      acknowledges and agrees that irreparable injury will result to NBTB in the
      event
      of a breach of any of the provisions of this section 4 (the "Designated
      Provisions") and that NBTB will have no adequate remedy at law with respect
      thereto. Accordingly, in the event of a material breach of any Designated
      Provision, and in addition to any other legal or equitable remedy NBTB may
      have,
      NBTB shall be entitled to the entry of a preliminary and permanent injunction
      (including, without limitation, specific performance) by a court of competent
      jurisdiction in Chenango County, New York, or elsewhere, to restrain the
      violation or breach thereof by Executive, and Executive submits to the
      jurisdiction of such court in any such action.

    

    (d)    It
      is the
      desire and intent of the parties that the provisions of this section 4 shall
      be
      enforced to the fullest extent permissible under the laws and public policies
      applied in each jurisdiction in which enforcement is sought. Accordingly, if
      any
      particular provision of this section 4 shall be adjudicated to be invalid or
      unenforceable, such provision shall be deemed amended to delete therefrom the
      portion thus adjudicated to be invalid or unenforceable, such deletion to apply
      only with respect to the operation of such provision in the particular
      jurisdiction in which such adjudication is made. In addition, should any court
      determine that the provisions of this section 4 shall be unenforceable with
      respect to scope, duration, or geographic area, such court shall be empowered
      to
      substitute, to the extent enforceable, provisions similar hereto or other
      provisions so as to provide to NBTB, to the fullest extent permitted by
      applicable law, the benefits intended by this section 4.

    

    5.    Life
      Insurance.
      In
      light of the unusual abilities and experience of Executive, NBTB (or its
      affiliates) in its discretion may apply for and procure as owner and for its
      own
      benefit insurance on the life of Executive, in such amount and in such form
      as
      NBTB may choose. NBTB shall make all payments for such insurance and shall
      receive all benefits from it. Executive shall have no interest whatsoever in
      any
      such policy or policies but, at the request of NBTB, shall submit to medical
      examinations and supply such information and execute such documents as may
      reasonably be required by the insurance company or companies to which NBTB
      has
      applied for insurance.

    

    6.    Representations
      and Warranties.

    

    (a)    Executive
      represents and warrants to NBTB that his execution, delivery, and performance
      of
      this Agreement will not result in or constitute a breach of or conflict with
      any
      term, covenant, condition, or provision of any commitment, contract, or other
      agreement or instrument, including, without limitation, any other employment
      agreement, to which Executive is or has been a party.

    

    (b)    Executive
      shall indemnify, defend, and hold harmless NBTB for, from, and against any
      and
      all losses, claims, suits, damages, expenses, or liabilities, including court
      costs and counsel fees, which NBTB has incurred or to which NBTB may become
      subject, insofar as such losses, claims, suits, damages, expenses, liabilities,
      costs, or fees arise out of or are based upon any failure of any representation
      or warranty of Executive in section 6(a) hereof to be true and correct when
      made.

    

    7.    Notices.
      All
      notices, consents, waivers, or other communications which are required or
      permitted hereunder shall be in writing and deemed to have been duly given
      if
      delivered personally or by messenger, transmitted by telex or telegram, by
      express courier, or sent by registered or certified mail, return receipt
      requested, postage prepaid. All communications shall be addressed to the
      appropriate address of each party as follows:

    

    If
      to
      NBTB:

    

    NBT
      Bancorp Inc.

    52
      South
      Broad Street

    Norwich,
      New York 13815

    

    
      	 	
              Attention:

            	
              Chief
                Executive Officer

            

    

    

    

    With
      a
      required copy to:

    

    NBT
      Bancorp Inc. Corporate Counsel

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    If
      to
      Executive:

    

    Mr.
      Michael J. Chewens

    2613
      Pine
      Bluff Drive

    Vestal,
      New York 13850-2909

    

    All
      such
      notices shall be deemed to have been given on the date delivered, transmitted,
      or mailed in the manner provided above.

    

    8.    Assignment.
      Neither
      party may assign this Agreement or any rights or obligations hereunder without
      the consent of the other party.

    

    9.    Governing
      Law.
      This
      Agreement shall be governed by, construed, and enforced in accordance with
      the
      laws of the State of New York, without giving effect to the principles of
      conflict of law thereof. The parties hereby designate Chenango County, New
      York
      to be the proper jurisdiction and venue for any suit or action arising out
      of
      this Agreement. Each of the parties consents to personal jurisdiction in such
      venue for such a proceeding and agrees that it may be served with process in
      any
      action with respect to this Agreement or the transactions contemplated thereby
      by certified or registered mail, return receipt requested, or to its registered
      agent for service of process in the State of New York. Each of the parties
      irrevocably and unconditionally waives and agrees, to the fullest extent
      permitted by law, not to plead any objection that it may now or hereafter have
      to the laying of venue or the convenience of the forum of any action or claim
      with respect to this Agreement or the transactions contemplated thereby brought
      in the courts aforesaid.

    

    10.    Entire
      Agreement.
      This
      Agreement constitutes the entire understanding between
      NBTB
      and
      Executive relating to the subject matter hereof. Any previous agreements or
      understandings between the parties hereto or between Executive and NBT Bank
      or
      any of its affiliates regarding the subject matter hereof, including without
      limitation the terms and conditions of employment, compensation, benefits,
      retirement, competition following employment, and the like, are merged into
      and
      superseded by this Agreement. Neither this Agreement nor any provisions hereof
      can be modified, changed, discharged, or terminated except by an instrument
      in
      writing signed by the party against whom any waiver, change, discharge, or
      termination is sought.

    

    11.    Illegality;
      Severability.

    

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

    

    (b)    If
      any
      provision or provisions of this Agreement shall be held to be invalid, illegal,
      or unenforceable for any reason whatsoever:

    

    (i)    the
      validity, legality, and enforceability of the remaining provisions of this
      Agreement (including, without limitation, each portion of any section of this
      Agreement containing any such provision held to be invalid, illegal, or
      unenforceable) shall not in any way be affected or impaired thereby;
      and

    

    (ii)    to
      the
      fullest extent possible, the provisions of this Agreement (including, without
      limitation, each portion of any section of this Agreement containing any such
      provisions held to be invalid, illegal, or unenforceable) shall be construed
      so
      as to give effect to the intent manifested by the provision held invalid,
      illegal, or unenforceable.

    

    12.    Arbitration.
      Subject
      to the right of each party to seek specific performance (which right shall
      not
      be subject to arbitration), if a dispute arises out of or related to this
      Agreement, or the breach thereof, such dispute shall be referred to arbitration
      in accordance with the Commercial Arbitration Rules of the American Arbitration
      Association ("AAA"). A dispute subject to the provisions of this section will
      exist if either party notifies the other party in writing that a dispute subject
      to arbitration exists and states, with reasonable specificity, the issue subject
      to arbitration (the "Arbitration Notice"). The parties agree that, after the
      issuance of the Arbitration Notice, the parties will try in good faith to
      resolve the dispute by mediation in accordance with the Commercial Rules of
      Arbitration of AAA between the date of the issuance of the Arbitration Notice
      and the date the dispute is set for arbitration. If the dispute is not settled
      by the date set for arbitration, then any controversy or claim arising out
      of
      this Agreement or the breach hereof shall be resolved by binding arbitration
      and
      judgment upon any award rendered by arbitrator(s) may be entered in a court
      having jurisdiction. Any person serving as a mediator or arbitrator must have
      at
      least ten years' experience in resolving commercial disputes through
      arbitration. In the event any claim or dispute involves an amount in excess
      of
      $100,000, either party may request that the matter be heard by a panel of three
      arbitrators; otherwise all matters subject to arbitration shall be heard and
      resolved by a single arbitrator. The arbitrator shall have the same power to
      compel the attendance of witnesses and to order the production of documents
      or
      other materials and to enforce discovery as could be exercised by a United
      States District Court judge sitting in the Northern District of New York. In
      the
      event of any arbitration, each party shall have a reasonable right to conduct
      discovery to the same extent permitted by the Federal Rules of Civil Procedure,
      provided that such discovery shall be concluded within ninety days after the
      date the matter is set for arbitration. In the event of any arbitration, the
      arbitrator or arbitrators shall have the power to award reasonable attorney's
      fees to the prevailing party. Any provision in this Agreement to the contrary
      notwithstanding, this section shall be governed by the Federal Arbitration
      Act
      and the parties have entered into this Agreement pursuant to such
      Act.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    13.    Costs
      of Litigation.
      In the
      event litigation is commenced to enforce any of the provisions hereof, or to
      obtain declaratory relief in connection with any of the provisions hereof,
      the
      prevailing party shall be entitled to recover reasonable attorney's fees. In
      the
      event this Agreement is asserted in any litigation as a defense to any
      liability, claim, demand, action, cause of action, or right asserted in such
      litigation, the party prevailing on the issue of that defense shall be entitled
      to recovery of reasonable attorney's fees.

    

    14.    Affiliation.
      A
      company will be deemed to be "affiliated" with NBTB or NBT Bank according to
      the
      definition of "Affiliate" set forth in Rule 12b-2 of the General Rules and
      Regulations under the Securities Exchange Act of 1934, as amended.

    

    15.    Headings.
      The
      section and subsection headings herein have been inserted for convenience of
      reference only and shall in no way modify or restrict any of the terms or
      provisions hereof.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto executed or caused this Agreement to be
      executed as of the day and year first above written.

     

    
      	 	
              NBT
                BANCORP INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /S/
                Daryl R. Forsythe

            
	 	 	
              Daryl
                R. Forsythe

            
	 	 	
              Chairman
                and 

            
	 	 	
              Chief
                Executive Officer

            
	 	 	 
	 	 	 
	 	
              MICHAEL
                J. CHEWENS

            
	 	 	 
	 	 	 
	 	 	 
	 	
              /S/
                Michael J. Chewens

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