<SEC-DOCUMENT>0001193125-16-723649.txt : 20160928
<SEC-HEADER>0001193125-16-723649.hdr.sgml : 20160928
<ACCEPTANCE-DATETIME>20160928163855
ACCESSION NUMBER:		0001193125-16-723649
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20160927
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:		20160928
DATE AS OF CHANGE:		20160928

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BAR HARBOR BANKSHARES
		CENTRAL INDEX KEY:			0000743367
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				010393663
		STATE OF INCORPORATION:			ME
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13349
		FILM NUMBER:		161907335

	BUSINESS ADDRESS:	
		STREET 1:		82 MAIN ST
		STREET 2:		PO BOX 400
		CITY:			BAR HARBOR
		STATE:			ME
		ZIP:			04609-0400
		BUSINESS PHONE:		2072883314

	MAIL ADDRESS:	
		STREET 1:		82 MAIN ST
		STREET 2:		PO BOX 400
		CITY:			BAR HARBOR
		STATE:			ME
		ZIP:			04609-0400
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d270916d8k.htm
<DESCRIPTION>8-K
<TEXT>
<HTML><HEAD>
<TITLE>8-K</TITLE>
</HEAD>
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 <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM 8-K
</B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>CURRENT REPORT </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant
to Section 13 or 15(d) </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>of the Securities Exchange Act of 1934 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Date of Report (Date of earliest event reported) </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>September 27, 2016 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>Bar Harbor
Bankshares&nbsp; </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact name of Registrant as specified in its Charter) </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><B>Maine</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>001-13349</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>01-0393663</B></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(State or other jurisdiction</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>of incorporation)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Commission</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>File No.)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(IRS Employer</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Identification Number)</B></P></TD></TR></TABLE>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>

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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PO Box 400</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>82 Main Street</B></P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Bar
Harbor, Maine</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center"><B>04609-0400</B></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" ALIGN="center"><B>(Address of principal executive offices)</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B>(Zip Code)</B></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Registrant&#146;s telephone number, including area code: (207) 288-3314 </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">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: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="FONT-FAMILY:WINGDINGS">&#168;</FONT></TD>
<TD ALIGN="left" VALIGN="top">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>

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<TD WIDTH="9%" VALIGN="top" ALIGN="left"><B>Item&nbsp;5.02</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. </B></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">On September 27, 2016, Bar Harbor Bankshares (the &#147;Company&#148;) and Bar Harbor Bank &amp; Trust (the &#147;Bank&#148;) appointed
Josephine Iannelli as Executive Vice President, Chief Financial Officer and Treasurer of the Company and the Bank, effective as of October 23, 2016. Bradford Kopp, the Company&#146;s Interim Chief Financial Officer, will continue to serve until such
date.&nbsp;In addition, on September 28, 2016, Richard B. Maltz, Executive Vice President and Chief Risk Officer, was promoted to Executive Vice President and Chief Operating Officer of the Company and the Bank, effective immediately.</P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Prior to this appointment, Ms. Iannelli served as Senior Executive Vice President, Chief Financial Officer of Berkshire Hills Bancorp, Inc.
(&#147;Berkshire&#148;), having previously served Berkshire as Executive Vice President, Chief Financial Officer since January 2014. She was the principal financial and accounting officer of Berkshire, having joined as Senior Vice President, Chief
Accounting Officer in March 2013. Previously, Ms. Iannelli had senior accounting policy responsibilities at several banks, including PNC Financial, National City Corporation and KeyCorp.&nbsp;Ms. Iannelli is 44 years old. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">In connection with Ms. Iannelli&#146;s appointment as our Chief Financial Officer and Treasurer, the Company and the Bank entered into an
employment agreement with her on September 27, 2016 (the &#147;Employment Agreement&#148;). The initial term of the Employment Agreement is two years. In the absence of notice of intent not to extend the Employment Agreement, then the Employment
Agreement will automatically extend for additional one year terms. The Employment Agreement includes certain restrictive covenants which survive Ms. Iannelli&#146;s termination of employment for a period of one year with respect to competition with
us and non-solicitation of our customers and employees. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Under the terms of the Employment Agreement, Ms. Iannelli is entitled to receive
an initial annual base salary of $350,000, which amount is not subject to automatic increase, but will be reviewed annually, and further provides that her initial base compensation will not be reduced downward during the initial two year term of the
Employment Agreement. We have also agreed under the Employment Agreement to pay Ms. Iannelli certain other consideration and benefits, including a signing bonus of $100,000 payable upon commencement of her employment and a monthly car allowance
initially set at $833.00 per month. Ms. Iannelli will also be eligible to participate in our annual incentive and long term incentive plans previously approved by the Board.&nbsp;Other benefits under the Employment Agreement include participation in
our Company benefit plans provided to other similarly situated executives and reasonable paid vacation and sick leave benefits consistent with our vacation and sick leave policies. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Ms. Iannelli&#146;s Employment Agreement also provides for certain benefits and payments to her in the event she is terminated without cause
(or if she resigns with good reason) within twelve months following a change in control of our Company as defined in the Employment Agreement. In addition to accrued benefits, her payment upon a change and control and termination of employment will
include a lump sum payment equal to two times her base compensation as of the effective date of termination of employment, subject to applicable regulatory constraints. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The above description of the Employment Agreement does not purport to be complete and is qualified in its entirety by reference to the full
text of the Employment Agreement, a copy of which is filed herewith as Exhibit 10.1 and is incorporated herein by reference.</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">Biographical
information with respect to Mr. Maltz is contained in the Company&#146;s definitive proxy statement for the 2016 annual meeting of shareholders filed with the Securities and Exchange Commission (the &#147;SEC&#148;) on March 23, 2016 and is
incorporated herein by reference. In connection with his promotion, on September 28, 2016 Mr. Maltz entered into a new Change of Control, Confidentiality and Non-Competition Agreement (&#147;Change in Control Agreement&#148;) with the Company,
replacing the change in control agreement filed as Exhibit 10.1 to Form 8-K, filed with the SEC on July 11, 2011. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">The Change in Control
Agreement provides for the payment of severance, generally in the form of a lump sum cash payment equal to 2.0 times Mr. Maltz&#146;s base compensation and the continuation of certain benefits to Mr. Maltz in the event that Mr. Maltz&#146;s
employment terminates, including for &#147;good reason&#148; and other than as a result of &#147;disability&#148; or for &#147;cause,&#148; as each are defined in the Change in Control Agreement, and his separation from service occurs within twelve
(12) months after a change in control of the Company.</P>

<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The above description of the Change in Control Agreement does not purport to be complete and is
qualified in its entirety by reference to the full text of the Change in Control Agreement, a copy of which is filed herewith as Exhibit 10.2 and is incorporated herein by reference.</P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><B>Item&nbsp;9.01</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Financial Statements and Exhibits. </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(d)</TD>
<TD ALIGN="left" VALIGN="top">Exhibits </TD></TR></TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The following exhibit is filed herewith: </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="92%"></TD></TR>
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<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Exhibit</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1.00pt solid #000000; width:28.45pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Number</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:39.50pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Description</B></P></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>10.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Employment Agreement, dated as of September 27, 2016 and effective as of October 23, 2016, between Bar Harbor Bankshares, Bar Harbor Bank &amp; Trust and Josephine Iannelli.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>10.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Change in Control, Confidentiality and Noncompetition Agreement, dated as of September 28, 2016, between the Bar&nbsp;Harbor Bankshares and Richard B. Maltz.</TD></TR>
</TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">SIGNATURES </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="2%"></TD>
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<TD WIDTH="61%"></TD></TR>


<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3">Bar Harbor Bankshares</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Date: September 28, 2016</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Marsha C. Sawyer</P></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marsha C. Sawyer</TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate Clerk</TD></TR>
</TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Exhibit Index </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD></TD>
<TD VALIGN="bottom" WIDTH="6%"></TD>
<TD WIDTH="91%"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:28.45pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Exhibit<BR>Number</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:39.50pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Description</B></P></TD></TR>


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<TD VALIGN="top" NOWRAP>10.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Employment Agreement, dated as of September 27, 2016 and effective as of October 23, 2016, between Bar Harbor Bankshares, Bar Harbor Bank &amp; Trust and Josephine Iannelli.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>10.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Change in Control, Confidentiality and Noncompetition Agreement, dated as of September 28, 2016, between the Bar&nbsp;Harbor Bankshares and Richard B. Maltz.</TD></TR>
</TABLE>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>d270916dex101.htm
<DESCRIPTION>EX-10.1
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<TITLE>EX-10.1</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>EMPLOYMENT AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>THIS EMPLOYMENT AGREEMENT</B> (the &#147;<U>Agreement</U>&#148;) is made this 27th day of September, 2016, by and between <B>BAR HARBOR
BANKSHARES</B>, a Maine corporation with its headquarters located in Bar Harbor, Maine (the &#147;<U>Company</U>&#148;), <B>BAR HARBOR BANK&nbsp;&amp; TRUST</B>, a wholly-owned subsidiary of the Company (the &#147;<U>Bank</U>&#148;) (together, the
&#147;<U>Employer</U>&#148;), and <B>JOSEPHINE IANNELLI</B>, residing at the address on file with the Employer (the &#147;<U>Executive</U>&#148;). </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">W I T N E S S E T H: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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: </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>DEFINITIONS</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.1. &#147;<U>Cause</U>&#148; shall mean: (i)&nbsp;the Executive is
charged with or convicted of, or pleads guilty, no contest or nolo contendere to, or enters into a pre-trial diversion program in connection with, any crime or criminal offense involving dishonesty, breach of trust, money laundering, or the illegal
manufacture, sale or distribution of, or trafficking in, controlled substances; (ii)&nbsp;the Executive&#146;s gross or willful misconduct, gross or willful negligence, or gross insubordination in connection with the performance of her duties,
functions or responsibilities for the Employer; (iii)&nbsp;the Executive engages in or commits an act of fraud, misappropriation, material dishonesty, theft, embezzlement, conversion, self-dealing, obtaining funds or property under false pretenses,
or other material malfeasance against or in connection with the business of the Company, the Bank, or any of their subsidiaries or affiliates; (iv)&nbsp;the Executive breaches any fiduciary duty she owes to the Employer; (v)&nbsp;the Executive
materially violates any federal, state or local securities or banking laws, rules or regulations, or any rules or regulations of any applicable regulatory or self-regulatory organization, and such violation, if curable under the circumstances (as
determined by the Employer, in its reasonable discretion), is not cured to the Employer&#146;s reasonable satisfaction within thirty (30)&nbsp;days after the Executive&#146;s receipt of written notice of such breach (the &#147;<U>Cause Cure
Period</U>&#148;); (vi)&nbsp;the Executive&#146;s material breach of the Company&#146;s drug and alcohol use, harassment and discrimination-free work environment, or workplace violence policies, or any other similarly material written policy or rule
of the Employer, and such breach, if curable under the circumstances (as determined by the Employer, in its reasonable discretion), is not cured to the Employer&#146;s reasonable satisfaction within the Cause Cure Period; and/or (vii)&nbsp;the
Executive&#146;s material breach of Section&nbsp;10 or Section&nbsp;11 of this Agreement and </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
such breach, if curable under the circumstances (as determined by the Employer, in its reasonable discretion), is not cured to the Employer&#146;s reasonable satisfaction within the Cause Cure
Period. For purposes of clauses (v), (vi)&nbsp;and (vii)&nbsp;of this paragraph, if the Executive cures the specified violation or breach during the Cause Cure Period, Cause shall be deemed not to have occurred, provided that the Executive may cure
a specific violation or breach for which she is entitled to notice only one (1)&nbsp;time and, if the same violation breach occurs again, the violation or breach shall constitute Cause. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.2. &#147;<U>Change in Control</U>&#148; shall mean the occurrence of any one of the following events: </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.2.1.</TD>
<TD ALIGN="left" VALIGN="top">Any person, including a group (as such term is used in Section&nbsp;13(d) of the Securities Exchange Act of 1934, as amended (the &#147;<U>Exchange Act</U>&#148;)), becomes the beneficial owner (as determined pursuant
to Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company or the Bank representing more than fifty percent (50%)&nbsp;of the combined voting power of the Company&#146;s or the Bank&#146;s then outstanding
securities, other than as a result of an issuance of securities initiated by the Company or the Bank in the ordinary course of its business; or </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.2.2.</TD>
<TD ALIGN="left" VALIGN="top">The Company or the Bank is party to a Business Combination (as hereinafter defined) unless, following consummation of the Business Combination, more than fifty percent (50%)&nbsp;of the outstanding voting securities of
the resulting entity are beneficially owned, directly or indirectly, by the holders of the Company&#146;s or the Bank&#146;s outstanding voting securities immediately prior to the Business Combination in substantially the same proportions as those
existing immediately prior to the Business Combination; or </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.2.3.</TD>
<TD ALIGN="left" VALIGN="top">The stockholders of the Company or the Bank approve a plan of complete liquidation of the Company or the Bank or an agreement for the sale or disposition by the Company or the Bank of all or substantially all of the
Company&#146;s or the Bank&#146;s assets to another person or entity that is not a wholly-owned subsidiary of the Company or the Bank. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">For purposes of this Section&nbsp;1.2, a Business Combination means any cash tender or exchange offer, merger or other business combination,
sale of stock, or sale of all or substantially all of the assets, or any combination of the foregoing transactions. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">For purposes of this
Section&nbsp;1.2, a Change in Control shall exclude any internal corporate change, reorganization, or other such event, and a purchase of securities or assets of the Company or the Bank by any employee benefit plan maintained by the Company or the
Bank, which occurred prior to or may occur following the Effective Date of this Agreement. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.3. &#147;<U>Code</U>&#148; shall mean the Internal Revenue Code of 1986, as amended, together
with the rules and regulations promulgated thereunder. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.4. &#147;<U>Confidential Information</U>&#148; 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, compiled or had access to, or had obtained or compiled on her 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: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.4.1.</TD>
<TD ALIGN="left" VALIGN="top">Financial information regarding the Company, the Bank, or any of their subsidiaries or affiliates; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.4.2.</TD>
<TD ALIGN="left" VALIGN="top">Personnel data, including compensation arrangements relating to any employees of the Company, the Bank, or any of their subsidiaries or affiliates (excluding data regarding the Executive that is part of her personnel
file); </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.4.3.</TD>
<TD ALIGN="left" VALIGN="top">Internal plans, practices, and procedures of the Company, the Bank, or any of their subsidiaries or affiliates; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.4.4.</TD>
<TD ALIGN="left" VALIGN="top">The names, personal identifying information, portfolio information, investment strategies, requirements, lending, deposit or other account information, or any similar information, of any customers, clients, or prospects
of the Company, the Bank, or any of their subsidiaries or affiliates; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.4.5.</TD>
<TD ALIGN="left" VALIGN="top">Business methods and marketing strategies of the Company, the Bank, or any of their subsidiaries or affiliates; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.4.6.</TD>
<TD ALIGN="left" VALIGN="top">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 </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.4.7.</TD>
<TD ALIGN="left" VALIGN="top">The terms and conditions of this Agreement and any documents or instruments executed in connection herewith that are not of public record. </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.5. &#147;<U>Disability</U>&#148; shall mean a condition: (a)&nbsp;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)&nbsp;months; or (b)&nbsp;which results in her 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)&nbsp;months, income replacement benefits for a period of not less than three (3)&nbsp;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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.6.
&#147;<U>Effective Date</U>&#148; shall mean the close of business on October&nbsp;27, 2016. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.7. &#147;<U>Good Reason</U>&#148; shall
mean the occurrence of one or more of the following events without the consent of the Executive: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.7.1.</TD>
<TD ALIGN="left" VALIGN="top">A material diminution in the Executive&#146;s Base Compensation; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.7.2.</TD>
<TD ALIGN="left" VALIGN="top">A material diminution or adverse change in the Executive&#146;s authority, duties, or responsibilities; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.7.3.</TD>
<TD ALIGN="left" VALIGN="top">A material diminution or adverse change in the authority, duties, or responsibilities of the person to whom the Executive is required to report; </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.7.4.</TD>
<TD ALIGN="left" VALIGN="top">A material diminution or adverse change in the budget over which the Executive retains authority; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.7.5.</TD>
<TD ALIGN="left" VALIGN="top">A material change in the geographic location at which the Executive must perform a substantial portion of her services, which for purposes of this Agreement means a location that is more than one hundred
(100)&nbsp;miles from Bar&nbsp;Harbor, Maine; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.7.6.</TD>
<TD ALIGN="left" VALIGN="top">Any other action or inaction that constitutes a material breach by the Employer of this Agreement or any other agreement under which the Executive provides services to the Employer or the Employer provides compensation
or benefits to Executive; or </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">1.7.7.</TD>
<TD ALIGN="left" VALIGN="top">If the Employer delivers a Notice of Termination for Cause to the Executive pursuant to Section&nbsp;7.1 and it is determined by an arbitrator pursuant to Section&nbsp;13.4 that grounds for termination for Cause did not
in fact exist. </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.8. &#147;<U>Notice of Termination</U>&#148; shall mean the written communication provided to
the other party in the event of the Executive&#146;s termination of employment (i)&nbsp;by the Employer for Cause or on account of the Executive&#146;s Disability or (ii)&nbsp;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&#146;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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.9. &#147;<U>Restrictive Period</U>&#148; shall mean the period
commencing on the Effective Date and terminating on the one (1)&nbsp;year anniversary of the Executive&#146;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. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>EMPLOYMENT</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">As of the Effective Date, the Employer hereby employs the Executive,
and the Executive hereby accepts employment by the Employer, as the Chief Financial Officer of the Company, the Bank, Bar Harbor Trust Services, and other subsidiaries and affiliates of the Company and/or the Bank (the &#147;Company Group&#148;), on
the terms and conditions specified herein. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">3.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>TERM OF EMPLOYMENT</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.1. <U>Term</U>. The Executive&#146;s employment shall be
for a term of two (2)&nbsp;years commencing on the Effective Date and ending on the second anniversary of the Effective Date (the &#147;<U>Term</U>&#148;), unless terminated sooner pursuant to this Agreement. The Employer agrees to notify the
Executive not less than one hundred and twenty (120)&nbsp;days prior to the second anniversary of the Effective Date if it does not intend to extend the Executive&#146;s employment. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.2. <U>Extension</U>. In the absence of notice of intent not to extend this Agreement by the Employer, the Agreement shall be deemed
automatically extended for additional one (1)&nbsp;year terms commencing on the applicable anniversary of the Effective Date. After the initial extension of the Term, the Employer agrees to a like notice period and subsequent extensions of this
Agreement, unless and until the Employer and the Executive shall mutually agree to modify the terms of this Agreement. During any extension of this Agreement, as provided herein, all other provisions of this Agreement shall remain in effect. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">5 </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">3.3. <U>Expiration</U>. Upon expiration of this Agreement, pursuant to a notice of intention not
to extend in accordance with Section&nbsp;3.1, the Executive&#146;s employment with the Employer shall cease, and this Agreement shall terminate without further obligations to the Executive, except as provided under Section&nbsp;8.1. </P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">4.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>RESPONSIBILITIES AND OTHER ACTIVITIES</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Executive shall be employed as the
Chief Financial Officer of the Company Group 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 Board of Directors of the Company,
the Bank, or the member(s) of the Company Group, as applicable, and summarized in the job description attached hereto as <U>Exhibit C</U>. The Executive shall faithfully perform the duties of her positions as described herein; shall devote
substantially all of her business time and energies to the business and affairs of the Company Group; and shall use her best efforts, skills, and abilities to promote the Company Group&#146;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&#146;s performance of her responsibilities and duties hereunder or conflict with the
business of the Company Group for the benefit of any person or entity, unless the Executive receives the prior written consent of the Employer. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">5.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>COMPENSATION</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">5.1. <U>Base Compensation</U>. The Employer shall pay the
Executive an annual base salary of Three Hundred and Fifty Thousand Dollars ($350,000) (&#147;<U>Base Compensation</U>&#148;). The Base Compensation shall be paid in substantially equal installments in accordance with the Employer&#146;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&#146;s Board of Directors and may
be adjusted in the Company&#146;s sole discretion, provided that the Base Compensation may not be adjusted downwards during the initial Term. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">5.2.</TD>
<TD ALIGN="left" VALIGN="top"><U>Other Compensation</U>. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">5.2.1.</TD>
<TD ALIGN="left" VALIGN="top">The Executive shall be a participant in the Company&#146;s Annual Incentive Plan, in the form attached hereto as <U>Exhibit&nbsp;A</U> as may be amended from time to time in the Company&#146;s sole discretion, with her
participation in 2016 pro-rated as of her hire date. </TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">6 </P>


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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">5.2.2.</TD>
<TD ALIGN="left" VALIGN="top">The Executive shall be a participant in the Company&#146;s Long Term Incentive Plan, in the form attached hereto as <U>Exhibit B</U>, as may be amended from time to time in the Company&#146;s sole discretion.
</TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">5.2.3.</TD>
<TD ALIGN="left" VALIGN="top">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&#146;s evolving goals and objectives.
</TD></TR></TABLE> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">6.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>OTHER BENEFITS</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">6.1. <U>Benefits</U>. 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&#146;s sole discretion. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">6.2. <U>Vacation</U>. The Executive shall be entitled to reasonable paid vacations and sick leave benefits consistent with the Employer&#146;s
vacation and sick leave policies. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">6.3. <U>New Hire and Relocation</U>. &#147;The Employer will pay the Executive a signing bonus in the
total sum of $100,000, minus all applicable tax withholding and other deductions, to cover the entire Executive&#146;s moving and relocation expenses. The signing bonus shall be paid out to the Executive on the Employer&#146;s first or second
regular payroll date following the Executive&#146;s execution and delivery to the Employer of this Agreement and the Effective Date.&nbsp;The Executive promises and agrees to, and shall, promptly reimburse the Employer for the full amount of the
signing bonus in the event the Executive voluntarily terminates or resigns her employment with the Employer without Good Reason during the initial Term of the Agreement.&nbsp;In addition, the Employer shall provide housing assistance to the
Executive in the form of the use of a condominium unit owned by the Company in Ellsworth, Maine, for a period of up to six (6)&nbsp;months, subject to renewal for up to six (6)&nbsp;additional months upon reasonable notice from the Executive to the
Employer (with the value of any such benefit imputed to the Executive according to applicable tax requirements). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">6.4. <U>Additional
Benefits</U>. The Employer further agrees to provide the Executive with a monthly car allowance, initially set at $833.00 (pro-rated for any partial months), in accordance with the policies of the Employer for its similarly situated executive
employees (which amount and policies may be amended by the Employer from time to time), for all costs associated with the purchase or lease of a motor vehicle (including all lease, maintenance, insurance, gas and other charges or expenses). The
Employer shall also pay the cost of all dues associated with the Executive&#146;s membership to an area golf, yacht, or tennis club as well as the cost of the </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">7 </P>


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reasonable travel expenses associated with the Executive&#146;s spouse&#146;s attendance at business conferences with the Executive, with the value of such benefits imputed to the Executive
according to applicable tax requirements. Between the Effective Date and the first day of the month next following thirty (30)&nbsp;days from the Effective Date, the Employer shall also reimburse the Executive for her share of costs for continuation
coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (&#147;<U>COBRA</U>&#148;), if any. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">6.5.
<U>Reimbursements</U>. The Employer shall reimburse the Executive for all ordinary and necessary business expenses described in Code Section&nbsp;62(a)(2)(A) which are incurred by the Executive in the performance of her duties hereunder and which
are subject to reimbursement in accordance with the Employer&#146;s expense reimbursement policy, as in effect from time to time; provided, however, that: (i)&nbsp;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)&nbsp;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)&nbsp;the right to reimbursement is not subject to liquidation or exchange for another
benefit. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">7.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>TERMINATION</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This Agreement may terminate prior to the expiration of the Term in
accordance with this Section&nbsp;7. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7.1. <U>By the Employer For Cause</U>. The Employer may elect to terminate this Agreement and to
terminate the Executive&#146;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&#146;s employment for Cause during the Term, this
Agreement shall terminate without further obligations to the Executive, except as provided under Section&nbsp;8.2. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7.2. <U>By the
Employer Without Cause</U>. The Employer may elect to terminate this Agreement and to terminate the Executive&#146;s employment at any time by giving the Executive thirty (30)&nbsp;days&#146; prior written notice of her termination of employment.
The Executive&#146;s termination of employment shall occur on the date specified in such written notice. If the Employer terminates the Executive&#146;s employment without Cause during the Term, this Agreement shall terminate without further
obligations to the Executive, except as provided under Sections 8.3 and 8.5. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7.3. <U>By the Executive without Good Reason</U>. The
Executive may elect to terminate this Agreement and to voluntarily resign her employment at any time for any reason by giving </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">8 </P>


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the Employer not less than thirty (30)&nbsp;days&#146; prior written notice of her termination of employment. The Executive&#146;s termination of employment shall occur on the date specified in
such written notice, unless the Employer elects, in its sole discretion, to terminate the Executive&#146;s employment as of a date prior thereto. If the Executive terminates this Agreement pursuant to this Section&nbsp;7.3 during the Term, this
Agreement shall terminate without further obligations to the Executive, except as provided under Section&nbsp;8.2. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7.4. <U>By the
Executive for Good Reason</U>. The Executive may elect to terminate this Agreement and her employment for Good Reason within the two (2)-year period following the initial existence of the condition or conditions constituting 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)&nbsp;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 Sections 8.3 and 8.5. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7.5. <U>Death</U>. The Executive&#146;s employment shall terminate on account of the Executive&#146;s death. If the Executive&#146;s
employment is terminated on account of the Executive&#146;s death during the Term, this Agreement shall terminate without further obligations to the Executive&#146;s estate or other legal representatives under this Agreement, except as provided
under Section&nbsp;8.4. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">7.6. <U>Disability</U>. The Employer may elect to terminate this Agreement and to terminate the Executive&#146;s
employment on account of the Executive&#146;s Disability. Such termination shall be effective immediately upon Notice of Termination to the Executive. If the Executive&#146;s employment is terminated on account of the Executive&#146;s Disability
during the Term, this Agreement shall terminate without further obligations to the Executive, except as provided under Section&nbsp;8.4. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">8.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>PAYMENTS TO EXECUTIVE UPON TERMINATION</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">8.1. <U>Generally</U>. Regardless of the
reason for any termination of this Agreement and subject to this Section&nbsp;8, the Executive (or the Executive&#146;s estate or other legal representatives if the Agreement terminates on account of the Executive&#146;s death) shall be entitled to
receive (together, &#147;<U>Accrued Benefits</U>&#148;): </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">9 </P>


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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">8.1.1.</TD>
<TD ALIGN="left" VALIGN="top">Payment of the Executive&#146;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&#146;s termination of
employment, with such payment to be made in accordance with the Employer&#146;s compensation policies and procedures but in no event later than the date required by applicable law; </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">8.1.2.</TD>
<TD ALIGN="left" VALIGN="top">Payment of the Executive&#146;s earned but unused vacation time as of the effective date of the Executive&#146;s termination of employment, with such payment to be made in accordance with the Employer&#146;s vacation
pay policy; and </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">8.1.3.</TD>
<TD ALIGN="left" VALIGN="top">All rights and benefits (if any) to which the Executive is entitled due to her 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&#146;s termination of employment, such as The Bar Harbor Bankshares and Subsidiaries Equity Incentive Plan of 2009, the 2016 Executive Annual Incentive Program, 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. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">8.2. <U>Termination by the Employer for Cause or by the Executive without Good Reason</U>. If the Employer terminates the Executive&#146;s
employment for Cause pursuant to Section&nbsp;7.1 or the Executive terminates her employment without Good Reason pursuant to Section&nbsp;7.3, the Executive shall be entitled to receive payment of her Accrued Benefits. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">8.3. <U>Termination by the Employer without Cause or by the Executive for Good Reason</U>. If the Employer terminates the Executive&#146;s
employment without Cause pursuant to Section&nbsp;7.2 or the Executive terminates her employment for Good Reason pursuant to Section&nbsp;7.4, or if the Employer fails to renew this Agreement following the initial Term, the Executive shall be
entitled, subject to Section&nbsp;8.7, to receive: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">8.3.1.</TD>
<TD ALIGN="left" VALIGN="top">Payment of her Accrued Benefits; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">8.3.2.</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">A lump sum payment equal to either (i)&nbsp;two (2)&nbsp;times the Executive&#146;s Base Compensation as of the
effective date of the Executive&#146;s termination of employment in the event the Employer terminates the Executive&#146;s employment without Cause pursuant to Section&nbsp;7.2 or the Executive terminates her employment for Good Reason pursuant to
Section&nbsp;7.4, or </P></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">10 </P>


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<TD WIDTH="13%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">
(ii) two (2)&nbsp;times the Executive&#146;s Base Compensation as of the effective date of the Executive&#146;s termination of employment in the event the Employer fails to renew this Agreement
following the initial Term, with any such payment to be made as soon as reasonably practicable following the date as of which all requirements for payment have been satisfied (including, but not limited to, the execution and delivery of a Release,
as described and defined in Section&nbsp;8.7, and the passage of any applicable revocation period); provided, however, that, if payable, payment shall be made no later than the end of the &#147;applicable 2
<SUP STYLE="vertical-align:top">&nbsp;1</SUP>&#8260;<SUB STYLE="vertical-align:bottom">2</SUB> month period&#148; (as that phrase is used for purposes of the short-term deferral exemption to Code Section&nbsp;409A found in Treasury Regulation
Section&nbsp;1.409A-1(b)(4); and </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">8.3.3.</TD>
<TD ALIGN="left" VALIGN="top">A lump sum payment in an amount equal to the Employer&#146;s share of monthly premium contributions for medical, health, dental, and vision insurance benefits for the Executive and her eligible dependents, if any, for a
period of eighteen (18)&nbsp;months, calculated based upon the Employer&#146;s share of monthly premium contributions for such benefits as of the date of the Executive&#146;s termination of employment. Any taxable cash payments under this
Section&nbsp;8.3.3 are intended to be separation pay that is exempt from Code Section&nbsp;409A by reason of the exemption for certain separation pay set forth in Treasury Regulation Section&nbsp;1.409A-1(b)(9)(iii). </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If the Executive shall die prior to the receipt of all such payments under this Section&nbsp;8.3, the remainder of such payments shall be paid
to her surviving spouse or, if she has no surviving spouse, to her estate. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Notwithstanding the above, any amounts payable by reason of
the Executive&#146;s termination of employment under this Agreement that are subject to Code Section&nbsp;409A that would, but for this paragraph, be payable during the six (6)&nbsp;month period following the Executive&#146;s termination of
employment, shall not be paid during such six (6)&nbsp;month period, but shall be paid on the first day of the seventh (7<SUP STYLE="font-size:85%; vertical-align:top">th</SUP>)&nbsp;month following the Executive&#146;s termination of employment.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">8.4. <U>Termination due to Death or Disability</U>. In the event of termination of this Agreement on account of the Executive&#146;s
death or on account of the Executive&#146;s Disability pursuant to Section&nbsp;7.6, the Executive or the Executive&#146;s estate or other legal representatives shall be entitled to receive payment of the Executive&#146;s Accrued Benefits. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">8.5. <U>Termination in Connection with a Change in Control</U>. Notwithstanding the other provisions of this Section&nbsp;8, in the event that
(a)&nbsp;the Employer terminates the Executive&#146;s employment without Cause (excluding termination on account of death or Disability), or the </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">11 </P>


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Executive terminates her employment for Good Reason; and (b)&nbsp;such termination of the Executive&#146;s employment occurs in anticipation of or within the twelve (12)-month period after a
Change in Control, then the Employer shall pay, subject to Section&nbsp;8.7, the Executive the severance benefits described in this Section&nbsp;8.5 in lieu of the benefits described in Section&nbsp;8.3. The Executive&#146;s termination of
employment shall be deemed to be in anticipation of a Change in Control for purposes of this Section&nbsp;8.5 if it occurs within the six (6)-month period prior to the occurrence of the Change in Control. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In addition to any Accrued Benefits owed, the severance benefits described in this Section&nbsp;8.5 shall include the following: </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">8.5.1.</TD>
<TD ALIGN="left" VALIGN="top">A lump sum payment equal to two (2)&nbsp;times the Executive&#146;s Base Compensation as of the effective date of the Executive&#146;s termination of employment, with such payment to be made on the Employer&#146;s first
or second regular payroll date following the date as of which all requirements for payment have been satisfied (including, but not limited to, the execution and delivery of a Release, as described and defined in Section&nbsp;8.7, and the expiration
of any applicable revocation period); provided, however, that, if payable, payment shall be made no later than the end of the &#147;applicable 2 <SUP STYLE="vertical-align:top">&nbsp;1</SUP>&#8260;<SUB STYLE="vertical-align:bottom">2</SUB> month
period&#148; (as that phrase is used for purposes of the short-term deferral exemption to Code Section&nbsp;409A found in Treasury Regulation Section&nbsp;1.409A-1(b)(4); and </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">8.5.2.</TD>
<TD ALIGN="left" VALIGN="top">A lump sum payment in an amount equal to the Employer&#146;s share of monthly premium contributions for medical, health, dental, and vision insurance benefits for the Executive and her eligible dependents, if any, for a
period of eighteen (18)&nbsp;months, calculated based upon the Employer&#146;s share of monthly premium contributions for such benefits as of the date of the Executive&#146;s termination of employment. Any taxable cash payments under this
Section&nbsp;8.3.3 are intended to be separation pay that is exempt from Code Section&nbsp;409A by reason of the exemption for certain separation pay set forth in Treasury Regulation Section&nbsp;1.409A-1(b)(9)(iii). </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">8.6. <U>No Mitigation</U>. The Executive shall not be required to mitigate the amount of any severance benefits described in this
Section&nbsp;8 by seeking other employment, other than as provided in Sections 8.3.3 and 8.5.2 hereof. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">8.7. <U>Release</U>. Payment and
provision of the benefits described in Sections 8.3.2, 8.3.3, 8.5.1, and 8.5.2 hereof&nbsp;(the &#147;<U>Severance Payments</U>&#148;) are subject to and expressly conditioned upon the Executive&#146;s execution and delivery to the Employer of a
separation agreement and </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">12 </P>


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general release in favor of the Employer in form and substance satisfactory to the Employer (the &#147;<U>Release</U>&#148;), within thirty (30)&nbsp;days after the Executive&#146;s termination
of employment, which (after the expiration of any and all revocation periods and rights, if any) has, and not until it has, become fully effective and 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, employees, agents, insurers and certain others from any and all claims or potential claims arising from or related to the Executive&#146;s employment with
the Employer or the termination of that employment. In no event shall any Severance Payments be due or payable unless and until such Release becomes effective and all statutory rights to rescind, revoke or terminate the same have expired
unexercised. Payment and provision of the Severance Payments are also subject to and expressly conditioned upon the Executive&#146;s compliance with her obligations under Sections 10 and 11 of this Agreement. Anything in this Agreement to the
contrary notwithstanding, in the event the Executive is determined by a court or arbitrator to have breached any of the provisions of Sections 10 or 11 of this Agreement, then the Employer shall have no further obligation to pay or provide the
Severance Payments, and the Employer shall be entitled to obtain reimbursement from the Executive, and the Executive shall be obligated to reimburse the Company, for any Severance Payments previously paid to the Executive, in addition to any and all
other rights or remedies available to the Employer under this Agreement or applicable law. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">9.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>CODE SECTIONS 280G AND 4999</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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 &#147;affiliated group&#148; (as defined in Code Section&nbsp;1504(a), without
regard to Code Section&nbsp;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
&#147;<U>Payment</U>&#148;) would constitute an &#147;excess parachute payment&#148; (as defined in Code Section&nbsp;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&nbsp;280G or will be subject to the excise tax imposed by Code Section&nbsp;4999 (the &#147;<U>Reduced Payment</U>&#148;), 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&nbsp;9, the Employer shall reduce or eliminate the following portions of the Payment in successive order to reach the Reduced Payment: (i)&nbsp;first, the benefits portion of
the Payment, (ii)&nbsp;then, the cash portion of the Payment, and (iii)&nbsp;then, the equity portion of the Payment. Any determination required under this Section&nbsp;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 final, conclusive and binding upon the Executive. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">13 </P>


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<TD WIDTH="4%" VALIGN="top" ALIGN="left">10.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>CONFIDENTIALITY</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">10.1. The Executive recognizes and acknowledges that certain
assets of the Company, the Bank, and their affiliates or subsidiaries constitute Confidential Information. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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 her from any source by virtue of the
Executive&#146;s relationship with the Company, the Bank, or any of their subsidiaries or affiliates. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">10.4. Regardless of the reason for
her cessation of employment, the Executive will furnish such information as may be in the Executive&#146;s possession and will cooperate with the Company, the Bank, or any of their subsidiaries or affiliates as may reasonably be requested in
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 her obligations under this Section&nbsp;10.4. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">11.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>NON-COMPETITION AND NON-SOLICITATION</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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)&nbsp;&#147;air&#148; mile radius from Bar Harbor, Maine, the Executive shall not,
without specific written approval of the Employer, directly or indirectly, whether on behalf of or in conjunction with any entity or person, and whether for the Executive&#146;s own benefit or account or for the benefit or account of any person or
entity other than the Company, the Bank or any of their subsidiaries or affiliates: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">11.1.1.</TD>
<TD ALIGN="left" VALIGN="top">Engage in any insurance, brokerage, trust, banking, or other financial services as an owner, employee, independent contractor, consultant, director, representative, agent, or in any other capacity; </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">11.1.2.</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Directly or indirectly request, advise or otherwise cause any past, present, or future client or customer of the
Company, the Bank, or any of their </P></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">14 </P>


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<TD WIDTH="13%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">
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; </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">11.1.3.</TD>
<TD ALIGN="left" VALIGN="top">Directly or indirectly cause, suggest, or induce others to call on any past, present, or future client or customer of the Company, the Bank, or any of their subsidiaries or affiliates, for the purpose of
(i)&nbsp;selling or providing to any such client or customer any products or services offered by (or that compete with the products or services offered by) the Company, the Bank, or any of their subsidiaries or affiliates, (ii)&nbsp;causing such
client or customer to withdraw, curtail, or cancel his or her or its business with the Company, the Bank, or any of their subsidiaries or affiliates, or (iii)&nbsp;enticing, diverting, or taking away any such client or customer from the Company, the
Bank, or any of their subsidiaries or affiliates; or </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">11.1.4.</TD>
<TD ALIGN="left" VALIGN="top">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 client or customer of the Company, the Bank, or any of their subsidiaries or affiliates. </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">11.2. During the
Restrictive Period, the Executive shall not, whether personally or in association with others, and whether on behalf of or in conjunction with any entity or person, directly or indirectly, by any means or device whatsoever, (a)&nbsp;solicit, aid in
the solicitation of, induce, encourage, persuade or recruit, or attempt to solicit, induce, encourage, persuade or recruit, any person who is an employee, consultant, agent, or independent contractor of the Company, the Bank, or any of their
subsidiaries or affiliates, to terminate or alter such employment, retention or engagement or to apply for or accept employment or retention with any other person or entity, (b)&nbsp;hire or employ or attempt to hire or employ, or solicit for
employment or any other engagement, or cause any other person, firm, corporation or other entity to hire or employ or attempt to hire or employ or solicit for employment or any other engagement, any person who is an employee, consultant, agent, or
independent contractor of the Company, the Bank, or any of their subsidiaries or affiliates, or (c)&nbsp;solicit, encourage or induce any person or entity known by her to have a contractual relationship with the Company, the Bank, or any of their
subsidiaries or affiliates to discontinue, terminate, cancel or refrain from entering into or expanding such contractual relationship. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">11.3. <U>Other Agreements</U>. The Executive represents and warrants that neither the Executive&#146;s employment with the Employer nor the
Executive&#146;s performance of her obligations hereunder will conflict with or violate the Executive&#146;s obligations under the terms of any </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">15 </P>


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agreement with a previous employer or other party, including agreements to refrain from competing, directly or indirectly, with the business of such previous employer or other party. Prior to the
Effective Date hereof, the Executive has provided to the Employer copies of all restrictive covenants (e.g., non-solicitation and non-competition agreements) to which she is a party in order to ensure her compliance with this Section&nbsp;11.3. </P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">12.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>REFORMATION AND INJUNCTIVE RELIEF</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">12.1. <U>Reformation</U>. 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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">12.2. <U>Injunctive Relief</U>. The Executive acknowledges and agrees that, upon any breach by the Executive of her 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&nbsp;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. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">13.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>MEDIATION AND ARBITRATION</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">13.1. <U>Generally</U>. 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)&nbsp;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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">13.2. <U>ADR</U>. Except as otherwise expressly provided
hereunder, the parties agree that any and all disputes arising out of the Executive&#146;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 (&#147;<U>ADR</U>&#148;). The initiation of ADR </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">16 </P>


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shall first require mediation, and the parties agree to first try to settle any dispute through mediation. Mediation shall be initiated by either party by the serving of a written notice of
intent to mediate (a &#147;<U>Mediation Notice</U>&#148;) by one party upon the other. If no resolution has been mutually agreed through mediation within ninety (90)&nbsp;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 &#147;<U>Arbitration Notice</U>&#148;) by one party upon the other. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">13.3. <U>Mediation</U>. In the event that a party wishes to initiate ADR with respect to a claim, a Mediation Notice must be served on the
other party within six (6)&nbsp;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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">13.4. <U>Arbitration</U>. 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, as modified by this Agreement. 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)&nbsp;arbitrators so named shall name a third (3<SUP STYLE="font-size:85%; vertical-align:top">rd</SUP>)&nbsp;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. The arbitration award shall be accompanied by a written statement
containing a summary of the issues in controversy, a description of the award, and an explanation of the reasons for the award. 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)&nbsp;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. All arbitration proceedings shall be confidential </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">13.5. <U>Costs</U>. The cost of any mediation proceeding under this Section&nbsp;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. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">17 </P>


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<TD WIDTH="4%" VALIGN="top" ALIGN="left">14.</TD>
<TD ALIGN="left" VALIGN="top"><U><B>NOTICES</B></U><B>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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)&nbsp;if delivered by
overnight courier, on the day after mailing; and (c)&nbsp;if mailed, five days after mailing with postage prepaid. Any such notice will be sent as follows: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">To&nbsp;the&nbsp;Employer:</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Bar Harbor Bankshares</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">ATTN: Human Resources
Department</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">82 Main Street</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">P.O. Box 400</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Bar Harbor, ME 04609</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Fax: (207) 288-2811</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Email: <U>msawyer@bhbt.com</U></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>With copies to:</I></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Richard Schaberg, Esq.</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Hogan Lovells US LLP</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">555 Thirteenth Street NW</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, DC 20004</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Fax: (202) 637-5671</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Email:
<U>richard.schaberg@hoganlovells.com</U></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Jonathan Shapiro, Esq.</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Littler Mendelson, P.C.</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">One Monument Square</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Suite 600</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Portland, Maine 04101</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Exhibit Ax: (207) 775-6407</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Email:
<U>jonshapiro@littler.com</U></P></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">To the Executive:</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">At the address on file with the Employer</TD></TR>
</TABLE> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">15.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>SUCCESSORS AND ASSIGNS</U></B>. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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 her death any and all amounts due the Executive hereunder shall be paid to her surviving spouse, or if
she has no surviving spouse, to her estate, including without limitation any amounts due the Executive under Section&nbsp;8 hereof. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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 </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">18 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
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&#146;s obligations under this Agreement prior to the effective date of any such purchase, merger, consolidation,
or other transaction. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">15.4. The failure of the Employer to obtain from each successor the written agreement described in
Section&nbsp;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&nbsp;7.4. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">15.5. As used in this Section&nbsp;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&nbsp;15.3 or which otherwise becomes bound by all the terms
and provisions of this Agreement. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B></B>16.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>SURVIVAL</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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&nbsp;16, shall survive the termination of this Agreement and shall remain
fully enforceable. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">17.</TD>
<TD ALIGN="left" VALIGN="top"><U><B>NON-DUPLICATION</B></U>. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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&#146;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. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">18.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>CODE SECTION 409A</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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&nbsp;409A and the regulations thereunder or qualify for an exception from compliance.&nbsp;To that end, the Executive
and the Employer agree that: </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">19 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">18.1.1.</TD>
<TD ALIGN="left" VALIGN="top">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
&#147;separation from service&#148; within the meaning of Code Section&nbsp;409A; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">18.1.2.</TD>
<TD ALIGN="left" VALIGN="top">The expense reimbursements described in Section&nbsp;6.5 are intended to satisfy the requirements for a &#147;reimbursement plan&#148; described in Treasury Regulation Section&nbsp;1.409A-3(i)(1)(iv)(A) and shall be
administered to satisfy such requirements; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">18.1.3.</TD>
<TD ALIGN="left" VALIGN="top">The payments described in Sections 8.1.1 and 8.1.2 are intended to be excepted from compliance with Code Section&nbsp;409A pursuant to Treasury Regulation Section&nbsp;1.409A-1(b)(3) as payment made pursuant to the
Employer&#146;s customary payment timing arrangement; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">18.1.4.</TD>
<TD ALIGN="left" VALIGN="top">The benefits and payments described in Section&nbsp;8.1.3 are expected to comply with or be excepted from compliance with Code Section&nbsp;409A on their own terms; and </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">18.1.5.</TD>
<TD ALIGN="left" VALIGN="top">The welfare benefits provided in kind under Section&nbsp;8.5.2 are intended to be excepted from compliance with Code Section&nbsp;409A as welfare benefits pursuant to Treasury Regulation Section&nbsp;1.409A-1(a)(5)
and/or as benefits not includible in gross income. </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">18.2. With respect to payments under this Agreement, for purposes of
Code Section&nbsp;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&nbsp;409A pursuant to Treasury Regulation Section&nbsp;1.409A-1(b)(4) as short-term deferrals or as payments pursuant to a separation pay plan pursuant to Treasury
Regulation Section&nbsp;1.409A-1(b)(9)(iii). In the case of a payment that is not excepted from compliance with Code Section&nbsp;409A and that is not otherwise designated to be paid immediately upon a permissible payment event within the meaning of
Treasury Regulation Section&nbsp;1.409A-3(a), the payment shall not be made prior to, and shall, if necessary, be deferred to and paid on the later of the date sixty (60)&nbsp;days after the Executive&#146;s earliest separation from service (within
the meaning of Treasury Regulation Section&nbsp;1.409A-1(h)) and, if the Executive is a specified employee (within the meaning of Treasury Regulation Section&nbsp;1.409A-1(i)) on the date of her separation from service, the first day of the seventh
month following the Executive&#146;s separation from service. Furthermore, this Agreement shall be construed and administered in such manner as shall be necessary to effect compliance with Code Section&nbsp;409A. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">20 </P>


<p Style='page-break-before:always'>
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<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">19.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>COMPLIANCE WITH FDI ACT</U></B><B>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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&nbsp;18(k) of the Federal Deposit Insurance Act, 12 U.S.C. &#167;1828(k), and
any regulations promulgated thereunder. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">20.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>GENERAL PROVISIONS</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">20.1. <U>Entire Agreement</U>. This Agreement and the
attachments hereto constitute the entire understanding and agreement between the parties hereto with respect to the Employer&#146;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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">20.2. <U>Withholding</U>. 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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">20.3. <U>Governing Law</U>. 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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">20.4. <U>Modification and Waiver</U>. 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&nbsp;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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">20.5. <U>Cooperation</U>. 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. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">21 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">20.6. <U>Captions</U>. 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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">20.7. <U>Severability</U>. 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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">20.8. <U>Counterparts</U>. This Agreement may be executed in any number of counterparts with the same effect as if all
Parties hereto had signed the same document.&nbsp;All counterparts shall be construed together and shall constitute one Agreement.&nbsp;This Agreement, to the extent signed and delivered by means of a facsimile machine or PDF, shall be treated in
all manner and respects as an original signed agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. </P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">21.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>ACKNOWLEDGEMENT</U>.</B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Executive acknowledges that she has had a full and complete
opportunity to review the terms, enforceability, and implications of this Agreement; that she 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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">[T<SMALL>HE</SMALL> <SMALL>NEXT</SMALL> <SMALL>PAGE</SMALL> <SMALL>IS</SMALL> <SMALL>THE</SMALL> <SMALL>SIGNATURE</SMALL> <SMALL>PAGE</SMALL>.]
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">22 </P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>IN WITNESS WHEREOF, </B>the parties have executed this Agreement as of the date and year first
written above. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>
<TD WIDTH="42%"></TD>
<TD VALIGN="bottom"></TD>
<TD WIDTH="3%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="4%"></TD></TR>


<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Witness:</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3"><B>BAR HARBOR BANKSHARES</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Witness</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Curtis C. Simard</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Curtis C. Simard</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Title:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">President &amp; CEO</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="4"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Witness:</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3"><B>BAR HARBOR BANK &amp; TRUST</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Curtis C. Simard</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Witness</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Name:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Curtis C. Simard</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
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<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Title:</TD>
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<TD VALIGN="bottom">President &amp; CEO</TD>
<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="top">Witness:</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3"><B>EXECUTIVE</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Witness</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Josephine Iannelli</P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="3">JOSEPHINE IANNELLI</TD>
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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>d270916dex102.htm
<DESCRIPTION>EX-10.2
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<TITLE>EX-10.2</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.2 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>CHANGE IN CONTROL, CONFIDENTIALITY, </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>AND NONCOMPETITION AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>THIS CHANGE IN CONTROL, CONFIDENTIALITY AND NONCOMPETITION AGREEMENT</B> is made and entered into this 28th day of September, 2016 by and
between <B>BAR HARBOR BANKSHARES</B>, a Maine corporation with its headquarters located in Bar Harbor, Maine (hereinafter, &#147;the Company&#148;), and<B> Richard B. Maltz</B>, a resident of Hampden, Maine (hereinafter, &#147;the
Executive&#148;).<B> </B></P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">W I T N E S S E T H: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, Bar Harbor Bank and Trust is a wholly-owned first tier banking subsidiary of Bar Harbor Bankshares, and Bar Harbor Trust Services is
a second tier non-depository trust company subsidiary of Bar Harbor Bankshares; and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, the Executive is an employee of the
Employer; and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, the Employer wishes to retain the services of the Executive by providing the assurances contained herein. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">NOW, THEREFORE, the parties hereto do hereby agree as follows: </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top"><U><B>DEFINTIONS.</B></U> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.1.&nbsp;Bank shall mean Bar Harbor Bank and Trust. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.2.&nbsp;Base Compensation shall mean the annual base salary payable by the Employer to the Executive, excluding any bonuses, incentive
compensation and other forms of additional compensation. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.3&nbsp;Cause shall mean or be deemed to exist only in the event: (i)&nbsp;the
Executive is charged with or convicted of, or pleads guilty, no contest or nolo contendere to, or enters into a pre-trial diversion program in connection with, any crime or criminal offense involving dishonesty, breach of trust, money laundering, or
the illegal manufacture, sale or distribution of, or trafficking in, controlled substances; (ii)&nbsp;the Executive engages in or commits an act of gross or willful misconduct, gross or willful negligence, or gross insubordination in connection with
the performance of his or her duties, functions or responsibilities for the Employer; (iii)&nbsp;the Executive engages in or commits an act of fraud, misappropriation, material dishonesty, theft, embezzlement, conversion, self-dealing, obtaining
funds or property under false pretenses, or other material malfeasance against or in connection with the business of the Company, the Bank, Trust Services, or any of their subsidiaries or affiliates; (iv)&nbsp;the Executive breaches any fiduciary
duty he or she owes to the Employer; (v)&nbsp;the Executive materially violates any federal, state or local securities or banking laws, rules or regulations, or any rules or regulations of any </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
applicable regulatory or self-regulatory organization, and such violation, if curable under the circumstances (as determined by the Employer, in its reasonable discretion), is not cured to the
Employer&#146;s reasonable satisfaction within thirty (30)&nbsp;days after the Executive&#146;s receipt of written notice of such breach (the &#147;<U>Cause Cure Period</U>&#148;); (vi)&nbsp;the Executive&#146;s material breach of the Company&#146;s
drug and alcohol use, harassment and discrimination-free work environment, or workplace violence policies, or any other similarly material written policy or rule of the Employer, and such breach, if curable under the circumstances (as determined by
the Employer, in its reasonable discretion), is not cured to the Employer&#146;s reasonable satisfaction within the Cause Cure Period; and/or (vii)&nbsp;the Executive&#146;s material breach of Section&nbsp;7 of this Agreement and such breach, if
curable under the circumstances (as determined by the Employer, in its reasonable discretion), is not cured to the Employer&#146;s reasonable satisfaction within the Cause Cure Period. For purposes of clauses (v), (vi)&nbsp;and (vii)&nbsp;of this
paragraph, if the Executive cures the specified violation or breach during the Cause Cure Period, Cause shall be deemed not to have occurred, provided that the Executive may cure a specific violation or breach for which he or she is entitled to
notice only one (1)&nbsp;time and, if the same violation breach occurs again, the violation or breach shall constitute Cause. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.4.&nbsp;Change in Control shall mean the occurrence of any one of the following events: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) Any person, including a group (as such term is used in Section&nbsp;13(d) of the Securities Exchange Act of 1934, as
amended (the &#147;Exchange Act&#148;)) becomes the beneficial owner (as determined pursuant to Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Bar Harbor Bankshares representing more than fifty percent (50%)&nbsp;of the
combined voting power of Bar Harbor Bankshares&#146; then outstanding securities, other than as a result of an issuance of securities initiated by Bar Harbor Bankshares in the ordinary course of its business; or </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) Bar Harbor Bankshares is party to a Business Combination (as hereinafter defined) unless, following consummation of the
Business Combination, more than fifty percent (50%)&nbsp;of the outstanding voting securities of the resulting entity are beneficially owned, directly or indirectly, by the holders of Bar Harbor Bankshares&#146; outstanding voting securities
immediately prior to the Business Combination in substantially the same proportions as those existing immediately prior to the Business Combination; or </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) The stockholders of Bar Harbor Bankshares approve a plan of complete liquidation of Bar Harbor Bankshares or an agreement
for the sale or disposition by Bar Harbor Bankshares of all or substantially all of Bar Harbor Bankshares&#146; assets to another person or entity that is not a wholly owned subsidiary of Bar Harbor Bankshares. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">For purposes of this Section&nbsp;1.4, a Business Combination means any cash tender or exchange
offer, merger or other business combination, sale of stock, or sale of all or substantially all of the assets, or any combination of the foregoing transactions. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">For purposes of this Section&nbsp;1.4, a Change in Control shall exclude any internal corporate change, reorganization or other such event,
which occurred prior to or may occur following the date of this Agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.5. Code shall mean the Internal Revenue Code of 1986, as
amended, and as it may be amended from time to time, together with the rules and regulations promulgated under such code. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.6. Company
shall mean Bar Harbor Bankshares. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.7. Date of Termination shall mean: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) If the Executive incurs a separation from service for Disability, thirty (30)&nbsp;days after Notice of Termination for
Disability is given by the Employer to the Executive and the Executive shall not have returned to the performance of his duties on a full-time basis during such thirty (30)&nbsp;day period; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) If the Executive&#146;s service is separated by the Employer for Cause or by the Executive for Good Reason, the date on
which the Executive separates from service with the Employer; and </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) If the Executive incurs a separation from service
for any other reason, the date on which the Executive incurs a separation from service with the Employer. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Whether the Executive has
incurred a separation from service is determined based on whether the facts and circumstances indicate that the Employer and the Executive reasonably anticipated that no further services would be performed after a certain date. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.8.&nbsp;Disability shall mean a condition:&nbsp;(a)&nbsp;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 months; or (b)&nbsp;which results in the
Executive 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 months, income replacement benefits
for a period of not less than three months under an accident and health plan covering employees of the Employer.&nbsp;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. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.9.&nbsp;Employer shall mean either the Company, the Bank or Trust Services (whichever entity is
the employer of the Executive). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.10.&nbsp;Exemption Amount shall mean two times the lesser of:&nbsp;(a)&nbsp;the Executive&#146;s
annualized compensation based on the Executive&#146;s annual rate of pay for the calendar year preceding the calendar year in which the Date of Termination occurs; or (b)&nbsp;the limitation on compensation set forth in Code Section&nbsp;401(a)(17)
for the calendar year in which the Date of Termination occurs. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.11.&nbsp;Good Reason shall mean one or more of the following events
arising without the consent of the Executive: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) a material diminution in the Executive&#146;s Base Compensation; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;a material diminution in the Executive&#146;s authority, duties or responsibilities; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c)&nbsp;a material diminution in the authority, duties or responsibilities of the person to whom the Executive is required to
report; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d)&nbsp;a material diminution in the budget over which the Executive retains authority; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e)&nbsp;a material change in the geographic location at which the Executive must perform his services; or </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f)&nbsp;any other action or inaction that constitutes a material breach by the Company of the Agreement or any other agreement
under which the Executive provides services. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In order for a separation from service to occur for Good Reason, the separation from service
must occur within two years following the initial existence of the event constituting Good Reason. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.12.&nbsp;Key Employee shall mean an
employee who is:&nbsp;(a)&nbsp;an officer of the Company, the Bank or Trust Services whose earnings from the Company, the Bank and Trust Services exceed $145,000 (as adjusted under Code Section&nbsp;416(i)(1) for calendar years beginning after
December&nbsp;31, 2007); (b)&nbsp;an owner of more than a five percent (5%)&nbsp;interest in the Company, the Bank or Trust Services; or (c)&nbsp;an owner of more than a one percent (1%)&nbsp;interest in the Company, the Bank or Trust Services whose
earnings from the Company, the Bank and Trust Services exceed $150,000. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.13.&nbsp;Notice of Termination shall mean the notice provided
pursuant to Section&nbsp;3. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1.14. Trust Services shall mean Bar Harbor Trust Services. </P>

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<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top"><B></B><U><B>SEVERANCE BENEFITS.</B></U> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In the event that: (a)&nbsp;the Employer separates
the Executive&#146;s service other than as a result of Disability and other than for Cause, or the Executive separates his or her service for Good Reason; and (b)&nbsp;the Executive&#146;s separation from service occurs in anticipation of or within
one year after a Change in Control, then the Employer shall pay the Executive, subject to the terms and conditions of this Section&nbsp;2, the severance benefits described in this Section&nbsp;2. The Executive&#146;s separation from service shall be
deemed to be in anticipation of a Change in Control if it occurs within the twelve (12)&nbsp;month period prior to the occurrence of the Change in Control.&nbsp;Notwithstanding the foregoing, if the payment of the severance benefits would constitute
an &#147;excess parachute payment&#148; as defined under Code Section&nbsp;280G, then the amount of the severance benefits to be paid to the Executive 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&nbsp;280G or will be subject to the excise tax imposed by Code Section&nbsp;4999 (the &#147;Reduced Payment&#148;), and the Executive shall have no further rights or claims with respect to an amount in
excess of the Reduced Payment. Any determination required under this Section (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 final, conclusive and binding upon the Executive. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The severance benefits described in this
Section&nbsp;2 shall equal the following: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) The Executive shall receive a severance payment equal to two times the
Executive&#146;s Base Compensation, determined as of the Date of Termination, plus an amount equal to the Employer&#146;s share of monthly premium contributions for medical, health, dental, and vision insurance benefits for the Executive and their
eligible dependents, if any, for a period of twelve (12)&nbsp;months, calculated based upon the Employer&#146;s share of monthly premium contributions for such benefits as of the date of the Executive&#146;s Date of Termination. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i)&nbsp;Subject to the provisions of Section&nbsp;2(a)(ii), the Executive&#146;s severance payment shall be paid in a lump sum
on the Employer&#146;s first or second regular payroll date following the date as of which all requirements for payment have been satisfied (including, but not limited to, the execution and delivery of a Release, as described and defined below in
this Section&nbsp;2, and the expiration of any applicable revocation period) , less any applicable tax withholdings; provided, however, that, if payable, payment shall be made no later than the end of the &#147;applicable 2 <SUP
STYLE="vertical-align:top">&nbsp;1</SUP>&#8260;<SUB STYLE="vertical-align:bottom">2</SUB> month period&#148; (as that phrase is used for purposes of the short-term deferral exemption to Code Section&nbsp;409A found in Treasury Regulation
Section&nbsp;1.409A-1(b)(4). </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii)&nbsp;Notwithstanding the provisions of Section&nbsp;2(a)(i), if the
Executive is a Key Employee on the Executive&#146;s Date of Termination and any portion of the severance payment is greater than the Exemption Amount and not eligible for any other exemption from Section&nbsp;409A of the Code, then such portion of
the severance payment shall be paid in a lump sum on the first day of the seventh (7<SUP STYLE="font-size:85%; vertical-align:top">th</SUP>)&nbsp;month following the Executive&#146;s Date of Termination. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) Any taxable cash payments under this Section&nbsp;8.3.3 are intended to be separation pay that is exempt from Code
Section&nbsp;409A by reason of the exemption for certain separation pay set forth in Treasury Regulation <FONT STYLE="white-space:nowrap">Section&nbsp;1.409A-1(b)(9)(iii).</FONT></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(b) </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">In the event
of a Change in Control, all stock options granted but unexercised under the Bar Harbor Bankshares and Subsidiaries Incentive Stock Option Plan of 2000, The Bar Harbor Bankshares and Subsidiaries Equity Plan of 2009, The Bar Harbor Bankshares and
Subsidiaries Equity Plan of 2015, or any other equity plan shall become 100% vested immediately prior to such Change in Control. These grants will remain subject to all of the other terms and conditions in the Bar Harbor Bankshares and Subsidiaries
Incentive Stock Option Plan of 2000, The Bar Harbor Bankshares and Subsidiaries Equity Plan of 2009, The Bar Harbor Bankshares and Subsidiaries Equity Plan of 2015, or any other equity plan. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Payment of the severance benefits described in this Section&nbsp;2 are subject to and expressly conditioned upon the Executive&#146;s
execution and delivery to the Employer of a separation agreement and general release in favor of the Employer in form and substance satisfactory to the Employer (the &#147;<U>Release</U>&#148;), within thirty (30)&nbsp;days after the
Executive&#146;s Date of Termination, which (after the expiration of any and all revocation periods and rights, if any) has, and not until it has, become fully effective and irrevocable, satisfactory to the Employer in the reasonable exercise of its
discretion, releasing the Company, the Bank, Trust Services, their respective subsidiaries, affiliates, and directors, officers, employees, agents and insurers, and certain others, from any and all claims or potential claims arising from or related
to the Executive&#146;s employment with the Employer or the termination of that employment. In no event shall any severance benefits be due or payable unless and until such Release becomes effective and all statutory rights to rescind, revoke or
terminate the same have expired unexercised. Payment of the severance benefits are also subject to and expressly conditioned upon the Executive&#146;s compliance with his or her obligations under Sections 7 of this Agreement. Anything in this
Agreement to the contrary notwithstanding, in the event the Executive is determined by a court or arbitrator to have breached any of the provisions of Sections 7 of this Agreement, then the Employer shall have no further obligation to pay the
severance benefits, and the Employer shall be entitled to obtain reimbursement from the Executive, and the Executive shall be obligated to reimburse the Employer, for any severance benefits previously paid to the Executive, in addition to any and
all other rights or remedies available to the Employer under this Agreement or applicable law. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Executive shall not be required to mitigate the amount of any severance benefits described in
this Section&nbsp;2 by seeking other employment. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B></B>3.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>NOTICE OF TERMINATION.</U></B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Any separation of the Executive&#146;s service by the
Employer due to Disability or for Cause, or by the Executive due to Good Reason, shall be communicated by written Notice of Termination to the other party.&nbsp;A Notice of Termination must indicate the specific provisions in this Agreement which
are relied upon as the basis for the separation of the Executive&#146;s service, and must also set forth in reasonable detail the facts and circumstances claimed to provide the basis for such separation from service under the provisions so
indicated. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Notwithstanding the above, in order for the Executive to separate from service with the Employer for Good Reason, the
Executive must provide the Notice of Termination to the Employer no later than ninety (90)&nbsp;days after the date of the initial occurrence of the condition or conditions alleged to give rise to Good Reason.&nbsp;In addition, the Executive must
provide the Employer a period of at least thirty (30)&nbsp;days during which the Employer can remedy the condition or conditions alleged to give rise to Good Reason and not be required to pay the amounts described in Section&nbsp;2.</P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">4.</TD>
<TD ALIGN="left" VALIGN="top"><U><B>LOSS OF SEVERANCE BENEFITS.</B></U> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If the Employer shall terminate the Executive&#146;s
service due to Disability or for Cause, or if the Executive shall terminate his or her service other than for Good Reason, or if the Executive shall die, then the Executive shall have no right to receive any severance benefits under this Agreement.
</P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">5.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>NO OTHER BENEFITS PAYABLE.</U></B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) If the Executive is entitled to receive the
severance benefits described in Section&nbsp;2 of this Agreement, he or she shall not be entitled to receive: (i)&nbsp;any severance benefits under the terms of any general severance pay policy or plan of the Employer or any successor company; or
(ii)&nbsp;any other compensation, benefits or payments under the terms of any other plan of, or agreement with, the Employer. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;Notwithstanding the above, the Executive shall be entitled to receive any compensation, benefits or payments which are specifically
authorized by the terms of any plan of, or agreement with, the Employer to be paid in addition to the severance benefits described in Section&nbsp;2 of this Agreement. Moreover, notwithstanding the above, the Executive shall be entitled to receive,
in addition to the severance benefits described in Section&nbsp;2 of this Agreement, any compensation, benefits or payments which the Executive is entitled to receive under: (i)&nbsp;any incentive compensation plan maintained by
</P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
the Employer which provides for payment to a separated employee of incentive compensation earned by the employee prior to his or her separation from service; or (ii)&nbsp;any payroll plan or
policy of the Employer which provides for payment to a separated employee of any unpaid vacation, holiday or sick pay accrued by the employee prior to his or her separation from service. </P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">6.</TD>
<TD ALIGN="left" VALIGN="top"><B><U>SUCCESSORS.</U></B> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) The Employer will 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&#146;s obligations under this Agreement prior to the
effective date of any such purchase, merger, consolidation or other transaction. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) The failure of the Employer to obtain from each
successor the written agreement described in Section&nbsp;6(a) 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&nbsp;1.11(f). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) As used in this Section&nbsp;6, the Employer shall include the Company, the Bank, Trust Services
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&nbsp;6(a)
or which otherwise becomes bound by all the terms and provisions of this Agreement. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">7.</TD>
<TD ALIGN="left" VALIGN="top"><U><B>CONFIDENTIAL INFORMATION, NON-COMPETITION OBLIGATIONS, AND NON-SOLICITATION.</B></U> </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(a)</TD>
<TD ALIGN="left" VALIGN="top">Confidential Information </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Executive recognizes and acknowledges that certain assets of the
Employer, the Company, the Bank, Trust Services, or any of their affiliates or subsidiaries constitutes Confidential Information. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">For
purposes hereof, the term &#147;Confidential Information&#148; means 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 Employer, the
Company, the Bank, Trust Services 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 or her behalf, which
information or compilations of information are not a matter of public record or generally known to the public, including without limitation: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) financial information regarding the Employer, the Company, the Bank, Trust Services or any of their subsidiaries or
affiliates; </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) personnel data, including compensation arrangements relating to the
Executive or any other employees of the Employer, the Company, the Bank, Trust Services, or any of their subsidiaries or affiliates; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) internal plans, practices, and procedures of the Employer, the Company, the Bank, Trust Services, or any of their
subsidiaries or affiliates; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv) the names, personal identifying information, portfolio information, investment
strategies, requirements, lending, deposit or other account information, or any similar information of any customers, clients, or prospects of the Employer, the Company, the Bank, Trust Services, or any of their subsidiaries or affiliates; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(v) business methods and marketing strategies of the Employer, the Company, the Bank, Trust Services, or any of their
subsidiaries or affiliates; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(vi) any other information identified or expressly deemed confidential by the officers and
directors of the Employer, the Company, the Bank, Trust Services, or any of their subsidiaries or affiliates; and </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(vii)
the terms and conditions of the Agreement and any documents or instruments executed in connection herewith that are not of public record. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Executive shall not, without the prior written consent of the Employer, the Company, the Bank, Trust Services, 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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Upon termination of employment, the Executive hereby agrees to deliver promptly to the Employer, the Company, the Bank, Trust Services, 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 or her from
any source by virtue of the Executive&#146;s relationship with the Employer, the Company, the Bank, Trust Services, or any of their subsidiaries or affiliates. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Regardless of the reason for his or her cessation of employment, the Executive will furnish such information as may be in the Executive&#146;s
possession and cooperate with the Employer, the Company, the Bank, Trust Services, or any of their subsidiaries or affiliates as may reasonably be requested in connection with any claims or legal actions in which the Employer, the Company, the Bank,
Trust Services, 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 or her obligations under this
clause. </P>

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<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(b)</TD>
<TD ALIGN="left" VALIGN="top">Non-Competition Obligations </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In consideration of the covenants of the Employer contained
herein, the Executive covenants and agrees with the Employer that, during the &#147;Non-Compete Period&#148; (as hereinafter defined) and within a one hundred fifty (150)&nbsp;&#147;air&#148; mile radius from Bar Harbor, Maine, the Executive shall
not without specific written approval, directly or indirectly, whether on behalf of or in conjunction with any entity or person, and whether for the Executive&#146;s own benefit or account or for the benefit or account of any person or entity other
than the Company, the Bank, Trust Services, or any of their subsidiaries or affiliates: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) engage in any insurance,
brokerage, trust, banking, or other financial services as an owner, employee, independent contractor, consultant, director, representative, agent, or in any other capacity </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) request, advise or otherwise cause any past, present, or future client or customer 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, Trust Services, or any of their subsidiaries or affiliates; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) cause, suggest, or induce others to call on any past, present, or future client or customer of the Company, the Bank,
Trust Services, or any of their subsidiaries or affiliates, for the purpose of (a)&nbsp;selling or providing to any such client or customer any products or services offered by (or that compete with the products or services offered by) the Company,
the Bank, Trust Services, or any of their subsidiaries or affiliates, (b)&nbsp;causing such client or customer to withdraw, curtail, or cancel his or her or its business with the Company, the Bank, Trust Services, or any of their subsidiaries or
affiliates, or (c)&nbsp;enticing, diverting, or taking away any such client or customer from the Company, the Bank, Trust Services, or any of their subsidiaries or affiliates; or </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iv) 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, Trust Services, or any of their subsidiaries or affiliates, from any past or present client or customer of the Company, the Bank, Trust Services, or any of their subsidiaries or affiliates. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The &#147;Non-Compete Period&#148; shall commence on the date hereof and terminate one year after the cessation of the Executive&#146;s
employment with the Employer and all of its affiliates, regardless of reason, whether or not pursuant to this Agreement. </P>

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<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(c)</TD>
<TD ALIGN="left" VALIGN="top">Non-Solicitation of Employees </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">While employed by the Employer, and for one year following
cessation of his or her employment with the Employer and all of its affiliates for any reason, the Executive shall not, directly or indirectly, by any means or device whatsoever, for himself or herself or on behalf of, or in conjunction with, any
other person, partnership or corporation, (a)&nbsp;solicit, aid in the solicitation of, induce, encourage, persuade or recruit, or attempt to solicit, induce, encourage, persuade or recruit, any person who is an employee, consultant, agent, or
independent contractor of the Company, the Bank, Trust Services, or any of their subsidiaries or affiliates, to terminate or alter such employment, retention or engagement or to apply for or accept employment or retention with any other person or
entity, or (b)&nbsp;hire or employ or attempt to hire or employ, or solicit for employment or any other engagement, or cause any other person, firm, corporation or other entity to hire or employ or attempt to hire or employ or solicit for employment
or any other engagement, any person who is an employee, consultant, agent, or independent contractor of the Company, the Bank, Trust Services, or any of their subsidiaries or affiliates. </P>
<P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">8.</TD>
<TD ALIGN="left" VALIGN="top"><U><B>REFORMATION; INJUNCTIVE RELIEF.</B></U> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) 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 Section&nbsp;7 are expressly acknowledged and agreed to be fair, reasonable and necessary. To the extent that any covenant contained
in Section&nbsp;7 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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The invalidity or unenforceability of any provision of this Agreement, after reformation as provided in this Section&nbsp;8, 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 be added
automatically 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. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) The Executive acknowledges and agrees that, upon any breach by the Executive of his or her obligations under Section&nbsp;7 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&nbsp;9 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. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">9.</TD>
<TD ALIGN="left" VALIGN="top"><U><B>MEDIATION AND ARBITRATION.</B></U> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
of this Agreement, every reasonable attempt will be made to resolve any differences or dispute within thirty (30)&nbsp;days of an issuance of written notice by either party to the other party.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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)&nbsp;day period, the following steps will be used: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Except as otherwise expressly provided hereunder, the parties agree that
any and all disputes arising out of the Executive&#146;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 (&#147;ADR&#148;). The initiation of ADR shall first require mediation, and the parties agree to first try to settle any dispute through
mediation. Mediation shall be initiated by either party by the serving of a written notice of intent to mediate (a &#147;Mediation Notice&#148;) by one party upon the other. If no resolution has been mutually agreed through mediation within ninety
(90)&nbsp;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 &#147;Arbitration Notice&#148;) by one
party upon the other. Notwithstanding the foregoing, nothing in this Agreement shall be deemed to preclude the Employer from seeking temporary or permanent injunctive relief and/or damages from a court of competent jurisdiction pursuant to
Section&nbsp;8 of this Agreement with respect to any breach of Section&nbsp;7 of this Agreement. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) In the event that a party wishes to
initiate ADR, a Mediation Notice must be served on the other party within six 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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I></I>(b) In the event that mediation is unsuccessful and arbitration is
initiated, it shall be conducted under the National Rules of the Resolution of Employment Disputes of the American Arbitration Association, as modified by this Agreement. There shall be a single arbitrator to be agreed upon by the parties,
<I>provided that</I>, if the parties are unable to agree upon a single arbitrator, each party shall name an arbitrator and the two so named shall name a third arbitrator. The arbitration proceedings shall be heard by the arbitrator(s) and the
decision of the arbitrator, or the majority of the panel if one has been selected, shall be final and binding on the parties. The arbitration award shall be accompanied by a written statement containing a summary of the issues in controversy, a
description of the award, and an explanation of the reasons for the award. 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 year from the
date on which the claim arose, and failure to bring such a claim within such one-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. All mediation and arbitration proceedings shall be confidential.<I> </I></P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><I></I>(c) The cost of any mediation proceeding under this Section&nbsp;9 shall be paid entirely
by the Employer.&nbsp;The cost of any arbitration proceeding will be shared equally by the parties to the dispute; <I>provided, however, </I>that, if the dispute is resolved in favor of the Executive, such cost shall be paid in full by the
Employer.&nbsp;Each party shall be responsible for its own cost of representation and counsel.<I> </I></P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">10.</TD>
<TD ALIGN="left" VALIGN="top"><U><B>POST-TERMINATION OBLIGATIONS.</B></U> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">All payments and benefits due to the Executive
under this Agreement shall be subject to the Executive&#146;s compliance with this Section&nbsp;10 for one full year following the Executive&#146;s Date of Termination. The Executive shall, upon reasonable notice, furnish such information and
assistance to the Employer, the Company, the Bank or Trust Services as may reasonably be required by the Employer, the Company, the Bank or Trust Services in connection with any litigation in which it or any of its subsidiaries or affiliates is, or
may become, a party. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">11.</TD>
<TD ALIGN="left" VALIGN="top"><U><B>GENERAL PROVISIONS.</B></U> </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) All notices required by this Agreement shall be in
writing and shall be sufficiently given if delivered personally or mailed by registered mail or certified mail, return receipt requested, to the parties at their then current addresses. All notices shall be deemed to have been given as of the date
so delivered or mailed. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) This Agreement and the plans and agreements described in Section&nbsp;5(b) contain the entire transaction
between the parties, and there are no other representations, warranties, conditions or agreements relating to the subject matter thereof. This Agreement hereby supersedes any prior Change in Control Agreement between the Executive and the Company.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) The waiver by any party of any breach or default of any provision of this Agreement shall not operate or be construed as a waiver of
any subsequent breach. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) This Agreement may not be changed orally but only by an agreement in writing executed on behalf of the party
against which enforcement of any waiver, change, modification, consent or discharge is sought. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) This Agreement shall be binding upon
and inure to the benefit of the Employer and the Executive and their respective successors, assigns, heirs and legal representatives (including, but not limited to, any successor of the Employer described in Section&nbsp;6). </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) 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. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(g) This
Agreement may be executed in one or more counterparts, all of which taken together shall constitute one and the same instrument. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(h) This
Agreement shall be construed pursuant to and in accordance with the laws of the State of Maine. Actions brought by the Employer under this Agreement shall be subject to the exclusive jurisdiction of the state and federal courts of Maine. Both
parties consent to the personal jurisdiction of such courts for such actions, and agree that they may be served with process in accordance with Section&nbsp;11(a). Notwithstanding anything herein to the contrary, any payments to the Executive,
whether pursuant to this Agreement or otherwise, are subject to and conditioned upon their compliance with Section&nbsp;18(k) of the Federal Deposit Insurance Act, &#167;12&nbsp;U.S.C.&nbsp;1828(k) and any regulations promulgated thereunder. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) The Executive acknowledges that he has had a full and complete opportunity to review the terms, enforceability and implications of this
Agreement, and that the Employer has not made any representations or warranties to the Executive concerning the terms, enforceability and implications of this Agreement other than as are reflected in this Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(j)&nbsp;Any provision of this Agreement that is susceptible to more than one interpretation shall be interpreted in a manner that is
consistent with this Agreement satisfying the requirements of Code Section&nbsp;409A. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>IN WITNESS WHEREOF</B>, the parties have
executed this Agreement as of the date first above written. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">[The Next Page is the Signature Page] </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">COMPANY: </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">BAR
HARBOR BANKSHARES </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">BAR HARBOR BANK&nbsp;&amp; TRUST </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top">WITNESS:</TD>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/&nbsp;Witness</P></TD>
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<TD VALIGN="bottom">BY:</TD>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Curtis C. Simard</P></TD></TR>
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<TD VALIGN="bottom">Name: Curtis C. Simard</TD></TR>
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<TD VALIGN="bottom">Title: President and Chief Executive Officer</TD></TR>
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<TD VALIGN="top">WITNESS:</TD>
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<TD VALIGN="bottom" COLSPAN="3">EXECUTIVE:</TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Witness</P></TD>
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<TD VALIGN="bottom">BY:</TD>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Richard B. Maltz</P></TD></TR>
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