Document:

Exhibit 10.1

ALLIANCE FINANCIAL CORPORATION

AMENDED AND RESTATED 

DIRECTORS COMPENSATION DEFERRAL PLAN 

January 1, 2005

Article I 

PURPOSE OF PLAN 

          1.1    
 Purpose.
This plan is designated Alliance Financial Corporation Directors Compensation
Deferral Plan (the “Plan”). Its purpose is to allow members of the Board of
Directors of Alliance Financial Corporation (hereinafter referred to as the
“Company”) to defer receipt of any Director’s Fees to be earned and to receive
distributions of those deferred fees in later years. 

          1.2    
 Application of Restated Plan.
The Plan, as embodied by this document, is a restatement of the Plan that was
adopted on April 20, 1999, and amended January 18, 2000, and is intended to
supercede said prior Plan as of the Restatement Effective Date with respect to
Directors’ Fees that are earned in Plan Years beginning on or after the
Restatement Effective Date. Further, unless expressly stated otherwise herein,
this document shall apply only to Directors who are members of the Board of
Directors on or after the Restatement Effective Date and their Beneficiaries.
The rights of a former Director shall be determined under the terms of the
predecessor(s) to this Plan in effect during the Director’s tenure or at the
Director’s termination date and not under the Plan as restated by this
document.

Article II 

DEFINITIONS 

          As
used in this Plan, the following terms shall have the following meanings,
unless a different meaning is stated and clearly indicated by the context:

          2.1    “Account
Balance” shall mean the amount standing to the credit
of a Director in the Director’s Reserve Account as of the applicable date.

          2.2    “Administrator”
or “Plan Administrator” shall mean
the Compensation Committee of the Board of Directors.

          2.3    “Beneficiary”
shall mean a person or entity designated by a Director or otherwise designated
as such under the provisions of this Plan, who is or may become entitled to
receive benefits following the Director’s death.

          2.4    “Board
of Directors” shall mean the Board of Directors of the
Company, its subsidiaries or affiliates.

          2.5     “Book Value” of
each share of the Company’s
common stock shall mean (i) the Company’s total shareholder’s equity less the accumulated
other comprehensive income or loss component of such shareholder’s equity, as
finally reported for financial reporting purposes on the Company’s consolidated
statement of

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condition,
divided by (ii) the total number of outstanding shares of the Company’s common
stock, all of which shall be calculated as of the relevant date described
herein.

          2.6    “Code”
means the Internal Revenue Code of 1986, as amended from time to time, any
regulations promulgated thereunder, and any rulings issued by the Internal
Revenue Service. Reference to any Code Section shall include any successor
provision thereto.

          2.7    “Company”
shall mean Alliance Financial Corporation.

          2.8    “Deferral
Election” shall mean a Director’s written election to
defer Director’s Fees hereunder, as more fully described in Section 4.1 herein.

          2.9    “Director”
shall mean a member of the Board of Directors.

          2.10  “Director’s
Fees” shall mean the fee payable to a Director for
services rendered as a member of the Board of Directors, including fees payable
for services as a member of any committee of the Board of Directors, and any
fees paid for services in other capacities approved by the Board.

          2.11  “Effective
Date of the Restatement” or “Restatement Effective Date” shall mean January 1, 2005.

          2.12  “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended from
time to time and any U.S. Department of Labor regulations or rulings thereunder.
References to any ERISA section shall include any successor provision thereto.

          2.13  “Plan”
shall mean the Alliance Financial Corporation Amended and Restated Directors
Compensation Deferral Plan, January 1, 2005, as embodied by this document.

          2.14  “Plan
Year” shall mean the 12-month period beginning January
1 and ending December 31.

          2.15  “Reserve
Account” shall mean the separate account described in
Article V that is maintained for a Director under this Plan.

          2.16  “Service”
means any period of time the Director is a member of the Board of Directors.

          2.17  “Valuation
Date” shall mean the date determined under Section
7.2.

Article III 

ELIGIBILITY 

          3.1    Eligible Participants.
Any Director serving on the Board of Directors as of the Restatement Effective
Date shall continue to be eligible to participate in the Plan. After the
Restatement Effective Date, any other person who is elected or appointed as
Director shall immediately become eligible to participate as of the first day
of the Director’s first term. A Director shall remain a participant until all
benefits to which the Director or beneficiary is entitled under this Plan have
been paid. Notwithstanding the foregoing, a Director’s right to initially defer
Director’s Fees under this Plan shall terminate immediately on the date the
Director’s status as a Director terminates for whatever reason.

Article IV 

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DEFERRAL ELECTIONS 

          4.1     Deferral
Elections. 

                    4.1.1  Initial
Elections. Each Director may elect
to defer any percentage of the Director’s Fees to be paid to the Director for
Service in attending meetings and otherwise during a Plan Year, provided the
Director delivers a written Deferral Election to the Administrator prior to
January 1 of such Plan Year. Notwithstanding the foregoing, with respect to the
first Plan Year in which the Director is eligible to participate, a Director
may deliver a written Deferral Election to the Administrator within thirty (30)
days following the first date of eligibility, however, the Deferral Election
may apply only to Compensation earned after the date of such Deferral Election.
The Deferral Election shall be signed by the Director and shall specify by
dollar amount or percentage the amount of Director’s Fees to be deferred. A
Director’s Deferral Election shall remain in effect, unless earlier modified by
the Director, until the Director’s status as a Director terminates, for
whatever reason. 

                    4.1.2  Modifying
Elections. A Director may
unilaterally modify a Deferral Election described in Section 4.1.1 (either to
terminate, increase or decrease the portion of future Director’s Fees to be
deferred under this Plan) by providing a written modification of the Deferral
Election to the Administrator. The modification shall become effective as of
the January 1 following the date such written modification is received by the
Administrator. Notwithstanding the foregoing, at any time during calendar year
2005, a Director may terminate a Deferral Election, or modify a Deferral
Election to reduce the amount of Director’s Fees subject to the Deferral
Election, so long as the Director’s Fees subject to the terminated or modified
Deferral Election is includible in the income of the Director in calendar year
2005 or, if later, in the taxable year in which the amounts are earned and
vested. 

                    4.1.3  2005
Transition Rule. Notwithstanding the
foregoing provisions of this Section 4.1, a Deferral Election with respect to
Director’s Fees to be earned during Plan Year 2005 shall be effective, provided
the following conditions are met: 

                              (a)     the
Deferral Election was delivered to the Administrator no later than March 15,
2005;

                              (b)     the
amounts to which the Deferral Election relate were not paid or payable at the time
of the election; and

                              (c)     the
Deferral Election was made in accordance with the Plan in effect prior to December
31, 2005 (other than a requirement to make the election before December 31,
2005).

          4.2     Election
Irrevocable. Except as otherwise
provided in Section 4.1, a Director’s Deferral Election shall be irrevocable
upon delivery to the Administrator.

Article V 

RESERVE ACCOUNTS 

          5.1    Establishment of Reserve
Accounts. The Company shall establish a Reserve Account for each
Director in the records of the Company and shall credit to and charge against
such Reserve Account amounts in the manner described in this Article.

          5.2     Crediting of Deferred
Compensation. On the
day on which a Director is entitled to payment of a Director’s Fee, the
Director’s Reserve Account shall be credited with the amount of Director’s Fees

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effectively
deferred by the Director pursuant to the Deferral Election(s) made in
accordance with Article IV of this Plan.

          5.3    Investment
of Reserve Account. Credits to a Director’s Reserve
Account shall be deemed to be invested in as many shares and fractions thereof
of the Company’s common stock as could have been purchased with the amount
deferred, if the selling price of a share of common stock had been the Book
Value of such share as of the year-end preceding the date of deferral. The
Company shall maintain records for each Director’s Reserve Account and shall
record the number of shares that could have been purchased with each amount
deferred.

          5.4     Earnings Credits. From
time to time, the
balance in a Director’s Reserve Account shall be credited with that number of
whole shares and fractions thereof of Company common stock which could be
purchased with dividends declared and paid on Company common stock, using for
this purpose Book Value of the Company’s common stock as of the year- end
preceding the date the dividends are declared. Dividend credits shall continue
to accrue to a Director’s Reserve Account until the Director’s status as a
Director terminates, for whatever reason.

          5.5     Capitalization
Changes. 

                    5.5.1   Adjustment
in Shares. In the event that: 

                              (a)    
the number of outstanding shares of the Company’s common stock shall be changed
by reason of split-ups, combinations of shares, recapitalizations, stock
dividends or otherwise, or

                              (b)    the
Company’s common stock shall be converted into or exchanged for other shares as
a result of any merger, consolidation, sale of assets or other
recapitalization, the number of the Company’s shares and fraction thereof then
credited to the Reserve Account of any Director shall be adjusted appropriately
so as to reflect such change.

                    5.5.2   Special
Valuation Rule.  

                              (a)    In
the event that a Change in Control as described in Section 11.3.4(A) occurs,
the number of share equivalents held in a Director’s Reserve Account shall be
valued by multiplying the number of the Company’s shares and fraction thereof
by the market value of such shares and fraction as of the date on which such
acquisition is consummated.

                              (b)   The
value, as thus computed using the market value approach, shall be compared with
the value, calculated as of the same date, using the book value (as of the
immediately preceding year end) approach as described in Section 5.3, and with
the dollar amounts actually deferred by the Director, and payment based on the
greatest of such three values shall be made as soon as practicable thereafter
in cash, notwithstanding any other provision of this Plan to the contrary.

                              (c)   For
purposes of this Section 5.5.2, “market value” shall mean:

	
 

	
 

	
 

	
 

	
 (1)

	
if the
  principal market for the Company’s stock is a national securities exchange,
  the last sale price per share of common stock on such exchange at the time of
  computation;

	
 

	
 

	
 

	
 

	
 (2)

	
if the
  principal market for the Company’s stock is other than on an exchange and
  bids and offers for the stock are reported in the National Association of
  Securities Dealers Automated Quotations System (NASDAQ), the mean between the
  highest current independent bid price

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per share
  and the lowest current independent asked price per share reported on “Level
  2” at the time of computation; and

	
 

	
 

	
 

	
 

	
(3)

	
if the
  principal market for the stock is other than on an exchange and bids and
  offers for the stock are not reported in NASDAQ, the mean between the highest
  current independent bid price per share and the lowest current independent
  asked price per share determined on the basis of reasonable inquiry at the
  time of computation.

          5.6     Distributions.
The Administrator shall charge all distributions made to a Director or
Beneficiary under this Plan against the Director’s Reserve Account when made.

          5.7     Nature
of Reserve Account. The Director’s Reserve Account
shall be utilized solely as a device for the measurement and determination of
the amount of the benefit to be paid to the Director under the Plan at the
times hereinafter specified. The Director’s Reserve Account shall not
constitute or be treated as a trust fund of any kind. Any Company common stock
utilized by the Company in accordance with the foregoing Sections of this
Article shall be and will remain at all times the sole property of the Company
and the Director shall have no ownership rights of any nature with respect to
Company stock hereunder. The Director’s rights hereunder are limited to the
rights to receive payments as provided herein, and the Director’s position with
respect to rights to payment is that of a general unsecured creditor of the
Company.

Article VI

PAYMENT EVENTS

          6.1     Distributable
Events. The balance in a Director’s Reserve Account
shall be paid upon any of the following to occur among the following
distributable events:

                    (a)     termination
of status as a Director for any reason other than death; 

                    (b)     the
death of the Director; or

                    (c)     at
the election of the Director, attainment of such age as is designated by the
Director but not earlier than age sixty-five (65). Such election shall be made
(if at all) at the time of the Director’s initial Deferral Election under
Section 4.1.1, except that any Director who is participating in the Plan during
calendar year 2006 may make such election by December 31, 2006 with respect to
any amounts not otherwise scheduled for payment hereunder during calendar year
2006.

                    Payment
under this Section shall be made or commence as of the first day of the first
month next following the month in which occurs the distributable event, in the
manner described in Article VII.

          6.2     Death.
If a Director dies before receiving any benefits hereunder, the Director’s
Reserve Account shall be paid to the Director’s Beneficiary designated in
accordance with the provisions of Section 11.1, in the manner provided in
Section 7.1, but subject to the Beneficiary’s right to delay payment or change
the method of payment as provided in Section 7.4. If the Director dies after
commencement of the benefit but before full payment has been made, the
remaining payments shall be made to the Director’s Beneficiary, designated in
accordance with the provisions of Section 11.1, in the same manner as if the
Director had survived.

          6.3     Unforeseeable
Financial Emergency. Upon a Director suffering an
Unforeseeable Financial Emergency, the Director shall be entitled to
immediately receive payment from his Reserve Account to the 

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extent
reasonably necessary to satisfy the emergency. For purposes of this Plan, an
Unforeseeable Financial Emergency shall mean a severe financial hardship to the
Director or the Director’s Beneficiary occasioned by:

                    (a)     an
illness or accident of the Director (Beneficiary) or the Director’s spouse, or
of any dependent (as defined in Code Section 152(a)) of the Director
(Beneficiary) or spouse;

                    (b)     a
loss of the Director’s (Beneficiary’s) or the Director’s (Beneficiary’s)
spouse’s property due to a casualty to the extent not covered by insurance; or

                    (c)     other
similar extraordinary and unforeseeable circumstances arising as a result of an
event or events beyond the control of the Director (Beneficiary).

                     Payment
under this Section shall be made only if approved by the Plan Administrator as
being reasonably necessary to satisfy an Unforeseeable Financial Emergency as
described herein and in Code Section 409A. Payment shall in no event exceed the
amount required to meet the Unforeseeable Financial Emergency (including income
taxes payable as a result of distribution under this Section) after taking into
account the proceeds of insurance and liquidation of the Director’s
(Beneficiary’s) assets to the extent such liquidation would not in itself cause
severe financial hardship to the Director (Beneficiary).

Article VII

PAYMENT OPTIONS

          7.1     Payment
Options.

                    7.1.1     Director’s
Election. Each Director shall
elect in the initial Deferral Election the method under which the balance in
the Director’s Reserve Account will be distributed from among the following
options:

                                 (a)     one
single sum payment of the balance, to be made the first day of the first month
following the distributable event, unless deferred under Section 7.4 or delayed
under Section 7.1.2; or

                                 (b)     annual
installment payments over a period of ten (10) years, commencing on the first
day of the second month following the distributable event, unless deferred
under Section 7.4 or delayed under Section 7.1.2.

                    Payment
shall be made in the manner so elected subject to the ensuing provisions of
this Article. The Director may elect a different method of payment for each
distributable event described in Section 6.1. If the Director elects the
installment payment option, the payment of each annual installment shall be
made on the anniversary of the date of the first installment payment, and the
amount of the annual installment shall be determined in accordance with Section
7.3. In the event the Director fails to make a valid election of the payment
method, the distribution will be made in a single sum payment. Notwithstanding
the provisions of Sections 7.4 or 7.5 below, a Director may elect on or before
December 31, 2005, the method of payment of amounts that were deferred before
the date of such election.

                    7.1.2     Delay
in Payment for Key Employees.
Notwithstanding anything herein to the contrary, if payment is by reason of the
termination of the Director’s status as a Director other than by reason of
death, and the Director was a Key Employee of the Company at any time during
the twelve (12) month period ending on December 31 of the Plan Year prior to
the Plan Year during which the distributable event occurs, payment of the
Director’s single sum payment, or the first installment of the benefit, shall
be delayed until the first day of the seventh (7th) month following
such distributable event, or if the Director’s death occurs before 

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then, to the
first day of the month following the Director’s death. For purposes hereof,
“Key Employee” shall mean an employee of the Company who satisfies any of the
following criteria:

                              (a)     an
officer of the Company having annual compensation greater than $130,000 (as
adjusted in accordance with the provisions of Code Section 416(i)(1);

                              (b)     a
five percent (5%) owner of the Company’s stock;

                              (c)     a
one percent (1%) owner of the Company’s stock and having annual compensation
greater than $150,000.

The
determination of compensation and stock ownership shall be made in accordance
with the provisions of Code Section 416(i).

          7.2     Valuations
for Distribution.

                    7.2.1     Valuation
Date. The Valuation Date for a
Director shall be the date of the applicable distributable event described in
Section 6.1.

                    7.2.2     Initial
Valuation. The Administrator shall
determine the balance in the Director’s Reserve Account as of the Valuation
Date established under Section 7.2.1, by multiplying the number of shares of
Company common stock credited to the Director’s Reserve Account as of such
Valuation Date by the Book Value of the Company common stock as of immediately
preceding year end, and the amount so calculated shall represent the Director’s
entitlement, provided, however, that in no event shall the Director’s
entitlement be less than the aggregate of the Director’s Fees actually deferred
from time to time under this Plan.

                    7.2.3     Subsequent
Crediting. Unless payment of the
Director’s benefit is made in a single sum immediately following the
distributable event, monthly earnings shall continue to be credited to the
Director’s Reserve Account based on the Company’s bank subsidiary’s one-year
certificate of deposit rate in effect as of the first day of the year,
commencing as of the Valuation Date established under Section 7.2.1, until
final payment from the Reserve Account is made. Such credit shall be in lieu of
the dividend credit to the Director’s Reserve Account as described in Section
5.4.

          7.3     Installment
Payment Amounts. If installments are selected by the
Director, each annual installment shall be in an amount equal to the product
obtained by multiplying the balance credited to the Director’s Reserve Account
as of the payment date by a fraction, the numerator of which is “1” and the
denominator of which is the number of years left in the ten (10) year term.

          7.4     Subsequent
Payment Elections. With the consent of the
Administrator, a Director or, as provided in Section 6.2 the Director’s
Beneficiary, may delay payment or change the method of payment of the
Director’s Reserve Account that is otherwise in effect with respect to a
distributable event described in Section 6.1, subject to the following and
subject to the prohibition under Section 7.5:

                    7.4.1     Delayed
Effective Date. The new election
may not take effect until at least twelve (12) months after the date on which
the new election is made.

                    7.4.2     Mandatory
Delayed Payments. If the new
election relates to a payment for a distributable event described in Sections
6.1(a) or 6.1(c), the new election must provide for the deferral of payment for
a period of five (5) years from the date such payment would otherwise have been
made. The foregoing shall be applied solely to that specific distributable
event for which a change in the Director’s election is made.

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                    7.4.3     Transition
Rule. Notwithstanding the
foregoing provisions of Sections 7.4.1 and 7.4.2, a Director may elect any
permissible optional form of payment described in Section 7.1, and/or to delay
payment for any period up to ten (10) years beyond the otherwise scheduled
payment date as described in Section 7.1, provided the Director delivers his
written election to the Administrator by December 31, 2006.

          7.5     Acceleration
Prohibited. Except as expressly provided under this
Plan or under Code Section 409A, the acceleration of the time or schedule of
any payment due under this Plan is prohibited. The foregoing shall not prohibit
a Director from changing the form of payment from installment to single sum
provided the change otherwise complies with the provisions of Section 7.4
above.

          7.6     De
Minimis Amounts. Notwithstanding any payment election
made by the Director, if the balance in a Director’s Reserve Account as of the
date of a distributable event described in Section 6.1 does not exceed Ten
Thousand Dollars ($10,000.00), the balance will be distributed in a single lump
sum payment within ninety (90) days following the distributable event.

          7.7     Income,
FICA and Withholding Taxes.

                    7.7.1     Disqualification. If
at any time the
Administrator determines that the Plan, or the administration or operation of
the Plan, does not meet the requirements imposed under Code Section 409A, the
Administrator shall immediately pay to the Director in a single sum an amount
equal to the amount that the Director timely reports for federal income tax
purposes as taxable compensation.

                    7.7.2     FICA
Taxes and Gross Up. Upon request by
the Director, the Administrator shall immediately pay to or on behalf of the
Director, as a distribution subject to the provisions of Section 5.6, an amount
equal to the sum of (i) the taxes then imposed under Code Sections 3101,
3121(a) or 3121(v)(2) on amounts of compensation deferred under this Plan (the
“FICA Amount”), plus (ii) the total federal withholding amount under Code
Section 3401, and corresponding state and local income tax withholding amounts
that are attributable to the FICA Amount (the “initial gross-up amount”) and
(iii) the additional income tax withholdings attributable to the initial
gross-up amount.

                    7.7.3     Withholdings. The
Administrator shall
reduce any benefit payment being made under this Plan by an amount the
Administrator deems necessary to comply with any federal or state tax
withholding requirements.

Article VIII

ADMINISTRATION

          8.1     Plan
Administrator. The Board of Directors of the Company
may appoint a Committee to administer the Plan, but in the absence of such
appointment, the Board of Directors shall administer the Plan. The Committee
shall be referred to herein as the “Administrator” and shall be the
“administrator” as that term is defined in Section 3(15) of ERISA. The
Administrator shall be responsible for the general operation and administration
of the Plan and for carrying out the provisions thereof. The Administrator may
delegate to others certain aspects of the management and operational
responsibilities of the Plan including the employment of advisors and the
delegation of ministerial duties to qualified individuals, provided that such
delegation is in writing.

          8.2     Plenary
Powers. The Administrator shall have all powers
necessary or appropriate to enable it to carry out its administrative duties
including, but not limited to, (i) the duty and power to interpret the Plan;
(ii) the power to establish and revise rules and regulations relating to the
Plan and its operation; (iii) the power to employ attorneys, consultants,
accountants and others to assist it in performing its duties (upon whose advice
the Committee may rely); (iv) the power to determine all questions that may
arise hereunder as to the status and

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rights of any
participant and any purported Beneficiary; and (v) the power to take such other
action as the Administrator may deem necessary or advisable in the
administration of the Plan. All decisions by the Administrator shall be binding
upon and conclusive as to all parties concerned. The Administrator shall have
absolute, exclusive, total, and complete discretion in carrying out its duties,
and no decision shall be modified or overturned upon judicial review unless it
was arbitrary or capricious. No member of the Committee shall be personally
liable for any actions taken or not taken by the Administrator unless the
member’s action involves willful misconduct.

          8.3     Costs.
The costs of administering this Plan shall be borne by the Company.

          8.4     Indemnification.
To the extent not prohibited by law, the Company shall indemnify the members of
the Committee, its agents, officers, and employees of the Company against any
and all claims, losses, damages and expenses, including attorney’s fees,
reasonably incurred by them, and any liability, including any amounts paid in
settlement (with the Company’s written approval), arising from their action or
failure to act in connection with the administration of this Plan, except when
the same is judicially determined to be attributable to their gross negligence
or willful misconduct.

Article IX

CLAIMS PROCEDURE

          9.1     Generally.
Any Director or Beneficiary (“Claimant”) seeking payment of any benefit
hereunder must submit a written request to the Administrator. If a claim for
benefits is wholly or partially denied, notice of the denial, prepared in accordance
with Section 9.3, shall be furnished to the Claimant within a reasonable period
of time, not to exceed ninety (90) days (forty-five (45) days if the claim is
based on a disability), after receipt of the request by the Company
(“Determination Period”), unless special circumstances require an extension of
time for processing the request. If such an extension of time is required,
written notice of the extension shall be furnished to the Claimant prior to the
termination of the initial Determination Period. In no event shall such
extension exceed a period of ninety (90) days from the end of the initial
Determination Period. However, if the claim is based on a disability, the
extension period is thirty (30) days and, if the Administrator determines that,
due to matters beyond its control, a decision cannot be rendered within the
extension period, the Administrator may extend the Determination Period an
additional thirty (30) days by notifying the Claimant of such further
extension. Each extension notice shall indicate the special circumstances
requiring an extension of time and the date on which the Administrator expects
to render a decision.

          9.2     Disability
Claim. If the claim is based on a disability, each
extension notice shall specifically explain the standards on which entitlement
to a benefit is based, the unresolved issues, and any additional information
needed to resolve the issues. The Claimant may provide any such additional
information within forty-five (45) days after receipt of such extension notice.

          9.3     Denial
Notice. The Administrator shall provide the Claimant
whose request for benefits is denied a written notice setting forth, in a
manner calculated to be understood by the Claimant, the following:

                    (a)     the
specific reason(s) for the denial;

                    (b)     specific
references to the pertinent provisions of the Plan upon which the denial is
based;

                    (c)     a
description of any additional material or information necessary for the
Claimant to perfect the request and an explanation of why such material or
information is necessary; 

                    (d)     an
explanation of the review procedure as set forth in Sections 9.4 and 9.5, and a
statement of the Claimant’s right to bring a civil action in a court of law
after final administrative review; and

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                    (e)     if
an internal rule, guideline, protocol or other similar criterion was relied on
in making the determination, either (i) a recitation of such rule, guideline,
protocol or other similar criterion, or (ii) a statement that such criterion
was relied upon and that a copy of it will be provided free of charge to the
Claimant upon request. 

          9.4     Appeal. The purpose of the
review procedure set
forth in this Section 9.4 and Section 9.5 is to provide a procedure by which the
Claimant may have a reasonable opportunity to appeal to the Company a denial of
a request for benefits.  To accomplish
this purpose, the Claimant (or the Claimant’s duly authorized representative)
may (a) review pertinent documents and records; and (b) submit issues,
documents, records and comments in writing.
The Claimant (or the Claimant’s duly authorized representative) may
request a review by filing a written request for review with the Company at any
time within sixty (60) days (one hundred eighty (180) days if the claim for
benefits is based on a disability) after receipt by the Claimant of written
notice of the denial of the Claimant’s request for benefits. 

          9.5     Decision on Appeal. A
decision on review of a denied request for
benefits shall be made by the Board of Directors, after taking into account all
comments, documents, records and other pertinent information regardless of when
submitted.  It shall make a decision
promptly, but not later than sixty (60) days (forty-five (45) days if the claim
for benefits is based on a disability) after receipt of the request for review,
unless special circumstances require an extension of time for processing, in
which case a decision shall be rendered as soon as possible, but not later than
one hundred twenty (120) days (ninety (90) days if the claim for benefits is
based on a disability) after receipt of the request of review.  If such an extension of time for review is
required, written notice of the extension shall be furnished to the Claimant prior
to the commencement of the extension.
The decision on review shall be in writing, shall be written in a manner
calculated to be understood by the Claimant, and shall include specific reasons
for the decision and specific references to the pertinent provisions of the
Plan upon which the decision is based. 

          9.6     Special
Disability Claim Rules. If the claim is based on a disability:  (a) the Board shall afford no deference to the initial adverse
determination; (b) no person involved in making the initial determination shall
be eligible to review such initial determination; (c) the Board of Directors
shall consult with a health care professional (unrelated to any health care
professional involved in the initial determination) with expertise and
experience in the medical field, if the determination was based to any degree
upon a medical judgment; and (d) those medical or vocational experts whose
advice was obtained in behalf of the Board of Directors in the initial
determination process shall be identified.

          9.7     Limitation of
Actions. Every asserted
right of action by or on behalf of any Director or Beneficiary against the
Administrator, any member of the Board of Directors or any Committee, or
against any officer or employee of the Company, arising out of or in connection
with this Plan, shall, irrespective of the place where such right of action may
arise or be asserted and irrespective of the place of residence of any such
member, director, officer or employee, cease and be barred on the date that is
one year after the date of the alleged act or omission in respect of which such
right of action arises. 

Article X

LIMITATIONS

          10.1    Non-Alienation of Benefits.

                    10.1.1  Non-Assignment;
Non-Alienation. Except as provided in this Section 10.1, no
right or benefit under the Plan shall be subject in any manner to alienation by
anticipation, sale, transfer, assignment, bankruptcy, pledge, attachment,
charge, or encumbrance of any kind, nor in any manner be subject to the debts 

-37-

or liabilities
of any person, except to the extent such debt or liability arises by reason of
a fraud, embezzlement or other felonious action against or which damages the
Company.  Any attempt to so alienate or
subject any such right or benefit in violation of the foregoing, whether or not
such benefit is currently payable, shall be void.  If any person shall or attempt to alienate, sell, transfer,
assign, pledge, attach, charge or otherwise encumber any amount payable under the
Plan, or any part thereof, or if by reason of his bankruptcy or other event
happening at any time such amounts
would be made subject to his debts or liabilities or would otherwise not
be enjoyed by him in violation of the foregoing, then the Company, in its sole
discretion, may direct that such amount be withheld and the same or any part
thereof be paid or applied to or for the benefit of such person, his spouse,
children or other dependents, or any of them in such manner and proportion as
the Company may deem proper. 

                    10.1.2  Qualified
Domestic Relations Order. Notwithstanding the prohibitions contained
in Section 10.1.1, all or a portion of a Director’s benefit under the Plan
shall be paid to one or more Alternate Payees in accordance with the terms of a
Qualified Domestic Relations Order. 

                                (a)     Initial
Notice.  Within thirty (30) days following receipt of any domestic
relations order, or within such other time period as may be prescribed by
Treasury Regulations, the Administrator shall notify the Director and each
Alternate Payee in writing of its receipt and shall set out the Administrator’s
procedures as outlined below for determining if such order is qualified under
Code Section 414(p)(1)(A). 

                                (b)     Determination
Notice.  Within ninety (90) days following the
Administrator’s initial notice described in subparagraph (a) above, the
Administrator shall notify the Director and each Alternate Payee in writing of
its determination whether the proposed order is qualified.  If the order is denied qualified status, the
Administrator shall list the specific reasons therefor.  Whether or not the order is determined to be
qualified, the Administrator shall notify the Director and each Alternate Payee
of their right to appeal such determination within sixty (60) days after
receipt of the determination, and that failure to appeal such determination in
writing within the sixty (60)-day period will render such determination final,
binding, and conclusive.  The
Administrator’s notice shall identify the name of the Administrator and the
address to which appeal is to be forwarded. 

                                (c)     Appeal.
If the Director or Alternate Payee should appeal the Administrator’s
decision, a duly authorized representative may submit in writing all pertinent
issues and comments and may review pertinent documents.  The Administrator shall re-examine all facts
related to the appeal and make a final determination as to whether the initial
determination is justified under the circumstances.  The Administrator shall notify the appellant of the
Administrator’s decision within such time period as provided in rules adopted
by the Administrator. 

                                (d)     Authorized
Representative.  An Alternate Payee may designate an
authorized representative to receive copies of all notices with respect to the
payment of benefits or claim for such payment under a domestic relations order.  The Alternate Payee shall notify the
Administrator of such designation in writing, which shall be effective upon its
receipt by the Administrator. 

                                (e)     Separate
Accounting.  Upon receipt of a domestic relations order,
the Administrator shall separately account for any amount payable to the
Alternate Payee(s) named in such domestic relations order for a period of
eighteen (18) months or upon a determination during such period of the order’s
qualified status.  If during such
eighteen (18)-month period the order is determined to be qualified, the
Administrator shall pay the separately accounted for amount to the persons
entitled to receive it. 

                                (f)     Definitions.

	
 

	
 

	
 

	
(i)     “Qualified
  Domestic Relations Order” shall mean a domestic relations order that meets
  the requirements of Code Section 414(p).

-38-

	
 

	
 

	
 

	
(ii)     “Domestic
  Relations Order” shall mean any judgment, decree or order, including approval
  of a property settlement agreement, which relates to the provision of child
  support, alimony payments, or marital property rights of a spouse, former
  spouse, child or other dependent of the Director, and which is made pursuant
  to a state domestic relations law (including community property law).

	
 

	
 

	
 

	
(iii)     “Alternate
  Payee” shall mean a spouse, former spouse, child or other dependent of the
  Director who is recognized by a domestic relations order as entitled to
  receive all or a portion of the benefits payable with respect to the
  Director. 

                                (g)     Payment.
Payment to an Alternate Payee under a Qualified Domestic Relations Order
shall be limited to concurrent payment with any portion of the benefit payable
to the Director under the Plan, and if there remains no benefit payable to the
Director hereunder after considering the terms of the Qualified Domestic
Relations Order, payment shall only be made at such times and in such form of
payment as the Director would have been entitled to hereunder had there been no
Qualified Domestic Relations Order. 

          10.2    Unsecured Creditor. Nothing
contained in the Plan and no action
taken pursuant to the provisions of the Plan shall create or be construed to
create a fiduciary relationship between the Company and a Director, the
Director’s designated Beneficiary or any other person.  The Director shall have no preferred claim
on or title to, or beneficial interest in, any asset of the Company by reason
of the Plan.  The Plan constitutes a
mere promise by the Company to pay benefits in the future.  To the extent that any person acquires a
right to receive payments from the Company under the Plan, such right shall be
no greater than the right of any unsecured general creditor of the Company. 

Article XI

MISCELLANEOUS

          11.1   Beneficiary.

                    11.1.1  Designation. The
Director’s Beneficiary shall be the person or persons
designated by the Director on the beneficiary designation form provided by and
filed with the Administrator and signed by the Director.  If the Director does not designate a
Beneficiary, or if no designated Beneficiary survives the Director, the
Beneficiary shall be the Director’s estate.
A Director may change or revoke a designation of Beneficiary only by
signing and filing a new beneficiary designation form with the Administrator. 

                    11.1.2  Beneficiary’s
Death. If a Beneficiary (the “Primary Beneficiary”)
is receiving or is entitled to receive payments under the Plan and dies before
receiving all of the payments due the Beneficiary, the balance to which the
Beneficiary is entitled shall be paid to the contingent Beneficiary, if any,
named in the Director’s beneficiary designation form then in effect.  If there is no contingent Beneficiary, the
balance shall be paid to the estate of the Primary Beneficiary.   

                    11.1.3  Beneficiary’s
Disclaimer. Any Beneficiary may disclaim all or any part
of any benefit to which such Beneficiary is entitled hereunder by filing a
written disclaimer with the Administrator before payment of such benefit is to
be made.  Such a disclaimer shall be
made in a form satisfactory to the Administrator and shall be irrevocable when
filed.  Any benefit disclaimed shall be
payable from the Plan in the same manner as if the Beneficiary who filed the
disclaimer had predeceased the Director. 

          11.2   No
Service Contract.
Neither the Plan, nor the right to participate in the Plan or receive
benefits under the Plan, shall constitute or be construed as a Director’s
contractual right to be retained as a Director.  Such status shall be determined strictly in accordance with the
Company’s by-laws and rules. 

-39-

          11.3   Amendment;
Termination.

                    11.3.1  Right
to Amend. The Company shall have the right at any time and from time to
time to amend, in whole or in part, any or all of the provisions of the Plan
except to the extent any amendment would violate the provisions of Code Section
409A. 

                    11.3.2  Right
to Terminate. The Company may at any time terminate the
Plan.  Without limiting the generality
of the foregoing, the Company may terminate the Plan in the Company’s
discretion upon any of the following events: 

                                (a)     the
dissolution of the Company in a manner that is taxed under Code Section 331, in
which case termination must occur (if at all) within twelve (12) months
following such dissolution; 

                                (b)     the
dissolution of the Company with approval of a bankruptcy court pursuant to the
provisions of 11 U.S.C. §503(b)(1)(A); 

                                (c)     a
Change in Control as defined in Section 11.3.4, in which case termination must
occur within the period extending thirty (30) days prior and twelve (12) months
following such Change in Control; 

                                (d)     the
concurrent termination of all arrangements that are similar to the arrangement
under the Plan in accordance with the conditions set out in Code Section 409A
that permit acceleration of payment of benefits upon termination of deferred
compensation arrangements; and 

                                (e)     such
other events, and subject to such conditions, as prescribed by Code Section
409A. 

Notwithstanding
the foregoing, in the event of a Change in Control as described in Section
11.3.4(A), termination of the Plan shall be mandatory and shall be in
accordance with Section 5.5.2 above. 

                    11.3.3  Accelerated
Payment in Limited Events. The termination of the Plan upon any of the
events listed in subsections (a)-(e) of Section 11.3.2 above shall entitle each
Director to immediate payment of the balance in the Director’s Reserve Account
as of the date of such event (whether or not the Director is otherwise vested
in such benefit) but only if made in accordance with the conditions set out in
Code Section 409A.  Except as provided
in the foregoing provisions of this Section 11.3.3, no acceleration of the time
or form of payment of any benefit under the Plan may occur as a result of the
Plan’s termination. 

                    11.3.4  Change
in Control.  For purposes of Section 11.3.2(c), a Change
in Control occurs under any one of the following circumstances: 

                                        (A)     Change
in Ownership.  A Change in Control occurs on the date that
any one person, or more than one person acting as a group (as defined in
applicable Treasury Regulations), acquires ownership of a company (either by
direct purchase or indirectly through the redemption of the company’s ownership
interests) that, together with the interest held by such person or group,
constitutes more than 50% of the total fair market value or total voting power
of the ownership interests, excluding the acquisition of additional ownership
interests by a person or more than one person acting as a group who is
considered to already own more than 50% of the total fair market value or total
voting power of such interests. 

                                        (B)     Change
in Effective Control.  A Change in Control of a company occurs on
the date that either: 

-40-

                                                  (1)     any
one person, or more than one person acting as a group, acquires (or has
acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons) ownership of interests possessing 35% or
more of the total voting power of such ownership interests of the company; or 

                                                  (2)     a
majority of the members of the board of directors of the company is replaced
during any 12-month period by directors whose appointment or election is not
endorsed by a majority of the members of the board of directors prior to the
date of the appointment or election; provided, that this subparagraph
(b)(ii)(B) shall apply only to a company for which no other company is a
majority owner; 

                                        (C)     Change
in Ownership of Substantial Assets.  A Change in Control occurs on the date that any
one person, or more than one person acting as a group, acquires (or has
acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons) assets from a company that have a total
gross fair market value of 40% or more of the total gross fair market value of
the assets of the company immediately prior to such acquisition(s).  For this purpose, gross fair market value
means the value of the assets of the company, or the value of the assets being
disposed of, determined without regard to any liabilities associated with such
assets.  No Change in Control under this
subparagraph (b)(ii)(C) occurs when transfer of assets is made to the owners,
or entity controlled by them, of the transferring company immediately after the
transfer, as provided in Treasury Regulations. 

                              The
Change in Control described in the foregoing must relate to (i) a company that
is the employer at the time of the Change in Control; (ii) a company that is
liable for the payment of benefits under this Plan; (iii) a company that is a
majority owner of the company described in (i) or (ii); or (iv) any company in
a chain of companies in which each company is a majority owner of another
company in the chain, ending with the company described in (i) or (ii).  A Change in Control shall not be deemed to
have occurred until a majority of the members of the Board of Directors
receives written certification from the Administrator that one of the events
set forth in this Section has occurred.
The occurrence of an event described in this Section must be objectively
determinable by the Administrator and, if made in good faith on the basis of
information available at the time, such determination shall be conclusive and
binding on the Administrator, the Company, the Employee and his beneficiaries
for all purposes of this Agreement.

          11.4    Construction; Governing
Laws.

                    11.4.1  Intent. This
Plan shall be construed after
taking into account the following intentions of the Company: 

                                (a)     that
the Plan is an unfunded arrangement maintained by the Company primarily for the
purpose of providing deferred compensation for key personnel and is, therefore,
exempt from the participation, vesting, funding and fiduciary responsibility
provisions of Title I of ERISA under ERISA Sections 201(2), 301(a)(3), and
401(a)(1), respectively; and 

                                (b)     that
the Plan satisfy the requirements set out in Code Section 409A and Treasury
Regulations promulgated thereunder for the effective deferral of compensation
for income tax purposes. 

                    11.4.2  Governing
Law. This Plan shall be governed by the laws of the State of New York
except to the extent such laws are superceded by federal law. 

-41-Amendment to License Agreement

 Exhibit 10.47 
 ***  Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested 
 under 17 C.F.R.
Sections 200.800(b)(4) 
 and 240.24b-2. 
 Amendment to License Agreement 
 This Amendment made this 20th day of February 2006 (the “Effective Date”) is by and
between AnGes MG, Inc., a corporation with its principal executive offices located at 7-7-15, Saito-Asagi, Ibaraki, Osaka, 567-0085, Japan (“Anges”), and VICAL Incorporated, a Delaware corporation having its principal place of business at
10390 Pacific Center Court, San Diego, California 92121, USA (“VICAL”). 
 WHEREAS, VICAL and Anges entered into a License
Agreement (“Agreement”) dated May 24, 2005; and 
 WHEREAS, the parties now wish to revise certain provision of the Agreement
as provided below to eliminate a patent application [***] from, and to add two patent applications [***] and [***] to, the Patent Rights. 
 NOW THEREFORE, the parties agree as follow: 
  

	 	1.	VICAL and Anges agree to amend Exhibit A of the Agreement as described in Exhibit A attached hereto, pursuant to Section 10.1 of the Agreement. 

 IN WITNESS WHEREOF, both VICAL and Anges have executed this Amendment by their respective and duly authorized officers on the day and year written. This
Amendment is effective as of the Effective Date. 
  

									
	 Vical Incorporated
	 		 	 AnGes MG, Inc.

					
	By:	 	/s/ Vijay B. Samant	 		 	 By:
	 	/s/ Ei Yamada, Ph. D.
					
	Date:	 	 February 20, 2006
	 		 	 Date:
	 	 February 20, 2006

					
	 Name:
	 	Vijay B. Samant	 		 	 Name:
	 	Ei Yamada, Ph. D.
					
	 Title:
	 	 President and Chief Executive Officer
	 		 	 Title:
	 	 CEO

 ***  Confidential Treatment Requested 

 Exhibit A 
  

			
	United States	  	 
		
	[***]	  	
		
	[***]	  	
		
	[***] 	  	
		
	[***]	  	
		
	[***]	  	
	
	US [***] is specifically excluded, but the continuations [***] and
		
	[***] are included.	  	
		
	Japan	  	 
		
	[***]	  	
		
	Europe	  	 
		
	[***]	  	
		
	Canada	  	 
		
	[***]	  	

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 *** Confidential Treatment Requested

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