Document:

Exhibit 10.12

 

SALISBURY BANCORP, INC.

2011 LONG TERM INCENTIVE PLAN

______________________

 

Amendment Number Two

______________________

 

THIS AMENDMENT
NUMBER TWO (the “Amendment”) to the Salisbury Bancorp, Inc. 2011 Long Term Incentive Plan (the “Plan”)
is made by Salisbury Bancorp, Inc. (the “Company”) effective as of the 29th day of January, 2016.

 

WHEREAS, the
Company maintains the Plan; and

 

WHEREAS, the Compensation
Committee of the Company (the “Committee”) desires to amend the Plan in order to increase the number of shares granted
annually to each Director as the Director’s Annual Stock Retainer from 240 shares to 340 shares; and

 

WHEREAS, Section 4.3(j)
of the Plan authorizes the Committee to amend the Plan.

 

NOW, THEREFORE,
the Amendment is hereby adopted as follows:

 

		1.	Subsection 13.2(a) of the Plan is hereby
amended to read as follows:

 

“(a) “Annual Stock Retainer”
means the 340 shares of Stock payable to each Director on an annual basis as part of each Director’s compensation for service
on the Board.”

 

		2.	Subsection 13.2(f) of the Plan is hereby
amended to read as follows:

 

“(f)“Pro-Rated Stock
Retainer” means a number of Shares equal to 340 multiplied by a fraction, the numerator of which is the number of months
of such a new Director’s service as a member of the Board (rounded to the nearest full month) and the denominator of which
is 12, provided, however, that such fraction shall not be in excess of 1.0.”

 

		3.	Section 13.4 of the Plan is hereby amended
to read as follows:

 

“NUMBER OF SHARES AND GRANT
DATE. On each annual Grant Date beginning with the first Grant Date after the Effective Date, each Director whose term of office
begins with or continues after such Grant Date shall be issued a number of whole shares of Stock set forth in the Annual Stock
Retainer (340 shares). Each Director who is first elected to the Board after the Effective Date (and who was not then a member
of the Board) other than on an Annual Meeting Date shall be granted a number of whole shares of Stock equal to the Pro-Rated Stock
Retainer.”

 

 

IN WITNESS WHEREOF,
this Amendment has been executed as of the date set forth below.

 

 

	 	 	 	SALISBURY BANCORP, INC.
	 	 	 	 
	 	 	 	 
	Date: January 29, 2016	 	By:	___________________________________
	 	 	 	Print Name:  Richard J. Cantele, Jr.
	 	 	 	Title:  President and Chief Executive OfficerExhibit 10.13

 

Salisbury
Bank and Trust Company

Form
of Split Dollar Agreement for Executives

Participant
Election Form

I, _____________________________,
an Employee designated as set forth in Article 2 of the Salisbury Bank and Trust Company Split Dollar Insurance Plan (the
“Plan”), hereby elect to become a Participant of this Plan according to Article 2 of the Plan.

Additionally,
I acknowledge that I have read the Plan document and understand that commencement of participation is contingent on issuance of
an insurance policy or policies applied for by the Bank on my life which names the Bank as beneficiary. I further agree to be bound
by the terms of the Plan.

Executed this
______ day of ______________________, 201__

	
        

        

                                                                        

        Participant

         
	 
	 	 

 

Acknowledged by the Plan Administrator
this ________ day of ___________________, 201___

	By:                                                           	 
	Title:                                                        	 

 

 

    	 	 	 

     

    

SPLIT
DOLLAR POLICY ENDORSEMENT

AND

BENEFICIARY DESIGNATION FORM

Insured:

MetLife                                           Policy #

 

Supplementing and amending the application
of Salisbury Bank and Trust Company to MetLife (“Insurer”) with respect to the policy(ies) identified above, the applicant
requests and directs that:

BENEFICIARIES

1.Subject
to Section 2 below and the Salisbury Bank and Trust Company Split Dollar Insurance Plan (the “Plan”), the terms and
conditions of which are incorporated by reference herein:

(a)
The beneficiary designated by the Insured, or his/her transferee, shall be the beneficiary of an amount equal to three (3) times
base annual salary, not to exceed $400,000, less $50,000.  (For example: A base annual salary of $150,000 would provide for
a Death Benefit under this Agreement of: $150,000 x 3 = $450,000, reduced to maximum of $400,000, less $50,000 = $350,000) on the
date of the Insured’s death prior to termination of employment. The benefit shall be paid to the Beneficiary in a lump sum
within sixty (60) days following the Participant’s death.

(b)
If the Participant’s employment with the Bank terminates on or after the Participant attains Normal Retirement Age, the beneficiary
designated by the Insured, or his/her transferee, shall be the beneficiary of an amount equal to a multiple of final base annual
salary, not to exceed $400,000, less $50,000 on the date of the Insured’s death prior. The benefit shall be paid to the Beneficiary
in a lump sum within sixty (60) days following the Participant’s death. The multiple under this paragraph shall be:

	Age 65 through Age 71	1.5 times Final Base Salary
	Age 72 through Age 79	1.0 times Final Base Salary
	Age 80 and After	0.5 times Final Base Salary

 

2.Notwithstanding
Section 1 above, the benefit shall never exceed the Net at Risk. The Net at Risk insurance portion is the total proceeds less the
cash value of the Policy(ies).

3.The beneficiary
of any remaining death proceeds shall be the Salisbury Bank and Trust Company or any successor thereto.

OWNERSHIP

4.The Owner
of the policy(ies) shall be Salisbury Bank and Trust Company. The Owner shall have all ownership rights in the policy(ies) except
as may be specifically granted to the Insured or his/her transferee in paragraph (1) of this endorsement.

5. The Insured
or his/her transferee shall have the right to assign all rights and interests in the policy(ies) with respect to that portion of
the death proceeds designated in paragraph (1) of this endorsement, and to exercise all settlement options with respect to such
death proceeds.

MODIFICATION
OF ASSIGNMENT PROVISIONS OF THE POLICY

Upon the death of the Insured, the interest
of any collateral assignee of the Owner of the policy(ies) designated in paragraph (4) above shall be limited to the portion of
the proceeds described in paragraph (3) above.

    	 

    	 

    

OWNERS
AUTHORITY

The Insurer
is hereby authorized to recognize the Owner’s claim to rights hereunder without investigating the reason for any action taken
by the Owner, including its statement of the amount of premiums it has paid on the policy(ies). The signature of the Owner shall
be sufficient for the exercise of any rights under this Endorsement and the receipt of the Owner for any sums received by it shall
be a full discharge and release to the Insurer. Any transferee’s rights shall be subject to this Endorsement.

Signed this _____ day of _________________,
201___ .

	
        SALISBURY BANK AND TRUST COMPANY

        By: _____________________________

Its: _____________________________
	 

 

Acceptance and Beneficiary Designation

The Insured accepts and agrees to the
foregoing and, subject to the rights of the Owner as stated above, make the following beneficiary designation(s) to receive the
portion of the proceeds described in paragraph (1) above:

		A.	Primary Beneficiary/ies

Name/Address/Telephone ___________________________________

________________________________________________________

Relationship to Participant ___________________________________

% of Plan Benefit __________________________________________

Date of Birth ______________________________________________

Social Security Number _____________________________________

		B.	Contingent Beneficiary/ies (Will receive indicated portions of the proceeds if no Primary Beneficiary/ies
survive the Participant)

Name/Address/Telephone ___________________________________

________________________________________________________

Relationship to Participant___________________________________

% of Plan Benefit __________________________________________

Date of Birth ______________________________________________

Social Security Number _____________________________________

	
         

        Signed this ______ day of ________________, 201____.

        _________________________________________

Insured
	 

 

 

	
        Accepted by the Plan Administrator or its designated
agent this ______ day of ________________, 201____.

         

         _____________________________________

Signature

        

        ______________________________________

        Print Name

         

        ______________________________________

        Title
	 

 

    	 	 	 

     

    

 

Schedule to Form of Split Dollar Agreement

 

The Split Dollar Agreement with Named Executive
Officer, Richard J. Cantele, Jr., President and CEO is substantially the same as the above agreement, except the post retirement
benefit is 1.5 times Final Base Salary and does not decline with age.Exhibit 10.14

 

EMPLOYMENT AGREEMENT

by and between

SALISBURY BANK AND TRUST COMPANY

and

 

JOHN DAVIES

 

This Employment Agreement (this “Agreement”),
which is contingent upon consummation of the Merger, as defined herein, and which shall be effective upon the Effective Time of
the Merger (the “Effective Date”), is made and entered into on March 18, 2014, by and between Salisbury Bank and Trust
Company, a Connecticut-chartered commercial bank with its principal administrative office at 5 Bissell Street, Lakeville, CT 06039-1868
(together with its successors and assigns, the “Bank”) and John Davies (“Executive”). Any reference to
the “Company” hereunder shall mean Salisbury Bancorp, Inc. (together with its successors and assigns), the parent of
the Bank that owns 100% of the Bank.

 

RECITALS

 

WHEREAS, the Bank, the Company and Riverside Bank have contemporaneously
entered into an Agreement and Plan of Merger, dated as of March 18, 2014 (the “Merger Agreement”), pursuant to which
Riverside Bank will merge with and into the Bank, and the Bank will be the surviving institution (the “Merger”); and

 

WHEREAS, the parties hereto agree that the Executive’s
commitment to the long-term success of the combined institution and the ability of Executive to retain and build upon the relationships
he developed with Riverside Bank and those he will continue to develop in the future with the Bank are important factors in the
decision of the Bank and Company to enter into the Merger Agreement; and

 

WHEREAS,Executive possesses unique and valued experience
with, and essential knowledge about the relevant banking market served by Riverside Bank; and

 

WHEREAS, the Bank and the Executive desire
to enter into this Agreement, which shall supersede any change in control or employment agreement by and between Riverside Bank
and the Executive, including but not limited to, Executive’s employment agreement, as amended with Riverside Bank, Executive’s
supplemental executive retirement plan, and Executive’s rights, benefits and interest in a bank owned split dollar life insurance
policy, and which shall be contingent upon the consummation of the Merger and shall become effective immediately upon the Effective
Time of the Merger (as defined in the Merger Agreement); and

 

WHEREAS, In order to induce Executive
to be and remain employed with the Bank, the Bank and Executive desire to set forth in writing the terms of employment.

 

NOW, THEREFORE, in consideration of the
mutual covenants and obligations herein contained, it is mutually agreed between the parties hereto as follows:

 

1.Term. The initial term of this Agreement shall
continue for a term commencing on the Effective Date and ending on the third anniversary of the Effective Date (the “Term”).
Beginning on the second anniversary of the Effective Date and continuing on each annual anniversary of the Effective Date (each
an “Anniversary Date”) this Agreement shall automatically renew for an additional year (each succeeding period shall
also be referred to herein as the “Term”), unless at least thirty (30) days prior to such Anniversary Date, either
party gives written notice of non-renewal to the other. If such notice of non-renewal is given as permitted hereunder, the Agreement
will expire at the conclusion of the then current Term. Notwithstanding any provision of this Agreement to the contrary, Executive’s
employment may be terminated at any time prior to the expiration of the Term subject to the provisions of this Agreement, including,
without limitation, Sections 4, 5, 6, 9, 10, 11, 12 and 13. Notwithstanding the foregoing, in the event that at any time during
the Term of this Agreement, the Company or the Bank has entered into an agreement to effect a transaction which would be a Change
in Control (as defined in Section 3 hereof), then the Term of this Agreement shall be automatically extended through the date that
is twelve (12) months following the date on which the Change in Control occurs, provided, however, that if the Change in Control
does not occur as contemplated, then the Term of the Agreement shall be the Term in effect prior to entry into the agreement referred
to above. Provided further that in the event Executive fails to commence his duties under Section 2 of this Agreement at the commencement
of the initial term of this Agreement, then Executive shall forfeit all benefits to which he would otherwise be entitled pursuant
to a change in control of Riverside Bank.

 

    	 

    	 

    

2.Duties. Executive shall serve as the President
of the New York Region of the Bank and report directly to the President and Chief Executive Officer of the Bank. The Bank shall
pay and Executive shall accept as full consideration for his services hereunder, compensation consisting of the following:

 

1.Base Salary. Executive’s initial base
salary will be $225,000.00 per year. “Base Salary” is payable in installments in accordance with the Bank’s normal
payroll practices, less such deductions or withholdings as are required by law. Such base salary shall be evaluated at least annually
and shall be not less than $225,000.00.

 

2.Initial Cash Bonus. The Bank shall pay, or
shall direct Riverside Bank to pay immediately prior to the Effective Time of the Merger, Executive an initial cash success bonus
of $70,000.00, contingent upon (i) the happening of the Effective Time at or prior to December 31, 2014, and (ii) as of the Effective
Time, the dollar amount of the gross loan portfolio of Riverside Bank will equal at least 90% of the dollar amount of the gross
loan portfolio of Riverside Bank as of December 31, 2013.

 

3.Incentives.

 

(a) Benefit Plans. During his employment with
the Bank under this Agreement, Executive shall participate in any current or future bonus or incentive plans of the Bank, made
available at the sole discretion of the Bank’s Board of Directors upon the recommendation of the Human Resources and Compensation
Committee of the Board, whether such plans provide for awards in cash or securities, including an award of units pursuant to the
Phantom Stock Appreciation Unit and Long-Term Incentive Plan and future participation in the Non-qualified Deferred Compensation
Plan.

 

(b) Stay Bonuses. Executive shall be entitled
to receive the following cash payments, subject to the vesting requirements set forth below. Upon the vesting of each award, the
cash award shall be paid to Executive:

 

		·	$100,000 awarded in 2015 on the anniversary of the Effective Date and
fully vested and paid to Executive in 2016 on the anniversary of the Effective Date;

		·	$100,000 awarded in 2016 on the anniversary of the Effective Date and
fully vested and paid to Executive in 2018 on the anniversary of the Effective Date; and

		·	$100,000 awarded in 2017 on the anniversary of the Effective Date and
fully vested in 2018 on the anniversary of the Effective Date.

 

In order for the
forgoing awards to vest and be paid over to Executive, Executive must be employed by Bank on both the award date and
the vesting date; provided, however, that (i) in the event Executive’s employment is terminated by the Bank for any
reason other than “Cause”, (ii) Executive terminates his employment with Bank for Good Reason, or (iii) there
occurs a Change in Control, then in that case (x) any award set forth above which has not yet been awarded to Executive shall
be awarded to Executive, and (y) all such awards shall be deemed fully vested and paid to Executive, all as of his
termination date or the effective date of such Change in Control, whichever is applicable.

 

(c) Restricted Stock Grant. Bank shall grant
to Executive 3,000 shares of restricted Company common stock on the Effective Time of the Merger, which shall vest at a rate of
750 shares on the Effective Date and on each of the subsequent three anniversaries of the Effective Date, provided Executive is
still employed by the Bank on such anniversary date; provided, however, that (i) in the event Executive’s employment is terminated
by the Bank for any reason other than “Cause”, (ii) Executive terminates his employment with Bank for Good Reason,
or (iii) there occurs a Change in Control, then in that case any unvested shares of restricted stock then held by Executive shall
be deemed fully vested as of his termination date or the effective date of such Change in Control, whichever is applicable.

 

(d) Split Dollar Life Insurance. Executive will
participate in Bank’s split dollar life insurance policy and receive a death benefit of $400,000.

 

(e) Existing Car Lease. As of the date hereof,
Executive has use of a car leased by Riverside Bank. Bank agrees to keep such lease in force and effect and to make all lease payments
required thereunder until the expiration of the current term of such lease, and Executive shall continue to have the right to use
such car until the expiration of the current term of such lease. In addition, during such period, Bank shall pay for or reimburse
Executive for insurance and maintenance of such vehicle, and for gasoline used by Executive in such vehicle.

 

    	 

    	 

    

4.Reimbursement of Expenses. The Bank will reimburse
Executive for all reasonable travel, entertainment and other expenses incurred or paid by Executive in connection with, or related
to, the performance of his duties, responsibilities or services under this Agreement subject to the policies of the Bank.

 

5.Benefits. Subject to all applicable eligibility
requirements, and legal limitations, Executive will be able to participate in any and all 401(k), vacation, medical, dental, life
and long-term disability insurance and/or other benefit plans which from time to time may be established for other executives of
the Bank.

 

3.Definitions. As used in this Agreement, the
following terms shall have the meanings set forth herein.

 

“Cause” shall mean (i) the
conviction of the Executive of a felony or of any lesser criminal offense involving moral turpitude; (ii) the willful commission
by the Executive of any act that, in the judgment of the Board will likely cause substantial economic damage to the Bank or substantial
injury to the business reputation of the Bank; (iii) the commission by the Executive of an act of fraud in the performance of his
duties on behalf of the Bank; (iv) the continuing willful failure of the Executive to perform his duties to the Bank after written
notice thereof (specifying the particulars thereof in reasonable detail) and a reasonable opportunity to cure such failure are
given to the Executive; or (v) an order of a federal or state regulatory agency or a court of competent jurisdiction requiring
the termination of the Executive’s employment by the Bank. For this purpose, no act, or failure to act, on the part of Executive
shall be deemed “willful” unless done, or omitted to be done, by Executive not in good faith and without reasonable
belief that Executive’s action or omission was in the best interests of the Bank. Without limiting the foregoing, in no event
shall Executive be deemed to be acting in good faith or in the best interests of the Bank for purposes of the preceding sentence
with respect to acts of omission or commission taken in contravention of any direction(s), rule(s) or requirement(s) issued, authorized,
approved or ratified by the Board.

 

Notwithstanding the foregoing provisions, in no
event shall Cause be deemed to exist unless (i) the Bank shall provide Executive with written notice making reference to this Agreement,
stating that the Bank intends to terminate Executive for Cause within the meaning of this Agreement, and setting forth in reasonable
detail the facts and circumstances allegedly constituting Cause, and (ii) the Bank affords Executive a period of two (2) weeks
after issuance of such notice either to demonstrate, through written rebuttal, that Cause does not exist under this Section 3,
or to cure the circumstances constituting such Cause; provided, however, that the determination of whether Cause exists or whether
Executive has sufficiently cured any Cause, shall be made in the reasonable discretion of the Board, as evidenced by the affirmative
vote of not less than three-fourths of the entire membership of the Board (excluding Executive) at a meeting of the Board (excluding
Executive) called and held for such purpose (after reasonable notice is provided to Executive and Executive is given an opportunity,
together with counsel, to be heard before the Board). Nothing in this Section 3 shall prevent the Bank from terminating Executive
for Cause prior to the issuance of the above-referenced notice or expiration of the above-referenced two (2) week rebuttal/cure
period; provided however that if, upon the expiration of such two (2) week period, it is determined that facts or circumstances
sufficient to constitute Cause did not (or, if applicable, do not) exist or has/have been cured, then such earlier termination
of Executive by the Bank shall be deemed to be without Cause. Without limiting the foregoing, the Bank may suspend Executive, with
or without pay, during the above-referenced two (2) week rebuttal/cure period, and such suspension shall not constitute either
a termination of employment by the Bank under this Agreement or Good Reason for separation by Executive.

 

“Change in Control” shall mean
(i) a change in the ownership of the Company or Bank, (ii) a change in the effective control of the Company or Bank, or (iii) a
change in the ownership of a substantial portion of the assets of the Company or Bank, as described below.

 

(i) A change in the ownership of a corporation occurs on the
date that any one person, or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(v)(B)), acquires
ownership of stock of the Company or Bank that, together with stock held by such person or group, constitutes more than fifty (50)
percent of the total fair market value or total voting power of the stock of such corporation. For these purposes, a change in
ownership will not be deemed to have occurred if no stock of the Company or Bank is outstanding.

 

(ii) A change in the effective control of the Company or Bank
occurs on the date that either (A) any one person, or more than one person acting as a group (as defined in Treasury Regulation
1.409A-3(i)(5)(vi)(D)) acquires (or has acquired during the twelve (12)-month period ending on the date of the most recent acquisition
by such person or persons) ownership of stock of the Company or Bank possessing thirty (30) percent or more of the total voting
power of the stock of the Company or Bank, or (B) a majority of the members of the Company’s or Bank’s board of directors
is replaced during any twelve (12)-month period by directors whose appointment or election is not endorsed by a majority of the
members of the Company’s or Bank’s board of directors prior to the date of the appointment or election, provided that
this subsection “(B)” is inapplicable where a majority shareholder of the entity that experiences the change in control
is another corporation.

    	 

    	 

    

 

(iii) A change in a substantial portion of the Company’s
or Bank’s assets occurs on the date that any one person or more than one person acting as a group (as defined in Treasury
Regulation 1.409A-3(i)(5)(vii)(C)) acquires (or has acquired during the twelve (12)-month period ending on the date of the most
recent acquisition by such person or persons) assets from the Company or Bank that have a total gross fair market value equal to
or more than forty (40) percent of the total gross fair market value of (A) all of the assets of the Company or Bank, or (B) the
value of the assets being disposed of, either of which is determined without regard to any liabilities associated with such assets.

 

For all purposes hereunder, the definition of
Change in Control shall be construed to be consistent with the requirements of Treasury Regulation 1.409A-3(i)(5), except to the
extent that such regulations are superseded by subsequent guidance.

 

“Good Reason” shall mean any
of the following circumstances if they occur without the Executive’s consent: (i) a material reduction in the Executive’s
Base Salary not warranted by general across the board reductions due to economic necessity; (ii) a material reduction in the Executive’s
incentive bonus and other benefits generally provided to executives generally (except due to general across the board reductions
due to economic necessity); (iii) a material reduction in Executive’s authority, duties or responsibilities such that Executive
no longer holds a position with Executive level responsibilities consistent with Executive’s training and experience; (iv)
the permanent relocation of Executive’s principal place of business to a location that is more than thirty-five (35) miles
from Executive’s workplace at the initial effective date of this Agreement; or (v) a breach by the Bank of this Agreement;
provided that for a termination to be deemed for Good Reason, Executive must give, within the ninety (90) day period commencing
on the initial existence of the condition(s) constituting Good Reason, written notice of the intention to terminate for Good Reason,
and, upon receipt of such notice, the Bank shall have a thirty (30) day period within which to cure such condition(s); and provided
further that the Bank may waive such right to notice and opportunity to cure. In no event may facts or circumstances constituting
“Good Reason” arise after the occurrence of facts or circumstances that the Bank relies upon, in whole or in material
part, in terminating Executive for Cause.

 

4.Effect of Involuntary Termination or Voluntary Termination
for Good Reason other than on or after a Change in Control. In the event of Executive’s involuntary termination of
employment by the Bank for reasons other than Cause (or Executive’s death or disability) or a voluntary termination of the
employment for Good Reason, in either case, other than on or after a Change in Control, Executive shall be entitled to the following:

 

(a) A severance benefit in an amount equal to the value of
the Executive’s annual base salary that the Executive would have earned if he had continued working for the Bank for the
remainder of the Term of his employment at the rate in effect on the date of such termination, or, if greater, the value of the
Executive’s annual base salary for a twelve (12) month period at the rate in effect on the date of such termination. Any
severance benefit to which the Executive is entitled under this Section 4(a) shall be distributed in a lump sum within sixty (60)
days following Executive’s separation from service.

 

(b)Subject to Executive’s payment of a premium portion
equal or substantially equal to the premium portion paid by executive employees of the Bank for comparable coverage, for two years
following separation from service, Executive may continue Executive’s participation (and, if applicable, that of Executive’s
beneficiaries) in the Bank’s group health plan in which Executive participated immediately prior to separation from service;
provided, however, that this sub-section is not intended to reduce the amount of time that Executive may obtain coverage at his
own expense under the provision of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”)
and comparable state law; except that Executive’s coverage for such two year period shall be counted against and deducted
from the maximum COBRA period (if the applicable maximum COBRA period is 18 months, then following Executive’s coverage hereunder,
Executive shall be entitled to no further health care coverage under the Bank’s group health plan). Notwithstanding anything
herein to the contrary, if as the result of any change in, or interpretation of, the laws applicable to the continued welfare benefits
hereunder, such benefits are deemed illegal or subject to penalties, then the Bank shall, to the extent permitted under such laws,
pay to the Executive a cash lump sum payment reasonably estimated to be equal to the amount of welfare benefits (or the remainder
of such amount) that the Executive is no longer permitted to receive in-kind. Such lump sum payment shall be required to be made
within sixty (60) days following the Executive’s separation from service, or if later, within sixty (60) days following a
determination that such payment would be illegal or subject to penalties.

 

    	 

    	 

    

(c)Executive shall also be entitled to be reimbursed by the
Bank for final expenses that Executive reasonably and necessarily incurred on behalf of the Bank prior to Executive’s termination
of employment, provided that Executive submits expense reports and supporting documentation of such expenses in accordance with
the Bank’s expense reimbursement policies in effect at that time. Such reimbursement payment or payments shall be made no
later than the time required by applicable law (or, if earlier, by Bank or Company policy, practice or rule), but in no event later
than the sixtieth (60th) day following Executive’s date of the termination.

 

5.Termination in Connection with a Change in Control.
In the event of Executive’s involuntary termination of employment for reasons other than Cause or a voluntary termination
of employment for Good Reason occurring on or after a Change in Control, Executive shall be entitled to the following:

 

(a)A lump sum cash payment equal to two (2.0) times the Executive’s
annual rate of base salary in effect on Executive’s date of termination or, if greater, Executive’s average annual
base salary rate for the twelve (12) month period ending on the last day of the calendar month immediately prior to the date of
such termination. Such amount shall be paid to Executive within sixty (60) days following Executive’s separation from service.

 

(b)Life insurance coverage and non-taxable medical and dental
coverage, at no cost to Executive, that is substantially comparable (and on substantially the same terms and conditions) to the
coverage maintained by the Bank for Executive immediately prior to his date of termination. Such life insurance and non-taxable
medical and dental coverage shall be provided by the Bank to the Executive for two (2) years following Executive’s separation
from service and subject to the same terms and conditions as the benefits provided under Section 4(b). Notwithstanding anything
herein to the contrary, if as the result of any change in, or interpretation of, the laws applicable to the continued welfare benefits
hereunder, such benefits are deemed illegal or subject to penalties, then the Bank shall, to the extent permitted under such laws,
pay to the Executive a cash lump sum payment reasonably estimated to be equal to the amount of welfare benefits (or the remainder
of such amount) that the Executive is no longer permitted to receive in-kind. Such lump sum payment shall be required to be within
sixty (60) days following the Executive’s separation from service, or if later, within sixty (60) days following a determination
that such payment would be illegal or subject to penalties.

 

(c)Unpaid compensation and benefits, and unused vacation,
accrued through the date of Executive’s termination of employment. Executive shall also be entitled to be reimbursed by the
Bank for final expenses that Executive reasonably and necessarily incurred on behalf of the Bank prior to Executive’s termination
of employment, provided that Executive submits expense reports and supporting documentation of such expenses in accordance with
the Bank’s expense reimbursement policies in effect at that time. Such reimbursement payment or payments shall be made no
later than the time required by applicable law (or, if earlier, by Bank or Company policy, practice or rule), but in no event later
than the sixtieth (60th) day following Executive’s date of the termination.

 

(d)Notwithstanding the foregoing, no compensation and benefits
shall be payable pursuant to both Sections 4 and 5 of this Agreement.

 

6.Conditions of Severance Benefits; Effect on Executive’s
Post-Employment Obligations.

 

(a)Notwithstanding the foregoing, in no event shall any compensation
payable to the Executive pursuant to the provisions of Section 4(a), 4(b), 5(a) and (b) above that is subject to Section 409A of
the Internal Revenue Code (“Code”) be paid to the Executive unless and until the Executive has incurred a “separation
from service” as defined in Code Section 409A and in regulations and guidance issued thereunder, unless such payment is required
by applicable law. For purposes of this Agreement, a “separation from service” shall have occurred if the Bank and
Executive reasonably anticipate that either no further services will be performed by Executive after his date of the termination
(whether as an employee or as an independent contractor) or the level of further services performed is less than fifty (50) percent
of the average level of bona fide services in the thirty-six (36) months immediately preceding the termination. For all purposes
hereunder, the definition of separation from service shall be interpreted consistent with Treasury Regulation Section 1.409A-1(h)(ii).

 

    	 

    	 

    

(b)Executive shall receive the severance benefits set forth
in Section 4(a) and 4(b) hereof only if Executive (a) executes a general release, in a form reasonably acceptable to the Bank,
within sixty (60) days of the date of the termination of the Executive’s employment in accordance with the provisions of
Section 4 hereof; (b) presents satisfactory evidence to the Bank that Executive has returned all Bank property; and (c) provides
the Bank with a signed, written resignation of Executive’s status as an officer and/or director of the Bank and/or any holding
company, subsidiary or affiliate as applicable. In the event the Bank reasonably believes that Executive has breached, or has threatened
to breach, any provision of this Agreement, the Executive shall no longer be entitled to such benefits and further shall be required
to reimburse all severance benefits, including payments under Section 4(a), previously made by the Bank. Such termination of benefits
shall be in addition to any and all legal and equitable remedies available to the Bank, including injunctive relief. Without limiting
the foregoing, Executive acknowledges and agrees that the provisions of Sections 12, 13, 16, 18, 19 and 20 of this Agreement (i)
are supported by adequate consideration in addition to the severance benefits provided under Section 4(a) and 4(b) and all other
amounts and things of value to which Executive would be entitled if Executive did not enter into this Agreement, and (ii) shall
be enforceable notwithstanding Executive’s failure of refusal to satisfy, in whole or in part, the conditions for the severance
benefits set forth under this Section 6. Notwithstanding the foregoing, the conditions set forth in this Section 6 shall not apply
in the event that any compensation or benefits are payable pursuant to Section 5 of this Agreement.

 

7.Taxes. All payments and benefits described
in this Agreement shall be subject to any and all applicable federal, state and local income, employment and other taxes, and the
Bank will deduct from each payment to be made to Executive under this Agreement such amounts, if any, required to be deducted or
withheld under applicable law. Executive hereby acknowledges and agrees that the Bank makes no representations or warranties regarding
the tax treatment or tax consequences of any compensation, benefits or other payments under the Agreement, or under any statute,
or regulation or guidance thereunder, or under any successor statute, regulation and guidance thereunder.

 

8.Code Section 409A. The cash severance payments
under this Agreement are intended to be exempt from Section 409A of the Code under the “short term deferral” rule set
forth in Treasury Regulation Section 1.409A-1(b)(4). If and to the extent this Agreement provides for a deferral of compensation
subject to Section 409A of the Code, it is the intent of the parties that this Agreement, and all payments of deferred compensation
subject to Code Section 409A made hereunder, shall be in compliance with such requirements and the regulations and other guidance
thereunder. Notwithstanding any other provision with respect to the timing of payments under Sections 4(a) or 5(a), if, at the
time of Executive’s separation from service, Executive is a “specified employee” (meaning a key employee as defined
in Section 416(i) of the Code without regard to paragraph 5 thereof) of the Bank (or a Bank affiliate), then to the extent necessary
to comply with the requirements of Code Section 409A, any payments to which Executive is entitled under Sections 4(a) or 5(a) during
the six (6) month period commencing on the Executive’s separation from service which are subject to Code Section 409A (and
not otherwise exempt from its application, including, without limitation, by operation of Treasury Regulation Section 1.409A-1(n))
will be withheld until the first business day of the seventh (7th) month following Executive’s separation from service, at
which time such withheld amount shall be paid in a lump sum distribution. The Bank and Executive agree that they will negotiate
in good faith and jointly execute an amendment to modify this Agreement to the extent necessary to comply with the requirements
of Code Section 409A, or any successor statute, regulation and guidance thereunder.

 

9.Limitation on Benefits. In no event shall
the Bank be obligated to make any payment pursuant to this Agreement that is prohibited by Section 18(k) of the Federal Deposit
Insurance Act (codified at 12 U.S.C. §1828(k)), 12 C.F.R. Part 359, or any other applicable law.

 

10.Section 280G Cut-back. Notwithstanding anything
in this Agreement to the contrary, if the severance amounts provided for in this Agreement, together with any other payments which
the Executive has the right to receive from the Bank, the Company, Riverside Bank, or any corporation which is a member of an “affiliated
group” (as defined in Code Section 1504(a), without regard to Code Section 1504(b)) of which the Bank or Riverside Bank is
a member, would constitute an “excess parachute payment” (as defined in Code Section 280G(b)(2)), payments pursuant
to this Agreement shall be reduced to the extent necessary (but only to the minimum extent necessary) to ensure that no portion
of such payments will be subject to the excise tax imposed by Code Section 4999. Any determination required under this Section
10 shall be made by the Bank and its tax advisors, whose determination shall be conclusive and binding upon the Executive and Riverside
Bank.

 

    	 

    	 

    

11.No Mitigation. The Bank agrees that Executive
is not required to use reasonable good faith efforts to seek other employment and to reduce any amounts payable to Executive by
the Bank pursuant to this Agreement.

 

12.Non-Competition; Non-Solicitation; Non-Disclosure.

 

(a)The benefits provided to Executive under Section 4 of this
Agreement are specifically conditioned on Executive’s covenant that, for a period of one (1) year following the Executive’s
separation from service with the Bank, the Executive will not, without the written consent of the Bank, either directly or indirectly:

 

(i)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 Bank or any of its 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 business or other entity;

 

(ii)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 any county in which the Bank
maintains a branch office or has filed an application for regulatory approval to establish an office as of the date of Executive’s
termination; provided, however, that this restriction shall not apply if the Executive’s employment is terminated following
a Change in Control; or

 

(iii)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 Bank or its affiliates to terminate an existing business or commercial relationship with the Bank or
its affiliates.

 

(b)Executive further agrees that Executive shall not at any
time or in any manner, directly or indirectly, use or disclose Confidential Information (as hereinafter defined) to any party other
than the Bank either during or after Executive’s termination of employment or the termination of this Agreement for any reason,
except for purposes consistent with the administration and performance of Executive’s obligations hereunder, or as required
by law, provided that written notice of any legally required disclosure shall be given to the Bank promptly prior to any such disclosure
and Executive shall reasonably cooperate with the Bank to protect the confidentiality thereof pursuant to applicable law or regulation.
For purposes of this Agreement, the term “Confidential Information” includes any confidential or proprietary information
furnished or provided by the Bank to Executive after Executive first became employed by the Bank, under this Agreement or otherwise
(whether before or after the Execution Date) (and without regard to whether such information is conveyed directly or on the Bank’s
behalf), or otherwise acquired by Executive as a consequence of Executive’s employment with the Bank and that is not generally
known in the industry in which the Bank is engaged and that in any way relates to the products, services, purchasing, marketing,
names of customers, vendors or suppliers, merchandising and selling, plans, data, specifications or any other confidential and
proprietary information of the Bank or any affiliate. Any Confidential Information supplied to Executive by the Bank prior to the
Execution Date shall be considered in the same manner and be subject to the same treatment as the Confidential Information made
available after the execution of this Agreement. The term “Confidential Information” does not include information (i)
which was already in the public domain, (ii) which is disclosed as a matter of right by a third party source after the execution
of this Agreement, provided such third party source is not bound by a confidentiality agreement with the Bank or (iii) which passes
into the public domain by acts other than the unauthorized acts of Executive, whether acting alone or in concert; provided, however,
that any disclosure of Confidential Information may be made by Executive if the Bank expressly consents thereto in writing prior
to such disclosure.

 

13.Exclusive Remedy. Except as expressly set
forth herein, or in any other agreement or benefit plan of the Bank not superseded by this Agreement to which Executive is a party
or in which Executive participates, or otherwise required by law, Executive shall not be entitled to any compensation, benefits,
or other payments from the Bank as a result of, or in connection with, Executive’ s separation from service at any time,
for any reason. The payments and benefits set forth in Sections 4 or 5 hereof shall constitute Executive’s sole and exclusive
remedy for any claims, causes of action or demands arising under or in connection with this Agreement or its alleged breach, or
the termination of Executive’s employment relationship with the Bank.

 

    	 

    	 

    

14.Governing Law/Interpretation. Executive and
the Bank agree that this Agreement and any claims arising out of or in connection with this Agreement shall be governed by and
construed in accordance with the laws of the State of Connecticut, without giving effect to the principles of conflicts of laws
thereof.

 

15.Entire Agreement; Termination of other Agreements.
This Agreement shall constitute the sole and entire agreement between the parties with respect to the subject matter hereof, and
supersedes and cancels all prior, concurrent and/or contemporaneous arrangements, understandings, promises, offers, agreements
and/or discussions, including, but not limited to, those concerning employment agreements and/or severance benefits, whether written
or oral, by or between the parties, regarding the subject matter hereof; provided, however, that this Agreement is not intended
to, and shall not, supersede, affect, limit, modify or terminate any written agreement or arrangement between Executive and the
Bank that does not relate to the subject matter hereof. By way of illustration and not limitation, this Agreement specifically
supersedes that certain Employment Agreement between Executive and Riverside Bank dated as of July 5, 2011 and amended effective
as of January 1, 2013, which, as of the Effective Date, shall be deemed terminated; provided however, that in the event the Effective
Date does not occur because the Merger is not consummated, this Agreement shall be deemed null and void and of no further force
and effect, and the foregoing agreement shall remain in place. In addition, from the date hereof through the Effective Date, Executive
agrees not to exercise or transfer those certain options to purchase 15,000 shares of Riverside Bank granted pursuant to that certain
grant dated as of February 2, 2013 (the “Option”) and that upon the Effective Date, the Option will be terminated,
null and void and of no further force and effect. Finally, Executive agrees that upon the Effective Date, that certain Supplemental
Executive Retirement Plan dates February 1, 2013 (the “SERP”) will also be null and void and of no further force and
effect. In the event the Effective Date does not occur because the Merger is not consummated, then the Option and the SERP will
not be terminated, and will remain in effect in accordance with their terms.

 

16.Assignment. Executive acknowledges that the
services to be rendered hereunder are unique and personal in nature. Accordingly, Executive may not assign any rights or delegate
any duties or obligations under this Agreement. The rights and obligations of the Bank under this Agreement shall automatically
be assigned to the successors and assigns of the Bank (including, but not limited to, any successor in the event of a Change in
Control, as well as any other entity that controls, is controlled by, or is under common control with, any such successor), and
shall inure to the benefit of, and be binding upon, such successors and assigns. This Agreement shall be binding upon Executive,
as well as, Executive’s heir, executors and administrators of Executive or Executive’s estate and property.

 

17.Notices. All notices required hereunder shall
be in writing and shall be delivered in person, by facsimile or by certified or registered mail, return receipt requested, and
shall be effective upon sending if by facsimile, or upon receipt if by personal delivery, or upon the fourth (4th) business day
after being sent by certified or registered mail. All notices shall be addressed as follows or to such other address as the parties
may later provide in writing:

 

  If to the
Bank:

 

Salisbury Bank and Trust Company

5 Bissell Street,

P.O. Box 1868

Lakeville, CT 06039-1868

	Attn:	Richard J. Cantele, Jr.
	 	President and Chief Executive Officer
	 	 
	 	and, if to Executive: 

 

at the address
set forth in the human resources files of the Bank.

 

18.Severability/Reformation. If any one or more
of the provisions (or any part thereof) of this Agreement shall be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions (or any part thereof) shall not in any way be affected or impaired thereby,
and this Agreement shall be construed and reformed to the maximum extent permitted by law. The language of all parts of this Agreement
shall in all cases be construed as a whole according to its fair meaning and not strictly for or against either of the parties.

 

    	 

    	 

    

19.Modification. This Agreement and the rights,
remedies and obligations contained in any provision hereof, may be modified or waived only in accordance with this Section 19.
No waiver by either party of any breach by the other or any provision hereof shall be deemed to be a waiver of any later or other
breach thereof or as a waiver of any other provision of this Agreement. This Agreement and its terms may not be waived, changed,
discharged or terminated orally or by any course of dealing between the parties, but only by a written instrument signed by the
party against whom any waiver, change, discharge or termination is sought. No modification or waiver by the Bank is effective without
written consent of the Board.

 

20.Arbitration. Subject to the mutual agreement
of the parties hereto at the time a dispute exists between such parties, any dispute, controversy or claim arising out of, or in
connection with, this Agreement shall be exclusively subject to arbitration before the American Arbitration Association (“AAA”).
Such arbitration shall take place in Hartford, Connecticut, before a single arbitrator in accordance with AAA’s then current
National Rules for the Resolution of Employment Disputes. Judgment upon any arbitration award may be entered in any court of competent
jurisdiction. All parties shall cooperate in the process of arbitration for the purpose of expediting discovery and completing
the arbitration proceedings. Notwithstanding any provision in this Agreement to the contrary, nothing contained in this Section
20 or elsewhere in this Agreement shall in any way deprive the Bank of its right to obtain injunctive relief, specific performance
or other legal or equitable relief in a court of competent jurisdiction for purposes of enforcing the provisions of Section 12
hereof.

 

21.Counterparts. This Agreement may be executed
in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and
the same instrument.

 

22.Section Headings. The descriptive section
headings herein have been inserted for convenience only and shall not be deemed to define, limit, or otherwise affect the construction
of any provision hereof.

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement under seal effective as of the date below.

 

	 	SALISBURY BANK AND TRUST COMPANY
	 	 
	 	 
	March 18, 2014                        	By: /s/ Richard J. Cantele, Jr.
	Date:	Richard J. Cantele, Jr.
	 	President and Chief Executive Officer
	 	 
	 	EXECUTIVE
	 	 
	 	 
	March 18, 2014                        	By: /s/ John Davies
	Date:	John Davies

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