Document:

Exhibit 10.1

July 3, 2002

PERSONAL AND CONFIDENTIAL

Mr. John R. Koelmel
5576 Oakridge Drive
Hamburg, New York 14075

Dear John:

      Re:   Confidential Separation Agreement and General Release

            This letter (the "Letter Agreement") will confirm your resignation
from Financial Institutions, Inc. ("FII") as Chief Administrative Officer and
from each and every officer, director or trustee position that you hold at FII,
its subsidiaries and joint ventures. This Letter Agreement will explain the
effect of your resignation on various FII plans and benefits. It also provides
for certain payments tailored especially for you in consideration of your
release of any potential claims as set forth below. Accordingly, you and FII
agree as follows:

            1. You will resign as an employee, officer, director or trustee of
FII, its subsidiaries and joint ventures, as of 5:00 p.m. on July 24, 2002 (the
"Resignation Date").

            2. Despite your resignation, you will be entitled to receive equal
monthly payments in an amount that equals the sum of (a) the Base Salary Amount
paid to you in 2002, and (b) the annual incentive compensation earned by you for
the year 2001, for a period of one year ("Severance Period"), commencing on the
Resignation Date. The gross monthly payments will be Twenty-Five Thousand One
Hundred Fifty-Eight Dollars and Seventeen Cents ($25,158.17) or a total gross
amount of Three Hundred One Thousand Eight Hundred Ninety-Eight Dollars and No
Cents ($301,898.00). FII reserves the right to deduct from these payments to you
any federal, state or local taxes or other amounts required by law to be
deducted. Your obligations under Paragraphs 5-7 and each of their numbered
subparagraphs of the Employment Agreement executed by and between you and FII as
of April 15, 2001, which is hereby incorporated by reference and attached as
Exhibit A, will run for one year from the Resignation Date. The monthly payments
will continue during the Severance Period even if you obtain employment
provided, however that you do not violate Paragraphs 5-7 and each of their
numbered subparagraphs of your Employment Agreement (Exhibit A).

            3. Your family coverage under the FII health and dental insurance
plans, will be continued as if you remained an employee to and including April
15, 2004, or until you obtain

                                       1
<PAGE>

a position offering comparable benefits, whichever occurs first. Your portion of
the premium, as it may be adjusted on an annual basis, will be deducted from the
monthly payments during the Severance Period. Following the Severance Period,
you will be billed directly for your share of the premiums by the insurance
carrier. If you fail to pay your share of the premiums, the insurance will be
canceled after thirty (30) days, at which time you will be eligible for COBRA
benefits. Information concerning COBRA will be sent to you under separate cover.
In the event you obtain a position offering comparable benefits, you must
immediately notify Regina R. Colegrove, Vice President of Human Resources,
Financial Institutions, Inc., 220 Liberty Street, Warsaw, New York 14569.

            4. You will receive payment for two (2) weeks unused vacation in a
gross amount of Seven Thousand Seven Hundred Sixty-Nine Dollars and Twenty-Three
Cents ($7,769.23), less standard payroll deductions, following the Resignation
Date.

            5. You acknowledge that, under law, you will not be able to make any
more contributions or have any made on your behalf in FII's 401(k) Plan ("Plan")
following the Resignation Date. You retain the right to apply for a distribution
from the Plan, including, among other things, a rollover, according to the terms
and conditions of the Plan.

            6. You acknowledge that your group life insurance and long-term
disability insurance will cease on the Resignation Date. Information regarding
conversion rights, if any, will be sent to you under separate cover.

            7. You will be reimbursed for any reasonable and necessary
out-of-pocket business expenses incurred by you up to the Resignation Date, in
the course of performing your duties, upon timely submission of expense reports
and substantiation of the expenses, in accordance with FII policies.

            8. Your 28,777 vested stock options will be treated in accordance
with the terms and conditions of the FII 1999 Management Stock Incentive Plan
("Stock Option Plan"). Pursuant to the Stock Option Plan, you must exercise your
stock options which have vested within ninety (90) days of the Resignation Date.

            9. You will return all of FII's property on the Resignation Date, as
set out in detail in Paragraph 6 of your Employment Agreement (Exhibit A).

            10. In consideration of the promises made by you in Paragraph 12,
below, and the general release and waiver contained in Paragraph 14 of this
Letter Agreement, FII will provide additional consideration, to which you are
not otherwise entitled, as follows:

                  (a) an amount, pro rated for the months you were employed in
2002 to and including the Resignation Date, equal to the additional 401(k)
match, based on 2002 year end financial results. This amount will be paid in a
lump sum payment promptly after FII's audited financial results are publicly
disclosed,

                  (b) an amount, pro rated for the months you were employed in
2002, to and including the Resignation Date, equal to your share of the Senior
Management Incentive Compensation Plan benefit based on 2002 year end financial
results as determined by the

                                       2
<PAGE>

Compensation Committee (Personnel Committee) of the Board of Directors. This
amount will be paid in a lump sum promptly after FII's audited financial results
are publicly disclosed.

            11. You agree to cooperate with FII in ongoing business matters and
in the defense or prosecution of any civil, criminal or administrative actions,
whether or not they are currently pending, in which you had involvement during
your employment with FII at dates and times reasonably convenient to you. Such
cooperation may include, but is not limited to, consulting with FII and its
attorneys and testifying by affidavit, deposition, or otherwise at dates and
times reasonably convenient to you. You will be reimbursed for your reasonable
out of pocket expenses upon presentation of appropriate documentation.

            12. You agree to comply with Paragraphs 5 through 7 and each of
their numbered subparagraphs of your Employment Agreement (Exhibit A).

            13. You represent and agree that you understand that you have
twenty-one (21) days to discuss all aspects of this Letter Agreement with your
private attorney whom you have retained at your own expense; that to the extent
you desire you have availed yourself of this right; that you have carefully read
and fully understand all of the provisions of this Letter Agreement, and that
you are voluntarily entering into this Letter Agreement. You further understand
and agree that you have seven (7) days from the date of the execution of this
Letter Agreement to revoke it and that the waiver contained in Paragraph 14 of
this Letter Agreement is not effective until the seven (7) day period has
expired.

            14. You, for and in consideration of the promises set forth in this
Letter Agreement, including, but not limited to, the additional consideration
set forth in Paragraph 10 and its lettered subparagraphs, to which you are not
otherwise entitled, hereby agree and covenant for yourself, your heirs,
executors, administrators and assigns, to release and discharge and not to
institute any suit or action, at law or in equity, against Financial
Institutions, Inc., defined to include its subsidiaries, joint ventures and all
other related and affiliated entities, their predecessors, successors and
assigns, and their respective officers, directors, shareholders, employees,
agents, attorneys and all persons acting by, through or with them (in the
aggregate "Affiliates"), for or on account of any claim or causes of action
based upon and or arising out of any or all facts, circumstances and or events
relating to your employment with Financial Institutions, Inc. or any of their
Affiliates and your separation from that employment. You release and forever
discharge, and by this document, do release and forever discharge, Financial
Institutions, Inc. and their Affiliates, of and from all and any manner of
action or actions, cause or causes of action, suits, debts, liabilities,
obligations, dues, sums of money, claims for wages, bonuses, accounts,
reckonings, bonds, bills, specialties, covenants, contracts, plans, programs,
controversies, agreements, promises, variances, trespasses, damages, judgments,
extents, executions, claims and demands whatsoever, in law or in equity, which
against them, you ever had, now have, or which your heirs, executors or
administrators, hereafter can, shall or may have, upon or by reason of any
matter, cause or thing whatsoever arising out of your employment with Financial
Institutions, Inc. or any of their Affiliates and your separation from that
employment and specifically including, but not in any way limited to claims
arising under New York's Executive Law (Human Rights Law), ss.290 et seq., Title
VII of the Civil Rights Act of 1964, as amended in 1972 and 1991, the Americans
With Disabilities Act, and the Family and Medical Leave Act and you specifically
waive any and all claims under the Age Discrimination

                                       3
<PAGE>

in Employment Act, as amended, and any other federal, state or local statute,
ordinance, rule or regulation relating to discrimination from the beginning of
your employment to the date you execute this Letter Agreement.

            15. You agree that you will not disclose the contents of this Letter
Agreement nor the terms of this settlement to any third party, with the
exception of your spouse, your attorney or your accountant, each of whom are
likewise informed of and bound by this confidentiality provision, unless
compelled to do so by legal process. You understand and agree that FII may be
required to disclose this Agreement to its Board of Directors or pursuant to SEC
regulations.

            16. You agree that you will not disparage FII or its Affiliates,
their products or services or their officers, directors or employees in any way
either orally or in writing. Similarly, FII will not disparage you and if FII
receives an inquiry from a prospective employer concerning you, FII will respond
with your job title, dates of employment, and, if asked, will state that you
resigned to pursue other professional opportunities. If either you or FII
receives an inquiry from the news media or an other third party, including
inside staff, both you and FII will respond by stating that you resigned to
pursue other professional opportunities. FII, through its President and Chief
Executive Officer, agrees to inform its senior management team of your
resignation by using the following text:

            For the last several months, the FII Personnel Committee has been
            working with John Koelmel and me to develop an organizational plan
            in support of the Company's long-term strategic objectives. Those
            efforts included an evaluation of the prospective roles and
            responsibilities for each member of our Executive Management Team.
            After considering his future role with FII, John has offered to
            resign from the Company to pursue other opportunities. Regretfully,
            the Personnel Committee and I have agreed to accept his resignation,
            which will be effective later this month.

            17. You acknowledge and agree that: (a) any breach or attempted or
threatened breach of the Letter Agreement or any provision thereof, including
specifically, without limitation, Paragraphs 5 through 7 and each of their
numbered subparagraphs of your Employment Agreement (Exhibit A), would result in
irreparable injury to FII for which there would be no adequate remedy at law,
and (b) if you should breach or attempt or threaten to breach this Letter
Agreement or any provision thereof, including specifically, without limitation,
Paragraphs 5 through 7 and each of and their numbered subparagraphs of your
Employment Agreement (Exhibit A), FII shall have the right to seek an injunction
and/or temporary restraining order to enjoin you from any further breaches or
attempted or threatened breaches of this Letter Agreement or any provision
thereof, including, specifically, without limitation, Paragraphs 5 through 7 and
each of their numbered subparagraphs of the Employment Agreement (Exhibit A), or
to compel compliance with this Letter Agreement or any provision thereof,
including specifically, without limitation, Paragraphs 5 through 7 and each of
their numbered subparagraphs of the Employment Agreement (Exhibit A), by
specific performance in addition to any other remedy available to FII in equity
or at law, and (c) if a court of competent

                                       4
<PAGE>

jurisdiction determines that you have breached or attempted or threatened to
breach this Letter Agreement or any provision thereof, including specifically,
without limitation, Paragraphs 5 through 7 and each of their numbered
subparagraphs of the Employment Agreement (Exhibit A), you shall consent to the
granting in such proceeding of an injunction restraining you from further
breaches or attempted or threatened breaches or compelling compliance, by
specific performance, with this Letter Agreement.

            18. This Letter Agreement and the attached Exhibit A constitutes the
terms of our agreement in its entirety and the terms and provisions shall be
binding on an to the benefit of you, your beneficiaries, heirs at law, legatees
and other legal representatives and shall be binding on and to the benefit of
FII and its Affiliates. Without limitation, this Letter Agreement supersedes and
is in complete satisfaction of all rights and obligations in your Employment
Agreement.

            19. You agree that the terms of this Letter Agreement supersede any
and all prior agreements whether written or oral and are made pursuant to the
laws of New York State and may be modified or terminated only by written
agreement between you and FII. Any dispute as to the terms of this Letter
Agreement or the compliance of the parties with its term shall be resolved under
the laws of New York State.

                                       5
<PAGE>

            Please indicate your acceptance of the foregoing by executing it in
the space set forth below and returning it along with a signed and notarized
acknowledgement to the undersigned.

                          FINANCIAL INSTITUTIONS, INC.

                                            By:  /s/ Peter G. Humphrey
                                                 ----------------------
                                                 Peter G. Humphrey
                                                 President & CEO

Attachment:  Employment Agreement dated as of April 15, 2001 (Exhibit A).

I HAVE READ, UNDERSTAND AND AM VOLUNTARILY ENTERING INTO THIS LETTER AGREEMENT.

Dated:   July 16th, 2002                        /s/ John R. Koelmel
       -----------------                        --------------------------
                                                    John R. Koelmel

Sworn to before me this 16th day
of July, 2002.

/s/ Regina R. Colgrove
----------------------
Notary Public

                                       6Exhibit 10.1

               THIRD MODIFICATOIN TO THE ADDITIONAL LOAN AGREEMENT

    Extension of and Third Modification to the Additional Loan Agreement and
                              Additional Loan Note

This Extension of and Third Modification to the Additional Loan Agreement and
Additional Loan Note dated as of September 1, 2002 is entered into among George
Krupp, an individual, Douglas Krupp, an individual and Krupp GP, Inc., a
Massachusetts corporation (collectively, the "Borrowers") and Krupp Government
Income Trust, a Massachusetts business trust (the "Holder").

Whereas, the Borrowers and the Holder have entered into the Additional Loan
Agreement (the "Agreement") dated December 28, 1990, the Additional Loan Note
(the "Note") dated December 28, 1990, the Modification Agreement dated May 1997
and the Extension of and Second Modification to the Additional Loan Agreement
and Additional Loan Note dated July 1, 2002 (the "Second Modification");

Whereas, in accordance with the terms of the Agreement, the Note, the
Modification Agreement and the Second Modification, unless extended, the terms
of the Agreement, the Note, the Modification Agreement and the Second
Modification expire on September 5, 2002;

Whereas, the Borrowers and the Holder have mutually agreed to extend the terms
of the Agreement, the Note, the Modification Agreement and the Second
Modification;

Now, therefore, for and in consideration of the foregoing recitals, the mutual
covenants hereinafter set forth, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

      1.    Amendments. The Agreement, the Note, the Modification Agreement and
            the Second Modification are amended as follows:

            (a)   Section A of the Note is amended to read in its entirety as
                  follows:

                  A.    Unless otherwise accelerated as provided herein or in
                        the Additional Loan Agreement, the outstanding principal
                        balance shall be payable on December 31, 2002.

      2.    Conditions Precedent. Notwithstanding any contrary provision, this
            document is not effective unless and until the Holder receives
            counterparts of this document executed by each party named on the
            signature page or pages of this document.

      3.    Ratifications. To induce the Holder to enter into this document, the
            Borrowers (a) ratify and confirm all provisions of the Agreement,
            the Note, the Modification Agreement and the Second Modification as
            amended by this document, (b) ratify and confirm that all
            guaranties, assurances, and Liens (as defined in the Agreement, the
            Note, the Modification Agreement and the Second Modification)
            granted, conveyed, or assigned to the Holder under the Agreement,
            the Note, the Modification Agreement and the Second Modification (as
            they have been renewed, extended, and amended) are not released,
            reduced, or otherwise adversely affected by this document and
            continue to guarantee, assure, and secure full payment and
            performance of the present and future indebtedness arising
            hereunder, and (c) agree to perform those acts and duly authorize,
            execute, acknowledge, deliver, file, and record those additional
            documents as the Holder may request in order to create, perfect,
            preserve, and protect those guaranties, assurances, and Liens.

      4.    Representations. To induce the Holder to enter into this document,
            the Borrowers represent and warrant to the holder that as of the
            date of this document (a) the Borrowers have all requisite authority
            and power to execute, deliver and perform their respective
            obligations under this document, which execution, delivery, and
            performance have been duly authorized by all necessary corporate
            action in the case of the corporate Borrower, require no action by
            or filing with any governmental authority, do not violate any of the
            corporate Borrower's organizational documents or violate any law
            applicable to any of the Borrowers or any material agreement to
            which they or their assets are bound, (b) upon execution and
            delivery by all parties to it, this document will constitute the
            Borrowers' legal and binding obligation, enforceable against each of
            them in accordance with this document's terms except as that
            enforceability may be limited by debtor relief laws and general
            principles of equity, (c) all other representations and warranties
            in the Agreement, the Note, the Modification Agreement and the
            Second Modification are true and correct in all material respects
            except to the extent that any of them speak to a different specific
            date, and (d) no Default or Event of Default exists.

<PAGE>

      5.    Miscellaneous. Except as specifically amended and modified in this
            document, the Agreement, the Note, the Modification Agreement and
            the Second Modification are unchanged and continue in full force and
            effect.

      The parties hereto have caused this Extension of and Third Modification to
the Additional Loan Agreement and Additional Loan Note to be duly executed as of
the date first written above.

Krupp GP, Inc., a Massachusetts corporation     Krupp Government Income Trust,
                                                A Massachusetts business trust

BY: /s/ David C. Quade                          By: Berkshire Mortgage Advisors
    ---------------------------
Its: Executive Vice President                   Limited Partnership, its Advisor

                                                By: BRF Corporation, its general
     /s/ Douglas Krupp                              partner
-------------------------------
Douglas Krupp, an individual
                                                By: /s/ Ronald F. Halpern
                                                   -----------------------------
                                                   Name: Ronald F. Halpern
                                                   Title:  President
    /s/ George Krupp
-------------------------------
George Krupp, an individual

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]