Document:

Exhibit

AMENDMENT NO. 2 TO REVOLVING CREDIT AGREEMENT 
This Amendment No. 2 to Revolving Credit Agreement, dated as of January 29, 2020 (this “Amendment”), is among BRIGGS & STRATTON CORPORATION, a Wisconsin corporation (the “Lead Borrower”), the other Loan Parties party hereto, JPMORGAN CHASE BANK, N.A., as Administrative Agent (the “Administrative Agent”) and the lenders party hereto (the “Lenders”).  Capitalized terms used and not otherwise defined herein have the definitions provided therefor in the Credit Agreement referenced below.
W I T N E S S E T H:
WHEREAS, the Lead Borrower, the other Borrowers from time to time party thereto, the Lenders (as defined therein) from time to time party thereto and the Administrative Agent are parties to that certain Revolving Credit Agreement, dated as of September 27, 2019 (as amended, restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”; the Credit  Agreement, as amended by this Amendment, the “Amended Credit Agreement”);
WHEREAS, pursuant to Section 13.12 of the Credit Agreement, the Loan Parties party to the Credit Agreement, the Administrative Agent and the Required Lenders may amend the Credit Agreement; and
WHEREAS, the Lead Borrower has requested that the Administrative Agent and the Required Lenders amend, and the Administrative Agent and the Required Lenders have agreed to amend, the Credit Agreement as set forth herein.
NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, the receipt and sufficiency of which are hereby acknowledged, and subject to the conditions set forth herein, the parties hereto agree as follows:
1.Amendments to the Credit Agreement.  Effective as of the date of satisfaction of the condition precedent set forth in Section 2 below, the parties hereto agree that:
(a)The definition of “Applicable Margin” in Section 1.01 of the Credit Agreement is hereby amended as follows:
		
	(i)
	The table therein is hereby amended and restated in its entirety as follows:

	
				
	Level
	Consolidated Fixed Charge Coverage Ratio
	Base Rate Loans
	LIBO Rate Loans and Overnight LIBO Rate Loans

	I
	> 1.75:1.00
	0.50%
	1.50%

	II
	> 1.40:1.00 ≤ 1.75:1.00
	0.75%
	1.75%

	III
	> 1.00:1.00 ≤ 1.40:1.00
	1.00%
	2.00%

	IV
	> 0.75:1.00 ≤ 1.00:1.00
	1.25%
	2.25%

	V
	≤ 0.75:1.00
	1.50%
	2.50%

		
	(ii)
	The last paragraph thereof is hereby amended and restated in its entirety as follows:

Notwithstanding anything to the contrary set forth in this definition, Level III shall be deemed to be applicable until the Administrative Agent’s receipt of the Financial Statements for the Lead Borrower’s first full fiscal quarter ending after the Closing Date (unless such Financial Statements demonstrate that Level IV should have been applicable during such period, in which case Level IV shall be deemed to be applicable during such period) and adjustments to the Level then in effect shall thereafter be effected in accordance with the terms of this definition; provided that, notwithstanding anything to the contrary set forth in this definition, Level V shall be deemed to be applicable from January 29, 2020 until the Administrative Agent’s receipt of the Financial Statements for the Lead Borrower’s fiscal quarter ending on or about March 31, 2020 and adjustments to the Level then in effect shall thereafter be effected in accordance with the terms of this definition.

(b)The definition of “Liquidity Event” in Section 1.01 of the Credit Agreement is hereby amended and restated as follows:
“Liquidity Event” shall mean the occurrence of a date when (a) Aggregate Availability shall have been less than (i) from the Closing Date until the end of the Lead Borrower’s fiscal quarter ending on or about March 31, 2020, the greater of (x) 7.5% of the Line Cap and (y) $30,000,000 and (ii) thereafter, the greater of (x) 12.5% of the Line Cap and (y) $50,000,000, in each case for five (5) consecutive Business Days, until such date as (b) Aggregate Availability shall have been at least equal to (i) from the Closing Date until the end of the Lead Borrower’s fiscal quarter ending on or about March 31, 2020, the greater of (x) 7.5% of the Line Cap and (y) $30,000,000 and (ii) thereafter, the greater of (x) 12.5% of the Line Cap and (y) $50,000,000, in each case, for thirty (30) consecutive calendar days (it being understood that such consecutive calendar days may occur during the period contemplated by the preceding clause (b)(i), the preceding clause (b)(ii) or a combination thereof).
(c)The definition of “Payment Conditions” in Section 1.01 of the Credit Agreement is hereby amended and restated as follows:
“Payment Conditions” shall mean, as to any proposed relevant action to be taken on any date:
(a)    no Default or Event of Default has then occurred and is continuing or would result from such action; and
(b)    either:
(i)    (x) Aggregate Availability on a pro forma basis immediately after giving effect to such action would be at least equal to the greater of the Applicable Seasonal Percentage on such date of the Line Cap and $80,000,000 and (y) over the thirty (30) consecutive days prior to consummation of such action, Aggregate Availability averaged no less than the greater of (A) the Applicable Seasonal Percentage (as of the date of such action) of the Line Cap and (B) $80,000,000 on a pro forma basis for such action; or
(ii)    (x) Aggregate Availability on a pro forma basis immediately after giving effect to such action would be at least equal to the greater of the Applicable Seasonal Percentage on such date of the Line Cap and $60,000,000, (y) over the thirty (30) consecutive days prior to consummation of such action, Aggregate Availability averaged no less than the greater of (A) the Applicable Seasonal Percentage (as of the date of such action) of the Line Cap and (B) $60,000,000 on a pro forma basis for such action and (z) the Consolidated Fixed Charge Coverage Ratio as of the applicable Test Period would be at least 1.10 to 1.00 on a Pro Forma Basis for such action.
For purposes of this definition, “Applicable Seasonal Percentage” shall mean (A) solely for purposes of the definitions of “Maturity Date” and “Springing Maturity Date” and determining compliance with Section 10.06(d) solely with respect to repayment or prepayment of the Senior Notes, (x) for purposes of clause (b)(i) above, (i) 20% for any date in January, February or March, (ii) 25% for any date in April, (iii) 30% for any date in May, (iv) 35% for any date in June, July or August, (v) 30% for any date in September, (vi) 25% for any date in October and (vii) 20% for any date in November or December and (y) for purposes of clause (b)(ii) above, (i) 15% for any date in January, February or March, (ii) 20% for any date in April, (iii) 25% for any date in May, (iv) 30% for any date in June, July or August, (v) 25% for any date in September, (vi) 20% for any date in October and (vii) 15% for any date in November or December and (B) for all other purposes, (x) for purposes of clause (b)(i) above, 20% and (y) for purposes of clause (b)(ii) above, 15%.
(d)The first proviso in Section 9.18(a) of the Credit Agreement is hereby amended and restated as follows:
(provided that, if requested by the Administrative Agent, from and after the date on which Aggregate Availability is less than (i) from the Closing Date until the end of the Lead Borrower’s 

fiscal quarter ending on or about March 31, 2020, the greater of 7.5% of the Line Cap and $30,000,000 and (ii) thereafter, the greater of 15% of the Line Cap and $60,000,000, in each case for five (5) consecutive Business Days and until such subsequent date, if any, on which Aggregate Availability equals or exceeds such threshold for a period of thirty (30) consecutive calendar days (it being understood that such consecutive calendar days may occur during the period contemplated by the preceding clause (i), the preceding clause (ii) or a combination thereof), the Lead Borrower shall deliver to the Administrative Agent weekly Borrowing Base Certificates by Wednesday (or if such date is not a Business Day, the following Business Day) of every week prepared as of the close of business on Friday of the previous week, which weekly Borrowing Base Certificates shall be in standard form unless otherwise reasonably agreed to by the Administrative Agent)
(e)Section 10.01(k) of the Credit Agreement is hereby amended by replacing the phrase “the greater of $110,000,000 and 7.5% of Consolidated Total Assets” therein with the phrase “the greater of $200,000,000 and 15.0% of Consolidated Total Assets”.
(f)Section 10.10 of the Credit Agreement is hereby amended and restated as follows:
Financial Covenant.  On any date when Aggregate Availability is less than (a) from the Closing Date until the end of the Lead Borrower’s fiscal quarter ending on or about March 31, 2020, the greater of (i) 7.5% of the Line Cap and (ii) $30,000,000 and (b) thereafter, the greater of (i) 12.5% of the Line Cap and (ii) $50,000,000 (collectively, the “FCCR Test Amount”), have a Consolidated Fixed Charge Coverage Ratio, calculated on a Pro Forma Basis, of less than 1.0 to 1.0, tested for the four fiscal quarter period ending on the last day of the most recently ended fiscal quarter for which the Lead Borrower was required to deliver Financial Statements, and at the end of each succeeding fiscal quarter thereafter until the date on which Aggregate Availability has exceeded the FCCR Test Amount for thirty (30) consecutive days.
2.Conditions Precedent.  The effectiveness of this Amendment is subject to the conditions precedent that:
(a)the Administrative Agent shall have received counterparts to (i) this Amendment, duly executed by each Loan Party party to the Credit Agreement, the Administrative Agent and Lenders constituting the Required Lenders and (ii) the Consent and Reaffirmation attached hereto, duly executed by each Guarantor;
(b)the Administrative Agent shall have received, for the account of each Lender that provides its executed signature page hereto by such time as is requested by the Administrative Agent and the Lead Borrower, an amendment fee in an amount previously disclosed to the Lenders; and
(c)the Administrative Agent and its Affiliates shall have received all fees and other amounts due and payable on or prior to the date hereof, including, to the extent invoiced, reimbursement or payment of all reasonable and documented out-of-pocket expenses (including reasonable and documented fees and expenses of counsel for the Administrative Agent) required to be reimbursed or paid by the Borrowers in connection with this Amendment and the other Loan Documents.
3.Representations and Warranties.  To induce the Administrative Agent to enter into this Amendment, each Loan Party party hereto hereby represents and warrants to the Administrative Agent and the Lenders that:
(a)This Amendment and the Amended Credit Agreement constitute its legal, valid and binding obligations, enforceable in accordance with their terms, subject to (i) the effects of bankruptcy, insolvency, moratorium, reorganization, administration, examinership, fraudulent conveyance or other similar laws affecting creditors’ rights generally, (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (iii) implied covenants of good faith and fair dealing; and
(b)As of the date hereof and immediately after giving effect to the terms of this Amendment, (i) no Default or Event of Default has occurred and is continuing and (ii) the representations and warranties of the Loan Parties set forth in the Credit Agreement are true and correct in all material respects (without duplication of any materiality standard set forth in any such representation or warranty), except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and 

warranties are true and correct in all material respects as of such date (without duplication of any materiality standard set forth in any such representation or warranty).
4.Reference to and Effect on the Credit Agreement.
(a)Upon the effectiveness hereof, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each reference in any other Loan Document to the Credit Agreement (including, without limitation, by means of words like “thereunder,” “thereof,” and words of like import), shall mean and be a reference to the Amended Credit Agreement and this Amendment and the Credit Agreement shall be read together and construed as a single instrument referred to herein as the Amended Credit Agreement.
(b)Except as expressly amended hereby, the Credit Agreement and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby reaffirmed, ratified and confirmed.
(c)The Liens and security interests in favor of the Collateral Agent for the benefit of the Secured Parties securing payment of the Obligations (and all filings with any Governmental Authority in connection therewith) are in all respects continuing and in full force and effect with respect to all Obligations, in each case in accordance with and to the extent contemplated by the terms of the respective Loan Documents.
(d)Except with respect to the subject matter hereof, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders, nor constitute a waiver of any provision of the Credit Agreement or any other documents, instruments and agreements executed and/or delivered in connection therewith.
(e)This Amendment is a Loan Document under (and as defined in) the Credit Agreement.
5.Miscellaneous.
(a)Governing Law.  This Amendment shall be construed in accordance with and governed by the law of the State of New York.
(b)Headings.  The headings of the several Sections and subsections of this Amendment are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Amendment.
(c)Counterparts.  This Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy, e-mailed .pdf or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Amendment.

[Remainder of Page Intentionally Left Blank]

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

BRIGGS & STRATTON CORPORATION, as Lead Borrower

By: /s/ Andrea L. Golvach                         
Name: Andrea L. Golvach
Title: Vice President and Treasurer

BRIGGS & STRATTON AG, as Subsidiary Borrower

By: /s/ Mark A. Schwertfeger                        
Name: Mark A. Schwertfeger
Title:  Member of the Board of Directors

JPMORGAN CHASE BANK, N.A., as Administrative Agent and as a Lender 

By: /s/ John Morrone                             
Name: John Morrone
Title: Authorized Signer

JPMORGAN CHASE BANK, N.A., LONDON BRANCH, as a Swiss Lender

By: /s/ Matthew Sparkes                         
Name: Matthew Sparkes 
Title: Authorized Officer

BANK OF AMERICA, N.A., as a Lender

By: /s/ Brian Conole                         
Name: Brian Conole 
Title: Senior VP

BANK OF MONTREAL, as a Lender

By: /s/ Brittany Malone                         
Name: Brittany Malone 
Title: Vice President

BANK OF MONTREAL LONDON BRANCH, as a Lender

By: /s/ Scott Matthews                         
Name: Scott Matthews 
Title: Managing Director, CFO International BMO Financial Group

By: /s/ William K. Smith                    
Name: William K. Smith 
Title: Head of International, BMO Capital Markets BMO Financial Group

WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender

By: /s/ Nykole Hanna                         
Name: Nykole Hanna 
Title: Authorized Signatory

WELLS FARGO BANK, NATIONAL ASSOCIATION, LONDON BRANCH, as a Lender

By: /s/ Alison Powell                         
Name: Alison Powell 
Title: Authorized Signatory

U.S. BANK NATIONAL ASSOCIATION, as a Lender

By: /s/ Lynne Ciaccia                         
Name: Lynne Ciaccia 
Title: Authorized Officer

CIBC BANK USA, as a Lender

By: /s/ Peter B. Campbell                         
Name: Peter B. Campbell
Title: Managing Director

KEYBANK NATIONAL ASSOCIATION, as a Lender

By: /s/ Paul Steiger                         
Name: Paul Steiger 
Title: Vice President

FIRST MIDWEST BANK, as a Lender

By: /s/ Thomas Brennan                         
Name: Thomas Brennan 
Title: Vice President

CONSENT AND REAFFIRMATION

Each of the undersigned hereby acknowledges receipt of a copy of the foregoing Amendment No. 2 to the Revolving Credit Agreement, dated as of September 27, 2019 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”) by and among Briggs & Stratton Corporation, a Wisconsin corporation (the “Lead Borrower”), each of the other Borrowers party thereto from time to time, the Lenders party thereto from time to time, the Issuing Banks party thereto from time to time and JPMorgan Chase Bank, N.A., as the Administrative Agent, the Collateral Agent, the Australian Security Trustee and the Swingline Lender, which Amendment No. 2 is dated as of January 29, 2020 (the “Amendment”).  Capitalized terms used in this Consent and Reaffirmation and not defined herein shall have the meanings given to them in the Credit Agreement.   Without in any way establishing a course of dealing by the Administrative Agent or any Lender, each of the undersigned consents to the Amendment and reaffirms the terms and conditions of the Guarantee Agreement and any other Loan Document executed by it and acknowledges and agrees that such agreements and each and every such Loan Document executed by the undersigned in connection with the Credit Agreement remains in full force and effect and is hereby reaffirmed, ratified and confirmed.  All references to the Credit Agreement contained in the above referenced documents shall be a reference to the Credit Agreement as so modified by the Amendment and as the same may from time to time hereafter be amended, modified or restated.

Dated:  January 29, 2020

[Signature Page Follows]

BRIGGS & STRATTON CORPORATION

By: /s/ Andrea L. Golvach                        
Name: Andrea L. Golvach
Title: Vice President and Treasurer

BRIGGS & STRATTON AG

By: /s/ Mark A Schwerfeger                        
Name: Mark A Schwerfeger
Title: Member of the Board of Directors

BRIGGS & STRATTON INTERNATIONAL AG

By: /s/ Mark A Schwerfeger                        
Name: Mark A Schwerfeger
Title: Member of the Board of Directors

BILLY GOAT INDUSTRIES, INC.

By: /s/ Andrea L. Golvach                        
Name: Andrea L. Golvach
Title: Treasurer

ALLMAND BROS., INC.

By: /s/ Andrea L. Golvach                        
Name: Andrea L. Golvach
Title: Treasurer

	
			
	Signed, sealed and delivered by Briggs & Stratton Australia Pty. Limited ACN 006 576 656 in accordance with section 127 of the Corporations Act 2001 (Cth) by:
	 
	 

	/s/ Mark A. Schwertfeger
	 
	/s/ Andrea L. Golvach

	Signature of director
	 
	Signature of director/secretary

	Mark A. Schwertfeger
	 
	Andrea L. Golvach

	Name of director (print)
	 
	Name of director/secretary (print)

	
			
	Signed, sealed and delivered by VICTA LTD ACN 000 341 640 in accordance with section 127 of the Corporations Act 2001 (Cth) by:
	 
	 

	/s/ Mark A. Schwertfeger
	 
	/s/ Harold L. Redman

	Signature of director
	 
	Signature of director/secretary

	Mark A. Schwertfeger
	 
	Harold L. Redman

	Name of director (print)
	 
	Name of director/secretary (print)SEVERANCE AGREEMENT

     

    by and between

     

    SALISBURY BANK AND TRUST COMPANY

     

    and

     

    RICHARD J. CANTELE, JR.

     

    This Severance Agreement (this “Agreement”) is made and entered into, effective as of January 1, 2020 (the “Effective Date”), by and between Salisbury Bank and Trust Company, a Connecticut-chartered commercial bank with
      its principal administrative office at 5 Bissell Street, Lakeville, CT 06039-1868 (together with its successors and assigns, the “Bank”) and Richard J. Cantele, Jr. (“Executive”).  Any reference to the “Company” hereunder shall mean Salisbury
      Bancorp, Inc. (together with its successors and assigns), the parent of the Bank that owns 100% of the Bank.

     

    RECITALS

     

    A.           Executive possesses unique and valued experience with, and essential knowledge about, financial institutions and their operation and the Connecticut banking community;

     

    B.           In order to induce Executive to remain employed with the Bank, the Bank and Executive desire to set forth in writing the severance benefits that are payable to
      Executive as a result of Executive’s termination of employment for the reasons set forth herein.

     

    NOW, THEREFORE, in consideration of the mutual covenants and obligations herein contained, it is mutually agreed between the parties hereto as follows:

     

    1.           Term. This Agreement shall continue for a term commencing on the Effective Date and ending on the second anniversary of
      the Effective Date (the “Term”).  On each annual anniversary of the Effective Date (each an “Anniversary Date”) this Agreement shall automatically renew for an additional year (each succeeding two year period shall also be referred to herein as the
      “Term”), unless at least thirty (30) days prior to such Anniversary Date, either party gives written notice of non-renewal to the other.  If such notice of non-renewal is given as permitted hereunder, the Agreement will expire at the conclusion of
      such Term. Notwithstanding any provision of this Agreement to the contrary, Executive’s employment may be terminated at any time prior to the expiration of the Term, as provided in Section 2 hereof and subject to the provisions of this Agreement,
      including, without limitation, Sections 4, 5, 6, 9, 10, 11 and 12.  Notwithstanding the foregoing, in the event that at any time during the Term of this Agreement, the Company or the Bank has entered into an agreement to effect a transaction which
      would be a Change in Control (as defined in Section 3 hereof), then the Term of this Agreement shall be automatically extended through the date that is twenty-four (24) months following the date on which the Change in Control occurs, provided,
      however, that if the Change in Control does not occur as contemplated, then the Agreement shall automatically renew on the next Anniversary Date, unless a notice of non-renewal is given by either party hereto in the manner set forth above.

     

    2.           At-Will Status. Notwithstanding any provision of this Agreement, Executive is employed at-will, such that Executive or
      the Bank may terminate Executive’s employment at any time, for any or no reason, subject to the remaining provisions of this Agreement.

     

    3.           Definitions. As used in this Agreement, the following terms shall have the meanings set forth herein.

     

    “Cause” shall mean (i) the conviction of the Executive of a felony or of any lesser criminal offense involving moral turpitude; (ii) the willful commission by the Executive of any
      act that, in the judgment of the Board will likely cause substantial economic damage to the Bank or substantial injury to the business reputation of the Bank; (iii) the commission by the Executive of an act of fraud in the performance of his duties
      on behalf of the Bank; (iv) the continuing willful failure of the Executive to perform his duties to the Bank after written notice thereof (specifying the particulars thereof in reasonable detail) and a reasonable opportunity to cure such failure are
      given to the Executive; or (v) an order of a federal or state regulatory agency or a court of competent jurisdiction requiring the termination of the Executive’s employment by the Bank.  For this purpose, no act, or failure to act, on the part of
      Executive shall be deemed “willful” unless done, or omitted to be done, by Executive not in good faith and without reasonable belief that Executive’s action or omission was in the best interests of the Bank. Without limiting the foregoing, in no
      event shall Executive be deemed to be acting in good faith or in the best interests of the Bank for purposes of the preceding sentence with respect to acts of omission or commission taken in contravention of any direction(s), rule(s) or
      requirement(s) issued, authorized, approved or ratified by the Board.

     

    
      1

      
        

    

    
    Notwithstanding the foregoing provisions, in no event shall Cause be deemed to exist unless (i) the Bank shall provide Executive with written notice making reference to this Agreement, stating that the Bank intends to
      terminate Executive for Cause within the meaning of this Agreement, and setting forth in reasonable detail the facts and circumstances allegedly constituting Cause, and (ii) the Bank affords Executive a period of two (2) weeks after issuance of such
      notice either to demonstrate, through written rebuttal, that Cause does not exist under this Section 3, or to cure the circumstances constituting such Cause; provided, however, that the determination of whether Cause exists or whether Executive has
      sufficiently cured any Cause, shall be made in the reasonable discretion of the Board, as evidenced by the affirmative vote of not less than three-fourths of the entire membership of the Board (excluding Executive) at a meeting of the Board
      (excluding Executive) called and held for such purpose (after reasonable notice is provided to Executive and Executive is given an opportunity, together with counsel, to be heard before the Board).  Nothing in this Section 3 shall prevent the Bank
      from terminating Executive for Cause prior to the issuance of the above-referenced notice or expiration of the above-referenced two (2) week rebuttal/cure period; provided however that if, upon the expiration of such two (2) week period, it is
      determined that facts or circumstances sufficient to constitute Cause did not (or, if applicable, do not) exist or has/have been cured, then such earlier termination of Executive by the Bank shall be deemed to be without Cause. Without limiting the
      foregoing, the Bank may suspend Executive, with or without pay, during the above-referenced two (2) week rebuttal/cure period, and such suspension shall not constitute either a termination of employment by the Bank under this Agreement or Good Reason
      for separation by Executive.

     

     “Change in Control” shall mean (i) a change in the ownership of the Company or Bank, (ii) a change in the effective control of the Company or Bank, or (iii) a change in the ownership of a substantial
      portion of the assets of the Company or Bank, as described below.

     

    (i) A change in the ownership of a corporation occurs on the date that any one person, or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(v)(B)), acquires ownership of stock of
      the Company or Bank that, together with stock held by such person or group, constitutes more than fifty (50) percent of the total fair market value or total voting power of the stock of such corporation.  For these purposes, a change in ownership
      will not be deemed to have occurred if no stock of the Company or Bank is outstanding.

     

    (ii) A change in the effective control of the Company or Bank occurs on the date that either (A) any one person, or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vi)(D))
      acquires (or has acquired during the twelve (12)-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company or Bank possessing thirty (30) percent or more of the total voting power of
      the stock of the Company or Bank, or (B) a majority of the members of the Company’s or Bank’s board of directors is replaced during any twelve (12)-month period by directors whose appointment or election is not endorsed by a majority of the members
      of the Company’s or Bank’s board of directors prior to the date of the appointment or election, provided that this subsection “(B)” is inapplicable where a majority shareholder of the entity that experiences the change in control is another
      corporation.

     

    (iii) A change in a substantial portion of the Company’s or Bank’s assets occurs on the date that any one person or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vii)(C))
      acquires (or has acquired during the twelve (12)-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company or Bank that have a total gross fair market value equal to or more than forty (40)
      percent of the total gross fair market value of (A) all of the assets of the Company or Bank, or (B) the value of the assets being disposed of, either of which is determined without regard to any liabilities associated with such assets.

     

    
      2

      
        

    

    For all purposes hereunder, the definition of Change in Control shall be construed to be consistent with the requirements of Treasury Regulation 1.409A-3(i)(5), except to the extent that such regulations are superseded
      by subsequent guidance.

     

    “Good Reason” shall mean any of the following circumstances if they occur without the Executive’s consent: (i) a material reduction in the Executive’s Base Salary not warranted by general across the board
      reductions due to economic necessity; (ii) a material reduction in the Executive’s incentive bonus and other benefits provided to executives generally (except due to general across the board reductions in such incentive bonuses and other benefits due
      to economic necessity); (iii) a material reduction in Executive’s authority, duties or responsibilities such that Executive no longer holds a position consistent with the authorities, duties or responsibilities held prior to such change; or (iv) the
      permanent relocation of Executive’s principal place of business to a location that is more than 35 miles from Executive’s workplace at the initial effective date of this Agreement; provided that for a termination to be deemed for Good Reason,
      Executive must give, within the ninety (90) day period commencing on the initial existence of the condition(s) constituting Good Reason, written notice of the intention to terminate for Good Reason, and, upon receipt of such notice, the Bank shall
      have a thirty (30) day period within which to cure such condition(s); and provided further that the Bank may waive such right to notice and opportunity to cure.  In no event may facts or circumstances constituting “Good Reason” arise after the
      occurrence of facts or circumstances that the Bank relies upon, in whole or in material part, in terminating Executive for Cause.

     

     4.           Effect of Involuntary Termination or Voluntary Termination for Good Reason other than on or after a Change in Control.  In
      the event of Executive’s involuntary termination of employment by the Bank for reasons other than Cause (or Executive’s death or disability) or a voluntary termination of the employment for Good Reason, in either case, other than on or after a Change
      in Control, Executive shall be entitled to the following:

     

    (a)           A severance benefit in an amount equal to two (2) times the sum of (i) Executive’s annual base salary rate in effect on the date of such termination, or, if greater, Executive’s average annual base salary
      rate for the twelve (12) month period ending on the last day of the calendar month immediately before Executive’s date of termination and (ii) Executive’s average annual cash bonus paid during or attributable to the two (2) calendar year period
      immediately preceding the date of the Executive’s termination.  Any severance benefit to which the Executive is entitled under this Section 4(a) shall be distributed in a lump sum within sixty (60) days following Executive’s “separation from service”
      (as defined in Section 6(a) below).

     

    (b)           Subject to Executive’s payment of a premium portion equal or substantially equal to the premium portion paid by executive employees of the Bank for comparable coverage, for two years following separation
      from service, Executive may continue Executive’s participation (and, if applicable, that of Executive’s beneficiaries) in the Bank’s group health plan in which Executive participated immediately prior to separation from service; provided, however,
      that this sub-section is not intended to reduce the amount of time that Executive may obtain coverage at his own expense under the provision of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) and comparable state law;
      except that Executive’s coverage for such two year period shall be counted against and deducted from the maximum COBRA period (if the applicable maximum COBRA period is 18 months, then following Executive’s coverage hereunder, Executive shall be
      entitled to no further health care coverage under the Bank’s group health plan).  Notwithstanding anything herein to the contrary, if as the result of any change in, or interpretation of, the laws applicable to the continued welfare benefits
      hereunder, such benefits are deemed illegal or subject to penalties, then the Bank shall, to the extent permitted under such laws, pay to the Executive a cash lump sum payment reasonably estimated to be equal to the amount of welfare benefits (or the
      remainder of such amount) that the Executive is no longer permitted to receive in-kind.  Such lump sum payment shall be required to be made within sixty (60) days following the Executive’s separation from service, or if later, within sixty (60) days
      following a determination that such payment would be illegal or subject the Executive or the Bank to penalties.

     

    (c)           Executive shall also be entitled to be reimbursed by the Bank for final expenses that Executive reasonably and necessarily incurred on behalf of the Bank prior to Executive’s termination of employment,
      provided that Executive submits expense reports and supporting documentation of such expenses in accordance with the Bank’s expense reimbursement policies in effect at that time.  Such reimbursement payment or payments shall be made no later than the
      time required by applicable law (or, if earlier, by Bank or Company policy, practice or rule), but in no event later than the sixtieth (60th) day following Executive’s date of the termination.

     

    
      3

      
        

    

    5.           Termination in Connection with a Change in Control.  In the event of Executive’s involuntary termination of employment
      for reasons other than Cause or a voluntary termination of employment for Good Reason occurring on or after a Change in Control, Executive shall be entitled to the following:

    

    

     (a)           A lump sum cash payment equal to three (3) times Executive’s (i) highest annual rate of base salary in effect on Executive’s
      date of termination or, if greater, Executive’s highest annual rate of base salary for the twenty-four (24) month period ending on the last day of the calendar month immediately prior to the date of such termination, and (ii) highest annual cash
      bonus paid during or attributable to any year in the three (3) year period immediately preceding the date of the Change in Control.  Such amount shall be paid to Executive within sixty (60) days following Executive’s separation from service.

     

    (b)           Life insurance coverage and non-taxable medical and dental coverage, at no cost to Executive, that is substantially comparable (and on substantially the same terms and conditions) to the coverage maintained
      by the Bank for Executive immediately prior to his date of termination.  Such life insurance and non-taxable medical and dental coverage shall be provided by the Bank to the Executive for three (3) years following Executive’s separation from service
      and subject to the same terms and conditions (except as to Executive’s requirement to pay a portion of the cost) as the benefits provided under Section 4(b).  Notwithstanding anything herein to the contrary, if as the result of any change in, or
      interpretation of, the laws applicable to the continued welfare benefits hereunder, such benefits are deemed illegal or subject to penalties, then the Bank shall, to the extent permitted under such laws, pay to the Executive a cash lump sum payment
      reasonably estimated to be equal to the amount of welfare benefits (or the remainder of such amount) that the Executive is not permitted or no longer permitted to receive in-kind.  Such lump sum payment shall be required to be within sixty (60) days
      following the Executive’s separation from service, or if later, within sixty (60) days following a determination that such payment (or remaining payments) would be illegal or subject the Executive or the Bank to penalties.

     

    (c)           Any unpaid compensation and benefits, and unused vacation, accrued through the date of Executive’s termination of employment.  Executive shall also be entitled to be reimbursed by the Bank for final
      expenses that Executive reasonably and necessarily incurred on behalf of the Bank prior to Executive’s termination of employment, provided that Executive submits expense reports and supporting documentation of such expenses in accordance with the
      Bank’s expense reimbursement policies in effect at that time.  Such reimbursement payment or payments shall be made no later than the time required by applicable law (or, if earlier, by Bank or Company policy, practice or rule), but in no event later
      than the sixtieth (60th) day following Executive’s date of the termination.

     

    (d)             Notwithstanding the foregoing, no compensation and benefits shall be payable pursuant to both Sections 4 and 5 of this Agreement.

     

    6.           Conditions of Severance Benefits; Effect on Executive’s Post-Employment Obligations.

     

     (a)           Notwithstanding the foregoing, in no event shall any compensation payable to the Executive
      pursuant to the provisions of Section 4(a), 4(b), 5(a) and (b) above that is subject to Code Section 409A of the Internal Revenue Code (“Code”) be paid to the Executive unless and until the Executive has incurred a “separation from service” as
      defined in Code Section 409A and in regulations and guidance issued thereunder, unless such payment is required by applicable law.  For purposes of this Agreement, a “separation from service” shall have occurred if the Bank and Executive reasonably
      anticipate that either no further services will be performed by Executive after his date of the termination (whether as an employee or as an independent contractor) or the level of further services performed is less than fifty (50) percent of the
      average level of bona fide services in the thirty-six (36) months immediately preceding the termination.  For all purposes hereunder, the definition of separation from service shall be interpreted consistent with Treasury Regulation Section
      1.409A-1(h)(ii).

     

    

    
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    (b)           Executive shall receive the severance benefits set forth in Section 4(a) and 4(b) hereof only if Executive (a) executes a general release, in a form acceptable to the Bank, within sixty (60) days of the
      date of the termination of the Executive’s employment in accordance with the provisions of Section 4 hereof; (b) presents satisfactory evidence to the Bank that Executive has returned all Bank property; and (c) provides the Bank with a signed,
      written resignation of Executive’s status as an officer and/or director of the Bank and/or any holding company, subsidiary or affiliate as applicable.  In the event the Bank reasonably believes that Executive has breached, or has threatened to
      breach, any provision of the Agreement, the Executive shall no longer be entitled to such benefits and further shall be required to reimburse all severance benefits, including payments under Section 4(a), previously made by the Bank. Such termination
      of benefits shall be in addition to any and all legal and equitable remedies available to the Bank, including injunctive relief.  Without limiting the foregoing, Executive acknowledges and agrees that the provisions of Sections 11, 12, 15, 17, 18,
      and 19 of this Agreement (i) are supported by adequate consideration in addition to the severance benefits provided under Section 4(a) and 4(b) and all other amounts and things of value to which Executive would be entitled if Executive did not enter
      into this Agreement, and (ii) shall be enforceable notwithstanding Executive’s failure of refusal to satisfy, in whole or in part, the conditions for the severance benefits set forth under this Section 6.  Notwithstanding the foregoing, the
      conditions set forth in this Section 6 shall not apply in the event that any compensation or benefits are payable pursuant to Section 5 of this Agreement.

     

    7.           Taxes. All payments and benefits described in this Agreement shall be subject to any and all applicable federal, state
      and local income, employment and other taxes, and the Bank will deduct from each payment to be made to Executive under this Agreement such amounts, if any, required to be deducted or withheld under applicable law.  Executive hereby acknowledges and
      agrees that the Bank makes no representations or warranties regarding the tax treatment or tax consequences of any compensation, benefits or other payments under the Agreement, or under any statute, or regulation or guidance thereunder, or under any
      successor statute, regulation and guidance thereunder.

     

    8.           Code Section 409A.   The cash severance payments under this Agreement are intended to be exempt from Section 409A of the
      Code under the “short term deferral” rule set forth in Treasury Regulation Section 1.409A-1(b)(4).  If and to the extent this Agreement provides for a deferral of compensation subject to Section 409A of the Code, it is the intent of the parties that
      this Agreement, and all payments of deferred compensation subject to Code Section 409A made hereunder, shall be in compliance with such requirements and the regulations and other guidance thereunder. Notwithstanding any other provision with respect
      to the timing of payments under Sections 4(a) or 5(a), if, at the time of Executive’s separation from service, Executive is a “specified employee” (meaning a key employee as defined in Section 416(i) of the Code without regard to paragraph 5 thereof)
      of the Bank (or a Bank affiliate), then to the extent necessary to comply with the requirements of Code Section 409A, any payments to which Executive is entitled under Sections 4(a) or 5(a) during the six (6) month period commencing on the
      Executive’s separation from service which are subject to Code Section 409A (and not otherwise exempt from its application, including, without limitation, by operation of Treasury Regulation Section 1.409A-1(n)) will be withheld until the first
      business day of the seventh (7th) month following Executive’s separation from service, at which time such withheld amount shall be paid in a lump sum distribution. The Bank and Executive agree that they will
      negotiate in good faith and jointly execute an amendment to modify this Agreement to the extent necessary to comply with the requirements of Code Section 409A, or any successor statute, regulation and guidance thereunder.

     

      9.           Limitation on Benefits.  In no
      event shall the Bank be obligated to make any payment pursuant to this Agreement that is prohibited by Section 18(k) of the Federal Deposit Insurance Act (codified at 12 U.S.C. §1828(k)), 12 C.F.R. Part 359, or any other applicable law.

     

    10.           No Mitigation. The Bank agrees that Executive is not required to use reasonable good faith efforts to seek other
      employment and to reduce any amounts payable to Executive by the Bank pursuant to this Agreement.

     

    11.           Non-Competition; Non-Solicitation; Non-Disclosure.

     

    (a)           The benefits provided to Executive under Section 4 of this Agreement are specifically conditioned on Executive’s covenant that, for a period of one (1) year following the Executive’s separation from service
      with the Bank, the Executive will not, without the written consent of the Bank, either directly or indirectly:

    

    

    (i)           solicit, offer employment to, or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any officer or employee of the Bank or
      any of its affiliates to terminate his or her employment and accept employment or become affiliated with, or provide services for compensation in any capacity whatsoever to, any business or other entity;

    

    

    
      5

      
        

    

    (ii)           become an officer, employee, consultant, director, independent contractor, agent, sole proprietor, joint venturer, greater than 5% equity-owner or stockholder, partner or trustee of any savings bank,
      savings and loan association, savings and loan holding company, credit union, bank or bank holding company, insurance company or agency, any mortgage or loan broker or any other entity that has headquarters or offices within fifteen (15) miles of the
      locations in which the Bank or its affiliates has business operations or has filed an application for regulatory approval to establish an office as of the date of Executive’s termination; provided, however, that
      this restriction shall not apply if the Executive’s employment is terminated following a Change in Control; or

     

      (iii)           solicit, provide any information, advice or recommendation or take any other action
      intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any customer of the Bank or its affiliates to terminate an existing business or commercial relationship with the Bank or its affiliates; or

     

     (b)           Executive further agrees that Executive shall not at any time or in any manner, directly or indirectly, use or disclose Confidential Information (as hereinafter defined) to any party other than the Bank
      either during or after Executive’s termination of employment or  the termination of this Agreement for any reason, except for purposes consistent with the administration and performance of Executive’s obligations hereunder, or as required by law,
      provided that written notice of any legally required disclosure shall be given to the Bank promptly prior to any such disclosure and Executive shall reasonably cooperate with the Bank to protect the confidentiality thereof pursuant to applicable law
      or regulation.  For purposes of this Agreement, the term “Confidential Information” includes any confidential or proprietary information furnished or provided by the Bank to Executive after Executive first became employed by the Bank, under this
      Agreement or otherwise (whether before or after the Execution Date) (and without regard to whether such information is conveyed directly or on the Bank’s behalf), or otherwise acquired by Executive as a consequence of Executive’s employment with the
      Bank and that is not generally known in the industry in which the Bank is engaged and that in any way relates to the products, services, purchasing, marketing, names of customers, vendors or suppliers, merchandising and selling, plans, data,
      specifications or any other confidential and proprietary information of the Bank or any affiliate.  Any Confidential Information supplied to Executive by the Bank prior to the Execution Date shall be considered in the same manner and be subject to
      the same treatment as the Confidential Information made available after the execution of this Agreement. The term “Confidential Information” does not include information (i) which was already in the public domain, (ii) which is disclosed as a matter
      of right by a third party source after the execution of this Agreement, provided such third party source is not bound by a confidentiality agreement with the Bank or (iii) which passes into the public domain by acts other than the unauthorized acts
      of Executive, whether acting alone or in concert; provided, however, that any disclosure of Confidential Information may be made by Executive if the Bank expressly consents thereto in writing prior to such disclosure.

     

    12.           Exclusive Remedy. Except as expressly set forth herein or otherwise required by law, Executive shall not be entitled to
      any compensation, benefits, or other payments from the Bank as a result of, or in connection with, Executive’ s separation from service at any time, for any reason.  The payments and benefits set forth in Sections 4 or 5 hereof shall constitute
      Executive’s sole and exclusive remedy for any claims, causes of action or demands arising under or in connection with this Agreement or its alleged breach, or the termination of Executive’s employment relationship with the Bank.  Notwithstanding the
      foregoing, the parties hereto agree that nothing contained in this Agreement limits Executive’s ability to (i) respond to lawful subpoenas in any litigation, arbitration  or administrative proceeding, (ii) provide truthful testimony in any
      litigation, arbitration or administrative proceeding, or (iii) file a charge or complaint with the Equal Employment Opportunity Commission, the Securities and Exchange Commission, the Federal Deposit Insurance Corporation, the Office of the
      Comptroller of the Currency, the Board of Governors of the Federal Reserve System or any other federal, state or local governmental agency or commission that has jurisdiction over the Bank or any parent, subsidiary or affiliate of the Bank (the
      “Government Agencies”). Executive further understands that this Agreement does not limit Executive’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any
      Government Agency, including providing documents or other information, without notice to the Bank. In addition, pursuant to the Defend Trade Secrets Act of 2016, Executive understands that an individual may not be held criminally or civilly liable
      under any federal or state trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of
      reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.  Further, an individual who files a lawsuit for retaliation by an employer for
      reporting a suspected violation of law may disclose the employer's trade secrets to the attorney and use the trade secret information in the court proceeding if the individual (y) files any document containing the trade secret under seal; and (z)
      does not disclose the trade secret, except pursuant to court order.

     

    
      6

      
        

    

    13.           Governing Law/Interpretation. Executive and the Bank agree that this Agreement and any claims arising out of or in
      connection with this Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut, without giving effect to the principles of conflicts of laws thereof.

      

    14.           Entire Agreement. This Agreement shall constitute the sole and entire agreement between the parties with respect to the
      subject matter hereof, and supersedes and cancels all prior, concurrent and/or contemporaneous arrangements, understandings, promises, offers, agreements and/or discussions, including, but not limited to, those concerning employment agreements and/or
      severance benefits, whether written or oral, by or between the parties, regarding the subject matter hereof; provided, however, that this Agreement is not intended to, and shall not, supersede, affect, limit, modify or terminate any
      written agreement or arrangement between Executive and the Bank that does not relate to the subject matter hereof.

     

    15.           Assignment. Executive acknowledges that the services to be rendered hereunder are unique and personal in
      nature.  Accordingly, Executive may not assign any rights or delegate any duties or obligations under this Agreement.  The rights and obligations of the Bank under this Agreement shall automatically be assigned to the successors and assigns of the
      Bank (including, but not limited to, any successor in the event of a Change in Control, as well as any other entity that controls, is controlled by, or is under common control with, any such successor), and shall inure to the benefit of, and be
      binding upon, such successors and assigns. This Agreement shall be binding upon Executive, as well as, Executive’s heir, executors and administrators of Executive or Executive’s estate and property.

    

    

    16.           Notices. All notices required hereunder shall be in writing and shall be delivered in person, by facsimile or by
      certified or registered mail, return receipt requested, and shall be effective upon sending if by facsimile, or upon receipt if by personal delivery, or upon the fourth (4th) business day after being sent by certified or registered mail. All notices
      shall be addressed as follows or to such other address as the parties may later provide in writing:

    

    

    if to the Bank:

     

    Salisbury Bank and Trust Company

    5 Bissell Street

    P.O. Box 1868

    Lakeville, CT 06039-1868

    ATTN: Chairperson of the Board

    

    

     and, if to Executive:

     

    at the address set in the human resources files of the Bank.

     

    17.           Severability/Reformation. If any one or more of the provisions (or any part thereof) of this Agreement shall be held
      invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions (or any part thereof) shall not in any way be affected or impaired thereby, and this Agreement shall be construed and reformed to
      the maximum extent permitted by law. The language of all parts of this Agreement shall in all cases be construed as a whole according to its fair meaning and not strictly for or against either of the parties.

     

    
      7

      
        

    

    18.           Modification. This Agreement and the rights, remedies and obligations contained in any provision hereof, may be
      modified or waived only in accordance with this Section 18. No waiver by either party of any breach by the other or any provision hereof shall be deemed to be a waiver of any later or other breach thereof or as a waiver of any other provision of this
      Agreement.  This Agreement and its terms may not be waived, changed, discharged or terminated orally or by any course of dealing between the parties, but only by a written instrument signed by the party against whom any waiver, change, discharge or
      termination is sought.  No modification or waiver by the Bank is effective without written consent of the Board.

     

    19.           Arbitration. Subject to the mutual agreement of the parties hereto at the time a dispute exists between such parties,
      any dispute, controversy or claim arising out of, or in connection with, this Agreement shall be exclusively subject to arbitration before the American Arbitration Association (“AAA”).  Such arbitration shall take place in Hartford, Connecticut,
      before a single arbitrator in accordance with AAA’s then current National Rules for the Resolution of Employment Disputes.  Judgment upon any arbitration award may be entered in any court of competent jurisdiction. All parties shall cooperate in the
      process of arbitration for the purpose of expediting discovery and completing the arbitration proceedings. Notwithstanding any provision in this Agreement to the contrary, nothing contained in this Section 19 or elsewhere in this Agreement shall in
      any way deprive the Bank of its right to obtain injunctive relief, specific performance or other legal or equitable relief in a court of competent jurisdiction for purposes of enforcing the provisions of Section 11 hereof.

     

    20.           Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an
      original, but all of which together shall constitute one and the same instrument.

     

    21.           Section Headings. The descriptive section headings herein have been inserted for convenience only and shall not be
      deemed to define, limit, or otherwise affect the construction of any provision hereof.

     

    

    

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement under seal effective as of the date and year first written above.

     

     

     

     

    	
             

          	
            SALISBURY BANK AND TRUST COMPANY

          
	
             

          	
             

          
	
             

          	
             

          
	
             

          	
            By:/s/ David B. Farrell    

          
	
            Date: January 24, 2020

          	
                 David B. Farrell

          
	
             

          	
                 Chairman of the Board

          
	
             

          	
             

          
	
             

          	
            EXECUTIVE

          
	
             

          	
             

          
	
             

          	
             

          
	
            Date: January 24, 2020

          	/s/ Richard J. Cantele, Jr.

          
	
             

          	
            Richard J. Cantele, Jr.

          

     

     

     

     

    

    

  

  8

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