Document:

Exhibit 10.1

 

SECOND AMENDMENT TO LOAN AND SECURITY
AGREEMENT

 

THIS SECOND AMENDMENT
TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is executed and entered into as of March 29, 2019 and
effective as of the Effective Date, by and among BLONDER TONGUE LABORATORIES, INC., a Delaware corporation (“Parent”),
R. L. DRAKE HOLDINGS, LLC, a Delaware limited liability company (“Drake”, and together with Parent, collectively
the “Borrowers”), BLONDER TONGUE FAR EAST, LLC, a Delaware limited liability (“Far East”,
and together with the Borrowers, collectively the “Credit Parties” and each a “Credit Party”),
the Lenders party hereto, and STERLING NATIONAL BANK, a national banking association, as administrative and collateral agent (in
such capacity, and including its successors and permitted assigns, the “Administrative Agent”) for the Lender
Parties.

 

W I T N E S S E T H:

 

WHEREAS, the Credit
Parties, the Lenders and Administrative Agent entered into that certain Loan and Security Agreement dated as of December 28, 2016
(the “Original Loan Agreement”, and as amended hereby and as the same may be further amended, restated, supplemented
or otherwise modified from time to time, the “Loan Agreement”), for the purposes and consideration therein expressed;

 

WHEREAS, the Parent
and its consolidated Subsidiaries failed to satisfy the Fixed Charge Coverage Ratio financial covenant set forth in Section 9.14(a)
of the Original Loan Agreement for the Fiscal Months ending December 31, 2018 and January 1, 2019, each of which failures constitutes
an Event of Default under and as defined in Section 10.1(c)(i) of the Loan Agreement (collectively, the “Existing Events
of Default”); and

 

WHEREAS, the Credit
Parties have requested, and the Administrative Agent and Lenders have agreed, to waive the Existing Events of Default and amend
certain provisions of the Original Loan Agreement, all in accordance with the terms and subject to the conditions set forth herein;

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants and agreements contained herein and in the Original Loan Agreement, in consideration
of the loans which may hereafter be made by the Lenders to Borrowers, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows:

 

Article
I

DEFINITIONS AND REFERENCES

 

Section 1.1.
Terms Defined in the Original Loan Agreement. Unless the context otherwise requires or unless otherwise expressly
defined herein, the terms defined in the Original Loan Agreement shall have the same meanings whenever used in this Amendment.

 

    
Second Amendment to Loan and Security Agreement – Page 1

     

    

 

Article
II

AMENDMENTS TO ORIGINAL LOAN AGREEMENT

 

Section 2.1.
Unrestricted Cash on Hand. The following defined term is hereby added to Section 1.1 of the Original Loan Agreement
in the proper alphabetical order:

 

“Unrestricted
Cash on Hand” means, as of any date of determination, the aggregate amount of cash of Credit Parties that is properly
classified as “unrestricted cash” for purposes of GAAP as of such date and excluding any and all cash that is subject
to any Lien (other than Liens securing the Obligations) or is subject to any restrictions on the use thereof to pay Debt and other
obligations of the Credit Parties.

 

Section 2.2.
Minimum Liquidity. Clause (a) of Section 9.14 of the Original Loan Agreement is hereby amended and restated as follows:

 

(a) Credit
Parties shall not permit the sum of (i) Unrestricted Cash on Hand plus (ii) Availability to be less than $2,000,000 at any
time.

 

Section 2.3.
Availability. Clause (c) of Section 9.14 of the Original Loan Agreement is hereby deleted in its entirety.

 

Article
III

WAIVER; FEES, COSTS AND EXPENSES

 

Section 3.1.
Waiver. The Credit Parties acknowledge that the Existing Events of Default have occurred and are continuing under
the Original Loan Agreement. Subject to satisfaction of the conditions precedent set forth in Article IV hereof, the Administrative
Agent hereby waives and elects to forego exercising rights and remedies in respect of the Existing Events of Default. The Credit
Parties hereby agree that, except as expressly set forth in this Article III, nothing in this Amendment, or the performance by
the parties of their respective obligations hereunder, constitutes or shall be deemed to constitute a waiver of any of the rights
or remedies of the Administrative Agent or the Lenders under the terms of the Loan Agreement, any other Loan Document or Applicable
Law, all of which are hereby reserved. The Credit Parties acknowledge that the Administrative Agent and Lenders are not waiving
any Default or Event of Default other than the Existing Events of Default. Nothing herein shall be implied or construed to modify
the terms of the Loan Documents except as expressly provided herein or to obligate Administrative Agent or Lenders to grant any
further waivers, consents or enter into any additional amendments or modifications of the Loan Agreement or any other Loan Document.

 

    
Second Amendment to Loan and Security Agreement – Page 2

     

    

 

Section 3.2.
No Other Waiver or Course of Dealing. Credit Parties hereby acknowledge and agree that irrespective of (i) the amendments
and waivers granted herein, (ii) any amendments, consents, waivers or forbearances previously granted by Administrative Agent or
any Lender regarding the Loan Documents; (iii) any previous failures or delays of Administrative Agent or any Lender in exercising
any right, power or privilege under the Loan Documents or Administrative Agent or any Lender making of any Loans or other extensions
of credit during any period of the existence of a Default or an Event of Default; or (iv) any previous failures or delays of Administrative
Agent or any Lender in the monitoring or in the requiring of compliance by Credit Parties with the duties, obligations and agreements
of Credit Parties under the Loan Documents, hereafter each Credit Party will be expected to comply strictly with its duties, obligations
and agreements under the Loan Documents. Further, the amendments, consents, waivers, forbearances, failures, delays, Loans and
extensions of credit described in the foregoing clauses (i) through (iv) shall not constitute a waiver of any past, present or
future violation, Default or Event of Default of any Credit Party or any other Person under the Loan Documents, except for the
amendments, consents and waivers expressly provided for in this Amendment and shall not directly or indirectly in any way whatsoever
either: (a) impair, prejudice or otherwise adversely affect Administrative Agent’s or any Lender’s right at any time
to exercise any right, privilege or remedy in connection with the Loan Documents or any other contract or instrument; or (b) amend
or alter any provision of the Loan Documents or any other contract or instrument; or (c) constitute any course of dealing or other
basis for altering any obligation of any Credit Party or any other Person or any right, privilege or remedy of Administrative Agent
or any Lender under the Loan Documents or any other contract or instrument; or (d) constitute any consent by Administrative Agent
or any Lender to any prior, existing or future violations of the Loan Documents.

 

Section 3.3.
Fees, Costs and Expenses. In consideration of the agreements of Administrative Agent and Lenders set forth herein,
including without limitation the waivers set forth above in this Article III, Borrowers hereby agree to pay to Administrative Agent,
for the benefit of itself and the Lenders, an amendment and waiver fee of $15,000 on the date first set forth above, which fee
shall be allocated among the Administrative Agent and the Lenders as the Administrative Agent and the Lenders shall determine.
Additionally, Borrowers hereby reaffirm their agreement under the Loan Agreement to pay or reimburse Administrative Agent on demand
for all costs and expenses incurred by Administrative Agent in connection with the Loan Documents, including without limitation
all reasonable fees and disbursements of Administrative Agent’s legal counsel. Without limiting the generality of the foregoing,
Borrowers specifically agree to pay all fees and disbursements of counsel to Administrative Agent for the services performed by
such counsel in connection with the preparation of this Amendment and the documents and instruments incidental hereto. Credit Parties
hereby agree that Administrative Agent may, at any time or from time to time in its sole discretion and without further authorization
by Credit Parties, make one or more Revolving Loans to Borrowers under the Loan Agreement, or apply the proceeds of any Revolving
Loan, for the purpose of paying such amendment and waiver fee and any other such fees, disbursements, costs and expenses in connection
with this Amendment.

 

Article
IV

CONDITIONS OF EFFECTIVENESS

 

Section 4.1.
Effective Date. This Amendment shall become effective as of the date of this Amendment once the following conditions
precedent have been satisfied in full (the “Effective Date”):

 

(a) Administrative
Agent shall have received, at Administrative Agent’s office, a duly executed counterpart of this Amendment, executed by
the Credit Parties;

 

    
Second Amendment to Loan and Security Agreement – Page 3

     

    

 

(b) Borrowers
shall have paid, in immediately available funds, to the Administrative Agent (for the account of the Lenders) an amendment
fee in the amount of $15,000; and

 

(c) No
Default or Event of Default shall have occurred and be continuing, except for the Existing Events of Default.

 

Article
V

REPRESENTATIONS AND WARRANTIES

 

Section 5.1.
Representations, Warranties and Additional Covenants of Credit Parties. In order to induce Administrative Agent and
the Lenders to enter into this Amendment, each Credit Party represents
and warrants to Administrative Agent and the Lenders that:

 

(a) After
giving effect to this Amendment, the representations and warranties of such Credit Party contained in the Original Loan
Agreement are true and correct at and as of the time of the effectiveness hereof; provided, however, those
representations and warranties containing a reference to a particular date shall continue to be qualified by reference to
such date.

 

(b) Each Credit Party
is duly authorized to execute and deliver this Amendment and is and will continue to be duly authorized to perform its
obligations under the Loan Agreement and the other Loan Documents to which it is a party. Each Credit Party has duly taken
all limited liability company or corporate (as applicable) action necessary to authorize the execution and delivery of this
Amendment and to authorize the performance of the obligations of such Credit Party hereunder. The Borrowers are and will
continue to be authorized to borrow under the Loan Agreement.

 

(c) The execution and delivery by each Credit Party of this Amendment, the performance by such Credit Party of its obligations
hereunder and the consummation of the transactions contemplated hereby do not and will not conflict with any provision of Applicable
Law, or of the certificate of formation or incorporation, bylaws, operating agreement or other charter documents of such Credit
Party, or of any material agreement, judgment, license, order or permit applicable to or binding upon such Credit Party, or result
in the creation of any Lien upon any assets or properties of such Credit Party. Except for those which have been duly obtained
and are in full force and effect, no consent, approval, authorization or order of any court or governmental authority or third
party is required in connection with the execution and delivery by any Credit Party of this Amendment or to consummate the transactions
contemplated hereby.

 

(d) When duly executed and delivered, this Amendment will be a legal and binding instrument and agreement of each Credit Party,
enforceable against such Credit Party in accordance with its terms, except as limited by bankruptcy, insolvency and similar laws
applying to creditors’ rights generally and by principles of equity applying to creditors’ rights generally.

 

(e) After
giving effect to this Amendment, no Default or Event of Default exists under the Loan Agreement or any of the other Loan
Documents, and Credit Parties are in full compliance with all covenants and agreements contained therein

 

    
Second Amendment to Loan and Security Agreement – Page 4

     

    

 

Article
VI

MISCELLANEOUS

 

Section 6.1.
Ratification of Agreement. The Original Loan Agreement as hereby amended is hereby ratified and confirmed in all
respects. Any reference to the Loan Agreement in any Loan Document shall be deemed to refer to this Amendment also. The execution,
delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of Administrative Agent
or Lenders under the Loan Agreement or any other Loan Document nor constitute a waiver of any provision of the Loan Agreement or
any other Loan Document.

 

Section 6.2.
Ratification of Guaranty. Far East hereby: (i) confirms and agrees that, notwithstanding this Amendment and consummation
of the transactions contemplated hereby, the Guaranty Agreement dated as of December 28, 2016 and executed by Far East (the “Far
East Guaranty”) and all of Far East’s covenants, obligations, agreements, waivers and liabilities under the Far
East Guaranty continue in full force and effect in accordance with their terms with respect to the obligations guaranteed, as the
same may be modified by this Amendment; (ii) reaffirms its waivers of each and every one of the defenses to such obligations as
set forth in the Far East Guaranty; (iii) reaffirms that Far East’s obligations under the Far East Guaranty are separate
and distinct from the obligations of any other party under the Loan Agreement (as modified by this Amendment) and the other Loan
Documents; and (iv) waives any defense which might arise due to the execution and delivery of this Amendment, and the performance
of the terms hereof or of the Loan Agreement (as modified by this Amendment).

 

Section 6.3.
Survival of Agreements. All representations, warranties, covenants and agreements of Credit Parties herein shall
survive the execution and delivery of this Amendment and the performance hereof, and shall further survive until all of the Obligations
are paid in full. All statements and agreements contained in any certificate or instrument delivered by any Credit Party hereunder
or under the Loan Agreement to Administrative Agent shall be deemed to constitute representations and warranties by, or agreements
and covenants of, such Credit Party under this Amendment and under the Loan Agreement.

 

Section 6.4.
Loan Documents. This Amendment is a Loan Document, and all provisions in the Loan Agreement pertaining to Loan Documents
apply hereto.

 

Section 6.5.
Governing Law. This Amendment shall be construed in accordance with the substantive laws of the State of New York
and the obligations, rights and remedies of the parties hereto shall be determined in accordance with such laws without giving
effect to the conflicts of laws principles thereof, but including Sections 5.1401 and 5.1402 of the General Obligations Law.

 

Section 6.6.
Counterparts; Fax. This Amendment may be separately executed in counterparts and by the different parties hereto
in separate counterparts, each of which when so executed shall be deemed to constitute one and the same Amendment. This Amendment
may be duly executed and delivered by facsimile transmission, electronic mail, or other electronic means.

 

    
Second Amendment to Loan and Security Agreement – Page 5

     

    

 

Section 6.7.
Release. Each Credit Party, on behalf of itself and, as applicable, such Credit Party’s predecessors, successors,
successors-in-interest, partners, members, shareholders, managers, directors, officers, heirs, beneficiaries, agents and assigns
(each, a “Releasing Person” and collectively, the “Releasing Persons”): (i) does hereby forever
RELEASE, ACQUIT, REMISE and FOREVER DISCHARGE each Lender Party and their respective Affiliates, Equity Interest owners, present
and former officers, directors, stockholders, members, managers, employees, attorneys, agents and other representatives, and the
respective predecessors, successors, successors-in-interest, assigns, heirs, and representatives of each of the foregoing (each,
a “Releasee” and collectively, the “Releasees”) from any and all actions, causes of action,
counterclaims, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, covenants, contracts, controversies, agreements,
promises, variances, trespasses, damages, judgments, extents, executions, rights, claims, demands, liabilities, losses, rights
to reimbursement, subrogation, indemnification or other payment, costs or expenses, and reasonable attorneys’ fees, whether
in law or in equity, of any nature whatsoever, known or unknown, suspected or unsuspected, fixed or contingent, and whether representing
a past, present or future obligation of the Releasees, or any of them, that any of the Releasing Persons ever had from the beginning
of time, may have or hereafter can, may or shall have against the Releasees, or any of them, which have arisen or accrued prior
to or as of the date of this Amendment, in each case to the extent in any way relating to or arising out of or in connection with:
(a) any of the Obligations or the Loan Documents; (b) any of the transactions consummated under any of the Loan Documents; (c)
the making of any Loan or the use of the proceeds thereof; (d) the Collateral; (e) the exercise by any Lender Party of any right
or remedy under or with respect to the Loan Documents, the Obligations, or the Collateral; (f) the conduct of the relationship
between or among any one or more of the Lender Parties and Credit Parties (or any one or more of them); (g) fraud, dominion, control,
alter ego, instrumentality, misrepresentation, NEGLIGENT MISREPRESENTATION, duress, coercion, undue influence, interference, NEGLIGENCE
OR GROSS NEGLIGENCE, business interruption or lost profits, slander, libel or damage to reputation; (h) estoppel, promissory estoppel
or waiver; (i) usury or penalty or damages therefor, from any advances or loans, or from the contracting for, charging, taking,
reserving, collecting or receiving interest in excess of the highest lawful rate; (j) intentional or negligent infliction of mental
distress, tortious interference with contractual relations, tortious interference with governance or prospective business advantage,
or mistake; (k) any act, failure to act, event, omission, transfer, payment or transaction occurring on or prior to the date of
this Amendment; (l) any fee, penalty or payment charged or paid under or in connection with the Loan Documents or this Amendment;
or (m) the negotiation of this Amendment and any Loan Documents (each a “Claim” and collectively, “Claims”)
and (ii) does hereby agree and covenant not to assert or prosecute any Claims against any or all of the Releasees.THIS AMENDMENT
AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

 

THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN THE PARTIES.

 

[The
remainder of this page is intentionally left blank]

 

 

    
Second Amendment to Loan and Security Agreement – Page 6

     

    

 

IN WITNESS WHEREOF,
this Amendment is duly executed and delivered as of the date first above written.

 

	 	BLONDER TONGUE LABORATORIES, INC., as a Borrower and a Credit Party
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	R. L. DRAKE HOLDINGS, LLC, as a Borrower and a Credit Party
	 	 	
	 	By:	                
	 	Name: 	 
	 	Title:	 
	 	 	 
	 	BLONDER TONGUE FAR EAST, LLC, as a Guarantor and a Credit Party
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

Second
Amendment to Loan and Security Agreement – Signature Page

     

     

    

 

	 	STERLING NATIONAL BANK, as Administrative Agent, Swing Lender and Lender
	 	 	 
	 	By:	 
	 	Name: 	              
	 	Title:	 

 

 

Second
Amendment to Loan and Security Agreement – Signature PageExhibit 10.1

PERFORMANCE
AWARD

RESTRICTED STOCK
UNITS

 

Granted by

 

SALISBURY
BANCORP, INC.

 

under the

 

SALISBURY BANCORP, INC.

2017 LONG TERM INCENTIVE
PLAN

 

This Performance
Award Agreement for Restricted Stock Units (“Performance Award” or “Agreement”) is and will
be subject in every respect to the provisions of the 2017 Long Term Incentive Plan (the “Plan”) of Salisbury
Bancorp, Inc. (the “Corporation”) which are incorporated herein by reference and made a part hereof, subject
to the provisions of this Agreement. A copy of the Plan has been provided or made available to each person granted a Performance
Award pursuant to the Plan. The holder of this Performance Award (the “Participant”) hereby accepts this Performance
Award, subject to all the terms and provisions of the Plan and this Agreement, and agrees that all decisions under and interpretations
of the Plan and this Agreement by the Compensation Committee of the Board of Directors of the Corporation (“Committee”)
will be final, binding and conclusive upon the Participant and the Participant’s heirs, legal representatives, successors
and permitted assigns. Capitalized terms used herein but not defined will have the same meaning as in the Plan.

 

	1.	Name of Participant.______________________________________________
	 	 
	2.	Date of Grant. _________, 20__.
	 	 
	 	Tangible Book Value. __________,
20___$_________ (unaudited)
	 	 
	3.	Target number of shares of Corporation common stock, $0.10 par value per share, covered by the
Performance Award. 

(subject to adjustment pursuant to Section 9 hereof).

	4.	Restricted Stock Unit.
	 	 
	 	A Restricted Stock Unit is an
Award denominated in shares of Stock, except that no shares of Stock are actually awarded to the Participant on the date of grant.
The Restricted Stock Units will be credited to the Participant’s account, subject to the terms of the Plan and this Agreement.
A Restricted Stock Unit will be settled in shares of the Corporation’s Stock.
	 	 
	5.	Performance Goal(s)/Vesting Schedule. Except as otherwise provided in this Agreement, this
Performance Award is earned at the end of the measurement period (sometimes referred to herein as the “performance period”)
based on the level of achievement of the performance goal(s). The measurement period for the Award is the three (3) calendar years
from 2019 through 2021. The determination date for purposes of vesting of the Award will be no later than March 15, 2022 (or as
soon thereafter during 2022 as achievement or non-achievement of the performance measure can be determined, with any earlier or
delayed date being deemed the “determination date”). In order to vest in the Award: (i) the Committee must certify
in writing, the level at which the performance measure was, in fact, satisfied and (ii) the Participant must be employed on the
determination date, unless vesting is accelerated due to the Participant’s death or Disability or involuntary termination
of service in connection with or following a Change in Control.
	 	 
	 	The performance
measure for this Award is based on the increase in the Corporation’s tangible book value (“TBV”)over
the three-year measurement period. The threshold increase in TBV in order to receive an Award is $3.50. No portion of the Award
will be earned if the increase in TBV at the end of the measurement period is less than $3.50. One Hundred Percent (100%) of the
Award (the “target payout”) will be earned if the increase in TBV for the measurement period is $5.00, and an Award
will be earned in excess of the target payout if growth in TBV exceeds $5.00. The actual number of Restricted Stock Units earned
will be scaled, based on actual performance over the measurement period versus the stated goals. For further information regarding
the percentage of the Award that may be earned at various levels of TBV growth, please refer to Appendix A.

		6.	Terms and Conditions.

		6.1	Dividend Equivalent Rights. If set forth in the Committee’s grant resolutions and noted
by checking the box below, Dividend Equivalent Rights
	 	 	 
	 	 	☐ will  
                              ☐ will not
	 	 	 
	 	 	be paid on Restricted Stock Units.
If Dividend Equivalent Rights are to be paid on the Restricted Stock Units, any such Dividend Equivalent Rights shall be credited
by the Corporation to an account for the Participant and accumulated, with interest for each calendar year (or portion thereof)
at an annual rate equal to the dividend yield rate for the immediately preceding calendar year, until the date upon which the underlying
Restricted Stock Unit becomes vested.

		6.2	Voting Rights. The Participant will have no voting right with respect to any Restricted Stock Unit
granted hereunder.

	7.	Delivery of Shares.
	 	 
	 	Delivery of shares of Stock under
this Performance Award will comply with all applicable laws (including, the requirements of the 1934 Act), and the applicable requirements
of any securities exchange or similar entity.

	8.	Change in Control.
	 	 	 
		8.1	In the event of a Participant’s involuntary termination of service (including a termination
for Good Reason) on the effective date of or within twenty-four (24) months following a Change in Control, the Participant will
vest in a portion or all of this Award, based upon an assumed achievement of the performance goals at the greater of the target
level or actual achievement level (measured at the date of the Change in Control) multiplied by a fraction, the numerator
of which is the actual whole or partial months that have expired in the three-year performance period at the time of the Participant’s
termination of service and the denominator of which is 36. In either case, there shall be a prorated payout to the Participant
as soon as reasonably practicable but in no event later than 60 days following the Participant’s termination of service (unless
a later date is required by Section 15.3 of the Plan).

 

		8.2	In the event of a Change in Control in which the Corporation is not the surviving entity, if the
Participant continues in employment with the surviving entity and the Performance Awards are assumed by the surviving entity, the
Performance Awards hereunder held by the Participant shall remain outstanding for the remainder of the three-year performance period
and shall be deemed to be earned at the end of the performance period at the greater of the target level or actual achievement
level (measured at the date of the Change in Control), subject to accelerated vesting in the event of the Participant’s death
(under Section 10.1(i) below), Disability (under 10.1(ii) below), or involuntary termination of service (under Section 8.1 above).

 

		8.3	In the event of a Change in Control in which the Corporation is not the surviving entity, if the
Performance Awards are not assumed by the surviving entity, then the vesting of the Awards will accelerate and be paid in the same
manner as under Section 8.1 (as if the Participant had an involuntary termination of service on the date of the Change in Control).

 

		8.4	A “Change in Control” will be deemed to have occurred as provided in Section 2.1(i)
of the Plan.
	 	 	 
	9.	Adjustment Provisions.
	 	 	 
	 	This Performance Award will be adjusted, in accordance with Appendix A, based on actual achievement at the end of the measurement period.
	 	 	 
	 	In addition, this Performance Award, including the number of shares of Stock subject to the Restricted Stock Units, will be adjusted upon the occurrence of the events specified in, and in accordance with the provisions of, Section 13.1 of the Plan. This Performance Award may also be adjusted, in the sole discretion of the Committee, pursuant to the terms of Sections 9.2(b) (other than those governing Awards subject to Code Section 162(m) and13.2 of the Plan).
	 	 	 
	10.	Effect of Termination of Service on Performance Award.
	 	 	 
	 	10.1	This
Performance Award will vest as follows:

		(i)	Death. In the event of the Participant’s termination
of service by reason of the Participant’s death, all Restricted Stock Units will vest at the target level at the date of
termination of service. 

		(ii)	Disability. In the event of the Participant’s termination
of service by reason of Disability, all Restricted Stock Units will vest at the target level, at the date of termination of service.

		(iii)	Retirement. In the event of the Participant’s termination
of service by reason of retirement, Restricted Stock Units that are granted as Performance Awards hereunder shall vest as follows:
vesting shall not be accelerated to the retirement date, but at the end of the measurement period, the Participant may vest in
a portion of the remaining Award on a pro rata basis by multiplying: (i) the number of shares of Stock earned based on the TBV
growth achieved over the measurement period (as set forth on Appendix A) and (ii) the percentage of the measurement period that
the Participant served prior to retirement (i.e., 18 months equals 50%). For these purposes, a participant will be deemed to have
a termination of service due to “retirement” if the Participant terminates Service voluntarily on or after attainment
of age sixty-two (62) with five years of service with the Corporation or the Bank. Notwithstanding anything herein to the contrary,
the Participant shall not be eligible for, or shall forfeit the entire Award if the Participant violates the terms of the noncompete
requirements set forth in Section 11.6 hereof.

		(iv)	Termination for Cause. If the Participant’s Service
has been terminated for Cause, all Restricted Stock Units granted to a Participant hereunder will expire and be forfeited.

		(v)	Other Termination. If a Participant terminates Service for
any reason other than due to death, Disability, retirement, for Cause, or an involuntary termination all shares of Restricted Stock
Units awarded to the Participant hereunder which have not vested as of the date of termination of service will expire and be forfeited.

	11.	Miscellaneous.
	 	 	 
		11.1	No Performance Award will confer upon the Participant any rights as a stockholder of the Corporation
prior to the date on which the individual fulfills all conditions for receipt of such rights and shares of Stock are transferred
to the Participant.

		11.2	This Agreement may not be amended or otherwise modified unless evidenced in writing and signed
by the Corporation and the Participant.

		11.3	Restricted Stock Units are not transferable prior to the time such Awards vest in the Participant.

		11.4	This Performance Award will be governed by and construed in accordance with the laws of the State
of Connecticut.

		11.5	This Performance Award is subject to all laws, regulations and orders of any governmental authority
which may be applicable thereto and, notwithstanding any of the provisions hereof, the Corporation will not be obligated to issue
any shares of Stock hereunder if the issuance of such shares would constitute a violation of any law, regulation or order or any
provision thereof.

		11.6	In order to be eligible for any portion of this Performance Award following a termination of service
due to retirement, the Participant shall not, for a period of one year after termination of service, become
an officer, employee, consultant, director, independent contractor, agent, sole proprietor, joint venturer,
greater than 5% equity-owner or stockholder, partner or trustee of any savings bank, savings and loan association, savings and
loan holding company, credit union, bank or bank holding company, insurance company or agency, any mortgage or loan broker or any
other entity that has headquarters or offices within fifteen (15) miles of the locations in which the Bank or its affiliates
has business operations or has filed an application for regulatory approval to establish an office as of the date of Participant’s
termination; provided, however, that this restriction shall not apply if the Participant’s
retirement occurs contemporaneously with or following a Change in Control.

		11.7	The granting of this Performance Award does not confer upon the Participant any right to be retained
in the employ of the Corporation or any subsidiary.

		11.8	Subject to written consent by the Committee, the Participant
shall have the right to direct the Corporation (or an Affiliate) to collect federal, state and local income taxes and the employee
portion of FICA taxes (Social Security and Medicare) with respect to any Restricted Stock Unit Award in accordance with Section
15.2 of the Plan. Notwithstanding the foregoing, the Corporation shall have the right to require the Participant to pay the Corporation
(or Affiliate) the amount of any tax that the Corporation (or Affiliate) is required to withhold with respect to the settlement
of the Restricted Stock Unit or sell without notice, a sufficient number of shares of Stock received upon settlement of the Restricted
Stock Unit to cover the maximum amount required to be withheld under applicable law. 

		11.9	To the extent any provision of this Agreement conflict with the terms of the Plan, the terms of
the Plan shall control, provided, however, that the provisions of Section 9.2(c) of the Plan pertaining to Section 162(m) of the
Code shall not apply to this Performance Award.

[Signature Page
Follows]

    	 

    	 

    

IN WITNESS WHEREOF, the Corporation has
caused this Agreement to be executed in its name and on its behalf as of the date of grant of this Performance Award set forth
above.

SALISBURY
BANCORP, INC.

By: __________________________

Its: __________________________

 

PARTICIPANT’S ACCEPTANCE

The undersigned
hereby accepts the foregoing Performance Award and agrees to the terms and conditions hereof, including the terms and provisions
of the 2017 Long Term Incentive Plan. The undersigned hereby acknowledges receipt of a copy of the Corporation’s 2017 Long
Term Incentive Plan.

 

Participant

______________________________

 

 

    	 

    	 

    

APPENDIX A

Grant:                1,000
Restricted Stock Units (Performance Based)

 

	
        TBV 

        Growth
	
        Payout

        %
	
         

        Shares

	$3.50	75.00%	750
	$3.60	76.67%	767
	$3.70	78.33%	783
	$3.80	80.00%	800
	$3.90	81.67%	817
	$4.00	83.33%	833
	$4.10	85.00%	850
	$4.20	86.67%	867
	$4.30	88.33%	883
	$4.40	90.00%	900
	$4.50	91.67%	917
	$4.60	93.33%	933
	$4.70	95.00%	950
	$4.80	96.67%	967
	$4.90	98.33%	983
	$5.00	100%	1,000
	$5.10	101.67%	1,017
	$5.20	103.33%	1,033
	$5.30	105.00%	1,050
	$5.40	106.67%	1,067
	$5.50	108.33%	1,083
	$5.60	110.00%	1,100
	$5.70	111.67%	1,117
	$5.80	113.33%	1,133
	$5.90	115.00%	1,150
	$6.00	116.67%	1,167
	$6.10	118.33%	1,183
	$6.20	120.00%	1,200
	$6.30	121.67%	1,217
	$6.40	123.33%	1,233
	$6.50	125%	1,250
	$6.60	126.67%	1,267
	$6.70	128.33%	1,283
	$6.80	130.00%	1,300
	$6.90	131.67%	1,317
	$7.00	133.33%	1,333
	$7.10	135.00%	1,350
	$7.20	136.67%	1,367
	$7.30	138.33%	1,383
	$7.40	140.00%	1,400
	$7.50	141.67%	1,417
	$7.60	143.33%	1,433
	$7.70	145.00%	1,450
	$7.80	146.67%	1,467
	$7.90	148.33%	1,483
	$8.00	150%	1,500

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}]]