Document:

___________, 2006

September 21, 200620 September

Mr. Robert F. Wrobel 

Executive Vice President, Chief Legal Officer & Secretary 

Alpharma Inc. 

One Executive Drive 

Fort Lee, NJ 07024

Re:   Retirement Agreement

Dear Bob:

This Retirement separation Agreement (the "Agreement") sets forth the agreement between you (the "Executive") and Alpharma Inc. (the "Company") regarding the terms of your retirement from the Company.  

Retirement

The Company and the Executive agree that he shall retire no earlier than January 15, 2007 nor later than June 30, 2007.  The Company retains the option to choose any date within such period by giving Executive 30 days notice (the "Retirement Date").   At all times prior to his Retirement Date, Executive shall continue to be an employee and executive vice president of the Company, upon the same terms and conditions of employment as exist at this date (including without limitation salary and target bonus percentage).  Upon his Retirement Date, Executive shall be deemed to have "retired" for the purpose of all employee benefit plans and programs of the Company.

Chief Legal Officer

Executive agrees to relinquish the position of Chief Legal Officer concurrently with his Retirement Date or, upon at least 30 days notice, at any date after the date hereof as may be chosen by the Company.  Should Executive cease serving as Chief Legal Officer prior to his Retirement Date, he shall continue to report to the Chief Executive Officer and agrees to perform, on a full time basis and to the exclusion of any other business activities, such duties and assignments of an executive nature reasonably related to his expertise and experience as are assigned to him by the Chief Executive Officer.   For the purposes of all employee benefit plans and programs and the letter agreement between the Company and the Executive dated December 12, 2005 (the "Letter Agreement"), Executive shall be deemed to be an active employee and a member of the Chief Executive Officer's Leadership Team at all times prior to his Retirement Date. The June 29, 2007 payment under the heading Retention Payment in the Letter Agreement shall be paid to the Executive on his Retirement Date.

Bonus

Executive shall be eligible for a bonus pursuant to the terms of the Executive Bonus Plan for the 2006 fiscal year and shall be awarded a bonus based upon the Plan criteria as applied generally to other executives with respect to the 2006 fiscal year (without regard to whether the Executive serves as the Chief Legal Officer for the full fiscal year).  Executive shall be paid a pro rata portion of his Target Bonus for that portion of the 2007 fiscal year prior to his Retirement Date.  The 2006 bonus payment shall be made at the time other executives receive bonus payments for such period.  The 2007 bonus shall be paid on the Executive's Retirement Date.

Severance or Change in Control

Upon the Executive's Retirement Date, notwithstanding Section 7.1 of the Alpharma Inc. Severance Plan (the "Severance Plan"), he shall receive a lump sum payment equal to the amount due under Section 4.2(b)(ii) of the Severance Plan and coverage for himself and his spouse under the Alpharma Health and Welfare Program for eighteen months at the active employee rate (although the Executive will be required to pay the entire premium for the six month period described below).  The expiration of such eighteen-month period will be treated as the initial "Qualifying Event" for purposes of the Consolidated Omnibus Budget Reconciliation Act ("COBRA").  If the Executive is a "specified employee" within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the "Code"), the lump sum payment will be made on the date that is six months following the Executive's Retirement Date.  Such lump sum payment will be adjusted for interest (6% per annum) during the six-month period beginning on the Retirement Date and ending on the payment date.  

In the event that a binding agreement is executed by the Company prior to the Executive's Retirement Date with respect to a transaction which constitutes a "Change in Control", as that term is defined under the Alpharma Inc. Change in Control Plan ("Change in Control Plan") and such transaction is consummated on or before the Executive's Retirement Date, in lieu of the benefits set forth in the first paragraph of this section, the Executive shall receive the benefits set forth in the Change in Control Plan, as modified by the Letter Agreement.  If the terms of the Change in Control Plan (as modified by the Letter Agreement) become applicable to the Executive, (a) all benefits set forth in paragraph 1 of Appendix A to the Letter Agreement shall be payable in a lump sum on the Retirement Date, and (b) the cessation of the Executive's employment on the Retirement Date shall be deemed to have satisfied the requirements set forth in the first paragraph under the heading Special Severance Arrangement in the Letter Agreement.  Notwithstanding anything to the contrary in the Change in Control Plan or the Letter Agreement, the Executive shall receive coverage for himself and his spouse under the Alpharma Health and Welfare Program for eighteen months at the active employee rate (although the Executive will be required to pay the entire premium for the six month period described above).  The expiration of such eighteen-month period will be treated as the initial "Qualifying Event" for purposes of COBRA.

In all events, the Executive will also receive a lump sum payment equal to the employer-paid portion of the premiums paid by the Executive for coverage under the Alpharma Health and Welfare Program during such six-month period (described above), and $40,000 (such amount shall be grossed up for applicable tax withholding), which represents the estimated actuarial equivalent of providing coverage under the Alpharma Inc. Health and Welfare Program based on the provisions and rates in effect as of December 31, 2006, for the Executive's spouse from the date that her coverage ends pursuant to COBRA until April 22, 2012.

LTIP Awards

All restricted stock and stock option awards outstanding as of the Executive's Retirement Date shall immediately become fully vested but shall otherwise be governed by the terms of the applicable grant document.

Return of Company Property

No later than the Retirement Date, the Executive will return to Company any computers, keys, security cards, credit cards or other items that the Executive might have in his or her possession that are the property of the Company.  No later than the Retirement Date, the Executive will return all Company files, reports, books, data and other documents.

Retirement Plan Eligibility

This Agreement and the Executive's receipt of a lump sum severance payment will not affect his retirement eligibility or entitlement to vested benefits under any of the Company's retirement plans.  The Executive's rights under any qualified retirement plans will continue to be governed by the terms of those plans.

Supplemental Savings Plans and Supplemental Pension Plan

This Agreement and the Executive's receipt of a lump sum severance payment will not affect his eligibility or entitlement to benefits under the Company's Supplemental Savings Plans or the Supplemental Pension Plan.  The Executive's rights and benefits under those plans will continue to be governed by the terms of those plans.

Non-Disparagement

The Executive agrees that he will not make any statement now, or at any time in the future, to any current, former or potential customers, contractors, vendors or employees of the Company, to any media or to any other person that is disparaging of the business, reputation, competence, product quality or good character of the Company, its parent and their affiliates, their officers, directors, shareholders and employees.  A disparaging statement is any communication that, if publicized, would cause or tend to cause the recipient of the communication to question the business condition, integrity, competence, good character or product quality of the entity or person or entity to whom the communication relates.

Non-Disclosure of Confidential Information

The Executive acknowledges that he has been and will be privy to confidential and proprietary business information concerning Alpharma Inc., its predecessors and affiliates (hereinafter, for purposes of this paragraph, the "Company"), the unauthorized use or disclosure of which could cause serious and irreparable injury to the Company.  Confidential Business Information, as used herein, includes, but is not limited to, information relating to existing and planned product formulations, research and development efforts, plans and results; inventions and inventions in process; existing and prospective expansion plans; existing and prospective marketing plans and activities; past, existing and future litigation and litigation strategies; the Company's customers and suppliers, their key personnel and operations; operating costs; the identities and compensation arrangements of key employees of the Company; the identities and key employees of partners, acquisition targets, co-ventures, customers and suppliers; business plans and strategies; and other non-public information, regardless of whether such information is patented, patentable, copyrighted, or technically classifiable as a trade secret.  The obligations under this paragraph shall not apply to information (a) that has been or hereafter is generally known in the Company's industry through no fault of the Executive or (b) the disclosure of which is required by law or pursuant to court order.

Before disclosing any Confidential Business Information under the compulsion of legal process, the Executive agrees to give prompt notice to the Company of the fact that he has been served with legal process pursuant to which the disclosure of Confidential Business Information might be requested.  Such notice will be given within sufficient time before disclosure to permit the Company to intervene in the matter or to take such other actions as may be necessary or appropriate to protect its interests in the confidentiality of the information.

Waiver and Release

The Executive will execute a waiver and release on or after his Retirement Date in a form to be provided to him by the Company, which has the effect of releasing the Company, its affiliates, officers, directors on the Board and employees from any and all claims, demands, causes of action, damages, expenses and liabilities, whether known or unknown, which the Executive has or may later have against the Company which relate in any way to his employment by the Company, or retirement, or any other matters as of his Retirement Date.  The Executive understands that all of the payments and benefits described herein are contingent upon him first executing (and not revoking) the waiver and release described herein. 

Entire Agreement

This Agreement embodies the entire understanding of the parties with respect to the subject matter hereof.  In the event of a conflict between the terms of this Agreement and those of the Employment Agreement, this Agreement will govern.  No provision of this Agreement may be modified, amended or revoked, except in writing signed by the Executive and an authorized officer of the Company.

Severability

If any provision of this Agreement, or part thereof, is held invalid, void or voidable, such invalidity shall not affect other provisions, or parts thereof, which shall be given effect without the invalid provision or part.  No waiver or failure to enforce any condition or provision of this Agreement will be deemed to be a continuing waiver of the same or any other provision of this Agreement.

Section 409A of the Code 

Notwithstanding anything stated herein, in any employee benefit plan or program or in any other agreement, any payments hereunder that would be subject to the additional income tax imposed by Section 409A of the Code shall be deferred until the earliest date on which such payments may be made without the imposition of such tax, as determined in good faith by the Company.  

Governing Law

This Agreement shall in all respects be interpreted, enforced and governed under the laws of New Jersey without giving effect to the principles of conflicts of law.

Accord and Satisfaction

The only consideration that the Executive will receive for executing this Agreement is the benefits described above.  No other promise, inducement, threat, agreement or understanding of any kind or description has been made with or to the Executive by the Company to cause him to agree to the terms of this Agreement. 

Right to Consult an Attorney

The Executive understands that by this Agreement, the Company is advising him in writing that he should consult with an attorney prior to executing this Agreement.  The Executive states that he has had an opportunity to discuss this Agreement with whomever he wishes, including an attorney of his own choosing.  The Executive states that he has been given a reasonable period of time within which to read, review and consider all of the provisions of this Agreement; that he understands its provisions and its final and binding effect on him; and the Executive is entering into this Agreement freely, voluntarily, and without duress or coercion.

***

If you agree to the terms of this Agreement, please sign the enclosed copy of this Agreement and return it to me no later than September 21, 2006.

Sincerely, 

DEAN J. MITCHELL

President and CEO 

I, Robert F. Wrobel, acknowledge and agree to the terms and conditions of this Agreement.  

 

___________________________________________

    SignatureDate 

 

 

 

 

 

 

 

 

 

 

K:\Legal\Corporate\EMPLOYMENT MATTERS\Wrobel, Robert\Retirement Agreement.DOCUnassociated Document

     

     

     

    
      OSWEGO
        COUNTY NATIONAL BANK

      

      

      

      

      

      

      

      

      VOLUNTARY
        DEFERRED COMPENSATION PLAN

      FOR
        DIRECTORS

      

      (Amended
        and Restated)

      (Effective
        January
        1,
        2005)

      

       

       

       

      

      

      PENTEGRA

      RETIREMENT

      SERVICES

      TABLE
        OF
        CONTENTS

       

      
        
          	1.	 	Establishment and Purpose of the
                  Plan
	2.	 	Administration
	3.	 	Eligibility
	4.	 	Deferrals of Compensation
	5.	 	Accounts under the Plan
	6.	 	Deemed Investment of Accounts 
	7.	 	Change in Investment Directions
	8.	 	Crediting of Accounts
	9.	 	Status of Investments 
	10.	 	Vesting 
	11.	 	Payment of Accounts
	12.	 	Unforeseeable Emergency
	13.	 	Change in Control
	14.	 	Designation of Beneficiaries
	15.	 	Nonalienation
	16.	 	Indemnification
	17.	 	Severability
	18.	 	Waiver
	19.	 	Filing a Claim
	20.	 	Appeal of Denied Claims
	21.	 	Legal Action
	22.	 	Discretion of Committee
	23.	 	Notices
	24.	 	Governing Law
	25.	 	Construction of Language
	26.	 	Amendment or Discontinuance

        

      

       

       

      VOLUNTARY
        DEFERRED COMPENSATION PLAN

      FOR
        DIRECTORS

      

      (Amended
        and Restated Effective January 1, 2005)

      

      1.  Establishment
        and Purpose of the Plan. This
        Voluntary Deferred Compensation Plan for Directors (the "Plan") is established
        to enable the members of the Board of Directors of Oswego County National
        Bank
        (the "Bank"), Bridge Street Financial, Inc. (The "Parent Company") and its
        subsidiaries to defer all or a portion of their fees that would otherwise
        be
        paid to them as directors and to, instead, receive such amounts at a later
        date.
        The Plan is intended to meet the requirements of Section 409A of the Internal
        Revenue Code of 1986, as amended (the "Code") and other relevant provisions
        of
        the American Jobs Creation Act of 2004, as amended, and the Treasury Regulations
        promulgated thereunder.

      

      2.  Administration. The
        Plan
        shall be administered by the Personnel and Compensation Committee of the
        Board
        of Directors of the Bank or such other committee appointed either by the
        Board
        of Directors of the Bank (the "Board") or by such Personnel and Compensation
        Committee (the "Committee"). The Committee shall be authorized to interpret
        the
        Plan and make decisions regarding any questions arising thereunder, and any
        such
        interpretation or decision of the Committee shall, unless overruled or modified
        by the Board, be final, conclusive and binding upon all directors of the
        Bank,
        the Parent Company and its subsidiaries and upon any person claiming benefits
        or
        rights under the Plan by or through any such individual. No member of the
        Committee shall be entitled to act on or decide any matter relating solely
        to
        himself or herself or any of his or her rights or benefits under the Plan.
        The
        Committee may, in its discretion, designate a person or persons to carry
        out
        such duties or functions as the Committee so determines. Notwithstanding
        any
        provision of the Plan to the contrary, any duty or function which may be
        performed by the Committee or its delegates under the Plan may instead be
        performed by the Board if the Board so determines in its sole
        discretion.

      

      3.  Eligibility.
        Members
        of the Board of Directors of the Bank, the Parent Company and its subsidiaries
        shall be permitted to participate in the Plan. To the extent, if any, the
        provisions of the Employee Retirement Income Security Act of 1974, as amended,
        apply to this Plan with respect to any directors who are otherwise employees
        of
        the Bank, the Parent Company or its subsidiaries, it is intended that this
        program be limited to a select group of management or highly compensated
        employees, within the meaning of such law.

      

      4.  Deferrals
        of Compensation. With
        respect to each year as to which an individual has been designated as eligible
        to participate in this Plan, the individual may elect to become a Participant
        in
        the Plan by submitting to the Committee or its designee a written election
        to
        defer receipt of either a percentage of the amount, or specified dollar amount,
        that would otherwise be earned by the Participant in connection with his
        or her
        services as a director of the Bank, the Parent Company, or one or more of
        its
        subsidiaries in the next following calendar year. Except as otherwise provided
        by the Committee in accordance with applicable law, such election shall be
        made
        on or before the last day of the calendar year preceding the calendar year
        with
        respect to which the election relates. With respect to each individual who
        first
        becomes an eligible Participant, such an individual may defer receipt of
        compensation in the same year he/she first becomes eligible to participate
        in
        the Plan provided the election applies only to compensation deferred for
        services preformed subsequent to the date the election is filed with the
        Committee through the end of the calendar year and the election is made within
        30 days after the individual first becomes an eligible Participant.

      

      5.  Accounts
        under the Plan. Amounts
        deferred by a Participant pursuant to Paragraph 4 hereof
        shall be maintained in an Account for such Participant by the Bank, the Parent
        Company, or by the subsidiary of the Bank responsible to pay the compensation
        being deferred by the participant hereunder.

      

      6.  Deemed
        Investment of Accounts. The
        Account maintained on behalf of each Participant with respect to the amounts
        deferred by that Participant hereunder with respect to each year of
        participation by the Participant shall be deemed to be invested in, and shall
        be
        adjusted to reflect earnings and losses of, such investments or investment
        funds
        as is designated as available from time to time by the Committee. To the
        extent
        the Committee makes available alternative deemed investment vehicles with
        respect to amounts eligible to be deferred under the Plan, each Participant
        shall, upon making a deferral election hereunder, designate, in the form
        and
        manner prescribed by the Committee, that the amounts to be credited to his
        or
        her Account be applied in such proportions as he or she may designate, in
        such
        multiples as is permitted by the Committee, in each deemed investment made
        available by the Committee. The Committee may make available different deemed
        investments for amounts deferred at different times under the Plan, and may
        change the available deemed investments under the Plan from time to time.
        The
        Committee may also designate that only one deemed investment be available
        with
        respect to any amounts deferred hereunder, in which event that deemed investment
        shall apply to all such amounts without regard to any other election that
        a
        Participant may desire.

      

      7.  Change
        in Investment Directions. 
        A
        Participant may, in the form and manner prescribed by the Committee, elect
        to
        change his or her investment direction with respect to all or a portion of
        the
        amounts then held, or to be held, in such Participant's Account, with such
        election and new investment direction becoming effective the first day of
        any
        semiannual period (i.e. January 1 or July 1) provided such investment direction
        election is made, and not revoked, prior to the first day of such semi-annual
        period. Such direction may relate solely to amounts already allocated to
        the
        Participant's Account (in which event it shall constitute a direction to
        transfer amounts in the Participant's Account among the various available
        deemed
        investments) or may relate solely to amounts to be deferred in the future,
        or
        may relate to both amounts already allocated to the Participant's Account
        and
        amounts to be deferred in the future. Any investment direction election made
        by
        a Participant shall remain in effect until changed, to the extent such change
        is
        permitted under the Plan.

       

      8.  Crediting
        of Accounts. 
        Each
        Participant's Account shall be deemed credited
        at the end of each semi-annual period (or on such other dates as is designated
        by the Committee) with the earnings or losses that the amount in the Account
        would have experienced had the Account actually been invested in the deemed
        investment designated by the Participant or, as appropriate, the
        Committee.

      

      9.  Status
        of Investments. 
        All
        investments made by the Bank, the Parent Company, or any other subsidiary
        of the
        Bank pursuant to this Plan will be deemed made solely for the purpose of
        aiding
        such entity in measuring and meeting its obligations under the Plan. Further,
        such entities are not limited to the investments described in the provisions
        set
        forth above but are merely obligated to provide payments pursuant to the
        terms
        of this Plan that reflect the investment returns offered by the deemed
        investments made available under the Plan. The Bank or, as applicable, the
        Parent Company, one or more of the subsidiaries of the Bank, will be named
        sole
        owner of all such investments and of all rights and privileges conferred
        by the
        terms of the instruments evidencing such investments. This Plan places no
        obligation upon the Bank, the Parent Company, or its subsidiaries to invest
        any
        portion of the amount in a Participant's Account, to invest or continue to
        invest in any specific asset, to liquidate any particular investment, or
        to
        apply in any specific manner the proceeds from the sale, liquidation, or
        maturity of any particular investment. The Bank may, in its sole and absolute
        discretion, establish one or more accounts, funds, or trusts to reflect its
        obligations under the Plan. However, nothing stated herein shall cause such
        investments to be treated as anything but the general assets of the Bank
        or, as
        applicable, the Parent Company, or any subsidiaries of the Bank, nor will
        anything stated herein cause such investments to represent the vested, secured
        or preferred interest of the Participant or his or her beneficiaries designated
        under this Plan. Participants hereunder have the status of unsecured creditors
        with respect to their Accounts, and it is intended that the Plan be unfunded
        for
        tax purposes and, to any extent applicable, for purposes of Title I of the
        Employee Retirement Income Security Act of 1974, as amended.

      

      10.  Vesting.
        Participants
        shall be fully vested in all amounts in their accounts at all
        times.

      

      11.  (a) Payment
        of Accounts.
        At
        the
        time a Participant elects to defer compensation hereunder, the Participant
        shall
        designate the time and the manner of the payment of the amounts to be allocated
        to such Participant's Account with respect to such deferral of compensation.
        Except as otherwise provided below, payment to a Participant shall commence
        upon
        a fixed date selected by the Participant at the time of the deferral chosen
        from
        the following dates:

      

      (i)
        The
        last day of a semi-annual period ending at least two years from the end of
        the
        calendar year in which the deferred compensation would otherwise become payable,
        but no later than the end of the calendar quarter in which occurs the
        Participant's 75th birthday, except that amounts deferred under the Plan
        on or
        after December 10, 2003, shall be payable no later than the end of the
        semi-annual period in which occurs the Participant's 71st birthday.

      

      (ii)
        The
        last day of any one of the two semi-annual periods ending after the service
        of
        the Participant as a director of the Bank, the Parent Company, or any of
        is
        subsidiaries terminates (as designated by the Participant at the time of
        deferral). Except as otherwise provided below, the form of payment of deferred
        amounts in a Participant's Account shall be designated by the Participant
        at the
        time the election to defer compensation is made and shall be from among the
        following options, to the extent such optional forms are made available by
        the
        Committee. All forms of payment shall be based on the value of a Participant's
        Account attributable to the particular deferral election and all forms of
        payment shall be actuarially equivalent to each other. The options that may
        be
        made available are:

      

      (A)
        a
        lump sum;

      

      (B)
        a
        number of semi-annual installments or annual installments, limited in such
        manner as is determined by the Committee; or

      

      (C)
        a
        designated dollar amount (to the extent such amount is allocated to the
        Participant's Account with respect to the deferral of compensation in question)
        or percentage of the Participant's account at the end of one or more semi-annual
        periods otherwise available for election for the commencement of distributions
        as described above, with the remainder of the amount subject to such designation
        to be distributed commencing at such other date chosen by the Participant
        at the
        time of the deferral. 

      

      Notwithstanding
        any provision of the Plan to the contrary, a Participant who is a specified
        employee as defined in the regulations promulgated under Code Section 409A
        may
        not commence receipt of his/her benefit until the first day of the seventh
        month
        following his/her separation from service. For purposes of Code Section 409A,
        the Committee shall determine which Participants are specified employees
        as of
        December 31 in accordance with the Regulations promulgated under Section
        409A.
        Such determination by the Committee shall be effective for the twelve month
        period commencing on April  1.

      

      (b)  Payment
        Upon Unforeseeable Emergency. 
        A
        Participant may also, solely to the extent permitted by the Committee, direct
        that a portion of the amounts payable to the Participant be distributed in
        the
        event of an Unforeseeable Emergency (as defined below).

      

      (c)
         Payment
        Upon Change of Control. 
        A
        Participant may also, solely to the extent permitted by the Committee, direct
        that all of the amounts then allocated to the Participant's Account be
        distributable to the Participant upon a Change of Control of the Bank (as
        defined below), provided such Change of Control is a "change of control"
        as such
        term is defined in Section 409A of the Code.

      

      (d)  Payments
        Upon Death. 
        To the
        extent permitted by the Committee, a Participant may elect that if the
        Participant dies before payments of a deferred amount have otherwise commenced
        to the Participant, the amount allocated to the Participant's Account be
        distributed to the Participant's Beneficiary (as defined below) either on
        the
        last day of the calendar quarter in which the Participant dies (or as soon
        as
        practicable thereafter) or on the last day of the semi-annual period in the
        calendar year immediately following the date of the Participant's death;
        provided, however that if no such election is made, payment shall be made
        in a
        single lump sum at the end of the semi-annual period in which the Participant
        died, or as soon as practicable thereafter. If payments of a deferred amount
        in
        the form of installments have already commenced to the Participant, they
        shall
        continue to be made after the Participant's death to the Participant's
        Beneficiary in accordance with the Act to avoid acceleration of payment,
        who
        shall otherwise be granted the same rights as were held by the Participant
        hereunder.

      

      (e)  Additional
        Payment Elections.  Notwithstanding
        the preceding provisions of this Paragraph 11 to the contrary, a Participant
        may
        subsequently elect, in such form and manner as may be prescribed by the
        Committee, a revised commencement date for the amounts credited to his or
        her
        Account, in lieu of the date(s) initially selected, provided that: (i) any
        such
        election is not effective until 24 months
        following such election, (ii) the election provides that payment will be
        deferred for at least five (5) years from the date such payment would otherwise
        have been made (except for death as provided above), and (iii) the election
        is
        made at least 24 months
        prior to the first scheduled payment. Notwithstanding the preceding provisions
        of this Paragraph 11 to
        the
        contrary, a Participant may also subsequently elect, in such form and manner
        as
        may be prescribed by the Committee, that the amounts credited to his or her
        Account be paid in any one of the forms of benefit payment provided under
        this
        Paragraph 11 in lieu of the form of payment initially selected, provided
        that:
        (i) any such election is not effective for 24 months, (ii) the election to
        modify the form of distribution provides that payment will be deferred for
        at
        least five (5) years from the date such payment would otherwise have been
        made
        (except for death as provided above), and (iii) such election is made at
        least
        24 months prior to the first scheduled payment. For purposes of applying
        the
        provisions of this paragraph, the installment payment form of distribution
        provided under paragraph 11(ii)(b) of the Plan shall be treated as a payment
        in
        a single sum payable on the first scheduled payment date.

      

      12.  Unforeseeable
        Emergency. 
        A
        Participant may request, in writing to the Committee, a request for a withdrawal
        from his/her Account if the Participant experiences an Unforeseeable Emergency.
        Withdrawals for the purpose of an Unforeseeable Emergency are limited to
        the
        extent needed to satisfy the emergency, which cannot be met by the Participant
        utilizing other resources. The Committee shall make a determination with
        regard
        to the Unforeseeable Emergency in accordance with Code Section 409A and the
        Treasury Regulations promulgated thereunder. For purposes of this Plan, the
        term
        "Unforeseeable Emergency" means a severe financial hardship to the Participant,
        the Participant's spouse or a dependent (as defined in Code Section 152(a))
        of
        the Participant, loss of the Participant's property due to casualty, or other
        similar extraordinary and unforeseeable circumstances arising as a result
        of
        events beyond the control of the Participant. Examples of an Unforeseeable
        Emergency may include, under appropriate circumstances, the eminent foreclosure
        or eviction of the Participant from his or her home, the need to pay for
        unexpected medical expenses, and the need to pay for funeral expenses of
        a
        spouse or dependent. The purchase or construction of a home and payment of
        college tuition are not Unforeseeable Emergencies.

       

      13.  Change
        in Control. Unless
        otherwise determined by the Committee at the time of a Participant's deferral
        hereunder, for purposes of this Plan, subject to Section 409A of the Code,
        a
        Change in Control means the earliest of (I) the occurrence of a Terminating
        Event (as defined below), or (ii) the dissemination of a proxy statement
        soliciting proxies from stockholders or members of the Bank seeking stockholder
        or member approval of a Terminating Event of the type described in clause
        (a)
        below, or (iii) the publication or dissemination of an announcement of action
        intended to result in a Terminating Event of the type described in clauses
        (b)
        or (c) below.
        For these purposes, a "Terminating Event" means: 

      

      (a)
         the
        reorganization, merger or consolidation of the Bank with one or more
        corporations as a result of which the outstanding shares of common stock
        of the
        Bank are exchanged or converted into cash or property or securities not issued
        by the Bank unless the reorganization, merger or consolidation shall have
        been
        affirmatively recommended to the Bank's stockholders or members by a majority
        of
        the members of the Board. 

      

      (b) 
        the
        acquisition of substantially all of the property or of more than 35% of the
        voting power of the Bank by any person or entity; or

      

      (c) 
        the
        occurrence of any circumstance having the effect that directors who were
        nominated for election as directors by the Nominating Committee of the Board
        shall cease to constitute a majority of the authorized number of directors
        of
        the Bank.

      

      14.  Designation
        of Beneficiaries.
        In the
        event that a Participant dies prior to the receipt of all amounts payable
        to him
        or her pursuant to the Plan, all remaining amounts credited to his or her
        Account shall be paid to such one or more Beneficiaries and in such proportions
        as the Participant may designate, in accordance with the provisions of Paragraph
        11. If no Beneficiary has been named by the Participant, or if a named
        Beneficiary has predeceased the Participant and no successor beneficiary
        has
        been named or if a beneficiary designation is otherwise ineffective, payment
        shall be made to the estate of the Participant, and if any Beneficiary shall
        die
        after payments to that Beneficiary have commenced, if any remaining payments
        would otherwise be made to such Beneficiary, they shall instead be made to
        the
        estate of the Beneficiary. A Beneficiary designation pursuant to this Paragraph
        14 shall not be effective unless it is in writing and is received by the
        Committee prior to the death of the Participant making the
        designation.

       

      15.  Nonalienation. The
        right
        to receive a benefit under the Plan shall not be subject in any manner to
        anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
        attachment, or garnishment by creditors of the Participant or the Participant's
        beneficiaries.

      

      16.  Indemnification. The
        Bank
        shall indemnify, hold harmless and defend each member of the Board, each
        member
        of the Committee, each member of the Benefits Committee, and each of their
        designees who are employees of the Bank, the Parent Company or any of its
        subsidiaries, against any reasonable costs, including legal fees, incurred
        by
        them, or arising out of any action, suit or proceeding in which they may
        be
        involved, as a result of their efforts, in good faith, to defend or enforce
        the
        terms of the Plan.

      

      17.  Severability. 
A
        determination that any provision of the Plan is invalid or unenforceable
        shall
        not affect the validity or enforceability of any other provision
        hereof.

      

      18.  Waiver. Failure
        to insist upon strict compliance with any of the terms, covenants or conditions
        of the Plan shall not be deemed a waiver of such term, covenant or condition.
        A
        waiver of any provision of the Plan must be made in writing, designated as
        a
        waiver, and signed by the party against whom its enforcement is sought. Any
        waiver or relinquishment of any right or power hereunder at any one or more
        times shall not be deemed a waiver or relinquishment of such right or power
        at
        any other time or times.

      

      19.  Filing
        a Claim. Any
        controversy or claim arising out of or relating to the Plan shall be filed
        with
        the Committee which shall make all determinations concerning such claim.
        Any
        decision by the Committee denying such claim shall be in writing and shall
        be
        delivered to the Participant or Beneficiary filing the claim
        ("Claimant").

      

      (a) 
        In
        General. 
        Notice
        of a denial of benefits will be provided within 90 days of the Committee's
        receipt of the Claimant's claim for benefits. If the Committee determines
        that
        it needs additional time to review the claim, the Committee will provide
        the
        Claimant with a notice of the extension before the end of the initial 90-day
        period. The extension will not be more than 90 days from the end of the initial
        90-day period and the notice of extension will explain the special circumstances
        that require the extension and the date by which the Committee expects to
        make a
        decision.

      

      (b)
         Contents
        of Notice. 
        If a
        claim for benefits is completely or partially denied, notice of such denial
        shall be in writing and shall set forth the reasons for denial in plain
        language. The notice shall (1) cite the pertinent provisions of the Plan
        document and (2) explain, where appropriate, how the Claimant can perfect
        the
        claim, including a description of any additional material or information
        necessary to complete the claim and why such material or information is
        necessary. The claim denial also shall include an explanation of the claims
        review procedures and the time limits applicable to such procedures, including
        a
        statement of the Claimant's right to bring a civil action under Section 502(a)
        of ERISA following an adverse decision on review.

       

      20.  Appeal
        of Denied Claims. 
        A
        claimant whose claim has been completely or partially denied shall be entitled
        to appeal the claim denial by filing a written appeal with the Committee.
        A
        Claimant who timely requests a review of the denied claim (or his or her
        authorized representative) may review, upon request and free of charge, copies
        of all documents, records and other information relevant to the denial and
        may
        submit written comments, documents, records and other information relevant
        to
        the claim to the Committee. All written comments, documents, records, and
        other
        information shall be considered "relevant" if the information (1) was relied
        upon in making a benefits determination, (2) was submitted, considered or
        generated in the course of making a benefits decision regardless of whether
        it
        was relied upon to make the decision, or (3) demonstrates compliance with
        administrative processes and safeguards established for making benefit
        decisions. The Committee may, in its sole discretion and if it deems appropriate
        or necessary, decide to hold a hearing with respect to the claim
        appeal.

      

      (a)
         In
        General.  Appeal
        of
        a denied benefits claim must be filed in writing with the Committee no later
        than sixty (60) days after receipt of the written notification of such claim
        denial. The Committee shall make its decision regarding the merits of the
        denied
        claim within sixty (60) days following receipt of the appeal (or within one
        hundred and twenty (120) days after such receipt, in a case where there are
        special circumstances requiring extension of time for reviewing the appealed
        claim). If an extension of time for reviewing the appeal is required because
        of
        special circumstances, written notice of the extension shall be furnished
        to the
        CIaimant prior to the commencement of the extension. The notice will indicate
        the special circumstances requiring the extension of time and the date by
        which
        the Committee expects to render the determination on review. The review will
        take into account comments, documents, records and other information submitted
        by the Claimant relating to the claim without regard to whether such information
        was submitted or considered in the initial benefit determination.

      

      (b)
         Contents
        of Notice. If
        a
        benefits claim is completely or partially denied on review, notice of such
        denial shall be in writing and shall set forth the reasons for denial in
        plain
        language.

      

      (i)
        The
        decision on review shall set forth (a) the specific reason or reasons for
        the
        denial, (b) specific references to the pertinent Plan provisions on which
        the
        denial is based, (c) a statement that the Claimant is entitled to receive,
        upon
        request and free of charge, reasonable access to and copies of all documents,
        records, or other information relevant (as defined above) to the Claimant's
        claim, and (d) a statement describing any voluntary appeal procedures offered
        by
        the plan and a statement of the Claimant's right to bring an action under
        Section 502(a) of ERISA.

       

      21.  Legal
        Action.
        A
        Claimant may not bring any legal action relating to a claim for benefits
        under
        the Plan unless and until the Claimant has followed the claims procedures
        under
        the Plan and exhausted his or her administrative remedies under such claim
        procedures.

      

      22.  Discretion
        of Committee.
        All
        interpretations, determinations and decisions of the Committee with respect
        to
        any claim shall be made in its sole discretion, and shall be final and
        conclusive.

      

      23.  Notices. 
        Any notice or other communication required or permitted to be given to a
        party
        under the Plan shall be deemed given if personally delivered or if mailed,
        postage prepaid, by certified mail, return receipt requested, to the party
        at
        the address listed below, or at such other address as one such party may
        by
        written notice specify to the other:

      

      

      (a)
         if
        to the
        Committee:

      

      Attention:
        Chairperson - Personnel and Compensation Committee

      Oswego
        County National Bank

      300
        State
        Route 104

      Oswego,
        NY 13126

      

      (b)
        if to
        any party other than the Committee, to such party at the address last published
        by such party by written notice to the Committee.

      

      24.  Governing
        Law.
        The Plan
        shall be construed, administered and enforced according to the laws of New
        York,
        except to the extent that such laws are preempted by federal law.

      

      25.  Construction
        of Language. Wherever
        appropriate in the Plan, words used in the singular may be read in the plural,
        words in the plural may be read in the singular, and words importing the
        male
        gender shall be deemed equally to refer to the feminine or the neuter. Any
        reference to an Article or Section shall be to an Article or Section of the
        Plan, unless otherwise indicated.

       

      26.  Amendment
        or Discontinuance.
        The
        Board may amend, discontinue or terminate the Plan at any time in accordance
        with applicable law; provided, however, that no amendment or discontinuance
        shall affect the rights of Participants to amounts already allocated to their
        Accounts under the Plan. The Committee of the Bank may make any amendment
        to the
        Plan that may be necessary or appropriate to facilitate the administration,
        management, and interpretation of the Plan or to conform the Plan thereto
        or
        that may be necessary or appropriate to satisfy requirements of law, provided
        that any such amendment does not significantly affect the cost to Bank, Parent
        Company or any of its subsidiaries of maintaining the Plan. Notwithstanding
        the
        foregoing, no amendment by the Board or Committee of the Bank shall be made
        to
        the extent that any such amendment would cause any Participant who administers
        any employee benefit plan of the Bank (or the Parent Company or any subsidiary
        of the Bank) and who, in accordance with the terms of any such plan or
        applicable law, must be 'disinterested', to cease to qualify as an 'outside'
        director, within the meaning of Section 162(m) of the Internal Revenue Code
        of
        1986, as amended, and the treasury regulations thereunder.

      

      

      In
        witness whereof, Oswego County National Bank has caused this amendment and
        restatement of the Voluntary Deferred Compensation Plan for Directors to
        be
        executed on September 21, 2006.

       

      
        	 	 	 
	 	OSWEGO
                COUNTY NATIONAL BANK
	 
 	 
 	 
 
	 	By:  	
                /s/ Deborah
                  F. Stanley

              
	 	
                

              
	 	Chairperson
                of the
                Board

      Attest:

       

      
        
          	 	 	 
	
                  /s/ Mary
                    E.
                    Lilly

                	 	
                  /s/ Gregory
                    J. Kreis

                
	
                  

                	 	
                  

                
	Secretary	 	President

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