Document:

Exhibit
10.3

 

EMPLOYMENT
AGREEMENT

 

This Employment Agreement
(the “Agreement”) is made and entered into, effective as of September 6, 2018 (the “Effective Date”),
by and between Rhinebeck Bank, a New York-chartered savings bank with its principal place of business in Rhinebeck, New York (the
 “Bank”) and Jamie Bloom (“Executive”). Any reference to the “Company”
shall mean any newly-formed the stock holding company of the Bank, or any successor thereto.

 

RECITALS

 

WHEREAS, the
Bank desires to continue to employ the Executive in an executive capacity in the conduct of its businesses, and the Executive desires
to be so employed on the terms contained herein;

 

NOW, THEREFORE,
in consideration of the mutual promises and covenants herein contained, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

NOW, THEREFORE,
in consideration of the mutual covenants herein contained, and upon the other terms and conditions hereinafter provided, the parties
hereby agree as follows:

 

1.           POSITION
AND RESPONSIBILITIES.

 

(a)          Employment.
During the term of this Agreement, Executive agrees to serve as Chief Operating Officer of the Bank and the Company or any successor
executive position with the Bank and the Company that is agreed to and consented by Executive (the “Executive Position”),
and will perform the duties and will have all powers associated with Executive Position as are appropriate for a person in the
position of the Executive Position, as well as those as shall be assigned by the Board of Directors of the Bank (the “Board”).
During the period provided in this Agreement, Executive also agrees to serve, if elected, as an officer or director of any subsidiary
or affiliate of the Bank and in such capacity carry out such duties and responsibilities reasonably appropriate to that office.

 

(b)          Responsibilities.
During Executive’s employment hereunder, Executive shall be employed on a full-time basis and shall devote Executive’s
full business time and best efforts, business judgment, skill and knowledge to the performance of Executive’s duties and
responsibilities related to the Executive Position. Except as otherwise provided in Section 1(c), Executive shall not engage in
any other business activity during the term of this Agreement except as may be approved by the Board.

 

(c)          Service
on Other Boards and Committees. The Bank encourages participation by Executive on community boards and committees and in
activities generally considered to be in the public interest, but the Board shall have the right to approve or disapprove, in its
sole discretion, Executive’s participation on such boards and committees.

 

     

     

    

 

2.           TERM.

 

(a)          Term
and Annual Renewal. The initial term of this Agreement and the period of Executive’s employment hereunder shall begin
as of the Effective Date and shall continue through December 31, 2020 (the “Term”). Commencing on January 1,
2019 and continuing on each January 1st thereafter (the “Renewal Date”), the Term will extend automatically
for one additional year, so that the Term will be three years from such Renewal Date, unless either the Bank or Executive by written
notice to the other given at least ninety (90) days prior to such Renewal Date notifies the other of its intent not to extend the
same. In the event that notice not to extend is given by either the Bank or the Executive, this Agreement shall terminate as of
the last day of the then current Term.

 

(b)          Change
in Control. Notwithstanding the foregoing, in the event the Bank or the Company has entered into an agreement to effect
a transaction that would be considered a Change in Control as defined under Section 5 hereof, the Term of this Agreement will be
extended automatically so that it is scheduled to expire no less than two (2) years beyond the effective date of the Change in
Control, subject to extensions as set forth above.

 

(c)          Continued
Employment Following Expiration of Term. Nothing in this Agreement shall mandate or prohibit a continuation of Executive’s
employment following the expiration of the term of this Agreement.

 

3.           COMPENSATION,
BENEFITS AND REIMBURSEMENT.

 

(a)          Base
Salary. In consideration of Executive’s performance of the responsibilities and duties set forth in this Agreement,
Executive shall receive an annual base salary of $245,000 per year (“Base Salary”). Such Base Salary will be
payable in accordance with the customary payroll practices of the Bank. During the term of this Agreement, the Board (or the Compensation
Committee of the Board) may increase, but not decrease, Executive’s Base Salary. Any increase in Base Salary will become
the “Base Salary” for purposes of this Agreement.

 

(b)          Bonus.
Executive will be eligible to participate in any bonus plan or arrangement of the Bank or the Company (including the Management
Incentive Plan and any other short-term and long-term incentive program) in which senior management is eligible to participate.
As of the Effective Date, Executive’s target bonus under the Rhinebeck Bank Executive Short-Term Incentive and Retention
Plan (“STIP”) is 20% of Base Salary, which may be increased or decreased at the discretion of the Compensation
Committee of the Board. Nothing paid to Executive under any such plan or arrangement will be deemed to be in lieu of the other
compensation to which Executive is entitled under this Agreement. The terms of the Bank’s or the Company’s short-term
and long-term incentive plans or programs shall determine the bonuses payable thereunder, if any, to Executive.

 

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(c)          Benefit
Plans. Executive will be entitled to participate in all employee benefit plans, arrangements and perquisites offered to
employees and officers of the Bank, on the same terms and conditions as such plans are available to other employees and officers
of the Bank. Without limiting the generality of the foregoing provisions of this Section 3(c), Executive also will be entitled
to participate in any employee benefit plans including but not limited to retirement plans, pension plans, profit-sharing plans,
health-and-accident plans, or any other employee benefit plan or arrangement made available by the Bank in the future to management
employees, subject to and on a basis consistent with the terms, conditions and overall administration of such plans and arrangements
as applicable to other management employees.

 

(d)          Vacation.
Executive will be entitled to paid vacation time each year during the term of this Agreement measured on a calendar year basis,
in accordance with the Bank’s customary practices, as well as sick leave, holidays and other paid absences in accordance
with the Bank’s policies and procedures for officers. Any unused paid time off during an annual period will be treated in
accordance with the Bank’s personnel policies as in effect from time to time.

 

(e)          Expense
Reimbursements. The Bank will reimburse Executive for all reasonable travel, entertainment and other reasonable expenses
incurred by Executive during the course of performing Executive’s obligations under this Agreement, including, without limitation,
fees for memberships in such organizations as Executive and the Board mutually agree are necessary and appropriate in connection
with the performance of Executive’s duties under this Agreement. Furthermore, the Bank will pay or reimburse Executive for
use of an automobile in an amount that is mutually agreeable to the Bank and Executive. Executive will comply with the reasonable
reporting and expense limitations on the use of such automobile as the Bank may establish from time to time. All reimbursements
shall be made as soon as practicable upon substantiation of such expenses by Executive in accordance with the applicable policies
and procedures of the Bank.

 

4.           TERMINATION
AND TERMINATION PAY.

 

Subject to Section
5 of this Agreement which governs the occurrence of a Change in Control, Executive’s employment under this Agreement will
terminate under the following circumstances:

 

(a)          Death.
This Agreement shall terminate upon Executive’s death, in which event the Bank’s sole obligation shall be to pay Executive’s
estate or beneficiary any “Accrued Obligations.”

 

For purposes of this
Agreement, “Accrued Obligations” means the sum of : (i) any Base Salary earned through the Executive’s
date of termination, (ii) unpaid expense reimbursements (subject to, and in accordance with, Section 3(e) of this Agreement), (iii)
unused vacation that accrued through the Termination Date, (iv) any earned but unpaid short-term and long-term incentive compensation
for the year immediately preceding the year of termination and (v) any vested benefits the Executive may have under any employee
benefit plan of the Bank through the date of termination, which vested benefits shall be paid and/or provided in accordance with
the terms of such employee benefit plans. Unless otherwise provided by the applicable employee benefit plan, the Accrued Obligations,
if any, will be paid to Executive (or Executive’s estate or beneficiary) within 30 days following Executive’s date
of termination.

 

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(b)          Disability.
This Agreement will terminate in the event of Executive becomes “Totally Disabled.” For purposes of this Agreement,
 “Totally Disabled” means any medically determinable physical or mental impairment that can be expected to result
in death or can be expected to last for a continuous period of not less than 12 months and that renders Executive unable to engage
in any substantial gainful activity, provided, however, that the aforementioned definition shall comply with the definition of
 “disability” pursuant to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)
and the regulations promulgated thereunder. Executive’s receipt of disability benefits under the Bank’s long-term disability
plan, if any, or receipt of Social Security disability benefits may be deemed conclusive evidence of Total Disability for purpose
of this Agreement; provided, however, that in the absence of Executive’s receipt of such long-term disability benefits or
Social Security benefits, the Board may, in its reasonable discretion but based upon appropriate medical evidence, determine that
Executive is Totally Disabled.

 

In the event Executive
is Totally Disabled, Executive will receive: (1) any Accrued Obligations; and (2) continued payments of Base Salary for a period
of 24 months following the date Executive is determined to be Totally Disabled, reduced by the amount of disability insurance benefits
payable to Executive during such period under the Bank’s disability insurance plan or program. With respect to subparagraph
(2), such payments will commence within 30 days after Executive is determined to be Totally Disabled and be payable at the same
time and manner as Executive’s Base Salary would have been paid if Executive remained actively employed with the Bank during
such period.

 

(c)          Termination
for Cause. The Board may immediately terminate Executive’s employment at any time for “Cause.” In the
event Executive’s employment is terminated for Cause, the Bank’s sole obligation will be to pay or provide to Executive
any Accrued Obligations. Termination for “Cause” means termination because of, in the good faith determination
of the Board, Executive’s:

 

(i)          material
act of dishonesty or fraud in performing Executive’s duties on behalf of the Bank;

 

(ii)         willful
misconduct that in the judgment of the Board will likely cause economic damage to the Bank or injury to the business reputation
of the Bank;

 

(iii)        breach
of fiduciary duty involving personal profit;

 

(iv)        intentional
failure to perform stated duties under this Agreement after written notice thereof from the Board;

 

(v)         willful
violation of any law, rule or regulation (other than traffic violations or similar offenses which results only in a fine or other
non-custodial penalty) that reflect adversely on the reputation of the Bank, any felony conviction (except for a conviction related
to a traffic violation or a DUI or DWI conviction under applicable law), any violation of law involving moral turpitude, or any
violation of a final cease-and-desist order; or any violation of the policies and procedures of the Bank as outlined in the Bank’s
employee handbook, which would result in termination of the Bank employees, as from time to time amended and incorporated herein
by reference; or

 

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(vi)        material
breach by Executive of any provision of this Agreement.

 

Any determination of
Cause under this Agreement will be made by resolution adopted by at least two-thirds vote of the disinterested members of the Board
at a meeting called and held for that purpose. Executive will be provided with reasonable notice of such meeting and Executive
will be given an opportunity to be heard before such vote is taken by the disinterested members of the Board.

 

(d)          Resignation
by Executive without Good Reason. Executive may resign from employment during the term of this Agreement without Good Reason
upon at least 30 days prior written notice to the Board, provided, however, that the Bank may accelerate the date of termination
upon receipt of written notice of Executive’s resignation. In the event Executive resigns without Good Reason, the Bank’s
sole obligation will be to pay or provide to Executive any Accrued Obligations.

 

(e)          Termination
Without Cause or With Good Reason.

 

(i)          The
Board may immediately terminate Executive’s employment at any time for a reason other than Cause (a termination “Without
Cause”), and Executive may, by written notice to the Board, terminate this Agreement at any time within 90 days following
an event constituting “Good Reason,” as defined below (a termination “With Good Reason”); provided,
however, that the Bank will have 30 days to cure the “Good Reason” condition, but the Bank may waive its right to cure.
In the event of termination as described under Section 4(e)(i) during the Term and subject to the requirements of Section 4(e)(iii),
the Bank will pay or provide Executive with the following:

 

(A)        any
Accrued Obligations;

 

(B)         the
sum of Executive’s annual Base Salary and average annual cash incentive compensation awarded under the STIP, which would
include any percentage of the award that is tax-deferred and payable pursuant to the Rhinebeck Executive Long-Term Incentive and
Retention Plan (the “LTIP”) (or any other comparable cash incentive plan) for three most recent annual performance
periods immediately prior to Executive’s date of termination, divided by 12 (the “Severance Payment”).
The Severance Payment will be payable to Executive each month during a 24-month period (the “Benefit Period”),
with the first payment to be made on the first day of the second month immediately following Executive’s date of termination;

 

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(C)         non-taxable
medical and dental insurance coverage substantially comparable (and on substantially the same terms and conditions) to the coverage
maintained by the Bank for Executive immediately prior to Executive’s termination under the same cost-sharing arrangements
that apply for active employees of the Bank as of Executive’s date of termination. Such continued coverage shall cease upon
the earlier of: (A) the completion of the Benefit Period; (B) the date on which Executive becomes a full-time employee of another
employer, provided Executive is entitled to benefits that are substantially similar to the health and welfare benefits provided
by the Bank; or (C) Executive’s death (provided that benefits payable to Executive’s spouse and designated beneficiaries
will continue until the end of the Benefit Period. The period of continued health coverage required by Section 4980B(f) of the
Code will run concurrently with the coverage period provided herein; and

 

(D)         the
reimbursement for the reasonable cost of outplacement services, up to a maximum amount of $5,000.

 

(ii)         “Good
Reason” exists if, without Executive’s express written consent, any of the following occurs:

 

(A)         a
material reduction in Executive’s Base Salary and/or aggregate incentive compensation opportunities under the Bank’s
annual and long-term incentive plans or programs, as applicable;

 

(B)         a
material reduction in Executive’s authority, duties or responsibilities from the position and attributes associated with
the Executive Position;

 

(C)         a
relocation of Executive’s principal place of employment by more than 35 miles from the Bank’s main office location
as of the date of this Agreement; or

 

(D)         a
material breach of this Agreement by the Bank.

 

(iii)        Notwithstanding
anything to the contrary in Section 4(e)(i), Executive will not receive any payments or benefits under this Section 4(e) unless
and until Executive executes a release of claims (the “Release”) against the Bank and any affiliate, and their
officers, directors, successors and assigns, releasing said persons from any and all claims, rights, demands, causes of action,
suits, arbitrations or grievances relating to the employment relationship, including claims under the Age Discrimination in Employment
Act, but not including claims for benefits under tax-qualified plans or other benefit plans in which Executive is vested, claims
for benefits required by applicable law or claims with respect to obligations set forth in this Agreement that survive the termination
of this Agreement. The Release must be executed and become irrevocable by the 60th day following the date of Executive’s
termination of employment, provided that if the 60-day period spans two (2) calendar years, then, to the extent necessary to comply
with Code Section 409A, the payments and benefits described in this Section 4(e) will be paid, or commence, in the second calendar
year.

 

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(f)          Effect
on Status as a Director. In the event of Executive’s termination of employment under this Agreement for any reason,
such termination will also constitute Executive’s resignation as a director of the Bank or the Company, or any subsidiary
or affiliate thereof, to the extent Executive is acting as a director of any of the aforementioned entities.

 

5.           CHANGE
IN CONTROL.

 

(a)          Change
in Control Defined. For purposes of this Agreement, the term “Change in Control” means: (i) a change
in the ownership of the Corporation; (ii) a change in the effective control of the Corporation; or (iii) a change in the ownership
of a substantial portion of the assets of the Corporation as defined in accordance with Code Section 409A. For purposes of this
Section 5(a), the term “Corporation” is defined to include the Bank, the Company or any of their successors,
as applicable.

 

		(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 Corporation that, together with stock held by such person or group, constitutes more than 50
percent of the total fair market value or total voting power of the stock of such Corporation.

 

		(ii)	A change in the effective control of the Corporation
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 12-month period ending on the date of the most recent acquisition
by such person or persons) ownership of stock of the Corporation possessing 30 percent or more of the total voting power of the
stock of the Corporation, or (B) a majority of the members of the Board is replaced during any 12-month period by directors whose
appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election,
provided that this subsection “(B)” is inapplicable where a majority stockholder of the Corporation is another corporation.

 

		(iii)	A change in a substantial portion of the Corporation’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 12-month period ending on the date of the most recent acquisition by such person or persons)
assets from the Corporation that have a total gross fair market value equal to or more than 40 percent of the total gross fair
market value of (A) all of the assets of the Corporation, 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.

 

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Notwithstanding anything
herein to the contrary, a Change in Control shall not be deemed to have occurred either: (i) upon the conversion of the Bank to
stock form (as a stand-alone stock bank or as the subsidiary of a mutual or stock holding company); or (ii) following the conversion
of the Bank to a subsidiary of a mutual holding company, upon the subsequent conversion of any mutual holding company to stock
form, or in connection with any reorganization used to effect such a conversion.

 

(b)          Change
in Control Benefits. Upon the termination of Executive’s employment by the Bank (or any successor) Without Cause
or by Executive With Good Reason on or within two (2) years after the effective time of a Change in Control during the Term, the
Bank (or any successor) shall pay or provide Executive with the Accrued Obligations. In addition, the Bank (or any successor) shall
pay Executive, as severance pay an amount equal to two (2) times the sum of Executive’s: (i) Base Salary (or Executive’s
Base Salary in effect immediately prior to the Change in Control, if higher); and (ii) average annual cash incentive compensation
awarded under the STIP, which would include any percentage of the award that is tax-deferred and payable pursuant to the LTIP (or
any other comparable cash incentive plan) for three most recent annual performance periods immediately prior to the Change in Control.
Such payment will be made in a lump sum within 30 days following Executive’s date of termination. The Bank (or any successor)
will also continue to provide Executive with non-taxable medical and dental insurance coverage substantially comparable to the
coverage maintained by the Bank for Executive immediately prior to his date of termination at no cost to Executive. Such continued
coverage will cease upon the earlier of: (i) the date which is two (2) years from Executive’s date of termination; (ii) the
date on which Executive becomes a full-time employee of another employer, provided Executive is entitled to the benefits that are
substantially similar to the health and welfare benefits provided by the Bank or (iii) Executive’s death (provided that benefits
payable to Executive’s spouse and designated beneficiaries will continue until the end of such benefit period). The period
of continued health coverage required by Section 4980B(f) of the Code shall not run concurrently with the coverage period provided
herein. Notwithstanding the foregoing, the payments and benefits provided in this Section 5(b) will be payable to Executive in
lieu of any payments or benefits that are payable under Section 4(e).

 

6.            COVENANTS
OF EXECUTIVE.

 

(a)          Non-Solicitation/Non-Compete.
Executive hereby covenants and agrees that during the “Restricted Period”, Executive shall 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 respective subsidiaries or affiliates, to terminate his or her employment with the Bank and/or
accept employment with another employer; or

 

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		(ii)	become an officer, employee, consultant, director, independent
contractor, agent, joint venturer, 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 competes with the business of the Bank or any of their direct or indirect subsidiaries or affiliates within the New York
State counties of Columbia, Duchess, Orange, Putnam or Ulster or in any other county where the Bank has one or more offices or
branches; 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 to terminate an existing business or commercial relationship with the Bank.

 

The restrictions contained
in this Section 6(a) shall not apply in the event of Executive’s termination of employment on or after the effective time
of a Change in Control.

 

For purposes of this
Section 6(a), the “Restricted Period” will be: (i) at all times during Executive’s period of employment
with the Bank; and (ii) during the period beginning on Executive’s date of termination and ending on the later of: (A) the
one-year anniversary of the date of termination; or (B) the last date on which Executive receives the Severance Payment pursuant
to Section 4(e)(i)(B).

 

(b)          Confidentiality.
Executive recognizes and acknowledges that the knowledge of the business activities, plans for business activities, and all other
proprietary information of the Bank, as it may exist from time to time, are valuable, special and unique assets of the business
of the Bank. Executive will not, during or after the term of Executive’s employment, disclose any knowledge of the past,
present, planned or considered business activities or any other similar proprietary information of the Bank to any person, firm,
corporation, or other entity for any reason or purpose whatsoever unless expressly authorized by the Board or required by law.
Notwithstanding the foregoing, Executive may disclose any knowledge of banking, financial and/or economic principles, concepts
or ideas which are not solely and exclusively derived from the business plans and activities of the Bank. Further, Executive may
disclose information regarding the business activities of the Bank to any bank regulator having regulatory jurisdiction over the
activities of the Bank pursuant to a formal regulatory request. In the event of a breach or threatened breach by Executive of the
provisions of this Section, the Bank will be entitled to an injunction restraining Executive from disclosing, in whole or in part,
the knowledge of the past, present, planned or considered business activities of the Bank or any other similar proprietary information,
or from rendering any services to any person, firm, corporation, or other entity to whom such knowledge, in whole or in part, has
been disclosed or is threatened to be disclosed. Nothing herein will be construed as prohibiting the Bank from pursuing any other
remedies available to the Bank for such breach or threatened breach, including the recovery of damages from Executive.

 

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(c)          Information/Cooperation.
Executive shall, upon reasonable notice, furnish such information and assistance to the Bank as may be reasonably required by the
Bank, in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party; provided,
however, that Executive shall not be required to provide information or assistance with respect to any litigation between Executive
and the Bank or any other subsidiaries or affiliates.

 

(d)          Reliance.
Except as otherwise provided, all payments and benefits to Executive under this Agreement shall be subject to Executive’s
compliance with this Section 6, to the extent applicable. The parties hereto, recognizing that irreparable injury will result to
the Bank, its business and property in the event of Executive’s breach of this Section 6, agree that, in the event of any
such breach by Executive, the Bank will be entitled, in addition to any other remedies and damages available, to an injunction
to restrain the violation hereof by Executive and all persons acting for or with Executive. Executive represents and admits that
Executive’s experience and capabilities are such that Executive can obtain employment in a business engaged in other lines
of business than the Bank, and that the enforcement of a remedy by way of injunction will not prevent Executive from earning a
livelihood. Nothing herein will be construed as prohibiting the Bank from pursuing any other remedies available to them for such
breach or threatened breach, including the recovery of damages from Executive.

 

7.           SOURCE
OF PAYMENTS.

 

All payments provided
in this Agreement shall be timely paid by check or direct deposit from the general funds of the Bank (or any successor of the Bank).

 

8.            EFFECT
ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.

 

This Agreement contains
the entire understanding between the parties hereto and supersedes any prior employment agreement between the Bank or any predecessor
of the Bank and Executive, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring
to Executive under another plan, program or agreement (other than an employment agreement) between the Bank and Executive.

 

9.            NO
ATTACHMENT; BINDING ON SUCCESSORS.

 

(a)          Except
as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation,
sale, assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment
by operation of law, and any attempt, voluntary or involuntary, to affect any such action shall be null, void, and of no effect.

 

(b)          The
Bank’s obligations under this Agreement shall be binding on any and all successors or assigns, whether direct or indirect,
by purchase, merger, consolidation or otherwise, to all or substantially all the business or assets of the Bank, in the same manner
and to the same extent that the Bank would be required to perform if no such succession or assignment had taken place.

 

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10.         MODIFICATION
AND WAIVER.

 

(a)          This
Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto.

 

(b)          No
term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement
of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written
waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such term or condition for the future as to any act other
than that specifically waived.

 

11.         Applicable
law.

 

Notwithstanding anything
herein contained to the contrary, the following provisions shall apply:

 

(a)          The
Bank may terminate Executive’s employment at any time, but any termination by the Bank other than termination for Cause shall
not prejudice Executive’s right to compensation or other benefits under this Agreement. Executive shall have no right to
receive compensation or other benefits under this Agreement for any period after Executive’s termination for Cause, other
than the Accrued Obligations.

 

(b)          In
no event shall the Bank (nor any affiliate) 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. sec. 1828(k)), 12 C.F.R. Part 359, or any other applicable law.

 

(c)          Notwithstanding
anything in this Agreement to the contrary, to the extent that a payment or benefit described in this Agreement constitutes “non-qualified
deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the
Executive’s termination of employment, then such payments or benefits will be payable only upon the Executive’s “Separation
from Service.” For purposes of this Agreement, a “Separation from Service” will have occurred if the Bank
and Executive reasonably anticipate that either no further services will be performed by Executive after the date of termination
(whether as an employee or as an independent contractor) or the level of further services performed is less than 50 percent of
the average level of bona fide services in the 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).

 

(d)          Notwithstanding
the foregoing, if Executive is a “Specified Employee” (i.e., a “key employee” of a publicly traded
company within the meaning of Section 409A of the Code and the final regulations issued thereunder) and any payment under this
Agreement is triggered due to Executive’s Separation from Service, then solely to the extent necessary to avoid penalties
under Section 409A of the Code, no payment shall be made during the first six (6) months following Executive’s Separation
from Service. Rather, any payment which would otherwise be paid to Executive during such period shall be accumulated and paid to
Executive in a lump sum on the first day of the seventh month following such Separation from Service. All subsequent payments shall
be paid in the manner specified in this Agreement.

 

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(e)          If
the Bank cannot provide Executive or Executive’s dependents any continued health insurance or other welfare benefits as required
by this Agreement because Executive is no longer an employee, applicable rules and regulations prohibit such benefits or the payment
of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank shall pay Executive a cash
lump sum payment reasonably estimated to be equal to the value of such benefits or the value of the remaining benefits at the time
of such determination. Such cash payment shall be made in a lump sum within 30 days after the later of Executive’s date of
termination or the effective date of the rules or regulations prohibiting such benefits or subjecting the Bank to penalties. Notwithstanding
the foregoing, if such cash payment would violate the requirements of Treasury Regulation Section 1.409A-3(j), the Executive’s
cash payment in lieu of the continued health insurance or welfare benefits as required by this Agreement shall be payable at the
same time the related premium payments would have been paid by the Bank and will be payable for the duration of the applicable
coverage period.

 

(f)          To
the extent not specifically provided in this Agreement, any compensation or reimbursements payable to Executive shall be paid or
provided no later than two and one-half (2.5) months after the calendar year in which such compensation is no longer subject to
a substantial risk of forfeiture within the meaning of Treasury Regulation Section 1.409A-1(d).

 

(g)          Each
payment pursuant to this Agreement is intended to constitute a separate payment for purposes Treasury Regulation Section 1.409A-2(b)(2).

 

(h)          Notwithstanding
anything in this Agreement to the contrary, Executive understands that nothing contained in this Agreement limits Executive’s
ability to file a charge or complaint with the Securities and Exchange Commission or any other federal, state or local governmental
agency or commission (“Government Agencies”) about a possible securities law violation without approval of the
Bank (or any affiliate). Executive further understands that this Agreement does not limit Executive’s ability to communicate
with any Government Agency or otherwise participate in any investigation or proceeding that may be conducted by any Government
Agency, including providing documents or other information, without notice to the Bank (or any affiliate) related to the possible
securities law violation. This Agreement does not limit Executive’s right to receive any resulting monetary award for information
provided to any Government Agency.

 

12.         SEVERABILITY.

 

If, for any reason,
any provision of this Agreement, or any part of any provision, is held invalid, such invalidity shall not affect any other provision
of this Agreement or any part of such provision not held so invalid, and each such other provision and part thereof shall to the
full extent consistent with law continue in full force and effect.

 

13.         GOVERNING
LAW.

 

This Agreement shall
be governed by the laws of the State of New York, but only to the extent not superseded by federal law.

 

    	 	12	 

     

    

  

14.         JURISDICATION
AND VENUE.

 

The parties hereto
hereby agree that all demands, claims, actions, causes of action, suits, proceedings, and litigation between or among the parties
relating to this Agreement, will be filed, tried, and litigated only in a court located in Dutchess County in the State of New
York, unless another venue is required by applicable law. In connection with the foregoing, the parties hereto irrevocably consent
to the jurisdiction and venue of such court and expressly waive any claims or defenses of lack of jurisdiction of or proper venue
by such court.

 

15.         PAYMENT
OF LEGAL FEES.

 

To the extent that
such payment(s) may be made without triggering penalty under Code Section 409A, all reasonable legal fees paid or incurred by Executive
pursuant to any dispute relating to this Agreement shall be paid or reimbursed by the Bank provided that the dispute is resolved
in Executive’s favor, and such reimbursement shall occur no later than 60 days after the end of the year in which the dispute
is settled or resolved in Executive’s favor.

 

16.         INDEMNIFICATION.

 

The Bank shall provide
Executive (including Executive’s heirs, executors and administrators) with coverage under a standard directors’ and
officers’ liability insurance policy at its expense, and shall indemnify Executive (and Executive’s heirs, executors
and administrators) in accordance with the charter and bylaws of the Bank and to the fullest extent permitted under applicable
law against all expenses and liabilities reasonably incurred by Executive in connection with or arising out of any action, suit
or proceeding in which he may be involved by reason of Executive having been a director or officer of the Bank or any subsidiary
or affiliate of the Bank.

 

17.         Notice.

 

For the purposes of
this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to
have been duly given when delivered or mailed by certified or registered mail, return receipt requested, postage prepaid, addressed
to the respective addresses set forth below:

 

	To the Bank	Rhinebeck Bank
	 	Two Jefferson Plaza
	 	Poughkeepsie, New York 12601
	 	Attention: Corporate Secretary
	 	 
	To Executive:	Most recent address on file with the Bank
	 	 

 

[Signature Page Follows]

 

    	 	13	 

     

    

 

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first written above.

 

	 	RHINEBECK BANK
	 	 
	 	By:	/s/ Michael J. Quinn
	 	Name:  Michael J. Quinn
	 	Title:  President & CEO
	 	 
	 	EXECUTIVE
	 	 
	 	/s/ Jamie Bloom
	 	Jamie Bloom

 

    	 	14Exhibit 10.4

 

CHANGE IN CONTROL AGREEMENT

 

This Change in Control
Agreement (this “Agreement”) is made and entered into effective as of August 28, 2018 (the “Effective
Date”), by and between Rhinebeck Bank, a New York-chartered savings bank with its principal place of business in Rhinebeck,
New York (the “Bank”) and James McCardle (“Executive”). Any reference to the “Company”
shall mean any newly-formed the stock holding company of the Bank, or any successor thereto.

 

WHEREAS, the
Bank wishes to assure itself of the continued services of the Executive as Chief Lending Officer of the Bank or any successor executive
position with the Bank that is agreed to and consented by Executive (the “Executive Position”) for the period
provided in this Agreement; and

 

WHEREAS, in
order to induce the Executive to continue employment with the Bank and to provide further incentive to achieve the financial and
performance objectives of the Bank, the parties desire to specify the benefits which shall be due to the Executive in the event
of a Change in Control (as defined below).

 

NOW THEREFORE,
in consideration of the mutual agreements herein contained, and upon the other terms and conditions hereinafter provided, the parties
hereby agree as follows:

 

1.           Term
of this Agreement.

 

(a)          Term
and Annual Renewal. The term of this Agreement shall commence as of the Effective Date and shall continue thereafter through
December 31, 2019 (the “Term”). Commencing on January 1, 2019, and on each January 1 thereafter (each, a “Renewal
Date”), the Term shall extend automatically for one additional year, so that the Term will be [two years] from such Renewal
Date, unless either the Bank or the Executive by written notice to the other given at least ninety (90) days prior to such Renewal
Date notifies the other of its intent not to extend the same. In the event that notice not to extend is given by either the Bank
or the Executive, this Agreement shall terminate as of the last day of then current Term.

 

(b)          Change
in Control. In the event a Change in Control (as defined below) occurs during the initial Term or the extended Term, the Term
shall be extended automatically so that it is scheduled to expire no less than two (2) years beyond the effective date of the Change
in Control, subject to extension as set forth above.

 

2.           Definitions.
The following words and terms shall have the meanings set forth below for purposes of this Agreement.

 

(a)          Base
Salary. The Executive’s “Base Salary” for purposes of this Agreement shall mean the annual rate of
base salary paid to the Executive by the Bank.

 

(b)          Change
in Control. For purposes of this Agreement, the term “Change in Control” means: (i) a change in the ownership
of the Corporation; (ii) a change in the effective control of the Corporation; or (iii) a change in the ownership of a substantial
portion of the assets of the Corporation as defined in accordance with Code Section 409A. For purposes of this Section 2(b), the
term “Corporation” is defined to include the Bank, the Company or any of their successors, as applicable.

 

     

     

    

 

(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 Corporation that, together with stock
held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock
of such Corporation.

 

(ii)         A
change in the effective control of the Corporation 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 12-month period ending
on the date of the most recent acquisition by such person or persons) ownership of stock of the Corporation possessing 30 percent
or more of the total voting power of the stock of the Corporation, or (B) a majority of the members of the Board is replaced during
any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior
to the date of the appointment or election, provided that this subsection “(B)” is inapplicable where a majority stockholder
of the Corporation is another corporation.

 

(iii)        A
change in a substantial portion of the Corporation’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 12-month period
ending on the date of the most recent acquisition by such person or persons) assets from the Corporation that have a total gross
fair market value equal to or more than 40 percent of the total gross fair market value of (A) all of the assets of the Corporation,
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. 

 

Notwithstanding
anything herein to the contrary, a Change in Control shall not be deemed to have occurred either: (i) upon the conversion of the
Bank to stock form (as a stand-alone stock bank or as the subsidiary of a mutual or stock holding company); or (ii) following the
conversion of the Bank to a subsidiary of a mutual holding company, upon the subsequent conversion of any mutual holding company
to stock form, or in connection with any reorganization used to effect such a conversion.

 

(c)          Termination
for Good Reason. For purposes of this Agreement, “Termination for Good Reason” means a termination by the
Executive if any of the following occurs without the Executive’s express written consent:

 

(i)          a
material reduction in Executive’s Base Salary and/or aggregate incentive compensation opportunities under the Bank’s
annual and long-term incentive plans or programs, as applicable;

 

(ii)         a
material reduction in Executive’s authority, duties or responsibilities from the position and attributes associated with
the Executive Position or any successor executive position with the Bank that is agreed to and consented by Executive;

 

    	 	2	 

     

    

  

(iii)        a
relocation of Executive’s principal place of employment by more than 35 miles from the Bank’s main office location
as of the date of this Agreement; or

 

(iv)        a
material breach of this Agreement by the Bank.

 

Notwithstanding the
foregoing, prior to any termination of employment for Good Reason, Executive must first provide written notice to the Board of
Directors of the Bank within 90 days following the initial existence of the condition, describing the existence of such condition,
and the Bank shall thereafter have the right to remedy the condition within 30 days of the date the Board received the written
notice from Executive, but the Bank may waive its right to cure. If the Bank remedies the condition within such 30-day cure period,
then no Good Reason shall be deemed to exist with respect to such condition. If the Bank does not remedy the condition within such
30-day cure period, then Executive may deliver a notice of termination for Good Reason at any time within 60 days following the
expiration of such cure period.

 

(d)          Termination
for Cause. “Termination for Cause” shall mean termination because of, in the good faith determination of
the Board, the Executive’s:

 

(i)          material
act of dishonesty or fraud in performing Executive’s duties on behalf of the Bank;

 

(ii)         willful
misconduct that in the judgment of the Board will likely cause economic damage to the Bank or injury to the business reputation
of the Bank;

 

(iii)        breach
of fiduciary duty involving personal profit;

 

(iv)        intentional
failure to perform stated duties under this Agreement after written notice thereof from the Board;

 

(v)         willful
violation of any law, rule or regulation (other than traffic violations or similar offenses which results only in a fine or other
non-custodial penalty) that reflect adversely on the reputation of the Bank, any felony conviction (except for a conviction related
to a traffic violation or a DUI or DWI conviction under applicable law), any violation of law involving moral turpitude, or any
violation of a final cease-and-desist order; or any violation of the policies and procedures of the Bank as outlined in the Bank’s
employee handbook, which would result in termination of the Bank employees, as from time to time amended and incorporated herein
by reference; or

 

(vii)       material
breach by Executive of any provision of this Agreement.

 

Any determination of
Cause under this Agreement will be made by resolution adopted by at least two-thirds vote of the disinterested members of the Board
of Directors at the Bank at a meeting called and held for that purpose. Executive will be provided with reasonable notice of such
meeting and Executive will be given an opportunity to be heard before such vote is taken by the disinterested members of the Board
of Directors of the Bank.

 

    	 	3	 

     

    

 

3.          Benefits
upon Termination in Connection with a Change in Control.

 

(a)          In
the event of the Executive’s involuntary termination of employment by the Bank for reasons other than termination for Cause,
or a voluntary termination of employment by the Executive that constitutes a Termination for Good Reason occurring on or after
a Change in Control during the term, the Bank (or any successor) shall pay the Executive, as severance pay, a cash lump sum payment
equal to two (2) times the sum of Executive’s (i) current Base Salary (or Executive’s Base Salary in effect immediately
prior to the Change in Control, if higher); and (ii) average annual cash incentive compensation awarded under the Rhinebeck Bank
Short-Term Incentive and Retention Plan, which would include any percentage of the award that is tax-deferred and payable pursuant
to the Rhinebeck Bank Long-Term Incentive and Retention Plan (or any other comparable cash incentive plan) for three most recent
annual performance periods immediately prior to the Change in Control. Such payment shall be payable within 30 days following the
Executive’s date of termination.

 

(b)          In
the event of the Executive’s termination of employment for reasons that would entitle the Executive to a severance payment
under Section 3(a) hereof, Executive and Executive’s family will be entitled to elect continuing medical and dental coverage
under Internal Revenue Code (“Code”) Section 4980B (“COBRA”) and the Bank shall pay the cost
of the Executive’s (and, to the extent eligible under the terms of the applicable plans, the Executive’s family members’)
continuing medical and dental coverage, as in effect on the Executive’s date of termination, and as amended from time to
time thereafter, for a period of eighteen (18) months following such date of termination (the “COBRA Period”),
to the extent that Executive and Executive’s family members elect COBRA continuation coverage for such period. In the event
that paying the cost of such coverage on a non-taxable basis would result in penalties or excise taxes to the Bank or the Bank
is unable to provide such coverage on a non-taxable basis, then the cost of such COBRA coverage that is funded by the Bank shall
be includable in the taxable income of the Executive.

 

4.          280G
Cutback. Notwithstanding anything in this Agreement to the contrary, in no event shall the aggregate payments or benefits
to be made or afforded to the Executive under this Agreement, either as a stand-alone benefit or when aggregated with other payments
to, or for the benefit of, the Executive (collectively referred to as the “Change in Control Benefits”) constitute
an “excess parachute payment” under Code Section 280G or any successor thereto, and in order to avoid such a result,
the Executive’s benefits payable under this Agreement shall be reduced by the minimum amount necessary so that the Change
in Control Benefits that are payable to the Executive are not subject to taxes or penalties under Code Sections 280G and 4999.

 

5.          Source
of Payments. All payments provided in this Agreement shall be timely paid by check or direct deposit from the general funds
of the Bank (or any successor to the Bank).

 

6.          Entire
Agreement. This Agreement embodies the entire agreement between the Bank and the Executive with respect to the matters
agreed to herein. All prior agreements between the Bank and the Executive with respect to the matters agreed to herein are hereby
superseded and shall have no force or effect, except that this Agreement shall not affect or operate to reduce any benefit or compensation
inuring to the Executive of a kind elsewhere provided. No provision of this Agreement shall be interpreted to mean that the Executive
is subject to receiving fewer benefits than those available to the Executive without reference to this Agreement.

 

    	 	4	 

     

    

 

7.           No
Attachment. Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation,
commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, or
similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to affect any such action shall be
null, void, and of no effect.

 

8.           Binding
on Successors. The Bank’s obligations under this Agreement shall be binding on any and all successors or assigns,
whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all the business or assets
of the Bank, in the same manner and to the same extent that the Bank would be required to perform if no such succession or assignment
had taken place.

 

9.           Modification
and Waiver.

 

(a)          This
Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto.

 

(b)          No
term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement
of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written
waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other
than that specifically waived.

 

10.         Applicable
Law.

 

(a)          The
Board may terminate the Executive’s employment or the Executive may voluntarily terminate employment at any time prior to
the occurrence of a Change in Control, and upon such termination, the Bank shall have no further obligation to the Executive hereunder.
Any termination by the Board other than Termination for Cause on or after the occurrence of a Change in Control, shall not prejudice
the Executive’s right to compensation or other benefits under this Agreement. The Executive shall have no right to receive
compensation or other benefits for any period after the Executive’s Termination for Cause or if the Executive terminates
employment due to death. In the event of Executive’s Disability (as defined in accordance with Code Section 409A) on or after
the occurrence of a Change in Control, Executive shall not be entitled to any benefits hereunder.

 

(b)          In
no event shall the Bank (nor any affiliate) 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. sec. 1828(k)), 12 C.F.R. Part 359, or any other applicable law.

 

    	 	5	 

     

    

 

(c)          Notwithstanding
anything in this Agreement to the contrary, to the extent that a payment or benefit described in this Agreement constitutes “non-qualified
deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the
Executive’s termination of employment, then such payments or benefits shall be payable only upon the Executive’s “Separation
from Service.” 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 the date of termination
(whether as an employee or as an independent contractor) or the level of further services performed is less than 50 percent of
the average level of bona fide services in the 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).

 

(d)          Notwithstanding
the foregoing, if Executive is a “Specified Employee” (i.e., a “key employee” of a publicly traded
company within the meaning of Section 409A of the Code and the final regulations issued thereunder) and any payment under this
Agreement is triggered due to Executive’s Separation from Service, then solely to the extent necessary to avoid penalties
under Section 409A of the Code, no payment shall be made during the first six (6) months following Executive’s Separation
from Service. Rather, any payment which would otherwise be paid to Executive during such period shall be accumulated and paid to
Executive in a lump sum on the first day of the seventh month following such Separation from Service. All subsequent payments shall
be paid in the manner specified in this Agreement.

 

(e)          Each
payment pursuant to this Agreement is intended to constitute a separate payment for purposes Treasury Regulation Section 1.409A-2(b)(2).

 

11.         Governing
Law. This Agreement shall be governed by the laws of the State of New York, but only to the extent not superseded by federal
law.

 

12.         Jurisdiction
and Venue.     The parties hereto hereby agree that all demands,
claims, actions, causes of action, suits, proceedings, and litigation between or among the parties relating to this Agreement,
will be filed, tried, and litigated only in a court located in Dutchess County in the State of New York, unless another venue
is required by applicable law. In connection with the foregoing, the parties hereto irrevocably consent to the jurisdiction and
venue of such court and expressly waive any claims or defenses of lack of jurisdiction of or proper venue by such court.

 

13.         Notice.
    For the purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when delivered or mailed by certified or registered mail, return receipt requested, postage
prepaid, addressed to the respective addresses set forth below:

 

	To the Bank	
        Rhinebeck Bank

        Two Jefferson Plaza

        Poughkeepsie, New York 12601

        Attention: Corporate Secretary

	 	 
	To the Executive:	Most recent address on file with the Bank

 

[Signature Page to
Follow]

 

    	 	6	 

     

    

 

IN WITNESS WHEREOF,
this Agreement is entered into as of the day and date first above written.

 

	 	RHINEBECK BANK
	 	 	 
	 	By:	/s/ Michael J. Quinn
	 	Name: 	Michael J. Quinn
	 	Title:  	President & CEO
	 	 
	 	EXECUTIVE
	 	 
	 	/s/ James McCardle
	 	James McCardle

 

    	 	7

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