<SEC-DOCUMENT>0001171843-18-000247.txt : 20180108
<SEC-HEADER>0001171843-18-000247.hdr.sgml : 20180108
<ACCEPTANCE-DATETIME>20180108172638
ACCESSION NUMBER:		0001171843-18-000247
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20180108
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:		20180108
DATE AS OF CHANGE:		20180108

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHEMUNG FINANCIAL CORP
		CENTRAL INDEX KEY:			0000763563
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				161237038
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-35741
		FILM NUMBER:		18517293

	BUSINESS ADDRESS:	
		STREET 1:		ONE CHEMUNG CANAL PLZ
		STREET 2:		P O BOX 1522
		CITY:			ELMIRA
		STATE:			NY
		ZIP:			14902
		BUSINESS PHONE:		6077373711

	MAIL ADDRESS:	
		STREET 1:		ONE CHEMUNG CANAL PLZ
		STREET 2:		P O BOX 1522
		CITY:			ELMIRA
		STATE:			NY
		ZIP:			14902
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k_010818.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<html><head><title></title></head><body><div style="margin-top: 3pt; margin-bottom: 12pt;"><div style="font-size: 1pt; border-top: Black 2.5pt solid; border-bottom: Black 1.1pt solid; width: 100%;"><font style="font-size: 10pt;">&#160;</font></div></div><p style="text-align: center;"><font style="font-size: 14pt;"><strong>UNITED STATES</strong><br /><strong>SECURITIES AND EXCHANGE COMMISSION</strong><br /><strong>Washington, D.C. 20549</strong><br />_____________________</font></p><p style="text-transform: uppercase; text-align: center;"><font style="font-size: 14pt;"><strong>Form 8-K</strong><br />_____________________</font></p><p style="text-align: center;"><font style="font-size: 12pt;"><strong>CURRENT REPORT</strong></font></p><p style="text-align: center;"><font style="font-size: 12pt;"><strong>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</strong></font></p><p align="center"><font style="font-size: 10pt;">Date of Report (Date of earliest event Reported): <!--January 8, 2018-->January 8, 2018 &#160;</font></p><p align="center"><font style="font-size: 12pt;"><strong>CHEMUNG FINANCIAL CORPORATION</strong></font><br /><font style="font-size: 10pt;">(Exact Name of Registrant as Specified in Charter)</font></p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td align="center" width="33%"><font style="font-size: 10pt;"><strong>New York</strong></font></td><td align="center" width="34%"><font style="font-size: 10pt;"><strong>0-13888</strong></font></td><td align="center" width="33%"><font style="font-size: 10pt;"><strong>16-1237038</strong></font></td></tr><tr valign="top"><td align="center" width="33%"><font style="font-size: 10pt;">(State or Other Jurisdiction of Incorporation)</font></td><td align="center" width="34%"><font style="font-size: 10pt;">(Commission File Number)</font></td><td align="center" width="33%"><font style="font-size: 10pt;">(I.R.S. Employer Identification Number)</font></td></tr></table><p><font style="font-size: 10pt;">&#160;</font></p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="bottom"><td align="center" width="50%"><font style="font-size: 10pt;"><strong>One Chemung Canal Plaza, Elmira, NY 14901</strong><!----></font></td></tr><tr valign="top"><td align="center" width="50%"><font style="font-size: 10pt;">(Address of Principal Executive Offices) (Zip Code)</font></td></tr></table><p align="center"><font style="font-size: 10pt;"><strong>(607) 737-3711</strong><br />(Registrant's telephone number, including area code)</font></p><p align="center"><font style="font-size: 10pt;"><strong></strong><br />(Former name or former address, if changed since last report)</font></p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td colspan="3"><font style="font-size: 10pt;">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:<br /><br /></font></td></tr><tr valign="top"><td width="21"><font style="font-size: 10pt;">&#160;</font></td><td width="40"><font style="font-size: 10pt;">[  ]</font></td><td nowrap="nowrap"><font style="font-size: 10pt;">&#160;&#160;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></td></tr><tr valign="top"><td width="21"><font style="font-size: 10pt;">&#160;</font></td><td width="40"><font style="font-size: 10pt;">[  ]</font></td><td nowrap="nowrap"><font style="font-size: 10pt;">&#160;&#160;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></td></tr><tr valign="top"><td width="21"><font style="font-size: 10pt;">&#160;</font></td><td width="40"><font style="font-size: 10pt;">[  ]</font></td><td nowrap="nowrap"><font style="font-size: 10pt;">&#160;&#160;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></td></tr><tr valign="top"><td width="21"><font style="font-size: 10pt;">&#160;</font></td><td width="40"><font style="font-size: 10pt;">[  ]</font></td><td nowrap="nowrap"><font style="font-size: 10pt;">&#160;&#160;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></td></tr></table><p style="font-size: 10pt; margin: 0pt;">&#160;</p><p style="font-size: 10pt; margin: 0pt;">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR &sect;230.405) or Rule&#160;12b-2&#160;of the Securities Exchange Act of 1934 (17 CFR&#160;&sect;240.12b-2).&#160;Emerging growth company [&#160;&#160; ]</p><p style="font-size: 10pt; margin: 0pt;">&#160;</p><p style="font-size: 10pt; margin: 0pt;">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [&#160;&#160; ]</p><div style="margin-top: 12pt; margin-bottom: 3pt;"><div style="font-size: 1pt; border-top: Black 1.1pt solid; border-bottom: Black 2.5pt solid; width: 100%;"><font style="font-size: 10pt;">&#160;</font></div>&#160;</div><hr style="page-break-after: always;" noshade="noshade" /><p><font style="font-size: 10pt;">  <strong>  </strong></font></p><p><font style="font-size: 10pt;"><strong>Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</strong></font></p><p><font style="font-size: 10pt;"><p style="text-align: justify; margin: 0in 0in 0.0001pt; font-size: 16pt; font-family: 'Times New Roman', serif; font-weight: bold;"><font style="font-size: 11.0pt; font-weight: normal;">Effective January 1, 2018, the Board of Directors of Chemung Financial Corporation (the &#8220;Corporation&#8221;) appointed Daniel D. Fariello, 41, as President of the Capital Bank Division of Chemung Canal Trust Company (the &#8220;Bank&#8221;), with offices in Albany, Saratoga and Schenectady counties of New York State.&#160; Prior to becoming President, Mr. Fariello was Senior Vice President, Commercial Loan Manager and Market Executive of the Bank for the Capital Region.</font></p><p style="margin: 0in 0in 0.0001pt; font-size: 16pt; font-family: 'Times New Roman', serif; font-weight: bold;"><font style="font-size: 11.0pt; font-weight: normal;">&#160;</font></p><p style="text-align: justify; margin: 0in 0in 0.0001pt; font-size: 16pt; font-family: 'Times New Roman', serif; font-weight: bold;"><font style="font-size: 11.0pt; font-weight: normal;">Material components of Mr. Fariello&#8217;s annual compensation are as follows: &#160;(1) base salary of $190,000; (2) eligible to earn up to a 30% cash bonus of base salary, depending on performance to targets set by the Board of Directors; (3) eligible to earn up to a 30% restricted stock bonus of base salary, depending on performance to targets set by the Board of Directors; (4) club memberships in Albany, New York; (5) an annual car allowance; (6) certain health, life, and disability insurance benefits, on the same terms as other employees of the Bank; (7) eligibility to participate in the Bank&#8217;s 401(k) Plan, on the same terms as other employees of the Bank; and (8) eligibility to participate in the Bank&#8217;s defined contribution supplemental employee retirement plan with annual contributions of 20% of base salary.</font></p><p style="text-align: justify; margin: 0in 0in 0.0001pt; font-size: 16pt; font-family: 'Times New Roman', serif; font-weight: bold;"><font style="font-size: 11.0pt; font-weight: normal;">&#160;</font></p><p style="text-align: justify; margin: 0in 0in 0.0001pt; font-size: 16pt; font-family: 'Times New Roman', serif; font-weight: bold;"><font style="font-size: 11.0pt; font-weight: normal;">The Bank and Mr. Fariello also executed a Change of Control Agreement (the &#8220;Agreement&#8221;).&#160; The Agreement provides that if, during the 12 month period after the occurrence of a Change of Control, as defined in the Agreement: i) Mr. Fariello&#8217;s employment is terminated by the Bank without Cause (also as defined in the Agreement); or ii) Mr. Fariello terminates his employment with the Bank for any reason, the Bank shall pay to Mr. Fariello, in addition to any other compensation or benefits due to him, an amount equal to 2.00 times the highest annual compensation (salary and bonuses) paid by the Bank to Mr. Fariello for any of the two (2) calendar years ending with the year in which his employment is terminated.&#160; The severance payments would be paid in equal monthly installments for the 24 months immediately following the effective date of the termination of Mr. Fariello&#8217;s employment.&#160; The Agreement provides further that it is subject to all applicable laws and regulations and that the amount payable to Mr. Fariello is subject to reduction to the extent necessary to ensure that such payment is not an &#8220;excess parachute payment&#8221; as defined in Section 280-g of the Internal Revenue Code.</font></p><p style="margin: 0in 0in 0.0001pt; font-size: 16pt; font-family: 'Times New Roman', serif; font-weight: bold;"><font style="font-size: 11.0pt; font-weight: normal;">&#160;</font></p><p style="text-align: justify; margin: 0in 0in 0.0001pt; font-size: 16pt; font-family: 'Times New Roman', serif; font-weight: bold;"><font style="font-size: 11.0pt; font-weight: normal;">The Agreement is furnished as Exhibit 10.1 to this report.</font></p></font></p><p><font style="font-size: 10pt;"><strong>  </strong></font></p><p><font style="font-size: 10pt;"><strong>Item 9.01. 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Krebs&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">&#160;</font></td><td width="2%"><font style="font-size: 10pt;">&#160;</font></td><td width="49%"><font style="font-size: 10pt;">Karl F. Krebs</font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">&#160;</font></td><td width="2%"><font style="font-size: 10pt;">&#160;</font></td><td width="49%"><font style="font-size: 10pt;">Chief Financial Officer and Treasurer</font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">&#160;</font></td><td width="2%"><font style="font-size: 10pt;">&#160;</font></td><td width="49%"><font style="font-size: 10pt;"></font></td></tr></table><p /></body></html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>exh_101.htm
<DESCRIPTION>DANIEL D. FARIELLO CHANGE OF CONTROL AGREEMENT
<TEXT>
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<p ></p>

<p style="margin: 0; text-align: right"><font style="font-size: 12pt">EXHIBIT 10.1</font></p>

<p style="margin: 0">&#160;</p>

<p style="margin: 0" ></p>

<p style="font-size: 10pt; text-align: center; margin: 0pt 0">CHANGE OF CONTROL AGREEMENT</p>

<p style="font-size: 10pt; text-align: center; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"><font style="text-transform: uppercase">This Change of Control Agreement</font>
(&ldquo;Agreement&rdquo;) is hereby entered into on this 3rd day of January 2018, by and between CHEMUNG CANAL TRUST COMPANY, a
trust company chartered under the laws of the State of New York with its principal office located at One Chemung Canal Plaza, Elmira,
New York 14902 (&ldquo;Bank&rdquo;), and Daniel Fariello, of 14 Carlson Way, Clifton Park, NY 12065 (&ldquo;Executive&rdquo;).</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">WHEREAS, Executive serves as the President; and</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">WHEREAS, the Bank desires to set forth the severance benefits Executive
would receive in the event of a termination of Executive&rsquo;s employment with the Bank following the occurrence of a Change
of Control;</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">NOW THEREFORE, to ensure Executive&rsquo;s continued dedication to
the Bank and to induce Executive to remain and continue in the employ of the Bank, and for other good and valuable consideration,
the receipt and adequacy of which is hereby acknowledged, the parties hereby agree as follows:</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">1. <u>CHANGE OF CONTROL.</u> This Agreement shall become operative
only if and when there has occurred a &ldquo;Change of Control&rdquo; of the Bank. A &ldquo;Change of Control&rdquo; shall mean
(1) any merger, consolidation or other corporate reorganization in which the Bank is not the surviving corporation, (2) the event
that any &ldquo;person&rdquo; (as that term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes
the beneficial owner, directly or indirectly, of securities of the Bank representing thirty percent (30%) or more of the combined
voting power of the Bank&rsquo;s then outstanding securities, provided that the acquisition of additional securities or voting
power by a person who, as of the date of this Agreement, already is the direct or indirect beneficial owner of twenty percent (20%)
of such combined voting power, shall not constitute a Change of Control, or (3) the event in which a majority of the members of
the Bank&rsquo;s Board of Directors is replaced during any twenty-four (24) month period by Directors whose appointment or election
is not endorsed by two-thirds (2/3) of the members of the Bank&rsquo;s Board of Directors prior to the date of appointment or election.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">2. <u>TERMINATION.</u></p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;If, after the occurrence
of a Change of Control, Executive&rsquo;s employment is terminated by the Bank without Cause within the twelve (12) month period
immediately following the effective date of the Change of Control or if the Executive terminates his or her employment with the
Bank for any reason, within such period, the Bank shall pay to Executive, in addition to any other compensation, remuneration,
or benefits due to Executive under any other plan, contract, or arrangement with the Bank, the Severance Pay described in Section
3 of this Agreement in equal monthly installments for the twenty-four (24) months immediately following the effective date of the
termination of Executive&rsquo;s employment, with the first such installment to be paid on the first day of the first month immediately
following the month in which Executive&rsquo;s employment is terminated.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in" ></p>

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<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;For the purposes of
this section, the Bank shall have &ldquo;Cause&rdquo; to terminate Executive&rsquo;s employment if Executive engages in personal
dishonesty, willful misconduct, breach of fiduciary duty, willful violation of any law, rule, or regulation (other than traffic
violations or similar offenses), gross insubordination, or gross negligence. For the purposes of this paragraph, no act or failure
to act shall be considered &ldquo;willful&rdquo; unless done or omitted to be done, by the Executive not in good faith and without
a reasonable belief that Executive&rsquo;s action or omission is in the best interests of the Bank. In no event shall Executive
be deemed to have been terminated for Cause unless and until there shall have been delivered to Executive a copy of a certification
by a majority of the non-officer members of the Board of Directors finding that the Executive was guilty of conduct deemed to be
Cause within the meaning of this paragraph.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">3. <u>SEVERANCE PAY.</u> Except as provided in Section 4 of this
Agreement, Severance Pay payable to the Executive pursuant to this Agreement shall mean two (2.0) times the highest annual compensation
(including only salary and bonuses) paid by the Bank to Executive for any of the two (2) calendar years ending with the year in
which Executive&rsquo;s employment is terminated. Severance Pay shall be reduced by all amounts that are required to be withheld
or deducted under federal, state or municipal law.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">4. <u>LIMITATIONS ON SEVERANCE PAY.</u></p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;Notwithstanding any
other provision of this Agreement, in no event shall the Bank be required to pay to Executive any amount under this Agreement which
would, in the opinion of counsel to the Bank, constitute an &ldquo;excess parachute payment&rdquo; as that term is defined by Section
280G and/or Section 4999 of the Code. The Bank shall not be required to make any payment under this Agreement if, in the opinion
of counsel to the Bank, such payment or the amount thereof would violate any applicable Federal, state or local law or regulation.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">(b) &#160;&#160;&#160;&#160;&#160;&#160;&#160; In the event that
the Bank is notified of any determination by counsel to the Bank that the Bank&rsquo;s payment of any amount under this Agreement
would violate paragraph 4(a), the Bank shall provide Executive written notice of such determination within five (5) business days
of the date of such determination, which notice shall indicate the amount by which any payment will be reduced as a result of such
determination.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;All payments of Severance
Pay pursuant to this Agreement shall be reduced by the Bank as may be necessary to avoid violation of this Section 4. In the event
that any government or other authority of competent jurisdiction determines that any amount received by Executive pursuant to this
Agreement constitutes an &ldquo;excess parachute payment,&rdquo; or unreasonable compensation for the services performed or to
be performed by Executive for the Bank, Executive agrees to immediately repay to the Bank the amount determined to be an &ldquo;excess
parachute payment&rdquo; or unreasonable compensation. In the event that any such authority determines that any aspect of the transactions
between Executive and the Bank pursuant to this Agreement violates any federal, state or local law or regulation, the parties hereto
agree to cooperate to take all steps necessary to cure such violation.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in" ></p>

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<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">5. <u>REGULATORY LIMITS.</u> The provisions of this Section 5 shall
control as to continuing rights and obligations under this agreement notwithstanding any other provision of this Agreement, for
so long as the Bank shall be regulated by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation,
the New York State Banking Department or any other federal or state banking agency (each a &ldquo;Regulator&rdquo;).</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;All obligations under
this Agreement shall be terminated, except to the extent determined by any Regulator that continuation thereof is necessary for
the continued operation of the Bank at the time the Regulator enters into an agreement to provide assistance to or on behalf of
the Bank, or approves a supervisory merger to resolve problems related to the operation of the Bank, or when the Bank is determined
by a Regulator to be in an unsafe or unsound condition, notwithstanding the vesting of any rights of the parties.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;All obligations under
this Agreement shall be subject to and conditioned upon the Bank&rsquo;s satisfaction of and compliance with all state and federal
laws, rules, and regulations applicable to the Bank, notwithstanding the vesting of any rights hereunder. The Bank shall be relieved
of all obligations under this Agreement to the extent that performance or satisfaction of such obligations would violate or be
inconsistent with any federal or state law, rule, or regulation (including, without limitation, safety and soundness standards
and related regulatory guidance), any order, directive or notice from a Regulator, or any formal or informal agreement, safety
and soundness compliance plan, or other agreement or plan entered into by and between the Bank and any Regulator. Whether the obligations
of this Agreement are inconsistent with any law, rule, regulation, order, directive, notice, agreement, or plan just described
shall be deemed determined if so found by any Regulator or by an opinion of the Bank&rsquo;s counsel, a copy or written summary
of which finding or opinion of counsel shall be provided by the Bank to Executive within five (5) business days of the Bank&rsquo;s
notice of such a determination.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;The payment, accrual
and/or vesting of any Severance Pay shall be suspended in the event the Bank receives any notice from any Regulator indicating
an intent to issue an order or directive requiring the Bank to take prompt corrective action or to take or refrain from taking
any other action.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">(d) &#160;&#160;&#160;&#160;&#160;&#160;&#160;In the event that any
Regulator terminates or requires the Bank by order or directive to terminate Executive, Bank shall be relieved of all obligations
under this Agreement and this Agreement shall be terminated and shall have no further force and effect.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">(e) &#160;&#160;&#160;&#160;&#160;&#160;&#160;In the event that the
Bank is relieved of any or all of its obligations under this Agreement as a result of the application of this Section 5 or that
any or all of such obligations is suspended, the Bank shall provide, within five (5) business days of the Bank&rsquo;s notice of
relief or suspension, written notice to Executive describing the extent to which the Bank has been relieved of its obligations
under this Agreement or to which such obligations have been suspended and the reason(s) therefor.</p>

<p style="font-size: 10pt; margin: 0pt 0"><b>&#160;</b></p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in" ></p>

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<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">6. <u>SUCCESSORS.</u> This Agreement shall inure to the benefit of
and be enforceable by Executive&rsquo;s personal representatives and heirs. In the event that Executive dies while any amounts
remain payable to Executive hereunder, all such amounts shall be paid in accordance with the terms of this Agreement to designee(s)
or, if there is no such designee, to Executive&rsquo;s estate.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">7. <u>SEVERABILITY.</u> In the event that any court or other authority
of competent jurisdiction determines that any provision of this Agreement is invalid, illegal or unenforceable, such invalidity,
illegality or unenforceability shall be limited to such provision and shall not affect the validity, legality, or enforceability
of any other provision. Any provision in this Agreement which is invalid, illegal or unenforceable in any jurisdiction shall, as
to such jurisdiction, be invalid, illegal or unenforceable, only to the extent required by such jurisdiction and without rendering
such provision invalid, illegal, or unenforceable in any other jurisdiction.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">8. <u>NO RIGHT TO CONTINUE EMPLOYMENT.</u> This Agreement shall not
give Executive any right to remain in the employ of the Bank. Subject to the severance provisions in this Agreement or in any other
written agreement between the Bank and Executive, the Bank reserves the right to terminate Executive&rsquo;s employment at any
time.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">9. <u>AMENDMENT; WAIVER.</u> No provision of this Agreement may be
modified or waived except by a written instrument executed by Executive and on behalf of the Bank by an authorized representative,
which instrument specifically refers to this Section 9. No waiver of compliance with any condition or provision of this Agreement
shall be deemed or constitute a waiver of any other provision or condition of this Agreement and shall not operate to preclude
or limit any future waivers or modifications of the Agreement.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">10. <u>NOTICES.</u> For the purposes of this Agreement, notices and
all other communications provided for in the Agreement shall be in writing ands shall be deemed to have been duly given when delivered
or mailed by United States first-class registered or certified mail, return receipt requested, postage prepaid, addressed as follows:</p>

<p style="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0 0pt 2in">&#160;</p>

<table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 95pt; text-align: right">If to Executive:</td><td style="width: 5pt"></td><td style="text-align: justify"><p style="margin-top: 0; margin-bottom: 0">Daniel Fariello</p>
                                                                                <p style="margin-top: 0; margin-bottom: 0">14 Carlson Way</p>
                                                                                <p style="margin-top: 0; margin-bottom: 0">Clifton Park, NY 12065</p></td>
</tr></table>

<p style="font-size: 10pt; margin: 0pt 0 0pt 1in; text-indent: 1.5in" ></p>

<p style="font-size: 10pt; text-indent: 0.5in; margin: 0pt 0 0pt 2in">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

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<td style="width: 95pt; text-align: right">If to the Bank</td><td style="width: 5pt"></td><td style="text-align: justify">Chemung Canal Trust Company<p style="font-size: 10pt; margin: 0pt">One Chemung Canal Plaza</p>

<p style="font-size: 10pt; margin: 0pt">P.O. Box 1522</p>

<p style="font-size: 10pt; margin: 0pt">Elmira, New York 14902-1522</p>

</td>
</tr></table>

<p style="font-size: 10pt; margin: 0pt">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0" ></p>

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<p style="font-size: 10pt; margin: 0pt 0">Or at such other address as any party may furnish to the other in writing. Notices of
change of address shall be effective only upon receipt.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">11. <u>ENTIRE AGREEMENT.</u> This Agreement constitutes the entire
agreement between the parties and supersedes all current and prior agreements and understandings, whether written or oral, between
the parties, with respect to the subject matter hereof.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">12. <u>GOVERNING LAW.</u> This Agreement shall be interpreted and
construed in accordance with the laws of the State of New York, without regard to any conflicts of law rules or principles.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">13. <u>JURISDICTION; VENUE; WAIVER OF JURY TRIAL.</u> The Bank and
Executive agree that any action or proceeding seeking to enforce any provision of, or based on any claim arising out of, or otherwise
relating to this Agreement shall be brought in the courts of the State of New York, or, if it has or can acquire jurisdiction,
in the United States District Court for the Western District of new York. The Bank and Executive each give their consent to the
jurisdiction of these courts in any such action or proceeding and hereby waive any object to venue being laid in such courts. The
Bank and Executive further agree to waive their respective rights to a trial by jury in any such action or proceeding.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">14. <u>SECTION HEADINGS.</u> All Section headings herein are included
for the purposes of convenience only and shall not be deemed to have any effect on the construction or interpretation of any provision
of this Agreement.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">IN WITNESS WHEREOF, the parties hereto have hereby executed this
Agreement as of the date set forth above.</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 2.5in">CHEMUNG CANAL TRUST COMPANY,</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 2.5in">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 2.5in">By: _<u>/s/ Anders Tomson </u>_____________________</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 2.5in">Its: CEO</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 2.5in">EXECUTIVE</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0; text-indent: 2.5in">___<u>/s/ Daniel Fariello</u>________________________</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>

<p style="font-size: 10pt; margin: 0pt 0">&#160;</p>



<p style="margin-top: 0; text-align: center; margin-bottom: 0">5 of 5</p>

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<p style="margin-top: 0; text-align: center; margin-bottom: 0">

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>exh_991.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"><html lang="en-US"><head><title>EdgarFiling</title><meta content="text/html; charset=windows-1252" ><meta name="GENERATOR" content="MSHTML 8.00.7601.18094" ></head><body bgcolor="#ffffff"><p style="text-align: right;"><strong>EXHIBIT 99.1</strong></p><p style="text-align: center;"><strong>Fariello Named Capital Bank President</strong></p><p style="text-align: center;" ></p><p>
   <p align="left">ELMIRA, N.Y., Jan.  08, 2018  (GLOBE NEWSWIRE) -- Anders M. Tomson, President and CEO of Chemung Canal Trust Company, today announced that Daniel D. Fariello has been named President of the Capital Bank Division of Chemung Canal Trust Company.&#160; Fariello, who joined Capital Bank in December 2013, currently serves as Senior Vice President, Commercial Loan Manager and Market Executive of the company for the Capital Region.<br ></p>    <p>&#8220;Dan is a strong leader who is well respected inside and out of the bank,&#8221; Tomson said. &#8220;He has been a tremendous advocate for the bank and has been instrumental in our significant growth in the Capital Region,&#8221; he added. In his new position Fariello will oversee the collaborative effort of the entire bank&#8217;s operation within the Capital District and join Chemung Canal Trust Company&#8217;s Executive Management Team.</p>    <p>Mr. Fariello has more than 16 years of banking experience, including a strong concentration within the commercial lending side of the business.&#160; Prior to joining Capital Bank he was a Relationship Manager and Vice President at First Niagara Bank.</p>    <p>Fariello&#8217;s appointment comes as Capital Bank&#8217;s footprint is also growing.&#160; On January 8<sup>th</sup> the bank will open a branch office in Schenectady, as part of the Mohawk Harbor development project, and it expects to open an office in Wilton Plaza this coming April.&#160; These offices join other branches in downtown Albany, Clifton Park, Colonie, Latham and Slingerlands.&#160;</p>    <p>&#8220;I am honored to be appointed President of Capital Bank. We have a strong and growing team of experienced and dedicated banking professionals and I look forward to the opportunity to expand the Capital Bank imprint within the region,&#8221; Fariello said.&#160;</p>    <p>Fariello graduated with a BS in Management/Business from Skidmore College, and received an MBA from the University of Massachusetts. He is the treasurer of the board of directors of the Downtown Albany Business Improvement District, board member of the Town of Clifton Park Industrial Development Agency, a member of the Advisory Board of the Southern Saratoga YMCA, and a volunteer coach for Clifton Park Baseball.&#160;</p>    <p>Capital Bank is a division of Chemung Canal Trust Company, a full service community bank with full trust powers. Established in 1833, Chemung Canal Trust Company is the oldest, locally owned and managed community bank in New York State.</p>    <p>Media Note: Photo Attached: Daniel D. Fariello<br >A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/dc3f0a67-c36c-475e-8219-8b0d3999726d<br ></p>    <p align="left"><strong><u>Contact:</u></strong><br >Michael J. Wayne<br >Senior Vice President<br >(607) 737-3762<br >mwayne@chemungcanal.com</p> </p><p ></p></body></html>
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