Document:

ex10_27.htm

    
      

    

    Exhibit
10.27

    EMPLOYMENT
AGREEMENT

    

    This
EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into this 23rd day of
April 2007, by and between Jeffrey M. Levy ("Executive") and NBT BANCORP INC., a
Delaware corporation having its principal office in Norwich, New York
("NBTB")

    

    W I T N E
S S E T H   T H A T:

    

    WHEREAS,
Executive is serving as the Executive Vice President, Regional President,
Capital Region of NBT Bank, National Association, a national banking association
which is a wholly-owned subsidiary of NBTB (“NBT Bank”);

    

    WHEREAS,
the parties desire to enter into this Agreement, setting forth the terms and
conditions of the continued employment relationship of Executive with
NBTB;

    

    NOW,
THEREFORE, in consideration of the foregoing and the mutual promises, covenants
and agreements set forth in this Agreement, intending to be legally bound, the
parties agree as follows:

    

    1.            
Employment;
Responsibilities and Duties.

    

    (a)           NBTB
hereby agrees to continue to employ Executive and to cause NBT Bank and any
successor organization to NBT Bank to employ Executive, and Executive hereby
agrees to serve as the Executive Vice President, Regional President, Capital
Region of NBT Bank and any successor organization to NBTB or NBT Bank, as
applicable, during the Term of Employment (as such term is defined
below).  During the Term of Employment, Executive shall perform all
duties, and responsibilities, and have the authority as shall be set forth in
the bylaws of NBTB or NBT Bank or as may otherwise be determined and assigned to
his by NBTB or by
NBT Bank.

    

    (b)           Executive
shall devote his full working time and best efforts to the performance of his
responsibilities and duties hereunder. During the Term of Employment, Executive
shall not, without the prior written consent of the Chief Executive Officer of
NBTB, render services as an employee, independent contractor, or otherwise,
whether or not compensated, to any person or entity other than NBTB, NBT Bank or
their affiliates; provided that Executive may, where involvement in such
activities does not individually or in the aggregate significantly interfere
with the performance of his duties or violate the provisions of section 4
hereof, (i) render services to charitable organizations, (ii) manage his
personal investments, and (iii) with the prior permission of the Chief Executive
Officer of NBTB, hold such other directorships or part-time academic
appointments or have such other business affiliations as would otherwise be
prohibited under this section 1.

    

    2.           Term of
Employment.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    (a)           The
initial term of employment under this Agreement shall be for the period
commencing on the date hereof and ending on January 1, 2008 (the “Initial
Term”), provided, however, that on December 31, 2007, and each December 31st
thereafter, the term of the agreement shall extend itself by one additional year
(the “Extended Term”), unless NBTB has given contrary written notice to
Executive at least 90 days before any such renewal date.  The Initial
Term and all such Extended Terms are collectively referred to herein as the
“Term of Employment.”

    

    (b)           Executive’s
employment with NBTB shall not terminate prior to the expiration of the Initial
Term or any Extended Term, except as provided below:

    

    (i)            
Voluntary
Termination.  Executive may terminate this Agreement upon not
less than 90 days prior written notice delivered to NBTB, in which event
Executive shall be entitled to compensation and benefits earned or accrued
through the effective date of termination (the “Termination Date”).

    

    (ii)           Termination Upon
Death.  This Agreement shall terminate upon Executive’s death,
in which event Executive’s estate shall be entitled to compensation and benefits
earned or accrued through the date of death.

    

    (iii)           Termination Upon
Disability.  NBTB may terminate this Agreement upon Executive’s
disability.  For purposes of this Agreement, Executive’s inability to
perform his duties hereunder by reason of physical or mental illness or injury
for a period of at least 90 consecutive days or at least 120 days in any period
of 12 consecutive months (the “Disability Period”) shall constitute
disability.  The determination of disability shall be made by a
physician selected by NBTB.  During the Disability Period, Executive
shall be entitled to the Base Salary (as such term is defined below) otherwise
payable during that period, reduced by any other NBTB-provided benefits to which
Executive may be entitled, which benefits are specifically payable solely on
account of such disability (including, but not limited to, benefits provided
under any disability insurance policy or program, worker’s compensation law, or
any other benefit program or arrangement).  In the event of
termination upon Executive’s disability, Executive shall be entitled to
compensation or benefits earned or accrued through the Termination
Date.

    

    (iv)           Termination for
Cause.  NBTB may terminate Executive’s employment for Cause by
written notice to Executive.  For purposes of this Agreement, “Cause”
shall mean Executive’s: (1) personal dishonesty, incompetence (which shall be
measured against standards generally prevailing in the financial institutions
industry), willful or gross misconduct with respect to the business and affairs
of NBTB or NBT Bank, or with respect to any of their affiliates for which
Executive is assigned material responsibilities or duties; (2) willful neglect,
failure, or refusal to carry out his duties hereunder in a reasonable
manner  after a written demand for substantial performance is
delivered to Executive that specifically identifies the manner in which NBTB
believes that Executive has not substantially performed his duties and Executive
has not resumed such substantial performance within 21 days of receiving such
demand; (3) willful violation of any law, rule, or regulation (other than
traffic violations or similar offenses) or the conviction of a felony, whether
or not committed in the course of his employment with NBTB; (4) being a specific
subject of a final cease and desist order from, written agreement with, or other
order or supervisory direction from, any federal or state regulatory authority;
(5) conduct tending to bring NBTB, NBT Bank or any of their affiliates into
public disgrace or disrepute; or (6) breach of any representation or warranty in
section 6(a) hereof or of any agreement contained in section 1, 4, 5 or 6(b)
hereof.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    Notwithstanding
any other term or provision of this Agreement to the contrary, if Executive’s
employment is terminated for Cause, Executive shall forfeit all rights to
compensation and benefits otherwise provided pursuant to this Agreement;
provided, however, that the Base Salary shall be paid through the Termination
Date.

    

    (v)           Termination Without
Cause.  NBTB may terminate Executive’s employment for reasons
other than Cause upon not less than 30 days prior written notice delivered to
Executive, in which event Executive shall be entitled to the Base Salary for a
period of 12 months following the Termination Date and the compensation and
benefits earned or accrued through the Termination Date.

    

    (vi)           Termination for Good
Reason.  If Executive terminates his employment with NBTB for
Good Reason, other than following a Change of Control, such termination shall be
deemed to have been a termination by NBTB of the Executive’s employment without
Cause and Executive shall be entitled to receive all benefits and payments due
to his under such a termination.”Good Reason” shall mean, without Executive's
express written consent, reassignment of Executive to a position other than for
"Cause," or a decrease in the amount or level of Executive's salary or benefits
from the amount or level established herein.

    

    (vii)         Resignation.  Effective
upon Executive’s termination of employment for any reason, Executive hereby
resigns from any and all offices and positions related to Executive’s employment
with NBTB, NBT Bank or any affiliates thereof, and held by Executive at the time
of termination.

    

    (viii)        Regulatory
Limits.  Notwithstanding any other provision in this Agreement
NBTB may terminate or suspend this Agreement and the employment of Executive
hereunder, as if such termination were for Cause under section 2(b)(iv) hereof,
to the extent required by the applicable federal or state statue related to
banking, deposit insurance or bank or savings institution holding companies or
by regulations or orders issued by the Office of the Controller of the Currency,
the Federal Deposit Insurance Corporation or any other state or federal banking
regulatory agency having jurisdiction over NBT Bank or NBTB, and no payment
shall be required to be made to or for the benefit of Executive under this
Agreement to the extent such payment is prohibited by applicable law, regulation
or order issued by a banking agency or a court of competent jurisdiction;
provided, that it shall be NBTB’s burden to prove that any such action was so
required

    
      
         

      

      
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    (c)           Any
provision of this section 2 to the contrary notwithstanding, in the event that
the employment of Executive with NBTB is terminated in any situation described
in section 3 of the change-in-control letter agreement dated April 23, 2007
between NBTB and Executive (the "Change-in-Control Agreement") so as to entitle
Executive to a severance payment and other benefits described in section 3 of
the Change-in-Control Agreement, then Executive shall be entitled to receive the
following, and no more, under this section 2:

    

    
      	
               
      

            	
              (i)

            	
              compensation
      and benefits earned or accrued through the Termination Date;
      and

            

    

    
      	
               
      

            	
              (ii)

            	
              the
      severance payment and other benefits provided in the Change-in-Control
      Agreement.

            

    

    

    (d)           Any
provision of this Section 2 to the contrary notwithstanding, in the event that
the Employment of the Executive with NBTB is terminated in any situation
described in section 3 of the Change-in-Control Agreement so as to entitle
Executive to a severance payment and other benefits described in section 3 of
the Change-in-Control Agreement, and if as of the Termination Date the Executive
is a “key employee” for the purposes of Section 409A of the Internal Revenue
Code of 1986, as amended, and the regulations promulgated thereunder, NBTB will
delay the payment of such severance payments six (6) months from the date they
otherwise would be paid hereunder.

    

    3.            
Compensation.  For
the services to be performed by Executive for NBTB and its affiliates under this
Agreement, Executive shall be compensated in the following manner:

    

    (a)           Base
Salary.  During the Term of Employment:

    

    
      (i)          
NBTB
shall pay Executive a salary which, on an annual
basis, shall be $198,600.00 (the “Base Salary”) commencing on December 12,
2006.   Thereafter, Executive’s salary may, in the sole
discretion of NBTB, be negotiated between Executive and the Chief Executive
Officer of NBTB based on recommendations from NBTB’s Compensation and Benefits
Committee and in line with compensation for comparable positions in companies of
similar size and structure, but in no case less than $198,600.00. Adjustments to
the Base Salary, if any, shall be determined by NBTB.  The Base Salary
shall be payable in accordance with the normal payroll practices of NBTB with
respect to executive personnel as presently in effect or as they may be modified
by NBTB from time to time.

    

    

    
      (ii)          
Executive
shall be eligible to be considered for performance
bonuses commensurate with the Executive’s title and salary grade in accordance
with the compensation policies of NBTB with respect to executive personnel as
presently in effect or as they may be modified by NBTB from time to
time.

    

    

    (b)           Employee Benefit Plans or
Arrangements.  During the Term of Employment, Executive shall
be entitled to participate in all employee benefit plans of NBTB, as presently
in effect or as they may be modified by NBTB from time to time, under such terms
as may be applicable to officers of Executive's rank employed by NBTB or its
affiliates, including, without limitation, plans providing retirement benefits,
stock options, medical insurance, life insurance, disability insurance, and
accidental death or dismemberment insurance, provided that there be no
duplication of such benefits as are provided under any other provision of this
Agreement.

    
      
         

      

      
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    (c)           Stock Options and Restricted
Stock.  Each January or February annually during the Term of
Employment, Executive will be eligible to be granted a non-statutory
("non-qualified") stock option (each an "Option") to purchase the number of
shares of the common stock of NBTB, $0.01 par value, (the "NBTB Common
Stock"), pursuant
to the NBT Bancorp Inc. 1993 Stock Option Plan, as amended, or any appropriate
successor plan (the "Stock Option Plan"), computed by using a formula approved
by NBTB that is commensurate with Executive’s title and salary
grade.  The option exercise price per share of the shares subject to
each Option shall be such Fair Market Value as set forth in the Stock Option
Plan, and the terms, conditions of exercise, and vesting schedule of such Option
shall be as set forth in section 8 of the Stock Option Plan.

    

    In
addition, Executive shall be entitled to participate in the NBTB Performance
Share Plan as applicable to officers of Executive’s rank subject to the terms,
conditions and vesting schedule set forth in the NBT Bancorp Inc. Performance
Share Plan, dated May 1, 2003.

    

    
      (d)           Vacation and Sick
Leave.  During the Term of Employment, Executive
shall be entitled to paid annual vacation periods and sick leave in accordance
with the policies of NBTB as in effect as of the date hereof or as may be
modified by NBTB from time to time, as may be applicable to officers of
Executive's rank employed by NBTB or its affiliates, but in no event shall
Executive be entitled to less than four weeks of paid vacation per
year.

    

    

    (e)           Country Club
Dues.  During the Term of Employment, Executive shall be
eligible for a bank-paid membership at a country club mutually agreed upon by
the chief executive officer of NBTB and the Executive.

    

    (f)           Withholding.  All
compensation to be paid to Executive hereunder shall be subject to required
benefit deductions, tax withholding and other deductions required by
law.

    

    (g)           Expenses.  During
the Term of Employment, Executive shall be reimbursed for reasonable travel and
other expenses incurred or paid by Executive in connection with the performance
of her services under this Agreement, upon presentation of expense statements or
vouchers or such other supporting information as may from time to time be
requested, in accordance with such policies of NBTB as are in effect as of the
date hereof and as may be modified by NBTB from time to time, under such terms
as may be applicable to officers of Executive's rank employed by NBTB or its
affiliates.

     

    4.          Confidential Business
Information; Non-Competition.

    
      
         

      

      
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    (a)           Executive
acknowledges that during the term of his employment he has been and will
continue to be entrusted with, have access to and become familiar with various
trade secrets and other confidential business information of NBTB, NBT Bank
and/or their affiliates which have been developed and maintained at great effort
and expense, have been kept protected and confidential, are of great value to
NBTB, NBT Bank and/or their affiliates, and provide them with a significant
competitive advantage.  Such confidential information includes but is
not limited to procedures, methods, sales relationships developed while in the
service of NBTB, NBT Bank or their affiliates, knowledge of customers and their
requirements, marketing plans, marketing information, studies, forecasts, and
surveys, competitive analyses, mailing and marketing lists, new business
proposals, lists of vendors, consultants, and other persons who render service
or provide material to NBTB or NBT Bank or their affiliates, and compositions,
ideas, plans, and methods belonging to or related to the affairs of NBTB or NBT
Bank or their affiliates.  In this regard, NBTB asserts proprietary
rights in all of its business information and that of its affiliates except for
such information as is clearly in the public domain. Notwithstanding the
foregoing, information that would be generally known or available to persons
skilled in Executive's fields shall be considered to be "clearly in the public
domain" for the purposes of the preceding sentence.  Executive agrees
that he will hold in the strictest confidence and not disclose or divulge to any
third party, except as may be required by his duties hereunder, by law,
regulation, or order of a court or government authority, or as directed by NBTB,
nor shall he use to the detriment of NBTB, NBT Bank or their affiliates or use
in business or on behalf of any business competitive with or substantially
similar to any business of NBTB, NBT Bank or their affiliates, any confidential
business information obtained during the course of his employment by
NBTB.  The foregoing shall not be construed as restricting Executive
from disclosing such information to the employees of NBTB, NBT Bank or their
affiliates.  On or before the Termination Date, Executive shall
promptly deliver to NBTB all material containing NBTB’s confidential information
including any photocopies, extracts or summaries of it) in his possession,
custody or control.

    

    (b)           Executive
hereby agrees that from the Commencement Date until the first anniversary of the
Termination Date, Executive will not, for any reason, directly or indirectly,
either personally or on behalf of any other person or entity (whether as a
director, stockholder, owner, partner, officer, consultant, principal, employee,
agent or otherwise): (i) interfere with the relationship of NBTB or NBT Bank or
their affiliates with any of their employees, suppliers, agents, or
representatives (including, without limitation, causing or helping another
business to hire any employee of NBTB or NBT Bank or their
affiliates),  (ii)  divert or attempt to divert from NBTB,
NBT Bank or their affiliates any business in which any of them has been actively
engaged during the Term of Employment, nor interfere with the relationship of
NBTB, NBT Bank or their affiliates with any of their customers or prospective
customers, or (iii) take any action which is intended, or would reasonably be
expected, to adverely affect NBTB, NBT Bank or their affiliates, their business,
reputation, or their relationship with their customers or prospective
customers.  This paragraph 4(b) shall not, in and of itself, prohibit
Executive from engaging in the banking, trust, or financial services business in
any capacity, including that of an owner or employee.

    
      
         

      

      
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    (c)           Executive
acknowledges and agrees that irreparable injury will result to NBTB in the event
of a breach of any of the provisions of this section 4 (the "Designated
Provisions") and that NBTB will have no adequate remedy at law with respect
thereto.  Accordingly, in the event of a material breach of any
Designated Provision, and in addition to any other legal or equitable remedy
NBTB may have, NBTB shall be entitled to the entry of a preliminary and
permanent injunction (including, without limitation, specific performance) by a
court of competent jurisdiction in Chenango County, New York, or elsewhere, to
restrain the violation or breach thereof by Executive, and Executive submits to
the jurisdiction of such court in any such action.

    

    (d)           It
is the desire and intent of the parties that the provisions of this section 4
shall be enforced to the fullest extent permissible under the laws and public
policies applied in each jurisdiction in which enforcement is
sought.  Accordingly, if any particular provision of this section 4
shall be adjudicated to be invalid or unenforceable, such provision shall be
deemed amended to delete therefrom the portion thus adjudicated to be invalid or
unenforceable, such deletion to apply only with respect to the operation of such
provision in the particular jurisdiction in which such adjudication is
made.  In addition, should any court determine that the provisions of
this section 4 shall be unenforceable with respect to scope, duration, or
geographic area, such court shall be empowered to substitute, to the extent
enforceable, provisions similar hereto or other provisions so as to provide to
NBTB, to the fullest extent permitted by applicable law, the benefits intended
by this section 4.

    

    5.           Life
Insurance.  In light of the unusual abilities and experience of
Executive, NBTB, NBT Bank or their affiliates, in their discretion, may apply
for and procure as owner, and for their own benefit, insurance on the life of
Executive, in such amount and in such form as NBTB, NBT Bank or their affiliates
may choose.  NBTB shall make all payments for such insurance and shall
receive all benefits from it.  Executive shall have no interest
whatsoever in any such policy or policies but, at the request of NBTB, NBT Bank
or their affiliates, shall submit to medical examinations and supply such
information and execute such documents as may reasonably be required by the
insurance company or companies to which NBTB, NBT Bank or their affiliates has
applied for insurance.

    

    6.           Representations and
Warranties.

    

    (a)           Executive
represents and warrants to NBTB that his execution, delivery, and performance of
this Agreement will not result in or constitute a breach of or conflict with any
term, covenant, condition, or provision of any commitment, contract, or other
agreement or instrument, including, without limitation, any other employment
agreement, to which Executive is or has been a party.

    

    (b)           Executive
shall indemnify, defend, and hold harmless NBTB for, from, and against any and
all losses, claims, suits, damages, expenses, or liabilities, including court
costs and counsel fees, which NBTB has incurred or to which NBTB may become
subject, insofar as such losses, claims, suits, damages, expenses, liabilities,
costs, or fees arise out of or are based upon any failure of any representation
or warranty of Executive in section 6(a) hereof to be true and correct when
made.

    
      
         

      

      
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    7.           Notices.  All
notices, consents, waivers, or other communications which are required or
permitted hereunder shall be in writing and deemed to have been duly given if
delivered personally or by messenger, transmitted by telex or telegram, by
express courier, or sent by registered or certified mail, return receipt
requested, postage prepaid.  All communications shall be addressed to
the appropriate address of each party as follows:

    

    If to
NBTB:

    

    NBT
Bancorp Inc.

    52 South
Broad Street

    Norwich,
New York  13815

    

    Attention:    Chief
Executive Officer

    

    

    With a
required copy (which shall not constitute notice) to:

    

    Stuart G.
Stein, Esq.

    Hogan
& Hartson L.L.P.

    555
13th
Street, N.W.

    Washington,
D.C. 20004-1109

    Fax:
(202) 637-5910

    

    If to
Executive:

    

    Mr.
Jeffrey M. Levy

    
    

    

    All such
notices shall be deemed to have been given on the date delivered, transmitted,
or mailed in the manner provided above.

    

    8.            
Assignment.  Neither
party may assign this Agreement or any rights or obligations hereunder without
the consent of the other party.

    

    9.            
Governing Law,
Jurisdiction and Venue.  This Agreement shall be governed by,
construed, and enforced in accordance with the laws of the State of New York,
without giving effect to the principles of conflicts of law
thereof.  The parties hereby designate Chenango County, New York to be
the proper jurisdiction and venue for any suit or action arising out of this
Agreement.  Each of the parties consents to personal jurisdiction in
such venue for such a proceeding and agrees that it may be served with process
in any action with respect to this Agreement or the transactions contemplated
thereby by certified or registered mail, return receipt requested, or to its
registered agent for service of process in the State of New
York.  Each of the parties irrevocably and unconditionally waives and
agrees, to the fullest extent permitted by law, not to plead any objection that
it may now or hereafter have to the laying of venue or the convenience of the
forum of any action or claim with respect to this Agreement or the transactions
contemplated thereby brought in the courts aforesaid.

    
      
         

      

      
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    10.           Entire Agreement.  This
Agreement, together with the Change-in-Control Agreement, constitutes the entire
understanding between NBTB, NBT Bank and their affiliates, and Executive
relating to the subject matter hereof.  Any previous discussions,
agreements, commitments or understandings of any kind or
nature between the
parties hereto or between Executive and NBTB, NBT Bank or any of their
affiliates, whether oral or written, regarding the subject matter hereof,
including without limitation the terms and conditions of employment,
compensation, benefits, retirement, competition following employment, and the
like, are merged into and superseded by this Agreement.  Neither this
Agreement nor any provisions hereof can be modified, changed, discharged, or
terminated except by an instrument in writing signed by the party against whom
any waiver, change, discharge, or termination is sought.

    

    11.           Illegality;
Severability.

    

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

    

    (b)           If
any provision or provisions of this Agreement shall be held to be invalid,
illegal, or unenforceable for any reason whatsoever:

    

    (i)           the
validity, legality, and enforceability of the remaining provisions of this
Agreement (including, without limitation, each portion of any section of this
Agreement containing any such provision held to be invalid, illegal, or
unenforceable) shall not in any way be affected or impaired thereby;
and

    

    (ii)           to
the fullest extent possible, the provisions of this Agreement (including,
without limitation, each portion of any section of this Agreement containing any
such provisions held to be invalid, illegal, or unenforceable) shall be
construed so as to give effect to the intent manifested by the provision held
invalid, illegal, or unenforceable.

    

    12.             Arbitration.  Subject
to the right of each party to seek specific performance (which right shall not
be subject to arbitration), if a dispute arises out of or is in any way related
to this Agreement or the asserted breach thereof, such dispute shall be referred
to arbitration before the American Arbitration Association the (“AAA”) pursuant
to the AAA’s National Rules for the Resolution of Employment Disputes (the
“Arbitration Rules”).  A dispute subject to the provisions of this
section will exist if either party notifies the other party in writing that a
dispute subject to arbitration exists and states, with reasonable specificity,
the issue subject to arbitration (the "Arbitration Notice").  The
parties agree that, after the issuance of the Arbitration Notice, the parties
will try in good faith between the date of the issuance of the Arbitration
Notice and the date the dispute is set for arbitration to resolve the dispute by
mediation in accordance with the Arbitration Rules.  If the dispute is
not resolved by the date set for arbitration, then any controversy or claim
arising out of this Agreement or the asserted breach hereof shall be resolved by
binding arbitration and judgment upon any award rendered by arbitrator(s) may be
entered in a court having jurisdiction. In the event any claim or dispute
involves an amount in excess of $100,000, either party may request that the
matter be heard and resolved by a single arbitrator.  The arbitrator
shall have the same power to compel the attendance of witnesses and to order the
production of documents or other materials and to enforce discovery as could be
exercised by a United States District Court judge sitting in the Northern
District of New York.  In the event of any arbitration, each party
shall have a reasonable right to conduct discovery to the same extent permitted
by the Federal Rules of Civil Procedure, provided that discovery shall be
concluded within 90 days after the date the matter is set for
arbitration.  The arbitrator or arbitrators shall have the power to
award reasonable attorneys’ fees to the prevailing party.  Any
provisions in this Agreement to the contrary notwithstanding, this section shall
be governed by the Federal Arbitration Act and the parties have entered into
this Agreement pursuant to such Act.

    
      
         

      

      
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    13.              
Costs of
Litigation.  In
the event litigation is commenced to enforce any of the provisions hereof, or to
obtain declaratory relief in connection with any of the provisions hereof, the
prevailing party shall be entitled to recover reasonable attorneys’
fees.  In the event this Agreement is asserted in any litigation as a
defense to any liability, claim, demand, action, cause of action, or right
asserted in such litigation, the party prevailing on the issue of that defense
shall be entitled to recovery of reasonable attorneys’ fees.

    

    14.              Affiliation.  A
company will be deemed to be an "affiliate" of,
or “affiliated” NBTB or NBT Bank according to the definition of "Affiliate" set
forth in Rule 12b-2 of the General Rules and Regulations under the Securities
Exchange Act of 1934, as amended.

    

    15.              Headings.  The
section and subsection headings herein have been inserted for convenience of
reference only and shall in no way modify or restrict any of the terms or
provisions hereof.

    

    * * * *
*

    
      
         

      

      
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    IN
WITNESS WHEREOF, the parties hereto executed or caused this Agreement to be
executed as of the day and year first above written.

    

    
      	 
      	 
      	 
      
	 
      	
              NBT
      BANCORP INC.

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /S/ Martin A. Dietrich

            
	 
      	 
      	
               Martin
      A. Dietrich

            
	 
      	 
      	
               President/CEO

            

    

    

    

    
      	 
      	 	
              /S/ Jeffrey M. Levy

            
	 
      	 	
              Jeffrey
      M. Levy

            
	 
      	 	
              Executive

            

    

    

     

    11ex10_28.htm

    
      

    

    Exhibit
10.28

    April 23,
2007

    

     

    Mr.
Jeffrey M. Levy

    

    Dear Mr.
Levy:

    

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

    

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

    

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

    

    In order
to induce you to remain in the employ of the Company, this Agreement, which has
been approved by the Board, sets forth the severance compensation which the
Company agrees will be provided to you in the event your employment with the
Company is terminated subsequent to a “change in control” of the Company under
the circumstances described below.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    1.            
Agreement to Provide
Services; Right to Terminate.

    

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

    

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

    

    2.           
Term of
Agreement.  This Agreement shall commence on the date hereof
and shall continue in effect until December 31, 2009; provided, however, that
commencing December 31, 2007 and each December 31st thereafter, the remaining
term of this Agreement shall auto­mati­cally be extended for one
additional year (to a total of three years) unless at least 90 days prior to
such anniversary, ­the Company or you shall have given notice that this
Agree­ment shall not be ex­tended; and provided, however, that if a
change in control of the Company shall occur while this Agree­ment is in
effect, this Agree­ment shall auto­mati­cally be extended for 24
months from the date the change in control of the Company
occurs.  This Agreement shall terminate if you or the Compa­ny
termi­nates your employ­ment prior to a change in control of the Company
but without preju­dice to any remedy the Company may have for breach of your
obligations, if any, under section 1(b).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

    

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

    

    (b)           Termination Without Cause or
With Good Reason or Within 24 Months of Change in Control or Without Good Reason
within 12 Months of the Change.  If your employment with the
Company is terminated without Cause by the Company or with Good Reason by you
within 24 months of a change in control, or by you within 12 months of a change
in control of the Company without Good Reason, then the Company shall pay to
you, upon demand, the following amounts (net of applicable payroll
taxes):

    

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

    

    (ii)           As
severance pay, an amount equal to the product of 1.00 multiplied by the greater
of (A) the sum of your annualized salary for the calendar year in which the
change in control of the Company occurs, the maximum target bonus that could
have been paid to you for such year if all applicable targets and objectives had
been achieved, or if no formal bonus program is in effect, the largest bonus
amount paid to you during any one of the three preceding calendar years, your
income from the exercise of nonqualified options during such year, your
compensation income from any disqualifying disposition during such year of stock
acquired pursuant to the exercise of incentive stock options and other
annualized amounts that constitute taxable income to you from the Company for
such year, without reduction for salary reduction amounts excludible from income
under Section 402(e)(3) or 125 of the Internal Revenue Code of 1986, as amended
(the "Code"), or (B) your average "Compensation" (as defined below) for the
three calendar years preceding the calendar year in which the change in control
of the Company occurs.  As used in this subsection 3(b)(ii) your
"Compensation" shall mean your base salary, bonus, income from the exercise of
nonqualified options, compensation income from any disqualifying disposition of
stock acquired pursuant to the exercise of incentive stock options and any other
amounts that constitute taxable income to you from the Company, without
reduction for salary reduction amounts excludible from income under Section
402(e)(3) or 125 of the Code.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

    

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

    

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

    

    (g)           Section 409A
Compliance.  Section 409A was added to the Internal Revenue
Code by the American Jobs Creation Act of 2004 (the “Act”).  The Act
made significant changes in the tax law as it applies to executive
compensation.  One change involves delaying distributions to “key
employees” (as defined below) by a minimum of six months.  Therefore,
severance payments payable hereunder must be made in compliance with the Act or
a substantial excise tax (payable by you) would be imposed. For purposes of the
Act, a “key employee” is generally one who is an officer of the Company with
annual compensation greater than $130,000 as provided in Section 416(i) of the
Internal Revenue Code and the regulations promulgated thereunder. If you become
entitled to the severance payments provided hereunder and if you are in fact a
key employee at time payment is owed to you, the Act provides that these
payments will be subject to a 20% excise tax.  Under the Act, one of
the ways to avoid application of the excise tax to severance due a “key
employee” is to defer payment for six (6) months after separation from
employment.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Accordingly,
if you become entitled to payments hereunder and if at this time you are in fact
a “key employee” with the Company, the Company will defer commencement of your
severance payments until six (6) months after your Date of
Termination.

    

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

    

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

    

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

    

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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

    

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

    

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

     

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

    

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

    

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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

    

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

    

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

    

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

    

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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

    

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

    

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

    

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

    

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

    

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

     

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

    

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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

    

    8.           Successors; Binding
Agreement.

    

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

    

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

    

    9.           Maximization of After-Tax
Amounts.  Notwithstanding any other provision of this
Agreement, and notwithstanding any other agreement or formal or informal
compensation plan or arrangement, if you are a “disqualified individual,” as
defined in Section 280G(c) of the Internal Revenue Code of 1986, as amended
(the “Code”), your right to receive any payment or benefit under this Agreement
shall be limited to the extent that:  (i) such payment or
benefit, taking into account any other “payment in the nature of compensation”
(within the meaning of Section 280G of the Code) to you or for your benefit
(“Compensation”), would cause any payment or benefit under this Agreement to be
considered a “parachute payment” within the meaning of Section 280G(b)(2)
of the Code as then in effect (a “Parachute Payment”) and (ii) as a
result of receiving a Parachute Payment, the aggregate after-tax amount you
would receive (under this Agreement and otherwise) would be less than the
maximum after-tax amount that you could receive without causing any such payment
or benefit to be considered a Parachute Payment.  In the event that
the receipt of any such payment or benefit under this Agreement, in conjunction
with your other Compensation, would cause you to be considered to have received
a Parachute Payment that would have the effect of decreasing the after-tax
amount received by you as described in clause (ii) of the preceding
sentence, then you shall have the right, in your sole discretion, to designate
any payments or benefits under this Agreement, and any other Compensation, that
shall be reduced or eliminated so as to avoid having the payment or benefit to
you under this Agreement be deemed to be a Parachute Payment.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

    

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

    

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

    

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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

    

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

    

    
      	 
      	
              Very
      truly yours,

            
	 
      	 
      	 
      
	 
      	
              NBT
      BANCORP INC.

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	
              /S/ Martin A. Dietrich

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
               

            	
              AGREED
      TO:

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
              /S/ Jeffrey M. Levy

            
	 
      	
              Jeffrey
      M. Levy

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