Document:

EX-10.8

 Exhibit 10.8 

SETTLEMENT AGREEMENT 

This Settlement Agreement (the “Agreement”) is entered into as of May 5, 2016 by and among Jodi Hoyt (the
“Officer”), Bar Harbor Bankshares, a bank holding company (“Buyer”), Bar Harbor Bank & Trust, a wholly-owned subsidiary of Buyer (“Buyer Bank”), Lake Sunapee Bank Group, a bank holding
company (“Seller”), and Lake Sunapee, FSB, a wholly-owned subsidiary of Seller (“Seller Bank”). 

WITNESSETH: 

WHEREAS, concurrently with the execution of this Agreement, Buyer and Seller are entering into an Agreement and Plan of Merger, dated
as of May 5, 2016 (the “Merger Agreement”), and all capitalized terms not defined herein shall have the meaning set forth in the Merger Agreement; and 

WHEREAS, Buyer, Buyer Bank, Seller, Seller Bank, and the Officer desire to enter into this Agreement, which shall supersede the Change
of Control Agreement by and among New Hampshire Thrift Bancshares, Inc. (Seller’s former name), Seller Bank and the Officer, dated March 14, 2012 (the “Change of Control Agreement”), effective immediately prior to the
Effective Time of the Merger, and in lieu of any rights and payments under the Change of Control Agreement, the Executive shall be entitled to the rights and payments set forth herein and shall terminate employment with Seller and Seller Bank (which
for the avoidance of doubt, the parties agree shall be the rights and payments to which the Executive is entitled in the event of the Executive’s termination of employment without “Cause” or for “Good Reason” following a
“Change of Control” or “Pending Change of Control” (as such terms are defined in the Change of Control Agreement) as contemplated by Sections 6 and 7 of the Change of Control Agreement). 

NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration the receipt and sufficiency of which is
hereby acknowledged, the Officer, Buyer, Buyer Bank, Seller, and Seller Bank agree as follows: 
 1. Settlement Amount. 

1.1 Change of Control Agreement Amount. On the later of the Closing Date or the earliest payment date permitted under Section 2,
provided the Officer has remained employed with the Seller and Seller Bank to and including the Closing Date and has executed the release attached as Exhibit A hereto at least eight days prior to the Closing Date (and any revocation period
has elapsed), Seller shall, or shall cause an affiliate to pay to the Officer lump-sum cash amount equal to the total of $167,800, in full satisfaction of the payment obligations of Seller and Seller Bank under the Change of Control Agreement, less
applicable tax withholdings (the “Change of Control Agreement Amount”). The Change of Control Agreement shall be subject to further reduction pursuant to Section 1.2 hereof as may be needed. 

For the avoidance of doubt, the payment of the Change of Control Agreement Amount under this Agreement shall not release Buyer, Buyer Bank,
Seller, or Seller Bank, as applicable, from any of the following obligations: (a) obligations to pay to the Officer accrued but unpaid wages, and make payments for accrued but unused vacation, earned up to the

 
Effective Time of the Merger to the extent required by applicable law; (b) the payment of any of the Officer’s vested benefits under the tax-qualified and non-qualified plans of Seller
or Seller Bank, including any benefits that become vested as a result of the Merger; (c) obligations regarding accelerated vesting of equity awards, if any, under any equity awards granted by Seller Bank to the Officer and outstanding
immediately prior to the Effective Time; (d) the payment of any of the Officer’s vested benefits under any salary continuation agreement between the Executive and the Seller or Seller Bank; (e) any change in control protection or
change in control rights in any bank-owned life insurance policy held by Seller Bank on the life of the Executive; (f) the payment of the Merger Consideration with respect to the Officer’s common stock of Seller Bank as contemplated by
Section 2.01 of the Merger Agreement; or (g) rights to indemnification under applicable corporate law, the organizational documents of Seller or Seller Bank, as an insured under any director’s and officer’s liability insurance
policy new or previously in force, or pursuant to Section 5.12 of the Merger Agreement. 
 1.2 Section 280G Cut-Back.
Notwithstanding anything in this Agreement to the contrary, if the Change of Control Agreement Amount provided for in this Agreement, together with any other payments which the Officer has the right to receive from Buyer, Buyer Bank, Seller, Seller
Bank, or any corporation which is a member of an “affiliated group” (as defined in Code Section 1504(a), without regard to Code Section 1504(b)) of which Buyer, Buyer Bank, Seller, or Seller Bank is a member, would constitute an
“excess parachute payment” (as defined in Code Section 280G(b)(2)), payments pursuant to this Agreement shall be reduced to the extent necessary to ensure that no portion of such payments will be subject to the excise tax imposed by
Code Section 4999. It is hereby understood that the Change of Control Agreement Amount as determined under this Section 1.2 will be subject to further adjustment upon the consummation of the Merger. Any determination required under
this Section 1.2 shall be made by Seller and Buyer and their respective tax advisors, whose determination shall be conclusive and binding upon the Officer, Seller, and Seller Bank, and it is hereby understood that such determination will
follow the same methodology for calculating the Code Section 280G limitation in order to avoid an “excess parachute payment” as provided in Seller Bank Disclosure Schedule 3.18(f) to the Merger Agreement. 

1.3 No Further Adjustment. The parties hereby agree that the Change of Control Agreement Amount as determined in the manner provided
under Section 1.1 and Section 1.2 hereof is final and binding on all parties and shall not otherwise be subject to further adjustment. 

1.4 Complete Satisfaction. In consideration of the payment of the Change of Control Agreement Amount, the employment by Buyer and/or
Buyer Bank following the Closing Date and the other provisions of this Agreement, the Officer, Buyer, Buyer Bank, Seller, and Seller Bank hereby agree that effective immediately following the Effective Time of the Merger, the Officer agrees that the
full payment of the Change of Control Agreement Amount, as determined in accordance Section 1.1 and Section 1.2, shall be in complete satisfaction of all rights to payments due to Officer under the Change of Control
Agreement. 
 2. Code Section 409A Compliance. The intent of the parties is that payments under this Agreement either be exempt
from or comply with Code Section 409A and the Treasury Regulations and guidance promulgated thereunder and, accordingly, to the maximum extent 

 
permitted, this Agreement shall be interpreted to be in compliance therewith. To that end, Officer, Buyer, Seller, and Seller Bank agree that the payment described in Section 1 is
intended to be excepted from compliance with Code Section 409A as a short-term deferral pursuant to Treasury Regulation Section 1.409A-1(b)(4). None of Buyer, Buyer Bank, Seller, or Seller Bank make any representations or warranties that
the payments provided under this Agreement comply with, or are exempt from, Section 409A, and in no event shall any of Buyer, Buyer Bank, Seller, or Seller Bank be liable for any portion of any taxes, penalties, interest, or other expenses that
may be incurred by Officer on account of non-compliance with Section 409A. 
 3. General. 

3.1 Heirs, Successors, and Assigns. The terms of this Agreement shall be binding upon the parties hereto and their respective heirs,
successors, assigns and legal representatives. 
 3.2 Final Agreement. This Agreement represents the entire understanding of the
parties with respect to the subject matter hereof and supersedes all prior understandings, written or oral, except as set forth in a separate written employment agreement by and between Buyer, Buyer Bank and the Executive. The terms of this
Agreement may be changed, modified, or discharged only by an instrument in writing signed by each of the parties hereto. 
 3.3
Withholdings. Seller, Seller Bank, Buyer, and Buyer Bank may withhold from any amounts payable under this Agreement such federal, state, or local taxes as may be required to be withheld pursuant to applicable law or regulation. 

3.4 Governing Law. This Agreement shall be construed, enforced, and interpreted in accordance with and governed by the laws of the State
of New Hampshire, without reference to its principles of conflicts of law, except to the extent that federal law shall be deemed to preempt such state laws. 

3.5 Regulatory Limitations. Notwithstanding any other provision of this Agreement, neither Buyer, Buyer Bank, Seller, nor Seller Bank
shall be obligated to make, and Officer shall have no right to receive, any payment under this Agreement which would violate any law, regulation, or regulatory order applicable to Buyer, Buyer Bank, Seller, or Seller Bank, as applicable, at the time
such payment is due, including, without limitation, Section 1828(k)(1) of Title 12 of the United States Code and any regulation or order thereunder of the Federal Deposit Insurance Corporation. 

3.6 Voluntary Action and Waiver. The Officer acknowledges that by her free and voluntary act of signing below, the Officer agrees to all
of the terms of this Agreement and intends to be legally bound thereby. The Officer acknowledges that she has been advised to consult with an attorney prior to executing this Agreement. 

3.7 Counterparts. This Agreement may be executed in one 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. 

 4. Effectiveness. Notwithstanding anything to the contrary contained herein, this
Agreement shall be subject to consummation of the Merger in accordance with the terms of the Merger Agreement, as the same may be amended by the parties thereto in accordance with its terms. In the event the Merger Agreement is terminated for any
reason or the Merger does not occur, this Agreement shall be deemed null and void. 
 [SIGNATURE PAGE FOLLOWS] 

 IN WITNESS WHEREOF, Buyer, Buyer Bank, Seller, and Seller Bank have each caused this
Agreement to be executed by their duly authorized officers, and the Executive has signed this Agreement, effective as of the date first above written. 

 

			
	EXECUTIVE:
	
	 /s/ Jodi Hoyt

	Jodi Hoyt
	
	LAKE SUNAPEE BANK GROUP
		
	By:	 	 /s/ Stephen R. Theroux

	Name:	 	Stephen R. Theroux
	Title:	 	President and Chief Executive Officer
	
	LAKE SUNAPEE BANK, FSB
		
	By:	 	 /s/ Stephen R. Theroux

	Name:	 	Stephen R. Theroux
	Title:	 	President and Chief Executive Officer
	
	BAR HARBOR BANKSHARES
		
	By:	 	 /s/ Curtis C. Simard

	Name:	 	Curtis C. Simard
	Title:	 	President and Chief Executive Officer
	
	BAR HARBOR BANK & TRUST
		
	By:	 	 /s/ Curtis C. Simard

	Name:	 	Curtis C. Simard
	Title:	 	President and Chief Executive Officer

 [SIGNATURE PAGE TO THE HOYT SETTLEMENT AGREEMENT] 

 EXHIBIT A 

RELEASE OF CLAIMS 
 I, Jodi Hoyt,
of [City], [County], New Hampshire, (hereinafter, the “Employee”), in consideration of the Change of Control Amount as described below, on behalf of himself and his heirs and assigns, hereby irrevocably and unconditionally releases and
forever discharges, individually and collectively, Bar Harbor Bankshares, a bank holding company (“Buyer”), Bar Harbor Bank & Trust, a wholly-owned subsidiary of Buyer (“Buyer Bank”), Lake Sunapee Bank
Group, a bank holding company (“Seller”), and Lake Sunapee, FSB, a wholly-owned subsidiary of Seller (“Seller Bank”), their affiliated companies, and each of their respective officers, directors, employees,
shareholders, representatives, parent companies, subsidiaries, predecessors, successors, assigns, attorneys and all persons acting by, through or in concert with them (collectively, the “Released Parties”), of and from any and all charges,
claims, complaints, demands, liabilities, causes of action, losses, costs or expenses of any kind whatsoever (including related attorneys’ fees and costs), known or unknown, suspected or unsuspected, that Employee may now have or has ever had
against the Released Parties by reason of any act, omission, transaction, or event occurring up to and including the date of the signing of this Agreement. 

This waiver, release and discharge includes without limitation, claims related to any wrongful or unlawful discharge, discipline or retaliation, whether
express or implied, any promotions or demotions, compensation, the Seller or Seller Bank’s benefit plan(s) and the management thereof, defamation, slander, libel, invasion of privacy, misrepresentation, fraud, infliction of emotional distress,
stress, breach of any covenant of good faith and fair dealing, and any other claims relating to the Employee’s employment with the Seller or Seller Bank and the termination thereof. This waiver, release and discharge further applies but is not
limited to any claims based on Title VII of the Civil Rights Act of 1964, the Post Civil War Civil Rights Act (41 U.S.C. ss. 1981—88), the Civil Rights Act of 1991, the Equal Pay Act, the Age Discrimination Employment Act, the Older
Workers’ Benefit Protection Act, the Rehabilitation Act of 1973, the Americans with Disabilities Act, the Vietnam Era Veterans’ Readjustment Act, the Fair Labor Standards Act, the Workers Adjustment and Retraining Notification Act,
Executive Order 11246, the Employee Retirement Income Security Act of 1974, the Family and Medical Leave Act, the New Hampshire Protective Legislation Law, the New Hampshire Unemployment Compensation Law, the New Hampshire Uniform Trade Secrets Act,
the New Hampshire Whistleblowers’ Protection Act, the New Hampshire Minimum Wage Act, the New Hampshire Safety and Health of Employees Law, and the New Hampshire Law Against Discrimination (all as they may be amended), and any other applicable
federal, state or local laws, ordinances and regulations including those relating to discrimination to the extent permitted by law; provided, however, that, notwithstanding anything in this Release of Claims to the contrary, this Release of Claims
does not apply to any of the items described in the second paragraph of Section 1.1 of the Settlement Agreement between the Buyer, Buyer Bank, Seller, Seller Bank and the Employee, dated May 5, 2016. Employee expressly waives all claims,
including those which she does not know or suspect to exist in his favor as of the date of this Agreement against the Released Parties. As used herein, the Employee understand the word “claims” to include all actions, claims, and
grievances, whether actual or potential, known or unknown, and specifically but not exclusively including all claims against the Seller or Seller Bank or otherwise arising from Employee’s 

 
employment with the Seller Bank, the termination thereof or any other conduct occurring on or prior to the date the Employee signs this Release of Claims. All such claims are forever barred by
this Release of Claims whether they arise in contract or tort or under a statute or any other law. 
 CHANGE OF CONTROL AGREEMENT AMOUNT. In return
for Employee’s execution of and adherence to this Release of Claims, the Seller Bank shall pay the Employee the Change of Control Agreement Amount, as set forth in the Settlement Agreement between the Buyer, Buyer Bank, Seller, and Seller Bank
and the Employee, dated May 5, 2016, in the total amount of             Dollars ($            )]. Payment of the Change of
Control Agreement Amount shall be made in a lump sum, subject to usual and customary deductions required by law and Seller Bank policy. 
 CONFIDENTIAL
TERMS. Employee and the Buyer, Buyer Bank, Seller, and Seller Bank agree that each will keep the contents of this Release of Claims (including its existence and the terms and provisions hereof) and the negotiations leading to it completely
confidential, that neither will hereafter publish or disclose any information concerning such matters to anyone, and that each shall take every reasonable precaution to prevent the direct or indirect disclosure of such information to third parties,
provided that the foregoing provisions shall not be construed to prevent Employee from disclosing such matters to his accountant or to prevent the Buyer, Buyer Bank, Seller, and Seller Bank from disclosing such matters to its accountants, and
provided further that Employee may also make such disclosures as are finally compelled by law provided Employee gives the Buyer, Buyer Bank, Seller, and Seller Bank immediate notice of such legal process in order that the Buyer, Buyer Bank, Seller,
and Seller Bank shall have the opportunity to object to the disclosure of such information. 
 INJUNCTIVE RELIEF. Employee acknowledges and
recognizes that a violation of this Release of Claims and its covenants will cause irreparable damage to the Buyer, Buyer Bank, Seller, and Seller Bank and the Buyer, Buyer Bank, Seller, and Seller Bank will have no adequate remedy at law for such
violation. Accordingly, Employee agrees that the Buyer, Buyer Bank, Seller, and Seller Bank will be entitled, as a matter of right, to an injunction from any court of competent jurisdiction restraining any further violation of this Release of Claims
or the terms and conditions provided herein. This right to injunctive relief will be cumulative and in addition to whatever remedies the parties may otherwise have at law. 

CONSIDERATION AND REVOCATION PERIOD. I acknowledge that I am hereby advised to consult with an attorney before signing this Release of Claims. I
further understand that I may consider this Release of Claims for up to forty-five (45) days before deciding whether to sign it. In addition, I acknowledge that at the commencement of the forty-five (45) day period referenced herein, I was
provided with the class, unit or group of individuals considered for the Release of Claims program, the employees eligible and selected for the Release of Claims program, the job title and ages of all individuals selected for the program and the
ages of all individuals in the same job classification or organizational unit who are not selected for the program. A copy of the lists and information referenced herein are attached as Addendum A. If I signed this Release of Claims before the
expiration of that forty-five (45) day period, I acknowledge that such decision was entirely voluntary. I understand that if I do not sign and 

 
return this Release of Claims to the Seller Bank by the end of that forty-five (45) day period, the Change of Control Amount described above will expire. I understand that for a period of
seven (7) days after I execute this Release of Claims, I have the right to revoke it by a written notice to be received by the Seller Bank by the end of that period. I also understand that this Release of Claims shall not be effective or
enforceable until the expiration of that seven (7) day period. I further represent and agree that I have carefully read and fully understand all of the provisions of this Release of Claims and that I am voluntarily agreeing to those provisions.
I acknowledge that I have not been induced to sign this Release of Claims by any representatives of any released party other than the Change of Control Agreement Amount as stated above. 

Employee understands and agrees that Employee has carefully read and fully understands all of the provisions of this Agreement and knowingly and voluntarily
agrees to all of the terms set forth in this Release of Claims. Employee knowingly and voluntarily intends to be legally bound by the same. 
 Signed as a
sealed instrument this                     , 20    . 

 

	
	  
 Jodi Hoyt

 THE STATE OF NEW HAMPSHIRE 

 

			
	[                    ], ss.	  	                    , 20    

 Before me, the undersigned notary public, personally appeared Jodi Hoyt, personally known, to be the person
whose name is signed on the preceding document, and acknowledged to me that she signed it voluntarily for its stated purpose. 
  

	
	  

	
	                                      
                          , Notary Public

 ADDENDUM A 

 

	1.	The class, unit, or group of individuals considered or eligible for the Release of Claims program, are the executive employees of the Seller Bank. 

 

	2.	All persons who are being offered consideration under a waiver Agreement must sign the Agreement and return it to the Company within 45-days after receiving it. Once the employee has signed the waiver Agreement he or
she has seven days to revoke the Agreement. 

  

	3.	Set forth below is a listing of the ages and job titles of all employees who were selected for this release program, as well as a listing of the ages and job titles of all employees who were not selected for this
release program. 

 EMPLOYEES SELECTED FOR THE
RELEASE PROGRAM 
  

			
	 JOB TITLE
	 	 AGE

EMPLOYEES NOT SELECTED FOR THE RELEASE
PROGRAM 
  

			
	 JOB TITLE
	 	 AGEEX-10.2

 Exhibit 10.2 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made this 5th day of May, 2016, by and between BAR HARBOR
BANKSHARES, a Maine corporation with its headquarters located in Bar Harbor, Maine (the “Company”), BAR HARBOR BANK & TRUST, a wholly-owned subsidiary of the Company (the “Bank”) (together, the
“Employer”), and WILLIAM J. MCIVER, residing at the address on file with the Employer (the “Executive”). 

W I T N E S S E T H: 
 WHEREAS,
the Employer desires to employ the Executive, and the Executive desires to accept such employment upon the terms and conditions set forth herein, including, without limitation, the restrictive covenants in Sections 10 and 11 herein. 

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged by the parties hereto, the parties agree as follows: 
 1. DEFINITIONS. 

1.1. “Cause” shall mean solely the Executive’s conviction by a court of competent jurisdiction of a felony involving
dishonesty or fraud on the part of the Executive in his relationship with the Employer. 
 1.2. “Code” shall mean the
Internal Revenue Code of 1986, as amended, together with the rules and regulations promulgated thereunder. 
 1.3. “Confidential
Information” shall mean any and all information and compilations of information, in whatever form or medium (including any copies thereof), relating to any part of the business of the Company, the Bank, or any of their subsidiaries or
affiliates, or the business of their customers, provided to the Executive, or which the Executive obtained or compiled or had obtained or compiled on his behalf, which information or compilations of information are not a matter of public record or
generally known or available to the public, including, without limitation, but subject to the foregoing, the following: 
  

	 	1.3.1.	Financial information regarding the Company, the Bank, or any of their subsidiaries or affiliates; 

  

	 	1.3.2.	Personnel data, including compensation arrangements relating to the Executive or any other employees of the Company, the Bank, or any of their subsidiaries or affiliates; 

	 	1.3.3.	Internal plans, practices, and procedures of the Company, the Bank, or any of their subsidiaries or affiliates; 

  

	 	1.3.4.	The names, portfolio information, investment strategies, requirements, lending or deposit information, or any similar information of any customers, clients, or prospects of the Company, the Bank, or any of their
subsidiaries or affiliates; 

  

	 	1.3.5.	Business methods and marketing strategies of the Company, the Bank, or any of their subsidiaries or affiliates; 

  

	 	1.3.6.	Any other information expressly identified to Executive as confidential by the officers and directors of the Company, the Bank, or any of their subsidiaries or affiliates; and 

 

	 	1.3.7.	The terms and conditions of this Agreement and any documents or instruments executed in connection herewith that are not of public record. 

1.4. “Disability” shall mean a condition: (a) which causes the Executive to be unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which can be expected to last for a continuous period of not less than twelve (12) months; or (b) which
results in his receiving, by reason of any medically determinable physical or mental impairment which can be expected to result in death or which can be expected to last for a continuous period of not less than twelve (12) months, income
replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Employer. Disability shall be deemed to exist only when the disability has been certified to the Board of Directors
of the Company by a licensed physician approved by the Board of Directors of the Company. 
  

	 	1.5.	“Effective Date” shall mean the Closing Date, as such term is defined in the Agreement and Plan of Merger, dated as of May 5, 2016, by and between the Company and Lake Sunapee Bank Group.

  

	 	1.6.	“Good Reason” shall mean the occurrence of one or more of the following events without the consent of the Executive: 

 

	 	1.6.1.	A material diminution in the Executive’s Base Compensation; 

  
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	 	1.6.2.	A material diminution or adverse change in the Executive’s authority, duties, or responsibilities; 

  

	 	1.6.3.	A material diminution in the budget over which the Executive retains authority; 

  

	 	1.6.4.	A material change in the geographic location at which the Executive must perform a substantial portion of his services, which for purposes of this Agreement means a location that is more than one hundred
(100) miles from Newport, New Hampshire; 

  

	 	1.6.5.	Any other action or inaction that constitutes a material breach by the Employer of the Agreement or any other agreement under which the Executive provides services to the Employer or Employer provides compensation or
benefits to Executive; or 

  

	 	1.6.6.	If Employer delivers a Notice of Termination for Cause pursuant to Section 7.1 and it is determined by an arbitrator pursuant to Section 13.4 that grounds for termination for Cause did not in fact exist.

 1.7. “Notice of Termination” shall mean the written communication provided to the other party in the event
of the Executive’s termination of employment (i) by the Employer for Cause or on account of the Executive’s Disability or (ii) by the Executive for Good Reason. A Notice of Termination must indicate the specific provisions in
this Agreement upon which the applicable party relies as the basis for the Executive’s termination of employment and must also set forth in reasonable detail the facts and circumstances claimed to provide the basis for such termination of
employment under the provisions so indicated. 
 1.8. “Restrictive Period” shall mean the period commencing on the Effective
Date and terminating on the one (1)-year anniversary of the Executive’s termination of employment with the Company, the Bank, and all of their subsidiaries and affiliates, regardless of reason and whether or not pursuant to this Agreement. 

2. EMPLOYMENT. As of the Effective Date, the Employer employs the Executive, and the Executive accepts employment by the Employer, as the
Executive Vice President, Regional President—New Hampshire and Vermont Markets of the Employer on the terms and conditions specified herein. 

  
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 3. TERM OF EMPLOYMENT. 

3.1. Term. The Executive’s employment shall be for a term of commencing on the Effective Date and ending on May 31, 2019 (the
“Term”), unless terminated sooner pursuant to this Agreement. 
 3.2. Expiration. Upon expiration of this Agreement,
the Executive’s employment with the Employer shall cease, and this Agreement shall terminate without further obligations to the Executive, except as provided under Section 8.1. 

4. RESPONSIBILITIES AND OTHER ACTIVITIES. 

The Executive shall be employed as the Executive Vice President, Regional President—New Hampshire and Vermont Markets of the Employer as
of the Effective Date. In such roles, the Executive shall undertake the overall management, responsibilities, and duties related to these positions as defined by the Chief Executive Officer of the Company or of the Bank, as applicable, and
summarized in the job description attached hereto as Exhibit A. The Executive shall faithfully perform the duties of his positions as described herein; shall devote substantially all of his business time and energies to the business and
affairs of the Employer; and shall use his best efforts, skills, and abilities to promote the Employer’s interests. The Executive may not engage in any business activities or render any services of a business, commercial, or professional nature
(whether or not for compensation) that would adversely affect the Executive’s performance of his responsibilities and duties hereunder or conflict with the business of the Employer for the benefit of any person or entity, unless the Executive
receives the prior written consent of the Employer. 
 5. COMPENSATION. 

5.1. Base Compensation. The Employer shall pay the Executive an annual base salary of Two Hundred and Ninety Five Thousand Dollars and
Zero Cents Dollars ($295,000) (“Base Compensation”). The Base Compensation shall be paid in substantially equal installments in accordance with the Employer’s compensation policies and procedures on the payroll dates
established by the Employer for its senior executive officers. The Base Compensation shall be reviewed annually by the Compensation Committee of the Company’s Board of Directors and may be adjusted in the Company’s sole discretion,
provided that the Base Compensation may not be adjusted downwards during the initial Term. 
 5.2. Other Compensation. 

  
 4 

	 	5.2.1.	The Executive shall be a participant in the Company’s Annual Incentive Plan, in the form attached hereto as Exhibits B and B(a) as may be amended from time to time in the Company’s sole discretion, with
his award, if any, for the calendar year of the Effective Date to be prorated from the Effective Date. 

  

	 	5.2.2.	The Executive shall be a participant in the Company’s Long Term Incentive Plan, in the form attached hereto as Exhibits C and C(a), as may be amended from time to time in the Company’s sole discretion.

  

	 	5.2.3.	The Executive shall be eligible to participate in any performance compensation plans agreed upon by the parties during the Term of this Agreement in concert with the Employer’s evolving goals and objectives.
Notwithstanding any provision herein to the contrary, all incentive compensation shall be provided consistent with the Employer’s risk-management policies and the requirements of all applicable laws, including without limitation any rules
adopted and applicable to the Executive under Section 956 of the Dodd-Frank Act. 

 6. OTHER BENEFITS. 

6.1. Benefits. The Executive shall be eligible to participate in such medical, dental, disability, retirement, life insurance, and other
employee benefits on the same basis as may be provided to other similarly-situated employees of the Employer. As to all other benefits to which the Executive may be entitled in parity with all other employees, such benefits may be created, changed,
or terminated from time to time in the Employer’s sole discretion. 
 6.2. Vacation. The Executive shall be entitled to
reasonable paid vacations and sick leave benefits consistent with the Employer’s vacation and sick leave policies. 
 6.3.
Reimbursements. The Employer shall reimburse the Executive for all ordinary and necessary business expenses described in Code Section 62(a)(2)(A) which are incurred by the Executive in the performance of his duties hereunder and which
are subject to reimbursement in accordance with the Employer’s policies; provided, however, that: (i) such expenses shall be reimbursed no later than the end of the calendar year following the calendar year in which the expenses were
incurred, with the expectation that such amounts shall be reimbursed by the end of the calendar month following the year in which the expenses were incurred; (ii) the amount of such expenses eligible for reimbursement in one calendar year
cannot affect the amount of such expenses eligible for reimbursement in another calendar year; and (iii) the right to reimbursement is not subject to liquidation or exchange for another benefit. 

  
 5 

 7. TERMINATION. 

This Agreement may terminate prior to the expiration of the Term in accordance with this Section 7. 

7.1. By the Employer For Cause. The Employer may elect to terminate this Agreement and to terminate the Executive’s employment at
any time for Cause. Such termination shall be effective immediately upon Notice of Termination to the Executive. If the Employer terminates the Executive’s employment for Cause during the Term, this Agreement shall terminate without further
obligations to the Executive, except as provided under Section 8.2. 
 7.2. By the Employer Without Cause. The Employer may elect
to terminate this Agreement and to terminate the Executive’s employment at any time by giving the Executive thirty (30) days’ prior written notice of his termination of employment. The Executive’s termination of employment shall
occur on the date specified in such written notice. If the Employer terminates the Executive’s employment without Cause during the Term, this Agreement shall terminate without further obligations to the Executive, except as provided under
Section 8.3. 
 7.3. By the Executive without Good Reason. The Executive may elect to terminate this Agreement and voluntarily to
resign his employment at any time for any reason by giving the Employer not less than thirty (30) days’ prior written notice of his termination of employment. The Executive’s termination of employment shall occur on the date specified
in such written notice, unless the Employer elects to terminate the Executive’s employment as of a date prior thereto. If the Executive terminates this Agreement pursuant to this Section 7.3 during the Term, this Agreement shall terminate
without further obligations to the Executive, except as provided under Section 8.2. 
 7.4. By the Executive for Good Reason. The
Executive may elect to terminate this Agreement and his employment for Good Reason within the two (2)-year period following the initial existence of the condition or conditions giving rise to Good Reason. Before the Executive may terminate this
Agreement for Good Reason, the Executive must provide the Employer with a Notice of Termination describing the existence of the condition or conditions giving rise to Good Reason no later than ninety (90) days after the date of the initial
occurrence of such condition or conditions, and the Employer must have failed to remedy such condition or conditions within the thirty (30)-day period following such Notice of Termination. If the Executive terminates this Agreement for Good Reason
during the Term, this Agreement shall terminate without further obligations to the Executive, except as provided under Section 8.3. 

  
 6 

 7.5. Death. The Executive’s employment shall terminate on account of the
Executive’s death. If the Executive’s employment is terminated on account of the Executive’s death during the Term, this Agreement shall terminate without further obligations to the Executive’s estate or other legal
representatives under this Agreement, except as provided under Section 8.4. 
 7.6. Disability. The Employer may elect to
terminate this Agreement and to terminate the Executive’s employment on account of the Executive’s Disability. Such termination shall be effective immediately upon Notice of Termination to the Executive. If the Executive’s employment
is terminated on account of the Executive’s Disability during the Term, this Agreement shall terminate without further obligations to the Executive, except as provided under Section 8.4. 

8. PAYMENTS TO EXECUTIVE UPON TERMINATION. 

8.1. Generally. Regardless of the reason for any termination of this Agreement and subject to this Section 8, the Executive (or the
Executive’s estate or other legal representatives if the Agreement terminates on account of the Executive’s death) shall be entitled to receive (together, “Accrued Benefits”): 

 

	 	8.1.1.	Payment of the Executive’s earned but unpaid Base Compensation (including, without limitation, all items which constitute wages under applicable law) as of the effective date of the Executive’s termination of
employment, with such payment to be made in accordance with the Employer’s compensation policies and procedures but in no event later than the date required by applicable law; 

 

	 	8.1.2.	Payment of the Executive’s earned but unused vacation time as of the effective date of the Executive’s termination of employment, with such payment to be made in accordance with the Employer’s vacation
pay policy; and 

  

	 	8.1.3.	All rights and benefits (if any) to which the Executive is entitled due to his termination of employment as required independent of this Agreement by the terms of any employee benefit plans and programs of the Company
or of the Bank in existence as of the date of the Executive’s termination of employment, such as The Bar Harbor Bankshares and Subsidiaries Equity Incentive Plan of 2015, the 2013 Annual Incentive Plan, the Long-Term Executive Incentive Plan or
any other Company or Bank incentive plan, with such rights and benefits to be determined in accordance with the terms of such plans and programs. 

  
 7 

 8.2. Termination by the Employer for Cause or without Good Reason. If the Employer
terminates the Executive’s employment for Cause pursuant to Section 7.1 or the Executive terminates his employment without Good Reason pursuant to Section 7.3, the Executive shall be entitled to receive payment of his Accrued
Benefits. 
 8.3. Termination by the Employer without Cause or by the Executive for Good Reason. If the Employer terminates the
Executive’s employment without Cause pursuant to Section 7.2 or the Executive terminates his employment for Good Reason pursuant to Section 7.4, the Executive shall be entitled, subject to Section 8.6, to receive: 

 

	 	8.3.1.	Payment of his Accrued Benefits; 

  

	 	8.3.2.	Lump sum payment equal to one (1) times the Executive’s Base Compensation as of the effective date of the Executive’s termination of employment, with such payment to be made at the time specified in
Section 8.6; and 

  

	 	8.3.3.	 Continued medical, health, dental, and vision insurance benefits to which the Executive and his eligible
dependents, if any, were entitled under such plans immediately prior to the date of the Executive’s termination of employment, for the greater of (i) a period of twelve (12) months (the “Continuation Period”) or
(ii) the period to which the Executive would be entitled to continue coverage under the Employer’s group health plan pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), where during the
Continuation Period the Executive shall be required to make the same premium contributions that he was required to make immediately prior to his termination of employment and, to the extent COBRA continues to apply after expiration of the
Continuation Period, the Executive shall be required to pay one hundred percent (100%) of the premiums due for such continuation coverage after expiration of the Continuation Period; provided, however, that, to the extent that the promise or
provision of any continued group health benefit pursuant to this Section 8.3.3 would cause a group health plan maintained for the officers or employees of the Employer to fail to comply with Section 2716 of the Public Health Service Act,
the nondiscrimination rules of Code Section 105(h)(2), or any statute or regulation of similar effect (including, without limitation, the 2010 Patient Protection and Affordable Care Act,

  
 8 

	 	
as amended by the 2010 Health Care and Education Reconciliation Act), the Executive shall be provided with distributions of cash in lieu of such benefit, at the same times and in the same forms
as the premium payments which would have been made to provide such benefit, in amounts adequate for the Executive to purchase a comparable health benefit; provided, further, that notwithstanding the foregoing, the benefit under this
Section 8.3.3 shall cease and shall no longer be available upon the Executive’s commencement of employment with another employer in all events. 

If the Executive shall die prior to the receipt of all such payments under this Section 8.3, the remainder of such payments shall be paid
to his surviving spouse or, if he has no surviving spouse, to his estate. 
 Notwithstanding the above, the amounts described in
Section 8.3.2 that are payable subsequent to the Executive’s termination of employment shall be subject to Section 18.2. 

8.4. Termination due to Death or Disability. In the event of termination of this Agreement on account of the Executive’s death or
on account of the Executive’s Disability pursuant to Section 7.6, the Executive or the Executive’s estate or other legal representatives shall be entitled to receive payment of the Executive’s Accrued Benefits. 

8.5. No Mitigation. The Executive shall not be required to mitigate the amount of any severance benefits described in this
Section 8 by seeking other employment, other than as provided in Section 8.3.3 hereof. 
 8.6. Release. Payment and
provision of the benefits described in Sections 8.3.2 and 8.3.3 hereof (the “Severance Payments”) are subject to the Executive’s execution and delivery to the Employer of a general release, in a form acceptable to the
Employer, within forty five (45) days of the Executive’s termination of employment, which has (and not until it has) become irrevocable, satisfactory to the Employer in the reasonable exercise of its discretion, releasing the Company, the
Bank, their subsidiaries, their affiliates, and their Directors, officers, and employees, from any and all claims or potential claims arising from or related to the Executive’s employment with the Employer or termination of employment.
Notwithstanding payment timing provisions to the contrary in this Agreement but still subject to the requirements of the preceding sentence, the Severance Payments shall commence on the Employer’s first regular payroll date occurring on or
after the sixtieth (60th) date following the Executive’s termination of employment (the “First Payroll Date”), with amounts otherwise payable under the Employer’s
normal payroll procedures prior to the First Payroll Date, to be paid in lump sum on the First Payroll Date without interest thereon. 

  
 9 

 9. CODE SECTIONS 280G AND 4999. 

Notwithstanding anything contained herein to the contrary, in the event it shall be determined that any payment or distribution made at any
time by the Company, the Bank, or any corporation which is a member of an “affiliated group” (as defined in Code Section 1504(a), without regard to Code Section 1504(b)) of which the Company or the Bank is a member, to or for the
benefit of the Executive (whether paid or payable, or distributed or distributable, pursuant to the terms of this Agreement or otherwise) (a “Payment”) would constitute an “excess parachute payment” (as defined in Code
Section 280G(b)(2)), such Payment shall be reduced to the extent necessary to ensure that no portion of such Payment will be non-deductible to the Employer by Code Section 280G or will be subject to the excise tax imposed by Code
Section 4999 (the “Reduced Payment”), and the Executive shall have no further rights or claims with respect to an amount in excess of the Reduced Payment. If a Payment is reduced pursuant to this Section 9, the Employer
shall reduce or eliminate the following portions of the Payment in successive order to reach the Reduced Payment: (i) first, the benefits portion of the Payment, (ii) then, the cash portion of the Payment, and (iii) then, the equity
portion of the Payment. Any determination required under this Section 9 (including, without limitation, the amount of the Reduced Payment and the assumptions to be utilized in arriving at such determination) shall be made by the Employer and
its tax advisors, whose determination shall be conclusive and binding upon the Executive. 
 10. CONFIDENTIALITY. 

10.1. The Executive recognizes and acknowledges that certain assets of the Company, the Bank, and their affiliates or subsidiaries constitute
Confidential Information. 
 10.2. The Executive shall not, without the prior written consent of the Company, the Bank, or any of their
subsidiaries or affiliates, use or disclose, or negligently permit any unauthorized person to use, disclose, or gain access to, any Confidential Information, except in connection with any dispute that arises between the Company and/or the Bank and
the Executive, in which case such disclosure may be made to the extent necessary to the Executive’s personal legal advisers and to courts having jurisdiction over such matters. 

10.3. Upon termination of employment, the Executive hereby agrees to deliver promptly to the Company, the Bank, or any of their subsidiaries or
affiliates all memoranda, notes, records, manuals, or other documents, including all copies of such materials, containing Confidential Information, whether made or compiled by the Executive or furnished to him from any source by virtue of the
Executive’s relationship with the Company, the Bank, or any of their subsidiaries or affiliates. 
 10.4. Regardless of the reason for
his cessation of employment, the Executive will furnish such information as may be in the Executive’s possession and will cooperate with the Company, the Bank, or any of their subsidiaries or affiliates as may reasonably be requested in

  
 10 

 
connection with any claims or legal actions in which the Company, the Bank, or any of their subsidiaries or affiliates are or may become a party. The Employer will reimburse the Executive for any
reasonable out-of-pocket expenses the Executive incurs in order to satisfy his obligations under this Section 10.4. 
 11. NON-COMPETITION AND
NON-SOLICITATION. 
 11.1. In consideration of the covenants of the Employer contained herein, the Executive covenants and agrees
with the Employer that, during the Restrictive Period and within a one hundred and fifty (150) “air” mile radius from Newport, New Hampshire, the Executive shall not, without specific written approval of the Employer, directly or
indirectly: 
  

	 	11.1.1.	Engage in any insurance, brokerage, trust, banking, or other financial services as an owner, employee, consultant, representative, or in any other capacity; 

 

	 	11.1.2.	Directly or indirectly request or advise any past, present, or future customers of the Company, the Bank, or any of their subsidiaries or affiliates to withdraw, curtail, or cancel his or her or its business with the
Company, the Bank, or any of their subsidiaries or affiliates; 

  

	 	11.1.3.	Directly or indirectly cause, suggest, or induce others to call on any past, present, or future customers of the Company, the Bank, or any of their subsidiaries or affiliates; or 

 

	 	11.1.4.	Canvas, solicit, or accept any business on behalf of any other bank, insurance agency, trust, or other financial services business, other than the Company, the Bank, or any of their subsidiaries or affiliates, from any
past or present customer of the Company, the Bank, or any of their subsidiaries or affiliates. 

 11.2. During the Restrictive
Period, the Executive shall not, directly or indirectly, by any means or device whatsoever, for himself or on behalf of, or in conjunction with, any other person, partnership, or corporation, solicit, entice, hire, or attempt to hire or employ any
employee of the Company, the Bank, or any of their subsidiaries or affiliates. 
 11.3. Other Agreements. The Executive represents and
warrants that neither the Executive’s employment with the Employer nor the Executive’s performance of his obligations hereunder will conflict with or violate the Executive’s obligations under the terms of any agreement with a previous
employer or other party, including agreements to refrain from 

  
 11 

 
competing, directly or indirectly, with the business of such previous employer or other party. Prior to the Effective Date hereof, the Executive has provided copies of all restrictive covenants
(e.g., non-solicitation and non-competition agreements) to which he is a party to the Employer in order to ensure compliance with this Section 11.3. 

12. REFORMATION AND INJUNCTIVE RELIEF. 

12.1. Reformation. All the parties hereto acknowledge that the parties have carefully considered the nature and scope of this Agreement.
The activities, period, and area covered by Sections 10 and 11 are expressly acknowledged and agreed to be fair, reasonable, and necessary. To the extent that any covenant contained in Sections 10 and 11 is held to be invalid, illegal, or
unenforceable because of the extent of activities, duration of such covenant, the geographic area covered thereby, or otherwise, the parties agree that the court making such determination shall reform such covenant to include as much of its nature
and scope as will render it enforceable and, in its reduced form, said covenant shall be valid, legal, and enforceable to the fullest extent of the law. 

12.2. Injunctive Relief. The Executive acknowledges and agrees that, upon any breach by the Executive of his obligations under Sections
10 and 11 hereof, the Employer will have no adequate remedy at law, and accordingly will be entitled to specific performance and other appropriate injunctive and equitable relief, notwithstanding Section 13 hereof. Nothing herein shall be
construed as prohibiting the Employer from pursuing any other remedies available to it, including the recovery of damages from the Executive. 
 13.
MEDIATION AND ARBITRATION. 
 13.1. Generally. If the Executive and the Employer have any dispute whatsoever relating to
the interpretation, validity, or performance of this Agreement, or any other dispute arising out of this Agreement, every reasonable attempt will be made to resolve any differences or dispute within thirty (30) days of an issuance of written
notice by either party to the other party. If a successful resolution of any differences or dispute has not been achieved to the satisfaction of both parties at the end of the thirty (30)-day period, the steps outlined in the following Sections
13.2, 13.3, and 13.4 shall apply. 
 13.2. ADR. Except as otherwise expressly provided hereunder, the parties agree that any and all
disputes arising out of the Executive’s employment, or cessation of employment, including but not limited to any dispute, controversy, or claim arising under any federal, state, or local statute, law, ordinance, or regulation or under this
Agreement, shall be resolved exclusively by Alternative Dispute Resolution described in this Agreement (“ADR”). The initiation of ADR shall first require mediation, and the parties agree to first try to settle any dispute through

  
 12 

 
mediation. Mediation shall be initiated by either party by the serving of a written notice of intent to mediate (a “Mediation Notice”) by one party upon the other. If no
resolution has been mutually agreed through mediation within ninety (90) days of service of a Mediation Notice, then and only then may the dispute be submitted to arbitration. Arbitration shall be initiated by the serving of a written notice of
intent to arbitrate (an “Arbitration Notice”) by one party upon the other. 
 13.3. Mediation. In the event that a
party wishes to initiate ADR, a Mediation Notice must be served on the other party within six (6) months from the date on which the claim arose. If the parties cannot mutually agree on a mediator, then a mediator shall be selected in accordance
with the Employment Mediation Rules of the American Arbitration Association. 
 13.4. Arbitration. In the event that mediation is
unsuccessful and arbitration is initiated, it shall be conducted under the National Rules for the Resolution of Employment Disputes of the American Arbitration Association. There shall be a single arbitrator to be agreed upon by the parties;
provided that, if the parties are unable to agree upon a single arbitrator, the Executive and the Employer shall each name an arbitrator, and the two (2) arbitrators so named shall name a third
(3rd) arbitrator. The arbitration proceedings shall be heard by the arbitrator(s), and the decision of the arbitrator, or of a majority of the panel if one has been selected, shall be final
and binding on the parties. Judgment upon the arbitration award may be entered in any court of competent jurisdiction. An Arbitration Notice must be served on the other party within one (1) year from the date on which the claim arose, and
failure to bring such a claim within such one (1)-year period shall constitute a waiver of such claim and an absolute bar to any further proceedings in any forum with respect to it. All mediation and arbitration proceedings shall be conducted in
Bangor, Maine, unless the parties otherwise agree in writing. 
 13.5. Costs. The cost of any mediation proceeding under this
Section 13 will be paid entirely by the Employer. The cost of any arbitration proceeding shall be shared equally by the parties to the dispute; provided, however, that if the dispute is resolved in favor of the Executive, such cost shall be
paid in full by the Employer. Each party shall be responsible for its own cost of representation and counsel. 
 14. NOTICES. 

All notices, requests, demands, waivers, and other communications required or permitted to be given under this Agreement will be in writing and
will be deemed to have been duly given: (a) if delivered personally or sent by facsimile or electronic mail, on the date received; (b) if delivered by overnight courier, on the day after mailing; and (c) if mailed, five days after
mailing with postage prepaid. Any such notice will be sent as follows: 

  
 13 

			
	To the Employer:	  	 Bar Harbor Bankshares
 ATTN: Human Resources
Department
 82 Main Street
 P.O. Box 400

Bar Harbor, ME 04609
  

Fax: (207) 288-2811
 Email: msawyer@bhbt.com

 
 With copies to:

 
 Richard Schaberg, Esq.

Hogan Lovells US LLP
 555 Thirteenth Street NW

Washington, DC 20004
  

Fax: (202) 637-5671
 Email:
richard.schaberg@hoganlovells.com

		
	To the Executive:	  	At the address on file with the Employer

 15. SUCCESSORS AND ASSIGNS. 

15.1. The rights and obligations of the Executive hereunder are not assignable or delegable, and any such assignment or delegation will be null
and void, provided, however, that in the event of his death any and all amounts due Executive hereunder shall be paid to his surviving spouse, or if he has no surviving spouse, to his estate, including without limitation any amounts due Executive
under Section 8 hereof. 
 15.2. This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their
respective successors, beneficiaries, heirs, and personal representatives. 
 15.3. The Employer shall require any successor (whether direct
or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business and/or assets of the Employer to expressly assume and agree to perform its obligations under this Agreement in the same manner and to the same
extent that the Employer would be required to perform them if no such succession had taken place. Each such successor shall execute a written agreement evidencing its assumption of the Employer’s obligations under this Agreement prior to the
effective date of any such purchase, merger, consolidation, or other transaction. 
 15.4. The failure of the Employer to obtain from each
successor the written agreement described in Section 15.3 shall be deemed to be a material breach of the obligations of the Employer under this Agreement, and shall entitle the Executive to incur a separation from service for Good Reason
pursuant to Section 7.4. 

  
 14 

 15.5. As used in this Section 15, the Employer shall include the Company, the Bank, and any
successor to all or substantially all of the business and/or assets of any of them (whether direct or indirect, by purchase, merger, consolidation, or otherwise) which executes and delivers the written agreement described in Section 15.3 or
which otherwise becomes bound by all the terms and provisions of this Agreement. 
 16. SURVIVAL. 

Notwithstanding anything contained herein to the contrary, the provisions of this Agreement which by their terms are to be performed subsequent
to termination, including, without limitation, Sections 8, 10, 11, 12, and 13 and this Section 16, shall survive the termination of this Agreement and shall remain fully enforceable. 

17. NON-DUPLICATION. 
 In the event
that the Executive shall perform services for the Company, the Bank, and/or any of their direct or indirect subsidiaries, any compensation or benefits provided to the Executive by such employer or pursuant to such employer’s employee benefit
plans shall be applied to offset the obligations of the Employer hereunder, it being intended that the provisions of this Agreement shall set forth the aggregate compensation and benefits payable to the Executive for all services rendered to the
Company, the Bank, and any of their direct or indirect subsidiaries. 
 18. CODE SECTION 409A. 

18.1. The Executive and the Employer acknowledge that each of the payments and benefits promised to the Executive under this Agreement must
either comply with the requirements of Code Section 409A and the regulations thereunder or qualify for an exception from compliance. To that end, the Executive and the Employer agree that: 

 

	 	18.1.1.	The Executive will be deemed to have a date of termination of employment for purposes of determining the timing of any payments or benefits hereunder that are classified as deferred compensation only upon a
“separation from service” within the meaning of Code Section 409A; 

  

	 	18.1.2.	The expense reimbursements described in Section 6.3 are intended to satisfy the requirements for a “reimbursement plan” described in Treasury Regulation Section 1.409A-3(i)(1)(iv)(A) and shall be
administered to satisfy such requirements; 

  
 15 

	 	18.1.3.	The payments described in Sections 8.1.1 and 8.1.2 are intended to be excepted from compliance with Code Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(3) as payment made pursuant to the
Employer’s customary payment timing arrangement; 

  

	 	18.1.4.	The benefits and payments described in Section 8.1.3 are expected to comply with or be excepted from compliance with Code Section 409A on their own terms; and 

 

	 	18.1.5.	The welfare benefits provided in kind under Section 8.3.3 are intended to be excepted from compliance with Code Section 409A as welfare benefits pursuant to Treasury Regulation Section 1.409A-1(a)(5)
and/or as benefits not includible in gross income. To the extent not otherwise excepted from compliance with Code Section 409A, such benefits will be administered to satisfy the requirements for a “reimbursement plan” described in
Treasury Regulation Section 1.409A-3(i)(1)(iv)(A). 

 18.2. With respect to payments under this Agreement, for purposes of
Code Section 409A, each severance payment (if there is more than one payment) will be considered one of a series of separate payments. The Executive and the Employer further agree that, to the extent not otherwise exempt, the termination
benefits described in this agreement are intended to be exempt from Code Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(4) as short-term deferrals or as payments pursuant to a separation pay plan pursuant to Treasury
Regulation Section 1.409A-1(b)(9)(iii). In the case of a payment that is not excepted from compliance with Code Section 409A and that is not otherwise designated to be paid immediately upon a permissible payment event within the meaning of
Treasury Regulation Section 1.409A-3(a), the payment shall not be made prior to the later of (i) the date specified in Section 8.6 and, (ii) if the Executive is a specified employee (within the meaning of Treasury Regulation
Section 1.409A-1(i)) on the date of his separation from service, the first day of the seventh month following the Executive’s separation from service. Furthermore, this Agreement shall be construed and administered in such manner as shall
be necessary to effect exemption from, and/or compliance with, Code Section 409A. Neither the Bank nor the Company make any representations or warranties that the payments provided under this Agreement comply with, or are exempt from, Code
Section 409A, and in no event shall either the Bank or the Company be liable for any portion of any taxes, penalties, interest, or other expenses that may be incurred by Executive on account of non-compliance with Code Section 409A. 

19. COMPLIANCE WITH FDI ACT. 

Notwithstanding anything contained herein to the contrary, any payments to the Executive by the Employer, whether pursuant to this Agreement or
otherwise, are subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. §1828(k), and any regulations promulgated thereunder. 

  
 16 

 20. GENERAL PROVISIONS. 

20.1. Entire Agreement. This Agreement and the attachments hereto constitute the entire understanding and agreement between the parties
hereto with respect to the Employer’s employment of the Executive, and supersedes and revokes any and all prior agreements and understandings, whether oral or written, between the parties relating to the subject matter of this Agreement. 

20.2. Withholding. The Employer may withhold from any payments to be made hereunder such amounts as it may be required or permitted to
withhold under applicable federal, state, or other law, and transmit such withheld amounts, as appropriate, to the appropriate taxing authorities. 

20.3. Governing Law. This Agreement shall be interpreted under, subject to, and governed by the substantive laws of the State of Maine,
without giving effect to provisions thereof regarding conflict of laws. 
 20.4. Modification and Waiver. This Agreement may not be
modified or amended, except by an instrument in writing signed by the parties hereto. Notwithstanding the preceding sentence, this Agreement shall be construed and administered in such manner as shall be necessary to effect compliance with Code
Section 409A and shall be subject to amendment in the future, in such manner as the Employer, in consultation with the Executive, may deem necessary or appropriate to effect such compliance; provided, that any such amendment shall preserve for
the Executive the benefit originally afforded pursuant to this Agreement. No term or condition of this Agreement shall be deemed to have been waived, except by written instrument of the party charged with such waiver. A waiver shall operate only as
to the specific term or condition waived and will not constitute a waiver of any other term or condition of this Agreement or as to any subsequent occurrence of the term or condition. 

20.5. Cooperation. Each of the parties agrees to execute all further instruments and documents and to take all further action as the
other party may reasonably request in order to effectuate the terms and purposes of this Agreement. 

  
 17 

 20.6. Captions. The captions appearing in this Agreement are for convenience of reference
only and in no way define, limit, or affect the scope or substance of any section of this Agreement. 
 20.7. Severability. The
invalidity or unenforceability of any provision of this Agreement shall not affect any other provision hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision was omitted. Furthermore, in lieu of
such illegal, invalid, or unenforceable provision there shall automatically be added as a part of this Agreement a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and be legal, valid, and
enforceable. 
 20.8. Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which will be
deemed an original, but all of which will together constitute one and the same instrument. 
 21. ACKNOWLEDGEMENT. 

The Executive acknowledges that he has had a full and complete opportunity to review the terms, enforceability, and implications of this
Agreement; that he has had a full and complete opportunity to present it to competent legal counsel for review; and that the Employer has not made any representations and warranties to the Executive concerning the terms, enforceability, and
implications of this Agreement other than as reflected in this Agreement. 

  
 18 

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

					
	 Witness:
  

/s/ Witness
	 		 	 BAR HARBOR BANKSHARES
  

By: /s/ Curtis C. Simard

		 		 	 Name: Curtis C. Simard
 Title: President and
Chief Executive Officer

			
	 Witness:
  

/s/ Witness
	 		 	 BAR HARBOR BANK & TRUST
  

By: /s/ Curtis C. Simard

		 		 	 Name: Curtis C. Simard
 Title: President and
Chief Executive Officer

			
	 Witness:
  

/s/ Witness
	 		 	 EXECUTIVE
  

/s/ William J. McIver

		 		 	WILLIAM J. MCIVER

 [Signature Page to McIver Employment Agreement] 

  
 19 

 EXHIBIT A 

Job Description 

(attached) 

  
 20 

 POSITION DESCRIPTION 

 
 

 
  

			
	POSITION TITLE:	 	Executive Vice President
		
		 	Regional President
		
		 	New Hampshire and Vermont markets
		
	RESPONSIBILITY LEVEL:	 	Executive
		
	REPORTS TO:	 	CEO and President
		
	PROVIDES SUPERVISION	 	
		
	And GUIDANCE FOR:	 	New Hampshire and Vermont Branch Teams and Global BHB Residential Lending
		
	GUIDANCE TO:	 	New Hampshire and Vermont staff

 GENERAL RESPONSIBILITIES: 

The position is responsible for customer retention, growth, and administrative duties of assigned banking functions to include branch and residential lending
divisions in the New Hampshire and Vermont geographic service areas to achieve maximum overall profitability. Oversight of branch teams will include working with other BHB divisions to help unite the culture and unify delivery standards. Oversight
of residential lending will extend to all of BHB. 
 This position will particularly focus on the communication and benefits of the BHB affiliation to
customers and employees alike. The position will serve as a critical component to decisions around the future operation of the combined organization. 

  
 21 

 KNOWLEDGE, ABILITY and SKILLS REQUIRED: 

The ability to analyze, interpret findings and results, and to draw logical conclusions in carrying out assigned responsibilities. The ability to use and
analyze financial and economic information for problem solving; the flexibility to learn and keep current with changing markets, products, procedures, laws and regulations, varying job responsibilities, technological advances and new equipment; the
ability to manage multiple priorities and direct work teams in a fast paced, high volume environment with critical deadlines. 
 A minimum of five years
experience in a similar or related position. Proven leadership, people management and communication skills both with reports and peer groups. 
 SPECIFIC
RESPONSIBILITIES: 
  

	 	•	 	Exercising the usual authority concerning staffing, training, performance appraisals, promotions, salary recommendations and terminations. Communicating through departmental meetings employee suggestions, questions,
concerns, and following through on pending items. Directing the activities for subordinates and providing ongoing support, supervision, and training. 

  

	 	•	 	Participating in the development and leading the execution of the Company’s strategies in the New Hampshire and Vermont markets as well as the entire BHB for Residential lending for generating profitable revenue
over a long term horizon. 

  

	 	•	 	Communicating and providing guidance to customers and employees on the advantages of our business combination with a critical eye to preserving culture while preventing development of new subcultures. 

 

	 	•	 	Serving as a member of the Senior Executive Team (SET), Asset & Liability Committee, Management Loan Committee, Disclosure Controls & Procedures Committee, Enterprise Risk Management Committee, and
other Committees deemed appropriate. 

  

	 	•	 	Directing, monitoring, coaching, and participating in business development and customer relations program for the New Hampshire and Vermont markets. Calling on present and prospective customers introducing the Company,
explaining and selling bank services, and providing financial advice. Encouraging staff to cross sell deposits, products and services and to proactively refer business over multiple business lines. 

 

	 	•	 	Participating in professional industry organizations and civic groups to enhance the Company’s (including Lake Sunapee Bank) visibility and to further personal development. 

This description is a summary of major responsibilities and is not intended to include all duties that may be assigned. Flexible work hours may be necessary
and hours over 40 are expected as required. 
  

			
	                                      
  	  	                                    

	Employee Signature	  	Date        

  
 22 

 EXHIBITS B and B(a) 

Annual Incentive Plan 

(attached) 

  
 23 

 2016 Executive Annual Incentive Program 

Bar Harbor Bankshare’s (“BHB”) Annual Incentive Program is designed to recognize and reward executives for their collective contributions to
BHB’s success. Our program focuses on rewarding for the achievement of specific goals that are critical to BHB’s growth and profitability. Individually and collectively, we believe our executive team has the ability to influence and drive
our success. Our program is designed to reward our executives for driving the BHB’s success. This document summarizes the elements and features of the program. 

In short, the objectives of this incentive program are to: 
  

	 	•	 	Focus executive attention on key business metrics. 

  

	 	•	 	Align pay with organizational and individual performance. 

  

	 	•	 	Encourage teamwork and collaboration across all areas of BHB. 

  

	 	•	 	Motivate and reward the achievement of specific, measurable performance objectives. 

  

	 	•	 	Provide competitive total cash compensation. 

  

	 	•	 	Provide significant reward for achieving and exceeding performance results. 

  

	 	•	 	Enable BHB to attract and retain the talent needed to drive success. 

 Eligibility 

 

	 	•	 	Eligibility will be limited to executive positions the Board has identified as having a significant impact on the success of the organization. 

 

	 	•	 	New employees and newly promoted employees will receive pro-rated awards based on date of hire or dates of eligibility into the management team. 

 

	 	•	 	Participants must be an active employee as of the reward payout date to receive an award. 

  

	 	•	 	Participant’s performance must be in good standing for the measurement period. 

 Performance Period

 The performance period and program operates on a calendar year basis (January 1st –
December 31st). Actual payout awards are made in cash following year-end after BHB’s financial results and performance have been audited and confirmed. 

Incentive Payout Opportunity 
 Each participant will have
a target incentive opportunity based on his/her role. The target incentive will reflect a percentage of base salary and be determined consistent with competitive market practices. Actual awards will vary based on achievement of specific goals. The
opportunity reflects a range of potential awards. Actual awards may range from 0% for less than Threshold (for not achieving minimal performance) to 150% of target (for exceptional performance). The table below summarizes the incentive ranges for
the 2016 calendar year. 

  
 24 

																	
	 2016 Short-Term Incentive Targets
	 
	 Role
	  	Below
Threshold	 	 	Threshold
(50% of Target)	 	 	Target
(100%)	 	 	Stretch
(150% of Target)	 
	 CEO/President
	  	 	0	% 	 	 	15.00	% 	 	 	38.00	% 	 	 	57.00	% 
	 EVP/CFO
	  	 	0	% 	 	 	13.75	% 	 	 	28.00	% 	 	 	42.00	% 
	 EVPs
	  	 	0	% 	 	 	12.50	% 	 	 	25.00	% 	 	 	37.50	% 
	 SVP
	  	 	0	% 	 	 	10.00	% 	 	 	20.00	% 	 	 	30.00	% 

 Incentive Plan Measures 

Each participant will have predefined performance goals that will determine his/her annual incentive award. There are two performance categories: BHB
and Individual. BHB performance will be reflected by common goals for all participants. Individual goals will reflect each participant’s individual contributions based on their role. The specific allocation of goals will be weighted to
reflect the focus and contribution for each role/level in the Bank. 
 The table below provides guidelines for the allocation of participant’s
incentives for each performance component 
  

					
	 Position
	  	BHB/Team
Performance	  	Departmental
or Individual
Performance
	 CEO/President
	  	75%	  	25%
	 EVP/CFO
	  	70%	  	30%
	 Executive Officer
	  	30%	  	70%
	 Executive Officers
	  	50%-55%	  	45%-50%
	 Senior Vice Presidents
	  	50%-70%	  	30%-50%

 BHB Performance 
 BHB
performance goals for 2016 are Net Income and Efficiency Ratio. The table below shows the specific performance goal at threshold, budget and stretch for 2016. 
  

													
	 Company Performance
	  	2016 Performance Goals	 
	 Measures
	  	Threshold	 	 	Target	 	  	Stretch	 
	 Net Income* (millions)
	  	 	93	% 	 	 	Budget	  	  	 	110	% 
	 Efficiency Ratio
	  	 	>2.00	  	 	 	Budget	  	  	 	<2.00	  

  

	*	Net Income Available to Common Shareholders 

  
 25 

 Individual Performance 

In addition to BHB’s performance, participants may have individual goals that will focus on either department/team performance (e.g. loan growth, deposit
growth, asset quality measures) and/or individual performance. The mix of these goals will vary by role. Whenever possible, performance targets and ranges for each measure will be set at the beginning of the calendar year. A minimum achievement of
threshold level performance is required for the program to pay for each component. 
 Plan Trigger 

In order for the Annual Incentive Program to ‘activate’ or turn on, Bar Harbor must achieve at least TBD million in Net Income. If BHB does
not meet this level, the program will not pay out any awards for the year, regardless of performance on other goals. 
 Payouts 

Payouts will be made in cash as soon as reasonably possible after the closing of BHB’s financials each year. Participants must be an active employee as of
the reward payout date to receive an award. Awards are calculated based on actual performance relative to target. Achieving threshold performance will pay out at 50% of target incentive, target performance will pay out 100% of target, and stretch
performance will pay out at 150% of target incentive. Performance payouts below threshold will be zero. Payouts are assessed by component such that one goal may achieve stretch and another may achieve only threshold. Actual payouts for each
performance goal will be pro-rated between threshold, target and stretch levels to reward incremental improvement.  
 Below is an illustration of a
simple program design for a SVP (Tier 5) with a base salary of $100,000 and an incentive target of 20% of base salary ($20,000). Goals are for illustration purposes only. 
  

																							
	 Participant Goals
	 	  	Performance and Payout	 
	 Performance Measure
	  	Performance
Goal
threshold/
target/stretch	 	  	Weight	 	 	At Target	 	  	Actual Performance	 	Payout
Allocation
(0% - 150%)	 	 	Payout ($)	 
	 Net Income
	  	 	TBD	  	  	 	30	% 	 	$	6,000	  	  	Target	 	 	100	% 	 	$	6,000	  
	 Efficiency Ratio
	  	 	TBD	  	  	 	30	% 	 	$	6,000	  	  	Threshold	 	 	50	% 	 	$	3,000	  
	 Individual performance goal #1
	  	 	TBD	  	  	 	20	% 	 	$	4,000	  	  	Stretch	 	 	150	% 	 	$	6,000	  
	 Individual performance goal #2
	  	 	TBD	  	  	 	10	% 	 	$	2,000	  	  	Below Threshold	 	 	0	% 	 	$	0	  
	 Individual performance goal #3
	  	 	TBD	  	  	 	10	% 	 	$	2,000	  	  	Threshold-Target	 	 	75	% 	 	$	1,000	  
		  				  				 				  		 				 	  
	  
	 
	 TOTAL
	  				  	 	100	% 	 	$	20,000	  	  	85% payout	 				 	$	16,000	  
		  				  				 				  		 				 	  
	  
	 

 This participant’s payout of $16,000 is 80% of target. The payout reflects BHB’s Net Income performance at
“Target”, Efficiency Ratio at Threshold, one Individual goal at stretch, another that was not achieved, and another at halfway between Threshold and Target. 

  
 26 

 Terms and Conditions 

 
 Effective Date 

This program is effective January 1, 2016 to reflect calendar year January 1, 2016 to December 31, 2016. The program will be reviewed annually
by the BHB’s Compensation and Human Resources Committee and Executive Management to ensure proper alignment with BHB’s business objectives. BHB retains the rights as described below to amend, modify or discontinue the program at any time
during the specified period. The incentive program will remain in effect until December 31, 2016. 
 Program Administration 

The program is authorized and voted by the Compensation and Human Resources Committee. The Compensation Committee has the sole authority to interpret the
program and to make or nullify any rules and procedures, as necessary, for proper administration. Any determination by the Committee will be final and binding on all participants. 

Program Changes or Discontinuance 
 BHB has developed the
program based on existing business, market and economic conditions. If substantial changes occur that affect these conditions, BHB may add to, amend, modify or discontinue any of the terms or conditions of the Program at any time. The Compensation
and Human Resources Committee may, at its sole discretion, waive, change or amend the plan as it deems appropriate. 
 Incentive Award Payments 

Awards will be paid as a cash bonus by no later than March 15 following the calendar year. Awards will be paid out as a percentage of a participant’s
base salary (less any amounts paid for short term disability benefits or grandfathered sick time) earned during the year as of December 31st for a given calendar year. Incentive awards will
be considered taxable income to participants in the year paid and will be subject to withholding for required income and other applicable taxes. 
 Any
rights accruing to a participant or his/her beneficiary under the program shall be solely those of an unsecured general creditor of BHB. Nothing contained in the program, and no action taken pursuant to the provisions hereof, will create or be
construed to create a trust of any kind, or a pledge, or a fiduciary relationship between BHB or the CEO and the participant or any other person. Nothing herein will be construed to require BHB or the CEO to maintain any fund or to segregate any
amount for a participant’s benefit. 

  
 27 

 New Hires, Promotions, and Transfers 

Participants newly employed by BHB will be eligible for participation into the program and will receive a pro rata incentive award based on their length of
eligibility. 
 A participant whose work schedule changes during the year will be eligible for prorated treatment that reflects his/her time in the
different schedules. 
 If a participant changes his/her role or is promoted during the program year, he/she will be eligible for the new role’s target
incentive award on a pro rata basis (i.e. the award will be prorated based on the number of months employed in the respective positions.) 
 Termination
of Employment 
 If a participant is terminated by BHB, no incentive award will be paid. If a participant voluntarily leaves BHB before the award is
paid, s/he will not receive payment unless their resignation is due to a hardship, retirement, death, disability, or extenuating family situation and BHB determines to make a payment. The Compensation Committee reserves the right to make a decision
on whether or not to pay a pro-rated share of any incentive earned for the calendar year in question. 
 Disability, Death, or Retirement 

If a participant is disabled by an accident or illness, and is disabled long enough to be placed on short- term or long-term disability, his/her incentive
award for the program period shall be prorated so that no award will be earned during their absence. 
 In the event of death, BHB will pay to the
participant’s estate the pro rata portion of the award that had been earned by the participant. 
 In the event of retirement (other than retirement
due to disability above), BHB may, in its discretion, pay to the participant a pro rata portion of the award that had been earned by the participant. 
 Any
pro rata payments that BHB determines to pay shall be made no later than March 15 of the year following the year in which the participant terminated employment. 

Ethics and Interpretation 
 If there is any ambiguity as
to the meaning of any terms or provisions of this program or any questions as to the correct interpretation of any information contained therein, BHB’s interpretation expressed by the Compensation and Human Resources Committee will be final and
binding. 
 The altering, inflating, and/or inappropriate manipulation of performance/financial results or any other infraction of recognized ethical
business standards, will subject the employee to disciplinary action up to and including termination of employment. In addition, any incentive compensation as provided by the program to which the employee would otherwise be entitled will be revoked.

 The Company will recover any payments made under this program, if the payment was based on statements of earnings, revenues, gains, or other criteria
that are later found to be materially inaccurate. 

  
 28 

 Participants who have willfully engaged in any activity, injurious to the BHB, will upon termination of
employment, death, or retirement, forfeit any incentive award earned during the award period in which the termination occurred. 
 Miscellaneous 

The program will not be deemed to give any participant the right to be retained in the employ of BHB, nor will the program interfere with the right of BHB to
discharge any participant at any time. 
 In the absence of an authorized, written employment contract, the relationship between employees and BHB is one of
at-will employment. This program does not alter the relationship. 
 This incentive program and the transactions and payments hereunder shall, in all
respect, be governed by, and construed and enforced in accordance with the laws of the State of Maine. 
 Each provision in this plan is severable, and if
any provision is held to be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining provisions shall not, in any way, be affected or impaired thereby. 

This program is proprietary and confidential to BHB and its employees and should not be shared outside the organization except as authorized by the
Compensation Committee for public disclosure documents. 

  
 29 

 EXHIBITS C and C(a) 

Long Term Executive Incentive Plan 

(attached) 

  
 30 

 2016 through 2018 Long Term Executive Incentive Plan (D) 

Bar Harbor Bankshares and Subsidiaries (“BHB”) Long Term Executive Incentive Plan (“LTEIP”) is part of a total compensation package, which
includes base salary, annual incentives, long-term incentives and benefits. 
 Individually and collectively, BHB believes the executive team has the
ability to influence and drive our success. The LTEIP is designed to reward executives for driving BHB’s success. This document summarizes the elements and features of the LTEIP. 

The objectives of the LTEIP are to: 
  

	 	•	 	Align executives with shareholder interests; 

  

	 	•	 	Increase executive stock ownership/holdings; 

  

	 	•	 	Ensure sound risk management by providing a balanced view of performance and aligning rewards with the time horizon of risk; 

  

	 	•	 	Position BHB’s total compensation to be competitive with market for meeting performance goals; 

  

	 	•	 	Motivate and reward long-term sustained performance; and 

  

	 	•	 	Enable BHB to attract and retain talent needed to drive BHB’s success. 

 Eligibility 

 

	 	•	 	Eligibility will be limited to named executive officers and selected senior management officers nominated by the CEO and approved by the Compensation and Human Resources Committee of the Board of Directors (the
“Committee”); and 

  

	 	•	 	Participants must be an active employee as of the reward payout date to receive an award with the exception of retirement, death, or disability discussed further in this document. 

Program Components 
 The 2016-2018 LTEIP consists of a
combination of Time-vesting Restricted Stock and Performance-vesting Restricted Stock Units. Participants may receive Time-vested Restricted Stock, Performance-vested Restricted Stock Units, or both under this LTEIP. 

 

	 	•	 	Time-vested Restricted Stock supports executive ownership and retention objectives. Grants vest over three years (e.g. 1/3 per year) and are subject to a three year holding requirement (i.e. executive can’t
sell for at least three years after vesting); and 

  

	 	•	 	Performance-vested Restricted Stock Units promote pay for performance since the awards are only paid out when predefined performance goals are met. Grants are earned and cliff vest after three years and are subject to a
further three-year holding requirement after vesting. 

  
 31 

 The following table summarizes the measures and payout ranges. 

 

																	
	 Long-term Executive Incentive Program Guidelines

Performance Period 2016-2018
	   

  

	 Participants
	  	Below
Threshold
<45% percentile	 	 	Threshold
(50% of Target)
45th percentile	 	 	Target
(100% of Target)
50th percentile	 	 	Stretch
(150% of Target)
75th percentile
and above	 
	 CEO/President
	  	 	0	% 	 	 	15.00	% 	 	 	30.00	% 	 	 	45.00	% 
	 EVP/CFO
	  	 	0	% 	 	 	13.75	% 	 	 	27.50	% 	 	 	41.25	% 
	 EVPs
	  	 	0	% 	 	 	12.50	% 	 	 	25.00	% 	 	 	37.50	% 
	 SVP (Set Members)
	  	 	0	% 	 	 	10.00	% 	 	 	20.00	% 	 	 	30.00	% 

 Time-vested Restricted Stock is measured on a more holistic basis and is intended to allow for appropriate reflection of
BHB’s performance, business environment, affordability, and individual performance and contribution. All awards are at the discretion of the Committee. 

Performance-vested Restricted Stock Units will be granted at guideline level (i.e. target) and vesting will be determined by BHB’s future performance
(i.e. three years after the grant). 
 Individual grant agreements will be provided to each individual upon grant and will specify the terms and conditions
of the grant. 
 Performance Period-Performance-vested Restricted Stock Units. 

Performance shares are granted at the start of each performance period. For the 2016-2018 LTEIP the start of the Performance Period will be January 1st 2016. Each performance cycle (i.e. performance period) is three years. The vesting (i.e. earning) of the award is contingent on actual performance of pre-defined measures at the end of the
performance period (i.e. third year). The result is a rolling series of annual awards, each vesting over three years. (i. e. 2014 through 2016, 2015 through 2017, and 2016 through 2018). This plan document is for the 2016 through 2018 calendar
years. 
 Performance-vested Restricted Stock Units-Metrics 

Relative ROA will be selected for the performance measurement considering BHB’s Strategic Plan, growth strategy, as well as alignment with shareholder
interests. The Committee will review the proposed performance goal (s) annually and approve the targets and ranges consistent with business plans and expectations for each subsequent rolling year plan. Threshold, target, and stretch goals will
be established for each performance period and detailed in the table above. 

  
 32 

 Plan year for 2016 through 2018 

For the performance period of January 1, 2016 to December 31, 2018, relative ROA will be used to determine the vesting of performance –based
restricted stock units. Due to the long-term period, performance will be compared to an approved “industry index” that allows comparison of BHB to its peers. BHB will be using the SNL $750M to $3B Bank Index for peer measurement purposes.

 The ROA measure will be calculated using each of the twelve quarter’s relative ROA ranking, then average the results for the final measurement. 

In addition to relative ROA, there will be a Total Shareholder Return (“TSR”) modifier to further align shareholder interest. If the TSR calculation
for the same performance measurement period is negative, a payout cannot exceed a threshold payout level regardless of the relative ROA performance results. 

Vesting 
 Restricted stock awards will have a three-year
installment vesting schedule while performance –vested restricted stock units will have a three-year cliff vesting schedule. At the time of the vesting, sufficient shares of restricted stock units may be withheld to cover the executive’s
tax liabilities. 
 Grants will vest during the second quarter of each year to allow for the gathering of calendar-year peer ROA statistics and to remain in
compliance with Code Section 409A regulations. Performance vested restricted stock unit awards will be made as soon as administratively possible after the third year anniversary of the performance grants. 

Terms and Conditions 
  

Effective Date 
 This LTEIP is effective January 1,
2016 to reflect a performance period of January 1, 2016 to December 31, 2018. The LTEIP will be reviewed annually by the BHB’s Compensation and Human Resources Committee and Executive Management to ensure proper alignment with
BHB’s business objectives. The Committee and the independent members of the Board of Directors retain the right to amend or modify the LTEIP at any time during the specified period. The established performance measurement will remain constant
for the three year term. This LTEIP will remain in effect until December 31, 2018. 
 Program Administration 

The LTEIP is authorized by the Compensation and Human Resources Committee and further voted by the independent members of the Board of Directors. The Committee
has the sole authority to interpret the LTEIP and to make or nullify any rules and procedures, as necessary, for proper administration. Any determination by the Committee will be final and binding on all participants with the exception of the
performance measure. 

  
 33 

 Program Changes or Discontinuance 

BHB has developed the LTEIP based on existing business, market and economic conditions; current services; and staff assignments. If substantial changes occur
that affect these conditions, BHB may add to, amend, modify or discontinue any of the terms or conditions of the LTEIP at any time. The established performance measurement will remain constant for the three year term. The Committee may, at its sole
discretion, waive, change, amend, or discontinue any of the terms or conditions of the LTEIP at any time as it deems appropriate. 
 The Board of Directors
also may, at its sole discretion, waive, change or amend the LTEIP as it deems appropriate. 
 Plan and Award Agreements 

All awards granted under the LTEIP will be subject to the terms and conditions of an award agreement executed between BHB and the executive. Further, all
awards will be subject to the terms of conditions of the shareholder-approved equity plan under which the awards will be granted. 
 New Hires,
Promotions, and Transfers 
 A participant who is promoted or hired into the approved participant group generally will not be eligible for the current
three-year plan, but will become a participant in the next rolling three-year program. The Committee may make exceptions to this provision at its discretion by allowing a pro-rated payment (based on the months the new entrant participates in
the current year plan) on a case by case basis. 
 Termination of Employment 

To encourage employees to remain in the employment of BHB, a participant must be an active employee of BHB on the day the award is paid (see exceptions for
disability, death, or retirement). 
 If a participant is terminated by BHB, participation under the program is forfeited in its entirety. 

If a participant voluntarily leaves BHB at any time during the performance period including the period before the award is paid, s/he will not be eligible for
payment. 
 The Committee reserves the right to make a decision on whether or not to pay a pro-rated share of any incentive earned for the performance
period in question. 
 Disability, Death, or Retirement 

If a participant is disabled by an accident or illness, and is disabled long enough to be placed on long-term disability, his/her incentive award for the
performance period shall be prorated so that no award will be earned during the period of long-term disability. Payment will be made on the same schedule as with other participants. 

  
 34 

 In the event of death, BHB will pay to the participant’s estate the pro rata portion of the award that had
been earned by the participant. Payment will be made on the same schedule as with other participants. 
 In the event of retirement, BHB will pay to the
participant a pro rata portion of the award that had been earned by the participant. Payment will be made on the same schedule as with other participants. 

In the event of a Change in Control time-based grants will vest at 100% and Performance-based grants will vest at 100% of target. Payment will be made as soon
as administratively possible after the Change of Control event is finalized. A Change of Control event will be determined as defined in BHB’s currently executed Change of Control agreements. 

Participants who have willfully engaged in any activity, injurious to the BHB, will upon termination of employment, death, or retirement, forfeit any
incentive award earned during a performance period in which the termination occurred. 
 Ethics and Interpretation 

If there is any ambiguity as to the meaning of any terms or provisions of this LTEIP or any questions as to the correct interpretation of any information
contained therein, BHB’s interpretation expressed by the Board of Directors will be final and binding. 
 Clawback (pending further refinement
of pending SEC regulations) 
 In the event that BHB is required to prepare an accounting restatement due to error, omission, or fraud (as determined by the
members of the Board of Directors who are considered “independent” for purposes of the listing standards of the NYSE MKT) each plan participant shall reimburse BHB for part or the entire incentive award made to such plan participant on the
basis of having met or exceeded specific targets for the performance periods. For purposes of the LTEIP, the term “incentive awards” means awards made under the BHB’s LTEIP, the amount of which is determined in whole or in part upon
specific performance targets relating to the financial results of BHB. BHB may seek to reclaim incentives within a three-year period of the incentive payout. 

In addition, the altering, inflating, and/or inappropriate manipulation of performance/financial results or any other infraction of recognized ethical
business standards, will subject the employee to disciplinary action up to and including termination of employment. In addition, any incentive compensation as provided by the LTEIP to which the employee would otherwise be entitled will be revoked
even though an accounting reinstatement may not be required. 
 Miscellaneous 

The LTEIP will not be deemed to give any participant the right to be retained in the employ of BHB, nor will the LTEIP interfere with the right of BHB to
discharge any participant at any time. 

  
 35 

 In the absence of an authorized, written employment contract, the relationship between employees and BHB is one
of at-will employment. The LTEIP does not alter the relationship. 
 This LTEIP and the transactions and payments hereunder shall, in all respect, be
governed by, and construed and enforced in accordance with the laws of the State of Maine. 
 Each provision in this LTEIP is severable, and if any
provision is held to be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining provisions shall not, in any way, be affected or impaired thereby. 

This Plan is proprietary and confidential to BHB and its employees and should not be shared outside the organization except as authorized by the
Compensation and Human Resources Committee for public disclosure documents. 

  
 36

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