Document:

endo_ex10-1.htm

    
      Exhibit
        10.1

       

      ENDO
        PHARMACEUTICALS HOLDINGS INC.

      

      EXECUTIVE
        DEFERRED COMPENSATION PLAN

      

      (Effective
        January 1, 2008)

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      ENDO
        PHARMACEUTICALS HOLDINGS INC.

       EXECUTIVE
        DEFERRED COMPENSATION PLAN

      

      

      
        	
                ARTICLE
                  I

              	
                INTRODUCTION

              	 	
                1

              
	 	
                1.1.

              	
                Purpose

              	
                1

              
	 	
                1.2.

              	
                Effective
                  Date

              	
                1

              
	 	
                1.3.

              	
                Type
                  of Plan

              	
                1

              
	 	 	 	 
	
                ARTICLE
                  II

              	
                DEFINITIONS

              	 	
                2

              
	 	
                2.1.

              	
                “Account”

              	
                2

              
	 	
                2.2.

              	
                “Administrator”

              	
                2

              
	 	
                2.3.

              	
                “Affiliate”

              	
                2

              
	 	
                2.4.

              	
                “Base
                  Salary”

              	
                2

              
	 	
                2.5.

              	
                “Beneficiary”

              	
                2

              
	 	
                2.6.

              	
                “Board”

              	
                2

              
	 	
                2.7.

              	
                “Change
                  in Control”

              	
                2

              
	 	
                2.8.

              	
                “Code”

              	
                3

              
	 	
                2.9.

              	
                “Committee”

              	
                3

              
	 	
                2.10.

              	
                “Company”

              	
                3

              
	 	
                2.11.

              	
                “Company
                  Stock”

              	
                3

              
	 	
                2.12.

              	
                “Deferrable
                  Compensation”

              	
                3

              
	 	
                2.13.

              	
                “Deferral
                  Period”

              	
                3

              
	 	
                2.14.

              	
                “Election
                  Form”

              	
                4

              
	 	
                2.15.

              	
                “Eligible
                  Employee”

              	
                4

              
	 	
                2.16.

              	
                “Employee”

              	
                4

              
	 	
                2.17.

              	
                “Employer”

              	
                4

              
	 	
                2.18.

              	
                “ERISA”

              	
                4

              
	 	
                2.19.

              	
                “Fair
                  Market Value”

              	
                4

              
	 	
                2.20.

              	
                “Incentive
                  Compensation”

              	
                4

              
	 	
                2.21.

              	
                “Installment
                  Payment”

              	
                4

              
	 	
                2.22.

              	
                “Leave
                  of Absence”

              	
                5

              
	 	
                2.23.

              	
                “Lump
                  Sum Payment”

              	
                5

              
	 	
                2.24.

              	
                “Participant”

              	
                5

              
	 	
                2.25.

              	
                “Payment
                  Date”

              	
                5

              
	 	
                2.26.

              	
                “Performance-Based
                  Compensation”

              	
                5

              
	 	
                2.27.

              	
                “Plan”

              	
                5

              
	 	
                2.28.

              	
                “Plan
                  Year”

              	
                5

              
	 	
                2.29.

              	
                “Restricted
                  Stock Unit”

              	
                5

              
	 	
                2.30.

              	
                “Specified
                  Employee”

              	
                5

              
	 	
                2.31.

              	
                “Termination
                  of Employment”

              	
                6

              
	 	
                2.32.

              	
                “Unforeseeable
                  Emergency”

              	
                6

              
	 	 	 	 
	
                ARTICLE
                  III

              	
                PARTICIPATION
                  BY ELIGIBLE EMPLOYEES

              	
                7

              
	 	
                3.1.

              	
                Participation

              	
                7

              
	 	
                3.2.

              	
                Cessation
                  of Participation

              	
                7

              

      

       

       

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

      
 

      
        	 	
                3.3.

              	
                Ineligible
                  Status

              	
                7

              
	 	 	 	 
	
                ARTICLE
                  IV

              	
                PARTICIPANT
                  DEFERRALS

              	
                 

              	
                 8

              
	 	
                4.1.

              	
                Deferral
                  Elections -
                  General

              	
                8

              
	 	
                4.2.

              	
                First
                  Year of Eligibility

              	
                8

              
	 	
                4.3.

              	
                Deferral
                  of Incentive Compensation

              	
                8

              
	 	
                4.4.

              	
                Deferral
                  of Restricted Stock Units

              	
                8

              
	 	
                4.5.

              	
                Cessation
                  of Deferral Elections

              	
                9

              
	 	
                4.6.

              	
                Changes
                  to Deferral Elections

              	
                9

              
	 	 	 	 
	
                ARTICLE
                  V

              	
                DISTRIBUTIONS

              	 	
                10

              
	 	
                5.1.

              	
                Time
                  of Payment

              	
                10

              
	 	
                5.2.

              	
                Form
                  of Payment

              	
                10

              
	 	
                5.3.

              	
                Permissible
                  Distribution

              	
                10

              
	 	
                5.4.

              	
                Permissible
                  Acceleration of Payment

              	
                11

              
	 	
                5.5.

              	
                Permissible
                  Delay of Payment

              	
                12

              
	 	
                5.6.

              	
                Payment
                  Deemed Timely

              	
                13

              
	 	
                5.7.

              	
                Valuation
                  of Distributions

              	
                13

              
	 	 	 	 
	
                ARTICLE
                  VI

              	
                ACCOUNTS

              	 	
                14

              
	 	
                6.1.

              	
                Account

              	
                14

              
	 	
                6.2.

              	
                Crediting
                  of Earnings on Non-Stock Compensation

              	
                14

              
	 	
                6.3.

              	
                Crediting
                  of Earnings on Restricted Stock Units

              	
                14

              
	 	
                6.4.

              	
                Statement
                  of Account

              	
                15

              
	 	
                6.5.

              	
                Vesting

              	
                15

              
	 	 	 	 
	
                ARTICLE
                  VII

              	
                FUNDING
                  AND PARTICIPANTS INTEREST

              	
                16

              
	 	
                7.1.

              	
                Plan
                  Unfunded

              	
                16

              
	 	
                7.2.

              	
                Establishment
                  of Grantor Trust

              	
                16

              
	 	
                7.3.

              	
                Participants’
                  Interest in Plan

              	
                16

              
	 	 	 	 
	
                ARTICLE
                  VIII

              	
                ADMINISTRATION
                  AND INTERPRETATION

              	
                17

              
	 	
                8.1.

              	
                Administration

              	
                17

              
	 	
                8.2.

              	
                Interpretation

              	
                17

              
	 	
                8.3.

              	
                Records
                  and Reports

              	
                17

              
	 	
                8.4.

              	
                Payment
                  of Expenses

              	
                17

              
	 	
                8.5.

              	
                Indemnification
                  for Liability

              	
                17

              
	 	
                8.6.

              	
                Claims
                  Procedure

              	
                17

              
	 	
                8.7.

              	
                Review
                  Procedure

              	
                18

              
	 	
                8.8.

              	
                Legal
                  Claims

              	
                18

              
	 	
                8.9.

              	
                Participant
                  and Beneficiary Information

              	
                18

              
	 	 	 	 
	
                ARTICLE
                  IX

              	
                AMENDMENT
                  AND TERMINATION

              	
                19

              
	 	
                9.1.

              	
                Amendment

              	
                19

              
	 	
                9.2.

              	
                Termination
                  of Plan

              	
                19

              

      

       

       

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

      
 

      
        	 	 	 	 
	
                ARTICLE
                  X

              	
                MISCELLANEOUS
                  PROVISIONS

              	
                21

              
	 	
                10.1.

              	
                Right
                  of Employer to Take Employment Actions

              	
                21

              
	 	
                10.2.

              	
                Alienation
                  or Assignment of Benefits

              	
                21

              
	 	
                10.3.

              	
                Company’s
                  Protection

              	
                21

              
	 	
                10.4.

              	
                Construction

              	
                21

              
	 	
                10.5.

              	
                Headings

              	
                21

              
	 	
                10.6.

              	
                Number
                  and Gender

              	
                21

              
	 	
                10.7.

              	
                Right
                  to Withhold

              	
                21

              

      

    

     

     

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

     

    
      ENDO
        PHARMACEUTICALS HOLDINGS INC.

       EXECUTIVE
        DEFERRED COMPENSATION PLAN

      (Effective
        January 1, 2008)

      

      ARTICLE
        I

      INTRODUCTION

       

      

      1.1.           Purpose.  The
        purpose of the Plan is to promote the interests of the Company and the
        stockholders of the Company by providing Executives the opportunity to defer
        incentive compensation and restricted stock units.

      

      1.2.           Effective
        Date.  The effective date of the Plan is January 1,
        2008.

      

      1.3           Type
        of Plan.  The Plan is intended to be an unfunded plan of
        non-qualified deferred compensation established for a select group of management
        or highly compensated Employees that meets the requirements of Code Section
        409A.  In the event that any provision of the Plan is inconsistent
        with Code Section 409A, the applicable provisions of Code Section 409A shall
        be
        deemed to automatically supersede such inconsistent provision and the Plan
        shall
        be administered to comply with Code Section 409A.

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

       

      ARTICLE
        II

      DEFINITIONS

      

      

      Where
        used in the Plan, the following initially capitalized words and terms shall
        have
        the meanings specified below, unless the context clearly indicates to the
        contrary:

      

      2.1.      “Account”
        means the recordkeeping account established by the Administrator for each
        Participant to which Deferrable Compensation, and earnings thereon, are credited
        in accordance with Article VI of the Plan.  An Account may consist of
        one or more sub-accounts established by the Administrator, as deemed necessary
        for efficient operation of the Plan.

      

      2.2.      “Administrator”
        means the Committee or such individuals or entity designated by the Committee
        to
        administer the Plan.

      

      2.3.      “Affiliate”
        means an entity, more than fifty percent (50%) of the total voting power
        of
        which is owned, directly or indirectly, by the Company.

      

      2.4.      “Base
        Salary” means the annual rate of base salary paid by the Employer or an
        Affiliate to a Participant, determined before reduction for compensation
        deferred pursuant to this Plan or any other plan of deferred compensation
        maintained by the Employer or an Affiliate, including but not limited to
        any
        such plan maintained in accordance with Code Section 401(k), 125, or 132(f),
        as
        determined by the Administrator.

      

      2.5.      “Beneficiary”
        means such person(s) or legal entity that is designated by a Participant
        under
        Section 8.9 to receive benefits hereunder after such Participant’s
        death.

      

      2.6.      “Board”
        means the board of directors of the Company.

      

      2.7.      “Change
        in Control” means and shall be deemed to occur upon a Change in Ownership, a
        Change in Effective Control, or a Change in Ownership of Substantial
        Assets.  For this purpose:

      

      (i)           A
        “Change in Ownership” means that a person or group acquires more than fifty
        percent (50%) of the aggregate fair market value or voting power of the capital
        stock of the Company, including for this purpose capital stock previously
        acquired by such person or group; provided, however, that a Change in Ownership
        shall not be deemed to occur hereunder if, at the time of any such acquisition,
        such person or group owns more than fifty percent (50%) of the aggregate
        fair
        market value or voting power of the Company’s capital stock.

      

      (ii)           A
        “Change in Effective Control” means that (a) a person or group acquires (or has
        acquired during the immediately preceding twelve (12)-month period 

       

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

         

         

        ending
          on the date of the most recent acquisition by such person or group) ownership
          of
          the capital stock of the Company possessing thirty percent (30%) or more
          of the
          total voting power of the Company, or (b) a majority of the members of
          the Board
          of the Company is replaced during any twelve (12)-month period, whether
          by
          appointment or election, without endorsement by a majority of the members
          of the
          Board prior to the date of such appointment or election.

      

      

      (iii)           A
        “Change in Ownership of Substantial Assets” means that any person or group
        acquires (or has acquired during the immediately preceding twelve (12)-month
        period ending on the date of the most recent acquisition) assets of the Company
        with an aggregate gross fair market value of not less than forty percent
        (40%)
        of the aggregate gross fair market value of the assets of the Company
        immediately prior to such acquisition.  For this purpose, gross fair
        market value shall mean the fair value of the affected assets determined
        without
        regard to any liabilities associated with such assets.

      

      The
        Board shall determine whether a Change in Control has occurred hereunder
        in a
        manner consistent with the provisions of Code Section 409A and the regulations
        and applicable guidance promulgated thereunder.

      

      2.8.      “Code”
        means the Internal Revenue Code of 1986, as amended from time to time, and
        any
        regulations and applicable guidance promulgated
        thereunder.  References in the Plan to specific sections of the Code
        shall be deemed to include any successor provisions thereto.

      

      2.9.      “Committee”
        means the  committee appointed by the Board, which shall consist of
        two or more persons, each of whom, unless otherwise determined by the Board,
        is
        an “outside director” within the meaning of Code  Section 162(m) and a
“non-employee director” within the meaning of Rule 16b-3.

      

      2.10.    “Company”
        means Endo Pharmaceuticals Holdings Inc., a Delaware corporation.

      

      2.11.    “Company
        Stock” means the common stock of the Company, par value $0.1 per
        share.

      

      2.12.    “Deferrable
        Compensation” means fifty percent (50%) of a Participant’s Incentive
        Compensation and 100% of a Participant’s Restricted Stock Units that would be
        payable to a Participant during a Plan Year but for the Participant’s election
        to defer such Deferrable Compensation on his or her Election Form in accordance
        with Article IV of this Plan.  Deferrable Compensation shall not
        include any compensation payable to the Participant that is designated by
        the
        Administrator as Base Salary.

      

      2.13.    “Deferral
        Period” means the period of deferral elected by the Participant on his or her
        Election Form for the payment of his or her Account, which period shall be
        a
        period of whole years that is no less than two (2) years and no more than
        ten
        (10) years measured from January 1 of the Plan Year in which the Incentive
        Compensation otherwise would have been paid or the Restricted Stock Unit
        granted
        but for the deferral 

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

         

        under
          this Plan.

      

      

      2.14.    “Election
        Form” means such document(s) or form(s), which may be electronic, as prescribed
        and made available from time to time by the Administrator, whereby an Eligible
        Employee enrolls in the Plan as a Participant , elects to defer Deferrable
        Compensation pursuant to Article IV of this Plan, and/or makes investment
        elections pursuant to Section 6.2 of the Plan.

      

      2.15.    “Eligible
        Employee” means an Employee designated by the Committee as eligible to
        participate in the Plan.  Initially, Eligible Employees are limited to
        Employees whose total annual rate of Base Salary and target incentive
        compensation at the time of the deferral election exceed the indexed limit
        under Code
        Section 401(a)(17), as determined by the
        Committee.  Notwithstanding the foregoing, the Committee, in its sole
        discretion, may establish such other eligibility criteria as it deems desirable
        from time to time.

      

      2.16.    “Employee”
        means a common law employee of the Employer.

      

      2.17.    “Employer”
        means the Company, and any Affiliate that has been approved by the Board
        as a
        participating Employer under the Plan.

      

      2.18     “ERISA”
        means the Employee Retirement Income Security Act of 1974, as
        amended.

      

      2.19.    “Fair
        Market Value” means  (determined as of the applicable distribution or
        valuation date hereunder) (i) the closing sales price per share of Company
        Stock
        on the national securities exchange on which such stock is principally traded
        on
        the last preceding date on which there was a sale of such stock on such
        exchange, or (ii) if the shares of Company Stock are not listed or admitted
        to
        trading on any such exchange, the closing price as reported by the NASDAQ
        Stock
        Market for the last preceding date on which there was a sale of such stock
        on
        such exchange, or (iii) if the shares of Company Stock are not then listed
        on a
        national securities exchange or traded in an over-the-counter market or the
        value of such shares is not otherwise determinable, such value as determined
        by
        the Committee in good faith upon the advice of a qualified valuation
        expert.

      

      2.20.    “Incentive
        Compensation” means a bonus or incentive award provided by the Employer for a
        calendar year that is not part of a Participant’s Base Salary and that qualifies
        as Performance-Based Compensation.

      

      2.21.    “Installment
        Payment” means a series of substantially equal annual payments of the
        Participant’s Account paid over a period ranging from two (2) whole years to ten
        (10) whole years, as elected by the Participant, commencing as of the applicable
        payment date under the plan.  For purposes of Section 4.6, an
        Installment Payment is treated as a single payment.

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      
 

      2.22.    “Leave
        of Absence” means a military, sick, or other bona fide leave of absence provided
        that such leave does not exceed six (6) months, or if longer, continues so
        long
        as the Participant has a right to reemployment with the Employer and there
        is a
        reasonable expectation that the Participant will return to such
        employment.  A Leave of Absence is deemed to terminate on the first
        date immediately following the end of the six-month period, or the date on
        with
        the Participant no longer has any right or expectation to return to employment,
        whichever is later.

      

      2.23.    “Lump
        Sum Payment” means a single sum distribution of the entire value of a
        Participant’s Account.

      

      2.24.    “Participant”
        means any Eligible Employee who defers Deferrable Compensation to this Plan
        by
        filing an Election Form and for whom an Account is maintained under the
        Plan.

      

      2.25.    “Payment
        Date” means January 1 of the calendar year next following expiration of the
        Deferral Period elected by the Participant.

      

      2.26.    “Performance-Based
        Compensation” means performance-based compensation within the meaning Section
        409A of the Code that is paid solely on account of the attainment of one
        or more
        objective Employer or Participant performance goals established in writing
        by
        the Committee not later than ninety (90) days after the commencement of the
        twelve (12)-month period of service to which it relates and that is not readily
        ascertainable within the meaning of Code Section 409A.

      

      2.27.    “Plan”
        means the Endo Pharmaceuticals Holdings Inc. Executive Deferred Compensation
        Plan.

      

      2.28.    “Plan
        Year” means the calendar year.

      

      2.29.    “Restricted
        Stock Unit” means a unit representing a share of Company Stock that has been
        granted to a Participant pursuant to the terms of a separate agreement or
        plan
        maintained by the Company or an Affiliate, and that is subject to a vesting
        schedule or other substantial risk of forfeiture.

      

      2.30     “Specified
        Employee” means a Participant who is determined to be a “specified employee”
within the meaning of Code Section 409A with respect to a Termination of
        Employment occurring in any twelve (12)-month period commencing on April 1
        based on the Participant’s compensation with the Employer, as defined in Code
        Section 416(i)(1)(D), and his or her status at the end of the immediately
        preceding Plan Year.  For purposes of the determining whether a
        Participant is classified as a Specified Employee, compensation from
        a  nonresident alien’s gross income under
        Section 1.415(c)-2(g)(5)(ii) on account of the location of the services or
        the identify of an Employer that is not effectively connected with the conduct
        of a trade or business within the United States shall be excluded.

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      
 

      2.31     “Termination
        of Employment” means the date the Participant ceases to be an Employee on
        account of a voluntary or involuntary separation from service with the Company
        and all Affiliates, within the meaning of Code Section 409A, for any reason
        other than death.  Notwithstanding the foregoing, a Termination of
        Employment shall not be deemed to occur so long as the Participant is on
        a Leave
        of Absence or the Participant continues to perform services for the Company
        or
        an Affiliate at a level in excess of 20% of the level of services performed
        by
        the Participant during the 36-month period (or the Employee’s full period of
        service if the Employee has worked less than 36 months) immediately preceding
        the date of separation from service.

      

      2.32     “Unforeseeable
        Emergency” means with respect to a Participant, his or her spouse, dependents
        (as defined in Code Section 152, without regard to Sections 152(b)(1), (b)(2),
        and (d)(1)(B)) or Beneficiary, a non-reimbursable severe financial hardship
        attributable to (i) a sudden and unexpected illness or accident or (ii) funeral
        expenses, and also means with respect to the Participant (i) a property loss
        due
        to casualty that is not otherwise covered by insurance, (ii) imminent
        foreclosure or eviction from the Participant’s primary residence, or (iii) a
        similar extraordinary and unforeseeable circumstance beyond the control of
        the
        Participant, as determined by the Administrator.  For purposes of this
        Plan, the purchase of a home and the payment of college tuition are not
        Unforeseeable Emergencies.

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      
 

      

      ARTICLE
        III

      PARTICIPATION
        BY ELIGIBLE EMPLOYEES

      

      

      3.1.      Participation.  Participation
        in this Plan is voluntary and is limited to Eligible Employees who file Election
        Forms in accordance with Article IV.

      

      3.2.      Cessation
        of Participation.  Once an Employee is designated by the Committee
        as an Eligible Employee, such Eligible Employee shall remain eligible to
        file
        deferral elections under the Plan until the earlier of (i) the date the
        Committee informs the Eligible Employee that he or she is no longer eligible
        to
        participate in the Plan, i.e., “Ineligible Status,” or (ii) the date such
        Eligible Employee incurs a Termination of Employment.

      

      3.3.      Ineligible
        Status.  If the Committee determines that a Participant ceases to
        qualify as an Eligible Employee, effective as of the date of such determination,
        said ineligible Participant shall no longer be eligible to file deferral
        elections under the Plan.  The Account of an ineligible Participant
        shall be paid in accordance with Sections 5.1 and 5.2 of the Plan, except
        to the
        extent all or part of such Account is eligible for distribution of accelerated
        payment as permitted in Sections 5.3 and 5.4.

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        IV

      PARTICIPANT
        DEFERRALS

      

      

      4.1.      Deferral
        Elections – General.  A Participant’s deferral election for a Plan
        Year is irrevocable for such Plan Year; except to the extent a cessation
        of
        deferrals hereunder is required under Section 4.5.  Amounts deferred
        under the Plan shall not be distributed to a Participant except as expressly
        provided in Article V or as otherwise permitted under Code Section
        409A.  A deferral election hereunder shall be made on an Election Form
        and comply with the applicable requirements of this Article IV.  A
        Participant’s initial deferral election under the Plan shall designate: (i) the
        amount of Deferrable Compensation that is being deferred, (ii) the time of
        the
        distribution (as permitted in Section 5.1(a)), and (iii) the form of
        distribution (as permitted in Section 5.2(a)).  Once effective under
        the Plan, a Participant’s deferral election shall remain in effect under the
        Plan until it is terminated by operation of the Plan or changed by the
        Participant in accordance with Section 4.6 herein.  The Administrator
        may establish procedures for deferral elections as it deems necessary to
        comply
        with the requirements of this Article IV and Code Section 409A.

      

      4.2.      First
        Year of Eligibility.  Notwithstanding the timing requirements of
        Sections 4.3 and 4.4, an Eligible Employee may elect to defer Deferrable
        Compensation by completing and executing an Election Form that specifies
        the
        amount or percentage of compensation to be deferred within the thirty (30)
        day
        period immediately following the date he or she first becomes an Eligible
        Employee, provided, that the compensation deferred relates to services performed
        after the date of such election.

      

      4.3.      Deferral
        of Incentive Compensation.  An Eligible Employee may elect to
        defer Deferrable Compensation that is Incentive Compensation by completing
        and
        executing an Election Form that specifies the amount  or percentage of
        Incentive Compensation to be deferred and filing it with the Administrator
        before expiration of the election period establish by the Administrator,
        which
        period shall end no later than June 30 of the calendar year during which
        the Incentive Compensation is earned, provided that (i) as of the date of
        such
        deferral election the Eligible Employee has performed services continuously
        from
        the later of the beginning of said calendar year or the date the performance
        criteria for said calendar year are established by the Committee.

      

      4.4.      Deferral
        of Restricted Stock Units.  An Eligible Employee may elect to
        defer Restricted Stock Units to the Plan by completing and executing an Election
        Form that specifies the amount or percentage of Restricted Stock Units to
        be
        deferred and filing it with the Administrator on or before expiration
        of  the election period established by the Administrator, which period
        shall (i) for purposes of the Plan Year beginning January 1, 2008, end no
        later
        than December 31, 2007, (ii) for purposes of the Plan Year beginning January
        1,
        2009, end no later than December 31, 2008, and (iii) for all subsequent Plan
        Years end no later than December 31 of the calendar year ending before the
        Plan
        Year that precedes the Plan Year in which such Restricted Stock Units are
        granted.

       

       

      
        
          
          

        

        
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      4.5.      Cessation
        of Deferral Elections.  To the extent provided for under Code
        Section 409A or under the terms of a Code Section 401(k) plan maintained
        by the
        Employer, a Participant’s deferral election(s) in effect under the Plan for a
        Plan Year in which a Participant is granted an Unforeseeable Emergency
        distribution in accordance with Section 5.3(b) hereof or a hardship
        distribution under such Code Section 401(k) plan may be terminated by the
        Administrator, effective as soon as practicable following the grant of such
        hardship or emergency distribution.  If a Participant’s deferral
        elections under the Plan are terminated in accordance with the foregoing
        sentence, such Participant shall be ineligible to make deferrals of compensation
        to the Plan, and all other plans maintained by the Company or an Affiliate,
        for
        the six (6) month period following his or her receipt of the hardship or
        emergency distribution.  Subject to the foregoing six-month
        limitation, the Participant may make new deferral elections for Deferrable
        Compensation payable in subsequent Plan Years in accordance with this Article
        IV.

      

      4.6.      Changes
        to Deferral Elections.  A Participant shall be permitted to elect
        to change the form of payment or Deferral Period relating to the distribution
        of
        his or her Account to the extent permitted by the Administrator and in
        accordance with the requirements of Code Section 409A(a)(4)(C), including
        the
        requirements that such redeferral election (a) may not take effect until
        at
        least twelve (12) months after such redeferral election is filed with the
        Administrator; (b) must result in the first distribution subject to the
        redeferral election being made at least five (5) years after the Payment
        Date
        relating to the previously elected Deferral Period; and (c) must be filed
        with
        the Administrator at least twelve (12) months before the first scheduled
        Payment
        Date under the previous Deferral Period.

      

       

       

      
        
          
          

        

        
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      ARTICLE
        V

      DISTRIBUTIONS

      

      

      5.1.      Time
        of Payment.

      

      a.           Except
        as otherwise provided under the Plan, a Participant’s Account shall be paid on
        the earlier of the Payment Date relating to the Deferral Period elected by
        the
        Participant or upon Termination of Employment, as specified by the Participant
        on his or her Election Form.

      

      b.           In
        the absence of Participant’s election as to the time of payment, as permitted
        under subsection a, above, a Participant’s Account shall be distributed upon
        Termination of Employment.

      

      c.           For
        purposes of Sections 5.1(a) and (b), a payment upon Termination of Employment
        shall be made on the first (1st) day of the calendar month next following
        the
        date of the Participant’s Termination of Employment, provided that with respect
        to a Specified Employee, a payment upon Termination of Employment shall not
        be
        made earlier than the date that is at least six (6) months after the date
        of
        such Specified Employee’s Termination of Employment.

      

      5.2.      Form
        of Payment.

      

      a.           Except
        as otherwise provided under the Plan, a Participant’s Account shall be paid as a
        Lump Sum Payment or an Installment Payment, as elected by the Participant
        on his
        or her Election Form.

      

      b.           In
        the absence of Participant’s election as to the form of payment, as permitted
        under subsection a, above, a Participant’s Account shall be distributed in the
        form of a Lump Sum Payment.

      

      5.3.      Permissible
        Distributions.  No distribution under the Plan shall be permitted
        except as set forth in this Section 5.3 or as otherwise permitted under the
        Plan and Code Section 409A(a)(2).

      

      a.           Change
        in Control.  Notwithstanding any provision of the Plan or
        Participant Election Form to the contrary, a Participant who incurs a
        Termination of Employment within the two (2) year period immediately following
        a
        Change in Control shall receive a Lump Sum Payment of his or her Account
        within
        thirty (30) days following the date of such Termination of
        Employment.

      

      b.           Unforeseeable
        Emergency.  If a Participant experiences an Unforeseeable
        Emergency, such Participant shall be permitted to withdraw all or a portion
        of
        his or her Account in the form of an immediate single-sum payment, subject
        to
        the limitations set forth below:

       

       

      
        
          
          

        

        
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      (i)           A
        request for withdrawal shall be made, in writing, and shall set forth the
        circumstances surrounding the Unforeseeable Emergency.  As a condition
        of and part of such request, the Participant shall provide to the Committee
        his
        or her written representation that (A) the hardship cannot be relieved by
        insurance or other reimbursement reasonably available to the Participant,
        (B)
        the hardship can only be relieved by liquidation of the Participant’s assets and
        any such liquidation would itself result in severe damage or injury to the
        Participant, (C) the Participant has no reasonable borrowing capacity to
        relieve
        the hardship, and (D) the hardship cannot be relieved by cessation of the
        Participant’s deferrals under the Plan. The Committee shall be entitled to
        request such additional information as may be reasonably required to determine
        whether an Unforeseeable Emergency exists and the amount of the hardship
        and to
        establish additional conditions precedent to the review or granting of a request
        for a withdrawal on account of an Unforeseeable Emergency.

      

      (ii)           If
        the Committee determines that an Unforeseeable Emergency exists, the Committee
        shall authorize the immediate distribution of the amount required to meet
        the
        financial need created by such Unforeseeable Emergency, including any taxes
        payable on such amount, and, if required, the cessation of the Participant’s
        deferrals to the Plan as permitted in Section 4.5.

      

      c.           Death
        Distribution.  Notwithstanding any provision of the Plan or
        Participant Election Form to the contrary, in the event of a Participant’s death
        before the complete distribution of his or her Account, the distribution
        of such
        Participant’s Account shall be made in a Lump Sum Payment to the Participant’s
        Beneficiary within sixty (60) days after the date of death.

      

      5.4       Permissible
        Acceleration of Payments.  No acceleration of time or schedule of
        payments under the Plan shall be permitted except as set forth in this Section
        5.4 or as otherwise permitted under the Plan and Code Section
        409A(a)(3).

      

      a.           Right
        of Offset.  If a Participant is indebted to the Employer, then the
        Administrator, in its discretion, may accelerate a payment hereunder or withhold
        the amount of such indebtedness from any distribution to be made to the
        Participant, his or her Beneficiary or both, provided that (i) such debt
        was
        incurred in the ordinary course of the employment relationship between the
        Employer and the Participant, (ii) the entire amount of reduction for a Plan
        Year does not exceed $5,000, and (iii) the reduction is made at the same
        time
        and in the same amount as the debt otherwise would have been due and collected
        from the Participant

      

      b.           Distribution
        for Taxes.  The Plan may accelerate payment of all or part of a
        Participant’s Account to pay or withhold state, local, or foreign tax
        obligations; taxes imposed under the Federal Insurance Contributions Act
        or the
        Railroad Retirement Act; and any related federal income tax thereon, arising
        from a Participant’s participation in the Plan.  Such payment of
        withholding must be limited to the amount necessary to fulfill such tax
        obligation.

       

       

      
        
          
          

        

        
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      c.           Small
        Payment.  Notwithstanding any provision of the Plan to the
        contrary, if the total value of a Participant’s Account or death benefit payable
        hereunder is not greater than the applicable dollar amount under Code Section
        402(g)(1)(B), and the Participant is not entitled to a benefit from any other
        plan that is required to be aggregated with this Plan pursuant to Treasury
        Regulation Section 1.409A-1(c)(2), the Administrator may distribute such
        amount
        to the Participant or Beneficiary in the form of a Lump Sum
        Payment.

      

      d.           Income
        Inclusion under 409A.  Notwithstanding any provision of the Plan
        to the contrary, in the event that the plan fails to meet the requirements
        of
        Code Section 409A, the Administrator may distribute to Participants the portion
        of their Accounts that is required to be included in income as a result of
        such
        failure.

      

      5.5.      Permissible
        Delay of Payment.  The Administrator may delay payment to a date
        after the designated payment date pursuant to any of the following
        circumstances, provided that payments to similarly situated Participants
        are
        made on a reasonably consistent basis.

      

      a.           Payments
        subject to Section 162(m).  All scheduled payments to a
        Participant may be delayed beyond the applicable distribution date under
        Section
        5.1 herein to the extent that the Employer reasonably anticipates that if
        all or
        a portion of a payment were made as scheduled, the Company or Employer’s
        deduction with respect to such payment would not be permitted due to the
        application of Code Section 162(m).  Any payment that is delayed
        pursuant to this Section 5.5(a), must be made either during the first calendar
        year in which the Employer reasonably anticipates, or should reasonably
        anticipate, that if the payment is made during such year, deduction of such
        payment will not be barred by application of Code Section 162(m), or during
        the
        period beginning with the date of the Participant’s Termination of Employment
        and ending on the later of the last day of the taxable year of the Employer
        year
        in which Termination of Employment occurs or the fifteenth (15th) day of
        the
        third (3rd) month following the Termination of Employment.

      

      b.           Payments
        that would violate federal securities laws or other applicable
        law.  A payment may be delayed where the Administrator reasonably
        anticipates that the making of the payment will violate federal securities
        laws
        or other applicable law, provided that the payment is made at the earliest
        date
        at which the Administrator reasonably anticipates that the making of the
        payment
        will not cause such violation.  For purposes of this Section 5.5(b),
        the making of a payment that would cause inclusion in gross income or the
        application of any penalty provision or other provision of the Code is not
        treated as a violation of applicable law.

      

      

      
        
          
          

        

        
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      5.6       Payment
        Deemed Timely.  A payment shall be treated as made upon the date
        specified under the Plan under the following circumstances:

      

      a.           If
        the payment is made at such date or a later date within the same calendar
        year
        or, if later, by the fifteenth (15th) day of the third calendar month following
        the date specified under the Plan.

      

      b.           If
        calculation of the amount of the payment is not administratively practicable
        due
        to events “beyond the control” of the Participant, or the Participant’s
        Beneficiary (as such phrase is defined under Code Section 409A), the payment
        will be treated as made upon the date specified under the Plan if the payment
        is
        made during the first calendar year in which the calculation of the amount
        of
        the payment is administratively practicable.

      

      c.           If
        the Employer fails to make a payment, in whole or in part, as of the date
        specified under the Plan, either intentionally or unintentionally, the payment
        will be treated as made upon the date specified under the Plan if (i) the
        Participant accepts the portion (if any) of the payment that the Employer
        is
        willing to make (unless such acceptance will result in a relinquishment of
        the
        claim to all or part of the remaining amount), (ii) if the Participant files
        claims pursuant to Sections 8.6 and 8.7 herein to collect the unpaid portion
        of
        the payment, and (iii) any further payment (including payment of a lesser
        amount
        that satisfies the Employer’s obligation to make the entire payment) is made no
        later than the end of the first calendar year in which the Employer and the
        Participant enter into a legally binding settlement of such dispute, the
        Employer concedes that the amount is payable, or the Employer is required
        to
        make such payment pursuant to a final and nonappealable judgment or other
        binding decision.

      

      5.7.      Valuation
        of Distributions.  All distributions under this Plan shall be
        based upon a daily valuation of the Participant’s Account or, where applicable,
        the Fair Market Value of the shares of Company Stock that relate to the
        Restricted Stock Units deferred under the Participant’s Account, as determined
        by the Administrator.

       

       

      
        
          
          

        

        
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      ARTICLE
        VI

      ACCOUNTS

      

      

      6.1.      Account.  The
        Administrator shall establish and maintain, or cause to be established and
        maintained, a separate Account for each Participant hereunder who executes
        an
        election pursuant to Article IV.  Each such Participant’s Deferrable
        Compensation deferred pursuant to a Election Form under Article IV shall
        be
        separately accounted for and credited with earnings or dividends, as applicable,
        for recordkeeping purposes only, to his or her Account.  A
        Participant’s Account shall be solely for the purposes of measuring the amounts
        to be paid under the Plan.  Except as provided in Article VII, the
        Company shall not be required to fund or secure a Participant’s Account in any
        way, the Company’s obligation to Participants hereunder being purely
        contractual.

      

      6.2.      Crediting
        of Earnings on Non-Stock Compensation.  Except as provided in
        Section 6.3, a Participant may hypothetically invest his Account in one or
        more
        investment alternatives made available by the Committee, and earnings or
        losses
        thereon shall be credited to the Participant’s Account in accordance with the
        valuation procedures under such investment alternatives.  The
        Participant shall make his or her investment elections, and changes thereto,
        on
        an Election Form in accordance with procedures established by the
        Administrator.  Unless the Committee determines otherwise, the
        investment alternatives available under the Plan shall mirror the alternatives
        that are made available under the Code Section 401(k) plan sponsored by the
        Company.

      

      6.3.      Crediting
        of Earnings on Restricted Stock Units.  The portion of a
        Participant’s Account attributable to Restricted Stock Units shall be deemed
        invested solely in stock equivalent units of Company Stock, shall be denominated
        in numbers of stock units, and shall be valued at any time as the stock
        equivalent units are credited to such Account multiplied by the then-Fair
        Market
        Value of the Company Stock.  Whenever a dividend is declared and
        payable on Company Stock, the number of such stock equivalent units in the
        Participant’s Account shall be increased by the following
        calculations:

      

      (i)           the
        number of units in the Participant’s Account multiplied by any cash dividend
        declared by the Company on a share of Company Stock, divided by the Fair
        Market
        Value determined as of the related dividend payment date; and/or

      

      (ii)           the
        number of units in the Participant’s Account on the related dividend payment
        date multiplied by any stock dividend declared by the Company on a share
        of
        Company Stock.

      

      In
        the
        event of any change in the number or kind of outstanding shares of Company
        Stock, including a stock split or splits (other than a stock dividend as
        provided above), an appropriate adjustment shall be made in the number of
        units
        credited to the Participant’s Account.

      
 

      
        
          
          

        

        
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      6.4       Statement
        of Account.  As soon as practicable after the end of each Plan
        Year (and at such additional times as the Administrator may determine), the
        Administrator shall furnish each Participant with a statement of the balance
        credited to the Participant’s Account.

      

      6.5.      Vesting.  A
        Participant is always one hundred percent (100%) vested in his or her
        Account.

    

     

     

    
      
        
        

      

      
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ARTICLE
      VII

    FUNDING
      AND PARTICIPANTS INTEREST

    

    

    7.1.      Plan
      Unfunded.  This Plan shall at all times be considered entirely
      unfunded for both federal and state income tax purposes and for purposes of
      Title I of ERISA, and no trust shall be created by or for the
      Plan.  The crediting to each Participant’s Account shall be made
      through recordkeeping entries.  No actual funds shall be set aside;
      provided, however, that nothing herein shall prevent the Company from
      establishing one or more grantor trusts that meet the requirements of IRS
      Revenue Procedure 92-64 from which benefits due under this Plan may be paid
      in
      certain instances

    

    7.2       Establishment
      of Grantor Trust.  Within fifteen (15) days following a Change in
      Control, the Company shall establish under the Plan a grantor trust that meet
      the requirements of IRS Revenue Procedure 92-64, and shall transfer assets
      to
      such trust in amounts sufficient to fully fund the Plan’s aggregate liability
      with respect to the Accounts under the Plan on and after the date of the Change
      in Control.

    

    7.3.      Participants’
      Interest in Plan.  Notwithstanding Section 7.2 or any other
      provision of the Plan, a Participant has an interest only in the value of the
      amount credited to his or her Account and has no rights or interests in the
      specific investment funds, stock, or securities in which his or her Account
      is
      hypothetically invested under the Plan.  All distributions shall be
      paid by the Employer from its general assets and a Participant (or his or her
      Beneficiary) shall have the rights of a general, unsecured creditor against
      the
      Company or the Employer for any distributions due hereunder.  The Plan
      constitutes a mere promise by the Company or the Employer to make benefit
      payments in the future.

     

     

    
      
        
        

      

      
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    ARTICLE
      VIII

    ADMINISTRATION
      AND INTERPRETATION

    

    

    8.1.      Administration.  The
      Administrator shall be in charge of the overall operation and administration
      of
      this Plan.  The Administrator has, to the extent appropriate and in
      addition to the powers described elsewhere in this Plan, full discretionary
      authority to construe and interpret the terms and provisions of the Plan; to
      adopt, alter and repeal administrative rules, guidelines and practices governing
      the Plan; to perform all acts, including the delegation of its administrative
      responsibilities to advisors or other persons who may or may not be Employees;
      and to rely upon the information or opinions of legal counselor experts selected
      to render advice with respect to the Plan, as it shall deem advisable, with
      respect to the administration of the Plan.

    

    8.2.      Interpretation.  The
      Administrator may take any action, correct any defect, supply any omission
      or
      reconcile any inconsistency in the Plan, or in any election hereunder, in the
      manner and to the extent it shall deem necessary to carry the Plan into effect
      or to carry out the Employer’s purposes in adopting the Plan.  Any
      decision, interpretation or other action made or taken in good faith by or
      at
      the direction of the Employer or the Administrator arising out of or in
      connection with the Plan, shall be within the absolute discretion of each of
      them, and shall be final, binding and conclusive on the Employer, and all
      Participants and Beneficiaries and their respective heirs, executors,
      administrators, successors and assigns.  The Administrator’s
      determinations hereunder need not be uniform, and may be made selectively among
      Eligible Employees, whether or not they are similarly situated.

    

    8.3.      Records
      and Reports.  The Administrator shall keep a record of proceedings
      and actions and shall maintain or cause to be maintained all such books of
      account, records, and other data as shall be necessary for the proper
      administration of the Plan.  Such records shall contain all relevant
      data pertaining to individual Participants and their rights under this
      Plan.  The Administrator shall have the duty to carry into effect all
      rights or benefits provided hereunder to the extent assets of the Employer
      are
      properly available.

    

    8.4.      Payment
      of Expenses.  The Employer shall bear all expenses incurred by the
      Administrator in administering this Plan.

    

    8.5.      Indemnification
      for Liability.  The Employer shall indemnify the Committee, the
      Administrator and the Employees to whom administrative duties have been
      delegated under this Plan, against any and all claims, losses, damages, expenses
      and liabilities arising from their responsibilities in connection with this
      Plan, unless the same is determined to be due to gross negligence or willful
      misconduct.

    

    8.6.      Claims
      Procedure.  Within ninety (90) days following the date payment was
      due in accordance with the terms of the Plan, the Participant or the
      Participant’s duly authorized representative (hereinafter, the “claimant”) may
      file a written 

     

     

    
      
        
        

      

      
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      request
        for payment with the Administrator.  If a claim for benefits under the
        Plan is denied in whole or in part, the claimant will receive written
        notification within forty-five (45) days following the date of such written
        request.  The notification will include specific reasons for the
        denial, specific reference to pertinent provisions of this Plan, a description
        of any additional material or information necessary to process the claim
        and why
        such material or information is necessary, and an explanation of the claims
        review procedure.  To the extent a Participant hereunder is a claimant
        and serves as an Administrator, he or she shall not participate in any
        determination relating to his or her claim, and the Committee or the Company
        may
        appoint an independent individual to take the place of such Participant for
        purposes of making such determination.

    

    

    8.7.      Review
      Procedure.  No later than one hundred and eighty (180) days
      following the date payment was due under the Plan, the claimant may file a
      written request with the Administrator for a review of his denied
      claim.  The claimant may review pertinent documents that were used in
      processing his claim, submit pertinent documents, and address issues and
      comments in writing to the Administrator.  The Administrator will
      notify the claimant of his or her final decision in writing.  In his
      or her response, the Administrator will explain the reason for the decision,
      with specific references to pertinent Plan provisions on which the decision
      was
      based.  To the extent a Participant hereunder is a claimant requesting
      a review and serves as an Administrator, he or she shall not participate in
      any
      determination relating to the review, and the Committee or the Company may
      appoint an independent individual to take the place of such Participant for
      purposes of making such determination.

    

    8.8.      Legal
      Claims.  In no event may a claimant commence legal action for
      benefits the claimant believes are due the claimant until the claimant has
      exhausted all of the remedies and procedures afforded the claimant by this
      Article VIII.  No such legal action may be commenced more than two (2)
      years after the date of the Administrator’s final review decision, described in
      Section 8.7 above.

    

    8.9.      Participant
      and Beneficiary Information.  Each Participant shall keep the
      Administrator informed of his or her current address and the current address
      of
      his or her designated beneficiary or beneficiaries.  A Participant may
      from time to time change his designated Beneficiary without the consent of
      such
      Beneficiary by filing a new designation in writing with the
      Administrator.  If no Beneficiary designation is in effect at the time
      of the Participant’s death, or if the designated Beneficiary is missing or has
      predeceased the Participant, distribution shall be made to the Participant’s
      surviving spouse, or if none, to his surviving children per stirpes, and if
      none, to his estate.  The Administrator shall not be obligated to
      search for any person.  If such person is not located within one year
      after the date on which payment of the Participant’s death benefit is payable
      under the Plan, payment shall be made to the Participant’s estate.

     

     

    
      
        
        

      

      
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    ARTICLE
      IX

    AMENDMENT
      AND TERMINATION

    

    

    9.1.      Amendment.  The
      Board shall have the right, at any time, to amend the Plan or discontinue
      deferrals under the Plan in whole or in part provided that such amendment or
      termination complies with Code Section 409A and does not adversely affect the
      right of any Participant or Beneficiary to a benefit or payment due under the
      Plan.  The Committee has the authority, without Board approval, to
      amend the Plan to comply with the requirements of Code Section 409A, modify
      the
      amount or type of compensation that qualifies as Deferrable Compensation, modify
      the classes of individuals eligible to participate in the Plan, and to change
      the investment alternatives offered under the Plan.  In addition, the
      Committee may make such changes to the Plan’s operation and administration as it
      deems to be in the best interest of the Plan.

    

    9.2       Termination
      of Plan.  The
      Board may take action to provide for the acceleration of
      the time and form of a payment, or a payment hereunder, where the acceleration
      of the payment is made pursuant to a termination and liquidation of the Plan
      in
      accordance with one of the following:

    

    a.           The
      termination and liquidation of the Plan pursuant to an irrevocable action taken
      within the thirty (30) days preceding or the twelve (12) months following a
      Change in Control, provided that all agreements, methods, programs, and other
      arrangements sponsored by the Company or a participating Affiliate immediately
      after the Change in Control event with respect to which deferrals of
      compensation that, together with the Plan, are treated as a single plan for
      purposes of Treasury Regulation Section 1.409A-1(c)(2) (the “Aggregated Plans”)
      are terminated and liquidated with respect to each Participant that experienced
      the Change in Control event, so that under the terms of the termination and
      liquidation all such Participants are required to receive all amounts of
      compensation deferred under the terminated Aggregated Plans within twelve (12)
      months of the date of the irrevocable action taken to terminate and liquidate
      such Aggregated Plans. 

    

    b.           The
      termination and liquidation of the Plan within twelve (12) months of a corporate
      dissolution of the Company that is taxed under Code Section 331, or approved
      by
      a bankruptcy court pursuant to 11 U.S.C. Section  503(b)(1)(A),
      provided that the amounts deferred under the Plan are included in the
      Participants’ gross incomes in the latest of the following years (or, if
      earlier, the taxable year in which the amount is actually or constructively
      received):

    

    (i)           The
      calendar year in which Plan termination and liquidation occurs;

    

    (ii)           The
      first calendar year in which the amount is no longer subject to a substantial
      risk of forfeiture; or

     

    
 

    
      
        
        

      

      
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    (iii)           The
      first calendar year in which the payment is administratively
      practicable.

    

    c.           The
      termination and liquidation of the Plan, where:

    

    (i)           Such
      termination and liquidation does not occur proximate to a downturn in the
      financial health of the Company or the Affiliate, as applicable;

    

    (ii)           To
      the extent the same Participant had deferrals of thereunder, all Aggregated
      Plans are likewise terminated and liquidated;

    

    (iii)           No
      payments in liquidation of the Plan are made within twelve (12) months of the
      date the irrevocable action is taken to terminate and liquidate the Plan, other
      than payments that would be payable under the terms of the Plan if the action
      to
      terminate and liquidate the Plan had not occurred;

    

    (iv)           All
      payments are made within twenty-four (24) months of the date the irrevocable
      action is taken to terminate and liquidate the Plan; and

    

    (v)           The
      Company and Affiliate, as applicable, does not adopt a new plan that would
      be
      aggregated with the Plan if the Participant participated in both plans, at
      any
      time within three years following the date the irrevocable action is taken
      to
      terminate and liquidate the Plan.

    

    d.           Any
      other termination and liquidation event that is permissible under Code Section
      409A.

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      X

    MISCELLANEOUS
      PROVISIONS

    

    

    10.1.    Right
      of Employer to Take Employment Actions.  The adoption and
      maintenance of this Plan shall not be deemed to constitute a contract between
      the Employer and any Eligible Employee, or to be a consideration for, nor an
      inducement or condition of, the employment of any person.  Nothing
      herein contained, or any action taken hereunder, shall be deemed to give any
      Eligible Employee the right to be retained in the employ of the Employer or
      to
      interfere with the right of the Employer to discharge any Eligible Employee
      at
      any time, nor shall it be deemed to give to the Employer the right to require
      the Eligible Employee to remain in its employ, nor shall it interfere with
      the
      Eligible Employee’s right to terminate his or her employment at any
      time.  Nothing in this Plan shall prevent the Employer from amending,
      modifying, or terminating any other benefit plan.

    

    10.2.    Alienation
      or Assignment of Benefits.  Except as otherwise provided under the
      Plan, a Participant’s rights and interest under the Plan shall not be assigned
      or transferred except as otherwise provided herein, and the Participant’s rights
      to benefit payments under the Plan shall not be subject to alienation, pledge
      or
      garnishment by or on behalf of creditors (including heirs, beneficiaries, or
      dependents) of the Participant or of a Beneficiary.

    

    10.3.    Company’s
      Protection.  By execution of an Election Form, each Participant
      shall be deemed to have agreed to cooperate with the Company by furnishing
      any
      and all information reasonably requested by the Administrator in order to
      facilitate the payment of benefits hereunder.

    

    10.4.    Construction.  All
      legal questions pertaining to the Plan shall be determined in accordance with
      the laws of the Commonwealth of Pennsylvania, to the extent such laws are not
      superseded by ERISA or any other federal law.

    

    10.5     Headings.  The
      headings of the Articles and Sections of this Plan are for reference
      only.  In the event of a conflict between a heading and the contents
      of an Article or Section, the contents of the Article or Section shall
      control.

    

    10.6.    Number
      and Gender.  Whenever any words used herein are in the singular
      form, they shall be construed as though they were also used in the plural form
      in all cases where they would so apply, and references to the male gender shall
      be construed as applicable to the female gender where applicable, and vice
      versa.

    

    10.7.    Right
      to Withhold.  To the extent required by law in effect at the time
      a distribution is made from the Plan, the Employer or its agents shall have
      the
      right to withhold or deduct from any distributions or payments any taxes
      required to be withheld by federal, state or local governments.

    

    *
      * * *
      *

    

    Approved
      and adopted by the Board of Directors this 13th day of December,
      2007.

     

     

     21endo_ex10-2.htm

    

    Exhibit
      10.2

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    ENDO
      PHARMACEUTICALS HOLDINGS INC.

    

    401(K)
      RESTORATION PLAN

    

    (Effective
      January 1, 2008)

    

    
    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      ENDO
        PHARMACEUTICALS HOLDINGS INC.

      401(K)
        RESTORATION PLAN

    

     

     

    
      	
              ARTICLE
                I

            	 
	
              INTRODUCTION

            	
              1

            
	 	
              1.1.

            	
              Name

            	
              1

            
	 	
              1.2.

            	
              Effective
                Date

            	
              1

            
	 	
              1.3.

            	
              Purpose

            	
              1

            
	
              ARTICLE
                II

            	 
	
              DEFINITIONS

            	
              2

            
	 	
              2.1.

            	
              Account

            	
              2

            
	 	
              2.2.

            	
              Administrator

            	
              2

            
	 	
              2.3.

            	
              Affiliate

            	
              2

            
	 	
              2.4

            	
              Base
                Salary.

            	 
	 	
              2.5

            	
              Beneficiary

            	
              2

            
	 	
              2.6.

            	
              Board

            	
              2

            
	 	
              2.7

            	
              Change
                in Control

            	
              2

            
	 	
              2.8.

            	
              Code

            	
              3

            
	 	
              2.9.

            	
              Committee

            	
              3

            
	 	
              2.10

            	
              Company

            	
              3

            
	 	
              2.11.

            	
              Compensation

            	
              3

            
	 	
              2.12.

            	
              Deemed
                Investment Option

            	
              4

            
	 	
              2.13.

            	
              Deferral
                Limit

            	
              4

            
	 	
              2.14.

            	
              Eligible
                Employee

            	
              4

            
	 	
              2.15.

            	
              Employee
                Deferral Contribution

            	
              4

            
	 	
              2.16.

            	
              Enrollment
                Agreement

            	
              4

            
	 	
              2.17.

            	
              ERISA

            	
              4

            
	 	
              2.18.

            	
              Matching
                Contribution

            	
              5

            
	 	
              2.19

            	
              Participant

            	
              5

            
	 	
              2.10.

            	
              Plan

            	
              5

            
	 	
              2.21.

            	
              Plan
                Year

            	
              5

            
	 	
              2.22.

            	
              Qualified
                401(k) Plan

            	
              5

            
	 	
              2.23.

            	
              Separation
                from Service

            	
              5

            
	 	
              2.24.

            	
              Specified
                Employee

            	
              5

            
	 	
              2.25.

            	
              Unforeseeable
                Emergency

            	
              5

            
	
              ARTICLE
                III

            	 
	
              PARTICIPATION
                AND VESTING

            	
              7

            
	 	
              3.1.

            	
              Participation

            	
              7

            
	 	
              3.2.

            	
              Cessation
                of Participation

            	
              7

            
	 	
              3.3.

            	
              Vesting

            	
              7

            
	
              ARTICLE
                IV

            	 
	
              EMPLOYEE
                DEFERRAL CONTRIBUTIONS AND MATCHING CONTRIBUTIONS

            	
              8

            
	 	
              4.1.

            	
              Employee
                Deferral Contributions

            	
              8

            
	 	
              4.2.

            	
              Newly
                Eligible Employees

            	
              8

            
	 	
              4.3.

            	
              Matching
                Contributions

            	
              9

            
	 	
              4.4.

            	
              Termination
                as an Active Participant

            	
              9

            

    

    
      	
              ARTICLE
                V

            	 

    

     

     

    
      
        
        

      

      
        (i)

        
          

        

      

      
        
        

      

    

    
 

    
      	
              DISTRIBUTIONS

            	
              10

            
	 	
              5.1.

            	
              Distribution
                Date

            	
              10

            
	 	
              5.2.

            	
              Method
                of Payment

            	
              10

            
	 	
              5.3.

            	
              Distributions
                on Death

            	
              10

            
	 	
              5.4.

            	
              Distributions
                on Unforeseen Emergency

            	
              10

            
	
              ARTICLE
                VI

            	 
	
              FUNDING
                AND INVESTMENTS

            	
              12

            
	 	
              6.1.

            	
              Plan
                Unfunded

            	
              12

            
	 	
              6.2.

            	
              Establishment
                of Grantor Trust

            	
              12

            
	 	
              6.3

            	
              Participant’s
                Interest in Plan

            	
              12

            
	 	
              6.4.

            	
              Returns
                on Account

            	
              12

            
	 	
              6.5.

            	
              Deemed
                Investment Options

            	
              12

            
	 	
              6.6.

            	
              Changes
                in Deemed Investment Options

            	
              13

            
	 	
              6.7.

            	
              Valuation
                of Account

            	
              13

            
	
              ARTICLE
                VII

            	 
	
              ADMINISTRATION
                AND INTERPRETATION

            	
              14

            
	 	
              7.1.

            	
              Administration

            	
              14

            
	 	
              7.2.

            	
              Delegation

            	
              14

            
	 	
              7.3.

            	
              Interpretation

            	
              14

            
	 	
              7.4.

            	
              Records
                and Reports

            	
              14

            
	 	
              7.5.

            	
              Payment
                of Expenses

            	
              15

            
	 	
              7.6.

            	
              Indemnification
                for Liability

            	
              15

            
	 	
              7.7.

            	
              Claims
                Procedure

            	
              15

            
	 	
              7.8.

            	
              Review
                Procedure

            	
              15

            
	 	
              7.9.

            	
              Incompetency
                of Participant or Beneficiary

            	
              16

            
	 	
              7.10.

            	
              Disclosure
                to Participants

            	
              16

            
	
              ARTICLE
                VIII

            	 
	
              AMENDMENT
                AND TERMINATION

            	
              17

            
	 	
              8.1.

            	
              Amendment
                and Termination

            	
              17

            
	 	
              8.2.

            	
              Continuation

            	
              17

            
	
              ARTICLE
                IX

            	 
	
              MISCELLANEOUS
                PROVISIONS

            	
              18

            
	 	
              9.1.

            	
              Right
                of Employer to Take Employment Actions

            	
              18

            
	 	
              9.2.

            	
              Alienation
                or Assignment of Benefits

            	
              18

            
	 	
              9.3.

            	
              Right
                to Withhold

            	
              18

            
	 	
              9.4.

            	
              Construction

            	
              18

            
	 	
              9.5.

            	
              Severability

            	
              18

            
	 	
              9.6.

            	
              Headings

            	
              18

            
	 	
              9.7.

            	
              Number
                and Gender

            	
              19

            
	 	
              9.8

            	
              Limitation
                of Liability

            	
              19

            
	 	
              9.9.

            	
              Section
                409A

            	
              19

            

    

    
 

     

    
      
        
        

      

      
        (ii)

        
          

        

      

      
        
        

      

    

     

    
      

       

      

      ENDO
        PHARMACEUTICALS HOLDINGS INC.

      401(K)
        RESTORATION PLAN

      

      (Effective
        January 1, 2008)

      

      

      ARTICLE
        I

      INTRODUCTION

       

      1.1.           Name.  The
        name of this Plan is the Endo Pharmaceuticals Holdings Inc. 401(k) Restoration
        Plan (the “Plan”).

       

      1.2.           Effective
        Date.  The effective date of this Plan is January 1,
        2008.

       

      1.3.           Purpose.  This
        Plan is established and maintained by Endo Pharmaceuticals Holdings Inc.
        for the
        purposes of providing Eligible Employees with the opportunity to defer a
        portion
        of their Compensation on a tax-favored basis and to receive Matching
        Contributions on such deferrals that exceed the limit on salary deferral
        contributions under Section 402(g) of the Code. Endo intends that the Plan
        shall
        at all times be maintained on an unfunded basis for federal income tax purposes
        under the Code and administered as a non-qualified “top-hat” plan exempt from
        the substantive requirements of ERISA.  Endo also intends that the
        Plan be operated and maintained in accordance with the requirements of Section
        409A of the Code and the regulations and guidance thereunder.

       

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        II

      DEFINITIONS

      

       

      Whenever
        the following initially capitalized words and phrases are used in this Plan,
        they shall have the meanings specified below unless the context clearly
        indicates to the contrary:

       

      2.1.           “Account”
        shall mean, with respect to each Participant, the value of all notional accounts
        maintained on behalf of a Participant, whether attributable to Employee Deferral
        Contributions, Matching Contributions, or any returns on Deemed Investment
        Options credited thereon as described in Section 6.5.

       

      2.2.           “Administrator”
        shall mean the Compensation Committee of the Board of Directors of the Company,
        and any successor thereto.  In the absence of such committee, the
        Board of Directors of the Company shall be the Administrator.

       

      2.3.           “Affiliate”
        shall mean any of the subsidiaries or affiliates of the Company, whether
        or not
        such entities have adopted the Plan, and any other entity which is a member
        of a
“controlled group of corporations”, a “group under common control” or an
“affiliated service group” with the Company all as determined under Sections
        414(b), (c), (m), or (o) of the Internal Revenue Code of 1986, as amended,
        and
        the regulations and guidance promulgated thereunder.

       

      2.4           “Base
        Salary” means the annual
        rate of base salary
        paid by the Company or an Affiliate to a Participant, determined before
        reduction for compensation deferred pursuant to this Plan or any other plan
        of
        deferred compensation maintained by the Company or an Affiliate, including
        but
        not limited to any such plan maintained in accordance with Code Section 401(k),
        125, or 132(f), as determined by the Administrator.

       

      2.5.           “Beneficiary”
        shall mean such person or legal entity as may be designated by a Participant
        under the Qualified 401(k) Plan to receive benefits hereunder after such
        Participant’s death.

       

      2.6.           “Board”
        shall mean the Board of Directors of Endo..

       

      2.7           “Change
        in Control” means and shall be deemed to occur upon a Change in Ownership, a
        Change in Effective Control, or a Change in Ownership of Substantial
        Assets.  For this purpose:

       

      (i)           A
        “Change in Ownership” means that a person or group acquires more than fifty
        percent (50%) of the aggregate fair market value or voting power of the capital
        stock of the Company, including for this purpose capital stock previously
        acquired by such person or group; provided, however, that a Change in Ownership
        shall not be deemed to occur hereunder if, at the time of any such acquisition,
        such person or 

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

         

        group
          owns more than fifty percent (50%) of the aggregate fair market value or
          voting
          power of the Company’s capital stock.

      

       

      (ii)           A
        “Change in Effective Control” means that (a) a person or group acquires (or has
        acquired during the immediately preceding twelve (12)-month period ending
        on the
        date of the most recent acquisition by such person or group) ownership of
        the
        capital stock of the Company possessing thirty percent (30%) or more of the
        total voting power of the Company, or (b) a majority of the members of the
        Board
        of the Company is replaced during any twelve (12)-month period, whether by
        appointment or election, without endorsement by a majority of the members
        of the
        Board prior to the date of such appointment or election.

       

      (iii)           A
        “Change in Ownership of Substantial Assets” means that any person or group
        acquires (or has acquired during the immediately preceding twelve (12)-month
        period ending on the date of the most recent acquisition) assets of the Company
        with an aggregate gross fair market value of not less than forty percent
        (40%)
        of the aggregate gross fair market value of the assets of the Company
        immediately prior to such acquisition.  For this purpose, gross fair
        market value shall mean the fair value of the affected assets determined
        without
        regard to any liabilities associated with such assets.

       

      The
        Board shall determine whether a
        Change in Control has occurred hereunder in a manner consistent with the
        provisions of Code Section 409A and the regulations and applicable guidance
        promulgated thereunder.

       

      2.8.           “Code”
        shall mean the Internal Revenue Code of 1986, as amended.

       

      2.9.           “Committee”
        shall mean the Compensation Committee (or any successor thereto) or its
        delegate, or such other committee appointed by the Board to administer the
        Plan.  If no members have been appointed to the Committee, the Board
        shall act as the Committee.

       

      2.10.         “Company”
        or “Endo” shall mean Endo Pharmaceuticals Holdings Inc.

       

      2.11.         “Compensation”
        shall mean, for each Participant, his or her annual rate of Base Salary for
        the
        Plan Year paid to the Participant by the Company, including amounts deferred
        under this Plan with respect to the Plan Year, and any annual
        incentive.  For purposes of eligibility under Section 2.14 of the
        Plan, Compensation shall include the annual incentive paid to an
        individual.  For purposes of making Employee Deferral Contributions in
        accordance with Article IV of the Plan, Compensation shall include the annual
        incentive earned by an Eligible Employee.

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      2.12.         “Deemed
        Investment Option” shall mean some or all of the investment options
        designated by the Committee for purposes of the Qualified 401(k) Plan, as
        may be
        changed from time to time.  Each Participant shall designate the
        Deemed Investment Options pursuant to which deemed earnings (or losses) shall
        be
        credited to the Participant’s Account in accordance with Article
        VI.

       

      2.13.         “Deferral
        Limit” shall mean the dollar limitation on employee salary deferral
        contributions in effect under Section 402(g) of the Code with respect to
        a Plan
        Year or any limits established by the Plan including limits on includible
        compensation or amounts that can be allocated.

       

      2.14.         “Eligible
        Employee” shall mean an employee designated by the Committee as eligible to
        participate in the Plan.  Initially, Eligible Employees are limited to
        Employees whose total annual rate of Base Salary and target incentive
        compensation at the time the election is made exceed the indexed limit under
        Code Section 401(a)(17), as determined by the
        Committee.  Notwithstanding the foregoing, the Committee, in its sole
        discretion, may establish such other eligibility criteria as it deems desirable
        from time to time.

       

      2.15.         “Employee
        Deferral Contribution” shall mean that portion of Compensation as to which a
        Participant has made an annual irrevocable election to defer receipt of amounts
        that may have been deferred under the Qualified 401(k) Plan if not for the
        Deferral Limit.

       

      2.16.         “Enrollment
        Agreement” shall mean the authorization form which an Eligible Employee
        files with the Committee to make deferrals to the Plan prior to the beginning
        of
        the Plan Year to which the Employee Deferral Contributions apply.

       

      2.17.         “ERISA”
        shall mean the Employee Retirement Income Security Act of 1974, as
        amended.

       

      2.18          “Installment
        Payment” means a series of substantially equal annual payments of the
        Participant’s Account paid over a period ranging from two (2) whole years to ten
        (10) whole years, as elected by the Participant, commencing as of the applicable
        payment date under the plan.

       

      2.19.         “Leave
        of Absence” shall mean a military, sick, or other bona fide leave of absence
        provided that such leave does not exceed six months, or if longer, continues
        so
        long as the Participant has a right to reemployment with the Company or its
        Affiliates and there is a reasonable expectation that the Participant will
        return to such employment.  A Leave of Absence is deemed to terminate
        on the first date immediately following the end of the six-month period,
        or the
        date on with the Participant no longer has any right or expectation to return
        to
        employment, whichever is later.

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      2.20.         “Matching
        Contribution” shall mean as such term is defined in the Endo Pharmaceuticals
        Savings and Investment Plan. “

       

      2.21.         “Participant”
        shall mean an individual who is an Eligible Employee and who has not ceased
        participation in this Plan in accordance with the terms of Article III
        hereof.  In the event of the death or incompentency of a Participant,
        the term shall mean the Participant’s personal representative or
        guardian.  An individual shall remain a Participant until that
        individual has received full distribution of any amount credited to the
        Participant’s Account.

       

      2.22.         “Plan”
        shall mean this Endo Pharmaceuticals Holdings Inc. 401(k) Restoration
        Plan.

       

      2.23          “Plan
        Year” shall mean the calendar year.

       

      2.24.         “Qualified
        401(k) Plan” shall mean the Endo Pharmaceuticals Savings and Investment
        Plan.

       

      2.25.        
        “Section 409A” shall mean Section 409A of the Code and the regulations
        and guidance promulgated thereunder.

       

      2.26.         “Separation
        from Service” shall mean the date the Participant ceases to be an Eligible
        Employee on account of a voluntary or involuntary termination of employment
        with
        the Company and its Affiliates, or on account of retirement or
        death.  Notwithstanding the foregoing, a Separation from Service shall
        not be deemed to occur so long as the Participant is on a Leave of Absence
        or
        the Participant continues to perform services for the Company or an Affiliate
        at
        a level in excess of 20% of the level of services performed by the Participant
        during the 36-month period (or the employee’s full period of service if the
        employee has worked less than 36 months) immediately preceding the date of
        separation from service.

       

      2.27          “Specified
        Employee” shall mean a Participant who is determined to be a “specified
        employee” within the meaning of Section 409A with respect to a Separation from
        Service occurring in any twelve month period commencing on April 1 based
        on the
        employee’s compensation with the Company as defined in Section 416(i)(1)(D) of
        the Code and his or her status at
        the end of the immediately preceding calendar year.  For
        purposes of the determining if an employee is classified as a Specified
        Employee, compensation from a nonresident alien’s gross income under Treasury
        Regulation Section 1.415(c)-2(g)(5)(ii) on account of the location of the
        services or the identity of an employer that is not effectively connected
        with
        the conduct of a trade or business within the United States shall be
        excluded.

       

      2.28          “Unforeseeable
        Emergency” shall mean
with respect
        to a Participant, his or her spouse, dependents (as defined
        in Section 152 of the Code, without 

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

        regard
          to Sections 152(b)(1), (b)(2), and (d)(1)(B)) or Beneficiary, a non-reimbursable
          severe financial hardship attributable to (i) a sudden and unexpected illness
          or
          accident or (ii) funeral expenses, and also means with respect to the
          Participant (i) a property loss due to casualty that is not otherwise covered
          by
          insurance, (ii) imminent foreclosure or eviction from the Participant’s primary
          residence, or (iii) a similar extraordinary and unforeseeable circumstance
          beyond the control of the Participant, as determined by the
          Administrator.  For purposes of this Plan, the purchase of a home and
          the payment of college tuition are not Unforeseeable Emergencies.

      

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        III

      PARTICIPATION
        AND VESTING

      

       

      3.1.           Participation.  Participation
        in this Plan is limited to Eligible Employees.  An individual shall
        become eligible to elect to make an Employee Deferral Contribution for the
        first
        Plan Year immediately following the Plan Year in which he or she becomes
        an
        Eligible Employee.  A newly Eligible Employee may be eligible to
        participate after the beginning of the Plan Year in accordance with Section
        4.2.  An individual shall remain an Eligible Employee each Plan Year
        thereafter regardless of the individual’s Compensation level until Separation
        from Service or the Committee determines the individual to be no longer eligible
        to elect to defer.

       

      3.2.           Cessation
        of Participation.  A Participant who is not vested in accordance
        with the terms of the Qualified 401(k) Plan and who separates from service
        with
        the Company without a benefit under this Plan will cease participation
        hereunder.

       

      3.3.            Vesting.    A
        Participant shall at all times be 100% vested in his or her Employee Deferral
        Contribution.  A Participant shall vest in his or her Matching
        Contributions under the Plan in accordance with the terms of the Qualified
        401(k) Plan.  In the event a Participant incurs a Separation from
        Service within the two (2) year period immediately following a Change in
        Control, the Participant will become immediately and 100% vested in his or
        her
        Matching Contributions.

       

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      

       

      ARTICLE
        IV

      EMPLOYEE
        DEFERRAL CONTRIBUTIONS AND MATCHING CONTRIBUTIONS

      

       

      4.1.           Employee
        Deferral Contributions. Effective as of the Effective Date, and annually
        thereafter, all Eligible Employees will be offered the opportunity to make
        an
        Employee Deferral Contribution with respect to Compensation to be earned
        in the
        Plan Year.  Any Eligible Employee may enroll in the Plan effective as
        of the first day of a Plan Year by filing a completed and fully executed
        Enrollment Agreement with the Committee by a date set by the Committee, but
        in
        any event prior to the first day of the Plan Year.  Pursuant to said
        Enrollment Agreement, the Eligible Employee shall irrevocably elect, except
        as
        provided below, the percentage in whole percentages only by which, as a result
        of payroll reduction, the Eligible Employee’s Compensation to be earned during
        that Plan Year, after required nondeferrable payroll tax and other authorized
        or
        required deductions, will be deferred to the Plan. An Employee Deferral
        Contribution under the Plan shall not exceed any limits on the percentage
        of
        Compensation eligible to be deferred under the Qualified 401(k) Plan. Any
        Employee Deferral Contribution made under this Section 4.1 will be credited
        to
        the Participant’s Account as soon as administratively practicable following the
        end of the applicable payroll period for which the deferral
        relates.  An Enrollment Agreement executed by an Eligible Employee
        will remain in effect for all subsequent Plan Years while the Participant
        remains an employee and qualifies as an Eligible Employee, unless, prior
        to the
        beginning of any Plan Year, the Eligible Employee completes and fully executes
        a
        new Enrollment Agreement with the Committee by the date set by the Committee,
        but in any event prior to the first day of the Plan Year in which the new
        Enrollment Agreement will become effective.

       

      4.2.           Newly
        Eligible Employees.  The Committee, acting on behalf of the
        Company, may, in its discretion, permit an employee who first becomes a Eligible
        Employee after the beginning of a Plan Year, and such employee is not and
        was
        not otherwise eligible to participate in this or any other nonqualified deferred
        compensation plan of the Company for the Plan Year that is required to be
        aggregated with the Plan for purposes of Section 409A, to enroll in the Plan
        to
        defer Compensation for that Plan Year by filing a completed and fully executed
        Enrollment Agreement, in accordance with Section 4.1, as soon as
        administratively practicable following the date the employee becomes a Eligible
        Employee but, in any event, within thirty (30) days after such
        date.  Notwithstanding the foregoing, however, any election by an
        Eligible Employee, pursuant to this Section, to make an Employee Deferral
        Contribution  shall apply only with respect to Compensation paid for
        services to be performed after the date on which such Enrollment Agreement
        is
        filed.  For this purpose, with respect to the Compensation
        attributable to any annual incentive, the election will be deemed to apply
        to
        the portion of the annual incentive paid for services performed after the
        Enrollment Agreement is filed, provided that this amount will be determined
        by
        the total amount of annual incentive for 

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

         

        the
          performance period multiplied by the ratio of the number of days remaining
          in
          the performance period for the annual incentive after the Enrollment Agreement
          is filed over the total number of days in the performance
          period.

      

       

      4.3.           Matching
        Contributions. Effective as of the Effective Date, and annually thereafter,
        each Eligible Employee who makes an Employee Deferral Contribution for the
        Plan
        Year will receive a Matching Contribution equal to the difference between
        (A)
        and (B), where (A) equals the amount of matching contribution the Participant
        would receive under the Qualified 401(k) Plan if the Deferral Limit did not
        apply based on the (i) the amount of Compensation that the Participant
        contributes to this Plan plus (ii) the amount that the Participant could
        have contributed on a pre-tax basis to the Qualified 401(k) Plan, whether
        or not
        such amount is so contributed, and (B) equals the maximum amount of matching
        contribution that the Participant could have received from the Qualified
        401(k)
        Plan, irrespective of whether the Participant actually receives the maximum
        amount of matching contribution under the Qualified 401(k) Plan for the Plan
        Year.  Any Matching Contribution made under this Section 4.3 will be
        credited to the Account as soon as administratively practicable following
        the
        end of the of Plan Year to which it relates (or such other time(s) as the
        Committee may determine, in its sole discretion).  No Matching
        Contributions will be made for an Eligible Employee if such employee does
        not
        make any Employee Deferral Contributions for the Plan Year.

       

      4.4.           Termination
        as an Active Participant.   An Eligible Employee who ceases
        as an employee shall (i) not be eligible to make any further Employee Deferral
        Contributions and (ii) shall not be eligible to receive any further Matching
        Contributions.

       

      

      
        
          
          

        

        
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      ARTICLE
        V

      DISTRIBUTIONS

      

       

      5.1.           Distribution
        Date.  Unless distributed earlier as provided in this Plan,
        distributions from a Participant’s vested Account will commence within sixty
        days of the Participant’s Separation from Service.  If the Participant
        is classified as a Specified Employee within the meaning of Section 409A
        at the
        time the individual terminates his or her employment, then distributions
        from a
        Participant’s vested Account shall not be paid earlier than the date that is at
        least six months after following the date
        of such Specified Employee’s Separation
        from Service.  Any delayed payments during this six month
        period shall include any returns on Deemed Investment Options credited thereon
        as described in Section 6.5.

       

       5.2.           Method
        of Payment.  All distributions under this Plan shall be paid in
        cash in the form of a lump sum or in an Installment Payment.  At the
        time the Participant makes such an election to defer his or her Compensation
        under Article IV, the Participant shall also specify on the Enrollment Agreement
        the form of payment.  The Participant may elect to receive his or her
        Account in either a lump sum or in an Installment Payment.

       

      5.3.           Distributions
        on Death.  In the event of a Participant’s death before his or her
        Account has been distributed, distribution(s) shall be made to the Beneficiary
        selected by the Participant, in a single lump sum cash payment within sixty
        (60)
        days after the date of death or, at the discretion of the Administrator (or,
        if
        later, after the proper Beneficiary has been identified), at any time during
        the
        calendar year in which the death occurs or if later, up to two and one half
        (2
1⁄2) months following the date of death. If no Beneficiary designation is in
        effect at the time of the Participant’s death, or if the designated Beneficiary
        is missing or has predeceased the Participant, distribution shall be made
        to the
        Participant’s surviving spouse, or if none, to his or her surviving children per
        stirpes, and if none, to his or her estate.

       

      5.4.           Distributions
        on Unforeseeable Emergency.  In the event of an Unforeseeable
        Emergency, to the extent necessary to cover the emergency, a Participant
        may
        request a distribution of all or any portion of his or her
        Account.  An event shall constitute an Unforeseeable Emergency only if
        the Administrator or the Board determines it satisfies the conditions
        of  Section 409A.  Withdrawals made pursuant to this Section
        5.4 shall commence within ten (10) days after the date on which the
        Administrator approves the Participant’s request for withdrawal.

       

      5.5           Distribution
        on Change in Control.  Notwithstanding any provision of the Plan
        or the Participant’s election form to the contrary, a Participant who incurs a
        Separation from Service within the two (2) year period immediately following
        a
        Change 

       

       

      
        
          
          

        

        
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        in
          Control shall receive a lump sum payment of his or her Account within thirty
          (30) days following the date of such Separation from Service.

      

       

      

      
        
          
          

        

        
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      ARTICLE
        VI

      FUNDING
        AND INVESTMENTS

      

       

      6.1.           Plan
        Unfunded.  This Plan shall be unfunded and no trust is created by
        this Plan.  There will be no funding of any amounts to be paid
        pursuant to this Plan; provided, however, that nothing herein shall prevent
        the
        Company from establishing one or more grantor trusts from which benefits
        due
        under this Plan may be paid in certain instances.  All benefits shall
        be paid from the general assets of the Company and a Participant (or his
        or her
        Beneficiary) shall have the rights of a general, unsecured creditor against
        the
        Company for any distributions due hereunder.  This Plan constitutes a
        mere promise by the Company to make benefit payments in the future.

       

      6.2           Establishment
        of Grantor Trust.  Within fifteen (15) days following a Change in
        Control, the Company shall establish under the Plan a grantor trust that
        meet
        the requirements of IRS Revenue Procedure 92-64, and shall transfer assets
        to
        such trust in amounts sufficient to fully fund the Plan’s aggregate liability
        with respect to the Accounts under the Plan on and after the date of the
        Change
        in Control.

       

      6.3.           Participant’s
        Interest in Plan.  A Participant has an interest only in the
        benefits to be paid pursuant to this Plan.  A Participant has no
        rights or interests in any specific funds, stock or
        securities.  Nothing in this Plan shall be interpreted as a guaranty
        that any funds in a grantor trust or the assets of the Company will be
        sufficient to pay any such benefit.

       

      6.4.           Returns
        on Account. A Participant’s Account shall be credited
        with returns in accordance with the Deemed Investment Options elected by
        the
        Participant from time to time; provided, however, that if the Participant
        does
        not affirmatively elect a Deemed Investment Option, until the Participant
        makes
        an affirmative election as to the Deemed Investment Options under the Plan,
        the
        Participant will be deemed to have elected the default investment option
        that
        the Committee has designated for this purpose.  The rate of return,
        positive or negative, credited under each Deemed Investment Option is based
        upon
        the actual investment performance of the investment fund(s) designated by
        the
        Committee from time to time, and shall equal the total return of such investment
        fund net of asset based charges, including, without limitation, money management
        fees, fund expenses and mortality and expense risk insurance contract
        charges.

       

      6.5.           Deemed
        Investment Options.  The Deemed Investment Options available under
        the Plan shall consist of those funds that the Committee has designated as
        of
        the Effective Date as the Deemed Investment Options under the Plan which
        shall
        consist of some or all of the investment options available under the

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

         

        Qualified
          401(k) Plan as the Committee determines; provided, however, the Committee
          reserves the right, on a prospective basis, to add or delete Deemed Investment
          Options.  Notwithstanding that the rates of return credited to
          Participants’ Account under the Deemed Investment Options are based upon the
          actual performance of the investment funds designated by the Committee,
          Endo
          shall not be obligated to invest any Employee Deferral Contributions or
          Matching
          Contributions under this Plan, or any other amounts, in such portfolios
          or in
          any other investment funds.

      

       

      6.6.           Changes
        in Deemed Investment Options. A Participant may change
        the Deemed Investment Options to which the Participant’s Account are deemed to
        be allocated on such basis as determined by the Committee in its sole
        discretion.  Each such change may include (a) reallocation of the
        Participant’s existing Account in whole percentages of not less than one
        percent, and/or (b) change in investment allocation of amounts to be credited
        to
        the Participant’s Account in the future, as the Participant may
        elect.

       

      6.7.           Valuation
        of Account.  The value of a Participant’s Account as of any date
        shall equal the amounts theretofore credited to such Account, including any
        earnings (positive or negative) deemed to be earned on such Account in
        accordance with Section 6.5 through the day preceding such date, less the
        amounts theretofore deducted from such Account.

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

       ARTICLE
        VII

      ADMINISTRATION
        AND INTERPRETATION

      

       

      7.1.           Administration.  The
        Administrator shall be in charge of the overall operation and administration
        of
        this Plan.  The Administrator has, to the extent appropriate and in
        addition to the powers described elsewhere in this Plan, full discretionary
        authority to construe and interpret the terms and provisions of the Plan;
        to
        adopt, alter and repeal administrative rules, guidelines and practices governing
        the Plan; to perform all acts, including the delegation of its administrative
        responsibilities to advisors or other persons who may or may not be employees
        of
        the Company and/or its Affiliates; and to rely upon the information or opinions
        of legal counsel or experts selected to render advice with respect to the
        Plan,
        as it shall deem advisable, with respect to the administration of the
        Plan.

       

      7.2.           Delegation.   The
        Administrator may delegate specific responsibilities to other persons or
        entities as the Administrator shall determine. The Administrator may authorize
        one or more of its number, or any agent, to execute or deliver any instrument
        or
        to make any payment in its behalf.  The Administrator may employ and
        rely on the advice of counsel, accountants, and such other persons as may
        be
        necessary in administering the Plan.

       

      7.3.           Interpretation.  Except
        as otherwise provided herein, the terms and conditions of the Qualified 401(k)
        Plan shall apply and benefits payable under the Plan shall be in accordance
        with
        the terms and conditions of the Qualified 401(k) Plan.  Nothing in
        this Plan shall be interpreted or operated in a manner that may affect the
        terms
        and provisions of any Qualified 401(k) Plan.  The Administrator may
        take any action, correct any defect, supply any omission or reconcile any
        inconsistency in this Plan, or in any election hereunder, in the manner and
        to
        the extent it shall deem necessary to carry this Plan into effect or to carry
        out the Company’s purposes in adopting this Plan.  Any decision,
        interpretation or other action made or taken in good faith by or at the
        direction of the Company or the Administrator arising out of or in connection
        with the Plan, shall be within the absolute discretion of each of them, and
        shall be final, binding and conclusive on the Company, all Participants and
        Beneficiaries and their respective heirs, executors, administrators, successors
        and assigns.  The Administrator’s determinations hereunder need not be
        uniform, and may be made selectively among Eligible Employees, whether or
        not
        they are similarly situated.

       

      7.4.           Records
        and Reports.  The Administrator shall keep a record of proceedings
        and actions and shall maintain or cause to be maintained all such books of
        account, records, and other data as shall be necessary for the proper
        administration of the Plan.  Such records shall contain all relevant
        data pertaining to individual Participants and their rights under this
        Plan.  The Administrator shall have the duty to carry into effect all

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

         

        rights
          or benefits provided hereunder to the extent assets of the Company are
          properly
          available.

      

       

      7.5.           Payment
        of Expenses.  The Company shall bear all expenses incurred by the
        Administrator in administering this Plan.  If a claim or dispute
        arises concerning the rights of a Participant or Beneficiary to benefits
        under
        this Plan, regardless of the party by whom such claim or dispute is initiated,
        the Company shall, upon presentation of appropriate vouchers, pay all legal
        expenses, including reasonable attorneys’ fees, court costs, and ordinary and
        necessary out-of-pocket costs of attorneys, billed to and payable by the
        Participant or by anyone claiming under or through the Participant (such
        person
        being hereinafter referred to as the “Participant’s Claimant”), in connection
        with the bringing, prosecuting, defending, litigating, negotiating, or settling
        of such claim or dispute; provided, that:

       

      (a)           The
        Participant or the Participant’s Claimant shall repay to the Company any such
        expenses theretofore paid or advanced by the Company if and to the extent
        that
        the party disputing the Participant’s rights obtains a judgment in its favor
        from a court of competent jurisdiction from which no appeal may be taken,
        whether because the time to do so has expired or otherwise, and it is determined
        by the court that such expenses were not incurred by the Participant or the
        Participant’s Claimant while acting in good faith; provided further,
        that

       

      (b)           In
        the case of any claim or dispute initiated by a Participant or the Participant’s
        Claimant, such claim shall be made, or notice of such dispute given, with
        specific reference to the provisions of this Plan, to the Administrator within
        two (2) years after the occurrence of the event giving rise to such claim
        or
        dispute.

       

      7.6.           Indemnification
        for Liability.  The Company shall indemnify the Administrator and
        the employees of the Company to whom the Administrator delegates duties under
        this Plan, against any and all claims, losses, damages, expenses and liabilities
        arising from their responsibilities in connection with this Plan, unless
        the
        same is determined to be due to gross negligence or willful
        misconduct.

       

      7.7.           Claims
        Procedure.  If a claim for benefits or for participation under
        this Plan is denied in whole or in part, a Participant will receive written
        notification.  The notification will include specific reasons for the
        denial, specific reference to pertinent provisions of this Plan, a description
        of any additional material or information necessary to process the claim
        and why
        such material or information is necessary, and an explanation of the claims
        review procedure.

       

      7.8.           Review
        Procedure.  Within ninety (90) days after the claim is denied, a
        Participant (or his or her duly authorized representative) may file a written
        request with the Administrator for a review of his or her denied
        claim.  The Participant may review pertinent documents that were used
        in processing his or her claim, submit 

       

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

         

        pertinent
          documents, and address issues and comments in writing to the
          Administrator.  The Administrator will notify the Participant of his
          or her final decision in writing.  In his or her response, the
          Administrator will explain the reason for the decision, with specific references
          to pertinent Plan provisions on which the decision was based.

      

       

      7.9.           Incompetency
        of Participant or Beneficiary.  The Company may from time to time
        establish rules and procedures which it determined to be necessary for the
        proper administration of the Plan and the benefits payable to an individual
        in
        the event that the individual is declared incompetent and a conservator or
        other
        person legally charged with such individual’s care is
        appointed.  Except as otherwise provided herein, when the Company
        determines that such individual is unable to manage his or her financial
        affairs, the Company may pay such individual’s benefits to such conservator,
        person legally charged with such individual’s care, or institution then
        contributing toward or providing for the care and maintenance of such
        individual.  Any such payment shall constitute a complete discharge of
        any liability of the Company and this Plan for such individual.

       

      7.10.         Disclosure
        to Participants.  Each Participant shall receive a copy of this
        Plan and the Company will make available for inspection by any Participant
        or
        designated Beneficiary a copy of the rules and regulations used by the Company
        in administering this Plan.

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        VIII

      AMENDMENT,
        TERMINATION AND CONTINUATION

      

       

      8.1.           Amendment
        and Termination.  The Administrator shall have the right, at any
        time, to amend or terminate this Plan in whole or in part. The Company, upon
        review of the effectiveness of this Plan, may at any time recommend amendments
        to, or termination of, the Plan to the Administrator.  The
        Administrator reserves the right, in its sole discretion, to completely
        terminate, this Plan at any time.  If the Plan is completely
        terminated or discontinued with respect to future benefit accruals, benefits
        accrued shall be distributed in accordance with Article V and may not be
        accelerated to provide for an earlier commencement
        date.  Notwithstanding the foregoing any amendment or termination of
        the Plan shall comply with the requirements of Section 409A.

       

      8.2.           Continuation.  This
        Plan may be continued after a sale of the assets of the Company or a merger
        or
        consolidation of the Company into or with another corporation or entity if
        and
        to the extent that the transferee, purchaser or successor entity agrees to
        continue this Plan.  If the transferee, purchaser or successor entity
        does not continue this Plan, then the Plan shall be terminated in accordance
        with the provisions of Section 8.1 of this Article VIII.

       

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        IX

      MISCELLANEOUS
        PROVISIONS

      

       

      9.1.           Right
        of Company to Take Employment Actions.  The adoption and
        maintenance of this Plan shall not be deemed to constitute a contract between
        the Company (including its Affiliates) and any Eligible Employee, nor to
        be a
        consideration for, nor an inducement or condition of, the employment of any
        person.  Nothing herein contained, or any action taken hereunder,
        shall be deemed to give any Eligible Employee the right to be retained in
        the
        employ of the Company or its Affiliates or to interfere with the right of
        the
        Company or its Affiliates to discharge any Eligible Employee at any time,
        nor
        shall it be deemed to give to the Company or its Affiliates the right to
        require
        the Eligible Employee to remain in the employ of the Company or any of its
        Affiliates, nor shall it interfere with the Eligible Employee’s right to
        terminate his or her employment at any time.  Nothing in this Plan
        shall prevent the Company or any Affiliate from amending, modifying, or
        terminating any other benefit plan.

       

      9.2.           Alienation
        or Assignment of Benefits.  A Participant’s rights and interest
        under this Plan shall not be assigned or transferred except as otherwise
        provided herein, and the Participant’s rights to benefit payments under this
        Plan shall not be subject to alienation, pledge or garnishment by or on behalf
        of creditors (including heirs, beneficiaries, or dependents) of the Participant
        or of a Beneficiary.

       

      9.3.           Right
        to Withhold.  To the extent required by law in effect at the time
        a distribution is made from this Plan, the Company, its Affiliates or the
        agents
        of the foregoing shall have the right to withhold or deduct from any benefit
        payments any taxes required to be withheld by federal, state or local
        governments.

       

      9.4.           Construction.  All
        legal questions pertaining to this Plan shall be determined in accordance
        with
        the laws of the Commonwealth of Pennsylvania, to the extent such laws are
        not
        superseded by the Internal Revenue Code of 1986, as amended, Employee Retirement
        Income Security Act of 1974, as amended, or any successor, replacement or
        other
        applicable federal law.

       

      9.5.           Severability.  If
        any provision of this Plan is held unenforceable, the remainder of the Plan
        shall continue in full force and effect without regard to such unenforceable
        provision and shall be applied as though the unenforceable provision were
        not
        contained in the Plan.

       

      9.6.           Headings.  The
        headings of the Articles and Sections of this Plan are for reference
        only.  In the event of a conflict between a heading and the contents
        of an Article or Section, the contents of the Article or Section shall
        control.

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      9.7.           Number
        and Gender.  Whenever any words used herein are in the singular
        form, they shall be construed as though they were also used in the plural
        form
        in all cases where they would so apply, and references to the male gender
        shall
        be construed as applicable to the female gender where applicable, and vice
        versa.

       

      9.8.           Limitation
        of Liability.  Notwithstanding any provision herein to the
        contrary, neither the Company nor any individual acting as employee or agent
        of
        the Company shall be liable to any Participant, former Participant, Beneficiary,
        or any other person for any claim, loss, liability or expense incurred in
        connection with this Plan, unless attributable to fraud or willful misconduct
        on
        the part of the Company or any such agent of the Company.

       

      9.9.           Section
        409A.  The Plan is intended to comply with the applicable
        requirements of Section 409A, and shall be administered in accordance with
        Section 409A to the extent Section 409A applies to the
        Plan.  Notwithstanding anything in the Plan to the contrary, elections
        to defer Compensation, as applicable, to the Plan, and distributions from
        the
        Plan, may only be made in a manner and upon an event permitted by Section
        409A.  To the extent that any provision of the Plan would cause a
        conflict with the requirements of Section 409A, or would cause the
        administration of the Plan to fail to satisfy the requirements of Section
        409A,
        such provision shall be deemed null and void to the extent permitted by
        applicable law.

       

      *
        * * * *

       

      Approved
        and adopted by the Board of Directors this 13th day of December,
        2007.

       

       

       

      19

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