Document:

EXHIBIT 10.7

 Exhibit 10.7 
  
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (“the Agreement”) is made and entered into as of
                        , 2004 (the “Effective Date”) by and between The Rome Savings Bank, federally-chartered
savings bank having an office at 100 West Dominick Street, Rome, New York 13440-5810 (the “Bank”) and Charles M. Sprock, an individual residing at 1843 North James Street, Rome, New York 13440 (the “Executive”). 
  
 W I T N E
S S E T H : 
  
 WHEREAS, the Executive currently serves as President and Chief Executive Officer of the Bank, a subsidiary of Rome Bancorp, Inc. (the “Company”); 
  
 WHEREAS, the Bank desires to assure for
itself the continued availability of the Executive’s services as provided in this Agreement and the ability of the Executive to perform such services with a minimum of personal distraction in the event of a pending or threatened Change of
Control (as hereinafter defined); and 
  
 WHEREAS, the Executive is willing to continue to serve the Bank on the terms and conditions hereinafter set forth; 
  

NOW, THEREFORE, in consideration of the premises and the mutual covenants and conditions
hereinafter set forth, the Bank and the Executive hereby agree as follows: 
  
 Section 1. Employment. 
  
 The Bank agrees to continue to employ the Executive, and the Executive hereby agrees to such continued employment, during the period and upon the terms and conditions set forth in this Agreement. 
  
 Section 2. Employment Period; Remaining Unexpired Employment
Period. 
  
 (a) The terms and conditions of this
Agreement shall be and remain in effect during the period of employment established under this section 2 (“Employment Period”). The Employment Period shall be for an initial term of three years beginning on the Effective Date and ending on
the third anniversary date of this Agreement, plus such extensions, if any, as are provided pursuant to section 2(b). 
  
 (b) The Board of Directors of the Bank (the “Board”) shall conduct an annual review of the Executive’s performance on or about each
anniversary of the Effective Date (each, an “Anniversary Date”) and may, on the basis of such review and by written notice to the Executive, offer to extend the Employment Period for an additional one-year period. In such event, the
Employment Period shall be deemed extended in the absence of objection from the Executive by written notice to the Bank given within ten (10) business days after his receipt of the Bank’s offer of extension. Except as otherwise expressly
provided in this Agreement, any reference in this Agreement to the term “Remaining Unexpired Employment Period” as of any date shall mean the period beginning on such date and ending on the day of the third (3rd) 

 
anniversary of the last Anniversary Date as of which the Employment Period was extended pursuant to this Section 2(b). 
  
 (c) Nothing in this Agreement shall be deemed to prohibit the Bank at any
time from terminating the Executive’s employment during the Employment Period with or without notice for any reason; provided, however, that the relative rights and obligations of the Bank and the Executive in the event of any such
termination shall be determined under this Agreement. 
  
 Section 3. Duties. 
  
 The Executive shall
serve as President and Chief Executive Officer of the Bank, having such power, authority and responsibility and performing such duties as are prescribed by or under the By-Laws of the Bank and as are customarily associated with such position. The
Executive shall devote his full business time and attention (other than during weekends, holidays, approved vacation periods, and periods of illness or approved leaves of absence) to the business and affairs of the Bank and shall use his best
efforts to advance the interests of the Bank. 
  
 Section 4.
Cash Compensation. 
  
 In consideration for the
services to be rendered by the Executive hereunder, the Bank shall continue to pay to him a salary at an annual rate of [$250,000], payable in approximately equal installments in accordance with the Bank’s customary payroll practices for senior
officers. Prior to each Anniversary Date, the Board shall review the Executive’s annual rate of salary at such times during the Employment Period as it deems appropriate, but not less frequently than once every twelve months, and may, in its
discretion, approve an increase therein. In addition to salary, the Executive may receive other cash compensation from the Bank for services hereunder at such times, in such amounts and on such terms and conditions as the Board may determine from
time to time. 
  
 Section 5. Employee Benefit Plans and
Programs. 
  
 During the Employment Period, the Executive
shall be treated as an employee of the Bank and shall be entitled to participate in and receive benefits under any and all qualified or non-qualified retirement, pension, savings, profit-sharing or stock bonus plans, any and all group life, health
(including hospitalization, medical and major medical), dental, accident and long term disability insurance plans, and any other employee benefit and compensation plans (including, but not limited to, any incentive compensation plans or programs,
stock option and appreciation rights plans and restricted stock plans) as may from time to time be maintained by, or cover employees of, the Bank in accordance with the terms and conditions of such employee benefit plans and programs and
compensation plans and programs and consistent with the Bank’s customary practices. 
  
 Section 6. Indemnification and Insurance. 
  
 (a) During the Employment Period and for a period of six years thereafter, the Bank shall cause the Executive to be covered by and named as an insured under any policy or contract of insurance obtained by it to insure
its directors and officers against personal liability 

  

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for acts or omissions in connection with service as an officer or director of the Bank or service in other capacities at the request of the Bank. The
coverage provided to the Executive pursuant to this section 6 shall be of the same scope and on the same terms and conditions as the coverage (if any) provided to other officers or directors of the Bank. 
  
 (b) To the maximum extent permitted under applicable law, during the
Employment Period and for a period of six years thereafter, the Bank shall indemnify the Executive against and hold him harmless from any costs, liabilities, losses and exposures to the fullest extent and on the most favorable terms and conditions
that similar indemnification is offered to any director or officer of the Bank or any subsidiary or affiliate thereof. 
  
 Section 7. Outside Activities. 
  
 The Executive may serve as a member of the boards of directors of such business, community and charitable organizations as he may disclose to and as may
be approved by the Board (which approval shall not be unreasonably withheld); provided, however, that such service shall not materially interfere with the performance of his duties under this Agreement. The Executive may also engage in
personal business and investment activities which do not materially interfere with the performance of his duties hereunder; provided, however, that such activities are not prohibited under any code of conduct or investment or securities
trading policy established by the Bank and generally applicable to all similarly situated Executives. The Executive may also serve as an officer or director of the Company on such terms and conditions as the Company and the Bank may mutually agree
upon, and such service shall not be deemed to materially interfere with the Executive’s performance of his duties hereunder or otherwise result in a material breach of this Agreement. If the Executive is discharged or suspended, or is subject
to any regulatory prohibition or restriction with respect to participation in the affairs of the Bank, he shall not directly or indirectly provide services to or participate in the affairs of the Bank in a manner inconsistent with the terms of such
discharge or suspension or any applicable regulatory order. 
  
 Section 8. Working Facilities and Expenses. 
  
 The Executive’s principal place of employment shall be at the Bank’s executive offices at the address first above written, or at such other location within 50 miles of the address at which the Bank shall maintain its principal
executive offices, or at such other location as the Bank and the executive may mutually agree upon. The Bank shall provide the Executive at his principal place of employment with a private office, secretarial services and other support services and
facilities suitable to his position with the Bank and necessary or appropriate in connection with the performance of his assigned duties under this Agreement. The Bank shall reimburse the Executive for his ordinary and necessary business expenses,
including, without limitation, the Executive’s travel and entertainment expenses incurred in connection with the performance of his duties under this Agreement, in each case upon presentation to the Bank of an itemized account of such expenses
in such form as the Bank may reasonably require. 
  
 Section 9.
Termination of Employment with Severance Benefits. 
  
 (a) The Executive shall be entitled to the severance benefits described in section 9(b) in the event that: 
  

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 (i) his employment with the Bank terminates during the Employment Period as a result of
the Executive’s voluntary resignation within 90 days following: 
  
 (A) the failure of the Board to appoint or re-appoint or elect or re-elect the Executive to the position with the Bank stated in section 3 of this Agreement; 
  
 (B) if the Executive is a member of the Board, the failure
of the shareholders of the Bank to elect or re-elect the Executive to the Board or the failure of the Board (or the nominating committee thereof) to nominate the Executive for such election or re-election; 
  
 (C) the expiration of a 30-day period following the date on
which the Executive gives written notice to the Bank of its material failure, whether by amendment of the Bank’s Restated Organization Certificate, the Bank’s By-Laws, action of the Board or the Bank’s shareholders or otherwise, to
vest in the Executive the functions, duties, or responsibilities prescribed in section 3 of this Agreement, unless, during such 30-day period, the Bank cures such failure; or 
  
 (D) the expiration of a 30-day period following the date on which the Executive gives written notice to the
Bank of its material breach of any term, condition or covenant contained in this Agreement (including, without limitation any reduction of the Executive’s rate of base salary in effect from time to time and any change in the terms and
conditions of any compensation or benefit program in which the Executive participates which, either individually or together with other changes, has a material adverse effect on the aggregate value of his total compensation package), unless, during
such 30-day period, the Bank cures such failure; or 
  
 (E) a change in the Executive’s principal place of employment for a distance in excess of 50 miles from the Bank’s principal office in Rome, New York; or 
  
 (ii) the Executive’s employment with the Bank is terminated by the Bank for any reason other than for
“cause” as provided in section 11(a). 
  
 (b) Upon the
occurrence of any of the events described in section 9(a) of this Agreement, the Bank shall pay and provide to the Executive (or, in the event of his death thereafter and prior to payment, to his estate): 
  
 (i) his earned but unpaid salary (including, without
limitation, all items which constitute wages under applicable law and the payment of which is not otherwise provided for in this section 9(b)) as of the date of the termination of his employment with the Company and the Bank, such payment to be made
at the time and in the manner prescribed by law applicable to the payment of wages but in no event later than 30 days after termination of employment; 
  
 (ii) the benefits, if any, to which he is entitled as a former employee under the employee benefit plans and programs and compensation
plans and programs maintained for the benefit of the Company’s and the Bank’s officers and employees; 
  

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 (iii) continued group life, health (including hospitalization, medical and major
medical), dental, accident and long term disability insurance coverage in addition to that provided pursuant to section 9(b)(ii), for the Remaining Unexpired Employment Period, equivalent to the coverage to which he would have been entitled under
such plans (as in effect on the date of his termination of employment, or, if his termination of employment occurs after a Change of Control, on the date of such Change of Control, whichever benefits are greater), if he had continued working for the
Company and the Bank during the Remaining Unexpired Employment Period at the highest annual rate of salary achieved during the Employment Period, but taking into account any coverage provided from any subsequent employer; 
  
 (iv) within 30 days following the Executive’s
termination of employment with the Company or the Bank, a lump sum payment, in an amount equal to the present value of the salary (excluding any additional payments made to the Executive in lieu of the use of an automobile) that the Executive would
have earned if he had continued working for the Company and the Bank during the Remaining Unexpired Employment Period at the highest annual rate of salary achieved during the Employment Period, where such present value is to be determined using a
discount rate equal to the applicable short-term federal rate prescribed under section 1274(d) of the Internal Revenue Code of 1986, as amended (“Code”), compounded using the compounding periods corresponding to the Company’s regular
payroll periods for its officers, such lump sum to be paid in lieu of all other payments of salary provided for under this Agreement in respect of the period following any such termination; 
  
 (v) within 30 days following the Executive’s
termination of employment with the Company or the Bank, a lump sum payment in an amount equal to the present value of the additional employer contributions to which he would have been entitled under any and all qualified and non-qualified defined
contribution plans maintained by the Company or the Bank in which Executive participates, as if he were 100% vested thereunder and had continued working for the Company and the Bank during the Remaining Unexpired Employment Period at the highest
annual rate of salary achieved during the Employment Period and making the maximum amount of employee contributions, if any, required under such plan or plans, such present value to be determined on the basis of a discount rate, compounded using the
compounding period that corresponds to the frequency with which employer contributions are made to the relevant plan, equal to the applicable short-term federal rate prescribed under section 1274(d) of the Code; 
  
 (vi) the payments that would have been made to the Executive
under any cash or stock bonus or long-term or short-term cash incentive compensation plan maintained by, or covering employees of, the Company or the Bank if he had continued working for the Company and the Bank during the Remaining Unexpired
Employment Period and had earned the maximum bonus or incentive award in each calendar year that ends during the Remaining Unexpired Employment Period, such payments to be equal to the product of: 
  
 (A) the maximum percentage rate at which an award was ever
available to the Executive under such incentive compensation plan; multiplied by 
  

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 (B) the salary that would have been paid to the Executive during each such calendar year
at the highest annual rate of salary achieved during the Employment Period; 
  
 such payments to be made (without discounting for early payment) within 30 days following the Executive’s termination of employment; 
  
 The Bank and the Executive hereby stipulate that the damages which may be incurred by the Executive following any such termination of employment are not capable of
accurate measurement as of the date first above written and that the payments and benefits contemplated by this section 9(b) constitute reasonable damages under the circumstances and shall be payable without any requirement of proof of actual damage
and without regard to the Executive’s efforts, if any, to mitigate damages. The Bank and the Executive further agree that the Bank may condition the payments and benefits (if any) due under sections 9(b)(iii), (iv), (v) and (vi) on the receipt
of the Executive’s resignation from any and all positions which he holds as an officer, director or committee member with respect to the Company, the Bank or any subsidiary or affiliate of either of them. 
  
 Section 10. Death and Disability Benefits. 
  
 (a) In the event the Executive’s employment with the Bank terminates
during the Employment Period because of the Executive’s death, then the Bank shall pay to the Executive’s designated beneficiary for the one year period following Executive’s death, periodic payments equal in the aggregate to the
Executive’s annual base salary as in effect on the date of his death. For the one year period following Executive’s death, Executive’s dependents, as defined under the group health (including hospitalization, medical and major
medical) and dental plans sponsored by the Company or the Bank from time to time, shall be provided continued coverage under such plans, provided that they continue to remit to the Company or Bank, as the case may be, any premium payments Executive
was required to pay for such coverage prior to his death. The continued coverage provided under this section 10 shall be in addition to, and shall not count as, coverage required to be provided under any applicable law. For the purposes of this
Agreement, Executives designated beneficiary shall be the person designated as such by Executive in a writing submitted to the Bank. If no written designation is made, Executive’s designated beneficiary shall be his spouse or in the event he
has no spouse, his estate. 
  
 (b) In the event that
Executive’s employment with the Bank is terminated because of his inability to perform his duties under this Agreement by reason of illness or other physical or mental disability determined in the discretion of the Board to be permanent, based
on medical evidence the Board finds acceptable, the Bank shall continue to pay Executive his base salary in effect as of the date he is determined to be permanently disabled, for the Remaining Unexpired Employment Period, but reduced by any payments
Executive receives during such period under or pursuant to any short or long term disability plan or policy sponsored by the Company or the Bank. 
  
 Section 11. Termination without Additional Company Liability. 
  
 In the event that the Executive’s employment with the Bank shall terminate during the Employment Period on account of:

  

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 (a) the discharge of the Executive for “cause,” which, for purposes of this Agreement, shall
mean a discharge of the Executive due to the Executive’s (i) personal dishonesty, (ii) incompetence, (iii) willful misconduct, (iii) breach of fiduciary duties involving personal profit, (iv) intentional failure to perform stated duties, (v)
willful violation of any law, rule or regulation (other than traffic violations or similar offenses) or final cease-and-desist order or (vi) material breach of any provision of this Agreement; provided, however, that, if the Executive engages
in any of the acts described in section 11(a)(vi) above, the Bank shall provide the Executive with written notice of its intent to discharge the Executive for cause, and the Executive shall have 30 days from the date on which the Executive receives
such notice to cure any such acts; and provided, further, that on and after the date that a Change of Control occurs, a determination under this section 11 shall require the affirmative vote of at least three-fourths of the members of the
Board acting in good faith and such vote shall not be made prior to the expiration of a 60-day period following the date on which the Board shall, by written notice to the Executive, furnish to him a statement of its grounds for proposing to make
such determination, during which period the Executive shall be afforded a reasonable opportunity to make oral and written presentations to the members of the Board, and to be represented by his legal counsel at such presentations, to refute the
grounds for the proposed determination; or 
  
 (b) the
Executive’s voluntary resignation from employment with the Bank (including retirement) for reasons other than those specified in section 9(a)(i) or Section 12; 
  
 then the Bank shall have no further obligations under this Agreement, other than the payment to the Executive of his earned but unpaid
salary as of the date of the termination of his employment and the provision of such other benefits, if any, to which he is entitled as a former employee under the Bank’s employee benefit plans and programs and compensation plans and programs.
For purposes of this section 11, no act or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the
Executive’s action or omission was in the best interests of the Bank. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the written advice of counsel for the Bank shall be
conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Bank. The cessation of employment of the Executive shall not be deemed to be for “cause” within the meaning of section
11(a) unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of three-fourths of the members of the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an opportunity, together with counsel, to be heard before the Board), finding that, in the good faith opinion of the Board, the Executive is guilty of the conduct described in
section 11(a) above, and specifying the particulars thereof in detail. 
  
 Section 12. Termination Upon or Following a Change of Control. 
  
 (a) A Change of Control of the Company (“Change of Control”) shall be deemed to have occurred upon the happening of any of the following events: 
  
 (i) approval by the stockholders of the Company of a transaction that would result in the reorganization,
merger or consolidation of the Company, respectively, with one or more other persons, other than a transaction following which: 
  

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 (A) at least 51% of the equity ownership interests of the entity resulting from such
transaction are beneficially owned (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended “Exchange Act”) in substantially the same relative proportions by persons who, immediately prior to such
transaction, beneficially owned (within the meaning of Rule 13d-3 promulgated under the Exchange Act) at least 51% of the outstanding equity ownership interests in the Company; and 
  
 (B) at least 51% of the securities entitled to vote generally in the election of directors of the entity
resulting from such transaction are beneficially owned (within the meaning of Rule 13d-3 promulgated under the Exchange Act) in substantially the same relative proportions by persons who, immediately prior to such transaction, beneficially owned
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) at least 51% of the securities entitled to vote generally in the election of directors of the Company; 
  
 (ii) the acquisition of all or substantially all of the assets of the Company or beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of the outstanding securities of the Company entitled to vote generally in the election of directors by any person or by any persons acting in concert, or approval
by the stockholders of the Company of any transaction which would result in such an acquisition; 
  
 (iii) a complete liquidation or dissolution of the Company, or approval by the stockholders of the Company of a plan for such liquidation
or dissolution; 
  
 (iv) the occurrence of any
event if, immediately following such event, at least 50% of the members of the Board of the Company do not belong to any of the following groups: 
  
 (A) individuals who were members of the Board of the Company on the date of this Agreement; or 
  
 (B) individuals who first became members of the Board of the
Company after the date of this Agreement either: 
  
 (I) upon election to serve as a member of the Board of the Company by affirmative vote of three-quarters of the members of such Board, or of a nominating committee thereof, in office at the time of such first election; or 
  
 (II) upon election by the stockholders of the Company to
serve as a member of the Board of the Company, but only if nominated for election by affirmative vote of three-quarters of the members of the Board of the Company, or of a nominating committee thereof, in office at the time of such first nomination;

  
 provided, however, that such individual’s
election or nomination did not result from an actual or threatened election contest or other actual or threatened 

  

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solicitation of proxies or consents other than by or on behalf of the Board of the Company; or 
  
 (v) any event which would be described in section 12(a)(i), (ii), (iii) or (iv) if the term “Bank”
were substituted for the term “Company” therein. 
  
 In no event,
however, shall a Change of Control be deemed to have occurred as a result of: (i) any acquisition of securities or assets of the Company, the Bank, or a subsidiary of either of them, by the Company, the Bank, or a subsidiary of either of them, or by
any employee benefit plan maintained by any of them; or (ii) the conversion of Rome, MHC to a stock form company and the issuance of additional shares of the Company in connection therewith. For purposes of this section 12(a), the term
“person” shall have the meaning assigned to it under sections 13(d)(3) or 14(d)(2) of the Exchange Act. 
  
 (b) In the event of a Change of Control, Executive shall be entitled to the payments and benefits described in Section 9(b) in the event of his
termination of employment with the Bank under any of the following circumstances: 
  
 (i) resignation, voluntary or otherwise, by Executive at any time during the Employment Period following his demotion, loss of title,
office or significant authority or responsibility, or following any reduction in any element of his package of compensation and benefits; 
  
 (ii) resignation, voluntary or otherwise, by Executive at any time during the Employment Period following any relocation of his principal
place of employment or any change in working conditions at such principal place of employment which Executive, in his reasonable discretion, determines to be embarrassing, derogatory or otherwise adverse; 
  
 (iii) resignation, voluntary or otherwise, by Executive at
any time during the Employment Period following the failure of any successor to the Bank in the Change of Control to include Executive in any compensation or benefit program maintained by it or covering any of its executive officers, unless
Executive is already covered by a substantially similar plan of the Bank which is at least as favorable to him; 
  
 (iv) resignation, voluntary or otherwise, for any reason whatsoever following the effective date of the Change of Control; or 

 
 (v) termination by the Company for any reason other than
“cause” as defined under section 11. 
  
 (c) In the
event Executive’s employment with the Bank terminates after a Change of Control under any of the circumstances described in section 12(b), Executive shall be entitled to the payments and benefits described in section 9(b). 
  
 Section 13. Covenant Not To Compete. 
  
 The Executive hereby covenants and agrees that, in the event of his
termination of employment with the Company prior to the expiration of the Employment Period, for a period of 

  

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one year following the date of his termination of employment with the Bank (or, if less, for the Remaining Unexpired Employment Period), he shall not,
without the written consent of the Bank, become an officer, employee, consultant, director or trustee of any savings bank, savings and loan association, savings and loan holding company, bank or bank holding company, or any direct or indirect
subsidiary or affiliate of any such entity, that entails working within Oneida county or any other county in which the Company or the Bank maintains an office; provided, however, that this section 13 shall not apply if the Executive’s
employment is terminated for the reasons set forth in section 9(a). 
  
 Section 14. Confidentiality. 
  
 Unless he
obtains the prior written consent of the Bank, the Executive shall keep confidential and shall refrain from using for the benefit of himself, or any person or entity other than the Company or any entity which is a subsidiary of the Company or of
which the Company is a subsidiary, any material document or information obtained from the Company, or from its parent or subsidiaries, in the course of his employment with any of them concerning their properties, operations or business (unless such
document or information is readily ascertainable from public or published information or trade sources or has otherwise been made available to the public through no fault of his own) until the same ceases to be material (or becomes so ascertainable
or available); provided, however, that nothing in this section 14 shall prevent the Executive, with or without the Bank’s consent, from participating in or disclosing documents or information in connection with any judicial or
administrative investigation, inquiry or proceeding to the extent that such participation or disclosure is required under applicable law. 
  
 Section 15. Solicitation. 
  
 The Executive hereby covenants and agrees that, for a period of one year following his termination of employment with the Bank, he shall not, without the
written consent of the Bank, either directly or indirectly: 
  
 (a) solicit, offer employment to, or take any other action intended, or that a reasonable person acting in like circumstances would expect, to have the effect of causing any officer or employee of the Company, the Bank or any of their
respective subsidiaries or affiliates to terminate his or her employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any savings bank, savings and loan association, bank, bank
holding company, savings and loan holding company, or other institution engaged in the business of accepting deposits, making loans or doing business within the counties specified in section 13; 
  
 (b) provide any information, advice or recommendation with respect to any
such officer or employee of any savings bank, savings and loan company, bank, bank holding company, savings and loan holding company, or other institution engaged in the business of accepting deposits, making loans or doing business within the
counties specified in section 13; that is intended, or that a reasonable person acting in like circumstances would expect, to have the effect of causing any officer or employee of the Company, the Bank, or any of their respective subsidiaries or
affiliates to terminate his employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any savings bank, savings and loan association, bank, bank holding company, savings and loan

  

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holding company, or other institution engaged in the business of accepting deposits, making loans or doing business within the counties specified in section
13; 
  
 (c) solicit, provide any information, advice or
recommendation or take any other action intended, or that a reasonable person acting in like circumstances would expect, to have the effect of causing any customer of the Company, the Bank or any of their respective subsidiaries to terminate an
existing business or commercial relationship with any of them. 
  
 Section 16. No Effect on Employee Benefit Plans or Programs. 
  
 The termination of the Executive’s employment during the term of this Agreement or thereafter, whether by the Bank or by the Executive, shall have no effect on the rights and obligations of the parties hereto
under the Bank’s qualified or non-qualified retirement, pension, savings, thrift, profit-sharing or stock bonus plans, group life, health (including hospitalization, medical and major medical), dental, accident and long term disability
insurance plans or such other employee benefit plans or programs, or compensation plans or programs, as may be maintained by, or cover employees of, the Bank from time to time; provided, however, that nothing in this Agreement shall be deemed
to duplicate any compensation or benefits provided under any agreement, plan or program covering the Executive to which the Bank is a party and any duplicative amount payable under any such agreement, plan or program shall be applied as an offset to
reduce the amounts otherwise payable hereunder. 
  
 Section 17.
Successors and Assigns. 
  
 This Agreement will inure
to the benefit of and be binding upon the Executive, his legal representatives and testate or intestate distributees, and the Bank, and their respective successors and assigns, including any successor by merger or consolidation or a statutory
receiver or any other person or firm or corporation to which all or substantially all of the assets and business of the Bank may be sold or otherwise transferred. Failure of the Bank to obtain from any successor its express written assumption of the
Bank’s obligations hereunder at least 60 days in advance of the scheduled effective date of any such succession shall be deemed a material breach of this Agreement. 
  
 Section 18. Notices. 
  

Any communication required or permitted to be given under this Agreement, including any notice, direction, designation, consent, instruction, objection
or waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally, or five days after mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed to such
party at the address listed below or at such other address as one such party may by written notice specify to the other party: 
  
 If to the Executive: 
  
 Charles M. Sprock 
 1843 North James Street

 Rome, New York 13440 
  

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 If to the Bank: 
  

Rome Bancorp, Inc. 
 100 West Dominick
Street 
 Rome, New York 13440-5810 
  
 Attention: Chairman of the Board of Directors 
  
 with a copy to: 
  
 Thacher Proffitt & Wood LLP 
 1700 Pennsylvania Avenue, N.W., Suite 800 
 Washington, D.C. 20006 
  
 Attention: V. Gerard Comizio, Esq. 
  
 Section 19. Indemnification for Attorneys’ Fees. 
  
 (a) The Company shall indemnify, hold harmless and defend the Executive
against reasonable costs, including legal fees and expenses, incurred by him in connection with or arising out of any action, suit or proceeding in which he may be involved, as a result of his efforts, in good faith, to defend or enforce the terms
of this Agreement; provided, however, that the Executive shall have substantially prevailed on the merits pursuant to a judgment, decree or order of a court of competent jurisdiction or of an arbitrator in an arbitration proceeding. The
determination whether the Executive shall have substantially prevailed on the merits and is therefore entitled to such indemnification, shall be made by the court or arbitrator, as applicable. In the event of a settlement pursuant to a settlement
agreement, any indemnification payment under this section 19 shall be made only after a determination by the members of the Board (other than the Executive and any other member of the Board to which the Executive is related by blood or marriage)
that the Executive has acted in good faith and that such indemnification payment is in the best interests of the Bank. For purposes of this Agreement, any such indemnification payments shall be in addition to amounts payable pursuant to such
settlement agreement, unless such settlement agreement expressly provides otherwise. 
  
 Section 20. Severability. 
  
 A determination that any provision of this Agreement is invalid or unenforceable shall not affect the validity or enforceability of any other provision hereof. 
  
 Section 21. Waiver. 
  
 Failure to insist upon strict compliance with any of the terms, covenants or
conditions hereof shall not be deemed a waiver of such term, covenant, or condition. A waiver of any provision of this Agreement must be made in writing, designated as a waiver, and signed by the party against whom its enforcement is sought. Any
waiver or relinquishment of any right or power hereunder at any one or more times shall not be deemed a waiver or relinquishment of such right or power at any other time or times. 
  

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 Section 22. Counterparts. 
  
 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and all of which
shall constitute one and the same Agreement. 
  
 Section 23.
Governing Law. 
  
 Except to the extent preempted by
federal law, this Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York applicable to contracts entered into and to be performed entirely within the State of New York. 
  
 Section 24. Headings and Construction. 
  
 The headings of sections in this Agreement are for convenience of reference
only and are not intended to qualify the meaning of any section. Any reference to a section number shall refer to a section of this Agreement, unless otherwise stated. 
  
 Section 25. Entire Agreement; Modifications. 
  
 This instrument contains the entire agreement of the parties relating to the subject matter hereof, and supersedes in its
entirety any and all prior agreements, understandings or representations relating to the subject matter hereof. No modifications of this Agreement shall be valid unless made in writing and signed by the parties hereto. 
  
 Section 26. Non-duplication. 
  
 In the event that the Executive shall perform services for the Company or
any other direct or indirect subsidiary or affiliate of the Company or the Bank, any compensation or benefits provided to the Executive by such other employer shall be applied to offset the obligations of the Bank hereunder. 
  
 Section 27. Required Regulatory Provisions. 
  
 The following provisions are included for the purposes of complying with
various laws, rules and regulations applicable to the Bank: 
  
 (a) Notwithstanding anything herein contained to the contrary, in no event shall the aggregate amount of compensation payable to the Executive under section 9(b) hereof exceed the three times the Executive’s average annual compensation
(within the meaning of OTS Regulatory Bulletin 27a or any successor thereto) for the last five consecutive calendar years to end prior to his termination of employment with the Bank (or for his entire period of employment with the Bank if less than
five calendar years). 
  
 (b) Notwithstanding anything herein
contained to the contrary, any payments to the Executive by the Bank, whether pursuant to this Agreement or otherwise, are subject to and conditioned upon their compliance with section 18(k) of the Federal Deposit Insurance Act (“FDI
Act”), 12 U.S.C. §1828(k), and any regulations promulgated thereunder. 
  

 -13- 

 (c) Notwithstanding anything herein contained to the contrary, if the Executive is suspended from office
and/or temporarily prohibited from participating in the conduct of the affairs of the Bank pursuant to a notice served under section 8(e)(3) or 8(g)(1) of the FDI Act, 12 U.S.C. §1818(e)(3) or 1818(g)(1), the Bank’s obligations under this
Agreement shall be suspended as of the date of service of such notice, unless stayed by appropriate proceedings. If the charges in such notice are dismissed, the Bank, in its discretion, may (i) pay to the Executive all or part of the compensation
withheld while the Bank’s obligations hereunder were suspended and (ii) reinstate, in whole or in part, any of the obligations which were suspended. 
  
 (d) Notwithstanding anything herein contained to the contrary, if the Executive is removed and/or permanently prohibited from participating in the conduct
of the Bank’s affairs by an order issued under section 8(e)(4) or 8(g)(1) of the FDI Act, 12 U.S.C. §1818(e)(4) or (g)(1), all obligations of the Bank under this Agreement shall terminate as of the effective date of the order, but vested
rights of the Bank and the Executive shall not be affected. 
  
 (e) Notwithstanding anything herein contained to the contrary, if the Bank is in default (within the meaning of section 3(x)(1) of the FDI Act, 12 U.S.C. §1813(x)(1), all obligations of the Bank under this Agreement shall terminate as
of the date of default, but vested rights and obligations of the Bank and the Executive shall not be affected. 
  
 (f) Notwithstanding anything herein contained to the contrary, all obligations of the Bank hereunder shall be terminated, except to the extent that a
continuation of this Agreement is necessary for the continued operation of the Bank: (i) by the Director of the OTS or his designee or the Federal Deposit Insurance Corporation (“FDIC”), at the time the FDIC enters into an agreement to
provide assistance to or on behalf of the Bank under the authority contained in section 13(c) of the FDI Act, 12 U.S.C. §1823(c); (ii) by the Director of the OTS or his designee at the time such Director or designee approves a supervisory
merger to resolve problems related to the operation of the Bank or when the Bank is determined by such Director to be in an unsafe or unsound condition. The vested rights of the parties shall not be affected by such action. 
  
 If and to the extent that any of the foregoing provisions shall cease to be
required or by applicable law, rule or regulation, the same shall become inoperative as though eliminated by formal amendment of this Agreement. 
  

 -14- 

 IN WITNESS WHEREOF, the Bank has
caused this Agreement to be executed and the Executive has hereunto set his hand, all as of the day and year first above written. 
  

											
	 	 	 	 	EXECUTIVE 
				
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 Charles M. Sprock

			
	 ATTEST:
	 	 	 	THE ROME SAVINGS BANK
					
	By	 	 	 	 	 	By	 	 
	 	 	Secretary	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 	 	 Title:
	 	 

  
 [Seal] 
  

 -15-EXHIBIT 10.11

  
 Exhibit 10.11

  
 THE ROME SAVINGS BANK 
 DEFERRED COMPENSATION PLAN 
  

  
 As amended and restated effective 
 December 23, 1998 
  

  
 The Board of Trustees of The Rome Savings Bank hereby
amends and restates its Deferred Compensation Plan, effective December 1998. The Plan has been restated in order (1) to attract, retain, and motivate Trustees, (2) to provide retirement benefits for Trustees and select executive officers, and (3) to
encourage the long-term financial success of the Bank through a performance-based deferred compensation program. The Plan is not tax-qualified under Section 401 of the Code, and is unfunded and primarily for a select group of management or
highly compensated employees within the meaning of Section 201(2) of the Employee Retirement Income Security Act of 1974, as amended. 
  
 ARTICLE I 
 Definitions

  
 The following words and phrases, when used in the Plan
with an initial capital letter, shall have the meanings set forth below unless the context clearly indicates otherwise. 
  
 1.1 “Acceptance” shall mean acceptance, by the Committee, of a Deferral Election Form, a Distribution Election Form, or an Investment
Election Form (which acceptance shall be presumed unless, within ten business days of delivery of a Participant’s election as a Trustee, the Committee provides the Participant with a written notice detailing the reasons for its rejection).

  
 1.2 “Account” shall mean a bookkeeping
account maintained by the Bank in the name of each Participant. 
  
 1.3 “Administrator” shall mean the person(s) or entity appointed by the Board pursuant to the Trust Agreement to hold legal title to the Plan Assets for the purposes set forth herein. 
  
 1.4 “Affiliate” shall mean any “parent
corporation” or “subsidiary corporation” of the Bank, as the terms are defined in Section 424(e) and (f), respectively, of the Code. 
  
 1.5 “Bank” shall mean The Rome Savings Bank, and any successor to its interest. 
  
 1.6 “Beneficiary” shall mean the person or
persons whom a Participant may designate as 

  

 
the beneficiary of the Participant’s Benefits under Article II, and shall mean the Participant’s estate in the absence of a valid designation. A
Participant’s election of a Beneficiary shall be made on the Distribution Election Form, shall be revocable by the Participant during his or her lifetime, and shall be effective only upon its Acceptance by the Committee. 
  
 1.7 “Benefits” shall mean any and all benefits that
are or may become payable under Article II of the Plan. 
  
 1.8
“Board” shall mean the Board of Trustees of the Bank. 
  
 1.9 “Change in Control” shall mean (i) the execution of an agreement for the sale of all, or a material portion, of the assets of the Bank; (ii) the execution of an agreement for a merger,
consolidation, or other transaction of the Bank whereby the Bank is not the surviving entity; (iii) a change of control of the Bank, as defined or determined under the regulations or policies of the Bank’s primary regulator; (iv) the
acquisition, directly or indirectly, of the beneficial ownership within the meaning of that term as it is used in Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder) of twenty-five percent (25%) or more of the
outstanding voting proxies or securities of the Bank by any person, trust, entity, or group. This limitation shall not apply to a transaction in which either the Bank merely converts to stock form or forms a holding company or up to
30% of any class of securities of the Bank are purchased by a tax-qualified employee stock benefit plan of the Bank or any Affiliate. The term “person” refers to an individual or a corporation, partnership, trust, Bank, joint venture,
pool, syndicate, sole proprietorship, unincorporated organization or any other form of entity not specifically listed herein. References herein to the “Bank” shall also refer to any company that at any future time becomes the owner of more
than 50% of the Bank’s assets or securities. 
  
 1.10
“Code” shall mean the Internal Revenue Code of 1986, as amended. 
  
 1.11 “Committee” shall mean any committee that the Board may appoint to administer and effectuate the Plan. The Committee shall act only by a majority of its members, and may act through
meetings or written consents. Notwithstanding the foregoing, the Board may at any time act in lieu of the Committee with respect to any action that the Committee may take pursuant to the Plan. 
  
 1.12 “Common Stock” shall mean the common stock, if
any, of the Bank, but shall mean common stock of a holding company of the Bank if one is formed for that purpose independently of a Change in Control. 
  
 1.13 “Deferrals” shall mean any Participant-directed deferrals that occur pursuant to Section 2.3 hereof. 
  
 1.14 “Deferral Election Form” shall mean the form
attached hereto as Exhibit “A”. 
  
 1.15
“Distribution Election Form” shall mean the form attached hereto as Exhibit “B”. 
  

 1.16 “Effective Date” shall mean December 23, 1998. 
  
 1.17 “Employee” shall mean any person to whom the
Bank or an Affiliate pays “wages” that are reportable to the Internal Revenue Service on Form W-2 (or a successor form thereto). 
  
 1.18 “Investment Election Form” shall mean the form attached as Exhibit “C”. 
  
 1.19 “Just Cause” shall mean misconduct, breach of
fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violations of any law, rule or regulation (other than traffic violations or similar offenses), or final cease-and-desist orders. 
  
 1.20 “Participant” shall mean (i) an individual who
serves as a Trustee of the Bank on the Effective Date, regardless of whether or not the Trustee is an Employee, and (ii) any Trustee or Employee whom the Board specifically selects for participation in the Plan after the Effective Date, provided
that an Employee shall be eligible for Plan participation only if the Employee is a member of a select group of the Bank’s management or highly compensated Employees for purposes of Title I of the Employee Retirement Income Security Act of
1974, as amended from time to time. 
  
 1.21
“Plan” shall mean this The Rome Savings Bank Deferred Compensation Plan. 
  
 1.22 “Plan Year” shall mean the one-year period that begins each January 1, except the initial Plan Year shall begin on the
Effective Date and end on December 31, 1998. 
  
 1.23
“Trust” shall mean the trust created under the Trust Agreement. 
  
 1.24 “Trust Agreement” shall mean the agreement entered into between the Bank and the Administrator, pursuant to the terms hereof. 
  
 1.25 “Trustee” shall mean a member of the Board. 
  
 1.26 “Year of Service” shall mean each full year of a
Participant’s service, measured from the date a Participant initially commences such service, as a Trustee or Employee of the Bank or an Affiliate (but disregarding service as an emeritus or advisory Trustee). 
  
 ARTICLE II 
 Credits to Accounts 
  
 2.1 Initial Credits in 1998. Participants of the Plan shall have their accounts credited with the following amounts: 
  

			
	On the Effective Date:	  	$2,128 per Year of Service up to 20 years for each non-Employee Trustee; $5,819 per Year of Service up to 30 years for Trustee Sprock; $447 per Year of Service up to 30 years for Trustee
Scoville.
		
	On January 1, 1999	  	Each Participant’s Account shall be credited with his or her account balance, as of December 31, 1998, under the Bank’s nonqualified deferred compensation plan.

  

 2.2 Future Credits. On each December 31st after 1998, the Bank shall make a credit to the Account of each Participant who is on that date serving as a Trustee or Employee. The amount of each credit
will equal the following percentages of the cash compensation that a Participant earns during the calendar year to which the credit relates: 14% for a non-Employee Trustee; 3% for Trustee Sprock; 1% for Trustee Scoville. 
  
 2.3 Deferrals. Each Participant may elect, on the Deferral Election
Form, to make Deferrals by directing that his or her fees, salary, bonuses, or other cash compensation be reduced on a pre-tax basis. Participants may elect to defer up to 25% of their salary and up to 100% of any board fees, retainers or cash
bonuses. Such elections shall (i) be irrevocable until the end of the calendar year in which they are made, and (ii) be effective on the January 1st following their Acceptance; provided that a Participant may elect to have an election take effect as
soon as administratively practicable with respect to cash compensation that the Participant may receive in the future and as to which the Participant currently has no legal right or claim. As soon as practicable after the end of each pay
period, the Bank shall credit each Participant’s Account with any Deferrals that occurred during the pay period. 
  
 2.4 InvestmentReturn. At the end of each calendar year during which a Participant’s Account has a positive value, the Bank shall credit
the average balance credited to the Participant’s Account during the year with an investment return equal to the highest annual return that the Bank is paying, on January 1 of the particular year, on certificates of deposit having a term of one
year or less, unless the Participant has previously elected, on the Investment Election Form, to have such investment return be determined according to another measure or measures as the Board may from time to time approve for implementation only on
a prospective basis. Such elections shall be effective until the date of a superseding election, and be effective on the January 1st following their Acceptance. In the event of a stock conversion or mutual holding company reorganization by the Bank,
each Participant may elect to have his or her Account credited with the total return on the resulting Common Stock. 
  
 2.5 Short-swing Profit Rule. If the Bank were to sell stock as part of a conversion or mutual holding company reorganization and if a Participant
elects to have his or her Account appreciate or depreciate based on changes in the value of the Common Stock, the effectiveness of any investment election that the Participant makes shall be deferred until the next following date on which said
election would not result in an “opposite way” transaction for purposes of SEC Rule 16b-3. For purposes of this paragraph, an “opposite way” transaction means an election that affects a “sale” of the Common Stock by a
Participant within six months of an election that affects a “purchase” (and vice versa), whether under this Plan or another plan maintained by the Bank. This six-month “opposite way” rule will not apply, however, if the
Participant elects to receive a distribution in connection with either his or her death or termination of the Participant’s service with the Bank. 
  

 ARTICLE III 
 Vesting: Distributions from Accounts 
  
 3.1 Vesting. Each Participant shall at all times be fully vested in his or her Account; provided that if a Participant’s service as an Employee or Trustee terminates due to Just Cause, the Participant
shall automatically forfeit the portion of his or her Account that is not attributable to Deferrals. 
  
 3.2 In-Service Hardship Distributions. If the Participant or a member of the Participant’s immediate family (or a dependent of the
Participant) should suffer one or more of the following unforeseen hardships, the Participant may apply to the Committee for a withdrawal of all or part of the vested portion of his or her Account: 
  

	 	(i)	extraordinary medical expenses, or 

  

	 	(ii)	other unforeseeable and severe financial hardships that the Committee may generally recognize. 

  
 The Committee shall have sole and complete discretion over whether or not to grant a Participant’s request for a
hardship withdrawal, provided that (i) the Committee shall make its decisions in a uniform and nondiscriminatory manner, and (ii) the Participant who requests a withdrawal shall abstain from participation in, and voting on, such request. If the
Committee approves a withdrawal, the Bank shall pay the approved amount to the Participant as soon as practicable, and shall treat said amount as a pro-rata reduction from each measure of investment return then in effect under Section 2.4 hereof.

  
 3.3 Post-Termination Distributions. The Bank shall pay
a Participant’s Account in the medium selected by the Participant on the Distribution Election Form, in substantially equal annual payments over a period of five years, beginning as soon as administratively practicable following the
Participant’s termination of employment for any reason other than Just Cause or death; provided that a Participant may elect on the Distribution Election Form to have his or her Account paid in an immediate lump sum distribution or in annual
payments over a period not exceeding 10 years. 
  
 3.4
Distribution Elections. In order to be effective, Acceptance of a Participant’s Distribution Election Form must occur either (i) more than one year before the date on which the Participant’s service as an Employee terminates
for any reason or (ii) within 30 days of the Participant’s initial commencement of Plan participation, or (iii) more than 90 days before the closing of a Change in Control. In the event a Participant files more than one valid
Distribution Election Form, the most recent valid election shall supersede any and all prior elections. Nevertheless, Beneficiary designations made pursuant to executed Election Forms shall be revocable during the Participant’s lifetime and a
Participant may, by submitting an effective superseding Election Form at any time and from time to time, prospectively change the designated Beneficiary and the manner of payment to a Beneficiary. 
  

 3.5 Death Benefits. If a Participant dies before receiving all Benefits payable pursuant to
Section 3.3, then the remaining vested balance of the Participant’s Account shall be distributed in a lump sum to the Participant’s Beneficiary as soon as administratively practicable following the date of the Participant’s death;
provided that a Participant may specify on the Distribution Election Form the distribution period elected by the Participant pursuant to Section 3.3 hereof. 
  
 3.6 Change in Control. In the event of a Change in Control, the Bank and the Participant have the right to mutually agree to limit payments that
they might consider excess “golden parachute payments” as defined under §§ 280G and 4999 of the Code. 
  
 ARTICLE IV 
 Source of Benefits

  
 4.1 General Rule. Benefits accumulated under
the Plan shall constitute an unfunded, unsecured promise by the Bank to provide such payments in the future, as and to the extent such Benefits become payable. Benefits accumulated under the Plan shall be paid from the general assets of the Bank,
and no person shall, by virtue of this Plan, have any interest in such assets, other than as an unsecured creditor of the Bank. For any Plan Year during which a Trust is maintained, (i) the Administrator shall inform the Committee annually prior to
the commencement of each fiscal year as to the manner in which such Trust assets shall be invested, and (ii) the Committee shall, as soon as practicable after the end of each calendar quarter, provide the Administrator with a schedule specifying the
amount of any Trust contribution that is attributable to the Participant’s Account. The Bank shall also, at least annually, provide the Administrator with a schedule specifying the amounts payable to each Participant, and the time for making
such payments. All interest, dividends, and realized gain/losses on Trust assets will be taxed to the Bank. 
  
 4.2 Trust Funding on Change in Control. In the event of a Change in Control, the Bank shall contribute to the Trust an amount sufficient to provide
the Trust with assets having an overall value equivalent to the value of the aggregate Account balances under the Plan. 
  
 ARTICLE V 
 Recordkeeping; Plan
Expenses 
  
 The Committee shall be responsible for
maintaining all Accounts, with particular reference to contribution sources and allocating gains and losses (at least quarterly), and shall prepare Account reports for the Participants and the Bank. The Committee in its discretion may appoint or
remove a third-party recordkeeper. The Bank shall pay all expenses associated with the Plan and the Trust. 
  
 ARTICLE VI 
 Assignment 
  
 Except as otherwise expressly provided by this Plan, it is agreed that
neither the Participant nor his or her Beneficiary, to include the Participant’s executors and administrators, heirs, legatees, 

  

 
distributees, and any other person or persons claiming any benefits under him or her under this Plan, shall have any right to assign, transfer, pledge,
hypothecate, sell, transfer, alienate and encumber or otherwise convey the right to receive any Benefits hereunder, which Benefits and the rights thereto are expressly declared to be nontransferable. The right to receive Benefits under this Plan
shall likewise not be subject to execution, attachment, garnishment, sequestration or similar legal, equitable or other process to the benefit of the Participant’s creditors. Any attempted assignment, transfer, pledge, hypothecation or other
disposition of the Participant’s rights to receive Benefits under this Plan or the levy of any attachment, garnishment or similar process thereupon, shall be null and void and without effect. 
  
 ARTICLE VII 
 No Retention of Services 
  
 The Benefits payable under this Plan shall be independent of, and in addition to, any other compensation payable by the Bank to a Participant, whether in the form of fees, bonus, retirement income under employee
benefit plans sponsored or maintained by the Bank or otherwise. This Plan shall not be deemed to constitute a contract of employment between the Bank and any Participant. 
  
 ARTICLE VIII 
 Rights of Participants and Beneficiaries 
  
 The rights (if any) of Participants and their Beneficiaries under this Plan shall be solely those rights of unsecured creditors of the Bank. 
  
 ARTICLE IX 
 Reorganization

  
 The Bank agrees that it will not merge or consolidate
with any other corporation or organization, or permit its business activities to be taken over by any other organization, unless and until the succeeding or continuing corporation or other organization shall expressly assume the rights and
obligations of the Bank herein set forth. The Bank further agrees that it will not cease its business activities or terminate its existence, other than as heretofore set forth in this Article IX, without having made adequate provision for the
fulfillment of its obligation hereunder. 
  
 ARTICLE X 

 Amendment and Termination 
  
 The Board may amend or terminate the Plan at any time, provided that no such amendment or termination shall, without the written consent of an affected
Participant, alter or impair either the vested balance credited to the Participant’s Account or any rights that the Participant has accrued under the Plan. 
  

 ARTICLE XI 
 State Law 
  
 This
Plan shall be construed and governed in all respects under and by the laws of the State of New York, except to the extent preempted by federal law. If any provision of this Plan shall be held by a court of competent jurisdiction to be invalid or
unenforceable, the remaining provisions hereof shall continue to be fully effective. 
  
 ARTICLE XII 
 Headings; Gender 
  
 Headings and subheadings in this Plan are inserted for convenience and
reference only and constitute no part of this Plan. This Plan shall be construed, where required, so that the masculine gender includes the feminine. 
  
 ARTICLE XIII 
 Interpretation of
the Plan 
  
 The Committee shall have sole and absolute
discretion to administer, construe, and interpret the Plan, and the decisions of the Committee shall be conclusive and binding on all affected parties, unless such decisions are arbitrary and capricious. 
  
 ARTICLE XIV 
 Disputes; Legal Fees 
  
 14.1 Generally. Any controversy or claim that arises under this Plan and cannot be settled by the parties shall be addressed solely in the federal or state courts located in Rome, New York, or in the closest
jurisdiction thereto if no state or federal court exists in Rome, New York at the time of such review. 
  
 14.2 Reimbursement of Legal Fees. In the event that any dispute arises between the Participant and the Bank as to the terms or interpretation of
this Plan, whether instituted by formal legal proceedings or otherwise, including any action that the Participant takes to enforce the terms of this Plan or to defend against any action taken by the Bank or an Affiliate, the Participant shall be
reimbursed for all costs and expenses, including reasonable attorneys’ fees, arising from such dispute, proceedings or actions, provided that the Participant shall obtain a final judgement or settlement substantially in favor of the Participant
either in a court of competent jurisdiction or in binding arbitration under the rules of the American Arbitration Association or in a written settlement of the dispute. Such reimbursement shall be paid within ten (10) days of Participant’s
furnishing to the Bank written evidence, which may be in the form, among other things, of a canceled check or receipt, of any costs or expenses incurred by the Participant. 
  

 14.3 Indemnification. To the maximum extent allowed by law, the Bank shall indemnify each member
of the Committee and each Administrator who is a Trustee or Employee for any loss arising from their actions under the Plan and Trust; provided that such indemnification shall not occur for actions that constitute Just Cause. 
  
 ARTICLE XV 
 Duration of Plan 
  
 Unless terminated earlier in accordance with Article X, this Plan shall remain in effect during the term of service of the Participants and until all Benefits payable hereunder have been made.

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