Document:

ESOP Trust Agreement Dated 3/1/2002

 EXHIBIT 10.15 
  
 ESOP TRUST AGREEMENT 
  
 BETWEEN 
  
 RSGROUP TRUST COMPANY 
  
 AND 
  
 PARTNERS TRUST
FINANCIAL GROUP, INC. 
  
 THIS AGREEMENT OF TRUST (the
“Agreement”) made effective as of March 1, 2002, by and between PARTNERS TRUST FINANCIAL GROUP, INC., a federally chartered holding company (the “Company”) and RSGROUP TRUST COMPANY, a trust company incorporated under the laws of
the State of Maine (the “Trustee”), 
  
 WITNESSETH

  
 WHEREAS, the Company has adopted the Partners Trust
Financial Group, Inc. Employee Stock Ownership Plan (the “Plan”), effective as of January 1, 2002, for the exclusive purpose of providing benefits to participants and their beneficiaries under the Plan; 
  
 WHEREAS, the Company desires to establish a trust (the
“Trust”) for the Plan and to appoint the Trustee to serve as trustee for the Trust, effective as of March 1, 2002; and 
  
 WHEREAS, the Trustee wishes to accept its appointment as trustee for the Plan; 
  
 NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto, intending to be
legally bound, hereby agree and declare as follows: 
  
 ARTICLE
I 
 ESTABLISHMENT OF TRUST 
  
 Section 1.1. The Company and the Trustee hereby agree to the establishment of a trust consisting of such sums as shall from time to time be paid to
the Trustee under the Plan and such earnings, income and appreciation as may accrue thereon which, less payments made by the Trustee to carry out the purposes of the Plan, are referred to herein as the “Fund”. The Trustee shall carry out
the duties and responsibilities herein specified, but shall be under no duty to determine whether the amount of any contribution by the Company or any affiliated entity or by any participant under the Plan is in accordance with the terms of the
Plan, nor shall the Trustee be responsible for the collection of any contributions required under the Plan. 
  
 Section 1.2. The Fund shall be held, invested, reinvested and administered by the Trustee in accordance with the terms of the Plan and this
Agreement solely in the interest of participants and their beneficiaries under the Plan and for the exclusive purpose of providing 

 
benefits to participants and their beneficiaries and defraying the reasonable expenses of administering the Plan. Except as provided in Section 4.2, no
assets of the Plan shall inure to the benefit of the Company or any affiliated entity. 
  
 Section 1.3. The Trustee shall pay benefits and expenses from the Fund only upon the written direction of the Plan Administrator, the individual specified in the Plan as the fiduciary responsible for the
day-to-day operation and administration of the Plan. The Trustee shall be fully entitled to rely on such directions furnished by the Plan Administrator and shall be under no duty to ascertain whether the directions are in accordance with the
provisions of the Plan. 
  
 ARTICLE II 
 INVESTMENT OF THE FUND 
  
 Section 2.1. In accordance with the provisions of the Plan, the Trustee shall invest and reinvest the Fund without distinction between principal
and income in Company Stock (“Company Stock” shall have the meaning attributed to such terms as specified in the Plan), in accordance with the terms of the Plan and this Agreement as directed by the Company. To the extent that
contributions are made in Company Stock, the Trustee will be expected to retain such Company Stock. To the extent contributions are made in cash or other amounts are received in cash and are not needed to pay principal or interest on an ESOP loan,
to pay distributions to participants and their beneficiaries or to pay expenses of the Trust, the Trustee will be expected to acquire Company Stock either from other shareholders or directly from the Company as directed by the Company. If at the
time Company Stock is to be purchased, the Company has outstanding more than one class of Company Stock, the Company shall direct the Trustee as to which class of Company Stock shall be purchased. 
  
 Section 2.2. In accordance with the provisions of the Plan and except
as provided in Section 2.1, all assets of the Fund shall be invested by the Trustee solely in Company Stock, with the exception that if the Trustee is notified by the Company that a participant is eligible to make a diversification election, if
provided for under the Plan, whereby the participant may transfer a specified portion of the participant’s account to other investment options available under the Plan, the Trustee shall invest such specified portion of the participant’s
account in accordance with the participant’s investment directions as provided for in the Plan and Section 2.3 hereof. The Company shall notify the Trustee of any such investment options currently available under the Plan and any other plan
sponsored by the Company which accepts such amounts and of any changes thereto, which changes shall be effective no earlier than 60 days after delivery of written notice to the Trustee (unless otherwise agreed to by the Trustee). 
  
 In accordance with the provisions of the Plan, the named fiduciary of the
Plan is authorized to appoint an “investment manager” as defined in Section 3(38) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), to be responsible for managing one or more of the designated
investment options available under the Plan and selecting the specific investments that comprise any such investment option. In such case, the Named Fiduciary shall establish the investment policies and guidelines that the investment manager shall
follow when managing the investment option for the Plan, but the Named Fiduciary shall not be responsible for the selection of the specific investments that comprise any such investment option. The Trustee shall follow the directions of the
investment manager regarding the designated investment option(s) for which the investment manager is assigned responsibility. 
  

 2 

 Section 2.3. In accordance with the provisions of the Plan, each participant who is eligible to
make the diversification election described in Section 2.2 shall direct the Trustee as to the investment of that portion of his or her account subject to such election. All investment directions by participants shall be timely furnished to the
Trustee by the Plan Administrator, except to the extent such directions are transmitted telephonically or otherwise by participants and beneficiaries directly to the Trustee in accordance with rules and procedures established and approved by the
Plan Administrator and the Trustee. In making any such investment of the assets of the Fund, the Trustee shall be fully entitled to rely on the directions from participants that are properly furnished to the Trustee, and the Trustee shall be under
no duty to make any inquiry or investigation with respect thereto. 
  
 Section 2.4. Subject to the provisions of Section 2.1, 2.2, and 2.3, the Trustee shall have the authority, in addition to any authority given by law, to exercise the following powers in the administration of the Fund: 
  
 (a) with respect to the diversification election described
in Section 2.2 above, to invest and reinvest all or a part of the assets of the Fund in the available investment options under the Plan without restriction to investments authorized for fiduciaries, including, without limitation on the amount that
may be invested therein, any common, collective or commingled trust fund maintained by the Trustee, investment company, mutual fund, or other security or investment option offered by the Trustee. Any investment in, and any terms and conditions of,
any common, collective or commingled trust fund available only to employee trusts which meet the requirements of the Code or corresponding provisions of subsequent income tax laws of the United States, shall constitute an integral part of this
Agreement and the Plan; 
  
 (b) to dispose of all
or any part of the investments, securities, or other property which may from time to time or at any time constitute the Fund and to make, execute and deliver to the purchasers thereof good and sufficient deeds of conveyance thereof, and all
assignments, transfers and other legal instruments, either necessary or convenient for passing the title and ownership thereto, free and discharged of all trusts and without liability on the part of such purchasers to see to the application of the
purchase money; 
  
 (c) to cause any investment
of the Fund to be registered in the name of the Trustee or the name of its nominee or nominees or to retain such investment unregistered or in a form permitting transfer by delivery; provided that the books and records of the Trustee shall at all
times show that all such investments are part of the Fund; 
  
 (d) to consult and employ any suitable agent to act on behalf of the Trustee and to contract for legal, accounting, clerical and other services deemed necessary by the Trustee to manage and administer the Fund
according to the terms of the Plan and this Agreement; 
  

 3 

 (e) to pay from the Fund all taxes imposed or levied with respect to the Fund or any part
thereof under existing or future laws, and to contest the validity or amount of any tax, assessment, claim or demand respecting the Fund or any part thereof; and 
  
 (f) generally to exercise any of the powers of an owner with respect to all or any part of the Fund.

  
 Section 2.5. Each participant or beneficiary to whose
account shares of Company stock have been allocated shall, as a named fiduciary within the meaning of Section 403(a)(1) of ERISA, direct the Trustee with respect to the voting and, if applicable, tendering of shares of Company stock allocated to his
or her account, and the Trustee shall follow the directions of those participants and beneficiaries who provide timely instructions to the Trustee. The Trustee shall vote the shares of Company stock allocated to the accounts of participants for whom
no timely instructions have been received in the same proportion as those shares of Company stock for which instructions were timely received, provided that the Plan requires that participants and beneficiaries be given advance notice as to the
consequences of any failure to instruct the Trustee as to the voting of allocated shares of Company stock. Allocated shares of Company stock will not be tendered, unless directed by a participant or beneficiary to whose account shares of Company
stock have been allocated. The Company shall direct the Trustee with respect to the voting and, if applicable, tendering of shares of Company stock which have not been allocated to the accounts of participants or beneficiaries. 
  
 Section 2.6. Except as may be authorized by regulations promulgated by
the Secretary of Labor, the Trustee shall not maintain the indicia of ownership in any assets of the Fund outside of the jurisdiction of the district courts of the United States. 
  
 ARTICLE III 
 DUTIES AND RESPONSIBILITIES 
  
 Section 3.1.
The Trustee, Company, Named Fiduciary and Plan Administrator shall each discharge their assigned fiduciary duties and responsibilities under this Agreement and the Plan solely in the interest of participants and their beneficiaries in the
following manner: 
  
 (a) for the exclusive
purpose of providing benefits to participants and their beneficiaries and defraying reasonable expenses of administering the Plan; 
  
 (b) with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity
and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; 
  
 (c) by selecting a range of available investment options under the Plan referenced in Section 2.2 so as to permit participants and
beneficiaries to diversify their investments pursuant to Section 2.3; and 
  
 (d) in accordance with the provisions of the Plan and this Trust Agreement in so far as they are consistent with the provisions of ERISA. 
  
 Section 3.2. The Trustee shall keep full and accurate accounts of all receipts, investments, disbursements and other
transactions hereunder, including such specific records as 

  

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may be agreed upon in writing between the Company and Trustee. All such accounts, books and records shall be open to inspection and audit at all reasonable
times by any authorized representative of the Company, the Named Fiduciary or the Plan Administrator. Any participant or beneficiary under the Plan may examine only those individual account records pertaining directly to that participant or
beneficiary. 
  
 Section 3.3. The Trustee shall determine
the value of the Fund at such times as are mutually agreed upon by the Trustee and the Company but in no case less frequently than annually. The value of shares of Company Stock held in the Fund shall be determined at their fair market value defined
as their closing market price on the relevant valuation date; provided, however, that in the event such shares of Company Stock have no readily-ascertainable fair market value because they are thinly-traded, at their fair value as determined in good
faith and pursuant to written procedures recommended by the Company and approved by the Trustee as of such times as the Trustee determines to be appropriate, and from such financial publications, pricing services, or other services or sources as the
Trustee reasonably believes appropriate. All other securities and the value of other assets held in the Fund shall be valued by the Trustee at their market values on the relevant valuation date under procedures established by the Trustee. For
purposes of this Section, Company Stock shall be considered “thinly traded” if it is publicly traded on a national exchange or other generally recognized market, but not in sufficient volume and/or with sufficient frequency to assure
prompt execution of buy and sell orders. The Trustee may seek an opinion from an independent investment advisor or legal counsel as to whether a given stock is “thinly traded.” 
  
 Section 3.4. Within 120 days after the end of each plan year for the Plan or within 120 days after its removal or
resignation, the Trustee shall file with the Named Fiduciary a written account of the administration of the Fund showing all transactions effected by the Trustee with respect to the assets of the Plan subsequent to the period covered by the last
preceding account to the end of such plan year or date of removal or resignation and all property held at its fair market value at the end of the accounting period. Such accounting shall show the net value of the Plan’s interest in each
investment option maintained by the Trustee for the Fund and shall include financial information necessary for the completion of the annual reports required for the Plan under ERISA. The Named Fiduciary may approve such accounting by written notice
of approval delivered to the Trustee or by failure to express objection to such accounting in writing delivered to the Trustee within 120 days from the date on which the accounting is delivered to the Named Fiduciary. 
  
 Section 3.5. In accordance with the terms of the Plan, the Trustee
shall establish and maintain separate accounts in the name of each participant in order to record all contributions by or on behalf of the participant to the Plan and any earnings, losses and expenses attributable thereto. The Plan Administrator
shall furnish the Trustee with participant enrollment data in a format acceptable to the Trustee identifying the name, address, social security number, and current investment directions of each participant for whom one or more separate accounts are
to be established by the Trustee under this Agreement. With respect to all contributions to the Plan and other amounts that are transmitted to the Trustee, the Plan Administrator shall furnish the Trustee with participant allocation data in a format
acceptable to the Trustee identifying each participant on whose behalf an amount is being transmitted to the Trustee and the dollar amount to be allocated to each of the participant’s separate account under the Plan. In allocating amounts to
participants’ separate accounts under the Plan, the Trustee shall be fully entitled to rely on the participant enrollment and allocation data furnished to it by the Plan Administrator and shall be under no duty to make any inquiry or
investigation with respect thereto. 
  

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 Section 3.6. The Trustee shall, annually, within 60 to 90 days after receiving complete and
accurate participant data from the Company, furnish each participant in the Plan with statements reflecting the current fair market value of the participant’s separate accounts under the Plan and all activities occurring within such accounts
during the most recent reporting period, including Plan contributions, earnings, investment exchanges, distributions, and withdrawals. 
  
 Section 3.7. The Trustee shall not be required to determine the facts concerning the eligibility of any participant to participate in the Plan, the
amount of benefits payable to any participant or beneficiary under the Plan, or the date or method of payment or disbursement. The Trustee shall be fully entitled to rely solely upon the written advice and directions of the Plan Administrator as to
any such question of fact. 
  
 Section 3.8. Unless
resulting from the Trustee’s gross negligence, willful misconduct, lack of good faith, or breach of its fiduciary duties under this Agreement or ERISA, the Company shall indemnify and save harmless the Trustee from, against, for and in respect
of any and all damages, losses, obligations, liabilities, liens, deficiencies, costs and expenses, including without limitation, reasonable attorney’s fees incident to any suit, action, investigation, claim or proceedings suffered, sustained,
incurred or required to be paid by the Trustee in connection with the Plan or this Agreement. 
  
 Section 3.9. Share Acquisition Loans 
  
 (a) The Trustee shall, if directed to do so by the Committee, as specified in the Plan, obtain a loan from any lender selected by the
Company (“Share Acquisition Loan”) on behalf of the Plan and shall apply the proceeds of such Share Acquisition Loan in the proportions directed by the Committee: 
  
 (i) to purchase Company Stock; or 
  
 (ii) to make payments of principal or interest, or a combination of principal and interest, with respect to
such Share Acquisition Loan; or 
  
 (iii) to make
payments of principal and interest, or a combination of principal and interest, with respect to a previously obtained Share Acquisition Loan that is then outstanding. 
  
 Any such Share Acquisition Loan shall be on such terms and conditions as the Committee may determine, and
the Trustee shall have no duty or obligation to inquire as to the expediency or propriety of any such Share Acquisition Loan or any of the terms and conditions thereof. The Trustee has no discretion whatsoever in making any such loan (which may be
obtained by the Company) and shall act only as directed by the Committee. 
  

 6 

 (b) If directed to do so by the Committee, the Trustee shall execute a promissory note,
in its capacity as Trustee, evidencing the obligation of the Plan to repay a Share Acquisition Loan and shall pledge, in such proportions as the Committee may direct, the following assets of the Plan as collateral for such Share Acquisition Loan:

  
 (i) any Company Stock purchased with the
proceeds of such Share Acquisition Loan; 
  
 (ii) any Company Stock purchased with the proceeds of a previous Share Acquisition Loan, provided that such previous Share Acquisition Loan is repaid with the proceeds of the Share Acquisition Loan for which such Shares are pledged; and

  
 (iii) other collateral permissible under
federal law. 
  
 Any Share Acquisition Loan shall
be without recourse against the Plan or the Trustee, and, except as specifically provided in this Section, no assets of the Plan shall be pledged as collateral for a Share Acquisition Loan. 
  
 (c) The Trustee shall apply the Company’s contributions
to the Trust Fund designated to repay a Share Acquisition Loan, the earnings on such contributions, and the earnings with respect to Company Stock that shall have been pledged as collateral for a Share Acquisition Loan, in such proportions as the
Committee may direct, to the payment of principal and interest with respect to such Share Acquisition Loan. 
  
 ARTICLE IV 
 PROHIBITION OF DIVERSION 
  
 Section 4.1. Except as provided in Section 4.2, at no time prior to
the satisfaction of all liabilities with respect to participants and their beneficiaries under the Plan shall any part of the corpus or income of the Fund be used for, or diverted to, purposes other than for the exclusive benefit of participants or
their beneficiaries, or for defraying reasonable expenses of administering the Plan. 
  
 Section 4.2. The provisions of Section 4.1 notwithstanding, contributions made by the Company or any affiliated entity under the Plan will be returned to the Company or affiliated entity under the following
conditions: 
  
 (a) If a contribution is made by
mistake of fact, such contributions may be returned within one year of the payment of such contribution upon demand of the Company or affiliated entity; and 
  
 (b) Contributions to the Plan are specifically conditioned upon their deductibility under the Code. To the extent a deduction is
disallowed for any such contribution, it will be returned within one year after the disallowance of the deduction upon demand of the Company or affiliated entity. Contributions which are not deductible in the taxable year in which made but are
deductible in subsequent taxable years shall not be considered to be disallowed for purposes of this subsection; and 
  

 7 

 (c) Contributions to the Plan are specifically conditioned on initial qualification of
the Plan under the Code. If a Plan is determined by the Internal Revenue Service to not be initially qualified, upon demand of the Company or affiliated entity any employer contributions made incident to that initial qualification will be returned
within one year after the date the initial qualification is denied, provided that the determination of the Internal Revenue Service is made pursuant to an application for determination made by the time prescribed by law for filing the return of the
Company or affiliated entity for the taxable year in which the Plan is adopted or such later date as is prescribed by the Secretary of the Treasury. 
  
 ARTICLE V 
 COMMUNICATION WITH
FIDUCIARIES 
  
 Section 5.1. Whenever the Trustee is
permitted or required to act upon the directions or instructions of the Company, any named fiduciary, any investment manager or the Plan Administrator, the Trustee shall be entitled to rely upon any written communication signed by any person or
agent designated to act as or on behalf of any such fiduciary. Such person or agent shall be so designated either under the provisions of the Plan or in writing by the Company and such authority shall continue until revoked in writing. The Trustee
shall incur no liability for failure to act on such person’s or agent’s instructions or orders without written communication, and the Trustee shall be fully protected in all actions taken in good faith in reliance upon any instructions,
directions, certifications and communications believed to be genuine and to have been signed or communicated by the proper person. 
  
 Section 5.2. The Company shall notify the Trustee in writing of the appointment, removal or resignation of any person designated to act as or on
behalf of the Company, the Named Fiduciary, any investment manager, or the Plan Administrator. After such notification, the Trustee shall be fully protected in acting upon the directions of any person designated to act as or on behalf of any such
fiduciary until the Trustee receives notice from the Company to the contrary. The Trustee shall have no duty to inquire into the qualifications of any person designated to act as or on behalf of the Company, the Named Fiduciary, any investment
manager or the Plan Administrator. 
  
 Section 5.3. The
Company shall certify to the Trustee the names and specimen signatures of the members of the Committee appointed by the Company to administer the Plan and give directions to the Trustee. Such certification shall include directions as to the number
of signatures required for any communication or direction to the Trustee. The Company shall promptly give notice to the Trustee of changes in the membership of the Committee. The Committee may also certify to the Trustee the name of any person,
together with a specimen signature of any such person who is not a member of the Committee, authorized to act for the Committee in relation to the Trustee. The Committee shall promptly give notice to the Trustee of any change in any person
authorized to act on behalf of the Committee. For all purposes under this Agreement, until any such notice is received by the Trustee, the Trustee shall be fully protected in assuming that the membership of the Committee and the authority of any
person certified to act in its behalf remain unchanged. 
  
 Section 5.4. The Trustee shall be fully protected in relying and acting upon any certificate, notice or direction of the Committee, or of a person authorized to act on its behalf, or 

  

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of the Company, or of an Investment Manager which the Trustee believes to be genuine and to have been signed by the person or persons duly authorized to sign
such certificate, notice, or direction. 
  
 ARTICLE VI

 TRUSTEE’S COMPENSATION 
  
 Section 6.1. The Trustee shall be entitled to reasonable compensation for its services as is agreed upon with the Company. The Trustee shall also
be entitled to reimbursement for all direct expenses properly and actually incurred on behalf of the Plan. Such compensation or reimbursement shall be paid to the Trustee out of the Fund unless paid directly by the Company. 
  
 ARTICLE VII 
 RESIGNATION AND REMOVAL OF TRUSTEE 
  
 Section 7.1. The Trustee may resign at any time by written notice to the Company which shall be effective 60 days after delivery unless prior thereto a successor trustee shall have been appointed. 

 
 Section 7.2. The Trustee may be removed by the Company at any time
upon 60 days written notice to the Trustee; such notice, however, may be waived by the Trustee. 
  
 Section 7.3. The appointment of a successor trustee hereunder shall be accomplished by and take effect upon the delivery to the Trustee of written
notice of the Company appointing such successor trustee, and an acceptance in writing of the successor trustee hereunder executed by the successor so appointed. A successor trustee may be either a corporation authorized and empowered to exercise
trust powers or one or more individuals. All of the provisions set forth herein with respect to the Trustee shall relate to each successor trustee so appointed with the same force and effect as if such successor trustee had been originally named
herein as the trustee hereunder. If within 60 days after notice of resignation or removal shall have been given under the provisions of this Article VII a successor trustee shall not have been appointed, the Trustee or Company may apply to any court
of competent jurisdiction for the appointment of a successor trustee. 
  
 Section 7.4. Upon the appointment of a successor trustee, the Trustee shall transfer and deliver the Fund to such successor trustee, after reserving such reasonable amount as it shall deem necessary to provide for its expenses in the
settlement of its account, the amount of any compensation due to it and any sums chargeable against the Fund for which it may be liable. If the sums so reserved are not sufficient for such purposes, the resigning or removed Trustee shall be entitled
to reimbursement for any deficiency from the successor trustee and the Company who shall be jointly and severally liable therefor. 
  

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 ARTICLE VIII 
 AMENDMENT AND TERMINATION OF THE TRUST AND PLAN 
  
 Section 8.1. The Company may, by delivery to the Trustee of an instrument in writing, terminate this Agreement at any time. 
  
 Section 8.2. The Company may partially terminate this Agreement at any time by delivering to the Trustee a written
direction to transfer such part of the Fund as may be specified in such direction to any other trust established for the purpose of funding benefits under the Plan or under any other plan qualifying under Section 401 of the Code, established for the
benefit of participants in the Plan or their beneficiaries by the Company or any affiliated entity or any successor transferee or the Company or any affiliated entity; provided such transfer shall be in conformity with the requirements of Federal
law. 
  
 Section 8.3. This Agreement may be amended from
time to time by the Company; provided, however, that no amendment shall increase the duties or liabilities of the Trustee without the Trustee’s consent; and, provided further, that no amendment shall divert any part of the Fund to any purpose
other than providing benefits to participants and their beneficiaries under the Plan or defraying the reasonable expenses of administering the Plan. 
  
 Section 8.4. If the Plan is terminated in whole or in part, the Trustee shall distribute the Fund or any part thereof in such manner and at such
times as the Plan Administrator shall direct in writing in accordance with the provisions of the Plan; provided, however, that the Trustee may delay distribution of the Fund until it has received from the Company a copy of an Internal Revenue
Service determination letter addressing the Plan’s tax-qualified status upon termination, or, in lieu thereof at the Trustee’s sole discretion, an opinion from the Company’s legal counsel that the Plan met all qualification
requirements at the date of termination. 
  
 ARTICLE IX

 MISCELLANEOUS PROVISIONS 
  
 Section 9.1. Unless the context of this Agreement clearly indicates otherwise, the terms defined in the Plan shall, when used herein, have the same
meaning as in the Plan. 
  
 Section 9.2. Except as
otherwise required by law in the case of any qualified domestic relations order within the meaning of Section 414(p) of the Code, to the extent of any offset of a Participant’s benefits as a result of any judgment, order, decree or settlement
agreement provided in Section 401(a)(13)(C) of the Code, or any federal tax levy made pursuant to Section 6331 of the Code, or except as otherwise provided in the Plan with respect to any loan to a leveraged ESOP described in Section 4975(d)(3) of
the Code or loan from the Fund to a participant in accordance with the provisions of the Plan, the benefits or proceeds of any allocated or unallocated portion of the assets of the Fund and any interest of any participant or beneficiary arising out
of or created by the Plan either before or after the participant’s retirement shall not be subject to execution, attachment, garnishment or other legal or judicial process whatsoever by any person, whether creditor or otherwise, claiming
against such participant or beneficiary. Except as otherwise provided in the Plan with respect to any loan from the Fund to a participant in accordance with the provisions of the Plan, no participant or beneficiary shall have the right to 

  

 10 

 
alienate, encumber or assign any of the payments or proceeds or any other interest arising out of or created by the Plan and any action purporting to do so
shall be void. The provisions of this Section shall apply to all participants and beneficiaries, regardless of their citizenship or place of residence. 
  
 Section 9.3. Any person dealing with the Trustee may rely upon a copy of this Agreement and any amendments thereto certified to be true and correct
by the Trustee. 
  
 Section 9.4. The Trustee hereby
acknowledges receipt of a copy of the Plan. The Company will cause a copy of any amendment to the Plan to be delivered to the Trustee. 
  
 Section 9.5. The construction, validity and administration of this Agreement shall be governed by ERISA and, to the extent not preempted by ERISA,
the laws of the State of Maine without regard to its rules regarding conflict of laws. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in their respective names by their duly authorized officers under their corporate seals as of the day and year first above
written. 
  

			
	PARTNERS TRUST FINANCIAL GROUP, INC.
		
	 BY:
	 	  

		
	 	 	  

     PRINT NAME

		
	 	 	  

     TITLE

	
	RSGROUP TRUST COMPANY
		
	 BY:
	 	  

		
	 	 	     C. Paul Tyborowski

	 	 	     PRINT NAME

		
	 	 	     President

	 	 	     TITLE

  

 11 

			
	 STATE OF NEW YORK
	 	 )

	 	 	 : ss.:

	 COUNTY OF
	 	 )

  
 On
this            day of             , in the year 2002, before me, the undersigned, a Notary Public in and for the said state,
personally appeared                    , personally known to me or proved to me on the basis of satisfactory evidence to be the person(s) whose
name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies) and that by his/her/their signature(s) on the instrument, the person(s) or the entity upon behalf of which
the person(s) acted, executed the instrument. 
  

			
	 SEAL:
	 	  

	 	 	 Notary Public of
                            

	 	 	 My Commission expires
                    

  

			
	 STATE OF NEW YORK
	 	 )

	 	 	 : ss.:

	 COUNTY OF NEW YORK
	 	 )

  
 On
this            day of             , in the year 2002, before me, the undersigned, a Notary Public in and for the said state,
personally appeared C. Paul Tyborowski, personally known to me or proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the
same in his/her/their capacity(ies) and that by his/her/their signature(s) on the instrument, the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. 
  

			
	 SEAL:
	 	  

	 	 	 Notary Public of
                            

	 	 	 My Commission expires
                    

  

 12The Savings Bank of Utica Management Employees Deferred Plan dated 1/1/1999

 THE SAVINGS BANK OF UTICA 
  
 MANAGEMENT EMPLOYEES 
 DEFERRED COMPENSATION PLAN 
  
 Effective January 1, 1999 
  
 November 20, 1998 

 Table Of Contents 
  

					
	 	  	 	  	Page

	 Table Of Contents
	  	i
			
	 Article 1   
	  	 Introduction And Purpose
	  	1
	 1.1
	  	 Establishment of the Plan
	  	1
	 1.2
	  	 Purpose of the Plan
	  	1
	 1.3
	  	 ERISA Not Applicable
	  	1
			
	 Article 2   
	  	 Definitions
	  	2
			
	 Article 3
	  	 Participation
	  	4
	 3.1
	  	 Eligibility
	  	4
	 3.2
	  	 Enrollment
	  	4
	 3.3
	  	 Duration of Election to Defer
	  	5
	 3.4
	  	 Duration of Participation and Modification or Cessation of Deferrals
	  	5
	 3.5
	  	 Reenrollment of Participation
	  	5
			
	 Article 4
	  	 Administration
	  	6
	 4.1
	  	 Responsibility for Administration and Investment
	  	6
	 4.2
	  	 Authority of the Administrator
	  	6
	 4.3
	  	 Duties of the Administrator
	  	6
	 4.4
	  	 Written Deferral Agreements
	  	7
	 4.5
	  	 Administrative and Investment Costs
	  	7
			
	 Article 5
	  	 Participants Accounts And Plan Investments
	  	8
	 5.1
	  	 Establishment of Accounts
	  	8
	 5.2
	  	 Unsecured General Creditor
	  	8
	 5.3
	  	 Investment Options
	  	8
	 5.4
	  	 Investment Elections
	  	9
	 5.5
	  	 Changes in Investment Elections
	  	9
	 5.6
	  	 Transfers Upon Termination
	  	9
	 5.7
	  	 Investment of Funds
	  	10
	 5.8
	  	 Investment Option Valuations
	  	10
			
	 Article 6
	  	 Distributions 
	  	11
	 6.1
	  	 Distribution Upon Retirement Date or Death
	  	11
	 6.2
	  	 Distribution Upon Termination Because of Disability
	  	11
	 6.3
	  	 Distribution Upon Termination of Service Prior to Retirement Date for Reasons Other Than Death or Disability
	  	11
	 6.4
	  	 Distribution Upon Selected Date
	  	11
	 6.5
	  	 Modes of Distribution
	  	12
	 6.6
	  	 Deferred Distribution Dates
	  	12
	 6.7
	  	 Beneficiary Designations
	  	13

  

 i 

					
	 Article 7   
	  	 Non-Assignability and Limitation on Payments
	  	14
	 7.1
	  	 Non-Assignability
	  	14
	 7.2
	  	 Limitation on Payments
	  	14
			
	 Article 8   
	  	 Amendment or Termination
	  	15
	 8.1
	  	 Amendment of Plan
	  	15
	 8.2
	  	 Termination of Plan
	  	15
			
	 Article 9   
	  	 Miscellaneous Provisions
	  	16
	 9.1
	  	 No Right to Continued Employment
	  	16
	 9.2
	  	 Construction of Language
	  	16
	 9.3
	  	 Headings
	  	16
	 9.4
	  	 Severability
	  	16
	 9.5
	  	 Waiver
	  	16
	 9.6
	  	 Governing Law
	  	17

  
  
  

 ii 

 EXHIBIT 10.16 
  
 Article 1 
 Introduction And Purpose 
  

	1.1	Establishment of the Plan 

  
 The Plan shall be known as the THE SAVINGS BANK OF UTICA MANAGEMENT EMPLOYEES DEFERRED COMPENSATION PLAN. The Plan is effective as of January 1, 1999,
established as of such date by The Savings Bank of Utica Board of Trustees. 
  

	1.2	Purpose of the Plan 

  
 The purpose of the Plan is to provide for the deferral of all or a portion of Annual Salary by a select group of highly compensated Employees of the
Employer, whereby a designated amount of a Participant’s Annual Salary is deferred until one of the specified events in the Plan occurs, which permits all or part of the monies so deferred (together with any earnings, gains or losses, as
provided for in the Plan), to be distributed to the Participant or to a designated Beneficiary. The select group of highly compensated Employees eligible to participate in the Plan shall be determined by the Board of Trustees, from time to time.

  

	1.3	ERISA Not Applicable 

  
 This Plan is not intended to be subject to or covered by the participation, vesting, funding or fiduciary requirements of ERISA, and shall in all cases be
construed and interpreted in a manner consistent with that intent. 
  

 1 

 Article 2 
 Definitions 
  
 The following words and
phrases used in the Plan shall have the following meanings, unless a different meaning is plainly required by the context: 
  

	2.1	“Accounting Date” means each business day of the month. 

  

	2.2	“Administrator” means the Plan administrator. 

  

	2.3	“Annual Salary” means all renumeration paid to an Employee by the Employer, including bonuses and commissions, as shown on Federal Form W-2. 

  

	2.4	“Beneficiary” means the person, persons or legal entity provided for by the Participant to receive any undistributed Deferred Compensation which becomes payable in the
event of the Participant’s death, including any designated contingent beneficiary or beneficiaries. 

  

	2.5	“Benefit Commencement Date” means the first business day of the month following the month in which an Employee retires, dies or otherwise terminates employment (as the
case may be), or such other date as a Participant may specify in his or her Agreement for Deferral of Compensation. 

  

	2.6	“Deferred Compensation” means that portion of the Participant’s Annual Salary which the Participant and Employer mutually agree to defer, until the conditions for
distribution of such amounts as set forth in Article 6 are met. 

  

	2.7	“Disability” means total and permanent disability, as determined by the Plan Administrator, in a uniform manner. 

  

	2.8	“Effective Date” means January 1, 1999. 

  

	2.9	“Employee” means an employee of the Employer who is eligible to participate in the Plan, as set forth in Section 3.1. 

  

	2.10	“Employer” means The Savings Bank of Utica, Utica, New York, or any successor in interest to the bank. 

  

	2.11	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

  

	2.12	“Participant” means any Employee who fulfills the eligibility and enrollment requirements for participation in the Plan, as set forth in Article 3.

  

 2 

	2.13	“Plan” means the The Savings Bank of Utica Management Employees Deferred Compensation Plan, effective January 1, 1999, as herein set forth, and as it may be amended from
time to time. 

  

	2.14	“Plan Year” means each calendar year. 

  

	2.15	“Retirement Date” means a severance of the Participant’s employment relationship with the Employer (other than by Disability or death), on account of retirement.

  

	2.16	“Termination of Service” means a severance of the Participant’s employment relationship with the Employer, prior to Retirement Date, Disability or death.

  

 3 

 Article 3 
 Participation 
  

	3.1	Eligibility 

  
 Only the specific Employees or the class or classes of Employees designated by resolution of the Board of Trustees of the Employer, shall be eligible to
become Participants in accordance with Section 3.2. The specific Employees or the class or classes of Employees eligible to become Participants shall at all times be limited by the Board of Trustees of the Employer to a select group of management or
highly compensated Employees. 
  

	3.2	Enrollment 

  
 Any Employee first eligible to participate in accordance with Section 3.1 as of the Effective Date, shall become a Participant upon agreeing in writing,
on a form to be provided by the Administrator, within thirty (30) days of the Effective Date, to a deferral of all or a portion of his or her Annual Salary as follows: commencing with the first pay period following the later of: (i) the Plan’s
Effective Date, and (ii) written notification to the Administrator of an election to defer all or a portion of the Participant’s Annual Salary (expressed as either a dollar amount or percentage), in accordance with the Plan. 
  
 Any Employee first eligible to participate in accordance with Section 3.1
after the Effective Date, shall become a Participant upon agreeing in writing, on a form to be provided by the Administrator, within thirty (30) days of becoming an eligible Employee, to a deferral of all or a portion of his or her Annual Salary,
commencing with the first pay period following written notification to the Administrator of an election to defer all or a portion of the Participant’s Annual Salary (expressed as either a dollar amount or percentage), in accordance with the
Plan. 
  
 Any other Employee eligible to participate in
accordance with Section 3.1 after the Effective Date, who does not enroll when first eligible under the preceding paragraph, shall become a Participant as of the first day of the calendar Plan Year following his or her agreement in writing, on a
form to be provided by the Plan Administrator, to a deferral of all or a portion of his or her Annual Salary (expressed as either a dollar amount or percentage), in accordance with the Plan. 
  

 4 

	3.3	Duration of Election to Defer 

  
 Subject to Section 3.4, once an election to defer has been made by the Participant, the election with respect to Annual Salary deferred shall continue in
effect until a distribution of benefits, pursuant to Article 6. An election to defer a percentage of Annual Salary shall be applied uniformly to payments of Annual Salary that would otherwise be made. An election to defer a percentage of an
Employee’s Annual Salary shall be applied uniformly to payments of Annual Salary that would otherwise be made. An election to defer a dollar amount of Annual Salary shall be applied proportionately over the remaining pay periods in each
calendar year until the full amount elected has been deferred, unless an alternate procedure is requested by the Employee and agreed to by the Plan Administrator. 
  

	3.4	Duration of Participation and Modification or Cessation of Deferrals 

  

A Participant shall continue participation in the Plan until such time as the Participant is no longer deferring any portion of Annual Salary, and all
amounts credited to the Participant’s Plan account have been distributed. 
  
 A Participant may modify or cease his or her election to defer Annual Salary by written direction filed with the Plan Administrator prior to the end of any calendar Plan Year, with respect to Annual Salary earned
after the end of the Plan Year during which such direction is filed with the Plan Administrator. Any amounts previously credited to the Participant shall be distributed in accordance with Section 3.3. 
  

	3.5	Reenrollment of Participation 

  
 An Employee who has terminated his or her deferral of Annual Salary, may thereafter again file an election to defer Annual Salary earned in future
calendar years, in the same manner as a new Participant, pursuant to the third paragraph of Section 3.2. 
  

 5 

 Article 4 
 Administration 
  

	4.1	Responsibility for Administration and Investment 

  
 The Plan shall be administered by a Plan Administrator, who shall be an officer of the Employer, chosen by the Employer. The Administrator shall be
responsible for all functions related to the management of Plan accounts and their distribution, in accordance with the provisions of the Plan. 
  

	4.2	Authority of the Administrator 

  
 The Administrator shall have the full power and authority to promulgate, adopt, amend, or revoke such rules and regulations as are necessary to implement
and maintain the Plan, consistent with the provisions of the Plan. 
  
 The Administrator shall have the authority to require such supportive information, documents, or evidence, as is deemed necessary, in order to carry out the Administrator’s responsibilities under the Plan. 
  
 The Employer reserves the power to rule on any matter involving construction
of the Plan and interpretation of the terms and provisions thereof, and may exercise said authority or delegate such authority to the Administrator. Any decision hereunder on any such matter shall be final and binding upon all parties. 

 

	4.3	Duties of the Administrator 

  
 Whenever an Employee becomes eligible for and elects a deferral of Annual Salary, the Participant shall receive from the Administrator an Agreement for
Deferral of Compensation, stating the amount or percentage to be deferred, and a notation that such amount shall not, to the extent provided by applicable law, be included as a part of the Participant’s income with respect to federal, state or
local income taxes. Any Annual Salary deferred by Employees will, to the extent provided by applicable law, be included as earnings with respect to Federal “FICA” and “FUTA” taxes. 
  

 6 

	4.4	Written Deferral Agreements 

  
 The Employer shall enter into a written Agreement for Deferral of Compensation with each Participant, which Agreement shall: (i) set forth the obligations
contained in the Plan; (ii) the method of payout upon events specified in the Plan; (iii) the amount of Annual Salary to be deferred; (iv) the name of any Beneficiary or Beneficiaries; and (v) such other information as the Employer or the
Administrator deems necessary to administer the Plan. 
  

	4.5	Administrative and Investment Costs 

  
 It is the intent of the Employer that the Plan shall not be implemented or administered so as to be an expense to the Employer, other than for the
Employer’s obligation to pay the Deferred Compensation as provided in the Plan. Any expenses associated with the Plan, including but not limited to, administrative and investment costs, may, but need not be, charged against the
Participants’ accounts on a pro rata basis, as determined by the Employer and/or the Administrator. The Employer and/or Administrator shall report to the Board of Trustees of the Employer, from time to time, the Plan costs (if any), so that the
Board of Trustees of the Employer can properly analyze these costs. Included among such costs, but not limited thereto, shall be the costs (if any), of making investments, accounting for Deferred Compensation, and providing information to eligible
Participants. 
  

 7 

 Article 5 
 Participants Accounts And Plan Investments 
  

	5.1	Establishment of Accounts 

  
 The Administrator shall establish a bookkeeping account for each Participant, which account shall be credited as of each date the Participant’s
Annual Salary is deferred. Subject to Section 4.5, each account shall also be credited with any increase, or charged with any decrease, incurred by the Employer and attributable to any investment and/or crediting of Deferred Compensation under
Section 5.3, if applicable. The Employer is only under a contractual obligation to make payments under the Plan in accordance with this Article 5, as payments become due hereunder, and the Employer is not a guarantor of the Plan. The Board of
Trustees of the Employer shall not be liable for any claims raised by any Participant, or Beneficiary, by reason of participation in, or receipt of benefits from, the Plan. All Participants shall accept any policy established, or determinations
made, by the Administrator or Board of Trustees of the Employer concerning the resolution of any Plan accounting or recordkeeping errors or omissions. 
  

	5.2	Unsecured General Creditor 

  
 Title to, and beneficial ownership of, any assets, whether in cash or investments (including any common stocks, life insurance policies, annuity contracts
or mutual fund accounts), which the Employer may earmark to pay or measure any Deferred Compensation under the Plan, shall, at all times, remain as part of the general assets of the Employer. A Participant and any Beneficiary or Beneficiaries shall
not have any property interest whatsoever in any specific asset of the Employer on account of the election to defer any Trustee Fees under the Plan. To the extent that any person acquires a right to receive payments from the Employer under the terms
of the Plan, such right shall be no greater than the right of any unsecured general creditor of the Employer. 
  

	5.3	Investment Options 

  
 Upon enrollment in the Plan under Section 3.2, each Participant may request, either within the Agreement for Deferral of Compensation or on another form
to be provided for such purpose by the Administrator, that his or her Deferred Compensation account be adjusted for gains and losses as if invested in one or more investment options as may be made available by the Employer in its sole discretion.
The Employer is under no obligation to offer such investment option or options, or to honor such Participant requests hereunder. Any such investment option or options hereunder shall be authorized by the Board of Trustees of the Employer.

  

 8 

	5.4	Investment Elections 

  
 Each Participant may request that the Participant’s Deferred Compensation account be adjusted to reflect gains and losses as if invested 100% in any
of the then available investment options under Section 5.3, if any, or alternatively, in any combination of then available investment options (so long as the total equals 100%). A Participant’s preference shall specify the multiples of said
Deferred Compensation account which may be deemed to be invested in each of the said investment options. Such requests shall be acted upon by the Employer in its sole discretion. To the extent that any Participant shall fail to direct the investment
of his or her Deferred Compensation account, it shall be deemed to bear interest at the rate prevailing from time to time for 30-year United States Treasury Bonds, as reported daily in The Wall Street Journal. Interest hereunder shall
be calculated monthly, based on the bond rate in effect on the first day of each calendar month. 
  

	5.5	Changes in Investment Elections 

  
 A Participant’s investment request for the Participant’s Deferred Compensation account may be changed from time to time by the Participant,
provided the revised investment request is filed in advance of the implementation of such change with the Administrator, on a form to be provided by the Administrator. A Participant may request by written notification to the Administrator, no more
often than four (4) times during each Plan Year, to change his or her investment request effective with respect to his or her Deferred Compensation account value held on the Accounting Date coincident with or next following implementation of such
request by the Administrator. 
  

	5.6	Transfers Upon Termination 

  
 Prior to the commencement of installment payments pursuant to Article 6, a Participant who has terminated his or her position as an Employee on account of
Disability or otherwise, or retired on a Retirement Date, may request a one time irrevocable change in his or her investment request pursuant to Section 5.4, effective with respect to the account value credited on the Accounting Date coincident with
or next following implementation of such request by the Administrator. 
  

 9 

	5.7	Investment of Funds 

  
 The Administrator may invest assets of the Employer in a manner designed to reflect Participants’ investment preferences pursuant to Section 5.4.
Such investments shall be made in the name of the Employer, or through a grantor trust arrangement established by the Employer. The Board of Trustees of the Employer reserves the authority, without advance notice to the affected Participants, to
eliminate any or all of the investment options created by the Plan, if any, and may direct the Administrator to reinvest, or withhold from investment, assets of the Employer affected by such action, in any manner consistent with the provisions of
the Plan. 
  

	5.8	Investment Option Valuations 

  
 Investment options under the Plan, if any, are to be valued as of each Accounting Date, so that the value of each account maintained can be determined as
of any Accounting Date pursuant to a uniform system of accounting. The Administrator may, in his or her sole discretion, provide each Participant with a statement of Deferred Compensation following the end of each calendar year, and may provide more
frequent statements as deemed appropriate. A Participant shall be deemed to have accepted as current any such statement, except to the extent that he or she files a written objection or exception thereto with the Plan Administrator within thirty
(30) days after the furnishing of such statement. 
  
 A
Participant’s interest in the Plan shall be valued for a single-sum or installment payment as of the Accounting Date coincident with or immediately following receipt by the Administrator of written notification of the Participant’s
Retirement Date, Disability, death, Termination of Service or selected date of distribution, pursuant to Article 6, whichever is applicable. 
  
 All withdrawals and distributions made under the Plan shall be made in accordance with Article 6, subject to any applicable federal, state or local tax
withholding law. 
  

 10 

 Article 6 
 Distributions 
  

	6.1	Distribution Upon Retirement Date or Death 

  
 Subject to the provisions of Section 5.2, upon the Retirement Date or death of a Participant, Plan payments shall be distributed to the Participant, or to
a Beneficiary or Beneficiaries in the case of death, in the manner set forth in Section 6.5; provided, however, that in the case of a Retirement Date, the Participant has advised the Administrator in writing at least ten (10) days prior to the
intended Retirement Date. If a Participant does not provide such advance written notice, the Administrator may delay, in his or her sole discretion, the initial installment or single lump-sum payment for such additional period of time as he or she
shall require. 
  

	6.2	Distribution Upon Termination Because of Disability 

  
 Subject to the provisions of Section 5.2, upon the termination of service of a Participant because of Disability, Plan payments shall be distributed to
the Participant in the manner set forth in Section 6.5. 
  

	6.3	Distribution Upon Termination of Service Prior to Retirement Date for Reasons Other Than Death or Disability 

  
 Subject to the provisions of Section 5.2, upon the Participant’s
Termination of Service prior to Retirement Date for any reason other than death or Disability, Plan payments shall be distributed to the Participant in the manner set forth in Section 6.5. 
  

	6.4	Distribution Upon Selected Date 

  
 Subject to the provisions of Section 5.2, upon attainment of the date of distribution selected by the Participant under the Participant’s Agreement
For Deferral of Compensation, Plan payments shall be distributed to the Participant in the manner set forth in Section 6.5; provided, however that in the event of the Participant’s Retirement Date, death, Disability or Termination of Service
prior to such selected date, Plan payments shall thereupon be made instead in accordance with Section 6.1, 6.2 or 6.3, whichever is applicable. 
  

 11 

	6.5	Modes of Distribution 

  
 A distribution pursuant to Section 6.1, 6.2, 6.3 or 6.4, whichever is applicable, shall be made according to whichever of the following payment schedules
the Participant shall designate in his or her Participant’s Agreement for Deferral of Compensation: 
  

	 	(a)	in a single lump sum, in which case the amount of the payment shall be equal to the amount of the entire balance credited to the Participant’s account as of the last Accounting
Date before the Benefit Commencement Date; or 

  

	 	(b)	in such number of annual installment payments (not to exceed fifteen such payments) as the Participant shall specify in his or her Agreement for Deferral of Compensation, in which
case the amount of each payment shall be determined as of the last Accounting Date before the Benefit Commencement Date (or, in the case of the second and subsequent installments, the anniversary of such date) and shall be equal to the quotient of
(A) the entire amount then credited to the Participant’s Deferred Compensation account, divided by (B) the number of installment payments remaining to be made. 

  
 If the Participant fails to designate a payment schedule in his or her Trustee Agreement for Deferral of Compensation, or if
the entire balance credited to the Participant’s Deferred Compensation account as of the last Accounting Date prior to the Benefit Commencement Date is less than $10,000, then payment shall be made in a single lump-sum. 
  
 A Participant may amend his or her designation regarding either the date on
which payment will be, or begin being, made or the payment schedule to be followed, but only with respect to amounts attributable to annual salary deferred subsequent to the calendar year in which he or she files such an amended designation with the
Employer. Amounts to be distributed in accordance with an amended designation shall be accounted for separately from amounts to be distributed in accordance with any prior designation, and the foregoing provisions of this Section shall be applied
independently with respect to each amount that is separately accounted for. 
  

	6.6	Deferred Distribution Dates 

  
 In lieu of a distribution under Section 6.5, a Participant with a minimum balance of $10,000 may request to defer a distribution payable as a result of
Disability, Retirement Date or Termination of Service, by written request to the Administrator during the calendar year prior to, and at least ninety (90) days prior to the effective date of Disability, Retirement Date or Termination of Service.
Approval of such request shall be made in the sole discretion of the Administrator, consistent with the best interests of the Employer. 
  

 12 

	6.7	Beneficiary Designations 

  
 At the time a Participant makes a request for a distribution under Section 6.5, the Participant shall specify the payment alternative applicable to a
Beneficiary or Beneficiaries in the event the Participant should die prior to receiving the full amount of the Participant’s account, and said alternative may be the same or different from the alternative elected for the Participant.

  
 If a Participant entitled to receive, or receiving, a
distribution under the Plan should die prior to the time the Participant has received the full amount to which entitled at the date of death, all remaining amounts shall be paid to the deceased Participant’s Beneficiary or Beneficiaries,
according to the Participant’s form of election as specified in the above paragraph, or, if the Beneficiary or Beneficiaries are deceased, or if no Beneficiary was selected by the Participant, to the Participant’s estate in a single
lump-sum. 
  

 13 

 Article 7 
 Non-Assignability and 
 Limitation on Payments 
  

	7.1	Non-Assignability 

  
 The Plan and any Agreement for Deferral of Compensation entered into between the Employer and a Participant, and the benefits, procedures or payments
thereunder are non-assignable and non-transferable, and shall not be sold, assigned, pledged, commuted, transferred or otherwise conveyed by any Participant or Beneficiary. 
  
 The Employer shall be the owner of all Deferred Compensation hereunder and shall be the grantor of any trust and sole
beneficiary of any investment fund contract or contracts entered into pursuant to the Plan. The Administrator, or his or her agents, shall be the custodian of any such investment fund contracts and the Administrator, or his or her agents, shall take
the steps necessary to provide a place of safekeeping for any such contracts. 
  
 Except as otherwise required by applicable law, any Deferred Compensation payments made pursuant to the Plan shall not be subject to attachment, garnishment, or execution, or to transfer by operation of law in the
event of a Participant’s or a Beneficiary’s bankruptcy or insolvency. 
  

	7.2	Limitation on Payments 

  
 The Plan shall not provide for the payment of amounts other than amounts of Deferred Compensation under the Plan and amounts, if any, earned thereon. The
Employer, Board of Trustees of the Employer and Plan Administrator shall have no responsibility, contractual or otherwise, for Participant investment requests made in accordance with the Plan, nor for any loss of Participant account values resulting
from such requests, to the extent honored by the Employer. 
  
  

 14 

 Article 8 
 Amendment or Termination 
  

	8.1	Amendment of Plan 

  
 The Board of Trustees of the Employer shall have the authority to amend the Plan from time to time. No amendment or modification shall affect the rights
of Participants or their Beneficiaries to the receipt of Annual Salary deferred prior to any such amendment or modification. 
  

	8.2	Termination of Plan 

  
 The Board of Trustees of the Employer shall have the authority to terminate the Plan at any time, or to substitute a new plan of deferred compensation.
Upon termination of the Plan: (i) each Participant’s full Annual Salary, to the extent not already deferred, will be thereupon restored; and (ii) the Administrator shall treat all Participants as if they had a Termination of Service date on the
date of Plan termination, and thereupon pay to each Participant, Deferred Compensation in accordance with Section 6.5. Any substitution of a new plan for the Plan shall provide for the retention by the Employer of all amounts already deferred under
the Plan, and may, in the sole discretion of the Employer, provide for distribution of said amounts in accordance with Participant requests pursuant to Article 6. 
  

 15 

 Article 9 
 Miscellaneous Provisions 
  

	9.1	No Right to Continued Employment 

  
 Neither the establishment of the Plan, nor any provisions of the Plan, nor any action of the Administrator or the Employer, shall be held or construed to
confer upon any Employee any right to a continuation of employment by the Employer. The Employer reserves the right to deal with any Employee to the same extent and in the same manner that it would if the Plan had not been adopted. 
  

	9.2	Construction of Language 

  
 Wherever appropriate in the Plan, words used in the singular may be read in the plural, words used in the plural may be read in the singular, and words
importing the masculine gender shall be deemed to refer equally to the female gender. Any reference to a section number shall refer to a section of the Plan, unless otherwise indicated. 
  

	9.3	Headings 

  
 The headings of articles and sections are included solely for convenience of reference, and if there be any conflict between the text of such headings and
the text of the Plan, the text within the Plan sections shall control. 
  

	9.4	Severability 

  
 A determination that any provision of the Plan is invalid or unenforceable shall not effect the validity or enforceability of any other provision hereof.

  

	9.5	Waiver 

  
 Failure to insist upon strict compliance with any of the terms, covenants or conditions of the Plan shall not be deemed a waiver of such term, covenant or
condition. A waiver of any provision of the Plan must be made in writing, designated as a waiver, and signed by the party against whom its enforcement is sought. Any waiver or relinquishment of any right or power hereunder at any one or more times
shall not be deemed a waiver or relinquishment of such right or power at any other time or times. 
  

 16 

	9.6	Governing Law 

  
 The Plan shall be construed, administered and governed in all respects under applicable federal law and the laws of the State of New York, without regard
to the choice of law or conflict of law rules recognized by such state. The Board of Trustees of the Employer shall have authority to make any changes in the Plan necessary to conform its terms with the requirements of applicable federal and state
law. 
  

 17

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