Document:

Exhibit 10.3

CHEMUNG FINANCIAL CORPORATION

INCENTIVE COMPENSATION PLAN

(As Amended and Restated January 1, 2012)

Chemung Financial Corporation, a New
York corporation (“Chemung Financial” or the “Company”), sets forth the terms of its Incentive Compensation
Plan (the “Plan”), as follows:

 

		1.	PURPOSE

The purpose of the Plan is to enhance
the Company’s and its Affiliates’ ability to attract and retain highly qualified officers and key employees, and to
motivate such persons to serve the Company and its Affiliates and to expend maximum effort to improve the business results and
earnings of the Company, by providing to such persons an opportunity to acquire or increase a direct proprietary interest in the
operations and future success of the Company. To this end, the Plan provides for the grant of Unrestricted Stock (as defined below)
and cash awards to select officers and key employees. These awards are designed to be performance-based incentives to reward attainment
of annual and long-term performance goals.

		2.	DEFINITIONS

For purposes of the Plan and related
documents, the following terms shall have the following meanings:

“Affiliate” means, with respect
to the Company, Chemung Canal Trust Company, and any company or other trade or business that controls, is controlled by or is under
common control with the Company within the meaning of Rule 405 of Regulation C under the Securities Act, including without limitation,
any subsidiary of the Company within the meaning of Section 424(f) of the Code.

“Board” means the Board of
Directors of Chemung Financial Corporation.

“Code” means the Internal
Revenue Code of 1986, as now in effect or as hereafter amended.

“Committee” means a committee
of, and designated from time to time by resolution of the Board, which shall be constituted as provided in Section 3.2.

“Common Stock” means the
common stock of the Company.

“Director” means a member
of the Boards of Directors of Chemung Financial Corporation and of Chemung Canal Trust Company.

“Exchange Act” means the
Securities Exchange Act of 1934, as now in effect or as hereafter amended.

    	 

    	 

    

“Grant Price” means the average
of the closing prices of a share of Common Stock as quoted on the applicable securities quotation service, established securities
market or established national or regional exchange for each of the prior thirty trading days ending on December 31st
of the calendar year in which the Performance Period occurs.

“Grantee” means a person
who receives or holds an Incentive Award under the Plan.

“Incentive Award” means a
grant of Unrestricted Stock or cash payable as a reward for attainment of annual or long-term performance goals pursuant to the
provisions of the Plan.

“Outside Director” means
a member of the Boards of Directors of the Company and the Bank who is not an officer or employee of the Company.

“Performance Period” means
the period of time during which the performance goals must be met in order to determine the degree of payout with respect to an
Incentive Award.

“Securities Act” means the
Securities Act of 1933, as now in effect or as hereafter amended.

“Unrestricted Stock” means
a grant of Common Stock that is free of any restrictions awarded pursuant to the provisions of this Plan.

		3.	INCENTIVE AWARD ELIGIBILITY AND LIMITATIONS

		3.1.	Eligibility to Participate

Subject to this Section 3, Incentive
Awards may be made to such eligible officers or key employees of the Company or of any Affiliate (“Participant(s)”)
as the Board or the Committee shall determine from time to time.

		3.2.	Unrestricted Stock

The Board or Committee may grant Unrestricted
Stock to Participants of the Plan as it shall determine in its sole discretion. A grant of Unrestricted Stock shall be evidenced
by a written document which sets forth the number of shares of Unrestricted Stock which have been granted as part of the Incentive
Award. Each share of Unrestricted Stock shall have a value equal to the Grant Price. Pursuant to Section 4.3, the Board or Committee
shall set performance goals for each Participant which, depending on the extent to which they are met, will determine the number
of shares of Unrestricted Stock that will be granted to the Participant.

		3.3.	Limitation on Shares of Stock Subject to Awards and Cash Awards

During any time when the Company has
a class of equity security registered under Section 12 of the Exchange Act:

(i)           the maximum number of shares that
can be awarded as Unrestricted Stock under the Plan to any Participant as an Incentive Award is ten thousand (10,000) per calendar
year; and

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(ii)           the maximum amount that may be
earned in cash as an Incentive Award in any calendar year by any person eligible for an Incentive Award shall be $300,000.

		4.	TERMS AND CONDITIONS OF INCENTIVE AWARDS

		4.1.	Form and Timing of Payment of Incentive Awards

The Board or the Committee, in its sole
discretion, may pay Incentive Awards in the form of cash or in Unrestricted Stock (or in a combination thereof) equal to the value
of the Incentive Award as soon as practicable after the end of the applicable calendar year.

		4.2.	Performance Conditions

The right of an eligible officer or key
employee to receive a grant or settlement of any Incentive Award, and the timing thereof, may be subject to such performance conditions
as may be specified by the Board or the Committee. The Board or the Committee may use such business criteria and other measures
of performance as it may deem appropriate in establishing any performance conditions.

		4.3.	Performance Goals Generally

The performance goals for Incentive Awards
shall generally consist of one or more business criteria and a targeted level or levels of performance with respect to each of
such criteria, as specified by the Board or the Committee. Performance goals shall be objective and shall include the requirement
that the level or levels of performance targeted by the Board or the Committee result in the achievement of the specified performance
goals. The Board or the Committee may determine that Incentive Awards shall be granted upon achievement of any one performance
goal or that two or more of the performance goals must be achieved as a condition to grant.

		4.4.	Timing For Establishing Performance Goals

Performance goals shall be established
not later than 90 days after the beginning of any performance period applicable to such Incentive Awards, or at such other date
as may be determined by the Board or the Committee.

		4.5.	Adjustment of Incentive Awards

The Board or Committee shall retain the
discretion to adjust Incentive Awards upward or downward, either on a formula or discretionary basis, or any combination as the
Board or Committee determines.

		5.	ADMINISTRATION OF THE PLAN

		5.1.	Board

The Board shall have such powers and
authorities related to the administration of the Plan, as are consistent with the Company’s certificate of incorporation
and by-laws of the Company and applicable law. The Board shall have full power and authority to take all actions and to make all
determinations required or provided for under the Plan and shall have full power and authority to take all such other actions and
make all such other determinations not inconsistent with the specific terms and provisions of the Plan that the Board deems to
be necessary or appropriate to the administration of the Plan. The interpretation and construction by the Board of any provision
of the Plan, shall be final, binding and conclusive.

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		5.2.	Committee

The Board from time to time may delegate
to the Committee such powers and authorities related to the administration and implementation of the Plan, as set forth in Section
3.1 above and other applicable provisions, as the Board shall determine, consistent with the certificate of incorporation and by-laws
of the Company and applicable law.

(i)           Except as provided in subsection
(ii) below and except as the Board may otherwise determine, the Committee, if any, appointed by the Board to administer the Plan
shall consist of two or more Outside Directors of the Company who: (a) qualify as “outside directors” within the meaning
of Section 162(m) of the Code and who (b) meet such other requirements as may be established from time to time by the Securities
and Exchange Commission for plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act
and who (c) comply with the independence requirements of the stock exchange or securities association on which the Common Stock
is listed.

(ii)           The Board may also appoint one
or more separate committees of the Board, each composed of one or more Directors of the Company who need not be Outside Directors,
who may administer the Plan with respect to employees who are not executive officers or Directors of the Company, who may grant
Awards under the Plan to such employees, and may determine all terms of such Awards.

In the event that the Plan provides for
any action to be taken by or determination to be made by the Board, such action may be taken or such determination may be made
by the Committee if the power and authority to do so has been delegated to the Committee by the Board as provided for in this Section.
Unless otherwise expressly determined by the Board, any such action or determination by the Committee shall be final, binding and
conclusive. To the extent permitted by law, the Committee may delegate its authority under the Plan to a member of the Board.

		5.3.	No Liability

No member of the Board or of the Committee
shall be liable for any action or determination made in good faith with respect to the Plan.

		5.4.	Share Issuance/Book-Entry

Notwithstanding any provision of this
Plan to the contrary, the issuance of Common Stock under the Plan may be evidenced in such a manner as the Board, in its discretion,
deems appropriate, including, without limitation, book-entry registration or issuance of one or more Common Stock certificates.

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		5.5.	Amendment and Termination of the Plan

The Board may, at any time and from time
to time, amend, suspend, or terminate the Plan as to any shares of Common Stock as to which Incentive Awards have not been made.
An amendment shall be contingent on the approval of the Company’s shareholders to the extent stated by the Board, required
by applicable law or required by applicable stock exchange or securities association listing requirements. In addition, an amendment
will be contingent on approval of the Company’s shareholders if the amendment would: (i) materially increase the benefits
accruing to participants under the Plan; (ii) materially increase the aggregate number of shares of Common Stock that may be issued
under the Plan; or (iii) materially modify the requirements as to the eligibility for participation in the Plan. No Incentive Award
shall be made after termination of the Plan. No amendment, suspension, or termination of the Plan shall, without the consent of
the Grantee, impair rights or obligations under any Incentive Award theretofore awarded under the Plan.

		6.	REQUIREMENTS OF LAW

		6.1.	General

The Company shall not be required to
issue any shares of Common Stock under any Incentive Award if the issuance of such shares would constitute a violation by the Grantee,
or the Company of any provision of any law or regulation of any governmental authority, including without limitation any federal
or state securities laws or regulations. If at any time the Company shall determine, in its discretion, that the listing, registration
or qualification of any shares subject to an Incentive Award upon any securities exchange or under any governmental regulatory
body is necessary or desirable as a condition of, or in connection with, the issuance or purchase of shares hereunder, no shares
of Common Stock may be issued to the Grantee unless such listing, registration, qualification, consent or approval shall have been
effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect
the date of termination of the Award. The Company may, but shall in no event be obligated to, register any securities covered hereby
pursuant to the Securities Act.

		6.2.	Rule 16b-3

During any time when the Company has
a class of equity security registered under Section 12 of the Exchange Act, it is the intent of the Company that Common Stock distributed
pursuant to the Plan will qualify for the exemption provided by Rule 16b-3 under the Exchange Act. To the extent that any provision
of the Plan or action by the Board does not comply with the requirements of Rule 16b-3, it shall be deemed inoperative to the extent
permitted by law and deemed advisable by the Board, and shall not affect the validity of the Plan. In the event that Rule 16b-3
is revised or replaced, the Board may exercise its discretion to modify this Plan in any respect necessary to satisfy the requirements
of, or to take advantage of any features of, the revised exemption or its replacement.

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		7.	EFFECT OF CHANGES IN CAPITALIZATION

		7.1.	Changes in Common Stock

In the event of any change in corporate
capitalization, such as a stock split, or a corporate transaction, such as any merger, consolidation, separation, including a spin-off,
or other distribution of stock or property of the Company, any reorganization (whether or not such reorganization comes within
the definition of such term in Internal Revenue Code Section 368) or any partial or complete liquidation of the Company, such adjustment
shall be made in the number and class of shares of Common Stock which may be delivered under the Plan as may be determined to be
appropriate and equitable by the Company Board, in its sole discretion, to prevent dilution or enlargement of rights. Adjustments
under this Section 7.1 shall be made by the Board, whose determination in that respect shall be final, binding and conclusive.
No fractional shares or other securities shall be issued pursuant to any such adjustment, and any fractions resulting from any
such adjustment shall be eliminated in each case by rounding downward to the nearest whole share.

		7.2.	No Limitations on Company

The making of Incentive Awards pursuant
to the Plan shall not affect or limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations,
or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or
any part of its business or assets.

		8.	GENERAL PROVISIONS

		8.1.	Disclaimer of Rights

No provision in the Plan shall be construed
to confer upon any individual the right to remain in the employ or service of the Company or any Affiliate, or to interfere in
any way with any contractual or other right or authority of the Company either to increase or decrease the compensation or other
payments to any individual at any time, or to terminate any employment or other relationship between any individual and the Company.
The obligation of the Company to pay any benefits pursuant to the Plan shall be interpreted as a contractual obligation to pay
only those amounts described herein, in the manner and under the conditions prescribed herein.

		8.2.	Nonexclusivity of the Plan

Neither the adoption of the Plan, nor
the submission of the Plan to the shareholders of the Company for approval shall be construed as creating any limitations upon
the right and authority of the Board to adopt such other incentive compensation arrangements (which arrangements may be applicable
either generally to a class or classes of individuals or specifically to a particular individual or particular individuals) as
the Board in its discretion determines desirable, including, without limitation, the granting of stock options.

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		8.3.	Captions

The use of captions in the Plan is for
the convenience of reference only and shall not affect the meaning of any provision of the Plan or Award Agreement.

	 	8.4.	Severability

If any provision of the Plan shall be
determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof
shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction.

		8.5.	Governing Law

The validity and construction of this
Plan, and the instruments evidencing the Incentive Awards under the Plan shall be governed by the laws of the State of New York,
other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Plan,
and the instruments evidencing the Incentive Awards granted under the Plan to the substantive laws of any other jurisdiction.

To record adoption of the Plan by the
Board as of January 1, 2012, and approval of the Plan by the shareholders on __________, 2012, the Company has caused its authorized
officer to execute this document.

 

	 	CHEMUNG FINANCIAL CORPORATION
	 	 	 
	 	 	 
	 	By:	 
	 	Title:	 

 

 

    	7Exhibit 10.4

CHEMUNG FINANCIAL CORPORATION

DIRECTORS’ COMPENSATION PLAN

 

(As Amended and Restated effective January
1, 2012)

 

		1.	PURPOSE:

 

The purpose of the Directors’
Compensation Plan (the “Plan”) is to enable the Chemung Financial Corporation (the “Company”) to attract
and retain persons of exceptional ability to serve as directors of the Company and of Chemung Canal Trust Company (the “Bank”)
and to further align the interests of directors and stockholders in enhancing the value of the common stock of the Company. The
Plan was originally established to provide for the cash payment of an annual retainer and fees to non-employee directors serving
on the Board of Directors of the Company and the Bank. The Plan was amended December 21, 2005 to provide (i) payment of additional
compensation to each non-employee director in shares of the Company’s common stock in an amount equal to the total cash compensation
earned by each non-employee director during the year for service on the Board of Directors of each of the Company and the Bank,
and for each year of service thereafter, to be distributed from treasury shares on or about January 15 following the calendar year
of service; and (ii) payment to the President and CEO of the Company and the Bank for his service on the Boards of Directors of
the Company and the Bank in an amount equal in value to the average compensation awarded to non-employee directors who have served
twelve (12) months of the previous year. The Plan is hereby further amended and restated, effective January 1, 2012, to add provisions
regarding the grant price of the stock awards.

 

		2.	DEFINITIONS:

 

For purposes of the Plan,
the following terms shall have the following meanings:

 

“Annual Retainer”
shall mean the annual retainer payable to a director serving on the Board of Directors of the Bank and the Company under the Company’s
compensation policies for directors in effect from time to time.

 

“The Company Board”
shall mean the Board of Directors of Chemung Financial Corporation.

 

“Common Stock”
means the common stock of the Company.

 

“Fees” shall
mean the amount, as determined under the Company’s compensation policies for directors in effect from time to time, payable
to a director, in cash and/or in shares of the Common Stock, for attendance at meetings of the full Board of Directors of the Company
and the Bank, and for each committee meeting attended. One fee is paid for attendance at meetings that serve both the Company and
the Bank.

 

“Grant Price”
means the average of the closing prices of a share of Common Stock as quoted on the applicable securities quotation service, established
securities market or established national or regional exchange for each of the prior thirty trading (30) days ending on December
31st of the Year of Service.

    	 

    	 

    

 

“Payment Date”
of the Annual Retainer and Fees means the date on or about January 15 following the Year of Service.

 

“Year of Service”
means the calendar year.

 

		3.	ADMINISTRATION:

 

The Company Board shall
be responsible for administering the Plan. The Company Board shall have all of the powers necessary to enable it to properly carry
out its duties under the Plan. Not in limitation of the foregoing, the Company Board shall have the power to construe and interpret
the Plan and to determine all questions that shall arise thereunder. The Company Board shall have such other and further specified
duties, powers, authority and discretion as are elsewhere in the Plan either expressly or by necessary implication conferred upon
it. The Company Board may appoint such agents as it may deem necessary for the effective performance of its duties, and may delegate
to such agents such powers and duties as the Company may deem expedient or appropriate that are not inconsistent with the intent
of the Plan. The decision of the Company Board upon all matters within its scope of authority shall be final and conclusive on
all persons, except to the extent otherwise provided by law.

 

		4.	SHARES AVAILABLE:

 

The maximum number of shares
of Common Stock that may be delivered under the Plan shall not exceed twenty thousand (20,000) per calendar year. Shares delivered
under the Plan may be original issue shares, treasury shares, authorized but unissued shares or shares purchased in the open market,
all as determined by the Company Board from time to time.

 

		5.	SHARES FOR ANNUAL RETAINER AND FEES:

 

The total number of shares
of Common Stock to be issued with respect to the Annual Retainer and Fees payable to directors serving on the Boards of the Company
and the Bank shall be determined by dividing the total amount of such Annual Retainer and Fees by the Grant Price of the Common
Stock. Any fractional shares shall be rounded up to the next whole share. Certificates for the shares of Common Stock payable under
this Section shall be delivered as soon as practicable after the Payment Date.

 

		6.	ADJUSTMENTS IN AUTHORIZED SHARES:

 

In the event of any change
in corporate capitalization, such as a stock split, or a corporate transaction, such as any merger, consolidation, separation,
including a spin-off, or other distribution of stock or property of the Company, any reorganization (whether or not such reorganization
comes within the definition of such term in Internal Revenue Code Section 368) or any partial or complete liquidation of the Company,
such adjustment shall be made in the number and class of shares of Common Stock which may be delivered under the Plan as may be
determined to be appropriate and equitable by the Company Board, in its sole discretion, to prevent dilution or enlargement of
rights.

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		7.	RESALE OF SHARES:

 

The Company may impose
such restrictions on the sale or other disposition of shares issued under this Plan as the Company Board deems necessary to comply
with applicable securities laws. Certificates for shares issued under this Plan may bear such legends as the Company deems necessary
to give notice of such restrictions.

 

		8.	COMPLIANCE WITH LAW AND OTHER CONDITIONS:

 

No shares shall be issued
under this Plan prior to compliance by the Company, to the satisfaction of its counsel, with any applicable laws. The Company shall
not be obligated to (but may in its discretion) take any action under applicable federal or state securities laws (including registration
or qualification of the Plan or the Common Stock) necessary for compliance therewith in order to permit the issuance of shares
hereunder, except for actions (other than registration or qualification) that may be taken by the Company without unreasonable
effort or expense and without the incurrence of any material exposure to liability.

 

		9.	AMENDMENT, MODIFICATION AND TERMINATION OF THE PLAN:

 

The Company Board shall
have the right and power at any time and from time to time to amend the Plan in whole or in part and at any time to terminate the
Plan; provided, however, that an amendment to the Plan may be conditioned on the approval of the stockholders of the Company if
and to the extent the Company Board determines that stockholder approval is necessary and appropriate. No amendment, modification
or termination of the Plan shall adversely affect in any material way the payment of any Annual Retainer and Fees earned for services
provided by a director(s) to the Boards of the Company and the Bank.

 

		10.	MISCELLANEOUS:

 

The Plan shall be construed,
administered, regulated and governed in all respects under and by the laws of the United States to the extent applicable, and to
the extent such laws are not applicable, by the laws of the state of New York. The Plan shall be binding on the Company and any
successor in interest of the Company.

 

IN WITNESS WHEREOF, Chemung
Financial Corporation has caused this Plan to be executed by its duly authorized officer as of the day and year first above written.

 

	CHEMUNG FINANCIAL CORPORATION	 
	 	 
	 	 
	 	 
	President and Chief Executive Officer	 

 

 

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