Document:

exv10w37

 

    Exhibit
    10.37

 

    AMENDED
    AND RESTATED

    EMPLOYMENT AGREEMENT

 

    THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT, effective
    as of the last date signed by the parties hereto (the
    “Effective Date”), supersedes and replaces the
    Employment Agreement dated October 27, 2003 by and between
    Neurocrine
    Biosciences, Inc., 12790 El Camino Real,
    San Diego, California 92130 (hereinafter the
    “Company”), and Haig Bozigian, Ph.D.,
    (hereinafter “Executive”) (the “Original
    Employment Agreement”). Once this Agreement is effective,
    the Original Employment Agreement shall have no further force or
    effect.

 

    R E C
    I T A L S

 

    WHEREAS, the Company and Executive wish to set forth in
    this Agreement the terms and conditions under which Executive is
    to be employed by the Company on and after the Effective Date
    hereof;

 

    NOW, THEREFORE, the Company and Executive, in
    consideration of the mutual promises set forth herein, agree as
    follows:

 

    ARTICLE 1

    

 

    NATURE OF
    EMPLOYMENT

 

    1.1  Commencement
    Date.  Executive’s full-time employment
    with the Company under this Agreement shall be deemed to have
    commenced as of August 1, 2007 (“Commencement
    Date”) and this Agreement shall continue from the Effective
    Date until it is terminated by either the Company or Executive
    pursuant to the terms set forth in Article 6.

 

    1.2  At-Will
    Employment.  Executive shall be employed
    at-will by the Company and therefore either Executive or the
    Company may terminate the employment relationship and this
    Agreement at any time, with or without Cause (as defined herein)
    and with or without advance notice, subject to the provisions of
    Article 6.

 

    ARTICLE 2

    

 

    EMPLOYMENT
    DUTIES

 

    2.1  Title/Responsibilities.  Executive
    hereby accepts employment with the Company pursuant to the terms
    and conditions hereof. Executive agrees to serve the Company in
    the position of Senior Vice President, Pharmaceutical and
    Preclinical Development. Executive shall have the powers and
    duties commensurate with such position, including but not
    limited to hiring personnel necessary to carry out the
    responsibilities for such position as set forth in the annual
    business plan approved by the Board of Directors.

 

    2.2  Full Time
    Attention.  Executive shall devote his best
    efforts and his full business time and attention to the
    performance of the services customarily incident to such office
    and to such other services as the President and Chief Executive
    Officer or Board may reasonably request.

 

    2.3  Other Activities.  Except
    upon the prior written consent of the President &
    Chief Executive Officer, Executive shall not during the period
    of employment engage, directly or indirectly, in any other
    business activity (whether or not pursued for pecuniary
    advantage) that is or may be competitive with, or that might
    place him in a competing position to that of the Company or any
    other corporation or entity that directly or indirectly
    controls, is controlled by, or is under common control with the
    Company (an “Affiliated Company”), provided that
    Executive may own less than two percent (2%) of the outstanding
    securities of any such publicly traded competing corporation.

    

    1

 

 

    ARTICLE 3

    

 

    COMPENSATION

 

    3.1  Base Salary.  Executive
    shall receive a Base Salary at an annual rate of two hundred
    sixty thousand and one dollar ($260,001.00), payable
    semi-monthly in equal installments in accordance with the
    Company’s normal payroll practices. The Chief Executive
    Officer shall provide Executive with annual performance reviews,
    and, thereafter, Executive shall be entitled to such increase in
    Base Salary as the Chief Executive Officer and Board of
    Directors may from time to time establish in their sole
    discretion.

 

    3.2  Incentive Bonus.  In
    addition to any other bonus the Executive shall be awarded by
    the Company, Executive shall be eligible to receive an annual
    incentive bonus based upon the achievement in meeting annual
    personal goals established by his immediate supervisor and
    achievement by the Company of annual corporate goals established
    by the Board of Directors. Executives target annual incentive
    bonus will be set forth in the Company’s annual bonus plan
    (the “Target Annual Bonus”). Except as provided in
    Article 6 herein, no pro-rata bonus will be considered
    earned if the Executive leaves the Company for any reason prior
    to the foregoing determination dates. Any annual incentive bonus
    that is earned shall be paid no later than the fifteenth day of
    the third month following the end of the Company’s fiscal
    year for which such bonus was earned.

 

    3.3  Equity.  Except as
    provided in Article 6 in the case of certain terminations
    of employment, this Agreement shall not affect any Stock Awards
    (as such term is defined below) previously granted by the
    Company to Executive. Subject to approval by the Company’s
    Board of Directors, Executive shall be eligible to receive
    additional Stock Awards on terms to be set forth by the Company
    at the time of any such grant. For purposes of this Agreement,
    “Stock Awards” shall mean any rights granted by the
    Company to Executive with respect to the common stock of the
    Company, including, without limitation, stock options, stock
    appreciation rights, restricted stock, stock bonuses and
    restricted stock units.

 

    3.4  Withholdings.  All
    compensation and benefits payable to Executive under this
    Agreement shall be subject to all federal, state, local taxes
    and other withholdings and similar taxes and payments required
    by applicable law.

 

    ARTICLE 4

    

 

    EXPENSE
    ALLOWANCES AND FRINGE BENEFITS

 

    4.1  Vacation.  Executive
    shall be entitled to participate in the Company’s vacation
    plan pursuant to the terms of that plan.

 

    4.2  Benefits.  During
    Executive’s employment hereunder, the Company shall also
    provide Executive with the health insurance benefits it
    generally provides to its other senior management employees. As
    Executive becomes eligible in accordance with criteria to be
    adopted by the Company, the Company shall provide Executive with
    the right to participate in and to receive benefit from life,
    accident, disability, medical, and savings plans and similar
    benefits made available generally to employees of the Company as
    such plans and benefits may be adopted by the Company. With
    respect to long-term disability insurance coverage, the
    Executive will pay all premiums for such coverage with after-tax
    dollars, and the Company will reimburse the Executive for the
    premium costs so paid by the Executive and make an additional
    tax gross-up
    payment to Executive in an amount that shall fully fund the
    payment by Executive of any income and employment taxes on such
    reimbursement payment and tax
    gross-up
    payment. The amount and extent of benefits to which Executive is
    entitled shall be governed by the specific benefit plan as it
    may be amended from time to time.

 

    4.3  Business Expense
    Reimbursement.  During the term of this
    Agreement, Executive shall be entitled to receive proper
    reimbursement for all reasonable out-of-pocket expenses incurred
    by him (in accordance with the policies and procedures
    established by the Company for its senior executive officers) in
    performing services hereunder. Executive agrees to furnish to
    the Company adequate records and other documentary evidence of
    such expense for which Executive seeks reimbursement. Such
    expenses shall be reimbursed and accounted for under the
    policies and procedures established by the Company, and such
    reimbursement shall be made promptly, but in no event later than
    December 31 of the calendar year following the year in which
    such expenses were incurred by Executive.

    

    2

 

 

    ARTICLE 5

    

 

    CONFIDENTIALITY

 

    5.1  Proprietary
    Information.  Executive represents and
    warrants that he has previously executed and delivered to the
    Company the Company’s standard Proprietary Information and
    Inventions Agreement.

 

    5.2  Return of Property.  All
    documents, records, apparatus, equipment and other physical
    property which is furnished to or obtained by Executive in the
    course of his employment with the Company shall be and remain
    the sole property of the Company. Executive agrees that, upon
    the termination of his employment, he shall return all such
    property (whether or not it pertains to Proprietary Information
    as defined in the Proprietary Information and Inventions
    Agreement), and agrees not to make or retain copies,
    reproductions or summaries of any such property.

 

    5.3  No Use of Prior Confidential
    Information.  Executive will not intentionally
    disclose to the Company or use on its behalf any confidential
    information belonging to any of his former employers or any
    other third party.

 

    ARTICLE 6

    

 

    TERMINATION

 

    6.1  General.  As set forth in
    Section 1.2 herein, Executive shall be employed on an
    at-will basis by the Company. Notwithstanding the foregoing,
    Executive’s employment and this Agreement may be terminated
    in one of six ways as set forth in this Article 6:
    (a) Executive’s Death (Section 6.2);
    (b) Executive’s Disability (Section 6.3);
    (c) Termination by the Company for Cause
    (Section 6.4); (d) Termination by the Company without
    Cause (Section 6.5); (e) Termination by Executive due
    to a Constructive Termination (Section 6.6); or
    (f) Voluntary Resignation (Section 6.7).

 

    6.2  By
    Death.  Executive’s employment and this
    Agreement shall terminate automatically upon the death of
    Executive. In such event:

 

    (a) Stock Awards.  The
    vesting of all outstanding Stock Awards held by Executive shall
    be accelerated so that the amount of shares vested under such
    Stock Awards shall equal that number of shares that would have
    been vested if Executive had continued to render services to the
    Company for 12 continuous months after the date of
    Executive’s termination of employment. All Stock Awards
    held by Executive that are vested at the time of termination
    (including any accelerated Stock Awards) will be exercisable in
    accordance with their terms for a period of one year after the
    termination date.

 

    (b) Bonus.  The Company shall pay
    to Executive’s beneficiaries or his estate, as the case may
    be, a lump sum amount equal to Executive’s Target Annual
    Bonus (as defined in Section 3.2) for the Company’s
    fiscal year in which Executive’s death occurs multiplied by
    a fraction, the numerator of which is the number of full months
    of employment by Executive in such fiscal year and the
    denominator of which is 12. Such amount shall be paid as soon as
    administratively practicable, but in no event later than March
    15 following the year in which Executive’s death occurred.

 

    (c) Accrued Compensation.  The
    Company shall pay to Executive’s beneficiaries or his
    estate, as the case may be, any accrued Base Salary, any vested
    deferred compensation (other than pension plan or profit-sharing
    plan benefits that will be paid in accordance with the
    applicable plan), any benefits under any plans of the Company
    (other than pension and profit-sharing plans) in which Executive
    is a participant to the full extent of Executive’s rights
    under such plans, any accrued vacation pay and any appropriate
    business expenses incurred by Executive in connection with his
    duties hereunder, all to the date of termination (collectively
    “Accrued Compensation”).

 

    (d) No Severance Compensation.  The
    compensation and benefits set forth in Sections 6.2(a)
    through (c) herein shall be the only compensation and
    benefits provided by the Company in the event of
    Executive’s death and no other severance compensation or
    benefits shall be provided.

 

    6.3  By Disability.  If
    Executive is prevented from performing his duties hereunder by
    reason of any physical or mental incapacity that results in
    Executive’s satisfaction of all requirements necessary to
    receive benefits under

    

    3

 

    the Company’s long-term disability plan due to a total
    disability, then, to the extent permitted by law, the Company
    may terminate the employment of Executive and this Agreement at
    or after such time. In such event, and if Executive signs the
    General Release set forth as Exhibit A or such other
    form of release as the Company may require (the
    “Release”) on or within the time period set forth
    therein, but in no event later than forty-five (45) days
    after the termination date and allows such Release to become
    effective, then:

 

    (a) Accrued Compensation.  The
    Company shall pay to Executive all Accrued Compensation (as
    defined in Section 6.2(c) herein).

 

    (b) Base Salary Continuation.  The
    Company shall continue to pay Executive’s Base Salary, less
    required withholdings, for a period of 12 months (the
    “Disability Base Salary Payments”); provided that the
    Disability Base Salary Payments shall be reduced by any
    insurance or other payments to Executive under policies and
    plans sponsored by the Company, even if premiums are paid by
    Executive. Subject to the provisions of Section 6.11, the
    Disability Base Salary Payments shall be paid in accordance with
    the Company’s standard payroll practices commencing with
    the first payroll period following the effectiveness of the
    Release.

 

    (c) Bonus.  The Company shall pay a
    lump sum amount equal to Executive’s Target Annual Bonus
    (as defined in Section 3.2) for the Company’s
    then-current fiscal year multiplied by a fraction, the numerator
    of which is the number of full months of employment by Executive
    in the current fiscal year and the denominator of which is 12.
    Such payment shall be made within ten (10) days following
    the Effective Date of the Release.

 

    (d) Stock Awards.  The vesting of
    all outstanding Stock Awards held by Executive shall be
    accelerated so that the amount of shares vested under such Stock
    Awards shall equal that number of shares which would have been
    vested if Executive had continued to render services to the
    Company for 12 continuous months after the date of
    Executive’s termination of employment.

 

    (e) Health Insurance Benefits.  To
    the extent provided by the federal COBRA law or, if applicable,
    state insurance laws, and by the Company’s current group
    health insurance policies, Executive will be eligible to
    continue Executive’s group health insurance benefits at
    Executive’s own expense. If Executive timely elects
    continued coverage under COBRA, the Company shall pay
    Executive’s COBRA premiums, and any applicable Company
    COBRA premiums, necessary to continue Executive’s
    then-current coverage for a period of 12 months after the
    date of Executive’s termination of employment; provided,
    however, that any such payments will cease if Executive
    voluntarily enrolls in a health insurance plan offered by
    another employer or entity during the period in which the
    Company is paying such premiums. Executive agrees to immediately
    notify the Company in writing of any such enrollment.

 

    (f) Disability Plans.  Nothing in
    this Section 6.3 shall affect Executive’s rights under
    any disability plan in which Executive is a participant.

 

    6.4  Termination by the Company for
    Cause.  

 

    (a) No Liability.  The
    Company may terminate Executive’s employment and this
    Agreement for Cause (as defined below) without liability at any
    time. In such event, the Company shall pay Executive all Accrued
    Compensation (as defined in Section 6.2(c) herein), but no
    other compensation or reimbursement of any kind, including
    without limitation, any severance compensation or benefits shall
    be paid, and thereafter the Company’s obligations hereunder
    shall terminate.

 

    (b) Definition of
    “Cause.”  For purposes of this
    Agreement, “Cause” shall mean one or more of the
    following:

 

    (i) Executive’s intentional commission of an act, or
    intentional failure to act, that materially injures the business
    of the Company; provided, however, that in no event shall
    any business judgment made in good faith by Executive and within
    Executive’s defined scope of authority constitute a basis
    for termination for Cause under this Agreement;

    

    4

 

    (ii) Executive’s intentional refusal or intentional
    failure to act in accordance with any lawful and proper
    direction or order of the Board of Directors, the Chief
    Executive Officer, or the individual to whom Executive reports.

 

    (iii) Executive’s material breach of Executive’s
    fiduciary, statutory, contractual, or common law duties to the
    Company (including any material breach of this Agreement, the
    Proprietary Information and Inventions Agreement, or the
    Company’s written policies);

 

    (iv) Executive’s indictment for or conviction of any
    felony or any crime involving dishonesty; or

 

    (v) Executive’s participation in any fraud or other
    act of willful misconduct against the Company;

 

    provided, however, that in the event that any of the
    foregoing events is reasonably capable of being cured, the
    Company shall provide written notice to Executive describing the
    nature of such event and Executive shall thereafter have ten
    (10) business days to cure such event.

 

    6.5  Termination by the Company without
    Cause.  

 

    (a) The Company’s Right.  The
    Company may terminate Executive’s employment and this
    Agreement without Cause (as defined in Section 6.4(b)
    herein) at any time by giving thirty (30) days advance
    written notice to Executive.

 

    (b) Severance Benefits.  If the
    Company terminates Executive’s employment without Cause,
    and if Executive signs the Release on or within the time period
    set forth therein (but in no event later than forty-five
    (45) days after the termination date) and allows such
    Release to become effective, then:

 

    (i) Accrued Compensation.  The
    Company shall pay to Executive all Accrued Compensation (as
    defined in Section 6.2(c) herein).

 

    (ii) Cash Compensation Amount
    Payments.  The Company shall pay Executive an
    amount calculated as follows: [Executive’s annual Base
    Salary + Executive’s Target Annual Bonus (as defined in
    Section 3.2 herein)] multiplied by 1.0 (the “Cash
    Compensation Amount”). Subject to the provisions of
    Section 6.11, the Cash Compensation Amount will be paid in
    equal installments on the Company’s standard payroll dates
    over a period of 12 months commencing with the first
    payroll period following the effectiveness of the Release.

 

    (iii) Stock Awards.  The vesting of
    all outstanding Stock Awards held by Executive shall be
    accelerated so that the amount of shares vested under such Stock
    Awards shall equal that number of shares which would have been
    vested if Executive had continued to render services to the
    Company for 12 continuous months after the date of
    Executive’s termination of employment.

 

    (iv) Health Insurance Benefits.  To
    the extent provided by the federal COBRA law or, if applicable,
    state insurance laws, and by the Company’s current group
    health insurance policies, Executive will be eligible to
    continue Executive’s group health insurance benefits at
    Executive’s own expense. If Executive timely elects
    continued coverage under COBRA, the Company shall pay
    Executive’s COBRA premiums, and any applicable Company
    COBRA premiums, necessary to continue Executive’s
    then-current coverage for a period of 12 months after the
    date of Executive’s termination of employment; provided,
    however, that any such payments will cease if Executive
    voluntarily enrolls in a health insurance plan offered by
    another employer or entity during the period in which the
    Company is paying such premiums. Executive agrees to immediately
    notify the Company in writing of any such enrollment.

 

    6.6  Termination by Executive due to a
    Constructive Termination.  

 

    (a) Executive’s
    Right.  Executive may resign his employment
    and terminate this Agreement at any time as a result of a
    Constructive Termination (as defined in Section 6.6(c)
    herein).

 

    (b) Severance Benefits.  If
    Executive resigns his employment and terminates this Agreement
    as a result of a Constructive Termination, and if Executive
    signs the Release on or within the time period set forth therein
    (but in no event later than forty-five (45) days after the
    termination date) and allows such Release to become effective,
    then Executive shall receive all of the severance benefits set
    forth in Section 6.5(b) herein.

    

    5

 

    (c) Definition of “Constructive
    Termination.”  For purposes of this
    Agreement, “Constructive Termination” shall mean a
    resignation of employment and termination of this Agreement by
    Executive for one or more of the following reasons:

 

    (i) A material reduction by the Company of Executive’s
    annual Base Salary;

 

    (ii) A relocation of Executive or the Company’s
    principal executive offices if Executive’s principal office
    is at such offices, to a location more than forty
    (40) miles from the location at which Executive is then
    performing his duties, except for an opportunity to relocate
    which is accepted by Executive in writing; or

 

    (iii) A material breach by the Company of any provision of
    this Agreement or any other enforceable written agreement
    between Executive and the Company; provided; however,
    that Executive must first provide the Company with written
    notice specifying the condition giving rise to a Constructive
    Termination within ninety (90) days following the initial
    existence of such condition; and Executive’s notice must
    specify that Executive intends to terminate his employment no
    earlier than thirty (30) days after providing such notice,
    and the Company must be given an opportunity to cure such
    condition within thirty (30) days following its receipt of
    such notice and avoid paying benefits.

 

    6.7  Voluntary
    Resignation.  Executive may resign his or her
    employment and terminate this Agreement at any time for any
    reason other than due to a Constructive Termination (as defined
    in Section 6.6(c) herein). In such event, the Company shall
    pay Executive all Accrued Compensation (as defined in
    Section 6.2(c) herein), but no other compensation or
    reimbursement of any kind, including without limitation, any
    severance compensation or benefits shall be paid, and thereafter
    the Company’s obligations hereunder shall terminate.

 

    6.8  Change In Control.

 

    (a) Severance Benefits.  If
    (i) within six months after the consummation of a Change in
    Control (as defined in Section 6.8(b) herein), (1) the
    Company terminates Executive’s employment and this
    Agreement without Cause pursuant to Section 6.5 herein or
    (2) Executive resigns his employment and terminates this
    Agreement as a result of a Constructive Termination pursuant to
    Section 6.6 herein, and (ii) in either event
    (1) or (2), Executive signs the Release on or within the
    time period set forth therein, but in no event later than
    forty-five (45) days after the termination date and allows
    such Release to become effective, then Executive shall receive
    the following severance benefits in lieu of any severance
    benefits set forth in Section 6.5(b) or Section 6.6(b)
    herein:

 

    (i) Accrued
    Compensation.  The Company shall pay to
    Executive all Accrued Compensation (as defined in
    Section 6.2(c) herein).

 

    (ii) CIC Cash Compensation Amount
    Payment.  The Company shall pay Executive an
    amount calculated as follows: [Executive’s annual Base
    Salary + Executive’s Target Annual Bonus (as defined in
    Section 3.2 herein)] multiplied by 1.5 (collectively, the
    “CIC Cash Compensation Amount”). The CIC Cash
    Compensation Amount will be paid in one lump sum within ten
    (10) days following the Effective Date of the Release.

 

    (iii) Cash Payment for Stock
    Awards.  Within ten (10) days following
    the Effective Date of the Release, the Company shall pay
    Executive a cash amount equal to the value, as of the date of
    the consummation of the Change in Control, of (1) all Stock
    Awards that are unvested at the time of termination of
    employment, and (2) all Stock Awards that are vested at the
    time of termination of employment and for which the shares
    subject to such Stock Awards have not yet been issued,
    including, without limitation, any unexercised stock options,
    unexercised stock appreciation rights, and unissued shares
    subject to a restricted stock unit award, provided, in either
    case, that such Stock Awards were held by Executive as of the
    date of consummation of the Change in Control, and all rights of
    Executive in such Stock Awards and any unvested shares of stock
    that previously may have been issued thereunder shall be
    extinguished as a result of such payment, with the result that
    such Stock Awards shall automatically terminate unexercised and
    unvested shares of stock previously issued shall automatically
    be reacquired by the Company or its successor. For purposes of
    the foregoing cash payment, (1) stock options and stock
    appreciation rights shall be valued on the basis of the
    difference between the value of the subject stock for purposes
    of the transaction constituting the Change of Control and the
    exercise or base price of the award, and (2) restricted
    stock, restricted stock units or other full value awards and
    shares of stock

    

    6

 

    acquired under Stock Awards shall be valued on the basis of the
    value of the subject stock for purposes of the transaction
    constituting the Change in Control.

 

    (iv) Health Insurance Benefits.  To
    the extent provided by the federal COBRA law or, if applicable,
    state insurance laws, and by the Company’s current group
    health insurance policies, Executive will be eligible to
    continue Executive’s group health insurance benefits at
    Executive’s own expense. If Executive timely elects
    continued coverage under COBRA, the Company shall pay
    Executive’s COBRA premiums, and any applicable Company
    COBRA premiums, necessary to continue Executive’s
    then-current coverage for a period of 18 months after the
    date of Executive’s termination of employment; provided,
    however, that any such payments will cease if Executive
    voluntarily enrolls in a health insurance plan offered by
    another employer or entity during the period in which the
    Company is paying such premiums. Executive agrees to immediately
    notify the Company in writing of any such enrollment.

 

    (b) Definition of “Change in Control.”
    For purposes of this Agreement, a “Change in
    Control” shall have occurred if at any time during
    Executive’s employment hereunder, any of the following
    events shall occur:

 

    (i) The Company is merged, or consolidated. or reorganized
    into or with another corporation or other legal person, and as a
    result of such merger, consolidation or reorganization less than
    50% of the combined voting power of the then-outstanding
    securities of such corporation or person immediately after such
    transaction are held in the aggregate by the holders of voting
    securities of the Company immediately prior to such transaction;

 

    (ii) The Company sells all or substantially all of its
    assets or any other corporation or other legal person and
    thereafter, less than 50% of the combined voting power of the
    then-outstanding voting securities of the acquiring or
    consolidated entity are held in the aggregate by the holders of
    voting securities of the Company immediately prior to such sale;

 

    (iii) There is a report filed after the date of this
    Agreement on Schedule 13 D or schedule 14 D-1 (or any
    successor schedule, form or report), each as promulgated
    pursuant to the Securities Exchange Act of l934 (the
    “Exchange Act”) disclosing that any person (as the
    term “person” is used in Section 13(d)(3) or
    Section 14(d)(2) of the Exchange Act) has become the
    beneficial owner (as the term beneficial owner is defined under
    Rule 13d-3
    or any successor rule or regulation promulgated under the
    Exchange Act) representing 50% or more of the combined voting
    power of the then-outstanding voting securities of the Company;

 

    (iv) The Company shall file a report or proxy statement
    with the Securities and Exchange Commission pursuant to the
    Exchange Act disclosing in response to item 1 of
    Form 8-X
    thereunder or Item 5(f) of Schedule 14 A thereunder
    (or any successor schedule, form or report or item therein) that
    the change in control of the Company has or may have occurred or
    will or may occur in the future pursuant to any then-existing
    contract or transaction; or

 

    (v) During any period of two (2) consecutive years,
    individuals who at the beginning of any such period constitute
    the directors of the Company cease for any reason to constitute
    at least a majority thereof unless the election to the
    nomination for election by the Company’s shareholders of
    each director of the Company first elected during such period
    was approved by a vote of at least two-thirds of the directors
    of the Company then still in office who were directors of the
    Company at the beginning of such period.

 

    (c) Parachute Payments.  

 

    (i) If any payment or benefit (including payments or
    benefits pursuant to this Agreement) that Executive would
    receive in connection with a Change in Control or otherwise (a
    “Payment”) (1) would constitute a “parachute
    payment” within the meaning of Section 280G of the
    Code, and (2) but for this sentence, would be subject to
    the excise tax imposed by Section 4999 of the Code (the
    “Excise Tax”), then the Company shall cause to be
    determined, before any amount of the Payment is paid to
    Executive, whether the total payments exceed 2.99 times
    Executive’s “base amount” within the meaning of
    Section 280G of the Code (the “Base Amount”) by
    15% or less, in which case such Payment shall be reduced to an
    amount that results in no portion of the Payment being subject
    to the Excise Tax (the “Reduced Payment”).

    

    7

 

    (ii) If a Reduced Payment is made, (x) the Payment
    shall be paid only to the extent permitted under the Reduced
    Payment alternative, and Executive shall have no rights to any
    additional payments
    and/or
    benefits constituting the Payment, and (y) reduction in
    payments
    and/or
    benefits shall occur in the following order unless Executive
    elects in writing a different order (provided, however,
    that such election shall be subject to Company approval if
    made on or after the date on which the event that triggers the
    Payment occurs): (1) reduction of cash payments;
    (2) cancellation of accelerated vesting of equity awards
    other than stock options; (3) cancellation of accelerated
    vesting of stock options; and (4) reduction of other
    benefits paid to Executive. In the event that acceleration of
    compensation from Executive’s equity awards is to be
    reduced, such acceleration of vesting shall be canceled in the
    reverse order of the date of grant unless Executive elects in
    writing a different order for cancellation.

 

    (iii) If it is determined that the Payment exceeds 2.99
    times Executive’s Base Amount by more than 15%, the Company
    shall pay the full amount of the Payment and Executive shall be
    entitled to receive an additional payment (a
    “Gross-Up
    Payment”) from the Company in an amount that after the
    payment of all taxes (including, without limitation,
    (1) any income or employment taxes, (2) any interest
    or penalties imposed with respect to such taxes, and
    (3) any additional Excise Tax on the
    Gross-Up
    Payment, Executive shall retain an amount equal to the full
    Excise Tax. The
    Gross-Up
    Payment shall be paid as soon as practicable following the date
    the Payment is made, but in no event later than the end of the
    Executive’s taxable year following the taxable year in
    which Executive has remitted (by withholding or otherwise) the
    Excise Tax.

 

    (iv) For purposes of determining the amount of the
    Gross-Up
    Payment, Executive shall be deemed to have: (x) paid
    federal income taxes at the highest marginal rate of federal
    income and employment taxation for the calendar year in which
    the Gross-Up
    Payment is to be made, and (y) paid applicable state and
    local income taxes at the highest rate of taxation for the
    calendar year in which the
    Gross-Up
    Payment is to be made, net of the maximum reduction in federal
    income taxes which could be obtained from deduction of such
    state and local taxes.

 

    (v) Except as otherwise provided herein, Executive shall
    not be entitled to any additional payments or other indemnity
    arrangements in connection with the Payment or the
    Gross-Up
    Payment.

 

    6.9  Mitigation.  Except as
    otherwise specifically provided herein, Executive shall not be
    required to mitigate the amount of any payment provided under
    this Agreement by seeking other employment or self-employment,
    nor shall the amount of any payment provided for under this
    Agreement be reduced by any compensation earned by Executive as
    a result of employment by another employer or through
    self-employment or by retirement benefits after the date of
    Executive’s termination of employment from the Company,
    except as provided herein.

 

    6.10  Coordination.  If upon
    termination of employment, Executive becomes entitled to rights
    under other plans, contracts or arrangements entered into by the
    Company, this Agreement shall be coordinated with such other
    arrangements so that Executive’s rights under this
    Agreement are not reduced, and that any payments under this
    Agreement offset the same types of payments otherwise provided
    under such other arrangements, but do not otherwise reduce any
    payments or benefits under such other arrangements to which
    Executive becomes entitled.

 

    6.11  Application of
    Section 409A.  If Executive is a
    “specified employee” within the meaning of
    409A(a)(2)(B)(i) of the Code, any installment payments of
    Disability Base Salary Payments pursuant to Section 6.3(b)
    or Cash Compensation Amounts pursuant to Section 6.5(b) or
    6.6(b) that are triggered by a separation from service shall be
    accelerated to the minimum extent necessary so that (a) the
    lesser of (y) the total cash severance payment amount, or
    (z) six (6) months of such installment payments are
    paid no later than March 15 of the calendar year following such
    termination, and (b) all amounts paid pursuant to the
    foregoing clause (a) will constitute separate payments for
    purposes of
    Section 1.409A-2(b)(2)
    of the Treasury Regulations and thus will be payable pursuant to
    the “short-term deferral” rule set forth in
    Section 1.409A-1(b)(4)
    of the Treasury Regulations. It is intended that if Executive is
    a “specified employee” within the meaning of
    Section 409A(a)(2)(B)(i) of the Code at the time of such
    separation from service the foregoing provision shall result in
    compliance with the requirements of
    Section 409A(a)(2)(B)(i) of the Code since payments to
    Executive will either be payable pursuant to the
    “short-term deferral” rule set forth in
    Section 1.409A-1(b)(4)
    of the Treasury Regulations or will not be paid until at least
    6 months after separation from service.

    

    8

 

    ARTICLE 7

    

 

    GENERAL
    PROVISIONS

 

    7.1  Governing Law.  The
    validity, interpretation, construction and performance of this
    Agreement and the rights of the parties thereunder shall be
    interpreted and enforced under California law without reference
    to principles of conflicts of laws. The parties expressly agree
    that inasmuch as the Company’s headquarters and principal
    place of business are located in California, it is appropriate
    that California law govern this Agreement.

 

    7.2  Assignment; Successors Binding
    Agreement.  

 

    (a) No Assignment.  Executive may
    not assign, pledge or encumber his interest in this Agreement or
    any part thereof.

 

    (b) Assumption by
    Successor.  The Company will require
    any successor (whether direct or indirect, by purchase, merger,
    consolidation or otherwise) to all or substantially all of the
    business
    and/or
    assets of the Company, by operation of law or by agreement in
    form and substance reasonably satisfactory to Executive, to
    assume and agree to perform this Agreement in the same manner
    and to the same extent that the Company would be required to
    perform it if no such succession had taken place.

 

    (c) This Agreement shall inure to the benefit of and be
    enforceable by Executive’s personal or legal
    representatives, executors, administrators, successors, heirs,
    distributee, devisees and legatees. If Executive should die
    while any amount is at such time payable to Executive hereunder,
    all such amounts, unless otherwise provided herein, shall be
    paid in accordance with the terms of this Agreement to
    Executive’s devisee, legates or other designee or, if there
    be no such designee, to his estate.

 

    7.3  Notice.  For the purposes
    of this Agreement, notices and all other communications provided
    for in this Agreement shall be in writing and shall be deemed to
    have been duly given when delivered or mailed by certified or
    registered mail, return receipt requested, postage prepaid,
    addressed to the respective addresses set forth below or to such
    other address as either party may have furnished to the other in
    writing in accordance herewith, except that notice of change of
    address shall be effective only upon receipt.

 

    To the Company:

 

    Neurocrine Biosciences, Inc.

    12790 El Camino Real

    San Diego, CA 92130

    Attn.: President & Chief Executive Officer

 

    To Executive:

 

    Haig Bozigian, Ph.D.

 

    7.4  Modification; Waiver; Entire
    Agreement.  This Agreement constitutes the
    complete, final and exclusive embodiment of the entire agreement
    between Executive and the Company with regard to this subject
    matter. It is entered into without reliance on any promise or
    representation, written or oral, other than those expressly
    contained herein, and it supersedes any other such promises,
    warranties or representations, including, without limitation,
    the Original Employment Agreement which shall have no further
    force or effect. No provisions of this Agreement may be
    modified, waived or discharged unless such waiver, modification
    or discharge is agreed to in writing signed by Executive and
    such officer as may be specifically designated by the Board of
    the Company. No waiver by either party hereto at any time of any
    breach by the other party of, or compliance with, any condition
    or provision of this Agreement to be performed by such other
    party shall be deemed a waiver of similar or dissimilar
    provisions or conditions at the same or any prior or subsequent
    time.

 

    7.5  Validity.  The invalidity
    or unenforceability of any provision of this Agreement shall not
    affect the validity or enforceability of any other provision of
    this Agreement, which shall remain in full force and effect.

 

    7.6  Controlling
    Document.  Except to the extent described in
    Section 6.l0, in case of conflict between any of the terms
    and condition of this Agreement and the document herein referred
    to, the terms and conditions of this Agreement shall control.

    

    9

 

    7.7  Executive
    Acknowledgment.  Executive acknowledges
    (a) that he has consulted with or has had the opportunity
    to consult with independent counsel of his own choice concerning
    this Agreement, and has been advised to do so by the Company,
    and (b) that he has read and understands the Agreement, is
    fully aware of its legal effect, and has entered into it freely
    based on his own judgment.

 

    7.8  Dispute Resolution.  To
    ensure the rapid and economical resolution of disputes that may
    arise in connection with Executive’s employment, Executive
    and the Company agree that any and all disputes, claims, or
    causes of action, in law or equity, arising from or relating to
    the enforcement, breach, performance, execution, or
    interpretation of this Agreement, Executive’s employment,
    or the termination of that employment, shall be resolved, to the
    fullest extent permitted by law, by final, binding and
    confidential arbitration in San Diego, California conducted
    before a single arbitrator by Judicial Arbitration and Mediation
    Services, Inc. (“JAMS”) or its successor, under the
    then applicable JAMS rules. By agreeing to this arbitration
    procedure, both Executive and the Company waive the right to
    resolve any such dispute through a trial by jury or judge or by
    administrative proceeding. The arbitrator shall: (a) have
    the authority to compel adequate discovery for the resolution of
    the dispute and to award such relief as would otherwise be
    permitted by law; and (b) issue a written arbitration
    decision including the arbitrator’s essential findings and
    conclusions and a statement of the award. The Company shall pay
    all of JAMS’ arbitration fees. Nothing in this letter
    agreement shall prevent either Executive or the Company from
    obtaining injunctive relief in court if necessary to prevent
    irreparable harm pending the conclusion of any arbitration. The
    parties agree that the arbitrator shall award reasonable
    attorneys fees, costs, and all other related expenses to the
    prevailing party in any action brought hereunder, and the
    arbitrator shall have discretion to determine the prevailing
    party in an arbitration where multiple claims may be at issue.

 

    7.9  Remedies.  

 

    (a) Injunctive Relief.  The parties
    agree that the services to be rendered by Executive hereunder
    are of a unique nature and that in the event of any breach or
    threatened breach of any of the covenants contained herein, the
    damage or imminent damage to the value and the goodwill of the
    Company’s business will be irreparable and extremely
    difficult to estimate, making any remedy at law or in damages
    inadequate. Accordingly, the parties agree that the Company
    shall be entitled to injunctive relief against Executive in the
    event of any breach or threatened breach of any such provisions
    by Executive, in addition to any other relief (including damage)
    available to the Company under this Agreement or under law.

 

    (b) Exclusive.  Both parties agree
    that the remedy specified in Section 7.9(a) above is not
    exclusive of any other remedy for the breach by Executive of the
    terms hereof.

 

    7.10  Counterparts.  This
    Agreement may be executed in one or more counterparts, all of
    which taken together shall constitute one and the same Agreement.

 

    Executed by the parties as follows:

 

	 	 	 
	
    EXECUTIVE
	
 
	
    NEUROCRINE BIOSCIENCES,
    INC

	 

	

    By: /s/  
Haig
    Bozigian

    

	
 
	

    By: /s/  
Richard
    Ranieri

    

	
 
	
 
	
 

	

    Date: August 14, 2007

    

	
 
	

    Date: August 14, 2007

    

    

    10

 

    EXHIBIT A

    GENERAL RELEASE

 

    Pursuant to the terms of the Employment Agreement between
    Neurocrine Biosciences, Inc. (the “Company”) and Haig
    Bozigian, Ph.D. (“Executive”) dated
    August 1, 2007 (the “Agreement”), the parties
    hereby enter into the following General Release (the
    “Release”):

 

    1.  Accrued Salary and
    Vacation.  Executive understands that, on the
    last date of Executive’s employment with the Company, the
    Company will pay Executive any accrued salary and accrued and
    unused vacation to which Executive is entitled by law,
    regardless of whether Executive signs this Release.

 

    2.  General
    Release.  Executive hereby generally and
    completely releases the Company and its directors, officers,
    employees, shareholders, partners, agents, attorneys,
    predecessors, successors, parent and subsidiary entities,
    insurers, affiliates, and assigns (collectively the
    “Released Parties”) of and from any and all claims,
    liabilities and obligations, both known and unknown, arising out
    of or in any way related to events, acts, conduct, or omissions
    occurring at any time prior to or at the time that Executive
    signs this Release.

 

    3.  Scope of Release.  This
    general release includes, but is not limited to: (1) all
    claims arising out of or in any way related to Executive’s
    employment with the Company or the termination of that
    employment; (2) all claims related to Executive’s
    compensation or benefits from the Company, including salary,
    bonuses, commissions, vacation pay, expense reimbursements,
    severance pay, fringe benefits, stock, stock options, or any
    other ownership or equity interests in the Company; (3) all
    claims for breach of contract, wrongful termination, and breach
    of the implied covenant of good faith and fair dealing
    (including claims based on or arising under the Agreement);
    (4) all tort claims, including claims for fraud,
    defamation, emotional distress, and discharge in violation of
    public policy; and (5) all federal, state, and local
    statutory claims, including claims for discrimination,
    harassment, retaliation, attorneys’ fees, or other claims
    arising under the federal Civil Rights Act of 1964 (as amended),
    the federal Americans with Disabilities Act of 1990, the federal
    Age Discrimination in Employment Act (as amended)
    (“ADEA”), the federal Family and Medical Leave Act,
    the California Labor Code (as amended), the California Family
    Rights Act, and the California Fair Employment and Housing Act
    (as amended).

 

    4.  ADEA Waiver.  Executive
    acknowledges that Executive is knowingly and voluntarily waiving
    and releasing any rights Executive may have under the ADEA, and
    that the consideration given for the waiver and release in the
    preceding paragraph is in addition to anything of value to which
    Executive is already entitled. Executive further acknowledges
    that Executive has been advised by this writing that:
    (1) Executive’s waiver and release do not apply to any
    rights or claims that may arise after the date Executive signs
    this Release; (2) Executive should consult with an attorney
    prior to signing this Release (although Executive may choose
    voluntarily not to do so); (3) Executive has twenty-one
    (21) days to consider this Release (although Executive may
    choose voluntarily to sign it earlier); (4) Executive has
    seven (7) days following the date Executive signs this
    Release to revoke it by providing written notice of revocation
    to the Company’s Chief Executive Officer; and (5) this
    Release will not be effective until the date upon which the
    revocation period has expired, which will be the eighth calendar
    day after the date Executive signs it provided that Executive
    does not revoke it (the “Effective Date”).

 

    5.  Section 1542
    Waiver.  EXECUTIVE UNDERSTANDS THAT THIS
    AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.
    Executive acknowledges that Executive has read and understands
    Section 1542 of the California Civil Code which reads as
    follows: “A general release does not extend to claims which
    the creditor does not know or suspect to exist in his or her
    favor at the time of executing the release, which if known by
    him or her must have materially affected his or her settlement
    with the debtor.” Executive hereby expressly waives and
    relinquishes all rights and benefits under that section and any
    law or legal principle of similar effect in any jurisdiction
    with respect to Executive’s respective release of claims
    herein, including but not limited to Executive’s release of
    unknown and unsuspected claims.

 

    6.  Excluded
    Claims.  Executive understands that
    notwithstanding the foregoing, the following are not included in
    the Released Claims (the “Excluded Claims”):
    (i) any rights or claims for indemnification Executive may
    have pursuant to any written indemnification agreement to which
    he is a party, the charter, bylaws, or operating agreements of
    any of the Released Parties, or under applicable law; or
    (ii) any rights which are not waivable as a matter of law.
    In addition, Executive understands that nothing in this release
    prevents Executive from filing,

    

    11

 

    cooperating with, or participating in any proceeding before the
    Equal Employment Opportunity Commission, the Department of
    Labor, or the California Department of Fair Employment and
    Housing, except that Executive acknowledges and agrees that
    Executive shall not recover any monetary benefits in connection
    with any such claim, charge or proceeding with regard to any
    claim released herein. Executive hereby represents and warrants
    that, other than the Excluded Claims, Executive is not aware of
    any claims he has or might have against any of the Released
    Parties that are not included in the Released Claims.

 

    7.  Executive
    Representations.  Executive hereby represents
    that Executive has been paid all compensation owed and for all
    hours worked; Executive has received all the leave and leave
    benefits and protections for which Executive is eligible,
    pursuant to the Family and Medical Leave Act, the California
    Family Rights Act, or otherwise; and Executive has not suffered
    any on-the-job injury for which Executive has not already filed
    a workers’ compensation claim.

 

    8.  Nondisparagement.  Executive
    agrees not to disparage the Company, its parent, or its or their
    officers, directors, employees, shareholders, affiliates and
    agents, in any manner likely to be harmful to its or their
    business, business reputation, or personal reputation (although
    Executive may respond accurately and fully to any question,
    inquiry or request for information as required by legal process).

 

    9.  Cooperation.  Executive
    agrees not to voluntarily (except in response to legal
    compulsion) assist any third party in bringing or pursuing any
    proposed or pending litigation, arbitration, administrative
    claim or other formal proceeding against the other party, or
    against the Company’s parent or subsidiary entities,
    affiliates, officers, directors, employees or agents. Executive
    further agrees to reasonably cooperate with the other party, by
    voluntarily (without legal compulsion) providing accurate and
    complete information, in connection with such other party’s
    actual or contemplated defense, prosecution, or investigation of
    any claims or demands by or against third parties, or other
    matters, arising from events, acts, or failures to act that
    occurred during the period of Executive’s employment by the
    Company.

 

    10.  No Admission of
    Liability.  The parties agree that this
    Release, and performance of the acts required by it, does not
    constitute an admission of liability, culpability, negligence or
    wrongdoing on the part of anyone, and will not be construed for
    any purpose as an admission of liability, culpability,
    negligence or wrongdoing by any party
    and/or by
    any party’s current, former or future parents,
    subsidiaries, related entities, predecessors, successors,
    officers, directors, shareholders, agents, employees and
    assigns. The parties specifically acknowledge and agree that
    this Release is a compromise of disputed claims and that the
    Company denies any liability for any matter released herein.

 

	 	 	 
	
    Neurocrine
    Biosciences, Inc.:
	
 
	
    Executive:

	 

	

    By: ­
    ­

	
 
	
    By: ­
    ­

	
 
	
 
	
 

	

    Date: ­
    ­

	
 
	
    Date: ­
    ­

    

    12Exhibit
        4.3

      

      2007
        RESTRICTED SHARE AND UNIT PLAN FOR

      EMPLOYEES
        OF COMPASS BANCSHARES, INC. AND ITS SUBSIDIARIES

      

      SECTION
        1. Purpose of the Plan; Definitions. The purpose of the 2007 Restricted
        Share and Unit Plan for Employees of Compass Bancshares, Inc. and its
        Subsidiaries (the “Plan”) is to provide incentives to certain officers and key
        employees of Compass (as defined herein) and its subsidiaries so that, among
        other things, such officers and employees are associated with the growth
        and
        success of Compass and its ultimate parent, Banco Bilbao Vizcaya Argentaria,
        S.A., a bank organized and existing under the Laws of Spain (the
“Company”).

      

      For
        purposes of the Plan, the following terms shall be defined as set forth
        below:

      

      (a)
“ADS”
        means an American Depositary Share representing one Share (which ratio may
        be
        changed from time to time) as evidenced by one American Depositary
        Receipt.

      

      (b)
        “Award” means any Restricted Shares or Restricted Share Units granted under the
        Plan.

      

      (c)
“Award
        Agreement” means any written agreement, contract or other instrument or document
        evidencing an Award granted under the Plan.

      

      (d)
        “Committee” means the Incentive Compensation Committee, which shall consist of
        three or more directors or officers of Compass or any affiliate of Compass
        or
        other individuals appointed by the board of directors of Compass.

      

      (e)
        “Compass” means Compass Bancshares, Inc., a Delaware corporation, and any
        successor entity thereto.

      

      (f)
        “Eligible Employee” means any officer or employee of Compass or any entity that
        directly or indirectly through one or more intermediaries is controlled by
        Compass who is in a position in which his or her decisions and/or actions
        impact
        the performance of the Company and/or Compass and who the Committee determines
        to be an Eligible Employee.

      

      (g)
        “Participant” means an Eligible Employee designated to be granted an
        Award.

      

      (h)
        “Restricted Shares” means an Award of ADSs granted to a Participant pursuant to
        and subject to the terms and conditions set forth in this Plan.

      

      (i)
        “Restricted Share Units” means an Award of a unit representing an obligation of
        Compass to deliver one ADS for each such unit granted to a Participant pursuant
        to and subject to the terms and conditions set forth in this Plan.

      

      (j)
        “Share” means one ordinary share of the Company with a nominal value of 49 Euro
        cents.

      

      SECTION
        2. Administration.

      

      (a)
        The
        Plan shall be administered by the Committee. The Committee shall have full
        and
        final authority in its discretion (i) to interpret the provisions of the
        Plan
        (and any Award Agreement) and to decide all questions of fact arising in
        its
        application, (ii) to designate Participants, (iii) to determine the Participants
        to whom Awards shall be made under the Plan, (iv) to determine the amount,
        size,
        terms and conditions of each such Award, (v) to determine and establish
        additional terms and conditions not 

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      inconsistent
        with the Plan for any Award granted to a Participant in connection with the
        Plan, (vi) to determine the time when Awards will be granted, (vii) to adopt,
        alter and repeal such administrative rules, guidelines and practices governing
        the Plan as it shall, from time to time, deem advisable and (viii) to make
        all
        other determinations necessary or advisable for the administration of the
        Plan.  In addition and notwithstanding the foregoing, on behalf of the
        Company the Committee shall grant under this Plan the award contemplated
        by
        Section 4(b) of the Amended and Restated Employment Agreement, dated as of
        September 6, 2007, as further amended by that certain letter agreement dated
        December 12, 2007 (the “Employment Agreement”), between D. Paul Jones, Jr. and
        the Company, Compass, and Compass Bank pursuant to the terms set forth
        therein.

      

      (b)
        A
        majority of the Committee shall constitute a quorum, and the action of a
        majority of members of the Committee present at any meeting at which a quorum
        is
        present shall be the act of the Committee. The Committee may also act by
        unanimous written consent. Any decision made, or action taken, by the Committee
        arising out of or in connection with the interpretation and administration
        of
        the Plan shall be final, conclusive and nonappeallable.

      

      (c)
        Neither the Committee nor any member thereof shall be liable for any act,
        omission, interpretation, construction or determination made in connection
        with
        the Plan in good faith, and the members of the Committee may be entitled
        to
        indemnification and reimbursement by Compass in respect of any claim, loss,
        damage or expense (including attorneys’ fees) arising therefrom to the fullest
        extent permitted by law and under any director’s and officers’ liability
        insurance that may be in effect from time to time. In addition, no member
        of the
        Committee and no director, officer or employee of Compass or its subsidiaries
        and affiliates shall be liable for any act, or failure to act hereunder,
        by any
        other member or other director, officer or employee of Compass or its
        subsidiaries and affiliates or by any agent to whom duties in connection
        with
        the administration of this Plan have been delegated or for any act or failure
        to
        act by such member or such director, officer or employee, in all events except
        in circumstances involving such member’s or such director’s, officer’s or
        employee’s bad faith, gross negligence, intentional fraud or violation of a
        statute.

      

      (d)
        The
        Committee may, in its sole discretion, delegate any of its powers to grant
        Awards under the Plan to any officer of Compass deemed appropriate by the
        Committee; provided, however, that no officer to whom the power to grant
        Awards
        under the Plan has been delegated shall have the power to grant Awards under
        the
        Plan to himself or herself.

      

      SECTION
        3. Eligibility; Participants. Any Eligible Employee shall be eligible
        to be designated a Participant.

      

      SECTION
        4. Awards Under the Plan. Awards by the Committee under the Plan may be
        in the form of Restricted Shares or Restricted Share Units only.

      

      SECTION
        5. ADSs Subject to Plan. The total number of ADSs reserved and
        available for distribution under the Plan shall be 1,320,911, which includes
        approximately 157,000 required to satisfy the Company’s obligation to award
        restricted stock to Mr. D. Paul Jones, Jr. pursuant to Section 4(b) of the
        Employment Agreement. Such ADSs shall consist of ADSs purchased or to be
        purchased from time to time in open-market or in private transactions by
        or on
        behalf of Compass. Any ADSs subject to an Award which are forfeited by a
        Participant shall be added back to the total number of ADSs reserved and
        available for distribution under the Plan. In the event of any change in
        the
        outstanding number of Shares of the Company underlying the ADSs by reason
        of a
        dividend or distribution in Shares, a Share split, recapitalization, merger,
        consolidation, split-up, combination, exchange of shares or otherwise, or
        in the
        case of any change in the ratio of ADSs to Shares, the board of directors
        of
        Compass or the Committee shall adjust the number of ADSs which may be issued
        under the Plan and the board of directors of 

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

       

      Compass
        or
        the Committee shall provide for an equitable adjustment of any ADSs issuable
        pursuant to Awards outstanding under the Plan.

      

      SECTION
        6. Effective Date.  The Plan shall be effective as of October
        22, 2007, provided that no Award shall be made under the Plan unless such
        Award
        shall comply with all applicable laws, including without limitation, the
        Securities Act of 1933, as amended, the Securities Exchange Act of 1934,
        as
        amended, the rules and regulations promulgated thereunder, and the requirements
        of any stock exchange upon which the Shares may then be listed.

      

      SECTION
        7. Restricted Share Awards.

      

      (a)
        Administration. The Committee shall determine the Eligible Employees to whom
        and
        the time or times at which grants of Restricted Shares will be made, the
        number
        of Restricted Shares to be awarded, the period of time during which the transfer
        of such Restricted Shares is restricted and all other terms and conditions
        of
        such Awards, which terms and conditions shall not be inconsistent with the
        terms
        and conditions of the Plan. The Committee may also condition the grant of
        Restricted Shares, and the terms and conditions applicable to such Restricted
        Shares, upon the attainment of specified performance goals or such other
        criteria as the Committee may determine, in its sole discretion. The terms
        and
        conditions made applicable to Restricted Shares need not be the same with
        respect to each Participant.

      

      (b)
        Awards and Certificates. Each Award of Restricted Shares shall be evidenced
        by an Award Agreement (a “Restricted Share Award Agreement”) in a form that is
        not inconsistent with the Plan and that the Committee may from time to time
        approve.

      

      (i)
        The
        Committee may, but need not, require as a condition of the effectiveness
        of an
        Award of Restricted Shares that the Award be affirmatively accepted by the
        Participant’s executing a Restricted Share Award Agreement within a designated
        period (not to exceed ninety (90) days) after the award date.

      

      (ii)
        Restricted Shares granted under the Plan may be evidenced in such manner
        as the
        Committee shall determine.  If certificates representing Restricted
        Shares are registered in the name of a Participant, such certificates shall
        bear
        an appropriate legend referring to the terms, conditions and restrictions
        applicable to such Restricted Shares, and, unless otherwise determined by
        the
        Committee, Compass or its designee shall retain physical possession of the
        certificate and the Participant shall deliver a stock power to Compass, endorsed
        in blank, relating to the Restricted Shares covered by such Award.

      

      (c)
        Restrictions and Conditions. The Restricted Shares awarded pursuant to this
        Plan shall be subject to the following restrictions and conditions:

      

      (i)
        Subject to the provisions of this Plan and the Restricted Share Award
        Agreements, from the date of grant through such period as may be set by the
        Committee (the “Restriction Period”), the Participant shall not be permitted to
        sell, transfer, pledge or assign Restricted Shares awarded under the Plan.
        Within these limits, the Committee may, in its sole discretion, provide for
        the
        lapse of such restrictions in installments and may accelerate or waive such
        restrictions in whole or in part based on performance and/or such other factors
        as the Committee may determine, in its sole discretion.

      

      (ii)
        Except as provided in subsection (c)(i) of this Section 7, to the extent
        practicable, the Participant shall have, with respect to the Restricted Shares,
        all of the rights of a holder of ADSs as defined by that certain depository
        agreement between the ADS depository and the Company, including the right
        to
        vote and to receive any dividends. Dividends paid in Shares or Shares received
        in connection with a Share split with respect to Restricted Shares shall
        be
        subject to the same restrictions as on such 

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      Restricted
        Shares.

      

      (iii)
        Subject to the provisions of the Restricted Share Award Agreement and this
        Section 7, upon termination of employment for any reason during the Restriction
        Period, all Restricted Shares still subject to restriction shall be forfeited
        by
        the Participant.

      

      (iv)
        The
        Committee may, in its sole discretion, waive in whole or in part any or all
        restrictions with respect to such Participant’s Restricted Shares.

      

      SECTION
        8. Restricted Share Unit Awards.

      

      (a)
        Administration. The Committee shall determine the Eligible Employees to
        whom and the time or times at which grants of Restricted Share Units will
        be
        made, the number of Restricted Share Units to be awarded, the period of time
        during which the Restricted Share Units will become vested and all other
        terms
        and conditions of such Awards, which terms and conditions shall not be
        inconsistent with the terms and conditions of the Plan. The Committee may
        also
        condition the grant of Restricted Share Units, and the terms and conditions
        applicable to such Restricted Share Units, upon the attainment of specified
        performance goals or such other criteria as the Committee may determine,
        in its
        sole discretion. The terms and conditions made applicable to Restricted Share
        Units need not be the same with respect to each Participant.

      

      (b)
        Awards. Each Award of Restricted Share Units shall be evidenced by an
        Award Agreement (a “Restricted Share Unit Award Agreement”) in a form that is
        not inconsistent with the Plan and that the Committee may from time to time
        approve.  The Committee may, but need not, require as a condition of
        the effectiveness of an Award of Restricted Share Units that the Award be
        affirmatively accepted by the Participant’s executing a Restricted Share Unit
        Award Agreement within a designated period (not to exceed ninety (90) days)
        after the award date.

      

      (c)
        Restrictions and Conditions. The Restricted Share Units awarded
        pursuant to this Plan shall be subject to the following restrictions and
        conditions:

      

      (i)
        Subject to the provisions of this Plan and the Restricted Share Unit Award
        Agreements, from the date of grant through such vesting period as may be
        set by
        the Committee (the “Unit Restriction Period”), the Participant shall not have
        any legal ownership or any other rights relating to the ADSs that are the
        subject of the Restricted Share Units.  The participant shall not be
        entitled to any dividend or have any voting rights or any other rights as
        a
        shareholder of the Company until and unless the ADSs that are the subject
        of the
        Restricted Share Units become vested and are transferred to the
        Participant.

      

      (ii)
        Upon
        the vesting of the Restricted Share Units, the ADSs which are the subject
        of the
        vested Restricted Share Units shall be transferred to the Participant as
        soon as
        administratively practicable following the date that such Restricted Share
        Units
        vest but in no event later than March 15th of the year following the year
        in
        which such Restricted Share Units become vested.

      

      (iii)
        Subject to the provisions of the Restricted Share Unit Award Agreement and
        this
        Section 8, upon termination of employment for any reason during the Unit
        Restriction Period, all Restricted Share Units which remain unvested on the
        date
        of such termination of employment shall be forfeited by the
        Participant.

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      (iv)
        The
        Committee may, in its sole discretion, accelerate in whole or in part any
        Unit
        Restriction Period and waive any and all restrictions or conditions, in whole
        or
        in part, with respect to such Participant’s Restricted Share Units.

      

      SECTION
        9. General Provisions.

      

      (a)
        Governmental or Other Regulations. Each Award under the Plan shall be
        subject to the requirement that if, at any time, the Committee shall determine
        that (i) the listing, registration or qualification of the ADSs subject or
        related thereto upon any securities exchange or under any state, federal
        or
        foreign law, (ii) the consent or approval of any government regulatory
        authority, or (iii) an agreement by the recipient of an Award with respect
        to
        the disposition of the ADSs, is necessary or desirable as a condition of,
        or in
        connection with, the granting of such Award or the delivery of ADSs thereunder,
        such Award may not be consummated in whole or in part unless such listing,
        registration, qualification, consent, approval or agreement shall have been
        effected or obtained free of any conditions not acceptable to the Committee.
        As
        a condition to the grant of an Award under the Plan, the Participant shall
        agree, and each such Participant shall be deemed to have agreed by virtue
        of his
        or her acceptance of an Award or any benefit or value derived from an Award,
        to
        execute any documents, to make any representations, to effect any restrictions
        on transferability and to take any action which in the good faith belief
        of the
        Committee is required by any applicable law, ruling or regulation.

      

      (b)
No
        Additional Rights. Nothing in the Plan, any Award, or in any agreement
        entered into pursuant to the Plan shall confer upon any Participant the right
        to
        continue in the employment of Compass or any of its subsidiaries or affect
        any
        right which Compass or any of its subsidiaries may have to terminate the
        employment of the Participant.

      

      (c)
        Withholding. Whenever Compass is required to transfer ADSs under the
        Plan, Compass or any subsidiary of Compass shall have the right to require
        the
        recipient to remit to Compass or such subsidiary, or provide indemnification
        satisfactory to Compass or such subsidiary for, an amount sufficient to satisfy
        any foreign, federal, state or local withholding tax requirements prior to
        the
        transfer of such ADSs. In the discretion of the Committee, Compass or any
        subsidiary may allow a Participant to cause any such withholding obligation
        to
        be satisfied by electing to (i) sell ADSs in the market having a fair market
        value equal to the amount of any required tax withholdings or (ii) have Compass
        withhold ADSs otherwise available for delivery to the Participant; provided
        that
        such ADSs shall have a fair market value (as determined by the Committee
        in its
        sole discretion) on the date the tax is to be determined in an amount equal
        to
        the minimum statutory total tax which could be imposed on the
        transaction.

      

      (d)
        Non-Assignability. Unless otherwise determined by the Committee and
        reflected in the applicable Award Agreement, no Award under the Plan shall
        be
        assignable or transferable by a Participant except by will or by the laws
        of
        descent and distribution. A transferee of an Award shall have only those
        rights
        that the Participant would have had had the Award not been transferred. In
        addition, if the Committee allows an Award to be transferable or assignable,
        such Award shall be subject to such additional terms and conditions as the
        Committee deems appropriate.

      

      (e)
        Unfunded Status of Plan. The Plan is intended to constitute an
“unfunded” plan for incentive compensation. Nothing set forth herein shall
        give
        any such Participant any rights that are greater than those of a general
        creditor of Compass. In its sole discretion, the Committee may authorize
        the
        creation of trusts or other arrangements to meet the obligations created
        under
        the Plan to deliver ADSs with respect to Awards hereunder; provided, however,
        that the existence of such trusts or other arrangements is consistent with
        the
        unfunded status of the Plan.

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      
 

      (f)
        Non-Uniform Determination. The Committee’s determinations under the
        Plan (including, without limitation, determinations of the Eligible Employees
        to
        receive Awards, the form, amount and timing of such Awards, the terms and
        provisions of Awards and the Award Agreements) need not be uniform and may
        be
        made by it selectively among Eligible Employees who receive, or are eligible
        to
        receive, Awards under the Plan, whether or not such Eligible Employees are
        similarly situated.

      

      (g)
        Amendment or Termination. The Committee or the board of directors of
        Compass may amend, modify, suspend or terminate the Plan at any time. The
        termination or any modification, suspension or amendment of the Plan shall
        not
        adversely affect a Participant's rights under an Award previously granted
        without the consent of such Participant. The Committee or the board of directors
        of Compass may amend the terms of any Award theretofore granted, prospectively
        or retroactively, but no such amendment shall impair the rights of any
        Participant or permitted transferee without his or her consent.

      

      (h)
No
        Restriction on Right of Company to Effect Corporate Changes. Nothing in the
        Plan shall affect the right or power of the Company or Compass or their
        shareholders to make or authorize any or all adjustments, recapitalizations,
        reorganizations or other changes in the Company’s or Compass’ capital structure
        or its business, or any merger or consolidation of the Company or Compass,
        or
        the dissolution or liquidation of the Company or Compass, or any sale or
        transfer of all or any part of its assets or business of the Company or Compass,
        or any other act or proceeding, whether of a similar character or
        otherwise.

      

      (i)
        Award Agreement. The prospective recipient of an Award under the Plan
        shall execute an Award Agreement evidencing the Award and deliver a fully
        executed copy thereof to Compass if the Committee determines to impose such
        a
        requirement as a condition to the effectiveness of an Award.

      

      (j)
        Construction of Plan. The validity, interpretation, and administration
        of the Plan and of any rules, regulations, determinations, or decisions made
        thereunder, and the rights of any and all Eligible Employees or Participants
        having or claiming to have any interest therein or thereunder, shall be
        determined exclusively in accordance with the laws of the State of
        Alabama.

      

      (k)
        Section 409A of the Internal Revenue Code. The Plan shall be
        administered, operated, and interpreted such that all Awards granted hereunder
        are not considered deferred compensation subject to Section 409A of the United
        States Internal Revenue Code of 1986, as amended (the “Code”) and the Committee
        shall have the discretion to modify or amend any Award granted hereunder
        and any
        Award Agreement (and may do so retroactively); provided that any such
        modification or amendment is necessary to cause such Award to be exempt from
        Section 409A of the Code and is not materially prejudicial to the Company,
        Compass and the affected Participant.

      
6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]