Document:

EXHIBIT 10.6
   Form of Employment Agreement between NBT Bancorp Inc. and Daryl R. Forsythe
                          made as of January 1, 2000.

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                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT (the "Agreement") made and entered into as of
the first day of January,  2000, by and between DARYL R. FORSYTHE  ("Executive")
and NBT BANCORP  INC., a Delaware  corporation  having its  principal  office in
Norwich, New York ("NBTB")

                            W I T N E S S E T H    T H A T:

         WHEREAS, Executive is the president and chief executive officer of NBTB
and chairman and chief executive officer of NBT Bank,  National  Association,  a
national banking  association  which is a wholly-owned  subsidiary of NBTB ("NBT
Bank");

         WHEREAS, NBTB desires to secure the continued employment of Executive,
subject to the provisions of this Agreement; and

         WHEREAS,  Executive is desirous of entering into the Agreement for such
periods and upon the terms and conditions set forth herein;

         NOW,  THEREFORE,  in consideration of the premises and mutual covenants
and agreements hereinafter set forth, intending to be legally bound, the parties
agree as follows:

         1.       EMPLOYMENT; RESPONSIBILITIES AND DUTIES.

                  (a) NBTB  hereby  agrees to employ  Executive,  and  Executive
hereby  agrees to serve as the president  and chief  executive  officer of NBTB,
during  the first  fifteen  months of the Term of  Employment  and as  chairman,
president and chief executive  officer of NBTB during the next twenty-one months
of the Term of  Employment.  NBTB  further  agrees  to cause  NBT Bank to employ
Executive,  and  Executive  hereby  agrees  to serve as the  chairman  and chief
executive  officer of NBT Bank,  during the first fifteen  months of the Term of
Employment  and as chairman of the board of NBT Bank during the next  twenty-one
months of the Term of Employment.  Executive  shall have such executive  duties,
responsibilities,  and authority as shall be set forth in the bylaws of NBTB and
NBT Bank or as may otherwise be determined by NBTB.

                  (b)  Executive  shall  devote his full  working  time and best
efforts to the performance of his responsibilities and duties hereunder.  During
the Term of Employment,  Executive shall not,  without the prior written consent
of the Board of Directors of NBTB,  render services as an employee,  independent
contractor,  or otherwise,  whether or not compensated,  to any person or entity
other  than  NBTB  or  its  affiliates;   provided  that  Executive  may,  where
involvement  in  such  activities  does  not  individually  or in the  aggregate
significantly  interfere  with the  performance  by  Executive  of his duties or
violate the  provisions of section 4 hereof,  (i) render  services to charitable
organizations,  (ii) manage his personal  investments,  and (iii) with the prior
permission of the Board of Directors of NBTB, hold such other  directorships  or
part-time  academic  appointments  or have such other business  affiliations  as
would otherwise be prohibited under this section 1.

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         2.       TERM OF EMPLOYMENT.

                  (a) The term of this Agreement ("Term of Employment") shall be
the period  commencing on the date of this Agreement (the  "Commencement  Date")
and  continuing  until the  Termination  Date,  which shall mean the earliest to
occur of:

                           (i)      the third anniversary of the Commencement
Date, unless the Term of Employment shall be extended for one additional year by
the mutual agreement of the parties;

                           (ii)     the death of Executive;

                           (iii)    Executive's inability to perform his duties
hereunder, as a result of physical or mental disability as reasonably determined
by the personal physician of Executive,  for a period of at least 180
consecutive  days or for at least 180 days  during any period of twelve
consecutive months during the Term of Employment; or

                           (iv)     the discharge of Executive by NBTB "for
cause," which shall mean one or more of the following:

                                    (A)     any willful or gross misconduct by
Executive  with respect to the business and affairs of NBTB or NBT Bank, or with
respect  to any of its  affiliates  for which  Executive  is  assigned  material
responsibilities or duties;

                                    (B)     the conviction of Executive of a
felony  (after the earlier of the  expiration  of any  applicable  appeal period
without  perfection  of an appeal by Executive or the denial of any appeal as to
which no further  appeal or review is  available  to  Executive)  whether or not
committed in the course of his employment by NBTB;

                                    (C)     Executive's willful neglect,
failure,  or refusal to carry out his duties  hereunder in a  reasonable  manner
(other  than  any  such  failure  resulting  from  disability  or  death or from
termination  by  Executive  for Good Reason,  as  hereinafter  defined)  after a
written  demand for  substantial  performance  is delivered  to  Executive  that
specifically identifies the manner in which NBTB believes that Executive has not
substantially  performed his duties and  Executive  has not resumed  substantial
performance of his duties on a continuous  basis within thirty days of receiving
such demand; or

                                    (D)     the breach by Executive of any
representation or warranty in section 6(a) hereof or of any agreement  contained
in section 1, 4, 5, or 6(b) hereof, which breach is material and adverse to NBTB
or  any  of  its   affiliates   for  which   Executive   is  assigned   material
responsibilities or duties; or

                           (v)      Executive's resignation from his position as
chairman,  president,  or chief executive officer of NBTB or NBT Bank other than
in  implementation  of the schedule set out in section 1(a) of this Agreement or
for "Good Reason," as hereinafter defined; or

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                           (vi)     the termination of Executive's employment by
NBTB  "without  cause," which shall be for any reason other than those set forth
in subsections (i), (ii), (iii), (iv), or (v) of this section 2(a), at any time,
upon the thirtieth day following notice to Executive; or

                           (vii)    Executive's resignation for "Good Reason."

"Good  Reason"  shall  mean,  without   Executive's   express  written  consent,
reassignment  of Executive to a position other than as set forth in section 1(a)
of this  Agreement  other than for "Cause," or a decrease in the amount or level
of  Executive's  salary or  benefits  from the  amount or level  established  in
section 3 hereof.

                  (b)  In the  event  that  the  Term  of  Employment  shall  be
terminated  for any  reason  other than that set forth in  section  2(a)(vi)  or
2(a)(vii) hereof, Executive shall be entitled to receive, upon the occurrence of
any such event:

                           (i)      any salary (as hereinafter defined) payable
pursuant to section 3(a)(i) hereof which shall have accrued as of the
Termination Date; and

                           (ii)     such rights as Executive shall have accrued
as of the Termination Date under the terms of any plans or arrangements in which
he participates  pursuant to section 3(b) hereof, any right to reimbursement for
expenses  accrued as of the  Termination  Date payable  pursuant to section 3(h)
hereof,  and the right to receive the cash  equivalent  of paid annual leave and
sick leave accrued as of the Termination Date pursuant to section 3(d) hereof.

                  (c)  In the  event  that  the  Term  of  Employment  shall  be
terminated  for the reason set forth in section  2(a)(vi) or  2(a)(vii)  hereof,
Executive shall be entitled to receive:

                           (i)      any salary payable pursuant to section 3(a)
(i) hereof which shall have  accrued as of the  Termination  Date,  and, for the
period  commencing on the date  immediately  following the Termination  Date and
ending upon and including the later of the third anniversary of the Commencement
Date or the first  anniversary of the  Termination  Date,  salary payable at the
rate established pursuant to section 3(a)(i) hereof, in a manner consistent with
the normal  payroll  practices of NBTB with  respect to  executive  personnel as
presently in effect or as they may be modified by NBTB from time to time; and

                           (ii)     such rights as Executive may have accrued as
of the Termination Date under the terms of any plans or arrangements in which he
participates  pursuant to section 3(b) hereof,  any right to  reimbursement  for
expenses  accrued as of the  Termination  Date payable  pursuant to section 3(h)
hereof,  and the right to receive the cash  equivalent  of paid annual leave and
sick leave accrued as of the Termination Date pursuant to section 3(d) hereof.

                  (d)  Any   provision   of  this  section  2  to  the  contrary
notwithstanding,  in the event that the  employment  of  Executive  with NBTB is
terminated  in any  situation  described  in section 3 of the  change-in-control
letter  agreement  dated  January  1,  2000  between  NBTB  and  Executive  (the

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"Change-in-Control Agreement") so as to entitle Executive to a severance payment
and other benefits  described in section 3 of the  Change-in-Control  Agreement,
then Executive  shall be entitled to receive the following,  and no more,  under
this section 2:

                           (i)      any salary payable pursuant to section 3(a)
(i) hereof which shall have accrued as of the Termination Date;

                           (ii)     such rights as Executive shall have accrued
as of the Termination Date under the terms of any plans or arrangements in which
he participates  pursuant to section 3(b) hereof, any right to reimbursement for
expenses  accrued as of the  Termination  Date payable  pursuant to section 3(h)
hereof,  and the right to receive the cash  equivalent  of paid annual leave and
sick leave accrued as of the  Termination  Date pursuant to section 3(d) hereof;
and

                           (iii)    the severance payment and other benefits
provided in the Change- in-Control Agreement.

         3.       COMPENSATION.  For the services to be performed by Executive
for NBTB and its affiliates under this Agreement, Executive shall be compensated
in the following manner:

                  (a)      SALARY.  During the Term of Employment:

                           (i)      NBTB shall pay Executive a salary which, on
an annual basis,  shall not be less than  $300,000  during the first year of the
Term of Employment,  $350,000  during the second year of the Term of Employment,
$400,000  during the third year of the Term of Employment,  and $400,000  during
the additional  year, if any, by which the Term of Employment  shall be extended
pursuant to section 2(a)(i),  assuming  Executive performs  competently.  Salary
shall be payable in accordance  with the normal  payroll  practices of NBTB with
respect to executive personnel as presently in effect or as they may be modified
by NBTB from time to time.

                           (ii)     Executive shall be eligible to be considered
for  performance  bonuses of up to 80 percent of salary,  in accordance with the
compensation  policies of NBTB with respect to executive  personnel as presently
in effect or as they may be modified by NBTB from time to time.

                  (b) EMPLOYEE BENEFIT PLANS OR ARRANGEMENTS. During the Term of
Employment,  Executive shall be entitled to participate in all employee  benefit
plans of NBTB,  as  presently  in effect or as they may be modified by NBTB from
time to time,  under such terms as may be applicable to officers of  Executive's
rank employed by NBTB or its affiliates,  including,  without limitation,  plans
providing retirement benefits, stock options, medical insurance, life insurance,
disability insurance, and accidental death or dismemberment insurance,  provided
that there be no  duplication  of such benefits as are provided  under any other
provision of this Agreement.

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                  (c) STOCK OPTIONS.  Each January or February  annually  during
the Term of Employment,  NBTB will cause Executive to be granted a non-statutory
("non-qualified")  stock  option  (each an  "Option")  to purchase the number of
shares of the common stock of NBTB,  no par value,  $1.00 stated  value,  or the
common stock of NBTB as  reclassified  to have a par value of $.01 per share, as
the case may be (the "NBTB Common Stock"), pursuant to the NBT Bancorp Inc. 1993
Stock Option Plan, as amended,  or any  appropriate  successor  plan (the "Stock
Option  Plan"),  computed by dividing  250 percent of the  annualized  salary of
Executive on the date of grant of the Option by the "Fair Market  Value" of NBTB
Common Stock (as defined in the Stock Option Plan).  The option  exercise  price
per share of the shares  subject to each Option shall be such Fair Market Value,
and the terms, conditions of exercise, and vesting schedule of such Option shall
be as set forth in section 8 of the Stock Option Plan.

                  (d)  VACATION AND SICK LEAVE.  During the Term of  Employment,
Executive  shall be entitled to paid annual  vacation  periods and sick leave in
accordance with the policies of NBTB as in effect as of the Commencement Date or
as may be modified by NBTB from time to time as may be applicable to officers of
Executive's  rank employed by NBTB or its affiliates,  but in no event less than
five  weeks of paid  vacation  per year  during  the  first  year of the Term of
Employment,  and six weeks of paid  vacation  per year during the second year of
the Term of  Employment  and the  additional  year, if any, by which the Term of
Employment shall be extended  pursuant to section 2(a)(i),  during each of which
third year and additional  year  Executive  shall  additionally  be excused from
physical  presence  within the Market Area (as  defined in section  4(e) of this
Agreement)  during  the  months of  January,  February,  and March  except on an
as-required  basis as  mutually  agreed  by the board of  directors  of NBTB and
Executive.

                  (e) AUTOMOBILE. During the Term of Employment, Executive shall
be entitled to the use of an  automobile  owned by NBTB or an affiliate of NBTB,
the make and model of which  automobile  shall be  appropriate  to an officer of
Executive's  rank, and which will be replaced with a new  automobile  during the
second year of the Term of Employment.  Executive  shall be responsible  for all
expenses of ownership and use of such  automobile,  subject to  reimbursement of
expenses for business use in accordance with section 3(h).

                  (f)  COUNTRY  CLUB  DUES.   During  the  Term  of  Employment,
Executive shall be reimbursed for dues and  assessments  incurred in relation to
Executive's membership at Seven Oaks Country Club, Hamilton, New York.

                  (g)  WITHHOLDING.  All compensation to be paid to Executive
hereunder shall be subject to required withholding and other taxes.

                  (h) EXPENSES.  During the Term of Employment,  Executive shall
be  reimbursed  for  reasonable  travel and other  expenses  incurred or paid by
Executive  in  connection  with  the  performance  of his  services  under  this
Agreement,  upon  presentation  of expense  statements or vouchers or such other
supporting information as may from time to time be requested, in accordance with

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such policies of NBTB as are in effect as of the Commencement Date and as may be
modified  by NBTB from time to time,  under such terms as may be  applicable  to
officers of Executive's rank employed by NBTB or its affiliates.

         4.       CONFIDENTIAL BUSINESS INFORMATION; NON-COMPETITION.

                  (a)  Executive  acknowledges  that certain  business  methods,
creative techniques,  and technical data of NBTB and its affiliates and the like
are deemed by NBTB to be and are in fact  confidential  business  information of
NBTB or its  affiliates or are  entrusted to third  parties.  Such  confidential
information  includes  but  is  not  limited  to  procedures,   methods,   sales
relationships  developed  while  in the  service  of  NBTB  or  its  affiliates,
knowledge  of  customers  and their  requirements,  marketing  plans,  marketing
information,  studies, forecasts, and surveys, competitive analyses, mailing and
marketing  lists, new business  proposals,  lists of vendors,  consultants,  and
other  persons  who render  service or provide  material  to NBTB or NBT Bank or
their affiliates,  and compositions,  ideas,  plans, and methods belonging to or
related to the affairs of NBTB or NBT Bank or their affiliates.  In this regard,
NBTB asserts  proprietary rights in all of its business  information and that of
its affiliates  except for such  information as is clearly in the public domain.
Notwithstanding  the  foregoing,  information  that would be generally  known or
available to persons  skilled in  Executive's  fields shall be  considered to be
"clearly in the public  domain"  for the  purposes  of the  preceding  sentence.
Executive agrees that he will not disclose or divulge to any third party, except
as may be required by his duties hereunder,  by law,  regulation,  or order of a
court or government  authority,  or as directed by NBTB, nor shall he use to the
detriment of NBTB or its  affiliates  or use in any business or on behalf of any
business  competitive with or  substantially  similar to any business of NBTB or
NBT Bank or their affiliates,  any confidential  business  information  obtained
during  the  course  of his  employment  by NBTB.  The  foregoing  shall  not be
construed as  restricting  Executive  from  disclosing  such  information to the
employees of NBTB or NBT Bank or their affiliates.

                  (b) Executive  hereby agrees that from the  Commencement  Date
until the first  anniversary  of the  Termination  Date,  Executive will not (i)
interfere with the relationship of NBTB or NBT Bank or their affiliates with any
of their employees,  suppliers,  agents, or representatives (including,  without
limitation,  causing or helping another business to hire any employee of NBTB or
NBT Bank or their affiliates),  or (ii) directly or indirectly divert or attempt
to divert from NBTB,  NBT Bank or their  affiliates any business in which any of
them has been actively engaged during the Term of Employment, nor interfere with
the  relationship  of  NBTB,  NBT  Bank or  their  affiliates  with any of their
customers or  prospective  customers.  This  paragraph 4(b) shall not, in and of
itself,  prohibit  Executive from engaging in the banking,  trust,  or financial
services business in any capacity, including that of an owner or employee.

                  (c) Executive  acknowledges and agrees that irreparable injury
will  result to NBTB in the event of a breach of any of the  provisions  of this
section 4 (the  "Designated  Provisions")  and that  NBTB will have no  adequate
remedy at law with  respect  thereto.  Accordingly,  in the event of a  material
breach of any  Designated  Provision,  and in  addition  to any  other  legal or
equitable  remedy  NBTB may  have,  NBTB  shall be  entitled  to the  entry of a

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preliminary and permanent injunction  (including,  without limitation,  specific
performance) by a court of competent  jurisdiction in Chenango County, New York,
or  elsewhere,  to restrain the violation or breach  thereof by  Executive,  and
Executive submits to the jurisdiction of such court in any such action.

                  (d) It is the  desire  and  intent  of the  parties  that  the
provisions of this section 4 shall be enforced to the fullest extent permissible
under  the  laws and  public  policies  applied  in each  jurisdiction  in which
enforcement is sought.  Accordingly, if any particular provision of this section
4 shall be adjudicated to be invalid or  unenforceable,  such provision shall be
deemed amended to delete therefrom the portion thus adjudicated to be invalid or
unenforceable, such deletion to apply only with respect to the operation of such
provision in the particular  jurisdiction in which such adjudication is made. In
addition, should any court determine that the provisions of this section 4 shall
be unenforceable with respect to scope, duration, or geographic area, such court
shall be empowered to substitute, to the extent enforceable,  provisions similar
hereto or other  provisions  so as to provide  to NBTB,  to the  fullest  extent
permitted by applicable law, the benefits intended by this section 4.

         5. LIFE INSURANCE.  In light of the unusual abilities and experience of
Executive, NBTB in its discretion may apply for and procure as owner and for its
own benefit insurance on the life of Executive,  in such amount and in such form
as NBTB may choose.  NBTB shall make all payments for such  insurance  and shall
receive all benefits from it. Executive shall have no interest whatsoever in any
such policy or policies  but,  at the request of NBTB,  shall  submit to medical
examinations  and supply such  information  and execute  such  documents  as may
reasonably be required by the  insurance  company or companies to which NBTB has
applied for insurance.

         6.       REPRESENTATIONS AND WARRANTIES.

                  (a)  Executive  represents  and  warrants  to  NBTB  that  his
execution,  delivery,  and  performance  of this Agreement will not result in or
constitute  a breach of or  conflict  with any  term,  covenant,  condition,  or
provision  of any  commitment,  contract,  or  other  agreement  or  instrument,
including,   without  limitation,  any  other  employment  agreement,  to  which
Executive is or has been a party.

                  (b) Executive shall indemnify,  defend, and hold harmless NBTB
for, from, and against any and all losses, claims, suits, damages,  expenses, or
liabilities,  including court costs and counsel fees, which NBTB has incurred or
to which  NBTB may  become  subject,  insofar  as such  losses,  claims,  suits,
damages,  expenses,  liabilities,  costs, or fees arise out of or are based upon
any  failure of any  representation  or warranty of  Executive  in section  6(a)
hereof to be true and correct when made.

         7. NOTICES.  All notices,  consents,  waivers, or other  communications
which are required or permitted hereunder shall be in writing and deemed to have
been duly given if delivered personally or by messenger, transmitted by telex or
telegram,  by express courier,  or sent by registered or certified mail,  return

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receipt requested, postage prepaid. All communications shall be addressed to the
appropriate address of each party as follows:

If to NBTB:

         NBT Bancorp Inc.
         52 South Broad Street
         Norwich, New York  13815

         Attention:        Board of Directors

With a required copy to:

         Brian D. Alprin, Esq.
         Duane, Morris & Heckscher LLP
         1667 K Street, N.W., Suite 700
         Washington, D.C. 20006

If to Executive:

         Mr. Daryl R. Forsythe
         21 Ridgeland Road
         Norwich, New York 13815

All such  notices  shall be  deemed to have  been  given on the date  delivered,
transmitted, or mailed in the manner provided above.

         8.       ASSIGNMENT.  Neither party may assign this Agreement or any
rights or obligations hereunder without the consent of the other party.

         9. GOVERNING LAW. This Agreement shall be governed by,  construed,  and
enforced in accordance  with the laws of the State of New York,  without  giving
effect  to the  principles  of  conflict  of law  thereof.  The  parties  hereby
designate Chenango County, New York to be the proper  jurisdiction and venue for
any suit or action arising out of this Agreement.  Each of the parties  consents
to personal  jurisdiction in such venue for such a proceeding and agrees that it
may be served with process in any action with  respect to this  Agreement or the
transactions  contemplated  thereby by  certified  or  registered  mail,  return
receipt  requested,  or to its  registered  agent for  service of process in the
State of New York. Each of the parties  irrevocably and  unconditionally  waives
and agrees,  to the fullest extent  permitted by law, not to plead any objection
that it may now or hereafter  have to the laying of venue or the  convenience of
the  forum  of any  action  or  claim  with  respect  to this  Agreement  or the
transactions contemplated thereby brought in the courts aforesaid.

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         10.  ENTIRE   AGREEMENT.   This   Agreement   constitutes   the  entire
understanding  among NBTB and Executive  relating to the subject  matter hereof.
Any previous agreements or understandings  between the parties hereto or between
Executive and NBTB or any of its affiliates regarding the subject matter hereof,
including   without   limitation   the  terms  and   conditions  of  employment,
compensation,  benefits,  retirement,  competition following employment, and the
like, are merged into and superseded by this  Agreement.  Neither this Agreement
nor any provisions hereof can be modified,  changed,  discharged,  or terminated
except by an instrument in writing  signed by the party against whom any waiver,
change, discharge, or termination is sought.

         11.      ILLEGALITY; SEVERABILITY.

                  (a)    Anything   in   this    Agreement   to   the   contrary
notwithstanding,  this  Agreement  is not intended and shall not be construed to
require  any  payment to  Executive  which  would  violate  any federal or state
statute or  regulation,  including  without  limitation  the  "golden  parachute
payment  regulations" of the Federal Deposit Insurance  Corporation  codified to
Part 359 of title 12, Code of Federal Regulations.

                  (b)      If any provision or provisions of this Agreement
shall be held to be invalid, illegal, or unenforceable for any reason
whatsoever:

                           (i)      the validity, legality, and enforceability
of the remaining  provisions of this Agreement  (including,  without limitation,
each portion of any section of this Agreement containing any such provision held
to be invalid,  illegal,  or unenforceable)  shall not in any way be affected or
impaired thereby; and

                           (ii)     to the fullest extent possible, the
provisions of this Agreement (including, without limitation, each portion of any
section of this  Agreement  containing any such  provisions  held to be invalid,
illegal, or unenforceable) shall be construed so as to give effect to the intent
manifested by the provision held invalid, illegal, or unenforceable.

         12.  ARBITRATION.  Subject to the right of each party to seek  specific
performance  (which  right  shall not be subject to  arbitration),  if a dispute
arises out of or related to this Agreement,  or the breach thereof, such dispute
shall be referred to arbitration in accordance  with the Commercial  Arbitration
Rules of the American Arbitration  Association ("AAA"). A dispute subject to the
provisions  of this section will exist if either party  notifies the other party
in  writing  that a dispute  subject to  arbitration  exists  and  states,  with
reasonable  specificity,  the issue  subject to  arbitration  (the  "Arbitration
Notice").  The parties agree that, after the issuance of the Arbitration Notice,
the  parties  will try in good faith to resolve  the  dispute  by  mediation  in
accordance  with the Commercial  Rules of Arbitration of AAA between the date of
the  issuance  of the  Arbitration  Notice  and the date the  dispute is set for
arbitration. If the dispute is not settled by the date set for arbitration, then
any  controversy  or claim  arising out of this  Agreement or the breach  hereof
shall be resolved by binding arbitration and judgment upon any award rendered by
arbitrator(s) may be entered in a court having jurisdiction.  Any person serving

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as a  mediator  or  arbitrator  must  have at least  ten  years'  experience  in
resolving  commercial  disputes through  arbitration.  In the event any claim or
dispute involves an amount in excess of $100,000,  either party may request that
the  matter  be heard by a panel of three  arbitrators;  otherwise  all  matters
subject to arbitration shall be heard and resolved by a single  arbitrator.  The
arbitrator  shall have the same power to compel the  attendance of witnesses and
to order the production of documents or other materials and to enforce discovery
as could be exercised by a United  States  District  Court judge  sitting in the
Northern District of New York. In the event of any arbitration, each party shall
have a reasonable right to conduct discovery to the same extent permitted by the
Federal  Rules  of  Civil  Procedure,  provided  that  such  discovery  shall be
concluded  within ninety days after the date the matter is set for  arbitration.
In the event of any  arbitration,  the arbitrator or arbitrators  shall have the
power to award reasonable attorney's fees to the prevailing party. Any provision
in this  Agreement  to the  contrary  notwithstanding,  this  section  shall  be
governed by the Federal  Arbitration  Act and the parties have entered into this
Agreement pursuant to such Act.

         13.  COSTS OF  LITIGATION.  In the event  litigation  is  commenced  to
enforce  any of the  provisions  hereof,  or to  obtain  declaratory  relief  in
connection  with any of the provisions  hereof,  the  prevailing  party shall be
entitled to recover  reasonable  attorney's fees. In the event this Agreement is
asserted in any litigation as a defense to any liability, claim, demand, action,
cause of action,  or right asserted in such litigation,  the party prevailing on
the issue of that defense shall be entitled to recovery of reasonable attorney's
fees.

         14.      AFFILIATION.  A company will be deemed to be "affiliated" with
NBTB or NBT Bank according to the definition of "Affiliate" set forth in Rule
12b-2 of the General Rules and Regulations under the Securities Exchange Act of
1934, as amended.

         15.      HEADINGS.  The section and subsection headings herein have
been inserted for convenience of reference only and shall in no way modify or
restrict any of the terms or provisions hereof.

         IN  WITNESS  WHEREOF,  the  parties  hereto  executed  or  caused  this
Agreement to be executed as of the day and year first above written.

                                NBT BANCORP INC.

                                 By:     /s/  Everett A. Gilmour
                                              Chairman of the Board

                                      -10-
<PAGE>

                                               DARYL R. FORSYTHE

                                          /s/  Daryl R. Forsythe

                                      -11-
<PAGE>EXHIBIT 10.7
           Supplemental Retirement Agreement between NBT Bancorp Inc.,
              NBT Bank, National Association and Daryl R. Forsythe
                 made as of January 1, 1995, and as revised on
                    April 28, 1998, and on January 1, 2000.

<PAGE>

                        SUPPLEMENTAL RETIREMENT AGREEMENT
              (AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2000)

         This  sets  forth  the  terms  of  an  agreement  for  the  payment  of
supplemental  retirement income ("Agreement") made as of January 1, 1995 (and as
revised on April 28, 1998, and on January 1, 2000) between (i) NBT BANCORP INC.,
a Delaware  corporation  and a registered  bank holding  company,  and NBT BANK,
NATIONAL ASSOCIATION, a national banking association chartered under the laws of
the  United  States,   both  having  offices   located  at  Norwich,   New  York
(collectively,  the "Bank"), and (ii) DARYL R. FORSYTHE,  an individual residing
at 21 Ridgeland Road,  Norwich,  New York 13815, and who is a member of a select
group of  management  or highly  compensated  employees  within  the  meaning of
section  201(2) of the  Employee  Retirement  Income  Security  Act of 1974,  as
amended ("Forsythe").

         1.       PURPOSE OF THE AGREEMENT.  The purpose of this Agreement is to
provide Forsythe a supplemental  retirement benefit in accordance with the terms
of this Agreement.

         2.       DEFINITIONS.  For purposes of this Agreement, the following
words shall have the meaning indicated:

                  (a) ACTUARIAL  EQUIVALENT.  "Actuarial  Equivalent" shall have
         the same meaning the term "Actuarial Equivalent" has under Section 2.03
         of the Qualified Plan using the following actuarial assumptions:

                           MORTALITY:      "Applicable  Mortality  Rate" as such
                                           term is  defined  in  Section  2.03c
                                           of the Qualified Plan.

                           INTEREST RATE:  "Applicable  Interest  Rate" as such
                                           term is  defined  in  Section  2.09b
                                           of the Qualified Plan.

                  (b) BENEFICIARY.  "Beneficiary"  shall mean such living person
         or  living   persons   designated  by  Forsythe  in   accordance   with
         subparagraph  5(a) to receive  benefits under this Agreement  after his
         death, or his personal or legal representative, all as herein described
         and  provided.  If no  Beneficiary  is  designated by Forsythe or if no
         Beneficiary  survives  Forsythe,  the  Beneficiary  shall be Forsythe's
         estate.

                  (c) CAUSE.  "Cause" shall mean Forsythe's:

                           (i) willful or gross  misconduct  with respect to the
                  business  and affairs of the Bank,  or with  respect to any of
                  its  affiliates  for  which  Forsythe  is  assigned   material
                  responsibilities or duties;

                           (ii) conviction of a felony (after the earlier of the
                  expiration of any applicable appeal period without  perfection
                  of an appeal by  Forsythe  or the  denial of any  appeal as to
                  which no further  appeal or review is  available  to Forsythe)
                  whether or not  committed in the course of his  employment  by
                  the Bank;

                           (iii) willful neglect,  failure,  or refusal to carry
                  out his duties  under the  Employment  Agreement  between  NBT
                  Bancorp  Inc.  and  Forsythe  dated as of January 1, 2000 (the
                  "Employment Agreement") in a reasonable manner (other than any
                  such  failure  resulting  from  disability  or  death  or from
                  termination  by Forsythe  for Good  Reason,  as defined in the
                  Employment  Agreement)  after a written demand for substantial
                  performance   is  delivered  to  Forsythe  that   specifically
                  identifies the manner in which the Bank believes that Forsythe
                  has not  substantially  performed  his  duties  and he has not
                  resumed substantial  performance of his duties on a continuous
                  basis within thirty days of receiving such demand; or

                           (iv)  breach of any  representation  or  warranty  in
                  section 6(a) of the  Employment  Agreement or of any agreement
                  contained  in  section  1, 4,  5,  or  6(b) of the  Employment
                  Agreement, which breach is material and adverse to the Bank or
                  any of its affiliates for which Forsythe is assigned  material
                  responsibilities or duties.

                  (d) CHANGE OF CONTROL. "Change of Control" shall mean a Change
         in Control  as such term is defined in the Change of Control  Agreement
         between  Forsythe and the Bank dated January 1, 2000 (a revision of the
         April 28, 1998 and February 21, 1995 agreements).

                  (e)      CODE.  "Code" shall mean the Internal Revenue Code of
         1986, as amended.

                  (f)      DETERMINATION  DATE.  "Determination  Date"  shall
         mean  the  earlier  of (i) the  date of  termination  of
         Forsythe's employment with the Bank or (ii) the first day of the month
         following Forsythe's 65th birthday.

                  (g) FINAL AVERAGE  COMPENSATION.  "Final Average Compensation"
         shall have the same meaning the term "Final Average  Compensation"  has
         under Section 2.27 of the Qualified  Plan except  that in  determining
         the  amount of  Compensation  (as defined in Section 2.14 of the
         Qualified Plan) to be used in calculating  Final Average  Compensation
         under Section 2.27 of the  Qualified  Plan,  Compensation  shall not be
         subject to the  compensation  limitation  of section  401(a)(17) of the
         Code.

                  (h)      FULL-TIME  EMPLOYEE.  "Full-Time  Employee"  shall
         mean an employee who works not less than 1,000 hours in a
         calendar year.

                  (i)      OTHER RETIREMENT BENEFITS.  "Other Retirement
         Benefits" shall mean the sum of:

                           (i)      The annual benefit payable to Forsythe from
                  the Qualified Plan, plus

                           (ii) The annual benefit that could be provided by (A)
                  Bank  contributions  (other than elective  deferrals)  made on
                  Forsythe's  behalf  under  the NBT  Bancorp  Inc.  401(k)  and

                                      -2-
<PAGE>

                  Employee  Stock  Ownership  Plan,  and (B) actual  earnings on
                  contributions in (A), if such  contributions and earnings were
                  converted  to a benefit  payable at age 65 in the same form as
                  the  benefit  paid  under  this  Agreement,   using  the  same
                  actuarial assumptions as are provided under subparagraph 2(a).

                  The amount of Other Retirement Benefits shall be determined by
         an actuary  selected by the Bank,  with such  determination  to be made
         without  reduction for payment of benefits  prior to any stated "normal
         retirement  date" and without  regard to whether  Forsythe is receiving
         payment  of such  benefits  on the  Determination  Date.  To the extent
         Forsythe receives a payment of Other Retirement  Benefits  described in
         subparagraph  2(i)(ii)  prior to the date the  Supplemental  Retirement
         Benefit is  determined  pursuant to this  Agreement,  the total of such
         Other Retirement Benefits shall be determined by including and assuming
         that such  amounts  earned  interest  at a  variable  rate equal to the
         one-year  United States  Treasury bill rate as reported in the New York
         edition of The Wall Street Journal on the  Determination  Date from the
         date received to the date Other Retirement  Benefits are calculated for
         purposes of this Agreement.

                  (j)      PRESENT  VALUE.  "Present  Value" shall mean the
         present  value of a benefit  determined on the basis of the
         following actuarial assumptions:

                           MORTALITY:      "Applicable  Mortality  Rate" as such
                                           term is defined in Section 2.03c of
                                           the  Qualified  Plan.

                           INTEREST RATE:  "Applicable  Interest  Rate" as such
                                           term is  defined  in  Section  2.09b
                                           of the Qualified Plan.

                  (K)      QUALIFIED  PLAN.  "Qualified  Plan" shall mean the
         NBT BANCORP Inc.  Defined  Benefit  Pension  Plan.

                  (L)      SOCIAL  SECURITY  BENEFIT. "Social Security  Benefit"
         shall mean  Forsythe's  actual social  security  benefit at his Social
         Security Retirement Age.

                  (M)      SOCIAL SECURITY  RETIREMENT AGE. "Social Security
         Retirement Age" shall have the same meaning the term  "Social  Security
         Retirement  Age" has under Section 2.58 of the Qualified
         Plan.

                  (N)      YEAR OF SERVICE. "Year of Service" shall mean a
         calendar year in which Forsythe completes not less than 1,000 hours of
         service.

                                      -3-
<PAGE>

         3.       AMOUNT OF SUPPLEMENTAL RETIREMENT BENEFIT.

                  (a)      SUPPLEMENTAL RETIREMENT BENEFIT.

                           (i) AMOUNT  PAYABLE ON AND AFTER AGE 65. If  Forsythe
                  shall  remain  employed  by the Bank until  reaching  his 65th
                  birthday, serving as a Full-Time Employee until such date, and
                  subject to the other terms and  conditions of this  Agreement,
                  the Bank shall pay Forsythe an annual "Supplemental Retirement
                  Benefit" determined as follows:

                                    (A) ON AND  AFTER AGE 65 BUT  BEFORE  SOCIAL
                           SECURITY  RETIREMENT AGE.  Forsythe shall be entitled
                           to a Supplemental Retirement Benefit on and after his
                           65th   birthday   but  before  his  Social   Security
                           Retirement  Age in an amount  equal to the  excess of
                           (1)  75   percent   of   Forsythe's   Final   Average
                           Compensation,  over (2) Forsythe's  Other  Retirement
                           Benefits, determined as of the Determination Date and
                           calculated in accordance with subparagraph 2(i).

                                    (B) ON AND AFTER SOCIAL SECURITY  RETIREMENT
                           AGE.  Forsythe  shall be entitled  to a  Supplemental
                           Retirement  Benefit on and after his Social  Security
                           Retirement  Age in an amount  equal to the  excess of
                           (1)  75   percent   of   Forsythe's   Final   Average
                           Compensation,  over  (2) the  sum of (aa)  Forsythe's
                           Other  Retirement  Benefits,  determined  as  of  the
                           Determination  Date and calculated in accordance with
                           paragraph   2(i),  plus  (bb)  Forsythe's   Social
                           Security Benefit.

                           (ii)  AMOUNT  PAYABLE  ON AND AFTER AGE 56 BUT BEFORE
                  AGE 60. If Forsythe  shall  remain  employed by the Bank until
                  reaching his 56th  birthday,  serving as a Full-Time  Employee
                  until  such  date and he  continues  to  serve as a  Full-Time
                  Employee until the date of his retirement, and he retires then
                  or  thereafter  but before  reaching  his 60th  birthday,  and
                  subject to the other terms and  conditions of this  Agreement,
                  the Bank shall pay Forsythe on his 60th birthday,  pursuant to
                  subparagraph  4(b),  or to his  spouse  or other  Beneficiary,
                  pursuant  and  subject  to  subparagraph  6(c) if he has  died
                  before  his  60th  birthday,   a  reduced  early  Supplemental
                  Retirement  Benefit calculated in accordance with subparagraph
                  3(b) and the following schedule:

                                    (A) If the  date  of  Forsythe's  retirement
                           shall be on or after his 56th birthday but before his
                           57th birthday, the Bank shall pay Forsythe 20% of the
                           reduced  early  Supplemental  Retirement  Benefit  so
                           calculated;

                                    (B) If the  date  of  Forsythe's  retirement
                           shall be on or after his 57th birthday but before his
                           58th birthday, the Bank shall pay Forsythe 40% of the
                           reduced  early  Supplemental  Retirement  Benefit  so
                           calculated;

                                      -4-
<PAGE>

                                    (C) If the  date  of  Forsythe's  retirement
                           shall be on or after his 58th birthday but before his
                           59th birthday, the Bank shall pay Forsythe 60% of the
                           reduced  early  Supplemental  Retirement  Benefit  so
                           calculated; and

                                    (D) If the  date  of  Forsythe's  retirement
                           shall be on or after his 59th birthday but before his
                           60th birthday, the Bank shall pay Forsythe 80% of the
                           reduced  early  Supplemental  Retirement  Benefit  so
                           calculated.

                           (III)    AMOUNT  PAYABLE ON AND AFTER AGE 60 BUT
                  BEFORE AGE 65. If Forsythe  shall remain employed by the Bank
                  until reaching his 60th birthday,  serving as a Full-Time
                  Employee until such date and he continues to serve as
                  a Full-Time Employee until the date of his  retirement,  and
                  he retires then or thereafter but before  reaching his 65th
                  birthday, and subject to the other terms and conditions of
                  this Agreement,  the Bank shall pay  Forsythe a reduced  early
                  Supplemental  Retirement  Benefit  calculated  in  accordance
                  with subparagraph  3(b).

(B)      EARLY SUPPLEMENTAL RETIREMENT BENEFIT. If the Bank commences payment of
         a reduced early Supplemental Retirement Benefit before Forsythe reaches
         age 65, the amount paid shall equal the product of (i) the Supplemental
         Retirement Benefit, as calculated under subparagraph 3(a)(i)(A),  times
         (ii) a fraction, the numerator of which shall be the number of complete
         months of  Forsythe's  employment  with the Bank after January 1, 1995,
         and the  denominator of which is 164 (the number of complete  months of
         employment Forsythe would have had after January 1, 1995 if he remained
         employed  by the Bank  until the first day of the month  following  his
         65th birthday).

         4.       TIME OF PAYMENT.

                  (a) Except as provided in subparagraph 4(b) (early retirement)
         and paragraph 6 (payment on death), the Bank shall pay the Supplemental
         Retirement  Benefit  commencing on the first day of the month following
         Forsythe's attainment of age 65.

                  (b) Notwithstanding subparagraph 4(a), the Bank shall commence
         payment of a reduced early Supplemental Retirement Benefit on the first
         day of the month following Forsythe's  Determination Date in connection
         with early  retirement  after  reaching age 60 and prior to the date of
         his 65th birthday; provided that, if Forsythe shall retire prior to his
         60th birthday as permitted in this  Agreement,  the Bank shall commence
         payment of the reduced  early  Supplemental  Retirement  Benefit on the
         first day of the month following Forsythe's 60th birthday.

         5.       FORM OF PAYMENT.

                  (a) The Supplemental Retirement Benefit described in paragraph
         3 of this Agreement  shall be paid as a straight life annuity,  payable
         in monthly installments,  for Forsythe's life; provided,  however, that

                                      -5-
<PAGE>

         if Forsythe has no surviving  spouse and dies before having received 60
         monthly  payments,  such  monthly  payments  shall be  continued to his
         Beneficiary  until the total number of monthly payments to Forsythe and
         his  Beneficiary  equal 60,  whereupon all payments shall cease and the
         Bank's  obligation  under this  Agreement  shall be deemed to have been
         fully  discharged.  If Forsythe  and his  Beneficiary  shall die before
         having received a total of 60 monthly payments,  an amount equal to the
         Actuarial  Equivalent of the balance of such monthly  payments shall be
         paid in a single sum to the estate of the  survivor of Forsythe and his
         Beneficiary.  If  Supplemental  Retirement  Benefits are payable in the
         form described in this subparagraph  5(a),  Forsythe shall designate in
         writing,  as  his  Beneficiary,   any  person  or  persons,  primarily,
         contingently  or  successively,  to whom the Bank  shall  pay  benefits
         following Forsythe's death if Forsythe's death occurs before 60 monthly
         payments have been made.

                  (b)   Notwithstanding   the  form  of  payment   described  in
         subparagraph  5(a),  if Forsythe is married on the date  payment of the
         Supplemental Retirement Benefit commences, the benefit shall be paid as
         a 50%  joint  and  survivor  annuity  with  Forsythe's  spouse  as  the
         Beneficiary.  The 50% joint and survivor annuity shall be the Actuarial
         Equivalent  of the  benefit  described  in  subparagraph  5(a).  If the
         Supplemental   Retirement   Benefit   is  payable   pursuant   to  this
         subparagraph  5(b),  but  Forsythe's  spouse  fails to survive  him, no
         payments will be made pursuant to this Agreement  following  Forsythe's
         death.

                  (c) Notwithstanding the foregoing provisions of this paragraph
         5, the Bank, in its sole discretion,  may accelerate the payment of all
         or any portion of the  Supplemental  Retirement  Benefit or the reduced
         early  Supplemental   Retirement  Benefit  at  any  time.  Any  payment
         accelerated  in  accordance  with this  subparagraph  5(c) shall be the
         Actuarial Equivalent of the payment being accelerated.

                  (d) If  payment  of a reduced  early  Supplemental  Retirement
         Benefit  commences  pursuant to  subparagraph  4(b),  and  payments are
         accelerated  pursuant to subparagraph 5(c), the reduction  described in
         subparagraph  3(b) shall be applied before any Actuarial  Equivalent is
         determined under this paragraph 5.

         6.       PAYMENTS UPON FORSYTHE'S DEATH.

                  (a)  Except as  provided  in  subparagraphs  6(b) and (c),  if
         Forsythe  shall die before his 65th  birthday,  no payment shall be due
         his estate under this Agreement.

                  (b) If  Forsythe's  death  shall  occur on or  after  his 60th
         birthday,  after he has retired but before payment of any  Supplemental
         Retirement Benefit has commenced,  Forsythe's surviving spouse shall be
         paid  as a  straight  life  annuity  50  percent  of  the  Supplemental
         Retirement  Benefit for her life  commencing  within 30 days  following
         Forsythe's death, calculated in accordance with subparagraph 3(b). Such

                                      -6-
<PAGE>

         payments shall be made in monthly installments, subject to the right of
         the  Bank  to  accelerate  payment  at  any  time  in  accordance  with
         subparagraph 5(c).

                  (c)  If  Forsythe   elects   early   retirement   pursuant  to
         subparagraph  3(a)(ii)  or  (iii)  and he dies  before  payment  of any
         Supplemental  Retirement  Benefit has commenced,  Forsythe's  surviving
         spouse  shall be paid,  in monthly  installments,  as a  straight  life
         annuity,  50 percent of such  Supplemental  Retirement  Benefit for her
         life commencing within 30 days following  Forsythe's death,  subject to
         the  right of the Bank to  accelerate  such  payments  as  provided  in
         subparagraph 5(c).  However, if Forsythe's spouse fails to survive him,
         the Bank shall pay to Forsythe's  estate a lump sum benefit equal to 50
         percent of the  Present  Value of  Forsythe's  Supplemental  Retirement
         Benefit.

                  (d) Except as  otherwise  provided in  subparagraph  6(c),  no
         payments  shall be made under this  Agreement  if Forsythe  dies before
         payment of any  Supplemental  Retirement  Benefit begins and his spouse
         fails to survive him.

                  (e)  If  Forsythe's  death  shall  occur  after  payment  of a
         Supplemental  Retirement  Benefit  has  commenced,  Forsythe  surviving
         spouse  or  other  Beneficiaries  shall  receive  payments  under  this
         Agreement to the extent provided in paragraph 5.

         7.       FORFEITURE FOR CAUSE.  Notwithstanding any other provision of
this Agreement,  if Forsythe's employment with the Bank is terminated for Cause,
Forsythe and his spouse or other Beneficiaries shall forfeit all rights to any
payment under this Agreement.

         8.  POWERS.  The Bank shall  have such  powers as may be  necessary  to
discharge its duties under this Agreement,  including the power to interpret and
construe this  Agreement and to determine  all questions  regarding  employment,
disability status, service,  earnings,  income and such factual matters as birth
and marital status. The Bank's determinations  hereunder shall be conclusive and
binding  upon the  parties  hereto and all other  persons  having or claiming an
interest under this Agreement.  The Bank shall have no power to add to, subtract
from, or modify any of the terms of this  Agreement.  The Bank's  determinations
hereunder  shall be entitled to  deference  upon review by any court,  agency or
other entity  empowered to review its decisions,  and shall not be overturned or
set aside by any court,  agency or other entity  unless  found to be  arbitrary,
capricious or contrary to law.

         9.       CLAIMS PROCEDURE.

                  (a) Any claim for  benefits by  Forsythe,  his spouse or other
         Beneficiaries  shall be made in writing to the Bank. In this paragraph,
         Forsythe and his Beneficiaries are referred to as "claimants."

                  (b) If the Bank  denies a claim in whole or in part,  it shall
         send the claimant a written  notice of the denial  within 90 days after
         the date it receives a claim,  unless it needs  additional time to make
         its decision.  In that case,  the Bank may authorize an extension of an

                                      -7-
<PAGE>

         additional 90 days if it notifies the claimant of the extension  within
         the initial 90-day period. The extension notice shall state the reasons
         for the extension and the expected decision date.

                  (c)      A denial notice shall contain:

                           (i)      The specific reason or reasons for the
                  denial of the claim;

                           (ii)     Specific reference to pertinent Agreement
                  provisions upon which the denial is based;

                           (iii) A  description  of any  additional  material or
                  information   necessary   to  perfect   the  claim,   with  an
                  explanation  of why the material or  information is necessary;
                  and
                           (iv)     An explanation of the review procedures
                  provided below.

                  (d)  Within  60 days  after  the  claimant  receives  a denial
         notice, he or she may file a request for review with the Bank. Any such
         request must be made in writing.

                  (e) A claimant who timely requests review shall have the right
         to review  pertinent  documents,  to submit  additional  information or
         written comments, and to be represented.

                  (f) The Bank shall send the claimant a written decision on any
         request for review  within 60 days after the date it receives a request
         for  review,  unless an  extension  of time is  needed,  due to special
         circumstances.  In that case, the Bank may authorize an extension of an
         additional 60 days,  provided it notifies the claimant of the extension
         within the initial 60-day period.

                  (g)      The review decision shall contain:

                           (i)      The specific reason or reasons for the
                  decision; and

                           (ii)     Specific reference to the pertinent
                  Agreement provisions upon which the decision is based.

                  (h) If the Bank does not send the  claimant a review  decision
         within the applicable time period,  the claim shall be deemed denied on
         review.

                  (i) The denial notice or, in the case of a timely review,  the
         review  decision  (including a deemed denial under  subparagraph  9(h))
         shall be the Bank's final decision.

                                      -8-
<PAGE>

         10. ASSIGNMENT.  Neither Forsythe nor his spouse or other Beneficiaries
may  transfer  his,  her or their right to payments to which he, she or they are
entitled  under this  Agreement.  Except insofar as may otherwise be required by
law, any Supplemental  Retirement Benefit payable under this Agreement shall not
be  subject  in any  manner  to  alienation  by  anticipation,  sale,  transfer,
assignment,  pledge or  encumbrance,  nor  subject to the debts,  contracts,  or
liabilities of Forsythe or his spouse or other Beneficiaries.

         11. CONTINUED  EMPLOYMENT.  This Agreement  shall not be construed as
conferring on Forsythe a right to continued  employment with the Bank.

         12. FUNDING.

                  (a) The Supplemental  Retirement Benefit at all times shall be
         entirely  unfunded,  and no  provision  shall at any time be made  with
         respect  to  segregating  any  assets of the Bank for  payments  of any
         benefits  hereunder,  except  that in the event of a Change of Control,
         the Bank, within five (5) days of such Change of Control,  shall fund a
         grantor  trust  within the  meaning of section  671 of the Code with an
         amount  sufficient  to  cover  all  potential  liabilities  under  this
         Agreement.

                  (b)  Neither  Forsythe  nor his spouse or other  Beneficiaries
         shall have any interest in any particular  assets of the Bank by reason
         of the right to receive a benefit  under this  Agreement.  Forsythe and
         his spouse or other Beneficiaries shall have only the rights of general
         unsecured  creditors  of the Bank with respect to any rights under this
         Agreement.

                  (c) Nothing  contained in this  Agreement  shall  constitute a
         guarantee  by the Bank or any  entity or person  that the assets of the
         Bank will be sufficient to pay any benefit hereunder.

         13.  WITHHOLDING.  Any payment made pursuant to this Agreement shall be
reduced by federal and state income, FICA or other employee payroll, withholding
or other similar taxes the Bank may be required to withhold. In addition, as the
Supplemental  Retirement  Benefit accrues during Forsythe's  employment with the
Bank, the Bank may withhold from Forsythe's  regular  compensation from the Bank
any FICA or other employee payroll,  withholding or other similar taxes the Bank
may be required to withhold.

         14. SUCCESSORS AND ASSIGNS.  This Agreement  shall be binding upon, and
shall inure to the benefit of, the successors and assigns of the Bank.

         15. APPLICABLE  LAW. This Agreement shall be construed and administered
in accordance with the laws of the State of New York, except to the extent
preempted by federal law.

                                      -9-
<PAGE>

         16. AMENDMENT.  This Agreement may not be amended, modified or
otherwise altered except by written  instrument  executed by both parties.

         17. ENTIRE AGREEMENT.  This Agreement  constitutes the entire agreement
and understanding of the parties,  and supersedes all prior  agreements  or
understanding  (whether  oral or written)  between the  parties,  relating to
deferred  compensation  and/or supplemental retirement income.

The parties hereby execute this Agreement as follows:

                                      NBT BANCORP INC.

                                      By:    /S/ Everett A. Gilmour

Date:   1/1/2000                      Its:   Chairman

                                      NBT BANK, NATIONAL ASSOCIATION

                                      By:    ___________________________________

Date: ____________________            Its:   ___________________________________

                                             /S/ Daryl R. Forsythe

Date:   1/1/2000                             DARYL R. FORSYTHE

                                      -10-
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