<SEC-DOCUMENT>0001299933-16-002243.txt : 20160401
<SEC-HEADER>0001299933-16-002243.hdr.sgml : 20160401
<ACCEPTANCE-DATETIME>20160401155014
ACCESSION NUMBER:		0001299933-16-002243
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20160331
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20160401
DATE AS OF CHANGE:		20160401

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FINANCIAL INSTITUTIONS INC
		CENTRAL INDEX KEY:			0000862831
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				160816610
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26481
		FILM NUMBER:		161546918

	BUSINESS ADDRESS:	
		STREET 1:		220 LIBERTY STREET
		CITY:			WARSAW
		STATE:			NY
		ZIP:			14569
		BUSINESS PHONE:		5857861100

	MAIL ADDRESS:	
		STREET 1:		220 LIBERTY STREET
		CITY:			WARSAW
		STATE:			NY
		ZIP:			14569
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>htm_53309.htm
<DESCRIPTION>LIVE FILING
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<TITLE> Financial Institutions, Inc. (Form: 8-K) </TITLE>
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		UNITED STATES<BR>
	SECURITIES AND EXCHANGE COMMISSION
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	WASHINGTON, D.C. 20549
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	FORM 8-K
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	CURRENT REPORT
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	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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	Date of Report (Date of Earliest Event Reported):
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	&nbsp;
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	March 31, 2016
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	Financial Institutions, Inc.
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<BR>__________________________________________<BR>
	(Exact name of registrant as specified in its charter)
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	New York
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	0-26481
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	16-0816610
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_____________________<BR>
	(State or other jurisdiction
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_____________<BR>
	(Commission
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______________<BR>
	(I.R.S. Employer
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	of incorporation)
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	File Number)
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	Identification No.)
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	220 Liberty Street, Warsaw, New York
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	&nbsp;
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	14569
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_________________________________<BR>
	(Address of principal executive offices)
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	&nbsp;
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___________<BR>
	(Zip Code)
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	Registrant&#146;s telephone number, including area code:
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	585-786-1100
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	Not Applicable
<BR>______________________________________________<BR>
	Former name or former address, if changed since last report
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	&nbsp;
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<!-- CoverPageRegistrant END --><P><FONT SIZE="2">
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:</FONT>
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<P><FONT SIZE="2">
[&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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<B>
	Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
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On March 31, 2016, Richard J. Harrison retired from his position as Executive Vice President and Chief Operating Officer of Financial Institutions, Inc. (the "Company").  As of April 1, 2016, the Company entered into a Consulting Agreement (the "Consulting Agreement") with Mr. Harrison pursuant to which Mr. Harrison will provide consulting services related to the Company&#x2019;s business for an annual fee of $100,000, payable monthly.  The Consulting Agreement will remain in effect for a one-year term (the "Term"), subject to early termination upon certain events.  Under the Consulting Agreement, Mr. Harrison agrees to non-competition and non-solicitation covenants for a period of eighteen (18) months following the end of the Term.  Mr. Harrison also agrees to abide by certain confidentiality provisions.<br><br>A copy of the Consulting Agreement is attached hereto as Exhibit 10.1.
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	Item 9.01 Financial Statements and Exhibits.
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Exhibit 10.1 Consulting Agreement, dated April 1, 2016, by and between the Company and Richard J. Harrison.
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	SIGNATURES
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	Pursuant to the requirements of the Securities Exchange Act of 1934, the
	registrant has duly caused this report to be signed on its behalf by the
	undersigned hereunto duly authorized.
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	Financial Institutions, Inc.
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	&nbsp;&nbsp;
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<I>
	April 1, 2016
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<I>
	By:
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	&nbsp;
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<I>
	Kevin B. Klotzbach
</I>
<BR>
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	&nbsp;
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	&nbsp;
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<I>
	Name: Kevin B. Klotzbach
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<I>
	Title: Executive Vice President, Chief Financial Officer & Treasurer
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	Exhibit&nbsp;Index
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	Exhibit No.
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	Description
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	10.1
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	&nbsp;
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Consulting Agreement, dated April 1, 2016, by and between the Company and Richard J. Harrison.
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<TYPE>EX-10.1
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<FILENAME>exhibit1.htm
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<P align="center" style="font-size: 10pt"><FONT style="font-size: 12pt"><B>CONSULTING AGREEMENT</B></FONT>



<P align="left" style="font-size: 12pt; text-indent: 4%">This Consulting Agreement (this &#147;<U>Agreement</U>&#148;) is made and entered into as of March&nbsp;31,
2016, by and between Financial Institutions, Inc., a bank holding company chartered under the laws
of the State of New York (the &#147;<U>Company</U>&#148;), and Richard J. Harrison (the
&#147;<U>Consultant</U>&#148;).


<P align="center" style="font-size: 12pt">RECITALS



<P align="left" style="font-size: 12pt; text-indent: 4%">WHEREAS, the Consultant has expertise and knowledge of the business of the Company; and


<P align="left" style="font-size: 12pt; text-indent: 4%">WHEREAS, the Company wishes to engage the Consultant, and the Consultant desires to be
retained by the Company, as an independent contractor on the terms and conditions set forth herein;


<P align="left" style="font-size: 12pt; text-indent: 4%">NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereby
agree as follows:


<P align="left" style="font-size: 12pt; text-indent: 4%">1.&nbsp;<U><B>Consulting Services</B></U>. The Company hereby engages the Consultant to perform the
consulting and advisory services set forth on Schedule&nbsp;A hereto (the &#147;<U>Consulting Services</U>&#148;)
during the Term (as defined below), and the Consultant hereby accepts such engagement and agrees to
perform the Consulting Services upon the terms and conditions set forth in this Agreement. For
purposes of this Agreement, the term &#147;<U>Engagement</U>&#148; shall refer to the Consultant&#146;s provision
of the Consulting Services hereunder.


<P align="left" style="font-size: 12pt; text-indent: 4%">2.&nbsp;<U><B>Effective Date and Term</B></U>. The Engagement shall commence on April&nbsp;1, 2016 (the
&#147;<U>Effective Date</U>&#148;), and shall continue for a period of one year (the &#147;<U>Term</U>&#148;),
subject to earlier termination pursuant to Section&nbsp;3.


<P align="left" style="font-size: 12pt; text-indent: 4%">3.&nbsp;<U><B>Termination of Engagement</B></U>.


<P align="left" style="font-size: 12pt; text-indent: 8%">(a)&nbsp;The Company may terminate the Engagement immediately on the occurrence of any of the
following events: (i)&nbsp;the Consultant&#146;s criminal conviction; (ii)&nbsp;the Consultant&#146;s breach of any
provision of the Executive Agreement by and between the Executive and the Company, dated May&nbsp;22,
2013, and as amended from time to time (the &#147;<U>Executive Agreement</U>&#148;), or this Agreement,
including, without limitation, the restrictive covenants in such agreements; (iii)&nbsp;the Consultant&#146;s
willful misconduct, fraud, dishonesty or breach of trust which is materially injurious to the
Company; or (iv)&nbsp;the Consultant&#146;s failure to perform the Consulting Services in accordance with the
reasonable instruction of the Company. On termination of this Agreement pursuant to this Section
3(a), the Consultant shall not be entitled to receive payments of any further portion of the
Consulting Fee (as defined below), except for payment of any portion of the Consulting Fee owing
prior to the date of termination. Following termination of this Agreement, the Consultant shall
have no rights, and hereby expressly waives all rights which he might otherwise have had under law
or under this Agreement had it not been terminated, to recover all costs, charges, damages,
payments or benefits of any sort from the Company.


<P align="left" style="font-size: 12pt; text-indent: 8%">(b)&nbsp;In the event of the Company&#146;s termination of the Consultant at any time after a Change of
Control and before the end of the Term, The Consultant shall not be required to render the
Consulting Services after such date, and the Company shall pay to the Consultant any unpaid portion
of the Consulting Fee. &#147;<U>Change of Control</U>&#148; has the meaning given such term in the
Executive Agreement. To the extent permissible under existing tax laws, payment of the unpaid
portion pursuant to this Section 3(b) shall be made in a lump sum, within 30&nbsp;days following the
date of the Consultant&#146;s termination.


<P align="left" style="font-size: 12pt; text-indent: 4%">4.&nbsp;<U><B>Compensation</B></U>. As consideration for the Consulting Services the Company shall pay
to the Consultant a fee of $100,000 per year (the &#147;<U>Consulting Fee</U>&#148;), commencing on the
Effective Date, payable in accordance with the Company&#146;s regular practices, but no less frequently
than monthly. The Company shall not withhold any tax or tax deposit from payments made to the
Consultant hereunder, and the Consultant shall hold the Company harmless from and against any and
all liability to any taxing authority, relative to the payments made by the Company to the
Consultant pursuant to this Agreement. The Consultant shall not be entitled to any payments or
benefits other than those provided under this Agreement. As an independent contractor, the
Consultant will not be covered by any of the Company&#146;s employee benefit plans.


<P align="left" style="font-size: 12pt; text-indent: 4%">5.&nbsp;<U><B>Restrictive Covenants</B></U>.


<P align="left" style="font-size: 12pt; text-indent: 8%">(a)&nbsp;<I>Non-competition</I>. At all times prior to the 18-month anniversary of the end of the Term,
the Consultant shall not engage, anywhere within New York State or in any area outside of New York
State in which the Company or any of its subsidiaries, affiliates or joint ventures (collectively,
the &#147;Companies&#148;) conducts business, whether directly or indirectly, or through any employee, agent,
attorney or any other person or party acting on behalf of the Consultant, as principal, owner,
officer, director, agent, employee, consultant or partner, in the management of a bank holding
company, commercial bank, savings bank, credit union or any other financial services provider that
competes with the Companies or their products or programs (&#147;<U>Restricted Activities</U>&#148;),
provided that the foregoing shall not restrict the Consultant from engaging in any Restricted
Activities which the Company directs the Consultant to undertake or which the Company otherwise
expressly authorizes. The foregoing shall not restrict the Consultant from owning less than five
percent of the outstanding capital stock of any company which engages in Restricted Activities,
provided that the Consultant is not otherwise involved with such company as an officer, director,
agent, employee or consultant. The Consultant agrees that this Section&nbsp;5(a), the scope of the
territory covered, the actions restricted thereby, and the duration of such covenant are reasonable
and necessary to protect the legitimate business interests of the Companies.


<P align="left" style="font-size: 12pt; text-indent: 8%">(b)&nbsp;<I>Non-solicitation</I>. At all times prior to the 18-month anniversary of the end of the Term,
the Consultant shall not, directly or indirectly, without the written consent of the Company (i)
recruit or solicit for employment any employee, representative or agent of the Companies or
encourage any such employee, representative or agent to leave his or her employment or discontinue
his or her relationship with the Companies, or (ii)&nbsp;solicit, induce or influence any customer,
supplier, lessor or any other person or entity which has a business relationship with the Companies
to discontinue or reduce the extent of such relationship with the Companies.


<P align="left" style="font-size: 12pt; text-indent: 8%">(c)&nbsp;<I>Confidentiality</I>.


<P align="left" style="font-size: 12pt; text-indent: 12%">(i)&nbsp;The Consultant has become acquainted with and will have access to confidential or
proprietary information and trade secrets related to the business of the Companies, including but
not limited to: (1)&nbsp;trade secrets, business plans, business processes, practices, methods,
software programs, operating plans, marketing plans, financial reports, credit information, lending
practices, operating data, budgets, pricing strategies and information, terms of agreements with
customers and others, customer lists, reports, correspondence, security procedures, tapes, disks,
tangible property and specifications owned by or used in the Companies&#146; businesses; (2)&nbsp;operating
strengths and weaknesses of the Companies&#146; officers, directors, employees, agents, suppliers and
customers; (3)&nbsp;information pertaining to future developments such as, but not limited to, software
development or enhancement, future marketing plans or ideas, and plans or ideas for new services or
products; (4)&nbsp;all information which is learned or developed by the Consultant in the course and
performance of his duties under the Executive Agreement or this Agreement, including without
limitation, reports, information and data relating to the Companies&#146; acquisition strategies; and
(5)&nbsp;other tangible and intangible property which is used in the business and operations of the
Companies but not made publicly available ((1) through (5)&nbsp;are, collectively, the &#147;<U>Confidential
Information</U>&#148;). The Consultant understands that the above list is not exhaustive and that the
Confidential Information also includes other information that is marked or otherwise identified as
confidential or proprietary or that would otherwise appear to a reasonable person to be
confidential or proprietary in the context and circumstances in which the information is known or
used. The Consultant understands and acknowledges that the Confidential Information and the
Companies&#146; ability to reserve it for its exclusive knowledge and benefit is of great competitive
importance and commercial value to the Companies and that improper use or disclosure of the
Confidential Information by the Consultant might cause the Companies to incur financial costs, loss
of business advantages, liability under confidentiality agreement with third parties, civil damages
and criminal penalties.


<P align="left" style="font-size: 12pt; text-indent: 12%">(ii)&nbsp;Both during and after the conclusion of the Term, the Consultant will not, directly or
indirectly, disclose, use or make known for the Consultant&#146;s or another&#146;s benefit any of the
Confidential Information or use any of the Confidential Information in any way except in the best
interests of the Companies in the performance of the Consultant&#146;s duties to the Companies. The
Consultant will take all necessary steps to safeguard the Confidential Information. In addition,
to the extent that any of the Companies has entered into or enters into a confidentiality agreement
with any other person or entity, the Consultant agrees to comply with the terms of such
confidentiality agreement and to be subject to the restrictions and limitations imposed by such
agreement as if the Consultant was a party thereto. Nothing herein shall be construed to prevent
disclosure of any of the Confidential Information to the extent required by applicable law or
regulation, or pursuant to a valid order of a court of competent jurisdiction or an authorized
government agency, provided that the disclosure does not exceed the extent of disclosure required
by such law, regulation or order. The Consultant shall promptly provide written notice of any such
order to an authorized officer of the Companies.


<P align="left" style="font-size: 12pt; text-indent: 8%">(d)&nbsp;<I>Survival</I>. The restrictive covenants set forth in this Section&nbsp;5 shall survive the
termination of this Agreement.


<P align="left" style="font-size: 12pt; text-indent: 4%">6.&nbsp;<U><B>Miscellaneous</B></U>.


<P align="left" style="font-size: 12pt; text-indent: 8%">(a)&nbsp;<I>Independent Contractor</I>. Nothing in this Agreement shall, in any way, be construed to
constitute the Consultant as an agent, employee or representative of the Company, and the
Consultant shall perform the Consulting Services as an independent contractor. The Consultant
acknowledges and agrees that he will use his own discretion in performing the tasks assigned. The
Consultant shall not have any authority to create or assume in the Company&#146;s name or on its behalf
any obligation, expressed or implied, or to act or purport to act as the Company&#146;s agent or legally
empowered representative for any purpose whatsoever. Neither party shall be liable to any third
party in any way for any engagement, obligation, commitment, contract, representation, transaction
or act or omission of the other, except as expressly provided herein.


<P align="left" style="font-size: 12pt; text-indent: 8%">(b)&nbsp;<I>Consultant Acknowledgement</I>. The Consultant acknowledges that he has had the opportunity
to discuss this Agreement with and obtain advice from his private attorney, has had sufficient time
to and has carefully read and fully understands all of the provisions of this Agreement, and is
knowingly and voluntarily entering into this Agreement.


<P align="left" style="font-size: 12pt; text-indent: 8%">(c)&nbsp;<I>Entire Agreement; Amendment</I>. Except for the Executive Agreement and the Supplemental
Retirement Benefit Agreement, this Agreement will supersede any and all existing oral or written
agreements, representations, or warranties between the Consultant and the Company relating to the
subject matter hereof. No provision of this Agreement may be amended or modified unless such
amendment or modification is agreed to in writing and signed by the Consultant and by the Company.


<P align="left" style="font-size: 12pt; text-indent: 8%">(d)&nbsp;<I>Governing Law</I>. The validity, construction, interpretation, administration and effect of
this Agreement shall be governed by the substantive laws, but not the choice of law rules, of the
State of New York.


<P align="left" style="font-size: 12pt; text-indent: 8%">(e)&nbsp;<I>Construction</I>. The failure of a party to insist upon strict adherence to any term of this
Agreement on any occasion shall not be considered a waiver thereof or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term of this Agreement.
If any term or provision of this Agreement is declared illegal or unenforceable by any court of
competent jurisdiction and cannot be modified to be enforceable, such term or provision shall
immediately become null and void, leaving the remainder of this Agreement in full force and effect.
Section headings are used herein for convenience of reference only and shall not affect the
meaning of any provision of this Agreement. Whenever the context so requires, the use of the
singular shall be deemed to include the plural and vice versa. This Agreement may be executed in
any number of counterparts, each of which so executed shall be deemed to be an original, and such
counterparts will together constitute but one agreement.


<P align="center" style="font-size: 12pt">* * * * *



<P align="left" style="font-size: 12pt; text-indent: 4%">IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day first above
written.


<P align="left" style="font-size: 12pt"><B>FINANCIAL INSTITUTIONS, INC.</B>

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><I>/s/ Martin K. Birmingham</I></B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B><I>/s/ Richard J. Harrison</I></B></TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name (print):
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Martin K. Birmingham
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Richard J. Harrison</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and CEO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 12pt"><U><B>SCHEDULE A</B></U><BR>
<B>CONSULTING SERVICES</B>



<P align="left" style="font-size: 12pt">The Consulting Services shall include the following:



<P align="left" style="margin-left:4%; font-size: 12pt">Advice regarding strategic direction and credit monitoring for retail lending, particularly
indirect.



<P align="left" style="margin-left:4%; font-size: 12pt">Advice regarding capital markets and securitization.



<P align="left" style="margin-left:4%; font-size: 12pt">Advice and services related to Company mergers and acquisitions, including the evaluation of
potential transactions.



<P align="left" style="margin-left:4%; font-size: 12pt">Mentoring and coaching those executives who assume the Consultant&#146;s prior duties as the
Chief Operating Officer of the Company.



<P align="left" style="margin-left:4%; font-size: 12pt">Assistance with Board of Director relations.



<P align="left" style="margin-left:4%; font-size: 12pt">Advice regarding the Company&#146;s community involvement.



<P align="left" style="margin-left:4%; font-size: 12pt">Acting as an ambassador of the Company for new business.



<P align="center" style="font-size: 10pt; display: none">




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