Document:

Exhibit 10.3

MARUBENI
PAYMENT GUARANTY

This PAYMENT
GUARANTY, dated as of December 11, 2006 (this “Guaranty”), is made by
Marubeni Corporation, a corporation formed under the laws of Japan (“Guarantor”),
in favor of Mirant Asia-Pacific Ventures, Inc., a Delaware corporation (“Ventures”), and Mirant Asia-Pacific Holdings, Inc., a
Delaware corporation (“Holdings” and, each of Ventures and Holdings, a “Seller” and together, “Sellers”).

W I T N E S S E T
H :

WHEREAS, Sellers
and Tokyo Crimson Energy Holdings Corporation, a company existing and organized
under the laws of the Cayman Islands (Tokyo Crimson Energy Holdings Corporation
and its successors by law and permitted assigns, “Buyer”), have entered
into that certain Stock and Note Purchase Agreement, dated as of the date of
this Guaranty (as it may be amended, modified or supplemented from time to time
in accordance with its terms, the “Stock and Note Purchase Agreement”),
for the purchase by Buyer of all of the ordinary shares of Mirant Asia-Pacific
Limited, a Bermuda exempted company, and certain intercompany notes held by
Mirant Sweden International AB (publ), a public limited liability company
organized under the laws of Sweden;

WHEREAS, Guarantor
is an indirect fifty percent (50%) shareholder of Buyer; and

WHEREAS, in
connection with the execution of the Stock and Note Purchase Agreement, the
parties hereto wish to enter into this Guaranty pursuant to which Guarantor
agrees, subject to the terms, conditions and limitations stated herein, to
provide a guaranty of the payment obligations of Buyer under the Stock and Note
Purchase Agreement.

NOW, THEREFORE, in
consideration of the mutual terms, conditions and other agreements set forth
herein, the receipt and sufficiency of which are hereby acknowledged, intending
to be legally bound hereby, the parties hereto agree as follows:

Section
1.               Except as otherwise
defined herein, capitalized terms used herein shall have the meanings given to
them in the Stock and Note Purchase Agreement.

Section
2.               Guarantor
hereby irrevocably, absolutely and unconditionally guarantees the full and
timely satisfaction by Buyer of all of Buyer’s payment obligations to Sellers
under the Stock and Note Purchase Agreement and the other documents executed
and delivered by Buyer to Sellers in connection with the closing of the
transactions contemplated under the Stock and Note Purchase Agreement
(collectively and, together with the Stock and Note Purchase Agreement, the “Closing
Documents”), including, without limitation, the payment of any and all
Damages arising under the Closing Documents for which Buyer is liable to
Sellers (the “Guaranteed Obligations”); provided that Guarantor’s
aggregate liability under this Guaranty (including, without limitation, this
Section 2) shall not, in any event and under any circumstance and
notwithstanding anything to the contrary contained in this Guaranty or any agreement or document related hereto,
exceed the amount (such amount, the “Guaranty Limit”) that is equal to
the positive mathematical result of (x) three hundred

 

million US dollars (US$300,000,000) minus (y) the sum
of (i) fifty (50%) percent of any and all payments made by Buyer to Seller
under the Stock and Note Purchase Agreement (including, without limitation, any
payments in respect of the Purchase Price) and under the other Closing
Documents and (ii)
any and all amounts drawn against the Letter of Credit procured by Guarantor
pursuant to Section 1.7 of the Stock and Note Purchase Agreement.  Guarantor agrees that, in the event that
Buyer fails to timely satisfy any of its payment obligations to Sellers under
the Closing Documents, then Guarantor will pay, subject to at all times the
Guaranty Limit, such Guaranteed Obligations in the place and stead of Buyer; it
being acknowledged and agreed that the Guaranty Limit shall only apply as a
limitation of Guarantor’s liability and payment obligations under this Guaranty
and shall not apply as a limitation of Buyer’s liability and payment
obligations under the Closing Documents. 
In the event Buyer becomes obligated to pay any Guaranteed Obligations
and fails to timely pay such obligations in accordance with the terms of the
Closing Documents, then Sellers may provide written notice to Guarantor
demanding that Guarantor either cause Buyer to pay the Guaranteed Obligations
or to pay, subject at all times to the Guaranty Limit, such Guaranteed
Obligations in the place and stead of Buyer.

Section
3.               Guarantor represents and
warrants to Sellers as follows:

(a)           It is duly organized, validly
existing, and in good standing under the laws of Japan.  It has the power and authority to execute and
deliver this Guaranty and to perform its obligations hereunder.

(b)           The execution and delivery by it of
this Guaranty and the performance of its obligations hereunder have been duly
authorized by all necessary corporate action.

(c)           This Guaranty has been duly executed
and delivered by it and constitutes a valid and binding obligation of it,
enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency and similar laws affecting creditors’ rights generally
and to general principles of equity.

(d)           The execution and delivery by it of
this Guaranty, and the performance by it of its obligations hereunder, do not
and will not (i) violate or contravene any provision of its organizational
documents, (ii) violate any law or order of any Governmental Authority to which
it is subject, or (iii) conflict with or result in a breach of any
material term or provision of or constitute a default under or result in the
maturing of any indebtedness pursuant to any material indenture, mortgage, deed
of trust, loan agreement, or other material instrument to which it is a party
or by which its properties are bound.

(e)           No notice or filing with, or approval
of, any Governmental Authority is required by it for the due execution,
delivery or performance of this Guaranty or for the validity or enforceability
thereof.

Section
4.               The obligations of
Guarantor hereunder shall remain in full force and effect without regard to,
and shall not be affected or impaired by any of the following, any of which may
be taken without the consent of, or notice to, Guarantor:

(a)           any lack of legality, validity or
enforceability of the Closing Documents or any of the payment obligations thereunder;

 2
 

 

(b)           any amendment, modification,
addition, supplement or extension of or to any part of the Closing Documents;

(c)           any exercise or non-exercise by
Sellers of any right or privilege under the Closing Documents;

(d)           any extension (including without
limitation extensions of time for payment), renewal, amendment, restructuring
or restatement of, or any acceptance of late or partial payments under, the
Closing Documents;

(e)           any bankruptcy, insolvency,
reorganization, dissolution, liquidation or similar proceeding relating to
Buyer or any affiliate of Buyer (other than Guarantor);

(f)            the existence of any facts or
circumstances which cause (or result in) any of the representations or
warranties of Buyer under the Closing Documents to be inaccurate; or

(g)           any other circumstance whatsoever
(with or without notice to or knowledge of Guarantor) which may or might in any
manner or to any extent vary the risks of Guarantor, or might otherwise
constitute a legal or equitable defense available to, or discharge of, a surety
or a guarantor, including without limitation, any right to require or claim
that resort be had to Buyer in respect of the Guaranteed Obligations.

Section
5.               The obligations of
Guarantor hereunder are independent of the obligations of Buyer and, in the
event of any default hereunder, a separate action or actions may be brought and
prosecuted against Guarantor whether or not Buyer is joined therein or a
separate action or actions are brought against Buyer.  All remedies of Sellers are cumulative.

Section
6.               Guarantor unconditionally
and irrevocably waives:

(a)           demands, protests, or notices as the
same pertain to Buyer;

(b)           any right to require Sellers to
proceed against Buyer or to exhaust any security held by Sellers or to pursue
any other remedy;

(c)           any right to assert against Sellers,
as a defense, counterclaim, set-off, recoupment or cross claim in respect of
the Guaranteed Obligations, any defense (legal or equitable) or other claim
which Guarantor may now or at any time hereafter have against Buyer or any
other person;

(d)           any defense based upon an election of
remedies by Sellers, unless the same would excuse performance by Buyer, under
the Closing Documents; and

(e)           any duty of Sellers to advise
Guarantor of any information known to Sellers regarding Buyer or its ability to
perform under the Closing Documents.

Section
7.               Guarantor’s obligations
under Section 2 hereof constitute a continuing guaranty and shall continue in
full force and effect until termination of this Guaranty. This Guaranty shall
immediately terminate upon the earlier to occur of: (a) the payment of the
Purchase Price under Sections 1.4(c), (d) and (e) of the Stock and Note
Purchase Agreement; (b) such time as Buyer’s payment obligations shall have
been fully performed or otherwise

 3
 

 

extinguished under the Closing Documents; and (c) such
time as Guarantor has made payments under this Guaranty in the aggregate amount
of the Guaranty Limit.

Section
8.               The obligations of
Guarantor under this Guaranty shall be automatically reinstated if and to the
extent that for any reason any payment by or on behalf of Buyer or any other
person in respect of the Guaranteed Obligations is rescinded or must be
otherwise restored by any holder of any of such obligations, whether as a
result of any proceedings in bankruptcy or reorganization or otherwise.

Section
9.               All notices, requests and
other communications hereunder must be in writing and will be deemed to have
been duly given only if delivered personally or by facsimile transmission or
mailed (first class postage prepaid) to the parties at the following addresses
or facsimile numbers:

If to
Guarantor:

Marubeni
Corporation

4-2,
Ohtemachi 1-Chome, Chiyoda-ku,

Tokyo
100-8088 Japan

Attention:
Overseas Power Projects Department II

Masumi Kakinoki, General Manager

Facsimile: 
+81-3-3286-9153

with a
copy to:

Latham &
Watkins LLP

41st Floor, One
Exchange Square

8 Connaught Place,
Central

Hong Kong

Attention:  Joseph B. Bevash

Facsimile:  +852-2522-7006

If to
Sellers:

Mirant Corporation

1155 Perimeter Center
West

Atlanta, Georgia
30338

Attention:  Steven B. Nickerson, Assistant General
Counsel

Facsimile:  +1-678-579-5951

with a copy to:

Skadden,
Arps, Slate, Meagher & Flom LLP

1440
New York Avenue, N.W.

Washington,
D.C.  20005

Attention:  Michael P. Rogan

Facsimile:  +1-202- 393-5760

All such notices, requests and other communications
will (i) if delivered personally to the address as provided in this Section 9,
be deemed given upon delivery, (ii) if delivered by

 4
 

 

facsimile transmission to the facsimile number as
provided in this Section 9, be deemed given upon receipt, and (iii) if
delivered by mail in the manner described above to the address as provided in
this Section 9, be deemed given upon receipt (in each case regardless of
whether such notice, request or other communication is received by any other
person to whom a copy of such notice, request or other communication is to be
delivered pursuant to this Section 9). 
Any party from time to time may change its address, facsimile number or
other information for the purpose of notices to that party by giving notice
specifying such change to the other parties hereto.

Section
10.             Notwithstanding anything to
the contrary in this Guaranty or any certificate, agreement or document related
to this Guaranty, this Guaranty shall not confer any rights or remedies upon
any person other than the parties hereto and their lawful successors and
permitted assigns.

Section
11.             This Guaranty shall be
binding upon and inure to the benefit of the parties hereto and their lawful
successors and permitted assigns.  This
Guaranty, and any rights and obligations hereunder, may not be assigned or
transferred by any party hereto without the prior written consent of the other
parties hereto.

Section
12.             This Guaranty shall be
governed by, and construed in accordance with, the law of the State of New York
without regard to principles of conflicts of law.  Each of the parties hereto (a) consents to
submit itself to the personal jurisdiction of any federal court located in the
State of New York or any New York state court in the event any dispute arises
out of this Guaranty, (b) agrees that it shall not attempt to deny or defeat
such personal jurisdiction by motion or other request for leave from any such
court and (c) agrees that it shall not bring any action relating to this
Guaranty in any court other than a federal or state court sitting in the State
of New York.

Section
13.             This Guaranty embodies the
entire agreement between Guarantor and Sellers. 
There are no promises, terms, conditions or obligations other those
contained herein, and this Guaranty shall supercede all previous
communications, representations or agreements, either verbal or written,
between Guarantor and Sellers.  No
amendment of any provision of this Guaranty shall be valid unless the amendment
shall be in writing and signed by Sellers and Guarantor.

Section
14.             Any term or provision of
this Guaranty that is invalid or unenforceable in any situation in any
jurisdiction shall not affect the validity or enforceability of the remaining
terms and provisions hereof or the validity or enforceability of the offending
term or provision in any other situation or in any other jurisdiction.

Section 15.             This
Guaranty may be executed and delivered (including via facsimile) in any number
of counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

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IN WITNESS
WHEREOF, Guarantor has executed this Guaranty as of the date first above
written.

	
  

  	
   

  	
  MARUBENI CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Masumi Kakinoki

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Mr. Masumi Kakinoki

  
	
   

  	
   

  	
   

  	
  Title:

  	
  General Manager

  
	
   

  	
   

  	
   

  	
   

  	
  Overseas Power Project Department II

  

 

 6Exhibit 10.1

THE
SCIELE PHARMA, INC.

DEFERRED
COMPENSATION PLAN

 

Effective as of December 7, 2006.

 

SCIELE PHARMA, INC.

DEFERRED COMPENSATION PLAN

ARTICLE I - PURPOSE; EFFECTIVE
DATE

1.1.           Purpose. The purpose of this Deferred Compensation Plan
(hereinafter, the “Plan”) is to permit a select group of highly
compensated employees and non-employee Directors of SCIELE PHARMA, INC. (and its selected subsidiaries and/or
affiliates) to defer the receipt of income which would otherwise become payable
to them.  It is intended that this Plan,
by providing these eligible individuals an opportunity to defer the receipt of
income, will assist in the retaining and attracting individuals of exceptional
ability.

1.2.           Effective Date.  It is
the intent that all of the amounts deferred and benefits provided under this
Plan will be subject to the terms of Section 409A of the Code, as of the effective
date of December 7, 2007.

ARTICLE II - DEFINITIONS

For the purpose of this Plan, the following terms shall have the
meanings indicated, unless the context clearly indicates otherwise:

2.1.           Account(s).  “Account(s)”
means the account or accounts maintained on the books of the Company used
solely to calculate the amount payable to each Participant under this Plan and
shall not constitute a separate fund of assets. 
Account(s) shall be deemed to exist from the time amounts are first
credited to such Account(s) until such time that the entire Account Balance has
been distributed in accordance with this Plan. 
The Accounts available for each Participant shall be identified as:

a)                   Retirement Account; and,

b)                  In-Service Account; each employee Participant may
maintain up to two (2) In-Service Accounts based on selecting different times
and/or form of payments as selected under Article 5, below.

2.2.           Beneficiary.  “Beneficiary”
means the person, persons or entity as designated by the Participant, entitled
under Article VI to receive any Plan benefits payable after the Participant’s
death.

2.3.           Board.  “Board”
means the Board of Directors of the Company.

2.4.           Change in Control.    A “Change
in Control” shall mean a change in the ownership or effective control of the
Company, or in the ownership of a substantial portion of the assets of the
Company, as defined and determined under Section 409A(a)(2)(A)(v) of the Code
(or its successor provisions), Treasury Notice 2005-1 and any further guidance
published with respect to such term. 
Without in any way limiting the scope of the preceding sentence, a
Change of Control shall be deemed to occur on the date upon which one of the
following events occurs:

a)                   any one person (as such term is used in Sections
13(d) and 14(d)(2) of the Securities 

 

Exchange
Act of 1934, as amended (the “Exchange Act”), or more than one person acting as
a group (as determined under Treasury regulations), acquires ownership of stock
of the Company that, together with stock held by such person or group,
constitutes more than 50% of either the total fair market value or total voting
power of the stock of the Company (except that the acquisition of additional
control of the Company by the same person or persons during such 12-month
period is not considered to cause a change in control of the Company); or

b)                  any one person (as such term is used in the
Exchange Act), or more than one person acting as a group (as determined under
Treasury regulations), acquires (or has acquired during the 12-month period
ending on the date of the most recent acquisition by such person or persons)
ownership of stock of the Company possessing 35% or more of the total voting
power of the Company (except that the acquisition of additional control of the
Company by the same person or persons during such 12-month period is not
considered to cause a change in control of the Company); or

c)                   a majority of members of the Board is replaced
during any 12-month period by directors whose appointment or election is not
recommended by a majority of the members of the Board prior to the date of the
appointment or election; or

d)                  any one person (as such term is used in the Exchange
Act), or more than one person acting as a group (as determined under Treasury
regulations), acquires (or has acquired during the 12-month period ending on
the date of the most recent acquisition by such person or persons) assets from
the Company that have a total gross fair market value equal to or more than 40%
of the total gross fair market value of all of the assets of the Company
immediately prior to such acquisition or acquisitions.

2.5.           Committee.  “Committee”
means the Committee appointed by the Board to administer the Plan pursuant to
Article VII.

2.6.           Company.  “Company”
SCIELE PHARMA, INC., a Delaware based corporation, and any directly
or indirectly affiliated subsidiary corporations, any other affiliate
designated by the Board, or any successor to the business thereof.

2.7.           Compensation.  “Compensation”
means the base salary payable to and bonus or incentive compensation (including
commissions) earned by a Participant with respect to employment services
performed for the Company by the Participant and considered to be “wages” for
purposes of federal income tax withholding. 
With respect to Director Participants, Compensation shall include each
payment of Board Fees and Meeting Fees, including fees for serving on Board
Committees.  For purposes of this Plan
only, Compensation shall be calculated before reduction for any amounts
deferred by the Participant pursuant to the Company’s tax qualified plans which
may be maintained under Section 401(k) or Section 125 of the Internal Revenue
Code of 1986, as amended, (the “Code”), or pursuant to this Plan or any other
non-qualified plan which permits the voluntary deferral of compensation.  Inclusion of any other forms of compensation
is subject to Committee Approval.

 

2.8.           Deferral Commitment.  “Deferral
Commitment” means a commitment made by a Participant to defer a portion of
Compensation or Restricted Stock as set forth in Article III, and as permitted
by the Committee in its sole discretion. 
The Deferral Commitment shall apply to each payment of Compensation
payable to a Participant, and to the award of Restricted Stock identified by
the Participant, and shall specify the Account or Accounts to which the amounts
deferred shall be credited.  Such
designation shall be made in the form of a whole percentage or as otherwise
provided by the Committee.  Such Deferral
Commitment shall be made in a form and at a time deemed acceptable to the
Committee.  A Deferral Commitment with
respect to any bonus or incentive compensation which is based on services performed
over a period of at least twelve (12) months shall be made as provided by the
Committee, but no later than six (6) months prior to the end of such
performance period.  A Deferral
Commitment with respect to Restricted Stock shall be made no later than thirty
(30) days following the award of such Restricted Stock.

2.9.           Deferral Period.  “Deferral
Period” means each calendar year, except that if a Participant first becomes
eligible after the beginning of a calendar year, the initial Deferral Period
shall be the date the Participant first becomes eligible to participate in this
Plan through and including December 31st of that
calendar year.

2.10.     Determination
Date.  “Determination Date” means each business day.

2.11.     Disability.            “Disability
means a physical or mental condition whereby the Participant: (i) is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, or (ii) is, by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than 3
months under an accident and health plan covering employees of the participant’s
employer.

2.12.     Distribution
Election.  “Distribution Election” means the form
prescribed by the Committee and completed by the Participant, indicating the
chosen form of payment for benefits payable from each Account under this Plan,
as elected by the Participant.

2.13.     Discretionary
Contribution.  “Discretionary Contribution” means the
Company contribution credited to a Participant’s Account(s) under Section 4.5,
below.

2.14.     Financial
Hardship.  “Financial Hardship” means a severe financial hardship to the Participant
resulting from an illness or accident of the Participant, the Participant’s
spouse, or a dependent (as defined in Section 152(a) of the Code) of the
Participant, loss of the Participant’s property due to casualty, or other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the participant.

2.15.     401(k)
Plan.  “401(k) Plan” means the “SCIELE
PHARMA, INC. 401(K) PLAN”, or
any other successor defined contribution plan maintained by the Company that
qualifies under Section 401(a) of the Code and satisfies the requirements of
Section 401(k) of the Code.

 

2.16.     Interest.  “Interest”
means the amount credited to or charged against a Participant’s Account(s) on
each Determination Date, which shall be based on the Valuation Funds chosen by
the Participant as provided in Section 2.23, below and in a manner consistent
with Section 4.3, below. Such credits or charges to a Participant’s Account may
be either positive or negative to reflect the increase or decrease in value of
the Account in accordance with the provisions of this Plan.

2.17.     Matching
Contribution.  “Matching Contribution” means the Company
contribution credited to an employee Participant’s Account(s) under Section
4.4, below, as determined by the Committee in its sole discretion.

2.18.     Participant.  “Participant”
means any individual who is eligible, pursuant to Section 3.1, below, to
participate in this Plan, and who either, has elected to defer Compensation
under this Plan in accordance with Article III, below, or who is determined by
the Committee in their sole discretion as being eligible to receive a
Discretionary or Matching Contribution under this Plan. Such individual shall
remain a Participant in this Plan for the period of deferral, or credit, and
until such time as all benefits payable under this Plan have been paid in
accordance with the provisions hereof.

2.19.     Plan.  “Plan”
means this Deferred Compensation Plan as amended from time to time.

2.20.     Restricted
Stock.  “Restricted Stock” mean unvested shares of
restricted stock as awarded to the Participant under any Company stock
incentive or bonus plan after the effective date of this Plan and identified
therein or by the Committee as being eligible for deferral under the provisions
of this Plan.

2.21.     Retirement.  “Retirement”
means the termination of a Participant’s employment with the Company, for
reasons other than death or Disability, on or after the earlier of: (a)
attainment of age 55 or (b) with respect to Director Participants, termination
as a member of the Board, but only if the Director Participant does not become
an employee of the Company within thirty (30) days, and is otherwise eligible
for participation in this Plan.

2.22.     Specified Employees.  “Specified Employees” means
key employees, as defined in Section 416 (i) of the Code without regard to
paragraph (5) thereof, of the Company.

2.23.     Valuation
Funds.   “Valuation Funds” means one or more of the
independently established funds or indices that are identified and listed by
the Committee.  These Valuation Funds are
used solely to calculate the Interest that is credited to each Participant’s
Account(s) in accordance with Article IV, below, and does not represent, nor
should it be interpreted to convey any beneficial interest on the part of the
Participant in any asset or other property of the Company.  The determination of the increase or decrease
in the performance of each Valuation Fund shall be made by the Committee in its
reasonable discretion.  The Committee
shall select the various Valuation Funds available to the Participants with
respect to this Plan and shall set forth a list of these Valuation Funds
attached hereto as Exhibit A, which may be amended from time to time in the
discretion of the Committee.

2.24.     Year
of Service.  “Year of Service” shall have the meaning
provided for such term for 

 

purposes
of vesting under the 401(k) Plan, whether or not the Participant is a
participant in such plan.

ARTICLE III - ELIGIBILITY
AND PARTICIPATION

3.1.           Eligibility and Participation.

a)                   Eligibility.  Eligibility
to participate in the Plan shall be limited to those select key employees of
Company who are designated by the Committee from time to time, and approved by
the Compensation Committee of the Board, and to non-employee Directors of the Board.

b)                  Participation.  An
individual’s participation in the Plan shall be effective upon notification to
the individual by the Committee of eligibility to participate, and the earlier
of a contribution under this Plan being made on behalf of the Participant by
the Company or the completion and submission of a Deferral Commitment, an
Allocation Form, and a Distribution Election to the Committee no later than
fifteen (15) days prior to the beginning of the Deferral Period, or as
otherwise permitted by the Committee.  Notwithstanding,
any deferral of Restricted Stock shall be effective only if such Deferral
Commitment was submitted to the Company within thirty (30) days of the award of
the Restricted Stock.

c)                   First-Year Participation. When an individual first becomes eligible to
participate in this Plan, a Deferral Commitment may be submitted to the
Committee within thirty (30) days after the Committee notifies the individual
of eligibility to participate.  Such
Deferral Commitment will be effective only with regard to Compensation earned
and payable following submission of the Deferral Commitment to the Committee.

3.2.           Form of Deferral Commitment.  A
Participant may elect to make a Deferral Commitment no later than fifteen (15)
days prior to the beginning of the Deferral Period, or at such other time as
permitted by the Committee, and in the form permitted by the Committee.  The Deferral Commitment shall specify the
following:

a)                   Deferral Amounts; Accounts.   A
Deferral Commitment shall be made with respect to each payment of Compensation
payable by the Company to a Participant during the Deferral Period, and shall
designate the portion of each deferral that shall be allocated among the
various Retirement or In-Service Accounts. 
A Deferral Commitment shall be made with respect to each award or grant
of Restricted Stock, and shall designate the portion of such award that shall
be allocated among the various Retirement or In-Service Accounts.

b)                  Restrictions on Deferrals.  No
amounts shall be deferred into an In-Service Account once payments have
commenced under the terms of this Plan and until such time as the entire
Account Balance has been completely distributed.  The Participant shall set forth the amount to
be deferred as a full percentage of Compensation.  In addition, Director Participants may
allocated deferred amounts only into the Retirement Account.

c)                   Allocation to Valuation Funds.  The
Participant shall specify in a separate form (known as the “Allocation Form”)
filed with the Committee, the Participant’s initial allocation of the amounts
deferred into each Account among the various available Valuation Funds.

 

d)                  Maximum Deferral.  The
maximum amount of base salary or commissions that may be deferred shall be ­­­­seventy-five
percent (75%); the maximum amount of bonus or incentive compensation, Restricted
Stock, or Board Fees that may be deferred shall be one hundred percent (100%).

3.3.           Period of Commitment.  Any
Deferral Commitment made by a Participant with respect to Compensation shall
remain in effect for the next succeeding Deferral Period, except that if a
Participant suffers a Disability or terminates service with Company prior to
the end of the Deferral Period, the Deferral Period shall end as of the date of
Disability or termination.

3.4.           Modification of Deferral
Commitment.  Except as provided in Sections 3.3, above,
and 5.4 and 5.5 below, a Deferral Commitment shall be irrevocable by the
Participant during a Deferral Period.

3.5.           Change in Status.  If the
Committee determines that a Participant’s employment performance is no longer
at a level that warrants reward through participation in this Plan, but does
not terminate the Participant’s employment with Company, the Participant’s
existing Deferral Commitment shall terminate at the end of the Deferral Period,
and no new Deferral Commitment may be made by such Participant after notice of
such determination is given by the Committee, unless the Participant later
satisfies the requirements of Section 3.1. 
If the Committee, in its sole discretion, determines that the
Participant no longer qualifies as a member of a select group of management or
highly compensated employees, as determined in accordance with the Employee
Retirement Income Security Act of 1974, as amended, the Committee may, in its
sole discretion terminate any Deferral Commitment for that year, and prohibit
the Participant from making any future Deferral Commitments.

3.6.           Defaults in Event of Incomplete
or Inaccurate Deferral Commitments.  In the event that a
Participant submits a Deferral Commitment to the Committee that contains
information necessary to the efficient operation of this Plan which, in the
sole discretion of the Committee, is incomplete or inaccurate, the Committee
shall be authorized to treat the incomplete or inaccurate Deferral Commitment
as if the following elections had been made by the Participant, and such
information shall be communicated to the Participant:

a)                   If no Account is listed – treat as if the
Retirement Account was elected;

b)                  If Accounts listed equal less than 100% - treat
as if the balance was deferred into Retirement Account;

c)                   If Accounts listed equal more than 100% –proportionately
reduce each Account to equal 100%;

d)                  If In-Service Account is listed, but no deferrals
can be made into that Account due to the fact that benefits are being paid from
that In-Service Account, then the amounts elected to be deferred shall be
credited to another In-Service Account, if such other In-Service Account is
available for deferral, and if not, then to the Retirement Account during such
period of payment, after which time the balance of the amounts elected to be
deferred shall be credited to a subsequent In-Service Account with a
distribution date as elected or as provided in sub- section (i), below;

 

e)                   If no Valuation Fund is selected – treat as if
the Money Market Fund was elected;

f)                     If Valuation Fund(s) selected equal less than
100% - treat as if the Money Market Fund was elected for remaining balance;

g)                  If Valuation Fund(s) selected equal more than
100% - proportionately reduce each Valuation Fund to equal 100%;

h)                  If no Distribution Election is chosen –treat as
if lump sum was elected for In-Service Account and treat as if three (3) year
was elected for Retirement Account; and,

i)                      If no time of payment is chosen for In-Service
Account –treat as if the earliest possible date available under the provisions
of Section 5.2, below was elected.

ARTICLE IV - DEFERRED
COMPENSATION ACCOUNT

4.1.           Accounts.  The
Compensation deferred by a Participant under the Plan, any Matching or
Discretionary Contributions and Interest shall be credited to the Participant’s
Account(s) as selected by the Participant, or as otherwise provided in this
Article.  Separate accounts may be
maintained on the books of the Company to reflect the different Accounts chosen
by the Participant, and the Participant shall designate the portion of each
deferral that will be credited to each Account as set forth in Section 3.2(a),
above. These Accounts shall be used solely to calculate the amount payable to
each Participant under this Plan and shall not constitute a separate fund of
assets.

4.2.           Timing of Credits; Withholding.  A
Participant’s deferred Compensation shall be credited to each Account
designated by the Participant as soon as practical after the date the
Compensation deferred would have otherwise been payable to the
Participant.  Any Matching and
Discretionary Contributions shall be credited to the appropriate Account(s) as
provided by the Committee.  Any
withholding of taxes or other amounts with respect to deferred Compensation or
other amounts credited under this Plan that is required by local, state or
federal law shall be withheld from the Participant’s corresponding non-deferred
portion of the Compensation to the maximum extent possible, and any remaining
amount shall reduce the amount credited to the Participant’s Account in a manner
specified by the Committee.

4.3.           Valuation Funds. A Participant shall designate, at a time and in
a manner acceptable to the Committee, one or more Valuation Funds for each
Account for the sole purpose of determining the amount of Interest to be
credited or debited to such Account. 
Such election shall designate the portion of each deferral of
Compensation made into each Account that shall be allocated among the available
Valuation Fund(s), and such election shall apply to each succeeding deferral of
Compensation until such time as the Participant shall file a new election with
the Committee. Upon notice to the Committee, Participants shall also be
permitted to reallocate the balance in each Valuation Fund among the other
available Valuation Funds as determined by the Committee. The manner in which
such elections shall be made and the frequency with which such elections may be
changed and the manner in which such elections shall become effective shall be
determined in accordance with the procedures to be adopted by the Committee or
its delegates 

 

from
time to time.  As of the Effective Date,
such elections may be made on a daily basis electronically, and such elections
shall become effective on the date made or the next available Determination
Date.

4.4.           Matching Contributions.  Company
shall make a Matching Contribution to the Retirement Account of any employee Participant
designated by the Committee, equal to fifty percent (50%) of the Participant’s
Compensation elected to be deferred under this Plan; but in no event shall the
amount of Matching Contributions in this Plan plus the amount of the matching
contribution actually made on behalf of the Participant under the 401(k) Plan
exceed fifty percent of the lesser of: a) the maximum amount permitted to be deferred
under section 402(g) of the Code calculated without regard to the “catch up
contributions” permitted under section 402(g)(1)(C) of the Code; and b) ten
percent (10%) of Compensation.  The
Matching Contribution shall be credited to the Retirement Account as soon as
practical after the end of the Deferral Period, but in no event later than 90
days after the close of such year.

4.5.           Discretionary Contributions.  In its
sole discretion, Company may make Discretionary Contributions to a Participant’s
Account.  Discretionary Contributions
shall be credited at such times and in such amounts as recommended by the
Committee and approved by the Compensation Committee of the Board, or the Board
in its sole discretion.  Unless the
Committee specifies otherwise, such Discretionary Contribution shall be
allocated among the various Accounts in the same proportion as set forth in
section 4.1, above.

4.6.           Restricted Stock.  The
value of the Restricted Stock deferred shall be credited to the appropriate
Accounts at the time when the Participant would otherwise become vested in such
award, but for the election to defer. 
The value of the deferred Restricted Stock shall be based on the number
of shares elected to be deferred multiplied by the fair market value of the stock
awarded as determined by the closing price of the stock awarded at the end of
the business day closest to the date such Restricted Stock would otherwise
vest, but for the election to defer.

4.7.           Determination of Accounts.  Each
Participant’s Account as of each Determination Date shall consist of the
balance of the Account as of the immediately preceding Determination Date,
adjusted as follows:

a)                   New Deferrals.  Each
Account shall be increased by any deferred Compensation and Restricted Stock
amount credited since such prior Determination Date in the proportion chosen by
the Participant, except that no amount of new deferrals shall be credited to an
Account at the same time that a distribution is to be made from that Account.

b)                  Company Contributions.  Each
Account shall be increased by any Discretionary and/or Matching Contributions
credited since such prior Determination as set forth above in sections 4.4, and
4.5 or as otherwise directed by the Committee.

c)                   Distributions.  Each
Account shall be reduced by the amount of each benefit payment made from that
Account since the prior Determination Date. 
Distributions shall be deemed to have been made proportionally from each
of the Valuation Funds maintained within such Account based on the proportion
that such Valuation Fund bears to the sum of all Valuation Funds maintained
within such Account for that Participant as of the Determination Date 

 

immediately preceding the date of payment.

d)                  Interest.  Each
Account shall be increased or decreased by the Interest credited to such
Account since such Determination Date as though the balance of that Account as
of the beginning of the current month had been invested in the applicable
Valuation Funds chosen by the Participant.

4.8.           Vesting of Accounts.  Each
Participant shall be vested in the amounts credited to such Participant’s
Account and Interest thereon as follows:

a)                   Amounts Deferred.  A
Participant shall be one hundred percent (100%) vested at all times in the
amount of Compensation and Restricted Stock elected to be deferred under this
Plan, including any Interest thereon.

b)                  Matching Contributions.  A
Participant shall become vested in the amount of Matching Contributions
credited under this Plan, including any Interest thereon based on completed
Years of Service as follows:

	
  Completed Years of Service

  	
   

  	
  Percent Vested

  	
   

  
	
  1

  	
   

  	
   

  	
  25

  	
  %

  
	
  2

  	
   

  	
   

  	
  50

  	
  %

  
	
  3

  	
   

  	
   

  	
  75

  	
  %

  
	
  4 or more

  	
   

  	
   

  	
  100

  	
  %

  

 

c)                   Discretionary Contributions.  A
Participant’s Discretionary Contributions and Interest thereon shall become
vested as determined by the Committee.

d)                  Effect of Change in Control. 
Notwithstanding anything to the contrary, each Participant shall become
one hundred percent (100%) vested in each Account upon a Change in Control.

4.9.           Statement of Accounts.                                      The Committee shall give to each Participant a
statement showing the balances in the Participant’s Account on a quarterly basis.

ARTICLE V - PLAN BENEFITS

5.1.           Retirement Account.  The
vested portion of a Participant’s Retirement Account shall be distributed to
the Participant upon the termination of service with the Company.   For
purposes of this Plan, termination of service shall not include a Director
Participant’s termination as a member of the Board if the Director Participant
becomes an employee of the Company within thirty (30) days, and is otherwise
eligible for participation in this Plan.

a)                   Timing of Payment.  Subject to Section 5.6, benefits
payable from the Retirement Account shall commence as soon as administratively
practical after the termination of service, but in no event later than sixty
days after the date of the Participant’s termination of service with the
Company.

 

b)                  Form of Payment.  The form of benefit payment shall be that form
selected by the Participant in the first Deferral Commitment which designated a
portion of the Compensation deferred be allocated to the Retirement Account,
and as permitted pursuant to Section 5.7 below, except that if the Participant
terminates employment prior to Retirement, in which event, the Retirement
Account shall be paid in the form of a lump sum payment.

5.2.           In-Service Account. The vested portion of a Participant’s
In-Service Account shall generally be distributed to the Participant upon the
date chosen by the Participant.

a)                   Timing of Payment.  Subject to Section 5.6, benefits payable from the In-Service Account
shall commence on the January 15th of the year specified in the first Deferral
Commitment which designated a portion of the Compensation deferred be allocated
to the In-Service Account.  In no event
shall the date selected be earlier than the first day of the sixth calendar
year following the initial filing of the Deferral Commitment with respect to
that In-Service Account. In the event that the Participant terminates
employment with the Company prior to the date so specified, the benefits under
this section shall commence as soon as administratively practical after
termination of service, but in no event later than sixty days after the date of
the Participant’s termination of service with the Company.

b)                  Form of Payment.  The
form of benefit payment from the In-Service Account shall be that form selected
by the Participant pursuant to Section 5.7, below, except that if the
Participant terminates employment with the Company prior to the date so
specified, then the In-Service Account shall be paid in the form of a lump sum
payment.  If the Form of Payment selected
provides for subsequent payments, subsequent payments shall be made on the
anniversary of the initial payment.

c)                   Change of Time and/or Form of
Payment.  The Participant may, subsequently amend the form of
payment or the intended date of payment to a date later than that date
initially chosen, by filing such amendment with the Committee no later that
twelve (12) months prior to the current date of payment. The Participant may
file this amendment, provided that each amendment must provide for a payout as
otherwise permitted under this paragraph at a date no earlier than five (5)
years after the date of payment in force immediately prior to the filing of such
request, and the amendment may not take effect for twelve (12) months after the
request is made.

5.3.           Death Benefit. Upon the death of a Participant prior to the
commencement of benefits under this Plan from any particular Account, Company
shall pay to the Participant’s Beneficiary an amount equal to the vested
Account balance in that Account in the form of a lump sum payment as soon as
administratively possible.  In the event
of the death of the Participant after the commencement of benefits under this
Plan from any Account, the benefits from that Account(s) shall be paid to the
Participant’s designated Beneficiary from that Account at the same time and in
the same manner as if the Participant had survived.

5.4.           Hardship Distributions. Upon a finding that a Participant has suffered
a Financial Hardship, the Committee may, in its sole discretion, terminate the
existing Deferral Commitment, and/or make distributions from any or all of the
Participant’s Accounts. The amount of such distribution shall be limited to the
amount reasonably necessary to meet the Participant’s needs resulting from the
Financial Hardship plus amounts necessary to pay taxes reasonably anticipated
as a result of the 

 

distribution,
after taking into account the extent to which such Financial Hardship is or may
be relieved through the reimbursement or compensation by insurance, or
otherwise or by liquidation of the Participant’s assets (to the extent that
liquidation of such assets would not itself cause severe financial hardship).
The amount of such distribution will not exceed the Participant’s vested
Account balances.  If payment is made due
to Financial Hardship, the Participant’s deferrals under this Plan shall cease
for the period of the Financial Hardship and for twelve (12) months
thereafter.  If the Participant is again
eligible to participate, any resumption of the Participant’s deferrals under
the Plan after such twelve (12) month period shall be made only at the election
of the Participant in accordance with Article III herein.

5.5.           Disability Distributions.  Upon a
finding that a Participant has suffered a Disability, the Committee shall make
a distribution of all of the Participant’s Accounts. The amount of such
distribution shall be made in the form of a lump sum and shall commence as soon
as administratively practical after the determination of such Disability.

5.6.           Payment to Specified Employees.  Payments
of benefits from the Retirement Account, and benefits payable from an
In-Service Account caused by the termination of employment (including death) of
a Participant who is determined to meet the definition of Specified Employee
shall be payable as otherwise provided, except that the initial payment shall
be made no earlier than the six (6) months following the termination of
employment with the employment.

5.7.           Form of Payment.  Unless
otherwise specified in this Article, the benefits payable from any Account
under this Plan shall be paid in the form of benefit as provided below, and
specified by the Participant in the Distribution Election applicable to that
Account at the time of the initial deferral or credit to that Account.    The permitted forms of benefit payments
are:

a)                   A lump sum amount which is equal to the vested
Account balance; and

b)                  Annual
installments for a period of up to ten (10) years (or in the event of payment
of the In-Service Account, a maximum of five (5) years) where the annual
payment shall be equal to the balance of the Account immediately prior to the
payment, multiplied by a fraction, the numerator of which is one (1) and the
denominator of which commences at the number of annual payment initially chosen
and is reduced by one (1) in each succeeding year.  Interest on the unpaid balance
shall be based on the most recent allocation among the available Valuation
Funds chosen by the Participant, made in accordance with Section 4.3, above.

5.8.           Small Account.  If the
Participant’s vested, unpaid Retirement Account balance as of the time the
payments are to commence from the Retirement Account is less than $10,000, the
remaining unpaid, vested Retirement Account shall be paid in a lump sum,
notwithstanding any election by the Participant to the contrary; if the
Participant’s vested, unpaid In-Service Account balance as of the time the
payments are to commence from such In-Service Account is less than $5,000, the
remaining unpaid, vested In-Service Account shall be paid in a lump sum,
notwithstanding any election by the Participant to the contrary.

5.9.           Payment Upon Change in Control. 
Notwithstanding anything to the contrary, upon a finding by the
Committee that a Change in Control has occurred, the Committee shall make a
distribution of 

 

all
of the Participant’s Accounts. Such distribution shall be made in the form of a
lump sum and shall commence as soon as administratively practical, subject to
the delay provided for by Section 5.6 above, after the determination of such Change
in Control.

5.10.     Withholding;
Payroll Taxes.  Company shall withhold from any payment made
pursuant to this Plan any taxes required to be withheld from such payments
under local, state or federal law.  A
Beneficiary, however, may elect not to have withholding of federal income tax
pursuant to Section 3405(a)(2) of the Code, or any successor provision thereto.

5.11.     Payment
to Guardian.  If a Plan benefit is payable to a minor or a
person declared incompetent or to a person incapable of handling the
disposition of the property, the Committee may direct payment to the guardian,
legal representative or person having the care and custody of such minor,
incompetent or person.  The Committee may
require proof of incompetency, minority, incapacity or guardianship as it may
deem appropriate prior to distribution. 
Such distribution shall completely discharge the Committee and Company
from all liability with respect to such benefit. 

5.12.     Effect
of Payment.  The full payment of the applicable benefit
under this Article V shall completely discharge all obligations on the part of
the Company to the Participant (and the Participant’s Beneficiary) with respect
to the operation of this Plan, and the Participant’s (and Participant’s
Beneficiary’s) rights under this Plan shall terminate.

ARTICLE VI - BENEFICIARY
DESIGNATION

6.1.           Beneficiary Designation.  Each
Participant shall have the right, at any time, to designate one (1) or more
persons or entity as Beneficiary (both primary as well as secondary) to whom
benefits under this Plan shall be paid in the event of Participant’s death
prior to complete distribution of the Participant’s vested Account balance.  Each Beneficiary designation shall be in a
written form prescribed by the Committee and shall be effective only when filed
with the Committee during the Participant’s lifetime.

6.2.           Changing Beneficiary. Any Beneficiary designation may be changed by a
Participant without the consent of the previously named Beneficiary by the
filing of a new Beneficiary designation with the Committee.

6.3.           No Beneficiary Designation.   If any
Participant fails to designate a Beneficiary in the manner provided above, if
the designation is void, or if the Beneficiary designated by a deceased
Participant dies before the Participant or before complete distribution of the
Participant’s benefits, the Participant’s Beneficiary shall be the person in
the first of the following classes in which there is a survivor:

a)                   The Participant’s surviving spouse;

b)                  The Participant’s children in equal shares,
except that if any of the children predeceases the Participant but leaves
surviving issue, then such issue shall take by right of representation the
share the deceased child would have taken if living;

 

c)                   The Participant’s estate.

6.4.           Effect of Payment.   Payment
to the Beneficiary shall completely discharge the Company’s obligations under
this Plan.

ARTICLE VII - ADMINISTRATION

7.1.           Committee; Duties. This Plan shall be administered by the
Committee, which shall consist the head of Human Resources, or those
individual(s) designated by the head of Human Resources or the Board, except in
the event of a Change in Control as provided in Section 7.5 below.  The Committee shall have the authority to
make, amend, interpret and enforce all appropriate rules and regulations for
the administration of the Plan and decide or resolve any and all questions,
including interpretations of the Plan, as they may arise in such
administration.  A majority vote of the
Committee members shall control any decision. 
Members of the Committee may be Participants under this Plan.

7.2.           Agents.   The
Committee may, from time to time, employ agents and delegate to them such
administrative duties as it sees fit, and may from time to time consult with
counsel who may be counsel to the Company.

7.3.           Binding Effect of Decisions.   The
decision or action of the Committee with respect to any question arising out of
or in connection with the administration, interpretation and application of the
Plan and the rules and regulations promulgated hereunder shall be final,
conclusive and binding upon all persons having any interest in the Plan.

7.4.           Indemnity of Committee.   The
Company shall indemnify and hold harmless the members of the Committee against
any and all claims, loss, damage, expense or liability arising from any action
or failure to act with respect to this Plan on account of such member’s service
on the Committee, except in the case of gross negligence or willful misconduct.

7.5.           Election of Committee After
Change in Control. After a
Change in Control, vacancies on the Committee shall be filled by majority vote
of the remaining Committee members and Committee members may be removed only by
such a vote.  If no Committee members
remain, a new Committee shall be elected by majority vote of the Participants
in the Plan immediately preceding such Change in Control.  After a Change in Control, no amendment shall
be made to Article VII or other Plan provisions regarding Committee authority
with respect to the Plan without prior approval by the Committee.

ARTICLE VIII - CLAIMS
PROCEDURE

8.1.           Claim.   Any
person or entity claiming a benefit, requesting an interpretation or ruling
under the Plan (hereinafter referred to as “Claimant”), or requesting
information under the Plan shall present the request in writing to the
Committee, which shall respond in writing as soon as practical, but in no event
later than ninety (90) days after receiving the initial claim (or no later than
forty-five (45) days after receiving the initial claim regarding a Disability
under this Plan).

 

8.2.           Denial of Claim.  If the
claim or request is denied, the written notice of denial shall state:

a)                   The reasons for denial, with specific reference
to the Plan provisions on which the denial is based;

b)                  A description of any additional material or
information required and an explanation of why it is necessary, in which event
the time frames listed in section 8.1 shall be one hundred and eighty (180) and
seventy-five (75) days from the date of the initial claim respectively; and

c)                   An explanation of the Plan’s claim review
procedure.

8.3.           Review of Claim.  Any
Claimant whose claim or request is denied or who has not received a response
within sixty (60) days (or one hundred and eighty (180) days in the event of a
claim regarding a Disability) may request a review by notice given in writing
to the Committee.  Such request must be
made within sixty (60) days (or one hundred and eighty (180) days in the event
of a claim regarding a Disability) after receipt by the Claimant of the written
notice of denial, or in the event Claimant has not received a response sixty
(60) days (or one hundred and eighty (180) days in the event of a claim
regarding a Disability) after receipt by the Committee of Claimant’s claim or
request.  The claim or request shall be
reviewed by the Committee which may, but shall not be required to, grant the
Claimant a hearing.  On review, the
claimant may have representation, examine pertinent documents, and submit
issues and comments in writing.

8.4.           Final Decision.  The
decision on review shall normally be made within sixty (60) days (or forty-five
(45) days in the event of a claim regarding a Disability) after the Committee’s
receipt of claimant’s claim or request. 
If an extension of time is required for a hearing or other special
circumstances, the Claimant shall be notified and the time limit shall be one
hundred twenty (120) days (or ninety (90) days in the event of a claim
regarding a Disability).  The decision
shall be in writing and shall state the reasons and the relevant Plan
provisions.  All decisions on review shall
be final and bind all parties concerned.

ARTICLE IX - AMENDMENT AND
TERMINATION OF PLAN

9.1.           Amendment.   The
Board may at any time amend the Plan by written instrument, notice of which is
given to all Participants and to Beneficiary receiving installment payments,
except that no amendment shall reduce the amount accrued in any Account as of
the date the amendment is adopted.

9.2.           Company’s Right to Terminate. The Board may at any time terminate the Plan
provided that such termination of the Plan is not treated as an “acceleration
of benefits” as described in Section 409A(a)(3) of the Code and appropriate
Treasury regulations or other guidance issued by the Internal Revenue Service
or Treasury.  Upon a permitted partial or
complete termination, the Board may cease all future Deferral Commitments, all
current Deferral Commitments, and or, in its sole discretion, pay out Accounts,
provided such action is not treated as an “acceleration of benefits” as
described in Section 409A(a)(3) of the Code and appropriate Treasury
regulations or other guidance issued by the Internal Revenue Service or
Treasury without the action.

 

ARTICLE X - MISCELLANEOUS

10.1.     Unfunded
Plan. This plan is an
unfunded plan maintained primarily to provide deferred compensation benefits
for a select group of “management or highly-compensated employees” within the meaning
of Sections 201, 301, and 401 of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), and therefore is exempt from the provisions of
Parts 2, 3 and 4 of Title I of ERISA.

10.2.     Unsecured
General Creditor.   Notwithstanding any other provision of this
Plan, Participants and Participants’ Beneficiary shall be unsecured general
creditors, with no secured or preferential rights to any assets of Company or
any other party for payment of benefits under this Plan.  Any property held by Company for the purpose
of generating the cash flow for benefit payments shall remain its general,
unpledged and unrestricted assets. 
Company’s obligation under the Plan shall be an unfunded and unsecured
promise to pay money in the future.

10.3.     Trust
Fund. Company shall be
responsible for the payment of all benefits provided under the Plan.  At its discretion, Company may establish one
(1) or more trusts, with such trustees as the Board may approve, for the
purpose of assisting in the payment of such benefits. The assets of any such
trust shall be held for payment of all Company’s general creditors in the event
of insolvency.  To the extent any
benefits provided under the Plan are paid from any such trust, Company shall
have no further obligation to pay them. 
If not paid from the trust, such benefits shall remain the obligation of
Company.

10.4.     Nonassignability.                    Neither
a Participant nor any other person shall have any right to commute, sell,
assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer,
hypothecate or convey in advance of actual receipt the amounts, if any, payable
hereunder, or any part thereof, which are, and all rights to which are,
expressly declared to be unassignable and non-transferable.  No part of the amounts payable shall, prior
to actual payment, be subject to seizure or sequestration for the payment of
any debts, judgements, alimony or separate maintenance owed by a Participant or
any other person, nor be transferable by operation of law in the event of a Participant’s
or any other person’s bankruptcy or insolvency.

10.5.     Not
a Contract of Employment; Not a Contract for Services.  This
Plan shall not constitute an agent’s contract or a contract for services of any
kind between the Company and the Participant. 
Nothing in this Plan shall give a Participant the right to retain the
Participant’s full time soliciting agent’s contract or otherwise be retained in
the service of the Company or to interfere with the right of the Company to
terminate its relationship with a Participant at any time, in accordance with
the terms of the Participant’s full time soliciting agent’s contract or other
contract governing the relationship between the parties.

10.6.     Protective
Provisions.   A Participant will cooperate with Company by
furnishing any and all information requested by Company, in order to facilitate
the payment of benefits hereunder, and by taking such physical examinations as
Company may deem necessary and taking such other action as may be requested by
Company.

10.7.     Governing
Law.   The provisions of this Plan shall be
construed and interpreted according to 

 

the
laws of the State of Georgia, except as preempted by federal law.

10.8.         Validity.   If any
provision of this Plan shall be held illegal or invalid for any reason, said
illegality or invalidity shall not affect the remaining parts hereof, but this
Plan shall be construed and enforced as if such illegal and invalid provision
had never been inserted herein.

10.9.         Notice.   Any
notice required or permitted under the Plan shall be sufficient if in writing
and hand delivered or sent by registered or certified mail.  Such notice shall be deemed given as of the
date of delivery or, if delivery is made by mail, as of the date shown on the
postmark on the receipt for registration or certification.  Mailed notice to the Committee shall be
directed to the company’s address. 
Mailed notice to a Participant or Beneficiary shall be directed to the
individual’s last known address in company’s records.

10.10.   Successors.   The
provisions of this Plan shall bind and inure to the benefit of Company and its
successors and assigns.  The term
successors as used herein shall include any corporate or other business entity
which shall, whether by merger, consolidation, purchase or otherwise acquire
all or substantially all of the business and assets of Company, and successors
of any such corporation or other business entity.

	
  

  	
  Sciele Pharma, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DARRELL
  BORNE

  	
   

  
	
   

  	
   

  	
  Darrell Borne, Executive Vice President,

  
	
   

  	
   

  	
  Chief Financial Officer, Secretary and

  
	
   

  	
   

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  December 7, 2006

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]