|   | (a) | The      “Effective Date” shall mean the first date during the Change of Control      Period (as defined in Section 1(b)) on which a Change of Control (as      defined in Section 2) occurs.  Anything in this Agreement to the      contrary notwithstanding, if a Change of Control occurs and if the      Executive’s employment with the Company is terminated prior to the date on      which the Change of Control occurs, and if it is reasonably demonstrated      by the Executive that such termination of employment (i) was at the      request of a third party who has taken steps reasonably calculated to      effect the Change of Control or (ii) otherwise arose in connection with or      anticipation of the Change of Control, then for all purposes of this      Agreement the “Effective Date” shall mean the date immediately prior to      the date of such termination ofemployment. |
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|   | (b) | The      “Change of Control Period” shall mean the period commencing on January 1,      2008 and ending on the third anniversary of such date; provided, however,      that commencing on January 1, 2009, and on each annual anniversary of such      date (such date and each annual anniversary thereof shall be hereinafter      referred to as the “Renewal Date”), unless previously terminated in      accordance with this Agreement, the Change of Control Period shall be      automatically extended so as to terminate three years after such Renewal      Date, unless at least 60 days prior to the Renewal Date the Company shall      give notice to the Executive that the Change of Control Period shall not      be so extended. |
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|   | (a) | The      acquisition by any individual, entity or group (within the meaning of      Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as      amended (the “Exchange Act”)) (a “Person”) (i) of      beneficial  ownership (within the meaning of Rule 13d-3      promulgated under the Exchange Act) of shares of common stock of the      Company which, when added to the common stock beneficially owned by such      Person, represents more than 50% of either (A) the total fair market value      of the then outstanding shares of common stock of the Company (the      “Outstanding Company Common Stock”) or (B) the combined voting power of      the then outstanding voting securities of the Company entitled to vote      generally in the election of directors (the “Outstanding Company Voting      Securities”), or (ii) during any 12-month period, of beneficial ownership      (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of      securities of the Company representing 30% or more of the Outstanding      Company Voting Securities; provided, however, that for purposes of this      subsection (a), the following acquisitions of securities of the Company      shall not constitute a Change of Control: (V) any acquisition directly      from the Company, (W) any acquisition by the Company, (X) any acquisition      by any employee benefit plan (or related trust) sponsored or maintained by      the Company or any corporation controlled by the Company, (Y) any      acquisition made by a Person who is eligible under the provisions of Rule      13d-1 under the Exchange Act as in effect on the date hereof to report      such acquisition on Schedule 13G, or (Z) any acquisition by any      corporation pursuant to a transaction which complies with clauses (i),      (ii) and (iii) of subsection (c) of this Section 2;  or |
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|   | (b) | Individuals      who, as of the date hereof, constitute the Board of Directors (the      “Incumbent Board”) cease for any reason to constitute at least a majority      of the Board of Directors; provided, however, that any individual becoming      a director subsequent to the date hereof whose election, or nomination for      election by the Company’s shareholders, was approved by a vote of at least      a majority of the directors then comprising the Board of Directors shall      be considered as though such individual were a member of the Incumbent      Board, but excluding for this purpose, any such individual whose initial      assumption of office occurs as a result of an actual or threatened      election contest with respect to the election or removal of directors or      other actual or threatened solicitation of proxies or consents by or on      behalf of a Person other than the Board of Directors;  or |
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|   | (c) | Consummation      of a reorganization, merger or consolidation or sale or other disposition      of all or substantially all (defined as more than 50% of the total gross      fair market value) of the assets of the Company (a “Business      Combination”), in each case unless, following such Business Combination,      (i) Persons who were the beneficial owners, respectively, of the      Outstanding Company Common Stock and Outstanding Company Voting Securities      immediately prior to such Business Combination beneficially own, directly      or indirectly, more than 50% of the then outstanding shares of common      stock and the combined voting power of the then outstanding voting      securities entitled to vote generally in the election of directors of the      corporation resulting from such Business Combination (including, without      limitation, a corporation which as a result of such transaction owns the      Company or all or substantially all of the Company’s assets either      directly or through one or more subsidiaries), (ii) no Person      (excluding any corporation resulting from such Business Combination or any      employee benefit plan (or related trust) of the Company or such      corporation resulting from such Business Combination) beneficially owns,      directly or indirectly, more than 30% of the combined voting power of the      then outstanding voting securities of such corporation except to the      extent that such ownership existed prior to the Business Combination and      (iii) at least a majority of the members of the board of directors of the      corporation resulting from such Business Combination were members of the      Incumbent Board at the time of the execution of the initial agreement or      of the action of the Board of the Directors providing such Business      Combination. |
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|   | 4. | Terms of      Employment. |
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|   | (i) | During      the Employment Period, (A) the Executive’s position (including status,      offices, titles and reporting requirements), authority, duties, and      responsibilities shall be at least commensurate in all material respects      with the most significant of those held and exercised by and assigned to      the Executive at any time during the 120-day period immediately preceding      the Effective Date and (B) the Executive’s services shall be performed at      the location where the Executive was employed immediately preceding the      Effective Date or any office or location less than 35 miles from such      location. |
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|   | (ii) | During      the Employment Period, and excluding any periods of vacation and sick      leave to which the Executive is entitled, the Executive agrees to devote      reasonable attention and time during normal business hours to the business      and affairs of the Company and, to the extent necessary to discharge the      responsibilities assigned to the Executive hereunder, to use the      Executive’s reasonable best efforts to perform faithfully and efficiently      such responsibilities.  During the Employment Period it shall      not be a violation of this Agreement for the Executive to (A) serve      on corporate, civic or charitable boards or committees, (B) deliver      lectures, fulfill speaking engagements or teach at educational      institutions and (C) manage personal investments, so long as such      activities do not significantly interfere with the performance of the      Executive’s responsibilities as an employee of the Company in accordance      with this Agreement.  It is expressly understood and agreed that      to the extent that any such activities have been conducted by the      Executive prior to the Effective Date, the continued conduct of such      activities (or the conduct of activities similar in nature and scope      thereto) subsequent to the Effective Date shall not thereafter be deemed      to interfere with the performance of the Executive’s responsibilities to      the Company. |
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|   | (iii) | This      Agreement shall be canceled and will not be effective in any manner in the      event that the Executive’s employment with the Company terminates prior to      the Effective Date.  As of and after such termination, this      Agreement shall be deemed to be null and void and may not be reinstated      except by the signature of the Chief Executive Officer of the      Company. |
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|   | (i) | Base Salary.      During the Employment Period, the Executive shall receive an annual base      salary (“Annual Base Salary”), which shall be paid at a monthly rate, at      least equal to twelve times the highest monthly base salary paid or      payable, including any base salary which has been earned but deferred, to      the Executive by the Company and its affiliated companies in respect of      the twelve-month period immediately preceding the month in which the      Effective Date occurs.  During the Employment Period, the Annual      Base Salary shall be reviewed no more than 12 months after the last salary      increase awarded to the Executive prior to the Effective Date and      thereafter at least annually.  Any increase in Annual Base      Salary shall not serve to limit or reduce any other obligation to the      Executive under this Agreement.  Annual Base Salary shall not be      reduced after any such increase and the term “Annual Base Salary” as      utilized in this Agreement shall refer to Annual Base Salary as so      increased.  As used in this Agreement, the term, “affiliated      companies” shall include any company controlled by, controlling or under      common control with the Company. |
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|   | (ii) | Annual      Bonus.  In addition to the Annual Base Salary, the      Executive shall be awarded, for each Bonus Year (as defined below) ending      during the Employment Period, an annual bonus (the “Annual Bonus”) in cash      at least equal to the highest aggregate amount awarded to the Executive      under all annual bonus, incentive and other similar plans of the Company      with respect to any of the last three full years prior to the Effective      Date (annualized in the event that the Executive was not employed by the      Company for the whole of such year) (the “Recent Annual      Bonus”).   For purposes of this Agreement, each fiscal year      of the Company or calendar year during the Employment Period with respect      to which annual bonuses are paid generally by the Company to employees of      the Company shall be referred to as a "Bonus Year."  Each such      Annual Bonus shall be paid as soon as practicable but no later than two      and one half months after the end of the Bonus Year with respect to which      the Annual Bonus is awarded, unless the Executive properly elects to defer      the receipt of such Annual Bonus in compliance with the terms of any plan      of the Company that is then in effect and which permits such      deferral. |
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|   | (iii) | Incentive, Savings and      Retirement Plans.  During the Employment Period, the      Executive shall be entitled to participate in all incentive, savings and      retirement plans, practices, policies and programs applicable generally to      other peer executives of the Company and its affiliated companies, but in      no event shall such plans, practices, policies and programs provide the      Executive with incentive opportunities (measured with respect to both      regular and special incentive opportunities to the extent, if any, that      such distinction is applicable), savings opportunities and retirement      benefit opportunities, in each case, less favorable, in the aggregate,      than the most favorable of those provided by the Company and its      affiliated companies for the Executive under such plans, practices and      policies and programs as in effect at any time during the 120-day period      immediately preceding the Effective Date or if more favorable to the      Executive, those provided at any time during the Employment Period to      other peer executives of the Company and its affiliated companies      generally. |
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|   | (iv) | Welfare Benefit      Plans.  During the Employment Period, the Executive      and/or the Executive’s family, as the case may be, shall be eligible for      participation in and shall receive all benefits under welfare benefit      plans, practices, policies and programs provided by the Company and its      affiliated companies (including, without limitation, medical,      prescription, dental, disability, employee life, group life, accidental      death and travel accident insurance plans and programs) to the extent      applicable generally to other peer executives of the Company and its      affiliated companies, but in no event shall such plans, practices,      policies and programs provide the Executive with benefits which are less      favorable in the aggregate than the most favorable of such plans,      practices, policies and programs in effect for the Executive at any time      during the 120-day period immediately preceding the Effective Date or, if      more favorable to the Executive, those provided at any time during the      Employment Period to other peer executives of the Company and its      affiliated companies generally. |
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|   | (v) | Expenses.  During      the Employment Period, the Executive shall be entitled to receive prompt      reimbursement for all reasonable expenses incurred by the Executive in      accordance with the most favorable policies, practices and procedures of      the Company and its affiliated companies in effect for the Executive at      any time during the 120-day period immediately preceding the Effective      Date or, if more favorable to the Executive, as in effect at any time      during the Employment Period with respect to other peer executives of the      Company and its affiliated companiesgenerally. |
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|   | (vi) | Fringe      Benefits.  During the Employment Period, the Executive      shall be entitled to fringe benefits, including, without limitation, tax      and financial planning services, payment of club dues, and, if applicable,      use of an automobile and payment of related expenses, in accordance with      the most favorable plans, practices, programs and policies of the Company      and its affiliated companies in effect for the Executive at any time      during the 120-day period immediately preceding the Effective Date or, if      more favorable to the Executive, as in effect at any time during the      Employment Period with respect to other peer executives of the Company and      its affiliated companies generally. |
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|   | (vii) | Office and Support      Staff.  During the Employment Period, the Executive shall      be entitled to an office or offices of a size and with furnishings and      other appointments, and to exclusive personal secretarial and other      assistance, at least equal to the most favorable of the foregoing provided      to the Executive by the Company and its affiliated companies at any time      during the 120-day period immediately preceding the Effective Date or, if      more favorable to the Executive, as provided at any time during the      Employment Period with respect to other peer executives of the Company and      its affiliated companies generally. |
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|   | (viii) | Vacation.  During      the Employment Period, the Executive shall be entitled to paid vacation in      accordance with the most favorable plans, policies, programs and practices      of the Company and its affiliated companies as in effect for the Executive      at any time during the 120-day period immediately preceding the Effective      Date or, if more favorable to the Executive, as in effect at any time      during the Employment Period with respect to other peer executives of the      Company and its affiliated companiesgenerally. |
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|   | (a) | Death or      Disability.  The Executive’s employment shall terminate      automatically upon the Executive’s death during the Employment      Period.  If the Company determines in good faith that the      Disability of the Executive has occurred during the Employment Period      (pursuant to the definition of Disability set forth below), it may give to      the Executive written notice of its intention to terminate the Executive’s      employment.  In such event, the Executive’s employment with the      Company shall terminate effective on the 30th day after receipt of such      notice by the Executive (the “Disability Effective Date”), provided that      within 30 days after such receipt the Executive shall not have returned to      full-time performance of the Executive’s duties.  For purposes      of this Agreement, “Disability” shall mean the absence of the Executive      from the Executive’s duties with the Company on a full-time basis for 180      consecutive business days as a result of incapacity due to mental or      physical illness which is determined to be total and permanent by a      physician selected by the Company or its insurers and acceptable to the      Executive or the Executive’s legal  representative. |
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|   | (c) | Cause.  The      Company may terminate the Executive’s employment during the Employment      Period for Cause.  For purposes of this Agreement, “Cause” shall      mean: |
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|   | (i) | the      willful and continuous failure of the Executive to      perform  substantially the Executive’s duties with the Company      or one of its affiliates (other than any such failure resulting from      incapacity due to physical or mental illness), after a written demand for      substantial performance is delivered to the Executive by the Board of      Directors or the Chief Executive Officer of the Company which specifically      identifies the manner in which the Board of Directors or Chief Executive      Officer believes that the Executive has not substantially performed the      Executive’s duties, or |
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|   | (ii) | the      willful engaging by the Executive in illegal conduct or gross misconduct      which is materially and demonstrably injurious to the    Company. |
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|   | (d) | Good      Reason.  The Executive’s employment may be terminated by      the Executive for “Good Reason”.  For purposes of this      Agreement, "Good Reason” shall mean a separation from employment occurring      no later than two years following the initial existence of one or more of      the following conditions arising without the consent of the      Executive: |
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|   | (i) | any      action by the Company, including the assignment to the Executive of any      duties inconsistent in any material respect with the Executive’s position      (including status, offices, titles and reporting requirements), authority,      duties or responsibilities as contemplated by Section 4(a) of this      Agreement, which results in a material diminution in the Executive's      position, authority, duties or responsibilities;  or |
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|   | (ii) | any      material failure by the Company to comply with any of the provisions of      Section 4(b)(i) and (ii) of this Agreement;or |
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|   | (iii) | any      material change in the geographic location at which the Executive must      perform services to the Company |
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|   | (e) | With Adequate      Reason.  The Executive’s employment may be terminated by      the Executive for any reason or no reason during the 30-day period      immediately following the first anniversary of the Effective Date, which      shall be referred to for purposes of this Agreement as a termination “With      Adequate Reason”. |
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|   | (f) | Without      Cause.  The Executive’s employment may be terminated by      the Company other than as a result of the Executive’s death or Disability      and other than for Cause, which termination (if it occurs at any time      other      than upon a Change of Control) shall be referred to for purposes of      this Agreement as a termination “WithoutCause”. |
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|   | (g) | Notice of      Termination.  Any termination (i) by the Company for      Cause, (ii) by the Company without Cause, (iii) by the Executive for Good      Reason, (iv) by the Executive With Adequate Reason, or (v) by the Company      upon a Change of Control shall be communicated by Notice of Termination to      the other party hereto given in accordance with this      Agreement.  For purposes of this Agreement, a “Notice of      Termination” means a written notice which (i) indicates the specific      termination provision in this Agreement relied upon, (ii) to the extent      applicable, sets forth in reasonable detail the facts and circumstances      claimed to provide a basis for termination of the Executive’s employment      under the provision so indicated and (iii) if the Date of Termination (as      defined below) is other than the date of receipt of such notice, specifies      the termination date (which date shall be not more than 30 days after the      giving of such notice).  The failure by the Executive or the      Company to set forth in the Notice of Termination any fact or circumstance      which contributes to a showing of Good Reason or Cause shall not waive any      right of the Executive or the Company, respectively, hereunder or preclude      the Executive or the Company, respectively, from asserting such fact or      circumstance in enforcing the Executive’s or the Company’s rights      hereunder. |
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|   | (g) | Date of      Termination.  “Date of Termination” means (i) if the      Executive’s employment is terminated (A) by the Company for Cause, (B) by      the Executive for Good Reason, (C) by the Executive With Adequate Reason,      (D) by the Company upon the occurrence of a Change of Control, or (E) by      the Company Without Cause, the date of receipt of the Notice of      Termination or any later date specified therein, as the case may be, and      (ii) if the Executive’s employment is terminated by reason of death or      Disability, the date of death of the Executive or the Disability Effective      Date, as the case may be. |
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|   | 6. | Obligations of the      Company upon Termination. |
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|   | (a) | Termination upon the      Occurrence of a Change of Control.  Notwithstanding the      provisions of Section 6(b) of this Agreement, if the Company shall      terminate the Executive’s employment upon the occurrence (but not later      than 90 days after) a Change ofControl: |
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|   | (i) | the      Company shall pay to the Executive in a lump sum in cash within 30 days      after the Date of Termination the aggregate of the following      amounts: |
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|   | A. | the      sum of (1) the Executive’s Annual Base Salary through the Date of      Termination to the extent not theretofore paid, (2) the product of (x) the      higher of (i) the Recent Annual Bonus and (ii) the Annual Bonus paid or      payable, including any bonus or portion thereof which has been earned but      deferred (and annualized for any year consisting of less than 12 full      months or during which the Executive was employed for less than 12 full      months), for the most recently completed Bonus Year during the Employment      Period for which an Annual Bonus was payable, if any (such higher amount      being referred to as the “Highest Annual Bonus”) and (y) a fraction, the      numerator of which is the number of days in the Bonus Year in which the      termination of employment occurs through the Date of Termination and the      denominator of which is 365 and (3) any accrued vacation pay to the extent      not theretofore paid (the sum of the amounts described in clauses (1), (2)      and (3) shall be hereinafter referred to for purposes of this Agreement as      the “Accrued Obligations”); and |
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|   | B. | the      amount equal to the product of (1) three and (2) the sum of the      Executive’s (x) Annual Base Salary and (y) Highest Annual Bonus      (hereinafter referred to for purposes of this Agreement as the “Severance      Obligations”); and |
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|   | C. | an      amount equal to the excess of (1) the actuarial equivalent of the benefit      under the Company’s qualified defined benefit retirement plan (the      “Retirement Plan”) (utilizing actuarial assumptions no less favorable to      the Executive than those in effect under the Company’s Retirement Plan      immediately prior to the Effective Date), and any excess or supplemental      retirement plan in which the Executive participates (together, the “SERP”)      which the Executive would receive if the Executive’s employment continued      for three years after the Date of Termination assuming for this purpose      that all accrued benefits are fully vested and assuming that the      Executive’s compensation in each of the three years is that required by      Sections 4(b)(i) and 4(b)(ii), over (b) the actuarial equivalent of the      Executive’s actual benefit (paid or payable), if any, under the Retirement      Plan and the SERP as of the Date of Termination (the amount computed in      accordance with this subparagraph (C) shall be hereinafter referred to for      purposes of this Agreement as the "SERP  Benefit"); |
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|   | (ii) | subject      to the provisions of Section 6(h) below, for three years after the Date of      Termination, or such longer period as may be provided by the terms of the      appropriate plan, program, practice or policy, the Company shall continue      benefits to the Executive and/or the Executive’s family at least equal to      those which would have been provided to them in accordance with the plans,      programs, practices and policies described in Section 4(b)(iv) of this      Agreement if the Executive’s employment had not been terminated or, if      more favorable to the Executive, as in effect generally at any time during      such three year period with respect to other peer executives of the      Company and its affiliated companies and their families, provided,      however, that if the Executive becomes employed with another employer who      provides medical and other welfare plans, the medical and other welfare      benefits described herein shall be secondary to those provided under such      other plans during such applicable period of eligibility.  For      purposes of determining eligibility (but not the time of commencement of      benefits) of the Executive for retiree benefits pursuant to such plans,      practices, programs and policies, the Executive shall be considered to      have remained employed until three years after the Date of Termination and      to have retired on the last day of such period.  The benefits      described in this clause (ii) and the extent to which the Executive is      entitled to such benefits shall be hereinafter referred to for purposes of      this Agreement as the “WelfareBenefits”; |
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|   | (iii) | the      Company shall, at its sole expense as incurred, provide the Executive with      reasonable outplacement services directly related to the Executive's      termination of services to the Company, the provider of which shall be      selected by the Executive in his sole discretion, for a period ending no      later than the last day of the second taxable year of the Company      following the Company’s taxable year in which the Date of Termination      occurs, provided that any reimbursement by the Company of such expense      must be paid no later than the end of the third taxable year of the      Company following the taxable year of the Company in which the Executive's      termination of employment occurs.  The reimbursement for      outplacement services described in this clause (iii), including the      restrictions on reimbursement set forth herein, shall be referred to for      purposes of this Agreement as the “Outpatient Assistance Benefit”;      and |
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|   | (iv) | to      the extent not theretofore paid or provided, the Company shall timely pay      or provide to the Executive all other amounts or benefits required to be      paid or provided or which the Executive is eligible to receive under any      plan, program, policy, practice, contract or agreement of the Company and      its affiliated companies (other than this Agreement), which amounts or      benefits shall be paid or provided in accordance with the terms of such      plan, program, policy, practice, contract or agreement (such other amounts      and benefits shall be hereinafter referred to for purposes of this      Agreement as the “Other Benefits”). |
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|   | (b) | Termination by the      Company Without Cause or by the Executive With Good      Reason.  If, during the Employment Period, the Company      shall terminate the Executive’s employment Without Cause or the Executive      shall terminate the Executive’s employment for Good  Reason: |
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|   | (i) | the      Company shall pay to the Executive in a lump sum in cash within 30 days      after the Date of Termination the aggregate of the following      amounts: |
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|   | A. | an      amount equal to the Accrued Obligations;and |
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|   | B. | an      amount equal to the Severance Obligations;and |
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|   | C. | an      amount equal to the SERP Benefit; |
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|   | (ii) | Subject      to the provisions of Section 6(h) below, for three years after the      Executive’s Date of Termination, or such longer period as may be provided      by the terms of the appropriate plan, program, practice or policy, the      Company shall continue the WelfareBenefits; |
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|   | (iii) | the      Company shall, at its sole expense as incurred, provide the Executive with      the Outplacement Assistance Benefit:and |
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|   | (iv) | to      the extent not theretofore paid or provided, the Company shall timely pay      or provide the Other Benefits to theExecutive. |
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|   | (v) | In      the event that during the Employment Period (A) the Executive's employment      is terminated by the Company Without Cause or by the Employee for Good      Reason and (B) the Company has securities which are publicly traded on an      “established securities market” and the Executive is a “specified      employee,” in each case within the meaning of Section 409A of the Code, as      of the Date of Termination, then notwithstanding the preceding provisions      of this Section 6(b), the payments and benefits to be made or provided to      the Executive pursuant to clauses (i)B. and C. and clauses (ii) and (iv)      of this Section 6(b) prior to the date which is six months and one day      after the Date of Termination shall not exceed the sum of (X) two times      the lesser of (1) the Executive’s annualized salary for the Company’s      taxable year in which the Date of Termination occurs, or (2) the amount      described in Section 401(a)(17) of the Code for the calendar year in which      the Date of Termination occurs (the "Termination Year"), plus (Y) the      applicable dollar amount under Section 402(g)(1)(B) of the Code for the      Termination Year, plus (Z) the medical and dental benefits to be provided      in accordance with Section 4(b)(iv) of this Agreement (collectively, the      “Permitted Payments”).  To the extent that the preceding      provisions of this Section 6(b) would require payment to the Executive      during the six month period commencing on the Date of Termination of any      amount in excess of the Permitted Payments, such excess shall be paid to      the Executive (without interest) on the date that is six months plus one      day after the Date of Termination.   The provisions of this      clause (v) shall apply only in the event and to the extent necessary to      prevent the imposition of any accelerated or additional tax under Section      409A of the Code. |
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|   | (vi) | Notwithstanding      anything in this Section 6(b) to the contrary, if the termination of the      Executive's employment by the Company Without Cause or by the Executive      with Good Reason occurs more than two years after the Change of Control,      then in the event that the provisions of this Section 6(b) are subject to      aggregation with any other separation pay plan of the Company offering      involuntary termination benefits to the Executive pursuant to Section 409A      of the Code and the Treasury Regulations thereunder, the payments required      to be made by the Company to the Executive pursuant to clauses (i)B. and      C. of this Section 6(b) shall be paid to the Executive at the time and in      accordance with the provisions of such other separation pay plan of the      Company (but subject to the provisions of clauses (v) of this Section      6(b), if applicable). |
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|   | (c) | Death.  If      the Executive’s employment is terminated by reason of the Executive’s      death during the Employment Period, this Agreement shall terminate without      further obligations to the Executive’s legal representatives under this      Agreement other than for payment of Accrued Obligations and the timely      payment or provision of Other Benefits.  Accrued Obligations      shall be paid to the Executive’s estate or beneficiary, as applicable, in      a lump sum in cash within 30 days after the Date of      Termination.  With respect to the provision of Other Benefits,      the term “Other Benefits” as utilized in this Section 6(c) only shall      include, without limitation, and the Executive’s estate and/or      beneficiaries shall be entitled to receive, benefits at least equal to the      most favorable benefits provided by the Company and affiliated companies      to the estates and beneficiaries of peer executives of the Company and      such affiliated companies under such plans, programs, practices and      policies relating to death benefits, if any, as in effect with respect to      other peer executives and their beneficiaries at any time during the      120-day period immediately preceding the Effective Date or, if more      favorable to the Executive’s estate and/or the Executive’s beneficiaries,      as in effect on the date of the Executive’s death with respect to other      peer executives of the Company and its affiliated companies and their      beneficiaries. |
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|   | (d) | Disability.  If      the Executive’s employment is terminated by reason of the Executive’s      Disability during the Employment Period, this Agreement shall terminate      without further obligations to the Executive, other than for payment of      Accrued Obligations and the timely payment or provision of Other      Benefits.  Accrued Obligations shall be paid to the Executive in      a lump sum in cash within 30 days after the Date of      Termination.  With respect to the provision of Other Benefits,      the term “Other Benefits” as utilized in this Section 6(d) only shall      include, and the Executive shall be entitled after the Disability      Effective Date to receive, disability and other benefits at least equal to      the most favorable of those generally provided by the Company and its      affiliated companies to disabled executives and/or their families in      accordance with such plans, programs, practices and policies relating to      disability, if any, as in effect generally with respect to other peer      executives and their families at any time during the 120-day period      immediately preceding Effective Date or, if more favorable to the      Executive and/or the Executive’s family, as in effect on the Disability      Effective Date with respect to other peer executives of the Company and      its affiliated companies and theirfamilies. |
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|   | (e) | For      Cause.  If the Executive’s employment is terminated      during the Employment Period by the Company for Cause, this Agreement      shall terminate without further obligations to the Executive other than      the obligation to pay to the Executive within 30 days after the Date of      Termination (i) his Annual Base Salary through the Date of Termination,      and (ii) the Other Benefits, in each case to the extent theretofore      unpaid. |
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|   | (f) | Termination by the      Executive With Adequate Reason.   If the Executive's      employment is terminated during the Employment Period by the Executive      With Adequate Reason: |
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|   | (i) | the      Company shall pay to the Executive in a lump sum in cash within 30 days      after the Date of Termination the aggregate of the following      amounts: |
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|   | A. | an      amount equal to the Accrued Obligations;and |
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|   | B. | an      amount equal to the Severance Obligations;and |
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|   | C. | an      amount equal to the SERP Benefit; |
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|   | (ii) | Subject      to the provisions of Section 6(h) below, for three years after the Date of      Termination, or such longer period as may be provided by the terms of the      appropriate plan, program, practice or policy, the Company shall continue      the Welfare Benefits; |
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|   | (iii) | the      Company shall, at its sole expense as incurred, provide the Executive with      the Outplacement Assistance Benefit;and |
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|   | (iv) | to      the extent not theretofore paid or provided, the Company shall timely pay      or provide the Other Benefits to theExecutive. |
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|   | (v) | In      the event that (A) the Executive's employment is terminated with Adequate      Reason and (B) the Company has securities which are publicly traded on an      “established securities market” and the Executive is a “specified      employee,” in each case within the meaning of Section 409A of the Code, as      of the Date of Termination, then notwithstanding the preceding provisions      of this Section 6(f), the payments and benefits which may be made or      provided to the Executive pursuant to clauses (i)B. and C. and clauses      (ii) and (iv) of this Section 6(f) prior to the date which is six months      and one day after the Date of Termination shall be limited to the medical      and dental benefits to be provided in accordance with Section 4(b)(iv) of      this Agreement plus such benefits (to be selected by the Employee from the      benefits to be provided under this Section 6(f)) in an aggregate amount      not to exceed the amount described in Section 402(g)(1)(B) of the Code for      the Termination Year.  To the extent that the preceding      provisions of this Section 6(f) would require payment to the Executive      during the six month period commencing on the Date of Termination in      excess of this limitation, then any such excess shall be paid to the      Executive (without interest) on the date that is six months plus one day      after the Date of Termination.  The provisions of this clause      (v) shall apply only in the event and to the extent necessary to prevent      the imposition of any accelerated or additional tax under Section 409A of      the Code. |
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|   | (g) | Termination by      Executive Other Than For Good Reason or With Adequate      Reason.  If the Executive voluntarily terminates his      employment during the Employment Period, excluding a termination for Good      Reason or With Adequate Reason, this Agreement shall terminate without      further obligations to the Executive, other than for Accrued Obligations      and the timely payment or provision of Other Benefits.  In such      case, all Accrued Obligations shall be paid to the Executive in a lump sum      in cash within 30 days after the Date of Termination and all Other      Benefits shall be timely paid to the Executive in accordance with the      terms of the appropriate plan, program, practice or  policy. |
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|   | (h) | Special Rules for      In-Kind Benefits or Reimbursements.  For purposes of      Sections 6(a)(ii), 6(b)(ii), and 6(f)(ii), the provision of Welfare      Benefits in kind to the Executive and/or the Executive's family or the      provision of reimbursement to the Executive therefore shall be subject to      the following conditions: (i) the expenses eligible for reimbursement and      the in-kind benefits to be provided are objectively determinable and      non-discretionary under applicable plans and programs of the Company ;      (ii) the amount of expenses eligible for reimbursement or in-kind benefits      provided during the Executive's taxable year may not affect the expenses      eligible for reimbursement or in-kind benefits to be provided to the      Executive in any other taxable year; (iii) the reimbursement of an      eligible expense must be made on or before the last day of the Executive's      taxable year following the taxable year in which the expense was incurred;      and (iv) the right to reimbursement or in-kind benefits may not be subject      to liquidation or exchange for another benefit.  The provisions      of this subsection (h) shall apply only in the event and to the extent      necessary to prevent the imposition of any accelerated or additional tax      under Section 409A of the Code. |
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|   | (a) | Anything      in this Agreement to the contrary notwithstanding, in the event it shall      be determined that any payment or distribution by the Company to or for      the benefit of the Executive (whether paid or payable or distributed or      distributable pursuant to the terms of this Agreement or otherwise) (a      “Payment”) would be nondeductible by the Company for Federal income tax      purposes because of Section 280G of the Code, then the aggregate present      value of amounts payable or distributable to or for the benefit of the      Executive pursuant to this Agreement (such payments or distributions      pursuant to this Agreement are hereinafter referred to as “Agreement      Payments”) shall be reduced (but not below zero) to the Reduced      Amount.  The “Reduced Amount” shall be an amount expressed in      present value which maximizes the aggregate present value of Agreement      Payments without causing any Payment to be nondeductible by the Company      because of Section 280G of the Code.  For purposes of this      Section 9 present value shall be determined in accordance with Section      280G(d)(4) of the Code. |
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|   | (b) | All      determinations required to be made under this Section 9 shall be made by      the independent registered public accounting firm retained by the      Company immediately prior to the Effective Date (the “Accounting Firm”)      which shall provide detailed supporting calculations both to the Company      and the Company shall elect which and how much of the Agreement Payments      shall be eliminated or reduced consistent with the requirements of this      Section 9 and shall notify the Executive promptly of such      election.  Within five business days thereafter, the Company      shall pay to or distribute to or for the benefit of the Executive such      amounts as are then due to the Executive under this    Agreement. |
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|   | (c) | As      a result of the uncertainty in the application of Section 280G of the Code      at the time of the initial determination by the Accounting Firm hereunder,      it is possible that Agreement Payments will have been made by the Company      which should not have been made (“Overpayment”) or that additional      Agreement Payments which will have not been made by the Company could have      been made (“Underpayment”), in each case, consistent with the calculations      required to be made hereunder.  In the event that the Accounting      Firm determines that an Overpayment has been made, any such Overpayment      shall be treated for all purposes as a loan to the Executive which the      Executive shall repay to the Company together with interest at the      Applicable Federal Rate provided for in Section 7872(f)(2) of the Code;      provided, however, that no amount shall be payable by the Executive to the      Company (or if paid by the Executive to the Company shall be returned to      the Executive) if and to the extent such payment would not reduce the      amount which is subject to taxation under Section 4999 of the      Code.  In the event that the Accounting Firm determines that an      Underpayment has occurred, any such Underpayment shall be promptly paid by      the Company to or for the benefit of the Executive together with interest      at the Applicable Federal Rate provided for in Section 7872(f)(2) of the      Code. |
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|   | 13. | Successors. |
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|   | (a) | This      Agreement is personal to the Executive and without the prior written      consent of the Company shall not be assigned by the Executive otherwise      than by will or the laws of descent and distribution.  This      Agreement shall inure to the benefit of and be enforceable by the      Executive’s legal representative. |
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|   | (b) | This      Agreement shall inure to the benefit of and be binding upon the Company      and its successors and assigns. |
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|   | (c) | The      Company will require any successor (whether direct or indirect, by      purchase, merger, consolidation or otherwise) to all or substantially all      of the business and/or assets of the Company to assume expressly and agree      to perform this Agreement in the same manner and to the same extent that      the Company would be required to perform it if no such succession had      taken place.  As used in this Agreement, “Company” shall mean      Forest Laboratories, Inc. with respect to the period prior to the      Effective Date and Forest Laboratories, Inc. or any successor to its      business and/or assets for the period on or after the Effective      Date. |
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|   | 14. | Miscellaneous. |
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|   | (a) | This      Agreement shall be governed by and construed in accordance with the laws      of the State of New York, without reference to principles of conflict of      laws.  The captions of this Agreement are not part of the      provisions hereof and shall have no force or effect.  This      Agreement may not be amended or modified otherwise than by a written      agreement executed by the parties hereto or their respective successors      and legal representatives. |
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|   | (b) | All      notices and other communications hereunder shall be in writing and shall      be given by hand delivery to the other party or by registered or certified      mail, return receipt requested, postage prepaid, addressed as      follows: |
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|   | (c) | The      invalidity or unenforceability of any provision of this Agreement shall      not affect the validity or enforceability of any other provision of this      Agreement. |
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|   | (d) | The      Company may withhold from any amounts payable under this Agreement such      Federal, state, local or foreign taxes as shall be required to be withheld      pursuant to any applicable law orregulation. |
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|   | (e) | The      Executive’s or the Company’s failure to insist upon strict compliance with      any provision of this Agreement or the failure to assert any right the      Executive or the Company may have hereunder shall not be deemed to be a      waiver of such provision or right or any other provision or right of this      Agreement. |
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|   | (f) | The      Executive and the Company acknowledge that, except as may otherwise be      provided under any written agreement between the Executive and the      Company, the employment of the Executive by the Company is “at will” and,      subject to Sections 1(a) and 6(a) hereof, prior to the Effective Date, the      Executive’s employment and/or this Agreement may be terminated by either      the Executive or the Company at any time prior to the Effective Date, in      which case the Executive shall have no further rights under this      Agreement.  From and after the Effective Date this Agreement      shall supersede any other agreement between the parties with respect to      the subject matter hereof, including but not limited to any Offer Letter      between the Company and the Executive and any right of the Executive to      continuation or severance benefitsthereunder. |
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|   | (g) | The      date for payments payable under this Agreement or the Offer Letter shall      be determined in accordance with the terms of this Agreement or the Offer      Letter, as applicable, and shall not be subject to direct or indirect      designation by the Executive. |
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|   | (h) | Each      payment under this Agreement shall be treated as a separate payment for      purposes of Code Section 409A. |
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|   | 15. | Amendments to the      Offer Letter. |
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|   | (a) | The      fifth paragraph of the Offer Letter dated August 8, 2008 by and between      the Executive and the Company is hereby replaced with the following three      paragraphs: |
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|   | "Pursuant      to this agreement, if your employment by Forest is terminated by Forest      'Without Cause' or you terminate your employment 'for Good Reason' (as      such terms are defined in the Amended and Restated Employment Agreement      between you and the Company dated as of October 29, 2008), then commencing      upon such termination of employment (but subject to the limitation of the      next paragraph), Forest will provide you with semi-monthly payments of      your then current Base Salary for the remainder of the three-year period      that commenced as of your start date (the 'Three-Year Period’) or, if      longer, for a one-year period following your termination of employment      (the longer of such periods to be referred to as the 'Salary Continuation      Period').  You will also be entitled to receive a bonus for the      year in which the termination of your employment occurs (which bonus will      be determined with respect to the calendar or fiscal year with respect to      which Forest then computes bonuses to employees generally) equal to the      greater of the last bonus that you received from Forest or 30% of your      salary target.  The bonus will be payable to you as soon as      practicable but within 21⁄2 months after the end of the year for which it is      paid.  You agree to be reasonably available to management for      consultation during the Salary Continuation Period, subject to your      availability, it being understood that you will not be required to perform      such consultation for any specified minimum number of      hours.  Further, Forest will continue health care coverage      (medical and dental) for you and any eligible family members for the      Salary Continuation Period or until alternate coverage is obtained by you,      whichever is earlier.  Such continued health care coverage will      be on the same terms and conditions and at the same cost as for active      senior executive officers ofForest. |
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|   | In      the event that the Company has securities which are publicly traded on an      ‘established securities market’ and you are a 'specified employee,' in      each case within the meaning of Section 409A of the Internal Revenue Code      of 1986, as amended (the 'Code'), as of the date your employment      terminates, then the Base Salary and bonus payment to be paid to you in      accordance with the provisions of the preceding paragraph of this      Agreement during the period that ends six months from the date of the      termination of your employment shall not exceed the sum of (A) two times      the lesser of (i) your annualized Base Salary for the year in which      your termination of employment occurs, or (ii) the amount described in      Section 401(a)(17) of the Code for the calendar year in which your      employment terminates, plus (B) the applicable dollar amount under Section      402(g)(1)(B) of the Code for the calendar year in which your employment      terminates (collectively, the 'Payment Limitation') and any amount payable      to you in accordance with the provisions of the preceding paragraph during      such six-month period in excess of the Payment Limitation shall be paid to      you, without interest, on the date that is six months plus one day after      the date of your employment termination.  The provisions of this      paragraph shall apply only in the event and to the extent necessary to      prevent the imposition of any accelerated or additional tax under Section      409A of the Code.  Each payment under this agreement shall be      treated as a separate payment for purposes of Code Section      409A. |
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|   | Notwithstanding      a termination of your employment by Forest 'Without Cause' or by you 'for      Good Reason' during the Three-Year Period, nothing set forth herein shall      cause the acceleration of the vesting of any Forest stock options owned by      you.  Any Forest stock options owned by you at the time of such      termination of employment will continue to vest (in accordance with the      vesting schedule to which those options were subject) and will remain      exercisable during the Three-Year Period, notwithstanding anything in the      option agreement to the contrary; provided however that nothing herein      shall extend the term of such options beyond the term set forth in your      related option agreement." |
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