Document:

Endorsement Split Dollar Agreement Dated 6/27/2001

 EXHIBIT 10.11 
  
 THE SAVINGS BANK OF UTICA 
 ENDORSEMENT SPLIT DOLLAR AGREEMENT 
  
 THIS AGREEMENT (“Agreement”) made the 27th day of June, 2001 by and
between The Savings Bank of Utica, New York (hereinafter called “the Employer”) and John A. Zawadzki (hereinafter called “Employee”). 
  
 WHEREAS, the Employee desires to insure his life, for the benefit and protection of his family, under a policy to be issued by Massachusetts Mutual Life
Insurance Company (the “Insurer”); and 
  
 WHEREAS, the
Employer desires to help the Employee provide insurance for the benefit and protection of his family by paying the full amount of the premiums due on the policy on the Employee’s life; and 
  
 WHEREAS, the Employer desires to be the owner of the policy of insurance on
the Employee’s life acquired pursuant to the terms of this Agreement so that it will have security for the repayment of the amounts which it will pay on the premiums due on the policy; 
  
 NOW, THEREFORE, in consideration of the mutual covenants contained herein, it
is agreed between the parties hereto as follows: 
  
 ARTICLE 1

 Application for Insurance 
  
 The Employer will apply to the Insurer for an insurance policy on the Employee’s life in the face amount of $1,438,941 (the “Policy”). The
Employer and the Employee will do everything necessary to cause the Policy to be issued. When the Policy is issued, the policy number, face amount and plan of insurance shall be recorded on Schedule A attached hereto and the policy shall be subject
to the terms of this Agreement. 
  
 ARTICLE 2 
 Ownership of Insurance 
  
 The Employer will be the owner of the Policy and may exercise all the rights of ownership with respect to the Policy except as otherwise hereinafter
provided. 
  
 ARTICLE 3 
 Designation of Beneficiaries and Election of Settlement Option 
  
 The Employer, upon receipt of a written request from the Employee, will designate the person or persons named by the
Employee as beneficiaries to receive any proceeds payable under the Policy in excess of the amount of the proceeds payable to the Employer under Article 10:B of this Agreement. The Employer will also elect the settlement option requested by the
Employee in writing. The beneficiary or beneficiaries named upon request by the Employee and the settlement option elected upon request by the Employee will not be changed by the Employer unless the 

 
Employee makes a written request for such a change. For these purposes, “settlement option” shall mean the form of distribution of the death
proceeds (i.e., lump sum, annuity or installment payments) to be made by the Insurer to the beneficiary or beneficiaries. 
  
 ARTICLE 4 
 Application of Dividends

  
 All dividends declared on the Policy by the Insurer shall
be applied to purchase additional paid up insurance on the life of the Employee. The provisions of this Article 4 shall not be changed without the Employee’s consent. 
  
 ARTICLE 5 
 Payment of Premiums on Policy 
  
 A. On or before
the due date the Employer will pay to the Insurer the full amount of each annual premium on the Policy. 
  
 B. In the event the Employer fails to fulfill the obligation to pay premiums as contemplated in paragraph A of this Article 5, the Employee may freely
assume this obligation in the manner described in paragraph C hereof. 
  
 C. When premiums are not paid in strict accord with paragraph A of this Article 5, the division of death proceeds or net cash value of the Policy shall be as follows: In the event the Employer shall pay less than all amounts required by
paragraph A of this Article 5, then the Employer’s share of death proceeds or of the cash value of the Policy on surrender shall be decreased within the limits of such proceeds or cash value, by the aggregate amount of premiums paid by
Employee. The Employee, in the case of surrender of the Policy or his designated beneficiary(ies), in the event of his death, shall be entitled to any remainder of proceeds or cash surrender value. 
  
 ARTICLE 6 
 Employer’s Interest in Life Insurance Policy 
  
 The Employer’s interest in the life insurance Policy shall be the greater of the aggregated amount of the premiums paid by the Employer or the
Policy’s entire cash surrender value. 
  
 ARTICLE 7

 Additional Policy Benefits and Riders 
  
 The Employer may add a rider to the Policy for its own benefit. Upon written request made by the Employee, the Employer may add a rider to the Policy for
the benefit of the Employee. Any additional premium for any rider that is added to the Policy shall be paid by the party that will be entitled to receive the proceeds of the rider. 
  

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 ARTICLE 8 
 Employer’s Right to Make Policy Loans 
  
 A. The Employer shall have the right to obtain loans secured by the Policy. These loans may be obtained either from the Insurer or from others. The Employer shall have the right to assign the Policy as security for
the repayment of such loans. The Employer shall pay all interest charges with respect to any such loans. 
  
 B. If the Policy is assigned or encumbered in any way, other than by a policy loan, on the date of the Employee’s death, the Employer will promptly
take all the steps which may be necessary to secure a release or discharge of the assignment or encumbrance so that the portion of the death proceeds payable under the Policy to the beneficiary or beneficiaries named by the Employee will be paid
promptly. 
  
 ARTICLE 9 
 Assignment or Termination of Policy 
  
 Except as otherwise herein provided, the Employer agrees that while this Agreement remains in force and in effect, it will not, without the
Employee’s consent, transfer, assign or terminate the policy on the Employee’s life acquired pursuant to the terms of this Agreement. 
  
 ARTICLE 10 
 Death Claims

  
 A. When the Employee dies, the Employer will promptly take
all the steps which may be necessary to obtain the death benefits provided under the Policy. 
  
 B. Upon the Employee’s death, the Employer shall be entitled to receive a portion of the death benefits provided under the Policy. The Employer shall be entitled to receive an amount equal to its interest in the
Policy in accordance with Article 6 of this Agreement, less the amount of any indebtedness against the Policy and any interest due on such indebtedness. The receipt of this amount by the Employer shall constitute satisfaction of the obligation under
Article 6 of this Agreement. 
  
 C. When the Employee dies, the
beneficiary or beneficiaries named by the Employer upon the Employee’s request shall be entitled to receive the amount of the death benefits provided under the Policy in excess of the amount payable to the Employer under paragraph B of this
Article. This amount shall be paid under the settlement option elected by the Employer upon the Employee’s request. 
  

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 D. Notwithstanding anything to the contrary herein, in the event the Employee’s death occurs within
two (2) years of the execution date of this Agreement and Employee’s death is determined to have been caused by self-inflicted suicide, then in such event, no death benefits, of whatever nature, shall be payable to Employee’s (or
employee’s Assignee’s) beneficiary(ies) under this Agreement. 
  
 ARTICLE 11 
 Termination of Agreement 
  
 This Agreement shall terminate on the occurrence of any of the following events: 
  

	 	(a)	cessation of the Employer’s business; 

  

	 	(b)	written notice given by either party to the other; 

  

	 	(c)	termination of the employment relationship; 

  

	 	(d)	Disability of Employee on or after age fifty-seven (57) (for these purposes, “Disability” shall mean the Employee’s permanent and total disability, as a result of
accidental bodily injury or sickness, for a period of at least six (6) months, which renders the Employee unable to perform the services incident to his position with the Bank and which Disability is likely to continue for an indefinite period, as
reasonably determined subsequent to the expiration of the six (6) month period by a duly licensed physician selected in good faith by the Bank; 

  

	 	(e)	bankruptcy, receivership or dissolution of the Employer; 

  

	 	(f)	the occurrence of the Employee’s sixtieth (60th) birthday; 

  

	 	(g)	repayment in full by the Employee of the Employer’s interest in the policy in accordance with Article 6 of this agreement, provided that upon the receipt of such repayment the
Employer shall transfer ownership of the policy to the Employee. 

  
 ARTICLE 12 
 Claims Procedure and Administration 
  
 The Employer shall appoint a committee of non-employee directors
(“Committee”) as the “Named Fiduciary” under this Agreement. The Committee shall have authority to control and manage the operation and administration of this Agreement. 
  
 (a) Claim - A person who believes that he or she is being denied a benefit to
which he or she is entitled under this Agreement (hereinafter referred to as a “Claimant”) may file a written request for such benefit with the Employer within thirty (30) days from the date the benefits are denied, setting forth his or
her claim. The request must be addressed to the Committee at the principal place of business of the Employer. 
  

 -4- 

 (b) Claim Decision - Upon receipt of a claim, the Committee shall advise the Claimant that a reply will
be forth coming within sixty (60) days and shall, in fact, deliver such reply within such period. The Committee may, however, extend the reply period for an additional thirty (30) days for reasonable cause. 
  
 (c) Appeal of Denial - If the claim is denied in whole or in part, the
Committee shall adopt a written opinion, using language calculated to be understood by the Claimant, setting forth: 
  

	 	(1)	the specific reason for such denial; 

  

	 	(2)	the specific reference to pertinent provisions of this Agreement on which such denial is based; 

  

	 	(3)	a description of any additional material or information necessary for the Claimant to perfect his or her claim and an explanation why such material or such information is necessary;

  

	 	(4)	appropriate information as to the steps to be taken if the Claimant wishes to submit the claim for review; and 

  

	 	(5)	the time limits for requesting a review under subsection (c) and for review under subsection (d) hereof. 

  
 (d) Request for Review - Within thirty (30) days after the receipt by the Claimant of the written opinion described above,
the Claimant may request in writing that the full Board of Directors review the determination of the Committee. Such request must be addressed to the Board of Directors, at its then principal place of business. The Claimant or his or her authorized
representative may, but need not, review the pertinent documents and submit issues and comments in writing for consideration by the Board of Directors. If the Claimant does not request a review of the Committee’s determination by the Board of
Directors within such thirty (30) day period, he or she shall be barred and estopped from challenging the Committee’s determination. 
  
 (e) Review of Decision - Within sixty (60) days after the Board of Director’s receipt of a request for review, the Board of Directors will review the
Committee’s determination. After considering all materials presented by the Claimant, the Board of Directors will render a written opinion, written in a manner calculated to be understood by the Claimant, setting forth the specific reasons for
the decision and containing specific references to the pertinent provisions of this Agreement on which the decision is based. If special circumstances require that the sixty (60) day time period be extended, the Board of Directors will so notify the
Claimant and will render the decision as soon as possible, but no later than one hundred twenty (120) days after receipt of the request for review. 
  

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 (f) Arbitration - If Claimant continues to dispute the benefit denial, then Claimant may submit the
dispute to mediation, administered by the American Arbitration Association (“AAA”) (or a mediator selected by the parties) in accordance with the AAA’s Commercial Mediation Rules. If mediation is not successful in resolving the
dispute, it shall be settled by arbitration administered by the AAA under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. If it is finally determined
that the Claimant is entitled to the benefits set forth under this Agreement, then all amounts that the Claimant would have received up to the time of such final determination shall be paid to the Claimant, with reasonable interest, within thirty
(30) days after such final determination. 
  
 (g) Legal Fees - All
reasonable legal fees paid or incurred by the Claimant pursuant to any dispute or questions of interpretation relating to the Agreement shall be paid or reimbursed by the Bank, provided that the dispute or interpretation has been settled or resolved
in favor of Claimant. 
  
 ARTICLE 13 
 Disposition of Policy on Termination of Agreement 
  
 A. If this Agreement is terminated under paragraph (a), (b), or (c) of Article 11, the Employee shall have thirty days in which to pay the Employer the
amount which it has paid as premiums on the Policy. Upon payment of this amount to the Employer, the Employee shall be entitled to obtain ownership of the Policy. If the Policy is encumbered by a policy loan at the time ownership is to be
transferred to the Employee, the Employer shall either remove the encumbrance or reduce the price to be paid by the Employee for the Policy by the amount of the indebtedness. If the Policy is assigned to a third party at the time ownership is to be
transferred to the Employee, the Employer shall take all the steps necessary to secure a release of the assignment. If the Employee does not exercise his right to acquire the Policy, ownership of the Policy by the Employer shall constitute
satisfaction of the Employee’s obligation to the Employer under Article 6 of this Agreement and the Employee shall be discharged completely from his obligation to repay the amounts paid by the Employer upon the premiums due on the Policy.

  
 B. If this Agreement is terminated under paragraph (d) of
Article 11, the Employer shall transfer the Policy to the Employee and shall not seek reimbursement of the premiums paid on the Policy or its cash surrender value. The Employee shall remit to the Employer an amount which is sufficient to cover any
taxes required to be withheld by the Employer on the income recognized by the Employee in connection with the transfer of the Policy. If the Policy is encumbered by a policy loan at the time ownership is transferred to the Employee, the Employer
shall remove the encumbrance. If the Policy is assigned to a third party at the time ownership is to be transferred to the Employee, the Employer shall take all steps necessary to secure release of the assignment. 
  

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 ARTICLE 14 
 Insurance Company Not a Party 
  
 A. The Insurer shall not be deemed to be a party to this Agreement for any purpose nor in any way responsible for its validity; shall not be obligated to inquire as to the distribution of any moneys payable or paid by it under the Policy;
and shall be fully discharged from any and all liability under the terms of the Policy upon payment or other performance of its obligations in accordance with the terms of the Policy. 
  
 B. Payment or other performance of its contractual obligation in accordance with the Policy provision shall fully discharge
the Insurer for any and all liability. 
  
 ARTICLE 15

 Amendment of Agreement 
  
 This Agreement shall not be modified or amended except by a writing signed by the Employer and the Employee. This Agreement shall be binding upon the
heirs, administrators or executors and the successors and assigns of each party to this Agreement. 
  
 ARTICLE 16 
 State Law 
  
 This Agreement shall be subject to and shall be construed under the laws of
the State of New York. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement at Utica, New York on the day and
date set forth above. 
  

					
	 ATTEST:
	 	 THE SAVINGS BANK OF UTICA

	 	 	 (Transition Committee)

			
	 /s/     Steven A. Covert
	 	 By:
	 	 /s/ John B. Stetson

	 Secretary
	 	 	 	 John B. Stetson

			
	 	 	 By:
	 	 /s/ Dwight E. Vicks, Jr.

	 	 	 	 	 Dwight E. Vicks, Jr.

			
	 	 	 By:
	 	 /s/ John R. Zapisek

	 	 	 	 	 John R. Zapisek

	 WITNESS:
	 	 	 	 
			
	 /s/ Helen Bonney

	 	 	 	 /s/ John A. Zawadzki

	 	 	 	 	 John A. Zawadzki

	 	 	 	 	 (Employee)

  

 -8-SBU Bank Employee Change of Control Severance Plan dated 8/26/2003

 EXHIBIT 10.12 
 SBU Bank 
 EMPLOYEE CHANGE OF CONTROL 
 SEVERANCE PLAN 
  
 PLAN
PURPOSE 
  
 The purpose of this SBU Bank Employee Change of
Control Severance Plan (the “Plan”) is to assure for SBU Bank (the “Bank”) the services of employees of the Bank and its affiliates in the event of a Change of Control (as defined in section 2.1). In adopting the Plan, the Bank
recognizes that the prospect of a Change of Control may create uncertainties for employees with respect to their future employment opportunities, compensation, benefits, conditions and location of employment, supervision and management, among other
matters, that may distract them from their work or cause them to seek other employment. Because of the value of their services and the importance of their contributions to the success and profitability of the Bank, the Bank believes that it is
desirable to adopt the Plan to provide eligible full-time employees with additional security to reduce the distractions and other adverse effects on employees’ performance and morale in the event of a Change of Control. The Bank further
believes that the Plan will aid the Bank in attracting and retaining highly qualified individuals who are essential to its success. 
  
 For the foregoing reasons, the Board of Directors of the Bank has determined that it is desirable and in the best interests of the Bank to provide
eligible full-time employees who have completed a minimum of one year of service with a severance benefit under the Plan, in the event that their employment is terminated under specified circumstances because of a Change of Control. 
  
 ARTICLE I 
 ESTABLISHMENT OF PLAN 
  
 1.1 Establishment of Plan. As of the Effective Date, as defined below, the Bank establishes an employee severance compensation plan to be
known as the “SBU Bank Employee Change of Control Severance Plan.” 
  
 1.2 Applicability of Plan. The benefits provided by this Plan shall be available to all employees, who, at or after the Effective Date, meet the eligibility requirements of Article III, excluding executive
officers who have entered into, or who enter into in the future, and continue to be parties to an employment or employment protection agreement with the Employer. 
  
 1.3 Contractual Right to Benefits. This Plan establishes and vests in each Participant a contractual right to the
benefits to which each Participant is entitled hereunder, enforceable by the Participant against the Employer. 

 ARTICLE II 
 DEFINITIONS AND CONSTRUCTION 
  
 2.1 Definitions. Whenever used in the Plan, the following terms shall have the meanings set forth below. 
  
 (a) “Annual Compensation” of a Participant means and
includes base salary, commissions and hourly wages, as applicable and if any, paid (including accrued amounts) by an Employer as consideration for the Participant’s services during the 12 months ending on the date as of which Annual
Compensation is to be determined, that are or would be includible in the gross income of such Participant for federal income tax purposes, plus amounts not includible in such Participant’s gross income because of a salary reduction election
made by such Participant pursuant to an employee benefit plan maintained by the Employer. Annual Compensation does not include bonus or other compensation in excess of base salary, commissions and hourly wages. 
  
 (b) “Bank” means SBU Bank or any successor as provided for
in Article VII below. 
  
 (c) “Cause” means the
Employee’s (1) personal dishonesty, incompetence, willful misconduct; (2) breach of fiduciary duty involving personal profit; (3) intentional failure to perform material stated duties; (4) willful violation of any law, rule, or regulation
(other than traffic violations or similar offenses); (5) being a specific subject of a final cease and desist order from, written agreement with, or other order or supervisory direction from, any federal or state regulatory authority; or (6) conduct
tending to bring the Bank or any of its subsidiaries into substantial public disgrace or disrepute. In determining incompetence, the acts or omissions shall be measured against standards generally prevailing in the financial institutions industry;
provided, it shall be the burden of the Employer to prove the alleged acts and omissions and the prevailing nature of the standards the Employer shall have alleged are violated by such acts and/or omissions. 
  
 (d) “Change of Control” shall mean: 
  
 (1) the acquisition by any individual, entity or group (within the meaning
of Section 13(d) (3) or 14(d) (2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 20% or more of either (i) the then outstanding shares of common stock of Partners Trust Financial Group, Inc. (including any company into which PRTR may merge as part of the reorganization of Partners Trust, MHC and its affiliates to a converted
stock entity, “PRTR”) (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the then outstanding voting securities of PRTR entitled to vote generally in the election of directors (the
“Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (1), the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from PRTR or Partners
Trust, MHC, (ii) any acquisition by PRTR or Partners Trust, MHC, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by PRTR or Partners Trust, MHC, the Bank or any other corporation controlled by PRTR or
Partners Trust, MHC or (iv) any acquisition by any corporation pursuant to a transaction that complies with clauses (i), (ii) and (iii) of subsection (3) of this Section 2.1(d); or 
  
 (2) Individuals who, as of the Effective Date, constitute the Board of Directors of PRTR (the “Incumbent
Board”) cease for any reason to constitute at least a majority of such Board of Directors (the “PRTR Board”); provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or
nomination for election by PRTR’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of
proxies or consents by or on behalf of a Person other than the PRTR Board; or 
  
 (3) Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of PRTR (a “Business Combination”), in each case, 

 
unless, following such Business Combination, (i) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of
the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately before such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the
combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation
that as a result of such transaction owns PRTR or all or substantially all of PRTR’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately before such Business
Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (ii) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of
PRTR, the Bank, such corporation resulting from such Business Combination or a corporation controlled by any of them) beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock of the
corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed before the Business Combination and (iii) at least a
majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for
such Business Combination; or 
  
 (4) Approval by the
shareholders of PRTR of a complete liquidation or dissolution of PRTR without the establishment of a successor corporation. 
  
 (e) “Disability” means the permanent and total inability by reason of mental or physical infirmity, or both, of an Employee to perform
the work customarily assigned to him or her. For such condition to be deemed permanent, a medical doctor selected or approved by the Bank must advise the Bank that it is either not possible to determine if or when such condition will terminate or
that it appears probable that such condition will continue to exist during the remainder of the Employee’s lifetime. 
  
 (f) “Effective Date” means the date the Plan is approved by the Board of Directors of the Bank. 
  
 (g) “Employee” means any employee classified as Hourly Tier
III or salaried employee of the Bank or any other Employer, other than an executive officer who is a party to a written employment or employment protection agreement with an Employer at the time of a Change of Control. 
  
 (h) “Expiration Date” means a date 10 years from the
Effective Date unless earlier terminated pursuant to Section 7.2 or extended pursuant to Section 7.1. 
  
 (i) “Employer” means the Bank or any subsidiary or parent corporation of the Bank. 
  
 (j) “Payment” means the payment of severance compensation
as provided in Article IV below. 
  
 (k)
“Participant” means an Employee who meets the eligibility requirements of Article III below. 
  
 (l) “Plan” means the SBU Bank Employee Change of Control Severance Plan. 

 2.2 Applicable Law. The laws of the State of New York (other than choice of law rules that would
cause the law of another jurisdiction to apply) shall be the controlling law in all matters relating to the Plan to the extent not preempted by Federal law. 
  
 2.3 Severability. If a provision of this Plan shall be held illegal or invalid, the illegality or invalidity shall not affect the remaining parts
of the Plan and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
  
 ARTICLE III 
 ELIGIBILITY 
  
 3.1 Participation. The term
Participant shall include all Employees who have completed at least one year of service with the Employers at the time of any termination pursuant to Section 4.2 below. Notwithstanding the foregoing, executive officers who are parties to written
employment or change in control agreements with an Employer shall not be entitled to participate in, or receive benefits under, this Plan. 
  
 3.2 Duration of Participation. A Participant shall cease to be a Participant in the Plan when the Participant ceases to be an Employee, unless such
Participant is entitled to a Payment as provided in the Plan. A Participant entitled to receipt of a Payment shall remain a Participant in this Plan until the full amount of such Payment has been paid to the Participant. 
  
 ARTICLE IV 
 PAYMENTS 
  
 4.1 Right to Payment. A Participant shall be entitled to receive from the Bank a Payment in the amount provided in Section 4.3 if there has been a
Change of Control and, within one year thereafter, the Participant’s employment by the Employers shall terminate for any reason specified in Section 4.2. A Participant shall not be entitled to a Payment if termination occurs by reason of death,
voluntary retirement, voluntary termination other than for reasons specified in Section 4.2, Disability, or for Cause or if immediately after such termination the Participant is employed by another Employer. 
  
 4.2 Reasons for Termination. Following a Change of Control, a
Participant shall be entitled to a Payment if his or her employment is terminated, voluntarily or involuntarily, for any one or more of the following reasons: 
  

(a) The Employer reduces the Participant’s base salary or rate of compensation as in effect immediately before the Change of Control. 

 
 (b) The Employer materially changes Participant’s function, duties
or responsibilities in a way that would cause the Participant’s position to be one of lesser responsibility, importance or scope than immediately before the Change of Control. 
  
 (c) The Employer requires the Participant to change the location of the Participant’s job or office, so that such
Participant will be based at a location more than 60 miles from the location of the Participant’s job or office immediately before the Change of Control, provided that such new location is not closer to Participant’s primary residence.

  
 (d) The Employer materially reduces the benefits and
perquisites available to the Participant immediately before the Change of Control, other than in connection with a reduction in benefits and perquisites that is made applicable to Employees generally on a nondiscriminatory basis. 

 (e) A successor to the Bank fails or refuses to assume the Bank’s obligations under this Plan, as
required by Article VI. 
  
 (f) The Bank or any successor to the
Bank breaches this Plan. 
  
 (g) The Employer terminates the
employment of a Participant in connection with or after a Change of Control, other than for Cause. 
  
 4.3 Amount of Payment. 
  
 (a) Each Participant who is entitled to a Payment under this Plan shall receive from the Bank a lump sum cash payment equal to 1/26th of his or her
Annual Compensation for each full year of service with the Employers, up to a maximum of 100% of Annual Compensation. 
  
 (b) Notwithstanding the provisions of (a) above, if a Payment to a Participant who is a Disqualified Individual shall be in an amount that includes an
Excess Parachute Payment, the Payment hereunder to that Participant shall be reduced to the maximum amount that does not constitute an Excess Parachute Payment. The terms “Disqualified Individual” and “Excess Parachute
Payment” shall have the same meaning as defined in Section 280G of the Internal Revenue Code of 1986, as amended, or any successor section thereof. The Participant shall not be required to mitigate damages on the amount of the Payment by
seeking other employment or otherwise, nor shall the amount of such Payment be reduced by any compensation earned by the Participant as a result of employment after termination of employment hereunder. 
  
 4.4 Time of Payment. The Payment to which a Participant is entitled
shall be paid to the Participant by the Employer or the successor to the Employer, in cash and in full, not later than 20 business days after the termination of the Participant’s employment. If any Participant should die after termination of
the employment but before all amounts have been paid, such unpaid amounts shall be paid to the beneficiary designated for such purpose by the Participant in writing, if any, otherwise to the personal representative on behalf of or for the benefit of
the Participant’s estate. 
  
 4.5 Release. The
obligation of the Bank to make payments here under shall be conditioned upon the execution of a written release of claims against the Employers relating to employment and the termination thereof by the Participant, in form reasonably satisfactory to
the Bank. 
  
 ARTICLE V 
 OTHER RIGHTS AND BENEFITS NOT AFFECTED 
  
 5.1 Other Benefits. Neither the provisions of this Plan nor the Payment provided for hereunder shall reduce any amounts otherwise payable to the
Participant under any incentive, retirement, stock option, stock bonus, stock ownership, group insurance or other benefit plan or arrangement. 
  
 5.2 Employment Status. This Plan does not constitute a contract of employment or impose on the Participant or the Participant’s Employer any
obligation to continue or retain the Participant as an Employee, to maintain the status of the Participant’s employment, or to continue the Employer’s policies regarding termination of employment (other than as provided in this Plan).

  
 ARTICLE VI 
 SUCCESSOR TO THE BANK 
  
 The Bank shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all
the business or assets of the Bank, expressly and 

 
unconditionally to assume and agree to perform the Bank’s obligations under this Plan, in the same manner and to the same extent that the Bank would be
required to perform if no such succession or assignment had taken place. 
  
 ARTICLE VII 
 DURATION, AMENDMENT AND TERMINATION 
  
 7.1 Duration. If a Change of Control has not occurred, this Plan
shall expire as of the Expiration Date, unless sooner terminated as provided in Section 7.2, or unless extended for an additional period or periods by resolution adopted by the Board of Directors of the Bank. Notwithstanding the foregoing, if a
Change of Control occurs, this Plan shall continue in full force and effect, and shall not terminate or expire until such date as all Participants who become entitled to Payments hereunder shall have received such Payments in full. 
  
 7.2 Amendment and Termination. The Plan may be terminated or amended
in any respect by the Board of Directors of the Bank, unless a Change of Control has previously occurred. If a Change of Control occurs, the Plan shall not be subject to any amendment, change, substitution, deletion, revocation or termination that
would adversely affect the rights of any Participant. 
  
 7.3
Form of Amendment. The form of any proper amendment or termination of the Plan shall be a written instrument signed by a duly authorized officer or officers of the Bank, certifying that the amendment or termination has been approved by the
Board of Directors. A proper amendment of the Plan automatically shall effect a corresponding amendment to each Participant’s rights hereunder. A proper termination of the Plan automatically shall effect a termination of all Participants’
rights and benefits hereunder. 
  
 7.4 No Attachment.

  
 (a) Except as required by law, no right to receive payments
under this Plan shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment by operation of law, and any attempt,
voluntary or involuntary, to affect such action shall be null, void, and of no effect. 
  
 (b) This Plan shall be binding upon, and inure to the benefit of, Employee and the Bank and their respective successors and assigns. 
  
 ARTICLE VIII LEGAL 
 FEES AND EXPENSES 
  
 All reasonable legal fees and other expenses paid or incurred by a Participant in connection with the resolution of any dispute or question of
interpretation relating to this Plan shall be paid or reimbursed by the Bank, if the position proposed by the Participant is adopted or substantially adopted in such matter. 
  
 ARTICLE IX 
 REQUIRED PROVISIONS 
  
 9.1
Termination. The Bank may terminate an Employee’s employment at any time, but any termination by the Bank after the events specified in Section 4.1 other than termination for Cause shall not prejudice the Employee’s right to
compensation or other benefits under this Plan, in accordance with the terms hereof. An Employee shall have no right to receive compensation or other benefits for any period after termination for Cause. 

 9.2 Regulatory Requirements. Notwithstanding any other provision in this Plan, (i) the Bank may
terminate or suspend this Plan and the employment of an Employee, as if such termination were for Cause, to the extent required by the applicable laws of the State of New York related to banking, by applicable federal law relating to deposit
insurance or bank holding companies or by regulations or orders issued by the New York State Banking Department, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation or other state or federal banking
regulatory agency having jurisdiction over PRTR or the Bank and (ii) no payment shall be required to be made to or for the benefit of an Employee under this Plan to the extent such payment is prohibited by applicable law, regulation or order issued
by a banking agency or a court of competent jurisdiction; provided, that it shall be the Bank’s burden to prove that any such action was so required. 
  
 SECRETARY’S CERTIFICATE 
  

I, Steven A. Covert, Secretary of SBU Bank, do hereby certify that the above plan was adopted by the Board of Directors of SBU Bank at a meeting of the
Board duly held on August 26, 2003. 
  
 Dated: August 26, 2003. 
  

			
	 SEAL:
	  	 /s/    Steven A. Covert        

	 	  	Secretary

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