Document:

Exhibit 4.4

AXIS CAPITAL HOLDINGS
LIMITED

2007 LONG-TERM EQUITY COMPENSATION PLAN

SECTION 1.   Purpose.   The purpose of this AXIS Capital Holdings
Limited 2007 Long-Term Equity Compensation Plan is to promote the
interests of AXIS Capital Holdings Limited, a company organized and existing
under Bermuda law, and its stockholders by (a) attracting and retaining
exceptional directors, officers, employees and consultants (including
prospective directors, officers, employees and consultants) of the Company (as
defined below) and its Affiliates (as defined below) and (b) enabling such
individuals to participate in the long-term growth and financial success of the
Company.

SECTION 2.   Definitions.   As used herein, the following terms shall
have the meanings set forth below:

“Affiliate”
means (a) any entity that, directly or indirectly, is controlled by,
controls or is under common control with, the Company and (b) any entity
in which the Company has a significant equity interest, in either case as
determined by the Committee.

“Award”
means any award that is permitted under Section 6 and granted under the
Plan.

“Award
Agreement” means any written agreement, contract or other instrument
or document evidencing any Award, which may, but need not, require execution or
acknowledgment by a Participant.

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

“Change of Control” shall (a) have
the meaning set forth in an Award Agreement or (b) if there is no
definition set forth in an Award Agreement, will be deemed to have occurred as
of the first day any of the following events occurs:

(i)            Any Person is or becomes the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing 50% or more of the combined voting power
of the Company’s then outstanding voting securities entitled to vote generally
in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that for purposes of this subsection (i), the
following acquisitions shall not constitute a Change in Control: (A) any
acquisition directly from the Company, (B) any acquisition by the Company, (C)
any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any Affiliate, or (D) any acquisition by any
entity pursuant to a transaction which complies with clauses (A), (B) and (C)
of paragraph (iii) below;

(ii)           Individuals who, as of the Effective Date, constitute the
Board (hereinafter referred to as the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board; provided
however, that any individual becoming a director subsequent to the date herein
whose election, or nomination for election by the Company’s stockholders, was
approved by a vote of at least a majority of the directors then comprising the
Incumbent Board shall be considered a member of the Incumbent Board, excluding
any individual whose initial assumption of office occurs as a result of an
actual or threatened election contest with respect to the election or removal
of directors or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board;

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(iii)    Consummation of a reorganization, merger,
share exchange, amalgamation, recapitalization, consolidation or similar
transaction by and among the Company and another Person, including, for this
purpose, a transaction as a result of which another Person owns the Company or
all or substantially all of the Company’s assets, either directly or through
one or more subsidiaries (a “Business Combination”),
in each case, unless, following such Business Combination, (A) all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Voting Securities immediately
prior to such Business Combination beneficially own, directly or indirectly,
more than 50% of the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors (or equivalent
management personnel) of the Person resulting from such Business Combination or
that, as a result of such Business Combination, owns the Company or all or
substantially all of the Company’s assets, either directly or through one or
more subsidiaries, in substantially the same proportions as their ownership of
the Outstanding Company Voting Securities immediately prior to such Business
Combination; (B) no Person (excluding any Person resulting from such Business
Combination, or that, as a result of such Business Combination, owns the
Company or all or substantially all of the Company’s assets, either directly or
through one or more subsidiaries, or any employee benefit plan (or related
trust) of the foregoing) beneficially owns, directly or indirectly, 50% or more
of the then outstanding shares of common stock or the combined voting power of
the then outstanding voting securities entitled to vote generally in the
election of directors (or equivalent management personnel) of the Person
resulting from such Business Combination or that, as a result of such Business
Combination, owns the Company or all or substantially all of the Company’s
assets, either directly or through one or more subsidiaries, except to the
extent that such ownership existed with respect to the Company prior to the
Business Combination; and (C) at least a majority of the members of the board
of directors (or equivalent management personnel) of the Person resulting from
such Business Combination or that, as a result of such Business Combination,
owns the Company or all or substantially all of the Company’s assets, either
directly or through one or more subsidiaries, were members of the Incumbent
Board at the time of the execution of the initial agreement, or of the action
of the board, pursuant to which such Business Combination is effected or
approved; or

(iv)    Approval by the shareholders of the Company
of a complete liquidation or dissolution of the Company or the sale or other
disposition of all or substantially all of the Company’s assets.

“Code” means the Internal Revenue Code of 1986, as amended
from time to time, and the regulations promulgated thereunder.

“Committee” means the Compensation Committee of the Board, or
such other committee of the Board as may be designated by the Board to
administer the Plan.

“Company” means AXIS Capital Holdings Limited and any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business or assets of AXIS
Capital Holdings Limited.

“Disability” shall have the meaning ascribed to such term in
the employee health care plan maintained by the Company, or if no such plan
exists, at the discretion of the Committee.

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“Exchange Act” means the Securities Exchange Act of 1934, as
amended, or any successor statute thereto.

“Exercise Price” means (a) in the case of Options, the
price specified in the applicable Award Agreement as the price-per-Share at
which Shares may be purchased pursuant to such Option or (b) in the case
of SARs, the price specified in the applicable Award Agreement as the reference
price-per-Share used to calculate the amount payable to the Participant.

“Fair Market Value” means (a) with respect to any property
other than Shares, the fair market value of such property determined by such
methods or procedures as shall be established from time to time by the
Committee and (b) with respect to the Shares, as of any date, (i) the
closing per share sales price of the Shares (A) as reported by the NYSE
for such date or (B) if the Shares are listed on any other national stock
exchange, as reported on the stock exchange composite tape for securities
traded on such stock exchange for such date or, with respect to each of
clauses (A) and (B), if there were no sales on such date, on the closest
preceding date on which there were sales of Shares or (ii) in the event
there shall be no public market for the Shares on such date, the fair market
value of the Shares as determined in good faith by the Committee.

“Incentive Stock Option” means an option to purchase Shares
from the Company that (a) is granted under Section 6(b) and
(b) is intended to qualify for special Federal income tax treatment
pursuant to Sections 421 and 422 of the Code,
as now constituted or subsequently amended, or pursuant to a successor
provision of the Code, and which is so designated in the applicable Award
Agreement.

“IRS” means the Internal Revenue Service or any successor
thereto and includes the staff thereof.

“NYSE” means the New York Stock Exchange or any successor
thereto.

“Non-Employee Director” means a member of the Board who is
neither (a) an employee of the Company nor (b) an employee of any
Affiliate.

“Nonqualified Stock Option” means an option to purchase
Shares from the Company that (a) is granted under Section 6(b) and
(b) is not an Incentive Stock Option.

“Option” means an Incentive Stock Option or a Nonqualified
Stock Option or both, as the context requires.

“Participant” means any director, officer, employee or
consultant (including any prospective director, officer, employee
or consultant) of the Company or its Affiliates who is eligible for an Award
under Section 5 and who is selected by the Committee to receive an Award
under the Plan or who receives a Substitute Award pursuant to
Section 4(c).

“Performance Criteria” means the criterion or criteria that
the Committee shall select for purposes of establishing a Performance Goal for
a Performance Period with respect to any Performance Unit under the Plan.

“Performance Goal” means, for a Performance Period, the one
or more goals established by the Committee for the Performance Period based
upon the Performance Criteria.

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“Performance Period” means the one or more periods of time as
the Committee may select over which the attainment of one or more Performance
Goals will be measured for the purpose of determining a Participant’s right to
and the payment of a Performance Unit.

“Performance Unit” means an Award under Section 6(e)
that has a value set by the Committee (or that is determined by reference to a
valuation formula specified by the Committee or the Fair Market Value of
Shares), which value may be paid to the Participant by delivery of such
property as the Committee shall determine, including without limitation, cash
or Shares, or any combination thereof, upon achievement of such Performance
Goals during the relevant Performance Period as the Committee shall establish
at the time of such Award or thereafter.

“Person” shall have the meaning ascribed to such term in
Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d)
thereof, including a “group” as defined in Section 13(d) thereof.

“Plan” means this AXIS Capital Holdings Limited 2007
Long-Term Equity Compensation Plan, as in effect from time to time.

“Restricted Share” means a Share delivered under the Plan
that is subject to certain transfer restrictions, forfeiture provisions and/or
other terms and conditions specified herein and in the applicable Award
Agreement.

“Retirement” shall (a) have the meaning set forth in an
Award Agreement or (b) if there is no definition set forth in an Award
Agreement, means:

(i)    for an employee, such employee’s termination
of employment with the Company and its Affiliates but only if either (A) such
termination shall have occurred on or after the date on which he or she shall
have attained age 60 and prior to such termination such employee shall have
completed 5 years of continuous employment with the Company and its Affiliates
or (B) the Committee by affirmative action determines such termination shall
constitute a Retirement for purposes of the Plan; and

(ii)   for a director, such director’s termination
of service with the Company and its Affiliates but only if either (A) such
termination shall have occurred on or after the date on which he or she shall
have attained age 60 and prior to such termination such director shall have
completed 5 years of continuous employment with the Company and its Affiliates
or (B) the Board by affirmative action determines such termination shall
constitute a Retirement for purposes of the Plan.

Consultants
shall not be eligible for Retirement hereunder.

“RSU” means a restricted stock unit Award that is designated
as such in the applicable Award Agreement and that represents an unfunded and
unsecured promise to deliver Shares, cash, other securities, other Awards or
other property in accordance with the terms of the applicable Award Agreement.

“Rule 16b-3” means Rule 16b-3 as promulgated and
interpreted by the SEC under the Exchange Act or any successor rule or
regulation thereto as in effect from time to time.

“SAR” means a stock appreciation right Award that represents
an unfunded and unsecured promise to deliver Shares, cash, other securities,
other Awards or other property equal in value to the excess, if any, of the
Fair Market Value per Share over the 

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Exercise
Price per Share of the SAR, subject to the terms of the applicable Award
Agreement.

“SEC” means the Securities and Exchange Commission or any
successor thereto and shall include the staff thereof.

“Shares” means shares of common stock of the Company, par
value $0.0125 per share, or such other securities of the Company (a) into
which such shares shall be changed by reason of a recapitalization, merger, consolidation,
split-up, combination, exchange of shares or other similar transaction or
(b) as may be determined by the Committee pursuant to Section 4(b).

“Subsidiary” means any entity in which the Company, directly
or indirectly, possesses 50% or more of the total combined voting power of all
classes of its stock.

“Substitute Awards” shall have the meaning specified in
Section 4(c).

SECTION
3.   Administration.   (a) Composition of Committee.   The Plan shall be
administered by the Committee, which shall be composed of one or more
directors, as determined by the Board; provided that,
to the extent necessary to comply with the rules of the NYSE and Rule 16b-3 and
any other applicable laws or rules, the Committee shall be composed of two or
more directors, all of whom shall be Non-Employee Directors and all of whom
shall (i) meet the independence requirements of the NYSE and (ii) qualify as “Non-Employee
Directors” under Rule 16b-3.

(b)   Authority of Committee.   Subject to the terms of the
Plan and applicable law, and in addition to other express powers and
authorizations conferred on the Committee by the Plan, the Committee shall have
sole and plenary authority to administer the Plan, including, but not limited
to, the authority to (i) designate Participants, (ii) determine the
type or types of Awards to be granted to a Participant, (iii) determine
the number of Shares to be covered by, or with respect to which payments, rights
or other matters are to be calculated in connection with, Awards,
(iv) determine the terms and conditions of any Awards, (v) determine
the vesting schedules of Awards and, if certain performance criteria must be
attained in order for an Award to vest or be settled or paid, establish such
performance criteria and certify whether, and to what extent, such performance
criteria have been attained, (vi) determine whether, to what extent and under
what circumstances Awards may be settled or exercised in cash, Shares, other securities,
other Awards or other property, or canceled, forfeited or suspended and the
method or methods by which Awards may be settled, exercised, canceled,
forfeited or suspended, (vii) determine whether, to what extent and under
what circumstances cash, Shares, other securities, other Awards, other property
and other amounts payable with respect to an Award shall be deferred either
automatically or at the election of the holder thereof or of the Committee,
(viii) interpret, administer, reconcile any inconsistency in, correct
any default in and supply any omission in, the Plan and any instrument or
agreement relating to, or Award made under, the Plan, (ix) establish,
amend, suspend or waive such rules and regulations and appoint such agents as
it shall deem appropriate for the proper administration of the Plan, (x)
accelerate the vesting or exercisability of, payment for or lapse of
restrictions on, Awards, (xi) amend an outstanding Award or grant a replacement
Award for an Award previously granted under the Plan if, in its sole
discretion, the Committee determines that (A) the tax consequences of such
Award to the Company or the Participant differ from those consequences that
were expected to occur on the date the 

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Award
was granted or (B) clarifications or
interpretations of, or changes to, tax law or regulations permit Awards to be
granted that have more favorable tax consequences than initially anticipated and
(xii) make any other determination and take any other action that the Committee
deems necessary or desirable for the administration of the Plan.

(c)   Committee Decisions.   Unless otherwise expressly
provided in the Plan, all designations, determinations, interpretations and
other decisions under or with respect to the Plan or any Award shall be within
the sole and plenary discretion of the Committee, may be made at any time and
shall be final, conclusive and binding upon all persons, including the Company,
any Affiliate, any Participant, any holder or beneficiary of any Award and any
stockholder.

(d)   Indemnification.   No member of the Board, the Committee
or any employee of the Company (each such person, a “Covered Person”) shall be
liable for any action taken or omitted to be taken or any determination made in
good faith with respect to the Plan or any Award hereunder.  Each Covered Person shall be indemnified and
held harmless by the Company against and from (i) any loss, cost,
liability or expense (including attorneys’ fees) that may be imposed upon or
incurred by such Covered Person in connection with or resulting from any
action, suit or proceeding to which such Covered Person may be a party or in
which such Covered Person may be involved by reason of any action taken or
omitted to be taken under the Plan or any Award Agreement and (ii) any and
all amounts paid by such Covered Person, with the Company’s approval, in
settlement thereof, or paid by such Covered Person in satisfaction of any
judgment in any such action, suit or proceeding against such Covered Person;
provided that the Company shall have the right, at its own expense, to assume
and defend any such action, suit or proceeding, and, once the Company gives
notice of its intent to assume the defense, the Company shall have sole control
over such defense with counsel of the Company’s choice.  The foregoing right of indemnification shall
not be available to a Covered Person to the extent that a court of competent
jurisdiction in a final judgment or other final adjudication, in either case
not subject to further appeal, determines that the acts or omissions of such
Covered Person giving rise to the indemnification claim resulted from such
Covered Person’s bad faith, fraud or willful criminal act or omission or that
such right of indemnification is otherwise prohibited by law or by the Company’s
Memorandum of Association or Bye-Laws. 
The foregoing right of indemnification shall not be exclusive of any
other rights of indemnification to which Covered Persons may be entitled under
the Company’s Memorandum of Association or Bye-Laws, as a matter of law, or
otherwise, or any other power that the Company may have to indemnify such
persons or hold them harmless.

(e)   Delegation of Authority to Senior Officers.   The
Committee may delegate, on such terms and conditions as it determines in its
sole and plenary discretion, to one or more senior officers of the Company the
authority to make grants of Awards to officers (other than officers subject to
Section 16 of the Exchange Act), employees and consultants of the Company and
its Affiliates (including any prospective officer, employee or consultant) and
all necessary and appropriate decisions and determinations with respect
thereto; provided, however, that the cash settlement of Awards may only be
permitted with the express written consent of the Committee.

(f)   Awards to Non-Employee Directors.   Notwithstanding
anything to the contrary contained herein, the Board may, in its sole and
plenary discretion, at any time and from 

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time
to time, grant Awards to Non-Employee Directors or administer the Plan with
respect to such Awards.  In any such
case, the Board shall have all the authority and responsibility granted to the
Committee herein.

SECTION
4.   Shares Available for Awards.   (a) Shares Available.   Subject to adjustment as provided in
Section 4(b), the aggregate number of Shares that may be delivered
pursuant to Awards granted under the Plan shall be 5,000,000.  The maximum number of Shares that may be
delivered pursuant to Incentive Stock Options granted under the Plan shall be
5,000,000.  If, after the effective date
of the Plan, any Award granted under the Plan is forfeited, or otherwise
expires, terminates or is canceled without the delivery of Shares, then the
Shares covered by such forfeited, expired, terminated or canceled Award shall
again become available to be delivered pursuant to Awards under the Plan.  If Shares issued upon exercise, vesting or
settlement of an Award, or Shares owned by a Participant (which are not subject
to any pledge or other security interest), are surrendered or tendered to the
Company in payment of the Exercise Price of an Award or any taxes required to
be withheld in respect of an Award, in each case, in accordance with the terms
and conditions of the Plan and any applicable Award Agreement, such surrendered
or tendered Shares shall again become available to be delivered pursuant to
Awards under the Plan; provided, however, that in no event shall such Shares increase the
number of Shares that may be delivered pursuant to Incentive Stock Options
granted under the Plan.

(b)   Adjustments for Changes in Capitalization and Similar Events.   (i)
In the event of any extraordinary dividend or other extraordinary distribution
(whether in the form of cash, Shares, other securities or other property),
recapitalization, stock split, reverse stock split, split-up or spin-off, the
Committee shall, in order to preserve the value of the Award and in the manner
determined by the Committee, adjust any or all of (A) the number of Shares
or other securities of the Company (or number and kind of other securities or
property) with respect to which Awards may be granted, including (1) the
aggregate number of Shares that may be delivered pursuant to Awards granted
under the Plan (including pursuant to Incentive Stock Options), as provided in
Section 4(a) and (2) the maximum number of Shares or other securities
of the Company (or number and kind of other securities or property) with
respect to which Awards may be granted to any Participant in any fiscal year of
the Company and (B) the terms of any outstanding Award, including
(1) the number of Shares or other securities of the Company (or number and
kind of other securities or property) subject to outstanding Awards or to which
outstanding Awards relate and (2) the Exercise Price, if applicable, with
respect to any Award.

(ii)   In the event that the Committee determines
that any reorganization, merger, consolidation, combination, repurchase or
exchange of Shares or other securities of the Company, issuance of warrants or
other rights to purchase Shares or other securities of the Company, or other
similar corporate transaction or event affects the Shares such that an
adjustment is determined by the Committee in its discretion to be appropriate
or desirable, then the Committee may (A) in such manner as it may deem
equitable or desirable, adjust any or all of (1) the number of Shares or
other securities of the Company (or number and kind of other securities or
property) with respect to which Awards may be granted, including (X) the
aggregate number of Shares that may be delivered pursuant 

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to
Awards granted under the Plan, as provided in Section 4(a) and
(Y) the maximum number of Shares or other securities of the Company (or
number and kind of other securities or property) with respect to which Awards
may be granted to any Participant in any fiscal year of the Company and
(2) the terms of any outstanding Award, including (X) the number of
Shares or other securities of the Company (or number and kind of other
securities or property) subject to outstanding Awards or to which outstanding
Awards relate and (Y) the Exercise Price, if applicable, with respect to
any Award, (B) if deemed appropriate or desirable by the Committee, make
provision for a cash payment to the holder of an outstanding Award in
consideration for the cancellation of such Award, including, in the case of an
outstanding Option or SAR, a cash payment to the holder of such Option or SAR
in consideration for the cancellation of such Option or SAR in an amount equal
to the excess, if any, of the Fair Market Value (as of a date specified by the
Committee) of the Shares subject to such Option or SAR over the aggregate
Exercise Price of such Option or SAR and (C) if deemed appropriate or desirable
by the Committee, cancel and terminate any Option or SAR having a per Share
Exercise Price equal to, or in excess of, the Fair Market Value of a Share
subject to such Option or SAR without any payment or consideration therefor.

(c)   Substitute Awards.   Awards may, in the discretion of
the Committee, be granted under the Plan in assumption of, or in substitution
for, outstanding awards previously granted by the Company or any of its
Affiliates or a company acquired by the Company or any of its Affiliates or
with which the Company or any of its Affiliates combines (such Awards, “Substitute
Awards”).  The number of Shares
underlying any Substitute Awards shall be counted against the aggregate number
of Shares available for Awards under the Plan; provided, however, that
Substitute Awards issued in connection with the assumption of, or in
substitution for, outstanding awards previously granted by an entity that is
acquired by the Company or any of its Affiliates or with which the Company or
any of its Affiliates combines shall not be counted against the aggregate
number of Shares available for Awards under the Plan; provided further,
however, that Substitute Awards issued in connection with the assumption of, or
in substitution for, outstanding stock options intended to qualify for special
tax treatment under Sections 421 and 422 of the Code that were previously
granted by an entity that is acquired by the Company or any of its Affiliates
or with which the Company or any of its Affiliates combines shall be counted
against the aggregate number of Shares available for Incentive Stock Options
under the Plan. Notwithstanding anything in this Section 4(c) to the contrary,
Substitute Awards shall not be granted to the extent that such grant would
result in an assumption of, or substitution for, an outstanding Option or SAR
previously granted by the Company or any of its Affiliates, that would have the
effect of reducing the Exercise Price of such outstanding Option or SAR.

(d)   Sources of Shares Deliverable Under Awards.   Any Shares
delivered pursuant to an Award may consist, in whole or in part, of authorized
and unissued Shares or of treasury Shares.

SECTION 5.   Eligibility.   Any director, officer, employee or
consultant (including any prospective director, officer, employee or
consultant) of the Company or any of its Affiliates shall be eligible to be
designated a Participant.

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SECTION 6.   Awards.   (a) Types of Awards. Awards may be made under the Plan in the
form of (i) Options, (ii) SARs, (iii) Restricted Shares,
(iv) RSUs, (v) Performance Units and (vi) other equity-based or
equity-related Awards that the Committee determines are consistent with the
purpose of the Plan and the interests of the Company. Awards may be granted in
tandem with other Awards. No Incentive Stock Option (other than an Incentive
Stock Option that may be assumed or issued by the Company in connection with a
transaction to which Section 424(a) of the Code applies) may be
granted to a person who is ineligible to receive an Incentive Stock Option
under the Code.

(b)   Options.   (i) Grant. Subject to the provisions of the Plan, the Committee
shall have sole and plenary authority to determine the Participants to whom
Options shall be granted, the number of Shares to be covered by each Option,
whether the Option will be an Incentive Stock Option or a Nonqualified Stock
Option and the conditions and limitations applicable to the vesting and
exercise of the Option. In the case of Incentive Stock Options, the terms and
conditions of such grants shall be subject to and comply with such
rules as may be prescribed by Section 422 of the Code and any
regulations related thereto, as may be amended from time to time. All Options
granted under the Plan shall be Nonqualified Stock Options unless the
applicable Award Agreement expressly states that the Option is intended to be
an Incentive Stock Option. If an Option is intended to be an Incentive Stock
Option, and if for any reason such Option (or any portion thereof) shall not
qualify as an Incentive Stock Option, then, to the extent of such
nonqualification, such Option (or portion thereof) shall be regarded as a
Nonqualified Stock Option appropriately granted under the Plan; provided that
such Option (or portion thereof) otherwise complies with the Plan’s
requirements relating to Nonqualified Stock Options.

(ii)   Exercise
Price.   The Exercise Price of each Share covered by an Option
shall be not less than 100% of the Fair Market Value of such Share (determined
as of the date the Option is granted); provided, however, that in the case of an Incentive Stock Option
granted to an employee who, at the time of the grant of such Option, owns stock
representing more than 10% of the voting power of all classes of stock of the
Company or any Affiliate, the per Share Exercise Price shall be no less than
110% of the Fair Market Value per Share on the date of the grant.

(iii)   Vesting
and Exercise.   Each Option shall be vested and exercisable at
such times, in such manner and subject to such terms and conditions as the
Committee may, in its sole and plenary discretion, specify in the applicable
Award Agreement or thereafter. Except as otherwise specified by the Committee
in the applicable Award Agreement, an Option may only be exercised to the
extent that it has already vested at the time of exercise. Except as otherwise
specified by the Committee in the Award Agreement, Options shall become vested
and exercisable with respect to one-third of the Shares subject to such Options
on each of the first three anniversaries of the date of grant. An Option shall
be deemed to be exercised when written or electronic notice of such exercise has
been given to the Company in accordance with the terms of the Award by the
person entitled to exercise the Award and full payment pursuant to
Section ‎6(b)(iv) for the Shares with respect to which the Award is
exercised has been received by the Company. Exercise of an Option in any manner
shall result in a decrease in the number of Shares 

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that
thereafter may be available for sale under the Option and, except as expressly
set forth in Section ‎4(c), in the number of Shares that may be
available for purposes of the Plan, by the number of Shares as to which the
Option is exercised. The Committee may impose such conditions with respect to
the exercise of Options, including, without limitation, any conditions relating
to the application of Federal or state securities laws, as it may deem
necessary or advisable.

(iv)   Payment.   (A) No Shares shall be delivered pursuant to any
exercise of an Option until payment in full of the aggregate Exercise Price
therefor is received by the Company, and the Participant has paid to the
Company an amount equal to any Federal, state, local and foreign income and
employment taxes required to be withheld. Such payments may be made in cash (or
its equivalent) or, in the Committee’s sole and plenary discretion, any other
manner, including (1) by exchanging Shares owned by the Participant (which
are not the subject of any pledge or other security interest) or (2) if
there shall be a public market for the Shares at such time, subject to such
rules as may be established by the Committee, through delivery of
irrevocable instructions to a broker to sell the Shares otherwise deliverable
upon the exercise of the Option and to deliver promptly to the Company an
amount equal to the aggregate Exercise Price, or by a combination of the foregoing;
provided that the combined value of all
cash and cash equivalents and the Fair Market Value of any such Shares so
tendered to the Company as of the date of such tender is at least equal to such
aggregate Exercise Price and the amount of any Federal, state, local or foreign
income or employment taxes required to be withheld.

(B)   Wherever in the Plan or any Award Agreement a
Participant is permitted to pay the Exercise Price of an Option or taxes
relating to the exercise of an Option by delivering Shares, the Participant
may, subject to procedures satisfactory to the Committee, satisfy such delivery
requirement by presenting proof of beneficial ownership of such Shares, in
which case the Company shall treat the Option as exercised without further
payment and shall withhold such number of Shares from the Shares acquired by
the exercise of the Option.

(v)   Expiration.   Each
Option shall expire at the time or times, and on the other terms and
conditions, set forth in the applicable Award Agreement, except that no Option
may be exercisable after the tenth anniversary of the date the Option is
granted.

(c)   SARs.   (i) Grant. Subject to the provisions of the Plan, the Committee
shall have sole and plenary authority to determine the Participants to whom
SARs shall be granted, the number of Shares to be covered by each SAR, the
Exercise Price thereof and the conditions and limitations applicable to the
exercise thereof. SARs may be granted in tandem with another Award, in addition
to another Award or freestanding and unrelated to another Award. SARs granted
in tandem with, or in addition to, an Award may be granted either at the same
time as the Award or at a later time.

(ii)   Exercise
Price.   The Exercise Price of each Share covered by a SAR shall
be not less than 100% of the Fair Market Value of such Share (determined as of
the date the SAR is granted).

(iii)   Exercise.   A
SAR shall entitle the Participant to receive an amount equal to the excess, if
any, of the Fair Market Value of a Share on the date of exercise of the SAR

 10

 

over
the Exercise Price thereof. The Committee shall determine, in its sole and
plenary discretion, whether a SAR shall be settled in cash, Shares, other
securities, other Awards, other property or a combination of any of the
foregoing.

(iv)   Other
Terms and Conditions.   Subject to the terms of the Plan and any
applicable Award Agreement, the Committee shall determine, at or after the
grant of a SAR, the vesting criteria, term, methods of exercise, methods and
form of settlement and any other terms and conditions of any SAR. Any such
determination by the Committee may be changed by the Committee from time to
time and may govern the exercise of SARs granted or exercised thereafter. The
Committee may impose such conditions or restrictions on the exercise of any SAR
as it shall deem appropriate or desirable.

(v)   Expiration.   Each SAR shall expire at the time or
times, and on the other terms and conditions, set forth in the applicable Award
Agreement, except that no SAR may be exercisable after the tenth anniversary of
the date the SAR is granted.

(d)   Restricted
Shares and RSUs.   (i) Grant. Subject
to the provisions of the Plan, the Committee shall have sole and plenary
authority to determine the Participants to whom Restricted Shares and RSUs
shall be granted, the number of Restricted Shares and RSUs to be granted to
each Participant, the duration of the period during which, and the conditions,
if any, under which, the Restricted Shares and RSUs may vest or may be
forfeited to the Company (the “Period of Restriction”) and the other terms and
conditions of such Awards. Subject to Section 3, no grant of Restricted Shares
or RSUs shall become vested with respect to all the Restricted Shares or RSUs
subject to such grant over a period that is shorter than three years after the
date of grant; provided that Restricted Shares
or RSUs that are subject to performance-based vesting criteria, may become
vested with respect to all the Restricted Shares or RSUs covered by the
applicable grant over a period that is not shorter than one year after the date
of grant.

(ii)   Transfer
Restrictions.   Restricted Shares and RSUs may not be sold,
assigned, transferred, pledged or otherwise encumbered except as provided in
the Plan or as may be provided in the applicable Award Agreement; provided, however, that
prior to vesting, Restricted Shares and RSUs may not be transferred.
Certificates issued in respect of Restricted Shares shall be registered in the
name of the Participant and deposited by such Participant, together with a
stock power endorsed in blank, with the Company or such other custodian as may
be designated by the Committee or the Company, and shall be held by the Company
or other custodian, as applicable, until such time as the restrictions
applicable to such Restricted Shares lapse. Upon the lapse of the restrictions
applicable to such Restricted Shares, the Company or other custodian, as
applicable, shall deliver such certificates to the Participant or the
Participant’s legal representative.

(iii)   Payment/Lapse
of Restrictions.   Each RSU shall be granted with respect to one
Share or shall have a value equal to the Fair Market Value of one Share. RSUs
shall be paid in cash, Shares, other securities, other Awards or other
property, as determined in the sole and plenary discretion of the Committee,
upon the lapse of restrictions applicable thereto, or otherwise in accordance
with the applicable Award Agreement.

(iv)   Dividends
and Other Distributions.   During the Period of Restriction,
Participants holding Restricted Shares or RSUs granted hereunder may, as
determined by the Committee or specified in the applicable Award Agreement, be
paid or credited with 

 11
 

(A) regular
dividends paid with respect to the Shares underlying the Restricted Shares
while they are so held or (B) regular dividends paid with respect to the
number of Shares equivalent to the number of RSUs while they are so held. Such
dividends may, as determined by the Committee or specified in the applicable
Award Agreement, be credited with interest from the date of the dividends
through the date of payment. The Committee may also apply any restrictions to
the dividends that the Committee deems appropriate and as are set forth in the
Award Agreement.

(e)   Performance
Units.   (i) Grant. Subject
to the provisions of the Plan, the Committee shall have sole and plenary
authority to determine the Participants to whom Performance Units shall be
granted and the terms and conditions thereof.

(ii)   Value of
Performance Units.   Each
Performance Unit shall have an initial value that is established by the
Committee at the time of grant. The Committee shall set Performance Goals in
its discretion which, depending on the extent to which they are met during a
Performance Period, will determine the number and value of Performance Units
that will be paid out to the Participant.

(iii)   Earning
of Performance Units.   Subject to the provisions of the Plan,
after the applicable Performance Period has ended, the holder of Performance
Units shall be entitled to receive a payout of the number and value of
Performance Units earned by the Participant over the Performance Period, to be
determined by the Committee, in its sole and plenary discretion, as a function
of the extent to which the corresponding Performance Goals have been achieved.

(iv)   Form and
Timing of Payment of Performance Units.   Subject to the provisions of the Plan, the Committee, in
its sole and plenary discretion, may pay earned Performance Units in the form
of cash or in Shares (or in a combination thereof) that has an aggregate Fair
Market Value equal to the value of the earned Performance Units at the close of
the applicable Performance Period. Such Shares may be granted subject to any
restrictions in the applicable Award Agreement deemed appropriate by the
Committee. The determination of the Committee with respect to the form and
timing of payout of such Awards shall be set forth in the applicable Award
Agreement.

(f)   Other
Stock-Based Awards.   Subject to the provisions of the Plan, the
Committee shall have the sole and plenary authority to grant to Participants
other equity-based or equity-related Awards (including, but not limited to,
fully-vested Shares) in such amounts and subject to such terms and conditions
as the Committee shall determine.

(g)   Dividend
Equivalents.   In the sole and plenary discretion of the
Committee, an Award, other than an Option or SAR, may provide the Participant
with dividends or dividend equivalents, payable in cash, Shares, other
securities, other Awards or other property, on a current or deferred basis, on
such terms and conditions as may be determined by the Committee in its sole and
plenary discretion, including, without limitation, payment directly to the
Participant, withholding of such amounts by the Company subject to vesting of
the Award or reinvestment in additional Shares, Restricted Shares or other
Awards.

SECTION 7.   Amendment
and Termination.   (a) Amendments to the Plan.
Subject to any applicable law or government regulation, to any requirement that
must be satisfied if the Plan is intended to be a shareholder approved plan for
purposes of the rules of the 

 12
 

NYSE or any successor exchange or quotation system
on which the Shares may be listed or quoted, the Plan may be amended, modified
or terminated by the Board without the approval of the stockholders of the
Company except that stockholder approval shall be required for any amendment
that would (i) increase the maximum number of Shares for which Awards may
be granted under the Plan or increase the maximum number of Shares that may be
delivered pursuant to Incentive Stock Options granted under the Plan; provided, however, that
any adjustment under Section ‎4(b) shall not constitute an increase
for purposes of this Section 7(a) or (ii) change the class of
employees or other individuals eligible to participate in the Plan. No
modification, amendment or termination of the Plan may, without the consent of
the Participant to whom any Award shall theretofor have been granted,
materially and adversely affect the rights of such Participant (or his or her
transferee) under such Award, unless otherwise provided by the Committee in the
applicable Award Agreement.

(b)   Amendments
to Awards.   The Committee may waive any conditions or rights
under, amend any terms of, or alter, suspend, discontinue, cancel or terminate
any Award theretofor granted, prospectively or retroactively; provided,
however, that, except as set forth in the Plan, unless otherwise provided by
the Committee in the applicable Award Agreement, any such waiver, amendment,
alteration, suspension, discontinuance, cancellation or termination that would
materially and adversely impair the rights of any Participant or any holder or
beneficiary of any Award theretofor granted shall not to that extent be
effective without the consent of the impaired Participant, holder or
beneficiary.

(c)   Adjustment
of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events.   The
Committee is hereby authorized to make adjustments in the terms and conditions
of, and the criteria included in, Awards in recognition of unusual or
nonrecurring events (including, without limitation, the events described in
Section ‎4(b) or the occurrence of a Change of Control) affecting the
Company, any Affiliate, or the financial statements of the Company or any
Affiliate, or of changes in applicable rules, rulings, regulations or other
requirements of any governmental body or securities exchange, accounting
principles or law (i) whenever the Committee, in its sole and plenary
discretion, determines that such adjustments are appropriate or desirable,
including, without limitation, providing for a substitution or assumption of
Awards, accelerating the exercisability of, lapse of restrictions on, or
termination of, Awards or providing for a period of time for exercise prior to
the occurrence of such event, (ii) if deemed appropriate or desirable by
the Committee, in its sole and plenary discretion, by providing for a cash
payment to the holder of an Award in consideration for the cancellation of such
Award, including, in the case of an outstanding Option or SAR, a cash payment
to the holder of such Option or SAR in consideration for the cancellation of
such Option or SAR in an amount equal to the excess, if any, of the Fair Market
Value (as of a date specified by the Committee) of the Shares subject to such
Option or SAR over the aggregate Exercise Price of such Option or SAR and
(iii) if deemed appropriate or desirable by the Committee, in its sole and
plenary discretion, by canceling and terminating any Option or SAR having a per
Share Exercise Price equal to, or in excess of, the Fair Market Value of a
Share subject to such Option or SAR without any payment or consideration
therefor.

 13
 

 

SECTION 8.   Change
of Control.   Unless
otherwise provided in the applicable Award Agreement or any other agreement
between the applicable Participant and the Company, in the event of a Change of
Control after the date of the adoption of the Plan, unless provision is made in
connection with the Change of Control for (a) assumption of Awards
previously granted or (b) substitution for such Awards of new awards
covering stock of a successor corporation or its “parent corporation” (as
defined in Section 424(e) of the Code) or “subsidiary corporation”
(as defined in Section 424(f) of the Code) with appropriate
adjustments as to the number and kinds of shares and the Exercise Prices, if
applicable, (i) any outstanding Options or SARs then held by Participants
that are unexercisable or otherwise unvested shall automatically be deemed
exercisable or otherwise vested, as the case may be, as of immediately prior to
such Change of Control, (ii) all Performance Units shall be paid out as if
the date of the Change of Control were the last day of the applicable
Performance Period and “target performance levels” had been attained and
(iii) all other outstanding Awards (including Restricted Shares and RSUs)
then held by Participants that are unexercisable, unvested or still subject to
restrictions or forfeiture, shall automatically be deemed exercisable and
vested and all restrictions and forfeiture provisions related thereto shall
lapse as of immediately prior to such Change of Control.

SECTION 9.   General
Provisions.   (a) Nontransferability. During the Participant’s lifetime, each
Award (and any rights and obligations thereunder) shall be exercisable only by
the Participant, or, if permissible under applicable law, by the Participant’s
legal guardian or representative, and no Award (or any rights and obligations
thereunder) may be assigned, alienated, pledged, attached, sold or otherwise
transferred or encumbered by a Participant otherwise than by will or by the
laws of descent and distribution, and any such purported assignment, alienation,
pledge, attachment, sale, transfer or encumbrance shall be void and
unenforceable against the Company or any Affiliate; provided
that (i) the designation of a beneficiary shall not constitute an
assignment, alienation, pledge, attachment, sale, transfer or encumbrance and
(ii) the Board or the Committee may permit further transferability, on a
general or specific basis, and may impose conditions and limitations on any
permitted transferability; provided, however, that Awards cannot be transferred for consideration;
provided further, however,
that Incentive Stock Options granted under the Plan shall not be transferable
in any way that would violate Section 1.422-2(a)(2) of the
Treasury Regulations. All terms and conditions of the Plan and all Award
Agreements shall be binding upon any permitted successors and assigns.

(b)   No
Rights to Awards.   No Participant or other Person shall have
any claim to be granted any Award, and there is no obligation for uniformity of
treatment of Participants or holders or beneficiaries of Awards. The terms and
conditions of Awards and the Committee’s determinations and interpretations
with respect thereto need not be the same with respect to each Participant and
may be made selectively among Participants, whether or not such Participants
are similarly situated.

(c)   Share
Certificates.   All certificates for Shares or other securities
of the Company or any Affiliate delivered under the Plan pursuant to any Award
or the exercise thereof shall be subject to such stop transfer orders and other
restrictions as the Committee may deem advisable under the Plan, the applicable
Award Agreement or the rules, regulations and other requirements of the SEC,
NYSE or any other stock exchange 

 14
 

or
quotation system upon which such Shares or other securities are then listed or
reported and any applicable Federal or state laws, and the Committee may cause
a legend or legends to be put on any such certificates to make appropriate
reference to such restrictions.

(d)   Withholding.   (i) Authority to Withhold. A Participant may be required to pay
to the Company or any Affiliate, and the Company or any Affiliate shall have
the right and is hereby authorized to withhold from any Award, from any payment
due or transfer made under any Award or under the Plan or from any compensation
or other amount owing to a Participant, the amount (in cash, Shares, other
securities, other Awards or other property) of any applicable withholding taxes
in respect of an Award, its exercise or any payment or transfer under an Award
or under the Plan and to take such other action as may be necessary in the
opinion of the Committee or the Company to satisfy all obligations for the
payment of such taxes.

(ii)   Alternative
Ways to Satisfy Withholding Liability.   Without limiting the
generality of clause (i) above, a Participant may satisfy, in whole
or in part, the foregoing withholding liability by delivery of Shares owned by
the Participant (which are not subject to any pledge or other security interest
and which have been owned by the Participant for at least six months)
having a Fair Market Value equal to such withholding liability or, at the
discretion of the Company, by having the Company withhold from the number of
Shares otherwise issuable pursuant to the exercise of the Option or SAR, or the
lapse of the restrictions on any other Awards (in the case of SARs and other
Awards, if such SARs and other Awards are settled in Shares), a number of
Shares having a Fair Market Value equal to such withholding liability.

(e)   Section 409A
of the Code.   Participants are solely responsible and liable
for the satisfaction of all taxes and penalties that may arise in connection
with Awards (including any taxes arising under Section 409A of the Code),
and the Company shall not have any obligation to indemnify or otherwise hold
any participant harmless from any or all of such taxes. The Committee shall
have the discretion to organize any deferral program, to require deferral
election forms, and to grant or to unilaterally modify any Award in a manner
that (i) conforms with the requirements of Section 409A of the Code,
(ii) voids any Participant election to the extent it would violate
Section 409A of the Code and (iii) for any distribution event or
election that could be expected to violate Section 409A of the Code, make
the distribution only upon the earliest of the first to occur of a “permissible
distribution event” within the meaning of Section 409A of the Code, or a
distribution event that the participant elects in accordance with
Section 409A of the Code. The Committee shall have the sole discretion to
interpret the requirements of the Code, including Section 409A, for
purposes of the Plan and all Awards.

(f)   Award
Agreements.   Each Award hereunder shall be evidenced by an
Award Agreement, which shall be delivered to the Participant and shall specify
the terms and conditions of the Award and any rules applicable thereto,
including, but not limited to, the effect on such Award of the death,
disability or termination of employment or service of a Participant and the
effect, if any, of such other events as may be determined by the Committee.

(g)   No Limit
on Other Compensation Arrangements.   Nothing contained in the
Plan shall prevent the Company or any Affiliate from adopting or continuing in
effect 

 15
 

other
compensation arrangements, which may, but need not, provide for the grant of
options, restricted stock, shares and other types of equity-based awards
(subject to stockholder approval if such approval is required), and such
arrangements may be either generally applicable or applicable only in specific
cases.

(h)   No Right
to Employment.   The grant of an Award shall not be construed as
giving a Participant the right to be retained as a director, officer, employee
or consultant of or to the Company or any Affiliate, nor shall it be construed
as giving a Participant any rights to continued service on the Board. Further,
the Company or an Affiliate may at any time dismiss a Participant from
employment or discontinue any directorship or consulting relationship, free
from any liability or any claim under the Plan, unless otherwise expressly
provided in the Plan or in any Award Agreement.

(i)   No
Rights as Stockholder.   No Participant or holder or beneficiary
of any Award shall have any rights as a stockholder with respect to any Shares
to be distributed under the Plan until he or she has become the holder of such
Shares. Notwithstanding the foregoing, in connection with each grant of
Restricted Shares, except as provided in the applicable Award Agreement, the
Participant shall be entitled to the rights of a stockholder (including the
right to vote and receive dividends) in respect of such Restricted Shares.
Except as otherwise provided in Section ‎4(b), Section ‎7(c) or the applicable Award Agreement,
no adjustments shall be made for dividends or distributions on (whether
ordinary or extraordinary, and whether in cash, Shares, other securities or
other property), or other events relating to, Shares subject to an Award for
which the record date is prior to the date such Shares are delivered.

(j)   Governing
Law.   The validity, construction and effect of the Plan and any
rules and regulations relating to the Plan and any Award Agreement shall
be determined in accordance with the laws of Bermuda, without giving effect to
the conflict of laws provisions thereof.

(k)   Severability.   If
any provision of the Plan or any Award is or becomes or is deemed to be
invalid, illegal or unenforceable in any jurisdiction or as to any Person or
Award, or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be construed or deemed
amended to conform to the applicable laws, or if it cannot be construed or
deemed amended without, in the determination of the Committee, materially
altering the intent of the Plan or the Award, such provision shall be construed
or deemed stricken as to such jurisdiction, Person or Award and the remainder
of the Plan and any such Award shall remain in full force and effect.

(l)   Other
Laws.   The Committee may refuse to issue or transfer any Shares
or other consideration under an Award if, acting in its sole and plenary
discretion, it determines that the issuance or transfer of such Shares or such other
consideration might violate any applicable law or regulation or entitle the
Company to recover the same under Section 16(b) of the Exchange Act,
and any payment tendered to the Company by a Participant, other holder or
beneficiary in connection with the exercise of such Award shall be promptly
refunded to the relevant Participant, holder or beneficiary. Without limiting
the generality of the foregoing, no Award granted hereunder shall be construed
as an offer to sell securities of the Company, and no such offer shall be
outstanding, 

 16
 

unless
and until the Committee in its sole and plenary discretion has determined that
any such offer, if made, would be in compliance with all applicable
requirements of the U.S. Federal and any other applicable securities laws.

(m)   No Trust
or Fund Created.   Neither the Plan nor any Award shall create
or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company or any Affiliate, on one hand, and a
Participant or any other Person, on the other hand. To the extent that any
Person acquires a right to receive payments from the Company or any Affiliate
pursuant to an Award, such right shall be no greater than the right of any
unsecured general creditor of the Company or such Affiliate.

(n)   No
Fractional Shares.   No fractional Shares shall be issued or
delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities or other property shall be paid or transferred
in lieu of any fractional Shares or whether such fractional Shares or any
rights thereto shall be canceled, terminated or otherwise eliminated.

(o)   Requirement
of Consent and Notification of Election Under Section 83(b) of the
Code or Similar Provision.   No election under
Section 83(b) of the Code (to include in gross income in the year of
transfer the amounts specified in Section 83(b) of the Code) or under
a similar provision of law (whether United States, United Kingdom or otherwise)
may be made unless expressly permitted by the terms of the applicable Award
Agreement or by action of the Committee in writing prior to the making of such
election. If an Award recipient, in connection with the acquisition of Shares
under the Plan or otherwise, is expressly permitted under the terms of the applicable
Award Agreement or by such Committee action to make such an election and the
Participant makes the election, the Participant shall notify the Committee of
such election within ten days of filing notice of the election with the IRS or
other governmental authority, in addition to any filing and notification
required pursuant to regulations issued under Section 83(b) of the
Code or other applicable provision.

(p)   Requirement
of Notification Upon Disqualifying Disposition Under
Section 421(b) of the Code.   If any Participant shall
make any disposition of Shares delivered pursuant to the exercise of an
Incentive Stock Option under the circumstances described in
Section 421(b) of the Code (relating to certain disqualifying
dispositions) or any successor provision of the Code, such Participant shall
notify the Company of such disposition within ten days of such disposition.

(q)   Headings.   Headings
are given to the Sections and subsections of the Plan solely as a convenience
to facilitate reference. Such headings shall not be deemed in any way material
or relevant to the construction or interpretation of the Plan or any provision
thereof.

SECTION 10.   Term of
the Plan.   (a) Effective Date. The Plan shall be effective as of the date
of its adoption by the Board and approval by the Company’s stockholders; provided, however, that
no Incentive Stock Options may be granted under the Plan unless it is approved
by the Company’s stockholders within twelve (12) months before or after the
date the Plan is adopted by the Board.

(b)   Expiration
Date.   No Award shall be granted under the Plan after the tenth
anniversary of the date the Plan is approved under Section 10(a). Unless
otherwise 

 17
 

expressly
provided in the Plan or in an applicable Award Agreement, any Award granted
hereunder may, and the authority of the Board or the Committee to amend, alter,
adjust, suspend, discontinue or terminate any such Award or to waive any
conditions or rights under any such Award shall, nevertheless continue
thereafter.

 18Exhibit
10.1

SEPARATION
AGREEMENT AND MUTUAL RELEASE

THIS
SEPARATION AGREEMENT AND MUTUAL RELEASE (Agreement) is made and entered into by
and between TIMOTHY WALBERT (Employee), an individual, and NeoPharm, Inc. (the
Company). Employee’s employment with the Company will terminate effective May
31, 2007 as part of the Company’s reduction-in-force. Employee’s last day of
work will be May 31, 2007.

1.             In exchange for the considerations
set forth herein, the Company agrees to: a) pay Employee the total amount of
One Hundred Twenty Thousand Dollars ($120,000.00), minus federal or state tax
withholdings, during the period of June 1, 2007 through November 30, 2007, on
the Company’s regularly scheduled payroll dates during that period; b)
reimburse the Employee for the cost of COBRA medical insurance coverage
(including the administrative fee) for Employee and any eligible dependents,
for the period of June 1, 2007 through July 31, 2007, assuming Employee is
eligible for and elects COBRA coverage for that period and he/she is not otherwise eligible for
medical insurance coverage during that period under any other employer’s group
health insurance plan. The COBRA reimbursement payments referenced above will
be made directly to the Employee assuming the Employee provides proof of his/her election of COBRA and proof of
payment of the COBRA payments to the Company’s group medical insurer. Employee
will remain responsible for complying with all the other requirements of COBRA,
including continuing to pay for his/her
medical insurance after the Company is no longer obligated to provide
reimbursement of such payments. The Company also agrees not to contest any
claim for unemployment benefits Employee may submit for the period starting
June 1, 2007.

2.             The promises and payments described
above in paragraph 1 are in full, final and complete settlement of any claim
(other than for payment of salary and benefits earned through the final day of
employment) that has or could possibly be made by Employee in connection with his/her employment with or the termination
of his/her employment with the
Company. Except by operation of this Agreement, the Company has no duty to make
the payments described in paragraph 1 above.

3.             In consideration of the payments
and promises made by the Company to Employee in paragraph 1 above, Employee
hereby releases and discharges the Company, its officers, directors,
shareholders, parents, subsidiaries, affiliates, supervisors, managers,
employees, agents, representatives, and attorneys, and its and their predecessors,
successors, heirs, executors, administrators, and assigns (“Released Parties”)
from any and all claims, actions, causes of action, grievances, suits, charges,
or complaints of any kind or nature whatsoever, that he/she ever had or now has, whether fixed or contingent,
liquidated or unliquidated, and whether arising in tort, contract, statute, or
equity, before any federal, state, local, or private court, agency, arbitrator,
mediator, or other entity, regardless of the relief or remedy. Without limitation,
this release specifically includes any and all claims arising from any alleged
violation of the Released Parties under Title VII of the Civil Rights Act of
1964, as amended; the Rehabilitation Act of 1973, as amended; the Employee
Retirement Income Security Act of 1974, as amended; the Civil Rights Act of
1991; the Age Discrimination in Employment Act; the Americans With Disabilities
Act; the Family and Medical Leave Act; the Illinois Human Rights Act; and any
other statutory claim or common-law claim, including but not limited to claims
for breach of contract, wrongful discharge, defamation, and invasion of
privacy. This release does not affect claims that arise in the future after the
date on which Employee’s right to revoke this Agreement expires.

4.             The Company hereby agrees to
release and discharge Employee from any and all claims, actions, causes of
action, grievances, suits, charges, or complaints of any kind or nature
whatsoever, that it ever had or now has, whether fixed or contingent, 1iquidated
or unliquidated, and whether arising in tort, contract, statute, or equity,
before any federal, state, local, or private court, agency, arbitrator,
mediator, or other entity, regardless of the relief or remedy. Notwithstanding
this paragraph 4, the Company is not releasing any claims, actions, causes of
action, grievances, suits, charges, or complaints 

relating to any
negligent or other improper actions of Employee which occurred during his
employment with the Company, and of which the Company is presently unaware.

5.             Employee agrees to fully cooperate
with the Company at any time hereafter in any and all investigations, inquiries
or litigation whether in any judicial, administrative, or public, quasi-public
or private forum, in which the Company is involved, including, but not limited
to, the class action litigation involving the Company which is currently
pending in the federal court for the Northern District of Illinois, whether or
not Employee is a defendant in such investigations, inquiries, proceedings or
litigation. Employee shall provide truthful and accurate testimony, background
information, and other support and cooperation as the Company may reasonably
request. The Company will compensate Employee for all travel expenses, attorney’s
fees, and preparation expenses and lost wages associated with pursuit of
actions necessary to comply with this paragraph 5.

6.             Employee agrees not to file,
charge, claim, sue, or cause or permit to be filed, charged, or claimed any
action for any form of relief, whether in law or equity, against the Released
Parties involving his/her
employment with the Company, the termination of his/her employment with the Company, or involving any
continuing effects of his/her
employment with the Company or termination of employment with the Company.

7.             Employee agrees that he/she will keep the terms and amounts set
forth in this Agreement completely confidential and will not disclose any
information concerning this Agreement’s terms and amounts to any person other
than his/her attorney,
accountants, tax advisors and immediate family.

8.             Employee waives any right to
reinstatement and agrees not to apply for reemployment with the Company.

9.             Employee acknowledges that:

i.                He/she is advised in writing, by this
written Agreement, to consult with an attorney about this Agreement;

ii.             He/she was given a forty-five (45)
day-period in which to consider signing this Agreement;

iii.          After he/she signs this Agreement, Employee shall
have seven (7) days in which to change his/her
mind and revoke his/her acceptance
of this Agreement by notifying Mr. Laurence P. Birch, President and CEO of the
Company, in writing of his/her
election to revoke this Agreement. None of the payments referenced in paragraph
1 above will be made until the revocation period in this subparagraph has
expired and Employee has not revoked this Agreement; and

iv.         He/she received a copy of the attached list
containing the positions and ages of the employees affected by the Company’s
current reduction-in-force, as well as the positions and ages of
the employees not affected by the reduction-in-force.

10.           Employee represents and certifies
that he/she has carefully read and
fully understands all of the provisions and effects of this Agreement, that the
Company has made no representations to him/her
about the effect of this Agreement or its terms, and that he/she has signed this Agreement of his/her own free will and volition.

11.           Each party to this Agreement shall
bear its and his/her own costs and
attorney’s fees.

12.           The Company is entering into this
Agreement solely for business purposes and this Agreement shall not be
construed as an admission of liability or wrongdoing.

13.           This Agreement sets forth the entire
agreement between the parties pertaining to the subject matter of this
Agreement, and fully supersedes any and all prior agreements or understandings
between the parties pertaining to actual or potential claims arising from
Employee’s employment with the 

Company or termination of
Employee’s employment with the Company. Notwithstanding this paragraph,
Employee agrees that he/she will
continue to be bound by, and will fully comply with, the Confidentiality
Agreement which he/she and the
Company executed previously.

PLEASE
READ VERY CAREFULLY.

THIS SEPARATION AGREEMENT AND MUTUAL RELEASE
INCLUDES A RELEASE OF

ALL KNOWN AND UNKNOWN EXISTING CLAIMS.

IN
WITNESS WHEREOF, Employee and the Company have voluntarily signed this
Separation Agreement and Mutual Release consisting of 4 pages on the date(s)
set forth below.

	
   

  	
  

  	
  NEOPHARM, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  By:

  	
  /s/ Laurence P. Birch

  	
   

  	 

	
   

  	
   

  	
   

  	
  Laurence P. Birch, President & CEO

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  Dated:

  	
  May 10, 2007

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  /s/ Timothy P. Walbert

  	
   

  	 

	
   

  	
   

  	
   

  	
  Timothy Walbert

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  Dated:

  	
  May 10, 2007

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]