Document:

EX-10.1

 Exhibit 10.1 
 AMENDMENT NO. 1 TO ASSIGNMENT, 
 PURCHASE AND ASSUMPTION AGREEMENT

 THIS AMENDMENT NO. 1 TO ASSIGNMENT, PURCHASE AND ASSUMPTION AGREEMENT, dated as of August 16, 2012 (this
“Amendment”), is by and between First Niagara Bank, National Association, a national banking association with its principal office in Buffalo, New York (“Assignor”), and Five Star Bank, a New York State chartered
bank with its principal office in Warsaw, New York (“Purchaser”). 
 RECITALS 

WHEREAS, Assignor entered into the Purchase and Assumption Agreement dated as of July 30, 2011 (the “Primary Purchase
Agreement”) by and among HSBC Bank USA, National Association, a national banking association (“HSBC”), HSBC Securities (USA) Inc., a Delaware corporation (“HSI”), and HSBC Technology & Services
(USA) Inc., a Delaware corporation (“HTSI” and collectively with HSBC and HSI, the “HSBC Sellers”) and Assignor; 
 WHEREAS, pursuant to, and on the terms and conditions set forth in, the Primary Purchase Agreement, (i) Assignor agreed to purchase from the HSBC Sellers, and the HSBC Sellers agreed to sell to
Assignor, those assets identified and defined in the Primary Purchase Agreement as the “Purchased Assets” and referred to and defined in the Primary Purchase Agreement and in this Amendment as the “Primary Purchased
Assets” and (ii) the HSBC Sellers agreed to transfer to Assignor, and Assignor agreed to assume, those liabilities and obligations identified and defined in the Primary Purchase Agreement as the “Assumed Liabilities”
and referred to and defined in the Primary Purchase Agreement and in this Amendment as the “Primary Assumed Liabilities”; 
 WHEREAS, the Primary Purchase Agreement permits Assignor, on the terms and conditions set forth therein, to assign its right to purchase a portion of the Primary Purchased Assets and its obligations to
assume the related portion of the Primary Assumed Liabilities to a third party purchaser; 
 WHEREAS, Assignor and Purchaser
entered into an Assignment, Purchase and Assumption Agreement dated as of January 19, 2012 (the “APA Agreement”); 
 WHEREAS, pursuant to, and on the terms and conditions set forth in, the APA Agreement, Assignor assigned its right to purchase a portion of the Primary Purchased Assets and its obligations to assume the
related portion of the Primary Assumed Liabilities to Purchaser, and Purchaser agreed to acquire such portion of the Primary Purchased Assets and to assume the related portion of the Primary Assumed Liabilities, on the terms and conditions set forth
in the APA Agreement; and in a letter dated January 19, 2012 addressed to Assignor, the HSBC Sellers consented to such assignment, subject to the terms of such consent and to the rights of the HSBC Sellers to consent to any future amendment of
the APA Agreement, as provided in Section 14.1 thereof; 
 WHEREAS, Assignor and the HSBC Sellers amended the Primary
Purchase Agreement pursuant an Amendment dated April 30, 2012 (the “First Amendment”) among Assignor and the HSBC Sellers; 

 WHEREAS, Assignor and the HSBC Sellers amended and restated the Primary Purchase Agreement,
as amended by the First Amendment, pursuant to the Purchase and Assumption Agreement among Assignor and the HSBC Sellers, as amended and restated as of May 17, 2012 (the “Restated Primary Purchase Agreement”), a copy of which
is attached hereto as Exhibit A; 
 WHEREAS, Assignor and Purchaser desire to amend the APA Agreement on the terms set
forth in this Amendment, subject to the consent of the HSBC Sellers in accordance with Section 14.1 of the APA Agreement. 

NOW, THEREFORE, in consideration of the premises and the mutual promises and obligations set forth herein, the parties, intending to be
legally bound, agree as follows: 
 1. Defined Terms. 

(a) Except as otherwise expressly provided in this Amendment, terms used in this Amendment as defined terms have the respective meanings
assigned to them in the APA Agreement. 
 (b) The term “Assumed Deposits” in Section 1.1 of the APA
Agreement is hereby amended and restated to read as follows: “Assumed Deposits” shall mean deposits (as defined in 12 U.S.C. § 1813(l)) that are held by HSBC or any of its Subsidiaries in connection with the Transferred Business,
including demand deposits, savings accounts, money market deposit accounts, mutual fund and reserve fund sweep accounts, negotiable order of withdrawal accounts, certificates of deposit, deposits acquired through the telephone or the internet or
other electronic media and, subject to Section 7.11, IRA, Employee Pension Plan and Keogh accounts, including any debit accounts related thereto, in each case, that are listed on Schedule 1.1(a) (as updated pursuant to Section 7.12),
excluding: (i) structured deposits; (ii) brokered deposits; (iii) unclaimed deposits subject to unclaimed property statute/escheatment; (iv) deposits constituting money orders, certified and official checks and other items in the
process of clearing; (v) deposits by state, county and municipal government agencies and authorities; and (vi) deposits that constitute Excluded Deposits. 
 (c) The term “Categorized Customer” is added to Section 1.1 of the APA Agreement and shall have the meaning specified in Exhibit 8.10 attached to this Amendment and added as
Exhibit 8.10 to the APA Agreement. 
 (d) The term “Credit Documents” in Section 1.1 of the APA
Agreement is hereby amended and restated to read as follows: “Credit Documents” shall mean all credit support, reimbursement agreements and related documents (including, but not limited to, any collateral documents) related to the
Letters of Credit and all documents evidencing or securing a Purchased Loan or In-Process Loan in the possession of HSBC or its Subsidiaries (regardless of where located, including in file or imaging systems of HSBC or its Subsidiaries), including,
without limitation, all original notes, reimbursement agreements, security agreements, deeds of trust, mortgages, loan agreements, and corresponding reports, certifications and disclosures required by Applicable Law, guarantees, sureties and
insurance policies (including title insurance policies), applications and credit information, financial information, insurance information, signature cards, all information on obligors and borrowers and guarantors, taxpayer identification number
certifications and records relating thereto, and all modifications, waivers and consents relating to any of the foregoing. 

  
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 (e) The term “Designated Loan Losses” is added to Section 1.1 of the
APA Agreement and shall mean any Losses, including but not limited to, enforcement and collection costs and expenses and any amounts not recovered by the holder of a Designated Purchased Loan under a Designated Purchased Loan after the due date
thereof, in each case arising out of, related to or resulting from, the failure of Assignor to deliver (or to cause the HSBC Sellers to deliver) an accurate original or copy of the relevant promissory note, together with any and all amendments
thereto. 
 (f) The term “Designated Purchased Loan” is added to Section 1.1 of the APA Agreement and
shall mean each Purchased Loan for which the applicable Seller Entity does not timely deliver to Purchaser, in accordance with Section 8.3(c) of the Restated Primary Purchase Agreement, an accurate original or copy of the relevant promissory
note, together with any and all amendments thereto. 
 (g) The term “Eligible Customer” is added to
Section 1.1 of the APA Agreement and shall mean (i) a Banking Center Customer whose primary mailing address is located in Westchester County or (ii) a Banking Center Customer who is designated by the HSBC Sellers’ internal
classification system as a “Premier International” customer and who is registered for the HSBC Sellers’ “Global View/Global Transfer” functionality or who is registered on the HSBC Sellers’ “Global Customer
Directory.” 
 (h) The term “Excluded Deposits” in Section 1.1 of the APA Agreement is hereby amended
and restated to read as follows: “Excluded Deposits” shall mean any and all deposits of HSBC and its Affiliates that are not Assumed Deposits, including, but not limited to: (i) any proprietary deposits of HSBC or any of its
Affiliates booked at the Banking Centers, (ii) any deposits associated with the Retained Businesses (including deposits booked at the Banking Centers), (iii) deposits acquired through the telephone or the internet or other electronic media
from Persons with primary addresses located in the Designated Footprint that are not Banking Center Customers, (iv) any deposits that become Excluded Deposits pursuant to Section 7.11, (v) any deposits of Retained Employees,
(vi) deposits that, as of the date that is three (3) Business Days prior to the Closing Date, are subject to a legal hold or levy, including those holds or levies placed on such deposits as a result of an attachment, garnishment,
in-arrears child support order and other legal actions, (vii) deposits held in an account designated by HSBC’s internal classification system as a “Premier” deposit account if the relationship manager assigned to such deposit
account is located in a branch of Seller other than a Banking Center and (viii) deposits of Banking Center Customers who (a) have a primary mailing address (based on the HSBC Sellers’ records) within a country listed on Schedule
1.1(p) or (b) have a primary mailing address (based on the HSBC Sellers’ records) outside the United States and not having a United States tax identification number recorded on the HSBC Sellers’ account records for such Banking
Center Customer. 

  
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 (i) The term “In-Process Loans” is added to Section 1.1 of the APA
Agreement and shall mean all applications (and related documentation) for Loans from the HSBC Sellers that would otherwise constitute Purchased Loans if, pursuant to such applications, credit were extended, or the commitment to extend credit became
legally binding, prior to the Closing Date, other than the Retained In-Process Loans. To avoid doubt, In-Process Loans shall not include applications for Student Loans, Loans to Retained Employees or Mortgage Loans guaranteed by the Veterans’
Administration or the Federal Housing Administration or for loans to HSBC or its Subsidiaries or any of their Affiliates. 
 (j)
The term “Letter of Credit” in Section 1.1(a) of the APA Agreement is hereby amended and restated to read as follows: “Letter of Credit” shall mean letters of credit, including any standby letters of credit,
issued by HSBC in connection with the Transferred Business, in each case that are listed on Schedule 2.1(b)(10); provided the Letters of Credit shall not include any letter of credit under which a draw has been made and which has not, within
60 days of such draw, been reimbursed by the customer. 
 (k) The term “Mortgage Loan” is added to
Section 1.1 of the APA Agreement and shall mean a Loan secured by a first or second mortgage, any home equity loan or any home equity line of credit. References in the APA Agreement to “mortgage loan” or “mortgage loans”
shall be construed to be references to a “Mortgage Loan” as defined in the preceding sentence. 
 (l) The term
“Net Book Value” in Section 1.1 of the APA Agreement is hereby amended and restated to read as follows: “Net Book Value” shall mean the book value net of any associated allowance, reserve or other contra-asset
account, as reflected in the applicable HSBC Seller’s books and records, determined in accordance with GAAP consistently applied; provided, however, that no Federal, state, local, or foreign income tax assets or tax liabilities shall be
reflected; provided, further, that for purposes of the Closing Payment the Net Book Value of fixed assets shall reflect the depreciation of such fixed assets in accordance with GAAP, consistently applied, until the Closing Date, as if held-for-sale
accounting treatment with respect to such fixed assets did not apply, regardless of the treatment of such fixed assets on the applicable HSBC Seller’s books and records. 
 (m) The term “Outside Date” in Section 1.1 of the APA Agreement is hereby amended and restated to read as follows: “Outside Date” shall mean August 31, 2012.

 (n) The term “Repurchase Price” is added to Section 1.1 of the APA Agreement and shall mean, with
respect to any Designated Purchased Loan, the unpaid principal balance of the Designated Purchased Loan plus accrued interest and penalties, if any, as reflected in Purchaser’s books and records; provided, however, that no Federal, state,
local, or foreign income tax assets or tax liabilities shall be reflected; provided, further, that the treatment of the Designated Purchased Loans on the books and records of Purchaser shall be in a manner consistent with the treatment of other
similar loans on the books and records of Purchaser. 

  
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 (o) The term “Restricted Items” is added to Section 1.1 of the APA
Agreement and shall have the meaning specified in Section 7.7 which shall be amended and restated to read as follows: “Notwithstanding anything in this Agreement to the contrary, this Agreement shall not constitute an agreement to
assign any Purchased Asset, Assumed Agreement, Assumed Deposits or other Assumed Liability, or any claim or right or any benefit arising thereunder or resulting therefrom if an attempted assignment thereof, without the consent of a third party
thereto, would constitute a breach thereof or in any way affect the rights of an HSBC Seller or its Subsidiaries thereunder or be contrary to Applicable Law (any item so restricted from transfer or assignment, a “Restricted Item”).
If any such consent or approval is not obtained, Assignor will use commercially reasonable efforts to cause the HSBC Seller to use its reasonable best efforts (which shall not require Assignor or such HSBC Seller to pay any money or other
consideration to any Person or to initiate any claim or proceeding against any Person) to secure an arrangement reasonably satisfactory to Purchaser ensuring that Purchaser will receive the benefits under the agreement for which such consent is
being sought following the Closing; provided, however, that Assignor shall have no obligation to obtain or to cause the HSBC Seller to obtain such consent or approval or to provide or cause an HSBC Seller to provide such an alternative
arrangement other than the undertaking to use reasonable best efforts to obtain or provide the same as set forth in this Section 7.7 and Purchaser shall remain obligated to close the transactions contemplated herein, subject to the other
provisions hereof, and, shall have no remedy for failure of Assignor or the HSBC Seller to obtain any such consent or approval or to provide any such alternative arrangement.” 

(p) The term “Retained Businesses” in Section 1.1(a) of the APA Agreement is hereby amended and restated to read as
follows: “Retained Businesses” shall mean the following businesses (wherever conducted by HSBC and its Affiliates, including within the Designated Footprint) and the current and future Relationships associated therewith:
(i) the Middle-Market and Large Corporate Banking Business, (ii) the Private Banking Business, (iii) the Student Loan Business, (iv) the Direct Banking Business, and (v) the business of providing Banking Related Services to
Categorized Customers and Eligible Customers whose Relationships are excluded from the Transferred Business pursuant to the processes referred to in Section 8.10. “Retained Businesses” shall also include the business of
providing other financial services (including Banking Related Services) to customers of such Retained Businesses and their Related Persons. 
 (q) The term “Retained In-Process Loans” is added to Section 1.1 of the APA Agreement and shall mean all applications (and related documentation) for Mortgage Loans, including the
potential Mortgage Loan associated therewith, that have been submitted to the HSBC Sellers after July 31, 2012. 
 2.
Change to Purchased Assets and Excluded Assets. As used in the APA Agreement, Purchased Assets shall: (i) include In-Process Loans; (ii) shall not include Mortgage Loans originated with or guaranteed by the Veterans Administration
or the Federal Housing Administration; and (iii) shall exclude books, records and other data primarily relating to the Excluded Assets or Excluded Liabilities. As used in the APA Agreement, Excluded Assets shall include the Retained In-Process
Loans, the Letters of Credit and the Restricted Items. 

  
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 3. Change to Section 2.1(a)(11): Section 2.1(a)(11) shall be amended and
restated to read as follows: “all books, records and other data relating primarily to the Transferred Business, including all files (including suspicious activity reports to the extent permitted by Applicable Law), customer and supplier lists,
mailing lists, accounting records, documentation or records primarily relating to the Transferred Business (other than those primarily relating to the Excluded Assets or Excluded Liabilities) or the administration of the Assumed Agreements and the
Assumed Deposits, real property files with respect to Purchased Real Property and Real Property Leases (including lease documentation, maintenance records, plans and permits, to the extent in the possession of the HSBC Sellers or any of their
respective Subsidiaries), catalogs, printed materials and all technical and other data relating to the Transferred Business other than (a) corporate minute books and, except for Forms W-8 and W-9 and similar tax forms provided to the HSBC
Sellers or any of their respective Subsidiaries by customers of the Transferred Business, income tax records of the HSBC Sellers or any of their respective Subsidiaries, (b) personnel files and records and (c) books and records to the
extent relating to accounts that have terminated prior to Closing; provided, however, that the HSBC Sellers and their respective Subsidiaries shall have the right to retain copies of all such books, records and other data that are part
of the Purchased Assets to the extent reasonably necessary for, and solely for use in connection with, tax, regulatory, litigation or other legitimate, non-competitive purposes.” 

4. Change to Closing Documents and Deliveries. If and solely to the extent that Section 8.3(c) of the Restated Primary
Purchase Agreement results in a change to the timing of deliveries that would otherwise be made by the HSBC Sellers pursuant to Section 4.2(a)(7) of the APA Agreement, Purchaser consents to such change. Assignor shall upon Purchaser’s
request use its commercially reasonable efforts to cause the HSBC Sellers to comply with Section 8.3(c) of the Restated Primary Purchase Agreement. 
 5. Change Regarding Letters of Credit. 
 (a) In recognition that Purchased
Assets shall not include Letters of Credit: (i) Section 2.1(a)(9) of the APA Agreement is hereby amended and restated to read “Intentionally Omitted”; (ii) a new Section 2.1(b)(10) is hereby added to the APA Agreement,
to read in its entirety as follows: “the Letters of Credit as set forth on Schedule 2.1(b)(10).”; (iii) the term “Assumed Agreements” in Section 1.1 of the APA shall not include Letters of Credit; (iv) the
term “Assumed Letters of Credit” in Section 1.1 of the APA is hereby deleted; (v) a new Exhibit 8.4, in the form of Exhibit 8.4 attached to this Amendment, is hereby added to the APA Agreement; and
(vi) Section 8.4 of the APA Agreement is hereby amended and restated to read as follows: “Assignor and Purchaser agree to enter into an agreement (the “Interim Processing Agreement”), in substantially the form
attached hereto as Exhibit 8.4, on the Closing Date providing procedures with respect to the handling of the Letters of Credit and draws thereunder following the Closing Date. Purchaser agrees, and the Interim Processing Agreement shall
provide, that following the Closing Date, Purchaser shall reimburse Assignor for any draws under the Letters of Credit that are honored by Assignor pursuant to Section 8.4 of the Primary Purchase Agreement. To provide for payment of
Purchaser’s obligation under this Section 8.4 and the Interim Processing Agreement, if a reimbursement is not otherwise made pursuant to the terms of the Interim Processing Agreement, Purchaser shall issue in favor of Assignor an
irrevocable standby letter of credit, in form and substance reasonably acceptable to Assignor (the “Stand-by Facility”), in an aggregate face amount equal to the maximum amount that may be drawn under the Letters of Credit
associated with the Banking Centers (subject to any adjustments that may be provided in the Interim Processing Agreement). If reimbursement by Purchaser to Assignor pursuant to the Interim Processing Agreement is not received by the [second
(2nd) Business Day] following Assignor’s request for reimbursement, Assignor shall be entitled to draw on the Stand-by Facility for any such unreimbursed amounts. On the Closing Date, Assignor shall cause HSBC to transfer and assign its
rights under any Credit Documents related to the Letters of Credit associated with the Banking Centers transferred on the Closing Date. In the event that Assignor or the HSBC Sellers receive any reimbursements from customers under the Letters of
Credit, Assignor shall, or shall cause the HSBC Sellers to, reasonably promptly transmit such amounts to Purchaser. Following the Closing Date, Assignor shall use commercially reasonable efforts to cause the HSBC Sellers not to renew any Letter of
Credit that is scheduled to expire and to send a notification of non-renewal (notice period permitting) with respect to any Letter of Credit that is subject to “automatic” renewals. For clarity, Purchaser shall have no recourse against
Assignor or the HSBC Sellers for repayment of amounts properly drawn under the Stand-by Facility except to the extent of any obligation to transmit reimbursements as provided above in this Section 8.4 or in the Interim Processing Agreement.
Purchaser acknowledges that the HSBC Sellers shall retain all customer fees associated with the Letters of Credit that have been or that hereafter are paid to the HSBC Sellers. Assignor agrees to reasonably cooperate, and to use commercially
reasonably efforts to cause the HSBC Sellers to reasonably cooperate, with Purchaser’s efforts, if any, to transfer any Letters of Credit after the Closing Date to Purchaser.” 

  
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 (b) At the Closing Purchaser shall cause to be executed and delivered the Stand-By Facility
and Interim Processing Agreement (as each of such terms is defined in Section 8.4 of the APA Agreement as amended and restated pursuant to this Amendment). 
 (c) At the Closing Assignor shall cause to be executed and delivered the Interim Processing Agreement (as such terms is defined in Section 8.4 of the APA Agreement as amended and restated pursuant to
this Amendment). 
 6. Change to Section 7.1 of APA Agreement. The following sentence is hereby added at the end of
Section 7.1(b) of the APA Agreement: “To the extent that such books, records and other data that are related to the Transferred Business relate to Banking Center Customers, Purchaser shall maintain such books, records and other data in
accordance with its record retention policies, but in no event for a period less than seven (7) years from the Closing Date.” 
 7. Change to Section 7.9(a) of the Restated Primary Purchase Agreement. Purchaser consents to the amendment of Sections 7.9(a)(2), 7.9(d) and 7.9(e) and the addition of Section 7.9(a)(9)
to the Restated Primary Purchase Agreement. 
 8. Verix Cash Advance Terminals. Purchaser agrees that the HSBC Sellers
may remove Verix cash advance terminals from the Banking Centers at the HSBC Sellers’ sole expense; provided that if the removal occurs after the Closing Date, such removal will occur after normal business hours and in a manner so as not
to unreasonably interfere with the operations of the applicable Banking Center. 
 9. Special Procedures for Categorized
Customers. A new Section 8.10, captioned “Special Procedures for Categorized Customers” is hereby added to the APA Agreement and shall read as follows: 

(a) The parties acknowledge that Assignor and the HSBC Sellers agreed to the process summarized in Exhibit 8.10 whereby the HSBC
Sellers used their reasonable best efforts to identify Categorized Customers and afford such customer options as to where such customer’s eligible deposit and loan accounts will be maintained. 

  
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 (b) Assignor agrees to use its reasonable best efforts, and to cause the HSBC Sellers to
use their reasonable best efforts, to effect the valid election of any Categorized Customer who properly completed and returned a required “Transfer Exception Form” (or who confirmed their election orally with a customer service
representative of the HSBC Sellers) by April 27, 2012, including, as applicable, on the Update Date and in connection with the delivery of any Final Closing Statement, adjusting Schedule 1.1(a) (Assumed Deposits), Schedule 1.1(h) (Purchased
Overdrafts), Schedule 2.1(a)(6) (Purchased Loans), Schedule 2.1(a)(8) (CRA Assets) and Schedule 2.1(b)(10) (Letters of Credit) to reflect any applicable additions or removals of accounts of Categorized Customers. 

10. Reactive Exclusion of Eligible Customers. If, prior to May 11, 2012, an Eligible Customer contacted an HSBC Seller and
indicated that he or she would like to maintain his or her Relationship with the HSBC Sellers, Assignor shall cause the HSBC Sellers to take any actions it deems necessary to cause such Eligible Customer’s entire Relationship with the HSBC
Sellers to be excluded from, as applicable, the Purchased Assets and Assumed Liabilities. 
 11. Designated Purchased
Loans. 
 (a) Following the Closing Date, if at any time the principal of or interest on a Designated Purchased Loan shall
have been due and unpaid by the obligor thereunder for sixty (60) days, Purchaser may, in its sole discretion, and no later than thirty (30) days after such Designated Purchased Loan becomes sixty (60) days past due (or, with respect
to any Designated Purchased Loans that are sixty (60) days or more past due as of the date on which the Designated Purchased Loan Schedule is delivered, within thirty (30) days of such delivery date), notify the HSBC Sellers and Assignor
that such Designated Purchased Loan has become sixty (60) days past due and present such Designated Purchased Loan to the HSBC Sellers for possible repurchase. Purchaser shall, upon the written request of the HSBC Sellers delivered to Purchaser
not later than fifteen (15) days after being notified of such Designated Purchased Loan, sell such Designated Purchased Loan to the HSBC Sellers at the Repurchase Price of such Designated Purchaser Loan as of the date of such sale. If the HSBC
Sellers elect to repurchase a Designated Purchased Loan, the parties agree to effect the repurchase as promptly as reasonably practical after such election. The parties agree to work in good faith to effect the intention of this Section 13 with
a view towards minimizing Designated Loan Losses and other Losses. Within two (2) Business Days of the Closing Date, Assignor shall cause the HSBC Sellers to use reasonable best efforts deliver to Purchaser, for informational purposes only, a
schedule (the “Designated Purchased Loan Schedule”) listing each of the Designated Purchased Loans transferred on the Closing Date. 
 (b) Clause (3) of Section 13.2(a) of the APA Agreement is hereby amended and restated to read as follows: “any of (i) the Excluded Liabilities, (ii) Liens that are not Permitted
Liens, (iii) the conduct of the Retained Business after the Closing Date, (iv) the conduct of the Non-Assigned Transferred Business after the Closing or (v) any Designated Loan Losses.” 

  
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 12. Notices. All notices, request, demands and other communications required
hereunder shall be in writing and shall be deemed to have been duly given or made if delivered personally, sent by facsimile transmission or telex confirmed in writing within two (2) Business Days, or sent by registered or certified mail,
postage prepaid, as follows: 
  

			
	If to Purchaser to:	  	Peter G. Humphrey
		  	President and Chief Executive Officer
		  	Five Star Bank
		  	220 Liberty Street
		  	Warsaw, NY 14569
		  	Facsimile: (585) 786-1108
		
	With a copy to:	  	John L. Rizzo General Counsel Five Star Bank
		  	220 Liberty Street Warsaw, NY 14569 Facsimile: (585) 786-1108
		
	With an additional copy to:	  	James M. Jenkins, Esq. Harter Secrest & Emery LLP 1600 Bausch & Lomb Place
		  	Rochester, NY 14604 Facsimile: (585) 232-6500
		
	If to Assignor:	  	First Niagara Bank 726 Exchange Street Suite 618
		  	Buffalo, New York 14210 Fax: (716) 819-5158 Attention: Kristy Berner
		  	First Vice President & Assistant General Counsel
		
	With a copy to:	  	Pepper Hamilton LLP 3000 Two Logan Square Eighteenth and Arch Streets
		  	Philadelphia, PA 19103-2799 Fax: (215) 981-4750
		  	Attention: Michael Friedman, Esq.

 Any party may change the address or fax number to which such communications are to be sent to it by giving written notice
of change of address to the other parties in the manner provided above for giving notice. 
 13. Governing Law. The
execution, interpretation, and performance of this Amendment shall be governed by the laws of the State of New York without giving effect to any conflict of laws provision or rule (whether of the State of New York or any other jurisdiction) that
would cause the application of the law of any other jurisdiction other than the State of New York. 

  
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 14. Third Party Beneficiaries. This Amendment shall not benefit or create any right
or cause of action in or on behalf of any person other than Assignor and Purchaser, provided that the HSBC Sellers are express third party beneficiaries of this Amendment and shall have the right to enforce the provisions of this Agreement against
any party hereto to the same extent as if they were a party to this Agreement but only to the extent the provisions sought to be enforced by the HSBC Sellers do not enlarge their rights or expand the obligations or liabilities of Assignor under the
Restated Primary Purchase Agreement. 
 15. Counterparts. This Amendment may be executed in any number of counterparts,
each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Amendment shall become binding when two or more counterparts hereof,
individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. The execution and delivery of this Amendment may be effected by facsimile or any other electronic means such as “.pdf” or
“.tiff” files. 
 16. Headings. The headings used in this Amendment are inserted for purposes of convenience of
reference only and shall not limit or define the meaning of any provisions of this Amendment. 
 17. Ratification of APA
Agreement. Except as expressly amended hereby, the APA Agreement continues in full force and effect. 
 [Remainder of
page left intentionally blank] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by
their duly authorized officers as of the date and year first above written. 
  

			
	 ASSIGNOR:
  

FIRST NIAGARA BANK, NATIONAL ASSOCIATION

		
	By:	 	/s/ John R. Koelmel
		 	 Name: John R. Koelmel

Title: President and Chief Executive Officer

  

			
	 PURCHASER:
  

FIVE STAR BANK

		
	By:	 	/s/ Peter G. Humphrey
		 	 Name: Peter G. Humphrey

Title: President and Chief Executive Officer

  
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 Exhibit 10.2 
 SEPARATION AGREEMENT AND RELEASE OF ALL CLAIMS 
 This Separation Agreement
and Release of all Claims (this “Agreement”) is entered into by and between Financial Institutions, Inc., a bank holding company chartered under the laws of the State of New York, having its principal office at 220 Liberty St., Warsaw, New
York 14569, and its subsidiaries and affiliates (collectively referred to as the “Company”); and Peter G. Humphrey (the “Executive” or “you”), an individual residing at 1446 South Rd., Scottsville, New York, 14546.

 1. Resignation/Retirement. You agree that your retirement from the Company was effective at the close of business on
August 27, 2012 (the “Separation Date”), and that by virtue of your retirement, you resigned your employment in all capacities with the Company. 
 2. Final Compensation and Benefits. You will receive your regular wages and employment-related benefits through August 31, 2012, all of which will be paid in accordance with the Company’s
regular payroll schedule and benefit policies and practices. Your payment for employment-related benefits through August 31, 2012 will include payment for fourteen (14) accrued but unused vacation days, in the amount of Twenty-Two Thousand
Eight Hundred Sixty Dollars and Forty-Five Cents ($22,860.45). You will receive such wages and benefits even if you decide not to sign this Agreement. 
 3. Termination of Compensation and Benefits. Except as specifically described in Paragraph 5 below, all of your compensation and employment-related benefits will end on August 31, 2012.
Notwithstanding, pursuant to Section 10(a) of the Financial Institutions, Inc. 1999 Management Stock Incentive Plan, all of your outstanding, unexercised stock options are immediately vested as of the “Effective Date” of this
Agreement as defined in Paragraph 26, below and may be exercised at any time prior to the earlier of: (a) the expiration date of each such stock option; or (b) 13 months from the “Effective Date” of this Agreement as defined in
Paragraph 26, below. You will receive additional information regarding your rights to insurance continuation (at your expense) and your retirement benefits. To the extent that you have such rights, nothing in this Agreement will impair them. By
signing this Agreement, you agree that upon receipt of the amounts described in Paragraph 2, you have received all wages, benefits and other compensation due to you. 
 4. Company Property. 
 a) By no later than August 31, 2012, you shall
return to the Company all documents (and all copies thereof) and other property belonging to the Company that you have in your possession or control, with the exception of any property that the Company authorizes you in writing to retain. The
documents and property to be returned by you include, but are not limited to, all files, correspondence, e-mail, memoranda, notes, notebooks, drawings, records, plans, forecasts, reports, studies, analyses, compilations of data, proposals,
agreements, financial information, research and development information, customer information, marketing information, operational and personnel information, specifications, code, software, databases, computer-recorded information, tangible property
and equipment (including, but not limited to, facsimile machines, mobile telephones and servers), credit cards, entry cards, identification badges and keys; and any materials of any kind which contain or embody any proprietary or confidential
information of the Company (and all reproductions thereof in whole or in part). You agree to make a diligent search to locate any such documents, property and information.

 b) If you have used any computer, server, or e-mail system owned by you or a member of your
immediately family to receive, store, review, prepare or transmit any Company confidential or proprietary data, materials or information, then on or before August 31, 2012, you shall provide the Company with a computer-useable copy of all such
information and then permanently delete and expunge such confidential or proprietary information from those systems. You agree to provide a signed and notarized certification that you have complied with this provision on or before September 4,
2012, or in the alternative, provide a signed and notarized certification on or before September 4, 2012 that there was no Company confidential or proprietary data, material or information on any computer, server or e-mail system owned by you
or a member of your immediately family, and therefore that no copying or deletion was necessary. 
 c) You and the Company will
arrange, at a time mutually convenient, for you to remove personal items from your office and to have a Company representative download personal documents/files from the computer in your office and provide those documents/files to you on a CD, thumb
drive or other mutually acceptable storage media. At this time, you will also identify items of Humphrey family memorabilia that you claim were loaned to the Company so a determination can be made which items to return to you. 

d) Although you will return the Company cell phone no later than September 28, 2012, the Company will allow you to retain the cell
phone number for your personal use, at your expense, and both parties agree to execute any documents necessary to accomplish the transfer of that cell phone number. You will bear the expense and pay any fees associated with that transfer.

 5. Separation Benefits. In consideration of your acceptance of the terms of this Agreement, including but not limited
to the obligations imposed by Paragraphs 9 through 14 of this Agreement and the Release of All Claims contained in Paragraph 6 of this Agreement, the Company will provide you with the separation benefits described in this Paragraph 5. 

a) You will receive a separation pay benefit in the total amount of $1,000,000.00 less required payroll deductions and withholdings.
Subject to the requirements of Paragraph 27, this separation pay benefit will be paid in equal monthly installments for a period of twenty four (24) months in accordance with the Company’s regular payroll schedule and practice. These
installments will begin on the Company’s first regular pay period after October 1, 2012 provided you have executed this Agreement and the revocation period set forth in Paragraph 26 has expired with no revocation. 

b) Within 30 days after the “Effective Date” of this Agreement as defined in Paragraph 26 below, you will receive a lump-sum
cash payment equal to $349,950, less required payroll deductions and withholdings. 

  
 2 

 c) The Board of Directors of the Company has determined that pursuant to the discretion
provided under Section 9(b)(1) of the Financial Institutions, Inc. 2009 Management Stock Incentive Plan (the “2009 Plan”), the 4,525 shares of restricted stock granted to you on February 15, 2012 will become 100% vested as of the
“Effective Date” of this Agreement as defined in Paragraph 26, below. 
 d) The Board of Directors of the Company has
determined that pursuant to the discretion provided under Section 9(b)(2) of the 2009 Plan, as soon as performance can be determined for the 2012 performance year (which shall be determined as soon as practicable following December 31,
2012, but in no event later than December 31, 2013), a pro-rated portion of the 7,721 shares of restricted stock granted to you on February 17, 2012 will become vested. 

e) You will be entitled to the compensation and benefits set forth in the Supplemental Executive Retirement Agreement attached to this
Agreement as Exhibit A. 
 f) The Company will transfer title of the 2011 BMW 550xi (valued at $42,800) to you, without further
consideration, and you will be responsible for all taxes and registration fees due upon such transfer. 
 The Company makes no
representations to you regarding the taxability and/or tax implications of this Agreement. You are solely responsible for any tax consequences associated with the payments made pursuant to this Agreement, regardless of whether the Company should
have contributed and withheld taxes from the amounts paid (including Social Security and Medicare). You agree to defend, indemnify, reimburse and hold the Company harmless for any and all taxes, contributions, withholdings, fees, assessments,
interest, costs, penalties and other charges that may be imposed on the Company by the Internal Revenue Service, the New York State Tax Department or any other federal, state or local taxing authority by reason of the payments above, the absence of
withholdings and deductions made from certain payments above and/or your non-payment or late payment of taxes due, and you alone assume all liability for all such amounts. 
 You agree that you are not entitled to any other compensation or benefits of any kind or description from the Company, its successors, assigns, affiliates or related companies, or from or under any
employee benefit plan or fringe benefit plan sponsored by the Company, its successors, assigns, affiliates or related companies, other than as described in this Agreement, including, but not limited to as described in Paragraph 3, and except for
vested benefits under the any qualified retirement plans in which you participate. 
 You acknowledge and agree that, in the
absence of this Agreement, you are not entitled to any of the separation benefits set forth in this Paragraph 5. 

  
 3 

 6. RELEASE OF ALL CLAIMS 

a) By signing this Agreement you agree that you are releasing and waiving your right to bring any legal claim of any nature against the
Company. The claims you are giving up include, but are not limited to, claims related, directly or indirectly, to ownership interests in the Company and your employment relationship with the Company, including your separation from employment. This
Agreement is intended to be interpreted in the broadest possible manner to include all actual or potential legal claims you may have against the Company, except as expressly provided otherwise in Paragraph 6(d). 

b) Specifically, you agree that you are fully and forever giving up all of your legal rights and claims against the Company, whether or
not presently known to you, that are based on events occurring before you sign this Agreement. You agree that the legal rights and claims you are waiving include all rights and claims under, as amended, Title VII of the Civil Rights Act of 1964, the
Age Discrimination in Employment Act of 1967 (the “ADEA”), the Older Workers Benefit Protection Act of 1990 (the “OWBPA”), the Rehabilitation Act of 1973, the Civil Rights Acts of 1866 and 1991, the Americans With Disabilities
Act of 1990 (the “ADA”), the Genetic Information Nondiscrimination Act of 2008 (“GINA”), the Equal Pay Act of 1963, the New York Human Rights Law and any similar federal, state or local statute, regulation, order or common law.
You specifically agree that you are releasing claims of discrimination based upon age, race, color, sex, sexual orientation or preference, marital status, religion, national origin, citizenship, veteran status, disability, genetic predisposition or
carrier status and other legally protected categories. 
 c) You also agree that the legal rights and claims you are giving up
include your rights under, as amended, the Family and Medical Leave Act of 1993 (“FMLA”), the Employee Retirement Income Security Act of 1974 (“ERISA”), the federal Worker Adjustment and Retraining Notification Act of 1989
(“WARN”), the New York Worker Adjustment and Retraining Notification Act (“NY WARN”), the New York Labor Law (except unemployment insurance and minimum wage claims), the New York Business Corporation Law and any similar federal,
state or local statute, regulation, order or common law. You agree that the legal rights and claims you are giving up include all common law rights and claims, such as a breach of express or implied contract, tort (whether negligent or intentional),
wrongful discharge, constructive discharge, infliction of emotional distress, defamation, promissory estoppel, and any claim for fraud, omission or misrepresentation, breach of express or implied duties, or violation of public policy or policies,
practices, or procedures of the Company. You also agree that you are giving up and forever releasing any right you may have to attorneys’ fees for any of the rights and claims described in this Paragraph 6. 

d) The claims you are giving up and releasing do not include your vested rights, if any, under any qualified retirement plan in
which you participate, and your COBRA, unemployment insurance and workers’ compensation rights, if any. Nothing in this Agreement shall be construed to constitute a waiver of: (i) any claims you may have against the Company that arise from
events that occur after the date that you sign this Agreement; (ii) your right to file an administrative charge with any governmental agency alleging employment discrimination or challenging the validity of this release of all
claims; (iii) your right to participate in any administrative or court investigation, hearing or proceeding; or (iv) any other right that you cannot waive as a matter of law. You agree, however, to waive and release any right to receive
any individual remedy or to recover any individual monetary or non-monetary damages as a result of any administrative charge, complaint or lawsuit filed by you or anyone on your behalf. In addition, the release of all claims set forth in this
Agreement does not affect your rights as expressly created by this Agreement, and does not limit your ability to enforce this Agreement or to challenge the enforceability of this Agreement. 

  
 4 

 e) You agree that the release of all claims described in this Paragraph 6 applies not only
to the Company, but also to the Company’s predecessors, successors and their past, current and future parents, subsidiaries, related entities, and all of their members, shareholders, officers, directors, agents, attorneys, employees, and
assigns. 
 7. No Pending Action. You represent that, as of the date that you sign this Agreement, you have not filed any
charge, complaint or action in any forum against the Company. This Agreement may be used as a complete defense in the future if you bring a lawsuit based on any claim that you have released, and if the Company prevails in such lawsuit, you will pay
for all costs incurred by the Company, including reasonable attorney’s fees. 
 8. Future Cooperation. You agree
that upon reasonable request of the Company, you will do whatever is necessary to assure an orderly transition of your work and responsibilities and to reasonably cooperate with any requests by the Company for information about the business of the
Company or your involvement and participation therein. You further agree that you will fully cooperate with any investigation, audit or review by the Company or any federal, state or local regulatory, quasi-regulatory or self-governing authority
(including, without limitation, the Securities and Exchange Commission) as any such investigation, audit or review relates to events or incidents that occurred during your employment with the Company, as well as with litigation or other proceedings
involving matters that occurred during your employment by the Company. Such cooperation shall include, but not be limited to (taking into account your personal and professional obligations, including those to any new employer or entity to which you
provide services), being available to meet and speak with officers or employees of the Company and/or the Company’s counsel at reasonable times and locations, executing accurate and truthful documents, giving accurate and truthful testimony,
and taking such other actions as may reasonably be requested by the Company and/or the Company’s counsel to effectuate the foregoing. You shall be entitled to reimbursement, upon receipt by the Company of suitable documentation, for reasonable
and necessary travel and other expenses that you may incur at the specific request of the Company and as approved by the Company in advance and in accordance with its policies and procedures established from time to time. You may also receive
reasonable compensation from the Company for time expended while assisting the Company with respect to investigations, audits, reviews, litigations or other proceedings. However, you and the Company agree that no compensation shall be paid for the
content or substance of any testimony. 
 9. Confidential Information. You shall keep secret and retain the confidential
nature of all Confidential Information (as defined in Paragraph 9(b) below) of or belonging to the Company and take such other precautions with respect thereto as the Company, in its sole discretion, may reasonably request. 

  
 5 

 a) You shall not at any time, whether before or after the termination of your employment,
use, copy, disclose or make available any Confidential Information to any individual, corporation, partnership, trust, governmental body or other entity; except that you may use, copy or disclose any Confidential Information (i) to the extent
it becomes publicly available through no fault on your part, and (ii) to the extent you are required to do so pursuant to applicable law or pursuant to a final order of a court or arbitrator having jurisdiction thereof; provided, however, that
prior to such disclosure you shall promptly notify the Company in writing of any such order or request to disclose and shall cooperate fully with the Company in protecting against any such disclosure by narrowing the scope of such disclosure and/or
obtaining a protective order with respect to the permitted use of the Confidential Information. 
 b) For purposes of this
Agreement, “Confidential Information” shall mean all information pertaining to the business and operations of the Company that is not generally available to the public and the Company desires to keep confidential, including, but not
limited to, information relating to the Company’s products, services, suppliers, business partners, operations, research, trade secrets, intellectual property, finances and all documents and other tangible items relating to or containing any
such information. You acknowledge that the Confidential Information is vital, sensitive, confidential and proprietary to the Company. 
 10. Non-Competition. You agree and acknowledge as follows: 
 a) You agree
that the Company is engaged in a highly competitive business, and the success of the Company in the marketplace depends upon its good will and reputation. You agree that reasonable limits on your ability to engage in activities competitive with the
Company are warranted to protect the Company’s substantial investment in developing and maintaining its status in the marketplace, reputation and good will. 
 b) For a period of two (2) years following the Separation Date, you shall not engage, anywhere within New York State or in any area outside of New York State in which the Company conducts business,
whether directly or indirectly, or through any employee, agent, attorney or any other person or party acting on your behalf, as principal, owner, officer, director, agent, employee, consultant or partner, in the management of a bank holding company,
commercial bank, savings bank, credit union or any other financial services provider that competes with the Company or their products or programs (“Restricted Activities”), provided that the foregoing shall neither restrict you from
engaging in any Restricted Activities which the Company directs you to undertake or which the Company otherwise expressly authorizes in writing, nor shall the foregoing restrict you from owning less than 5% of the outstanding capital stock of any
company that engages in Restricted Activities, provided that you are not otherwise involved with such company as an officer, director, agent, employee or consultant. You agree that this Paragraph, the scope of the territory covered, the actions
restricted thereby, and the duration of such covenant are reasonable and necessary to protect the legitimate business interests of the Company. For purposes of this Agreement, “Restricted Activities” in any area outside of New York State
in which the Company conducts business shall be limited to lines of business, products, services or programs that the Company offers, sells or provides outside of New York State. 

  
 6 

 11. Non-Solicitation. You agree that for a period of two (2) years following the
Separation Date: 
 a) You will not, directly or indirectly, canvass, solicit or accept, in any manner, the business of any
person (i) who or which is or was a client, customer, supplier or other business contact of the Company and/or (ii) with whom or which you acquired a relationship during your employment with the Company. In making the foregoing covenant,
you acknowledge that the Company has a legitimate interest in preventing you from exploiting or appropriating the Company’s goodwill as it relates to the Company’s clients, customers, suppliers, and other business contacts, which goodwill
has been created and maintained at the Company’s expense. 
 b) You will not, directly or indirectly (i) induce any
party who or which is a customer, supplier, vendor or other business contact of the Company to patronize any business directly or indirectly in competition with the Company; or (ii) request or advise any party who or which is a customer,
supplier, vendor or other business contact of the Company, or its or their successors, to withdraw, curtail, cancel or modify any such customer’s or vendor’s business with such entity. 

c) You will not (i) employ, or knowingly permit any company or business directly or indirectly controlled by you, to employ, any
person who was employed by the Company or its affiliates at or within one year prior to termination of your employment or (ii) in any manner to seek to induce any such person to leave his or her employment with the Company. 

You acknowledge that the limitations set forth in this Paragraph are reasonable. 

12. Intellectual Property. You agree that all copyrights, trademarks, trade names, servicemarks, and other intangible or
intellectual property rights that you invented, conceived, developed or enhanced during your employment that relate to the business or operations of the Company or that result from any work you performed for the Company are the sole property of the
Company, as the case may be, and you hereby waive any right or interest that you may otherwise have in respect thereof. Upon the reasonable request of the Company, you shall execute, acknowledge and deliver any instrument or document reasonably
necessary or appropriate to give effect to this Paragraph and, at the Company’s cost, do all other acts and things reasonably necessary to enable the Company, as the case may be, to exploit the same or to obtain patents or similar protection
with respect thereto. 
 13. No Derogatory Statements. You agree that you will not directly or indirectly make, or cause
to be made, any written or oral statement or other communication that is derogatory or disparaging to the Company or the Company’s predecessors, successors or their past, current or future parents, subsidiaries, related entities, or any of
their members, shareholders, officers, directors, agents, attorneys, employees, or assigns. The inclusion of specific individuals in this provision (including, but not limited to, shareholders, officers, directors, agents, attorneys and employees)
to protect them from derogatory or disparaging remarks is a material term of this Agreement and intended to make such individuals third-party beneficiaries of this particular provision of the Agreement, with all applicable rights to enforce its
terms in the event of a violation. 

  
 7 

 The Company agrees that the members of its Board of Directors and its Senior Management
(specifically, Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Director of Human Resources, Chief Information Officer and/or President and Chief of Community Banking) will not directly or indirectly make, or cause to be
made, any written or oral statement or other communication that is derogatory or disparaging to you. Communications between the individuals listed above in their official capacities shall not violate this provision. 

Nothing in this Agreement is intended to or shall prevent or limit you or members of the Company’s Board of Directors and Senior
Management (as defined above) from providing testimony in response to a valid subpoena, court order, regulatory request or other judicial, administrative or legal process or otherwise as required by law. Both parties will notify the other in writing
as promptly as practicable after receiving any request for testimony or information in response to a subpoena, court order, regulatory request or other judicial, administrative or legal process or otherwise as required by law, regarding the
anticipated testimony or information to be provided and at least fourteen (14) days prior to providing such testimony or information (or, if such notice is not possible under the circumstances, with as much prior notice as is possible).

 14. Confidentiality of Agreement. You agree that you will keep the terms of this Agreement, the benefit being paid
under it and the fact of its payment, confidential and that you shall not disclose such information, except that you may disclose this information to your spouse, attorney, accountant or other professional advisor to whom you must make the
disclosure in order for them to render professional services to you. You will instruct them, however, to maintain the confidentiality of this information just as you must maintain such confidentiality. 

15. Interim Obligations. You understand and agree that the obligations contained in Paragraphs 9 to 14 above are material
provisions of this Agreement, for which good and sufficient consideration is provided. However, you also acknowledge and agree that those provisions could be undermined and/or rendered ineffective if you take actions that would be violations of
Paragraphs 9 to 14 of this Agreement after the Effective Date of this Agreement, between the date you were presented with a draft of this Agreement (August 24, 2012) and the Effective Date of this Agreement (the “Interim Period”).
Accordingly, as a material inducement for the Company to enter this Agreement, you represent and warrant that, during the Interim Period, you did not and will not take any actions, directly or indirectly, that would be violations of this Agreement
if they occurred after the Effective Date of this Agreement. This includes, but is not limited to, disclosing confidential information, engaging in Restricted Activities, soliciting customers or employees of the Company, making derogatory statements
concerning the Company or any of the entities/individuals listed in Paragraph 13, and/or disclosing the terms of this Agreement or the amounts or benefits to be paid under this Agreement (other than as allowed in Paragraph 14). 

  
 8 

 16. Remedies. You acknowledge that the Company will suffer material, irreparable
harm as a result of any breach the covenants contained in Paragraphs 9 through 14 of this Agreement for which an adequate monetary remedy does not exist and a remedy at law may prove to be inadequate. Accordingly, in the event of an actual or
threatened breach by you of any provision of this Agreement, the Company shall, in addition to any other remedies permitted by law, be entitled to obtain remedies in equity, including, without limitation, specific performance, injunctive relief, a
temporary restraining order, and/or permanent injunction in any court of competent jurisdiction, to prevent or otherwise restrain a breach of Paragraphs 9 through 14 of this Agreement, without the necessity of proving damages, posting bond or other
security, and to recover any and all costs and expenses, including reasonable attorneys’ fees, incurred in enforcing this Agreement against you, and you hereby consent to the entry of such relief and agree not to contest such entry. You hereby
agree and consent that such injunctive relief may be sought in any state or federal court located in Monroe County, New York. Such relief shall be in addition to and not in substitution of any other remedies available to the Company. The existence
of any claim or cause of action by you against the Company, whether predicated on this Agreement, or otherwise, shall not constitute a defense to the enforcement by the Company of said covenants. You agree that you shall not defend on the basis that
there is an adequate remedy at law. You further understand and agree that for the purpose of fashioning an appropriate injunctive remedy, the time periods of the restrictions set forth in Paragraphs 10 and 11 above shall be extended by any time
period that you are found to be in breach of said covenants. In the event that a court of competent jurisdiction determines that the restrictions contained in this Agreement are unenforceable in whole or in part for any reason, including, without
limitation, the duration, scope and remedies set forth above, then same shall not be void, but rather shall be enforced to the extent that same is deemed to be enforceable by said court, as if originally executed in that form by the parties hereto.
In the event that a court of competent jurisdiction determines that you have breached any of the covenants contained this Agreement, you agree that (i) the Company shall have no further obligation to make any further payments to you under
Paragraph 5 of this Agreement and you will be liable to the Company for any payments already made under Paragraph 5(a) or 5(b) above. In the event a court of competent jurisdiction determines that the Company has breached this Agreement, in addition
to any other remedies available to you in law or in equity, you shall be entitled to recover any and all costs and expenses, including reasonable attorneys’ fees, incurred in enforcing this Agreement against the Company. 

17. Future Employment. You agree that neither you, nor anyone acting on your behalf, will apply for or seek employment with the
Company in the future. You agree that in the event you apply for or seek employment with the Company in the future, the Company is under no obligation to consider that application and may deny said application based on this Agreement. 

  
 9 

 18. No Admission of Liability. You agree that neither any payment under this
Agreement, nor any term or condition of it, shall be construed by either you or the Company, at any time, as an admission of liability or wrongdoing by the Company. 
 19. Binding Nature. The rights and benefits of the Company under this Agreement shall be transferable to, or enforceable by or against, the Company’s successors and assigns. You agree that
this Agreement also binds all persons who might assert a legal right or claim on your behalf, such as your heirs, personal representatives and assigns, now and in the future. 
 20. Governing Law/Interpretation. This Agreement shall be governed, construed, and interpreted, and the rights of you and the Company shall be determined in accordance with New York law, without
regard to its conflicts of laws principles, except to the extent that the law of the United States governs any matter set forth herein, in which case such Federal law shall govern. The parties further agree that, whenever possible, each provision of
this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to
the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions, which shall be fully severable and given full force and effect. However, in the event the Release of All Claims in
Paragraph 6 of this Agreement or any portion thereof is determined by any court, arbitrator or agency of competent jurisdiction to be unenforceable for any reason, then the Company shall have the option to rescind this entire Agreement, and
immediately recover from you any payments made pursuant to Paragraph 5 above, or to require that you execute another release that is legal and enforceable, without further consideration, payments or compensation. 

21. Scope of Agreement. You agree that no promise, inducement or other agreement not expressly contained or referred to in this
Agreement has been made conferring any benefit upon you. You also agree that this Agreement contains the entire agreement between the Company and you regarding your termination and supersedes and renders null and void any and all prior or
contemporaneous oral or written understandings, statements, representations or promises, including the Executive Agreement between you and Financial Institutions, Inc. dated July 2, 2012 and attached to this Agreement as Exhibit B. 

22. Legal Proceedings. Disputes arising under this Agreement shall be heard exclusively by the state or federal courts located in
Monroe County, New York. Neither party waives any right it may have to remove such an action to the United States District Court located in Monroe County, New York. 
 23. Voluntary Agreement. You agree that you are voluntarily signing this Agreement, that you have not been pressured into agreeing to its terms and that you have enough information to decide
whether to sign it. If, for any reason, you believe that this Agreement is not entirely voluntary, or if you believe that you do not have enough information, then you should not sign this Agreement. 

24. Attorney Consultation. You are advised to consult with an attorney of your choice before signing this Agreement. By signing
this Agreement, you acknowledge that you have had an opportunity to do so. 

  
 10 

 25. Period to Consider Agreement. You represent and warrant that the Company has
given you a reasonable period of time, of at least twenty-one (21) days, to consider all the terms of this Agreement and for the purpose of consulting with an attorney. A draft of this Agreement was first given to you on August 24, 2012.
If you execute this Agreement prior to the expiration of the 21-day period, you represent and warrant that you have freely and willingly elected to do so. The parties further agree that changes to this agreement after August 24, 2012, whether
material or immaterial, do not restart the 21-day period. The Company reserves the right to withdraw its offer of this Agreement at any time after the expiration of the 21-day review period or if you take actions during the Interim Period that would
be in violation of Paragraphs 9 to 14 of this Agreement if they were taken after the Effective Date of this Agreement. 
 26. Revocation Period; Effective Date. After you have accepted this Agreement, you will have an additional 7 calendar days in which to revoke your acceptance. If you do not revoke your acceptance,
then the 8th day after the date of your signature will be
the “Effective Date” of the Agreement, and you may not thereafter revoke it. To revoke this Agreement, you agree to send written notice to: Jack Benjamin, Chair of the Board of Directors, Five Star Bank, 220 Liberty Street, Warsaw, NY
14569. You acknowledge and agree that if you exercise your right to revoke this Agreement, your resignation of employment will remain valid and effective on the Separation Date and you will not be entitled to the separation benefits in Paragraph 5.

 27. Section 409A. 
 a) The compensation and benefits under this Agreement are intended to comply with or be exempt from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and the Treasury
Regulations and other official guidance promulgated and issued thereunder (collectively, “Section 409A”), and this Agreement will be interpreted in a manner consistent with that intent. 

b) The preceding provisions, however, shall not be construed as a guarantee by the Company of any particular tax effect to you under this
Agreement. The Company shall not be liable to you for any payment made under this Agreement that is determined to result in an additional tax, penalty or interest under Section 409A, nor for reporting in good faith any payment made under this
Agreement as an amount includible in gross income under Section 409A. 
 c) References to “termination of
employment” and similar terms used in this Agreement mean, to the extent necessary to comply with Section 409A, the date that you first incur a “separation from service” within the meaning of Section 409A. 

d) To the extent any reimbursement provided under this Agreement is includable in your income, such reimbursements shall be paid to you
not later than December 31st of the year following the year in which you incur the expense and the amount of reimbursable expenses provided in one year shall not increase or decrease the amount of reimbursable expenses to be provided in a
subsequent year. 

  
 11 

 e) Notwithstanding anything in this Agreement to the contrary, if at the time of your
separation from service with the Company you are a “specified employee” as defined in Section 409A, and any payment payable under this Agreement as a result of such separation from service is required to be delayed by six months
pursuant to Section 409A, then the Company will make such payment on the date that is six months following your separation from service with the Company. The amount of such payment will equal the sum of the payments that would have been paid to
you during the six-month period immediately following your separation from service had the payment commenced as of such date. Each payment under this Agreement shall be designated as a “separate payment” within the meaning of
Section 409A. 
 28. Regulatory Prohibition. Notwithstanding any other provision of this Agreement to the contrary,
any payments made to you pursuant to this Agreement, or otherwise, are subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act (12 U.S.C. 1828(k)) and 12 C.F.R. Part 359. 

29. Dodd-Frank Clawback. Notwithstanding any other provision of this Agreement to the contrary, in order to comply with
Section 10D of the Securities Exchange Act of 1934, as amended, and any regulations promulgated, or national securities exchange listing conditions adopted, with respect thereto (collectively, the “Clawback Requirements”), if the
Company is required to prepare an accounting restatement due to the material noncompliance of the Company with any financial reporting requirements under the securities laws, then you any shall return to the Company, or forfeit if not yet paid, the
amount of any “incentive-based compensation” (as defined under the Clawback Requirements) received during the three-year period preceding the date on which the Company is required to prepare the accounting restatement, based on the
erroneous data, in excess of what would have been paid to you under the accounting restatement as determined by the Company in accordance with the Clawback Requirements and any policy adopted by the Company pursuant to the Clawback Requirements.

 30. Waiver of Jury Trial. EACH PARTY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES ITS RIGHT TO A TRIAL BY JURY
TO THE EXTENT PERMITTED BY LAW IN ANY ACTION OR OTHER LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. THIS WAIVER APPLIES TO ANY ACTION OR OTHER LEGAL PROCEEDING, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. EACH PARTY
ACKNOWLEDGES THAT IT HAS RECEIVED THE ADVICE OF COMPETENT COUNSEL. 
 31. BY SIGNING THIS AGREEMENT, YOU ACKNOWLEDGE THAT
YOU HAVE HAD THE OPPORTUNITY TO REVIEW THIS AGREEMENT CAREFULLY WITH AN ATTORNEY OF YOUR CHOICE, THAT YOU HAVE READ THIS AGREEMENT, THAT YOU UNDERSTAND ITS TERMS, AND THAT YOU VOLUNTARILY AGREE TO THEM. 

  
 12 

 IN WITNESS WHEREOF, the Executive and the Company by its duly authorized agent, have
hereunder executed this Agreement and intend to be legally bound by its provisions. 
  

							
	Peter G. Humphrey	 		 	 Financial Institutions, Inc., on
 behalf of itself and its subsidiaries
 and affiliates

				
	/s/ Peter G. Humphrey	 		 	(By)	 	/s/ John E. Benjamin
				
	Date: August 29, 2012	 		 	Name:	 	John E. Benjamin
				
		 		 	Date	 	August 29, 2012

 STATE OF NEW YORK) 
 COUNTY OF                    ) ss: 
 On the        day of        , 2012, before me, the undersigned, personally appeared Peter G. Humphrey personally
known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in the capacity, and that by his signature on the instrument,
the individual, or the person upon behalf of which the individual acted, executed the instrument. 
  

	
	  
	NOTARY PUBLIC

 STATE OF NEW YORK) 
 COUNTY OF                    ) ss: 
 On the         day of        , 2012, before me, the undersigned, personally appeared
                                        
personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in the capacity, and that by his/her signature on
the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument and he/she is a                    
of Financial Institutions, Inc., described in, and who, on behalf of Financial Institutions, Inc. and its subsidiaries and affiliates, executed the within instrument. 

 

	
	  
	NOTARY PUBLIC

  
 13

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