Document:

ex10_21.htm

    
      

    

    Exhibit
10.21

     

    July 23,
2001

    

    

    Mr. David
E. Raven

    913
Parkview Road

    Moscow,
PA 18444

    

    Dear Mr.
Raven:

    

    NBT
Bancorp Inc. (which, together with its wholly-owned subsidiary, NBT Bank,
National Association, is referred to as the "Company") considers the stability
of its key management group to be essential to the best interests of the Company
and its share­holders.  The Company recognizes that, as is the
case with many publicly-held corporations, the possibility of a change in
control may arise and that the attendant uncertainty may result in the departure
or distraction of key management personnel to the detriment of the Company and
its shareholders.

    

    Accordingly,
the Board of Directors of the Company (the "Board") has determined that
appropriate steps should be taken to encourage members of the Company's key
management group to continue as employees notwithstanding the possibility of a
change in control of the Company.

    

    The Board
also believes it important that, in the event of a proposal for transfer of
control of the Company, you be able to assess the proposal and advise the Board
without being influenced by the uncertainties of your own
situation.

    

    In order
to induce you to remain in the employ of the Company, we entered an agreement,
approved by the Board, dated January 1, 1998 and revised by Board action on July
23, 2001, providing for severance compensation that the Board agreed would be
provided to you in the event your employment with the Company terminated
subsequent to a change in control of the Company ("Agreement").  We
have agreed upon various changes to the Agreement, agreed to by the Board, and
have agreed to amend and restate the Agreement in its entirety as
follows:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.         
   Agreement to Provide
Services; Right to Terminate.

    

    (a)           Termination Prior to Certain
Offers.  Except as otherwise provided in paragraph (b) below,
or in any written employment agreement between you and the Company, the Company
or you may terminate your employment at any time.  If, and only if,
such termination occurs after a "change in control of the Company" (as defined
in section 6), the provisions of this Agreement regarding the payment of
severance compensation and benefits shall apply.

    

    (b)           Termination Subsequent to
Certain Offers.  In the event a tender offer or exchange offer
is made by a "person" (as defined in section 6) for more than 30 percent of the
combined voting power of the Company's outstanding securities ordinarily having
the right to vote at elections of directors ("Voting Securities"), including
shares of common stock, no par value, of the Company (the "Company Shares"), you
agree that you will not leave the employ of the Company (other than as a result
of Disabil­ity as such term is defined in section 6) and will render
services to the Company in the capacity in which you then serve until such
tender offer or exchange offer has been abandoned or terminated or a change in
control of the Company has occurred as a result of such tender offer or exchange
offer.  If, during the period you are obligated to continue in the
employ of the Company pursuant to this section 1(b), the Company reduces your
compensation, terminates your employment without Cause, or you provide written
notice of your decision to terminate your employment for Good Reason, your
obligations under this section 1(b) shall thereupon terminate and you will be
entitled to payments provided under Section 3(b).

    

    2.         
   Term
of Agreement.  This Agreement shall commence on the date hereof
and shall continue in effect until December 31, 2003; provided, however, that
commencing December 31, 2001 and each December 31 thereafter, the remaining term
of this Agreement shall auto­mati­cally be extended for one additional
year (to a total of three years) unless at least 90 days prior to such
anniversary, ­the Company or you shall have given notice that this
Agree­ment shall not be ex­tended; and provided, however, that if a
change in control of the Company shall occur while this Agree­ment is in
effect, this Agree­ment shall auto­mati­cally be extended for 24
months from the date the change in control of the Company
occurs.  This Agreement shall terminate if you or the Compa­ny
termi­nates your employ­ment prior to a change in control of the Company
but without preju­dice to any remedy the Company may have for breach of your
obligations, if any, under section 1(b).

    

    3.        
    Severance Payment and
Benefits If Termination Occurs Following Change in Control for Disability,
Without Cause, With Good Reason or Without Good Reason within 12 Months of the
Change.  If, (I) within 24 months from the date of occurrence
of any event constituting a change in control of the Company (it being
recognized that more than one such event may occur in which case the 24-month
period shall run from the date of occurrence of each such event), your
employment with the Company is terminated (i) by the Company for Disability,
(ii) by the Company without Cause, or (iii) by you with Good Reason (as defined
in section 6), or (II) within 12 months from the date of occurrence of any event
constituting a change in control of the Company (it being recognized that more
than one such event may occur in which case the 12-month period shall run from
the date of occurrence of each such event) you terminate your employment either
with or without Good Reason, you shall be entitled to a sever­ance payment
and other benefits as follows:

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (a)           Disability.  If
your employment with the Company is terminated for Disability, your benefits
shall thereafter be determined in accordance with the Company's long-term
disability income insurance plan.  If the Company's long-term
disability income insurance plan is modified or terminated following a change in
control, the Company shall substitute such a plan with benefits applicable to
you substantially similar to those provided by such plan prior to its
modification or termination.  During any period that you fail to
perform your duties hereunder as a result of incapacity due to physical or
mental illness, you shall continue to receive your full base salary at the rate
then in effect until your employment is termi­nated by the Company for
Disability.

    

    (b)           Termination Without Cause or
With Good Reason or Within 12 Months of Change in Control.  If
your employment with the Company is terminated without Cause by the Company or
with Good Reason by you, or by you within 12 months of a change in control of
the Company without Good Reason, then the Company shall pay to you, upon demand,
the following amounts (net of applicable payroll taxes):

    

    (i)         
  Your full base salary through the Date of Termination at the rate in
effect on the date the change in control of the Company occurs plus year-to-date
ac­crued vacation.

    

    (ii)           As
severance pay, an amount equal to the product of 2.99 multiplied by the greater
of (A) the sum of your annualized salary for the calendar year in which the
change in control of the Company occurs, the maximum target bonus that could
have been paid to you for such year if all applicable targets and objectives had
been achieved, or if no formal bonus program is in effect, the largest bonus
amount paid to you during any one of the three preceding calendar years, your
income from the exercise of nonqualified options during such year, your
compensation income from any disqualifying disposition during such year of stock
acquired pursuant to the exercise of incentive stock options and other
annualized amounts that constitute taxable income to you from the Company for
such year, without reduction for salary reduction amounts excludible from income
under Section 402(e)(3) or 125 of the Internal Revenue Code of 1986, as amended
(the "Code"), or (B) your average "Compensation" (as defined below) for the
three calendar years preceding the calendar year in which the change in control
of the Company occurs.  As used in this subsection 3(b)(ii) your
"Compensation" shall mean your base salary, bonus, income from the exercise of
nonqualified options, compensation income from any disqualifying disposition of
stock acquired pursuant to the exercise of incentive stock options and any other
amounts that constitute taxable income to you from the Company, without
reduction for salary reduction amounts excludible from income under Section
402(e)(3) or 125 of the Code.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (c)           Related
Benefits.  Unless you die or your employment is terminated by
the Company for Cause or Disability, or by you other than for Good Reason and
not within 12 months after a change in control of the Company, the Company shall
maintain in full force and effect, for your continued benefit and, if
applicable, for the continued benefit of your spouse and family, for three years
after the Date of Termina­tion, or such longer period as may be provided by
the terms of the appropriate plan, all noncash employee benefit plans, programs,
or arrangements (including, without limitation, pension and retirement plans and
arrangements, stock option plans, life insurance and health and accident plans
and arrange­ments, medical insurance plans, disability plans, and vacation
plans) in which you were entitled to participate immediately prior to the Date
of Termination, as in effect at the Date of Termination, or, if more favorable
to you and, if applicable, your spouse and family, as in effect generally at any
time thereafter with respect to executive employees of the Company or any
successor; provided that your continued participation is possible after
Termination under the general terms and provisions of such plans, programs, and
arrangements; provided, however, that if you become eligible to participate in a
benefit plan, program, or arrangement of another employer which confers
substantially similar benefits upon you, you shall cease to receive benefits
under this subsection in respect of such plan, program, or
arrange­ment.  In the event that your participation in any such
plan, program, or arrangement is not possible after Termination under the
general terms and provisions of such plans, programs, and arrangements, the
Company shall arrange to provide you with benefits substantially similar to
those which you are entitled to receive under such plans, programs and
arrangements or alternatively, pay an amount equal to the reasonable value of
such substantially similar benefits.  If, after termination of
employment following a change in control of the Company, you elect or, if
applicable, your spouse or family elects, COBRA continuation coverage, the
Company will pay the applicable COBRA premium for the maximum period during
which such coverage is available.  If termination follows a change in
control of the Company specified in Section 6(b)(iii), then you and, if
applicable, your spouse and family may elect in lieu of COBRA continuation
coverage to have the acquiring entity obtain an individual or group health
insurance coverage and the acquiring entity will pay premiums thereunder for the
maximum period during which you and, if applicable, your spouse and family could
have elected to receive COBRA continuation coverage.

    

    (d)           Establishment of
Trust.  Within five days following conclusion of a change in
control of the Company, the Company shall establish a trust that conforms in all
regards with the model trust published in Revenue Procedure 92-64 and deposit an
amount sufficient to satisfy all liabilities of the Company under Section 3(b)
of this Agreement.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e)           Automatic
Extension.  Notwithstanding the prior provisions of this
Section, if an individual is elected to the Board of Directors who has not been
nominated by the Board of Directors as constituted prior to his election, then
the term of this Agreement will automatically be extended until two years from
the date on which such individual was elected if such extended termination date
is later than the normal termination date of this Agreement, otherwise, the
termination date of this Agreement will be as provided above.  This
extension will take effect only upon the first instance of an individual being
elected to the Board of Directors without having been nominated by the original
Board.

    

    (f)           Alternative to Lump Sum
Payout.  The amount described in this subsection will be paid
to you in a single lump-sum unless, at least 30 days before the conclusion of a
change in control of the Company, you elect in writing to receive the severance
pay in 3 equal annual payments with the first payment to be made within 30 days
of demand and the subsequent payments to be made by January 31st of each year
subsequent to the year in which the first payment is made, provided that under
no circumstances will two payments be made during a single tax year of the
recipient.

    

    4.      
      Payment If Termination
Occurs Following Change in Control, Because of Death, For Cause, or Without Good
Reason and not within 12 Months of the Change in Control.  If
your employment shall be terminated following any event constitut­ing a
change in control of the Company because of your death, or by the Company for
Cause, or by you other than for Good Reason and not within 12 months after a
change in control of the Company, the Company shall pay you your full base
salary through the Date of Termination at the rate in effect on the date the
change in control of the Company occurs plus year-to-date accrued
vacation.  The Company shall have no further obligations to you under
this Agreement.

    

    5.      
      No
Mitigation.  You shall not be required to mitigate the amount
of any payment provided for in this Agreement by seeking other employment or
otherwise, nor, except as express­ly set forth herein, shall the amount of
any payment provided for in this Agreement be reduced by any compensation earned
by you as the result of employment by another employer after the Date of
Termination, or otherwise.

    

    6.        
    Definitions of Certain
Terms.  For the purpose of this Agreement, the terms defined in
this section 6 shall have the meanings assigned to them herein.

    

    (a)           Cause.  Termination
of your employment by the Company for "Cause" shall mean termination because,
and only because, you committed an act of fraud, embezzle­ment, or theft
constituting a felony or an act intention­ally against the interests of the
Company which causes the Company material injury.  Notwithstanding the
foregoing, you shall not be deemed to have been terminat­ed for Cause unless
and until there shall have been delivered to you a copy of a resolution duly
adopted by the affirmative vote of not less than three-quarters of the entire
membership of the Board at a meeting of the Board called and held for the
purpose (after reasonable notice to you and an opportunity for you, together
with your counsel, to be heard before the Board), finding that in the good faith
opinion of the Board you were guilty of conduct constituting Cause as defined
above and specify­ing the particulars thereof in detail.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (b)           Change in Control of the
Company.  A "change in control of the Company" shall
mean:

    

    (i)       
    A change in control of a nature that would be required
to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A as in
effect on the date hereof pursuant to the Securities Exchange Act of 1934 (the
"Exchange Act"); provided that, without limitation, such a change in control
shall be deemed to have occurred at such time as any Person hereafter becomes
the "Beneficial Owner" (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of 30 percent or more of the combined voting power of
the Company's Voting Securi­ties; or

    

    (ii)           During
any period of two consecutive years, individuals who at the beginning of such
period constitute the Board cease for any reason to con­stitute at least a
majority thereof unless the election, or the nomination for election by the
Company's shareholders, of each new director was approved by a vote of at least
two-thirds of the directors then still in office who were directors at the
beginning of the period; or

    (iii)           There
shall be consummated (x) any consoli­dation or merger of the Company in
which the Compa­ny is not the continuing or surviving corporation or
pursuant to which Voting Securities would be converted into cash, securities, or
other property, other than a merger of the Company in which the holders of
Voting Securities immediately prior to the merger have the same
propor­tionate ownership of common stock of the surviving corporation
immedi­ately after the merger, or (y) any sale, lease, exchange, or other
transfer (in one transaction or a series of related transac­tions) of all,
or sub­stantially all of the assets of the Company, pro­vided that any
such consolidation, merger, sale, lease, exchange or other transfer consummated
at the insistence of an appropriate banking regulatory agency shall not
constitute a change in control of the Company; or

    

    (iv)          Approval
by the shareholders of the Company of any plan or proposal for the liquidation
or dissolution of the Company.

    

    (c)           Date of
Termination.  "Date of Termination" shall mean (i) if your
employment is terminated by the Company for Disability, 30 days after Notice of
Termination is given (provided that you shall not have returned to the
performance of your duties on a full-time basis during such 30-day period), and
(ii) if your employment is terminated for any other reason, the date on which a
Notice of Termination is given; provided that if within 30 days after any Notice
of Termination is given the party receiving such Notice of Termination notifies
the other party that a dispute exists concerning the termination, the Date of
Termination shall be the date on which the dispute is finally determined, either
by mutual written agreement of the parties or by a final judg­ment, order,
or decree of a court of competent jurisdiction (the time for appeal therefrom
having expired and no appeal having been perfect­ed).  The term of
this Agreement shall be extended until the Date of Termination.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (d)           Disability.  Termination
of your employment by the Company for "Disability" shall mean termination
because of your absence from your duties with the Company on a full-time basis
for 180 consecutive days as a result of your incapacity due to physical or
mental illness and your failure to return to the performance of your duties on a
full-time basis during the 30-day period after Notice of Termination is
given.

    

    (e)           Good
Reason.  Termination by you of your employment for "Good
Reason" shall mean termination based on any of the following:

    

    (i)     
      A change in your status or position(s) with
the Company, which in your reasonable judgment, does not represent a promotion
from your status or position(s) as in effect immediately prior to the change in
control of the Company, or a change in your duties or responsibili­ties
which, in your reasonable judgment, is inconsis­tent with such status or
position(s), or any removal of you from, or any failure to reappoint or reelect
you to, such position(s), except in connection with the termination of your
employment for Cause or Disability or as a result of your death or by you other
than for Good Reason.

    

    (ii)           A
reduction by the Company in your base salary as in effect immediately prior to
the change in control of the Company.

    

    (iii)          The
failure by the Company to continue in effect any Plan (as hereinafter defined)
in which you are participat­ing at the time of the change in control of the
Company (or Plans providing you with at least substantial­ly similar
benefits) other than as a result of the normal expiration of any such Plan in
accordance with its terms as in effect at the time of the change in control of
the Company, or the taking of any action, or the failure to act, by the Company
which would adversely affect your continued participation in any of such Plans
on at least as favorable a basis to you as is the case on the date of the change
in control of the Company or which would materially reduce your benefits in the
future under any of such Plans or deprive you of any material benefit enjoyed by
you at the time of the change in control of the Company.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (iv)          The
failure by the Company to provide and credit you with the number of paid
vacation days to which you are then entitled in accordance with the Company's
normal vacation policy as in effect immediately prior to the change in control
of the Company.

    

    (v)           The
Company's requiring you to be based anywhere other than where your office is
located immediately prior to the change in control of the Company except for
required travel on the Company's business to an extent substantially consistent
with the business travel obligations which you undertook on behalf of the
Company prior to the change in control of the Company.

    

    (vi)          The
failure by the Company to obtain from any successor the assent to this Agreement
contemplated by section 8 hereof.

    

    (vii)         Any
purported termination by the Company of your employment which is not effected
pursuant to a Notice of Termina­tion satisfying the requirements of this
Agree­ment; and for purposes of this Agreement, no such purported
termination shall be effective.

    

    (viii)    
   Any refusal by the Company to continue to allow you to attend
to matters or engage in activities not directly related to the business of the
Company which, prior to the change in control of the Company, you were permitted
by the Board to attend to or engage in.

    

    For
purposes of this subsection, "Plan" shall mean any compensation plan such as an
incentive or stock option plan or any employee benefit plan such as a thrift,
pension, profit sharing, medical, disability, accident, life insurance plan, or
a relocation plan or policy or any other plan, program, or policy of the Company
intended to benefit employees.

     

    (f)     
      Notice of
Termination.  A "Notice of Termination" of your employment
given by the Company shall mean a written notice given to you of the termination
of your employment which shall indicate the specific termination provision in
this Agreement relied upon, and shall set forth in reasonable detail the facts
and circumstanc­es claimed to provide a basis for termination of your
employment under the provision so indicat­ed.

    

    (g)           Person.  The
term "Person" shall mean and include any individual, corporation, partnership,
group, association, or other "person," as such term is used in section 14(d) of
the Exchange Act, other than the Company or any employee benefit plan(s)
sponsored by the Company.

    

    7.   
         Notice.  For
the purposes of this Agreement, notices and all other communications provided
for in the Agreement shall be in writing and shall be deemed to have been duly
given when delivered or mailed by United States certified or registered mail,
return receipt requested, postage prepaid, addressed to the respective addresses
set forth on the first page of this Agreement, provided that all notices to the
Company shall be directed to the attention of the Chief Executive Officer of the
Company with a copy to the Secretary of the Company, or to such other address as
either party may have furnished to the other in writing in accordance herewith,
except that notices of change of address shall be effective only upon
receipt.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    8.      
      Successors; Binding
Agreement.

    

    (a)           This
Agreement shall inure to the benefit of, and be binding upon, any corporate or
other successor or assignee of the Company which shall acquire, directly or
indirectly, by merger, consolida­tion or purchase, or otherwise, all or
substantially all of the business or assets of the Company.  The
Company shall require any such successor, by an agreement in form and substance
satisfactory to you, expressly to assume and agree to perform this Agreement in
the same manner and to the same extent as the Company would be required to
perform if no such succession had taken place.

    

    (b)           This
Agreement shall inure to the benefit of and be enforce­able by your personal
or legal representatives, execu­tors, adminis­trators, successors,
heirs, distributees, devisees and legatees.  If you should die while
any amount would still be payable to you hereunder if you had continued to live,
all such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to your devisee, legatee, or other designee or,
if there is no such designee, to your estate.

    

    9.      
      Increased Severance Payments
Upon Application of Excise Tax.

    

    (a)           Adjustment of
Payment.  In the event any payments or benefits you become
entitled to pursuant to the Agreement or any other payments or benefits received
or to be received by you in connec­tion with a change in control or your
termination of employment (whether pursuant to the terms of any other agreement,
plan, or arrangement, or otherwise, with the Company, any person whose actions
result in a change in control or any person affiliat­ed with the Company or
such person) (collective­ly the "Severance Payments") will be subject to the
tax (the "Excise Tax") imposed by section 4999 of the Internal Revenue Code of
1986, as amended (the "Code"), the Company shall pay you an additional amount
(the "Gross-Up Payment") so that the net amount retained by you, after deduction
of the Excise Tax (but before deduction for any federal, state or local income
tax) on the Severance Payments and after deduction for the aggregate of any
federal, state, or local income tax and Excise Tax upon the Gross-Up Payment,
shall be equal to the Severance Payments.  For purposes of determining
whether any of the Severance Payments will be subject to the Excise Tax and the
amount of such Excise Tax, (i) the entire amount of the Severance Payments shall
be treated as "parachute payments" within the meaning of section 280G(b)(2) of
the Code and as subject to the Excise Tax, unless and to the extent, in the
written opinion of outside tax counsel selected by the Company's independent
accoun­tants and reasonably acceptable to you, such payments (in whole or in
part) are not subject to the Excise Tax; and (ii) the value of any noncash
benefits or any deferred payment or benefit (constituting a part of the
Severance Payments) shall be determined by the Company's independent auditors in
accordance with the principles of sections 280G(d)(3) and (4) of the
Code.  For purposes of determining the amount of the Gross-Up Payment,
you shall be deemed to pay federal income taxes at the highest marginal rate of
the federal income taxation applicable to individuals (without taking into
account surtaxes or loss or reduction of deductions) for the calendar year in
which the Gross-Up Payment is to be made and state and local income taxes at the
highest marginal rates of taxation in the state and locality of your residence
on the date of Termination.  In the event that the amount of Excise
Tax you are required to pay is subsequently determined to be less than the
amount taken into account hereunder, you shall repay to the Company promptly
after the time that the amount of such reduction in Excise Tax is finally
determined the amount of the reduction, together with interest on the amount of
such reduction at the rate of 6 percent per annum from the date of the Gross-Up
Payment, plus, if in the written opinion of outside tax counsel selected by the
Company's independent accountants and reasonably acceptable to you, such payment
(or a portion thereof) was not taxable income to you when reported or is
deductible by you for federal income tax purposes, the net federal income tax
benefit you actually realize as a result of making such payment pursuant to this
sentence.  In the event that the amount of Excise Tax you are required
to pay is subsequently determined to exceed the amount taken into account
hereunder, the Company shall make an additional Gross-Up Payment in the manner
set forth above in respect of such excess (plus any interest, additions to tax,
or penalties payable by you with respect to such excess) promptly after the time
that the amount can be reasonably determined.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (b)           Time of Payment: Estimated
Payment.  The payments provided for in subsection (a) above,
shall be made not later than the fifth business day following the Date of
Termination; provided, however, that if the amounts of such payments cannot be
finally determined on or before such day, the Company shall pay to you on such
day an estimate, as determined in good faith by the Company, of the minimum
amount of such payments, and shall pay the remainder of such payments (together
with interest at the rate of 6 percent per annum) as soon as the amount thereof
can be determined.  In the event that the amount of the estimated
payments exceeds the amount subse­quently determined to have been due, such
excess shall constitute a loan by the Company to you, payable on the fifth day
after demand by the Company (together with interest at the rate of 6 percent per
annum).

    

    10.           Miscellaneous.  No
provision of this Agreement may be modified, waived, or discharged unless such
modification, waiver, or discharge is agreed to in a writing signed by you and
the Chief Executive Officer or President of the Company.  No waiver by
either party hereto at any time of any breach by the other party hereto of, or
of compliance with, any condition or provision of this Agreement to be performed
by such other party shall be deemed a waiver of similar or dissimilar provisions
or conditions at the same, or at any prior or subsequent, time.  No
agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are
not expressly set forth in this Agreement.  The validity,
interpretation, construction, and performance of this Agreement shall be
governed by laws of the State of New York without giving effect to the
principles of conflict of laws thereof.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    11.           Legal Fees and
Expenses.  The Company shall pay or reimburse any reasonable
legal fees and expenses you may incur in connection with any legal action to
enforce your rights under, or to defend the validity of, this
Agreement.  The Company will pay or reimburse such legal fees and
expenses on a regular, periodic basis upon presentation by you of a statement or
statements prepared by your counsel in accordance with its usual
practices.

    

    12.           Validity.  The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

    

    13.           Payments During
Controversy.  Notwithstanding the pendency of any dispute or
controversy, the Company will continue to pay you your full compensation in
effect when the notice giving rise to the dispute was given (including, but not
limited to, base salary and installments of incentive compensation) and continue
you as a participant in all compensation, benefit, and insurance plans in which
you were participating when the notice giving rise to the dispute was given,
until the dispute is finally resolved in accordance with section
7(c).  Amounts paid under this section are in addition to all other
amounts due under this Agreement and shall not be offset against or reduce any
other amounts due under this Agreement.  You shall be entitled to seek
specific performance of your right to be paid until the Date of Termination
during the pendency of any dispute or controversy arising under or in connection
with this Agreement.

    

    14.           Illegality.  Anything
in this Agreement to the contrary notwithstanding, this Agreement is not
intended and shall not be construed to require any payment to you which would
violate any federal or state statute or regulation, including without limitation
the "golden parachute payment regulations" of the Federal Deposit Insurance
Corporation codified to Part 359 of title 12, Code of Federal
Regulations.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    If this
letter correctly sets forth our agreement on the subject matter hereof, kindly
sign and return to the Company the enclosed copy of this letter, which will then
constitute our agreement on this subject.

    

    
      
        
          
            
              	 
      	
                      Very
      truly yours,

                    	 
      
	 
      	 
      	 
      
	 
      	
                      NBT
      BANCORP INC.

                    	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	

                      By:

                    	
                       /s/ Daryl
      Forsythe

                    	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                      AGREED
      TO:

                    	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 /s/
      David E. Raven	 
      
	 
      	
                      David
      E. Raven

                    	 
      

            

          

        

      

    

    

     

     12Unassociated Document

    
      

    

    
      Exhibit 10.25

      

      FIRST
AMENDMENT TO

      THE
SUPPLEMENTAL EXECTIVE RETIREMENT AGREEMENT

      EFFECTIVE
JULY 23, 2001

      

      

      WHEREAS,
this is the first amendment (the “First Amendment”) to the NBT Bancorp Inc.
Supplemental Executive Retirement Plan, effective as of July 23, 2001 (the
“SERP”);

      

      WHEREAS,
the SERP, as amended, is between NBT Bancorp Inc., a Delaware
corporation and a registered financial holding company headquartered at 52 S.
Broad Street, Norwich, New York 13815, and Michael J. Chewens, an
individual residing at 30 Pine Meadow Road, Vestal, New York,
13850;

      

      NOW,
THEREFORE, the SERP is amended, effective as of January 1, 2005, as
follows:

      

      1.            
Section 7.1 of the SERP shall be amended by deleting the second paragraph
therein in its entirety.

      

      2.            
Section 7.2 of the SERP shall be amended by deleting the phrase “Except with
respect to receipt of a lump sum benefit under Section 7.1,” in the section’s
first sentence.  The first sentence in Section 7.2 of the SERP shall
now begin with the words “Any election for an optional mode ...”

      

      3.            
Section 7.3 of the SERP shall be amended by deleting this section in its
entirety and replacing it with the following:

      

      “Payment
of any Retirement Income Benefit and 401(k)/ESOP Benefit under the Plan shall
not commence on a date before the first day of the seventh (7th) month
following the Participant’s “separation from service” with the Company as that
phrase is defined for purposes of section 409A of the Code.”

      

      4.            
Section 7.4 of the SERP shall be amended by deleting the period at the end of
subsection (b) therein and replacing it with a comma, followed by the word
“and”; and by adding a new subsection (c) to read as follows:

      

      “(c)           notwithstanding
anything herein to the contrary, no Supplemental Retirement Benefit shall
commence under this Plan before the date which is the seventh (7th) month
following the Participant’s “separation from service” with the Company as that
phrase is defined for purposes of section 409A of the Code.”

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      5.          
  Section 7.5(c) of the SERP shall be amended by deleting this
subsection in its entirety.

      

      6.            
In all other respects the Plan shall remain in full force and
effect.

      

      

      NBT
BANCORP INC.

      

      

      
        
          
            
              	
                      By:

                    	
                      /s/ Martin A.
      Dietrich          
      

                    	
                      Date:
      November 13, 2008

                    
	 
      	
                      Martin
      A. Dietrich

                    	 
      
	 
      	
                      President

                    	 
      
	 
      	
                      and
      Chief Executive Officer

                    	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                      By:

                    	
                      /s/ Michael J.
      Chewens        

                    	
                      Date:
      November 13, 2008

                    
	 
      	
                      Michael
      J. Chewens

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