Document:

Exhibit 10.1

 

NATIONAL
SEMICONDUCTOR CORPORATION

DEFERRED
COMPENSATION PLAN

PLAN DOCUMENT

(As Amended Effective May
31, 2004)

 

THIS DEFERRED COMPENSATION PLAN (“Plan”) originally adopted by National
Semiconductor Corporation, a corporation organized and existing under the laws
of the State of Delaware, (hereinafter referred to as the “Employer”) effective
as of June 1, 2001, as hereby amended and restated effective as of November 1,
2001:

 

WITNESSETH:

 

WHEREAS, the Employer adopted this Plan to consolidate previously
deferred incentive awards under the Key Employee Incentive Plan (“KEIP”),
Executive Officer Incentive Plan (“EOIP”), and Key Employee Bonus Plan (“KEBP”)
and to continue to allow certain participants in the KEIP and EOIP the ability
to defer payment of their incentive awards under those plans; and

 

WHEREAS, the Employer’s Benefit Restoration Plan (“BRP”) previously
permitted certain BRP participants to defer up to 30% of Compensation as Annual
Savings Restoration Amounts and provided Annual Profit Sharing Restoration
Amounts for participants whose benefits under the National Semiconductor
Corporation Retirement and Savings Program (RASP) were limited by the Internal
Revenue Code; and

 

WHEREAS, the Employer desires to combine into the Plan the provisions
of the BRP that permit the deferral of Compensation and provide for Annual
Profit Sharing Restoration Amounts, in order to create a single plan and to
provide additional flexibility with respect to future deferrals; and

 

WHEREAS, the Employer also desires to transfer Annual Matching
Restoration Amounts, Annual Profit Sharing Restoration Amounts and Annual
Savings Restoration Amounts previously accrued under the BRP so that they may
be held under a single plan; and

 

WHEREAS, the Employer wishes to amend and restate the Plan in order to
achieve the goals set forth above;

 

NOW, THEREFORE, in consideration of the promises herein contained, it
is hereby declared as follows:

 

1

 

ARTICLE 1

 

DEFINITIONS

 

When used herein, the words and phrases defined hereinafter shall have
the following meaning unless a different meaning is clearly required by the
context.

 

1.01                           “Account” shall mean the Account established
pursuant to Section 3.05 of the Plan.

 

1.02                           “Annual Matching Restoration Amount” shall
mean the amount (as previously defined under the BRP) that remained to the
credit of a Participant under the BRP as of October 31, 2001 and which will no
longer be payable under the BRP after October 31, 2001. Once this amount is
credited to a Participant Account under the Plan, a Participant will no longer
have any right to the amount previously credited under the BRP. In no event
shall a Participant be entitled to the amount credited under this Plan and the
amount that was credited to an account under the BRP prior to November 1, 2001.

 

1.03                           “Annual Profit Sharing Restoration Amount”
shall mean the amount determined in accordance with Section 3.02 of this Plan.

 

Such amount shall also
include the Annual Profit Sharing Restoration Amount that remained to the
credit of a Participant under the BRP as of October 31, 2001 and which will no
longer be payable under the BRP after October 31, 2001. Once this amount is
credited to a Participant Account under the Plan, a Participant will no longer
have any right to the amount previously credited under the BRP. In no event
shall a Participant be entitled to the amount credited under this Plan and the
amount that was credited to an account under the BRP prior to November 1, 2001.

 

1.04                           “Annual Savings Restoration Amount” shall
mean the amount (as previously defined under the BRP) that remained to the
credit of a Participant under the BRP as of October 31, 2001, and which will no
longer be payable under the BRP after October 31, 2001. Once this amount is
credited to a Participant Account under the Plan, a Participant will no longer
have any right to the amount previously credited under the BRP. In no event
shall a Participant be entitled to the amount credited under this Plan and the
amount that was credited to an account under the BRP prior to November 1, 2001.

 

1.05                           “Beneficiary” shall mean the person or
persons last designated by a Participant, by written notice filed with the
Committee, to receive a Plan Benefit upon his or her death. A new Beneficiary
designation may be made with respect to each Deferred Incentive Award Amount or
Deferred Compensation Amount
class year subaccount. In the event a Participant fails to designate a person
or persons as provided above or if no Beneficiary so designated survives the
Participant, then for all purposes of this Plan, the Beneficiary

 

2

 

shall be the person(s)
designated as the beneficiaries by the Participant under the RASP, or, if none,
the Participant’s estate.

 

1.06                           “Benefits” shall mean the value of the
Participant’s Account as credited to the investment options selected by the
Participant from among the investment options authorized by the Committee from
time-to-time under the Plan as reflected in the records of the Participant’s
Account as described in Sections 3.05 and 3.06 of the Plan.

 

1.07                           “Board” shall mean the Board of Directors of
National Semiconductor Corporation.

 

1.08                           “BRP” shall mean the National Semiconductor
Corporation Benefit Restoration Plan.

 

1.09                           “Committee” shall mean The Retirement and
Savings Program Administrative Committee.

 

1.10                           “Compensation” shall mean the sum of:

 

(a)                                  the Employee’s basic or regular rate of
compensation for each payroll period during that portion of a Plan Year in
which the Employee is a Participant in the Plan, plus

 

(b)                                 all overtime, lead time, sales commissions
and shift differential income received during that portion of a Plan Year in
which the Employee is a Participant in the Plan.

 

Compensation does not
include Incentive Awards.

 

1.11                           “Deferred Compensation Amount” shall mean the
amount determined in accordance with Section 3.04 of this Plan.

 

1.12                           “Deferred Incentive Award Amount” shall mean
the amount of a Participant’s Incentive Award that is deferred with respect to
a particular fiscal year of the Employer as determined in accordance with
Section 3.03 of this Plan.

 

Such amount also includes
amounts credited to a Participant Account in the Plan as of June 1, 2001 from
amounts that remained to the credit of a Participant under the provisions of
the KEIP, EOIP or KEBP as of May 31, 2001. In no event shall a Participant be
entitled to the amount credited under this Plan and the amount that was
credited to an account under the KEIP, EOIP or KEBP prior to June 1, 2001.

 

1.13                           “Effective Date” shall mean June 1, 2001,
except that the provisions relating to the deferral of Compensation, Annual
Profit Sharing Restoration Amounts and the consolidation of prior Annual
Matching Restoration Amounts, prior Annual Profit Sharing Restoration Amounts,
and prior Annual Savings Restoration Amounts under the BRP which remained to
the credit of a participant in the BRP as of October 31, 2001, shall be
effective November 1, 2001.

 

3

 

1.14                           “Employer” shall mean National Semiconductor
Corporation.

 

1.15                           “Incentive Award” shall mean the amount
payable to an Employee either under the Employer’s Executive Officer Incentive
Plan (EOIP) or Key Employee Incentive Plan (KEIP) from June 1, 2001 forward.

 

1.16                           “Participant” shall mean an eligible Employee
of the Employer who satisfies the eligibility requirements of Section 2.01 of
the Plan.

 

1.17                           “Plan” shall mean the National Semiconductor
Corporation Deferred Compensation Plan, as amended from time to time.

 

1.18                           “Plan Year” shall mean the Employer’s fiscal
year.

 

1.19                           “RASP” shall mean the National Semiconductor
Corporation Retirement and Savings Program, or any successor plan (or plans)
thereto. In the case of any successor plan, references herein to Sections of
the RASP shall be interpreted as corresponding Sections under the successor
plan.

 

1.20                           Capitalized Terms not defined herein shall
have the meaning attributed to them in the RASP.

 

ARTICLE II

 

ELIGIBILITY

 

2.01                           Eligibility

 

A.  Annual Profit Sharing Restoration Amount

 

An Employee shall be
eligible to receive an Annual Profit Sharing Restoration Amount in any Plan
Year in which he qualifies for an allocation of the Employer’s Annual Profit
Sharing Contribution as a participant under the RASP, but the amount of the
RASP benefit to which he is entitled is reduced by reason of the application of
the limitations set forth in Sections 401(a)(17) or 415(c)(1)(A) of the Code as
applied to the Employee’s compensation under the RASP, or is reduced by the
amount of Compensation deferred pursuant to Section 2.02 of the Plan.  Notwithstanding the foregoing, no Employee
shall be eligible to receive an Annual Profit Sharing Restoration Amount in any
Plan Year beginning after May 30, 2004.

 

B.  Deferred Compensation Amount

 

An Employee shall be
eligible to make deferrals of his Compensation under the Plan if he is on the
Employer’s U.S.

 

4

 

payroll, and (i) holds a
39xx or higher job code and (ii) has made the maximum permitted deferral under
the RASP (provided, however, that this requirement shall not apply to an
Employee who holds both a 43xx or higher job code and a job title of vice
president or above), or such other criteria as is established by the Committee
for eligibility.

 

C.  Deferred Incentive Award Amount

 

An Employee shall be
eligible to make deferrals of his Incentive Award under the Plan if he is on
the Employer’s U.S. payroll, and holds a 39xx or higher job code, or such other
criteria as is established by the Committee for eligibility.

 

2.02                           Enrollment

 

A.  Annual Profit Sharing Restoration Amount

 

An eligible Employee is
automatically enrolled in the Annual Profit Sharing Restoration Amount portion
of this Plan.

 

B.  Deferred Compensation Amount

 

A Participant may enroll in
the Plan for purposes of deferring Compensation by November 30, or such other
date that is specified by the Committee (“enrollment date”), prior to the end
of any calendar year, to be effective as of January 1, of the next succeeding
calendar year, by using such enrollment process as established by the Committee
for this purpose. Such enrollment process shall provide for the election of the
percentage of the Compensation that shall be deferred, the timing of the commencement
of deferrals (in accordance with Section 3.04), the timing for payment of
Compensation (in accordance with Section 4.01), and the form of payment of
Compensation (in accordance with Section 4.05).

 

1.                                       Once a Participant has enrolled in the Plan
for the purpose of deferring Compensation (or previously enrolled in the BRP
for purposes of Annual Savings Restoration Amounts), the election made by the
Participant shall remain in effect until the Participant modifies or revokes
his election. Any modification or revocation by the Participant must be made by
the enrollment date of the calendar year preceding the effective date of such
modification or revocation.

 

2.                                       An Employee hired during a Plan Year who
meets the eligibility requirements of Section 2.01 of the Plan, may make an
election, prior to the date the Employee’s employment commences, to begin
participation 30 days after the Employee’s date of employment. Otherwise, an
Employee who becomes eligible after an enrollment date will be required

 

5

 

to wait until the next
available enrollment date to participate in the Plan.

 

C.  Deferred Incentive Award Amount

 

A Participant may enroll in
the Plan for purposes of deferring an Incentive Award with respect to a
particular fiscal year of the Employer no later than 30 days before the end of
the fiscal year of the Employer, or such other date that is specified by the
Committee, by using such enrollment process as established by the Committee for
this purpose. Such enrollment process shall provide for the election of the
percentage of the Incentive Award that shall be deferred, the timing for
payment of the Incentive Award (in accordance with Section 4.01), and the form
of payment of the Incentive Award (in accordance with Section 4.05). A new
election must be completed for each fiscal year for which a deferral of an
Incentive Award is desired.

 

ARTICLE III

 

BENEFITS

 

3.01 Benefits

 

The maximum Benefits under this Plan to which a Participant shall be
entitled shall be equal to the sum of:

 

(a)          the Participant’s Annual Profit Sharing
Restoration Amount credited pursuant to Section 3.02 (and previously credited
amounts as described in Section 1.03);

 

(b)         the Participant’s Deferred Incentive Award
Amount credited pursuant to Section 3.03 (and previously credited amounts as
described in Section 1.12);

 

(c)          the Participant’s Deferred Compensation
Amount credited pursuant to Section 3.04;

 

(d)         the Participant’s Annual Savings Restoration
Amount;

 

(e)          the Participant’s Annual Matching Restoration
Amount; and

 

(f)            earnings and losses credited to the
Participant’s Account in accordance with Section 3.06.

 

3.02 Annual Profit Sharing Restoration Amount

 

The Annual Profit Sharing Restoration Amount to which a Participant
shall be entitled to for a Plan Year shall be an amount equal to the
difference, if any between (a) and (b) below:

 

6

 

(a)          The amount of the Employer’s Annual Profit
Sharing Contribution, which would have been allocated to a Participant under
the RASP if the Annual Profit Sharing Contribution were determined pursuant to
Section 5.01 B.3. of the RASP and the allocation were determined pursuant to
Section 6.03 A. of the RASP 1) without giving any effect to the limitations
imposed by sections 401(a)(17) and 415 of the Code, as now or hereafter in
effect and 2) by including the amount of Compensation deferred pursuant to
Section 2.02 of the Plan; less

 

(b)         The amount of the Employer’s Annual Profit
Sharing Contribution allocated to the Participant under the RASP.

 

No amounts shall be credited under this Section 3.02 for any Plan Year
beginning after May 30, 2004.

 

3.03 Deferred Incentive
Award Amounts

 

The Deferred Incentive Award Amount which shall be credited to a
Participant’s Account for a Plan Year, shall be equal to the amount of the
Incentive Award with respect to the Employer’s fiscal year ending immediately
before the Plan Year that a Participant has agreed to defer under this Plan
pursuant to procedures established by the Committee. A Participant may agree to
defer receipt of up to 100% of his Incentive Award with respect to the Employer’s
fiscal year ending immediately before the Plan Year.

 

3.04 Deferred Compensation Amounts

 

In the case of a Participant who holds a job code of 39xx or above, the
maximum Deferred Compensation Amount shall be equal to 30% of the Participant’s
Compensation beginning as of the pay date in which the Participant makes the
maximum contributions to the RASP permitted under section 402(g) of the Code
through to the end of the calendar year in which the Participant’s deferral
election applies. Such Participant may elect any whole percentage of his
Compensation between 0% and 30%.

 

In the case of a Participant holding both a 43xx or higher job code and
a job title of vice president or above, the maximum Deferred Compensation
Amount shall be equal to 50% of the Participant’s Compensation for the entire
calendar year in which the Participant’s election applies, allowing deferrals
to start at the beginning of a calendar year before a Participant reaches the
maximum contributions to the RASP permitted under section 402(g) of the Code if
the Participant so chooses. Such Participant may elect any whole percentage of
his Compensation between 0% and 50%.

 

3.05 Participant’s Account

 

The Employer shall create and maintain adequate records to reflect the
interest of each Participant in the Plan. Such records shall be in the form of
individual Accounts. When appropriate, a Participant’s Account shall consist of
separate calendar class year subaccounts with respect to each Plan Year for
which a Deferred Incentive Award Amount or

 

7

 

Deferred Compensation Amount is credited under the Plan. Such Accounts
shall be kept for recordkeeping purposes only and shall reflect amounts
allocated under Section 3.07, distributions under Article IV, and divestments
under Section 6.07. Any Accounts maintained in trust by the Employer shall not
be construed as providing for assets to be held in trust or escrow or any other
form of asset segregation for the Participant or Beneficiary to whom benefits
are to be paid pursuant to the terms of the Plan.

 

3.06 Allocation to
Participant Account

 

The Participant’s Deferred Incentive Award Amount and Deferred
Compensation Amount shall be credited to the Participant’s Account as of the
paydate such amount would have been paid to such Participant absent a deferral
under the Plan.

 

The Participant’s Annual Profit Sharing Restoration Amount shall be
credited to the Participant’s Account as of the same date as the Annual Profit
Sharing Contribution is credited under the RASP.

 

The Participant’s Annual Savings Restoration Amount, Annual Matching
Restoration Amount and Annual Profit Sharing Restoration Amount previously
credited under the BRP shall be credited to the Participant’s Account as of the
Effective Date.

 

Each Participant may advise the Committee, in accordance with
procedures established by the Committee, on how he wishes his Account to be
allocated among the investment options authorized by the Committee and such
Participant’s Account shall be credited with earnings and losses at such time
and in such manner as determined in the sole discretion of the Committee and
shall reflect the allocation of investments made there under. The Participant
may change his investment allocation in accordance with procedures established
by the Committee. Notwithstanding the foregoing, the Committee reserves the
right to determine the Plan’s investment options and the specific process for
making investments without regard to the advice received from Participants.

 

3.07 Vested Percentage

 

Notwithstanding anything herein to the contrary, a Participant shall be
100% vested at all times in his Deferred Incentive Award Amount, his Deferred
Compensation Amount, Annual Savings Restoration Amount, and his Annual Matching
Restoration Amount.

 

A Participant shall be vested in his Annual Profit Sharing Restoration
Amount in accordance with Section 8.01(A) of the RASP; provided, however, that
forfeited amounts shall not be reallocated among Plan Participants, or be
restored to the forfeiting Participant upon reemployment.

 

3.08. Benefits Under Prior
Plans

 

In no event shall a Participant be entitled to the same amount under
this Plan and the KEIP, EIOP, KEBP, or BRP.

 

8

 

ARTICLE IV

 

DISTIBUTION OF BENEFITS

 

4.01 Benefit Commencement
Date

 

Except as provided in Section 4.04, Benefits under the Plan may not be
paid prior to the earlier of:

 

(a)                      the Participant’s termination of employment
(as provided in Section 4.02); or

 

(b)                     in the case of a Deferred Incentive Award
Amount or Deferred Compensation Amount, a date pre-selected by the Participant
(as provided in Section 4.03), in accordance with the election made by the
Participant pursuant to Section 2.02.

 

If an election is made to have Benefits commence on a date pre-selected
by the Participant (as provided in Section 4.03), such election subsequently
may be modified to defer payment until the Participant’s termination of
employment (as provided in Section 4.02), provided such election modification
is made by the Participant in writing at least 12 months prior to the
pre-selected date.

 

4.02 Termination of
Employment

 

Except as otherwise provided in Section 4.01 and 4.03 of this Article,
Benefits shall be distributed upon termination of employment for any reason
(including retirement, disability, death, or reduction-in-force). However, in
the case of a termination of employment because of a disposition of
substantially all of the assets of a line of business or a disposition of the
Employer’s interest in a subsidiary, if the Employer and the acquiring company
so agree, a Participant that would continue in a similar position with the acquiring
company will be given the opportunity to elect sufficiently in advance of such
disposition, to have his Benefits transferred to a nonqualified deferred
compensation plan maintained by the acquiring company. If the Participant makes
the election described in the preceding sentence, and the Participant’s
Benefits are so transferred, the Participant’s rights under this Plan shall
cease. If the Participant does not make such an election, the Participant’s
Benefits shall be paid as they otherwise would in the case of a termination of
employment.

 

4.03 Date Pre-Selected by
the Participant

 

A Participant may elect to have payment of a Deferred Compensation
Amount or a Deferred Incentive Award Amount for a particular Plan Year (except
that in the case of a Deferred Incentive Award Amount deferred prior to June 1,
2001, all such amounts must be subject to the same election) commence prior to
termination of employment, provided that the commencement date is at least two
full calendar years after the end of the calendar year in which the Deferred
Incentive Award Amount

 

9

 

or Deferred Compensation Amount otherwise would have been paid to the
Participant absent the deferral under this Plan. For example, payment of a
Deferred Incentive Award Amount or a Deferred Compensation Amount that
otherwise would have been paid to the Participant in 2002 may be deferred to a
date no earlier than January 1, 2005.

 

4.04 Hardship

 

Payment of part or all of the Benefits under this Plan may be
accelerated in the case of severe hardship, which shall mean an emergency or
unexpected situation in the Participant’s financial affairs, including, but not
limited to, illness or accident involving the Participant or any of the
Participant’s dependents (within the meaning of Section 152(a) of the Internal
Revenue Code). All payments in case of hardship must be approved by the
Committee and will be limited to the amount necessary to meet the severe
hardship.

 

4.05 Form of Payment

 

Benefits shall be distributed to a Participant in either a lump sum, or
in annual installment payments of at least two (2) years, but not more than ten
(10) years, in accordance with the election made by the Participant pursuant to
Section 2.02; provided, however, that the Participant’s election under Section
2.02 as to the form of payment of Benefits subsequently may be modified to
provide for another permissible form of payment, so long as such election
modification is made by the Participant in writing at least 90 days prior to
the date the payment of Benefits commences under Section 4.01.

 

Notwithstanding the preceding paragraph, a Participant’s Annual Profit
Sharing Restoration Amount, Annual Savings Restoration Amount, and Annual
Matching Restoration Amount may not be paid in installments unless the
Participant is eligible to retire under Section 9.01 of the RASP.

 

If installment payments are elected, the first installment shall be
made as soon as is administratively feasible after the event giving rise to the
distribution and all subsequent installments shall be paid at the beginning of
each subsequent calendar year as soon as is administratively feasible. Annual
installment payments shall be equal to the then remaining Account balance,
divided by the number of years remaining in the installment period. To the
extent Benefits are not paid in installments, the Account balance will be paid
in a lump sum in the month following the event giving rise to the distribution,
or as soon as is administratively feasible. Notwithstanding the foregoing, the
Committee, in its sole discretion, may accelerate any installment payment
election upon the Participant’s termination of employment.

 

4.06 Beneficiary Entitlement

 

In the event a Participant entitled to installment payments dies before
receiving all Benefits under the Plan, the unpaid balance will be paid in a
lump sum to such Participant’s Beneficiary as soon as is administratively
feasible following the Participant’s death.

 

10

 

ARTICLE V

 

ADMINISTRATION; AMENDMENTS AND TERMINATION; RIGHTS AGAINST THE COMPANY

 

5.01 Administration

 

The Committee shall administer this Plan. With respect to the Plan, the
Committee shall have, and shall exercise and perform, all the powers, rights,
authorities and duties set forth in the RASP with the same effect as if set
forth in full herein with respect to this Plan. Except as expressly set forth
herein, any determination or decision by the Committee shall be conclusive and
binding on all persons who at any time have or claim to have any interest
whatsoever under this Plan.

 

5.02 Amendment and
Termination Prior to a Change in Control

 

The Employer, solely, and without the approval of the Committee or any
Participant or Beneficiary, shall have the right to amend this Plan at any time
and from time-to-time. Any such amendment shall become effective upon the date
stated therein. Notwithstanding the foregoing, no amendment shall adversely
affect the rights of any Participant or Beneficiary who was previously
receiving Benefits under this Plan to continue to receive such Benefits or of
all other Participants and Beneficiaries to receive the Benefits promised under
the Plan immediately prior to the later of the effective date or the date of
adoption of the amendment.

 

The Employer has established this Plan with the bona fide intention and
expectation that from year-to-year it will deem it advisable to continue it in
effect. However, circumstances not now foreseen or circumstances beyond the
Employer’s control may make it impossible or inadvisable to continue the Plan.
Therefore, the Employer, in its sole discretion, reserves the right to
terminate the Plan in its entirety at any time; provided, however, that in such
event any Participant or Beneficiary who was receiving benefits under this Plan
as of the termination date, shall continue to receive such Benefits, and all
other Participants and Beneficiaries shall remain entitled to receive the
Benefits promised under the Plan immediately prior to the termination of the
Plan.

 

5.03 Rights Against the
Employer

 

The establishment of this Plan shall not be construed as giving to any
Participant, Beneficiary, Employee or any person whomsoever, any legal,
equitable or other rights against the Employer, or its officers, directors,
agents or shareholders, except as specifically provided for herein, or its
giving to any Participant any equity or other interest in the assets, business
or shares of the Employer or giving any Employee the right to be retained in
the employment of the Employer. All terms relating to Incentive Awards that do
not involve the deferral of receipt of such awards shall be governed by the
KEIP or EOIP, as the case may be. All Employees and Participants shall be

 

11

 

subject to discharge to the same extent that they would have been if
this Plan had never been adopted. Subject to the rights of the Employer to
terminate this Plan or any benefit hereunder, the rights of a Participant
hereunder shall be solely those of an unsecured creditor of the Employer.

 

ARTICLE VI

 

GENERAL AND MISCELLANEOUS

 

6.01 Spendthrift Clause

 

No right, title or interest of any kind in the Plan shall be
transferable or assignable by any Participant or Beneficiary or any other
person or be subject to alienation, anticipation, encumbrance, garnishment,
attachment, execution or levy of any kind, whether voluntary or involuntary.
Any attempt to alienate, sell, transfer, assign, pledge, garnish, attach or
otherwise encumber or dispose of any interest in the Plan shall be void.

 

6.02 Severability

 

In the event that any provision of this Plan shall be declared illegal
or invalid for any reason, said illegality or invalidity shall not affect the
remaining provisions of this Plan but shall be fully severable, and this Plan
shall be construed and enforced as if said illegal or invalid provision had
never been inserted herein.

 

6.03 Construction of Plan

 

The article and section headings and numbers are included only for
convenience of reference and are not to be taken as limiting or extending the
meaning of any of the terms and provisions of this Plan. Whenever appropriate,
words used in the singular shall include the plural or the plural may be read
as the singular.

 

6.04 Gender

 

The personal pronoun of the masculine gender shall be understood to
apply to women as well as men except where specific reference is made to one or
the other.

 

6.05 Governing Law

 

THE VALIDITY AND EFFECT OF THIS PLAN AND THE RIGHTS AND OBLIGATIONS OF
ALL PERSONS AFFECTED HEREBY SHALL BE CONSTRUED AND DETERMINED IN ACCORDANCE
WITH THE LAWS OF THE UNITED STATES AND THE LAWS OF THE STATE OF CALIFORNIA,
WITHOUT REGARD TO ITS OTHERWISE APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS.

 

6.06 Unfunded Top Hat Plan

 

It is the Employer’s intention that this Plan be a Top Hat Plan,
defined as an unfunded plan maintained primarily for the purpose of providing
deferred compensation for a select group of management or

 

12

 

highly compensated employees, as provided in Sections 201(2),
301(a)(3), and 401(a)(1) of the Employee Retirement Income Security Act of
1974, as amended from time-to-time. The Employer may establish and fund one or
more trusts for the purpose of paying some or all of the benefits promised to
Participants and Beneficiaries under the Plan; provided, however, that (i) any
such trust(s) shall at all times be subject to the claims of the Employer’s
general creditors in the event of the insolvency or bankruptcy of the Employer,
and (ii) notwithstanding the creation or funding of any such trust(s), the
Employer shall remain primarily liable for any obligation hereunder.
Notwithstanding the establishment of any such trust(s), the Participants and
Beneficiaries shall have no preferred claim on, or any beneficial ownership
interest in, any assets of any such trust or of the Employer.

 

6.07 Divestment for Cause

 

Notwithstanding any other provisions of this Plan to the contrary, the
right of any Participant, former Participant, or Beneficiary of either, to
receive any Benefits, or to have paid to any other person any Benefits, or the
right of any such other person to receive any Benefits under this Plan, shall
be forfeited, if such Participant’s employment with the Employer is terminated
because of, or the Participant is discovered to have engaged in, fraud,
embezzlement, dishonesty against the Employer, obtaining funds or property
under false pretenses, assisting a competitor without permission, or
interfering with the relationship of the Employer or any subsidiary or
affiliate thereof with a customer. A Participant’s or Beneficiary’s Benefits
shall be forfeited for any of the above reasons regardless of whether such act
is discovered prior to or subsequent to the Participant’s termination from the
Employer or the payment of Benefits under the Plan. If payment has been made,
such payment shall be restored to the Employer by the Participant or
Beneficiary.

 

ERISA RIGHTS

 

This Plan is intended to provide benefits for
a select group of highly compensation employees within the meaning of the
Employee Retirement Income Security Act of 1974 (ERISA). However, it is not
subject to most of the requirements or protection of ERISA nor is the Plan
eligible for insurance under Title IV of ERISA. Furthermore, the Plan is
considered to be an unfunded, non-qualified plan for purposes of complying with
the Internal Revenue Code.

 

13

 

PLAN NAME:

NATIONAL SEMICONDUCTOR CORPORATION DEFERRED COMPENSATION PLAN

 

	
  PLAN SPONSOR:

  	
  EMPLOYER I.D. NUMBER (EIN):

  

 

	
  National Semiconductor Corporation

  	
  EIN: 95-2095071

  

2900 Semiconductor Drive

P.O.Box 58090
Santa Clara, CA 95052-8090
(408) 721-6431

 

PLAN NUMBER: 006

 

PLAN YEAR:

The Plan Year is the fiscal year. Plan records are maintained on the
basis of this Plan Year.

 

PLAN ADMINISTRATOR:

Retirement and Savings Program Administrative Committee

C/o Corporate Benefits National Semiconductor Corporation
2900 Semiconductor Drive
P. O. Box 58090, M/S C1-195
Santa Clara, CA 95052-8090
(408) 721-6431

 

TYPE OF PLAN:

The Plan is a non-qualified deferred compensation plan for selected key
employees of National Semiconductor Corporation.

 

Agent for Service of Legal Process:

 

Legal process should be served on the Employer’s Corporate Secretary or
the Plan Administrator in care of the Retirement Plans Administration Office at
the Employer’s address.

 

FUNDING MEDIUM:

The Plan is unfunded and Benefits are paid
from the Plan sponsor’s general assets.

 

14Exhibit 10.1

 

Execution
Copy

 

REGISTRATION RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”)  is made and entered into as of October 7,
2004, by and among Cellegy Pharmaceuticals, Inc., a Delaware corporation (“Cellegy”  or the “Company”),  and the Shareholders and Option Holders of
Biosyn, Inc., a Pennsylvania corporation (“Biosyn”)  that execute the signature page to this
Agreement (“Securityholders”).

 

BACKGROUND

 

A.            Cellegy and Biosyn have entered into an
Agreement and Plan of Share Exchange dated as of October 7, 2004 (the “Exchange
Agreement”),  pursuant to which (i) all of the outstanding shares of capital stock of
Biosyn will be exchanged for shares of Cellegy Common Stock and (ii) all the
outstanding options and warrants of Biosyn will be assumed by Cellegy, as set
forth in the Exchange Agreement (the “Transaction”). The capitalized terms used in this Agreement
and not otherwise defined herein will have the meanings given them in the
Exchange Agreement.

 

B.            The Exchange Agreement provides that Cellegy
will grant the Securityholders certain registration rights with respect to the
shares of Cellegy Common Stock that are issued, or that are issuable upon
exercise of certain of the Options or Warrants, in the Transaction, on the terms,
and subject to the conditions and limitations, set forth in this Agreement.

 

C.            The terms of this Agreement shall become
effective (the “Agreement Date”) only upon the completion of the “Closing” and the “Effective Time,” as
those terms are defined in the Exchange Agreement. If the Closing of the
transactions contemplated by the Exchange Agreement does not occur, then this
Agreement shall have no force or effect and shall terminate in its entirety.

 

AGREEMENT

 

NOW, THEREFORE,  in consideration of the foregoing recitals
and the mutual promises hereinafter set forth, the parties hereto agree as
follows:

 

1.             REGISTRATION RIGHTS.

 

1.1.          Definitions. For purposes of this Agreement, the following terms shall have the
following meanings:

 

“1933 Act”  means the Securities Act of 1933, as amended.

 

“Holder”  means the Securityholders and any Person to
whom Registrable Shares and registration rights hereunder are transferred
pursuant to Section 2 of this Agreement.

 

 

The
terms “register” “registration”  and “registered”  refer to a registration effected by preparing
and filing a Registration Statement in compliance with the 1933 Act, and the
declaration or ordering of effectiveness of such Registration Statement.

 

“Option
Holders”  means
those holders of options (“Options”)  or Warrants (“Warrants”)  to purchase common stock of Biosyn whose
Options or Warrants are to be assumed by Cellegy pursuant to the terms of the
Exchange Agreement, other than Options or Warrants where the underlying shares
are registered by Cellegy on a Form S-8 registration statement filed with the
SEC as contemplated by the Exchange Agreement (and any such options or warrants
shall not be deemed to be “Options” or “Warrants” for purposes of this
Agreement).

 

“Registrable
Shares” means (a) the
shares of Cellegy Common Stock that are issued pursuant to the Exchange
Agreement, (b) the shares of Cellegy Common Stock that will become issuable
upon exercise of the Options and Warrants pursuant to the Exchange Agreement
and (c) any shares of Cellegy Common Stock issued as a dividend or other
distribution with respect to or in exchange for or in replacement of such
shares of Cellegy Common Stock described in clauses (a) or (b) of this
subsection.

 

“Rule 144”  means SEC Rule 144 promulgated pursuant to
the 1933 Act, and any successor rule.

 

“SEC”  or the “Commission”  means the U.S. Securities and Exchange
Commission.

 

“Shareholders”  means the holders of capital stock of Biosyn.

 

1.2.          Registration.

 

(a)           Cellegy shall use is best efforts to prepare
and file a registration statement on Form S-3 (or other available form) with
the SEC within forty-five (45) days after the Closing Date (and any related
qualification under blue sky laws), covering the resale by the Holders of the
Registrable Shares (the “Registration Statement”),  and to cause the Registration Statement to be
declared effective as soon as reasonably practicable thereafter. The
Registration Statement may include securities other than those held by Holders,
provided that any cutback of securities under such registration shall be first
to the securities not held by Holders.

 

(b)           Notwithstanding the foregoing, Cellegy shall
have no obligation to keep the Registration Statement effective with respect to
any Holder who can sell all of such Holder’s Registrable Shares without any
volume limitation in a 90 day period pursuant to Rule 144 (by complying with
the requirements of Rule 144).

 

1.3.          Expenses. Cellegy will pay all expenses of any registration effected under this
Section 1, other than the fees and expenses of counsel to the Holders and any
brokers’ or similar fees of Holders in connection with sales of Registrable
Shares.

 

1.4.          Termination of Registration. Cellegy shall use all commercially reasonable
efforts to maintain the effectiveness of the Registration Statement until the
first to

 

2

 

occur of (a) such time as
all of the Registrable Shares covered by the Registration Statement have been
sold, or (b) as to any particular Holder, at such time as the Holder may sell
all of the Registrable Shares held by that Holder commencing one year after the
Closing Date in a 90 day period pursuant to Rule 144 (by complying with the
requirements of Rule 144).

 

1.5.          Agreement Not to Sell. Except for sales made in compliance with Rule
144, until the Registration Statement has been filed and declared effective,
Holder will not sell any Registrable Shares publicly on the Nasdaq Stock Market
or any other stock exchange or market system on which securities of the same
class as the Registrable Shares are traded.

 

1.6.          Permitted Window. The provisions of this Section 1.6 shall
apply only to Holders other than Preferred Holders (as defined below).

 

(a)           Notice of Resale. The Holders agree that they will only sell
Registrable Shares pursuant to the provisions of this Agreement. If a Holder
has a bona fide intention to sell the Registrable Shares pursuant to such
registration, they will first deliver a written notice (the “Sale
Notice”) to Cellegy
(such Sale Notice to be delivered via hand delivery, fax, email, mail or
overnight courier pursuant to Section 4.1 of this Agreement). If the Holder
does not receive a communication from Cellegy (also pursuant to Section 4.1 of
this Agreement) within 2 business days of Holder’s Sale Notice, then Holder may
sell the shares included in the Sale Notice at any time over the next 30 days
(such 30-day period, the “Permitted Window”). The Holder may extend the Permitted Window by
10 days by providing Cellegy with an additional Sale Notice. However, if
Cellegy delivers a written notice to the Holder in response to a Sale Notice,
or at any time during a Permitted Window or an extended Permitted Window, that
in the good faith judgment of Cellegy, following consultation with legal
counsel, it would be detrimental to Cellegy or its stockholders for sale of
Registrable Shares to be made pursuant to the Registration Statement due to (i)
the existence of a material development or potential material development
involving Cellegy that Cellegy would be obligated to disclose in the
Registration Statement, which disclosure would be premature or otherwise
inadvisable at such time or could reasonably be expected to have a material
adverse effect on Cellegy or its stockholders, or (ii) a filing of a
Cellegy-initiated registration of any class of its equity securities, which, in
the good faith judgment of Cellegy (as evidenced by a certificate signed by the
President, Chief Executive Officer or Chief Financial Officer of Cellegy and
furnished to the Holders), would adversely affect or require premature
disclosure of the filing of such Cellegy-initiated registration (the receipt of
such certificate and notice thereof, a “Cellegy Notice”),  then Cellegy shall have the right to suspend
use of such Registration Statement, and terminate or suspend the Permitted
Window, for a period of not more than forty five (45) days; provided, however,
that Cellegy will exercise all good faith efforts to minimize the period of
such suspension, consistent with Cellegy’s good faith business judgment, including
without limitation concerning premature public disclosure of confidential or
sensitive information (any such deferral or suspension period, a “Closed
Window Period”). The
Permitted Window shall resume upon the Holder’s receipt of copies of a supplemented
or amended Prospectus, or at such time as the Holder is advised in writing by
Cellegy that the Prospectus may be used, and at such time as the Holder has
received copies of any additional or supplemental filings that are incorporated
or deemed incorporated by reference in such Prospectus and which are required
to be delivered as part of the Prospectus. In any event, the Permitted Window
shall resume no later than 45 days after it has been terminated pursuant to
this Section 1.6. Cellegy may not utilize any of its rights

 

3

 

under
this Section 1.6 to suspend or terminate a Permitted Window(s) more than an
aggregate one hundred twenty (120) days in any twelve (12) month period.

 

1.7.         Blackout Period for Holders of Biosyn
Preferred Stock. The
provisions of this Section 1.7 shall apply only to Holders who held shares of
Biosyn Preferred Stock immediately prior to the Transaction (“Preferred
Stockholders”) and to
Holders to whom registration rights hereunder are transferred from Preferred
Stockholders pursuant to Section 2 of this Agreement (“Preferred
Transferees”, and
together with Preferred Stockholders, “Preferred Holders”)

 

(a)           If in the good faith judgment of Cellegy,
following consultation with legal counsel, it would be detrimental to Cellegy
or its stockholders for resale of Registrable Shares to be made pursuant to the
Registration Statement due to (i) the existence of a material development or
potential material development involving Cellegy that Cellegy would be obligated
to disclose in the Registration Statement, which disclosure would be premature
or otherwise inadvisable at such time or could reasonably be expected to have a
material adverse effect on Cellegy or its stockholders, or (ii) a filing of a
Cellegy-initiated registration of any class of its equity securities, which, in
the good faith judgment of Cellegy (as evidenced by a certificate signed by the
President, Chief Executive Officer or Chief Financial Officer of Cellegy and
furnished to the Holders), would adversely affect or require premature
disclosure of the filing of such Cellegy-initiated registration (the receipt of
such certificate and notice thereof, a “Blackout Notice”), Cellegy shall have the right to suspend use
of such Registration Statement for a period of not more than forty five (45)
days; provided, however, that the Company will exercise all good faith efforts
to minimize the period of such suspension, consistent with the Company’s good
faith business judgment, including without limitation concerning premature public
disclosure of confidential or sensitive information (any such deferral or
suspension period, a “Blackout Period”). The Holder acknowledges that it would be
seriously detrimental to Cellegy and its stockholders for the continued use of
such Registration Statement during a Blackout Period and therefore essential to
suspend the use thereof during such Blackout Period and agrees to cease any
disposition of the Registrable Shares during such Blackout Period. Cellegy may not
utilize any of its rights under this Section 1.7(a) to suspend the use of the Registration
Statement more than one hundred twenty (120) days in any twelve (12) month period.

 

(b)           In connection with any Cellegy-initiated
registration described in Section 1.7(a) which causes Cellegy to initiate a
Blackout Period and which relates to an underwritten offering, the Holders
shall be given the opportunity to participate in the first two such offerings that
may occur after the Agreement Date by including all or any of their Registrable
Shares for sale in any such offering by notifying such Holders in writing,
provided that the right to include any Registrable Shares in any such offering
shall be subject to (i) the rights of other shareholders of Cellegy who also
have rights to include shares in such offering, (ii) the ability of the underwriter
for such offering to exclude some or all of the shares requested to be
registered on the basis of a good faith determination that inclusion of such
securities might adversely affect the success of the offering or otherwise
adversely affect Cellegy (with any such exclusion to be pro rata among all
Holders who are requested to sell Registrable Shares in such registration), and
(iii) the execution by the Holders of the underwriting agreement and other
customary documents

 

4

 

requested
by the managing underwriter that are executed by other holders selling
securities in such offering, and the furnishing of such information and documents
as Cellegy or the managing underwriter may reasonably request in connection
with such offering. The Holders shall be responsible for their pro rata share
of registration fees and underwriters’ and brokers’ discounts and commissions
relating to any Registrable Shares included in such registration.

 

1.8.          Cooperation by Holder. It will be a condition precedent to the
obligations of Cellegy to register any Registrable Shares pursuant to this
Agreement that Holder furnish to Cellegy for inclusion in the Registration
Statement such information regarding Holder and the Registrable Shares and the
intended method of disposition of such securities as shall be required to
timely effect the registration of the Registrable Shares.

 

1.9.          Manner of Sales. Holder will sell the Registrable Shares
pursuant to the Registration Statement only in a manner described in the plan
of distribution contained in the Registration Statement, which plan of
distribution shall describe customary manners of sale.

 

1.10.        Obligations of Cellegy. In connection with any registration
effected pursuant to this Agreement, Cellegy shall, as expeditiously as
reasonably possible, take the following actions:

 

(a)           Amendment, Supplements. Subject to the provisions of Sections 1.6
and 1.7 above, Cellegy will prepare and file with the SEC such amendments and
supplements to such Registration Statement and the prospectus used in
connection with the Registration Statement as Cellegy reasonably determines may
be necessary or appropriate, and use all commercially reasonable efforts to
have such post-effective amendments declared effective as promptly as
practicable. Cellegy will notify Holder promptly in writing when a prospectus,
any prospectus supplement or post-effective amendment has been filed and, with
respect to any post-effective amendment, when the same has become effective.

 

(b)           Copies of Prospectus. Cellegy will furnish to Holder such number of
copies of a prospectus, including a preliminary prospectus, in conformity with
the requirements of the 1933 Act, and such other documents as Holder may
reasonably request in order to facilitate the disposition of the Registrable
Shares owned by it that are included in such registration.

 

(c)           Commission Requests. Cellegy shall notify the Holder promptly (and
in any event within one business day, by email, fax or other type of
communication) (i) of any request by the Commission or any other federal or
state governmental authority during the period of effectiveness of a
registration statement for amendments or supplements to such registration
statement or related prospectus or for additional information, (ii) of the
issuance by the Commission or any other federal or state governmental authority
of any stop order or similar action suspending the effectiveness of a registration
statement or the initiation of any proceedings for that purpose and (iii) of
the receipt by the Company from the Commission or any other federal or state
governmental authority of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable Shares
for sale in any jurisdiction or the initiation or threatening of any proceeding
for such purpose.

 

5

 

(d)           Withdrawal of Orders. Use its best efforts to obtain the
withdrawal of any order suspending the effectiveness of the Registration
Statement at the earliest possible time.

 

(e)           Listing. Use all commercially reasonable efforts to cause all Registrable
Shares to be listed continuously throughout the Registration Period on the
Nasdaq National Market.

 

(f)            Cooperation. In the event of an underwritten
offering for which the Holders have the right to participate pursuant to this
Agreement, Cellegy shall enter into customary agreements and take such other
actions as are reasonably required in order to expedite the disposition of the
Registrable Shares.

 

1.11.        Rule 144 Information. With a view to making available the
benefits of Rule 144, Cellegy shall use all commercially reasonable efforts to
(a) make “available” “adequate current public information” regarding Cellegy
(as those terms are understood and defined in Rule 144) at all times from and
after the Closing Date, and (b) cause its general counsel or other securities
counsel to Cellegy, at Cellegy’s cost, to issue a customary opinion regarding
the availability of Rule 144 with respect to a Holder’s proposed sale of
Registrable Shares pursuant to Rule 144; provided that Cellegy shall not be
required to bear the cost of more than one opinion for any single Holder.

 

2.             ASSIGNMENT AND AMENDMENT.

 

2.1.          Assignment; Transfer of Registrable Shares
and Registration Rights. The
registration rights under this Agreement may be assigned by a Holder to a
transferee or assignee of such Registrable Shares with respect to the
Registrable Shares being assigned or transferred, provided that (a) such
transfer may otherwise be effected in accordance with applicable federal and
state securities laws and any applicable contractual obligations between the
Holder and Cellegy, (b) notice of such assignment is given to Cellegy before or
contemporaneously with such assignment with the name and address of such
assignees and the securities with respect to which such registration rights are
being assigned, (c) such transferee or assignee (i) is a wholly owned
subsidiary or constituent limited partner, general partner, retired partner,
member, retired member or shareholder of such Holder, or (ii) is an “affiliate”
(as that term is defined in Rule 405 promulgated by the Commission under the
Securities Act) of the Holder, including, without limitation, where a Holder is
a limited partnership, an affiliated limited partnership managed by the same
management company or managing general partner of such Holder or an entity
which controls, is controlled by, or is under common control with, such
management company or managing general partner, or (iii) is a beneficiary of
the Holder, where such Holder is a trust or (iv) acquires from such Holder or
Holders at least 100,000 Registrable Shares (as appropriately adjusted for
stock splits and the like) in a simultaneous transaction or transactions, or
(v) is approved in advance by Cellegy and (d) such transferee or assignee
agrees to be bound by all provisions of this Agreement by executing a counterpart
signature page hereto (which shall not be deemed an amendment hereto).

 

2.2.          Amendment of Rights. Any provision of this Agreement may be
amended and the observance thereof may be waived (either generally or in a
particular instance and either

 

6

 

retroactively
or prospectively), only with the written consent of Cellegy and Holders holding
a majority of the aggregate number of outstanding Registrable Shares held by
all Holders at the time of such amendment or waiver. Any amendment or waiver
effected in accordance with this Section 2.2 shall be binding upon each Holder,
each permitted successor or assignee of such Holder and Cellegy; provided,
however, that any such amendment or waiver shall not increase the obligation of
any Holder without the specific written consent of such Holder.

 

3.             MARKET STANDOFF.

 

3.1           Holder agrees that it shall not, directly or
indirectly, make any offering, sale, assignment, transfer, pledge, encumbrance,
contract to sell, grant an option to purchase or make any other disposition of
any Common Stock of Cellegy beneficially owned by Holder (other than to donees
or partners of Holder who agree to be similarly bound) or enter into any swap
or other derivative transaction that transfer to another, in whole or in part,
any of the economic benefit or risk of ownership of such shares of Cellegy
Common Stock, whether any such transaction described above is to be settled by
delivery of Cellegy Common Stock or other securities, in cash or otherwise for
the period of ninety (90) days after the Closing Date. Cellegy may place
restrictive legends on the certificates representing the Registrable Shares and
impose stop transfer instructions with respect to the Cellegy Common Stock
beneficially held by each Holder until the end of such period.

 

4.             GENERAL PROVISIONS.

 

4.1           Notices. All notices and other communications required or permitted under this
Agreement will be in writing and will be either hand delivered in person, sent
by telecopier (fax), sent by electronic mail, sent by certified or registered
first class mail, postage pre-paid, or sent by nationally recognized express
courier service. Such notices and other communications will be effective upon
receipt if hand delivered or sent by telecopier (fax), or electronic mail, with
confirmation of receipt, three (3) days after mailing if sent by mail, and one
(1) business day after dispatch if sent by express courier for overnight
delivery, to the following addresses, or such other addresses as any party may
notify the other parties in accordance with this Section.

 

	
  If to Cellegy:

  	
  Cellegy Pharmaceuticals,
  Inc.

  
	
   

  	
  349 Oyster Point
  Boulevard, Suite 200

  
	
   

  	
  South San Francisco,
  California 94080

  
	
   

  	
  Attention: Chief Financial
  Officer

  
	
   

  	
  Telephone: (650) 616-2200

  
	
   

  	
  Fax: (650) 616-2222

  
	
   

  	
   

  
	
  With a copy to:

  	
  C. Kevin Kelso (which copy
  does not constitute notice)

  
	
   

  	
  Weintraub Genshlea Chediak
  Sproul

  
	
   

  	
  400 Capitol Mall, 11th
  Floor

  
	
   

  	
  Sacramento, California
  95814

  
	
   

  	
  Telephone: (916) 558-6000

  
	
   

  	
  Fax: (916) 446-1611

  
	
   

  	
  Email:
  kkelso@weintraub.com

  
	
   

  	
   

  
	
  If to Securityholders:

  	
  To the addresses set forth
  on the Company’s stock records.

  

 

7

 

4.2           Entire Agreement. This Agreement, together with all the
Exhibits hereto, constitutes and contains the entire agreement and
understanding of the parties with respect to the subject matter hereof and
supersedes any and all prior negotiations, correspondence, agreements, understandings,
duties or obligations between the parties respecting the subject matter hereof.

 

4.3           Governing Law; Consent to Jurisdiction. This Agreement shall be governed by the
laws of the State of Delaware except for those provisions governing conflict of
laws, notwithstanding that one or more of the parties to this Agreement is now,
or may hereafter become, a resident or citizen of a different State.

 

4.4           Severability. If one or more provisions of this Agreement
are held to be unenforceable under applicable law, then such provision(s) shall
be excluded from this Agreement and the balance of this Agreement shall be
interpreted as if such provision(s) were so excluded and shall be enforceable
in accordance with its terms.

 

4.5           Third Parties. Nothing in this Agreement, express or
implied, is intended to confer upon any person, other than the parties hereto
and their successors and assigns, any rights or remedies under or by reason of
this Agreement.

 

4.6           Successors And Assigns. Subject to the provisions of Section 2.1,
the provisions of this Agreement shall inure to the benefit of, and shall be
binding upon, the successors and permitted assigns of the parties hereto.

 

4.7           Captions. The captions to sections of this Agreement have been inserted for
identification and reference purposes only and shall not be used to construe or
interpret this Agreement.

 

4.8           Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

4.9           Costs and Attorneys’ Fees. In the event that any action, suit or other
proceeding is instituted concerning or arising out of this Agreement or any
transaction contemplated hereunder, the prevailing party shall recover all of
such party’s costs and attorneys’ fees incurred in each such action, suit or
other proceeding, including any and all appeals or petitions therefrom.

 

4.10         Absence of Third-Party Beneficiary Rights. No provisions of this Agreement are
intended, nor will be interpreted, to provide or create any third party
beneficiary rights or any other rights of any kind in any client, customer,
affiliate, partner or employee of any party hereto or any other person or
entity, unless specifically provided otherwise herein, and, except as so
provided, all provisions hereof will be personal solely between the parties to
this Agreement.

 

4.11         Effectiveness of Agreement. Regardless of when signed, this Agreement
will not become effective or binding unless and until the Agreement Date. If
the Agreement

 

8

 

Date does not occur, then
this Agreement shall have no force or effect and shall terminate in its
entirety.

 

4.12.        Indemnification. In the event any Registrable Shares are
included in a registration statement under this Agreement:

 

(a)           By Cellegy. To the extent permitted by law, Cellegy will indemnify and hold
harmless each Holder, the officers and directors, trustees, and each person, if
any, who controls such Holder (such persons and entities collectively referred
to as “Holder Indemnified Parties”),
against any losses, expenses, damages or liabilities to which they may become
subject under the 1933 Act, the 1934 Act or other federal or state law (a “Loss”),  insofar as such Losses (or actions in respect
thereof) arise out of any claim, action or proceeding brought by a third party
arising out of or based upon any of the following statements, omissions or violations
(collectively, a “Violation”):

 

(i)            any untrue statement of a material fact
contained in the Registration Statement; or

 

(ii)           the omission to state in the Registration Statement a material fact
required to be stated therein, or necessary to make the statements therein not
misleading;

 

and Cellegy will reimburse
each Holder Indemnified Party for any legal or other expenses reasonably
incurred by them, as incurred, in connection with investigating or defending
any such Violation; provided, however, that
the indemnity agreement contained in this subsection shall not apply to amounts
paid in settlement of any such Loss, if such settlement is effected without the
consent of Cellegy, nor shall Cellegy be liable in any such case for any such
Loss to the extent that it arises out of or is based upon a Violation which
occurs in reliance upon and in conformity with written information furnished
expressly for use in connection with such registration statement by the Holder
Indemnified Party; provided further, that Cellegy will not be liable for the
reasonable legal fees and expenses of more than one counsel to the Holder
Indemnified Parties.

 

(b)           By the Holder. To the extent permitted by law, each Holder
will indemnify and hold harmless Cellegy, each of its directors, each of its
officers who have signed the Registration Statement, and each person, if any,
who controls Cellegy within the meaning of the 1933 Act (such persons and
entities collectively referred to as “Company Indemnified Parties”) against any Losses
to which such Company Indemnified Parties may become subject under the 1933
Act, the 1934 Act or other federal or state law, insofar as such Losses (or
actions in respect thereto) arise out of or are based upon any Violation, in
each case to the extent (and only to the extent) that such Violation is caused
by reliance upon and in conformity with written information furnished by the
Holder expressly for use in connection with such registration statement; and
the Holder will reimburse any legal or other expenses reasonably incurred by
such Company Indemnified Parties in connection with investigating or defending
any such Violation; provided, however, that
the indemnity agreement contained in this subsection shall not apply to amounts
paid in settlement of any such Loss if such settlement is effected without the
consent of the Holder; provided further, that
the Holder shall not be liable for the reasonable legal fees and

 

9

 

expenses
of more than one counsel to Cellegy Indemnified Parties; and provided further, that in no event shall
the total amounts payable in indemnity by the Holder under this subsection in
respect of any Violation exceed the net proceeds received by the Holder in the
registered offering out of which such Violation arises.

 

(c)           Notice. Promptly after receipt by an indemnified party under this Section of
notice of the commencement of any action (including any governmental action),
such indemnified party will, if a claim for indemnification in respect thereof
is to be made against any indemnifying party under this Section, deliver to the
indemnifying party a written notice of the commencement of such an action and
the indemnifying party shall have the right to participate in, and, to the
extent the indemnifying party so desires, jointly with any other indemnifying
party similarly noticed, to assume the defense thereof with counsel selected by
the indemnifying party and reasonably acceptable to a majority in interest of
the indemnified parties; provided, however, that
an indemnified party shall have the right to retain its own counsel, with the
reasonable fees and expenses to be paid by the indemnifying party, if the
indemnified party has been advised in writing by counsel that representation of
such indemnified party by the counsel retained by the indemnifying party would
be inappropriate due to actual conflict of interests between such indemnified
party and any other party represented by such counsel in such proceeding. The failure
to deliver written notice to the indemnifying party within a reasonable time of
the commencement of any such action shall relieve such indemnifying party of
liability to the indemnified party under this Section to the extent such delay
caused material prejudice to the indemnified party, but the omission so to
deliver written notice to the indemnifying party will not relieve it of any
liability that it may have to any indemnified party otherwise than under this Section.

 

(d)           Defect Eliminated in Final Prospectus. The foregoing indemnity agreements of
Cellegy and the Holders are subject to the condition that, insofar as they
relate to any Violation made in a preliminary prospectus but eliminated or
remedied in the amended prospectus on file with the Commission at the time the
registration statement in question becomes effective or in the amended
prospectus filed with the Commission pursuant to Rule 424(b) of the Commission
(the “Final Prospectus”),  such
indemnity agreements shall not inure to the benefit of any person if a copy of
the Final Prospectus was furnished in a timely manner to the indemnified party
and was not furnished to the person asserting the loss, liability, claim or damage
at or prior to the time such action is required by the 1933 Act.

 

[Remainder of this page intentionally left blank]

 

10

 

IN WITNESS WHEREOF, the parties hereto have executed this
Registration Rights Agreement as of the date and year first written above.

 

	
  CELLEGY
  PHARMACEUTICALS, INC.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

SECURITYHOLDER

 

	
  [ENTITY SECURITYHOLDERS USE

  THIS SIGNATURE BLOCK:]

  	
  [INDIVIDUAL SECURITYHOLDERS USE

  THIS SIGNATURE BLOCK:]

  
	
   

  	
   

  
	
  Entity Name:

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  (Type or print name on
  line)

  	
   

  	
  (Type or print name on
  line)

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  (Sign here)

  	
   

  	
  (Sign here)

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Fax:

  	
   

  	
   

  	
  Fax:

  	
   

  	
   

  
	
   

  	
   

  
	
  Email:

  	
   

  	
   

  	
  Email:

  	
   

  	
   

  
																		

 

[Signature Page To Registration Rights Agreement]

 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}]]