Document:

Exhibit 10.1
                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED  EMPLOYMENT  AGREEMENT  (this  "Agreement") is entered
into  as of the 7th day of  August  2006 by and  between Atrion  Corporation,  a
Delaware corporation (the "Company"), and Emile A. Battat (the "Executive").

                              W I T N E S S E T H:

WHEREAS,  the Executive  and the Company are currently  parties to an employment
agreement dated as of the 1st day of January, 2002 and amended as of the 3rd day
of December,  2002 (the "Current Employment  Agreement"),  pursuant to which the
Executive  is employed by the Company as the  Chairman of the Board of Directors
of the Company (the "Board") and as its President and Chief  Executive  Officer;
and

WHEREAS,  the  Company and the  Executive  desire to  continue  the  Executive's
employment  by the Company  following the  expiration of the Current  Employment
Agreement on December 31, 2006,  upon the terms and conditions set forth in this
Agreement,  which shall be  effective  as of the 1st day of  January,  2007 (the
"Commencement Date").

NOW,  THEREFORE,  in  consideration  of the  foregoing,  the  mutual  provisions
contained  herein,  and for other good and valuable  consideration,  the parties
hereto agree as follows:

1. EMPLOYMENT.

      (a)Continuation  of  Employment.  The Company hereby agrees to continue to
employ the Executive and the Executive  hereby accepts  continued  employment as
the  Company's  Chairman  of the  Board  ("Chairman")  and  President  and Chief
Executive  Officer  on the terms  and  conditions  hereinafter  set  forth.  The
Executive shall perform such duties, and have such powers, authority, functions,
and  responsibilities  (commensurate  with his  position  and title),  as may be
reasonably  assigned to him from time to time by the Board which are not (except
with the Executive's  prior written consent)  inconsistent with and which do not
interfere  with or  detract  from  those  vested  in or being  performed  by the
Executive for the Company.

      (b)Duties.  During the Employment Term (as defined  below),  the Executive
shall  devote  such time and effort as is  reasonably  necessary  to perform his
duties and  responsibilities  as  Chairman  and  President  and Chief  Executive
Officer of the Company;  provided,  however that the Executive shall be allowed,
to the  extent  that  such  activities  do not  materially  interfere  with  the
performance of his duties and responsibilities hereunder, to manage his personal
financial affairs and to serve on corporate, civic,  not-for-profit,  charitable
industry boards and advisory committees.

2. TERM.  The initial term of the  Executive's  employment  under this Agreement
shall be for period of five (5) years from the  Commencement  Date (the "Initial
Term").  The term of the  Executive's  employment  under this Agreement shall be
automatically  renewed for additional one (1) year terms (each referred to as an
"Additional  Term")  at the  end of the  Initial  Term  and at the  end of  each
Additional Term, as the case may be, unless either party delivers written notice
of  termination  to the other at least  thirty (30) days prior to the end of the
Initial Term or  Additional  Term,  as the case may be. The Initial Term and the
Additional Terms shall be referred to herein as the "Employment Term."

<PAGE>

3. COMPENSATION.  The Company shall pay the Executive the following,  subject to
withholding and other applicable employment taxes:

      (a)Base  Salary and Bonuses.  The Company  shall pay the  Executive a base
salary  (the  "Base  Salary")  of  Five  Hundred  Thousand  and  no/100  Dollars
($500,000.00) for each calendar year in the Employment Term.

In addition to the Base Salary, the Company shall pay the Executive a cash bonus
(the "Annual  Bonus") for each  calendar year in the  Employment  Term (with the
first  Annual  Bonus  hereunder  to be paid in 2008 (within the period set forth
below) for the year  2007)  equal to the amount  that is 8% of the  Increase  in
Operating  Income  for such  calendar  year.  For  purposes  of this  Agreement,
"Increase  in  Operating  Income"  shall be equal to the excess,  if any, of the
Company's  operating  income for the  calendar  year of  determination  over the
Company's  operating  income for the previous  calendar year.  The  Compensation
Committee of the Board shall have discretion to adjust the Increase in Operating
Income  calculated  pursuant to the  previous  sentence to  disregard  one-time,
non-recurring   extraordinary   adjustments   and  shall  make  such   equitable
adjustments  as are required to give effect to  acquisitions,  divestitures,  or
similar corporate transactions by or involving the Company.

The Base Salary  shall be payable in  intervals  consistent  with the  Company's
normal payroll  schedules (but in no event less  frequently  than monthly).  The
Base Salary,  as in effect from time to time,  may be increased  but not reduced
without the written consent of the Executive. The Annual Bonus for each calendar
year in the Employment  Term shall be payable as soon as  practicable  following
the date on which the Annual Bonus can be determined, but in no event later than
March 15 of the year following such calendar year.

In addition to the Base Salary and the Annual  Bonus,  the Company shall pay the
Executive such other incentive compensation as the Company may from time to time
determine.

      (b) Benefits   and  Expenses.  The  Executive  shall  have  the  right  to
participate in the employee benefit plans, equity and incentive plans, insurance
contracts,  policies,  arrangements or agreements  maintained by the Company for
the benefit of its employees and relating to retirement,  health, disability and
other  employee   benefits,   subject  to  the  Executive's   qualification  for
participation  in such benefit plans pursuant to the terms and conditions  under
which  such  benefit  plans  are  offered,  at a  level  commensurate  with  the
Executive's  position.  The Executive's  rights and entitlements with respect to
any such benefits shall be subject to the provisions of the relevant agreements,
contracts,  policies,  arrangements  or plans  providing such benefits.  Nothing
contained  herein  shall be deemed to impose any  obligation  on the  Company to
adopt  or  maintain  any  such  plans,  policies,  arrangements,   contracts  or
agreements.  In accordance with its policies and  procedures,  the Company shall
pay or reimburse the Executive for all reasonable or necessary  travel and other
out-of-pocket  expenses  incurred by the Executive in performing his obligations
under this  Agreement.  The  Executive  shall comply with all such  policies and
procedures  applicable to the Company's senior executive  employees  relating to
the  nature  and  extent of  reimbursable  expenses,  the  manner of  accounting
therefor and the manner or reimbursement of same. The Company shall also furnish
the Executive  with such office and clerical  assistance as shall be suitable to
the character of the Executive's  position with the Company and adequate for the
performance of his duties hereunder.

<PAGE>

      (c) Vacation  and  Holidays.   The  Executive  shall be  entitled  to such
vacation  with pay during each fiscal year of the Company as  determined  by the
Company,  but in no event less than four (4) weeks per year, such vacation to be
taken at such time or times as shall be approved by the Company,  which approval
shall not be unreasonably withheld. In addition, the Executive shall be entitled
to such  holidays  with pay as the Company  makes  available to its other senior
executive employees. Unless otherwise agreed between the parties, unused days of
vacation and unused holidays may not be carried over from one fiscal year of the
Company to another.

4. TERMINATION.

     (a) Termination by the Company. The Company may terminate the employment of
the  Executive  prior to the  expiration  of the  Employment  Term (i) for "just
cause" (as defined  below) by delivering  written  notice of  termination to the
Executive or (ii) without  "just cause" upon thirty (30) days written  notice of
termination to the Executive.

     (b) Termination by Executive.   The Executive may terminate his  employment
under this Agreement  prior to the  expiration of Employment  Term (i) for "good
reason" (as defined below) by giving the Company ninety (90) days written notice
of his intention to terminate  such  employment or (ii) without "good reason" by
giving the Company ninety (90) days written notice of his intention to terminate
such employment.

     (c) Termination  Upon  Death or  Disability.  The   Executive's  employment
shall  terminate  immediately  upon his death.  In the event that the  Executive
becomes subject to a Disability (as defined below),  the Executive's  employment
may be  terminated  upon thirty (30) days written  notice by either party to the
other.

     (d) Definitions.  For purposes of this Agreement, the following terms shall
have the respective meanings indicated below:

                  (i) Just  Cause.  The term  "just  cause"  shall  mean (A) the
Executive's  continuing  willful  failure to  perform  his  material  duties and
obligations  under this  Agreement  (except by reason of his death or incapacity
due to his  Disability)  after  written  notice  thereof  by the  Company to the
Executive,  and the  Executive's  failure or refusal to perform  such duties and
obligations  within  thirty  (30) days after the  receipt of such  notice by the
Executive or (B) the conviction of, or the entering of a plea of nolo contendere
by, the Executive  with respect to a felony (other than as a result of a traffic
violation or as a result of vicarious  liability),  provided  that on or after a
Change in  Control  (as  defined in Exhibit A  hereto),  "just  cause"  shall be
limited to only subsection (B) above. For purposes of this Section  4(d)(i),  no
act, or failure to act, on Executive's part shall be considered "willful" unless
done,  or omitted to be done,  by him not in good faith and  without  reasonable
belief that his action or omission was in the best interests of the Company. The
Company must assert a "just cause"  termination  event no later than ninety (90)
days after discovery of such event.
<PAGE>

The date of  termination  for a  termination  for "just cause" shall be the date
indicated  in the  Notice of  Termination  (as  defined  herein).  A "Notice  of
Termination"  for "just  cause"  shall  mean a notice  that shall  indicate  the
specific  termination  provision  in Section  4(d)(i)  relied upon and shall set
forth in reasonable detail the facts and circumstances which provide for a basis
for  termination for "just cause."  Further,  a Notice for Termination for "just
cause" shall be required to include a copy of a  resolution  duly adopted by the
Board, with at least two-thirds (2/3) of the non-management members of the Board
voting in favor  thereof,  at a meeting  of the Board  which was  called for the
purpose  of  considering   such   termination   and  which   Executive  and  his
representative  had the right to attend and address the Board,  finding that, in
the good faith of the  Board,  Executive  engaged  in  conduct  set forth in the
definition  of "just cause" herein and  specifying  the  particulars  thereof in
reasonable detail.  Any purported  termination for "just cause" which is held by
an arbitrator  not to have been based on the grounds set forth in this Agreement
or not to have  followed the  procedures  set forth in this  Agreement  shall be
deemed a termination by the Company without "just cause."

                  (ii)     Good Reason.  The term "good  reason"  shall mean any
                           one  or  more  of  the  following:

                           (A) Without the Executive's  express written consent,
any diminution in the Executive's titles,  authorities,  responsibilities or the
assignment  of the  Executive  to any  duties  inconsistent  with his  position,
duties,  responsibilities and status with the Company as its Chairman, President
and Chief  Executive  Officer or the  removal by the  Board,  or the  failure or
refusal of the Board to re-elect,  the Executive as the Chairman,  President and
Chief  Executive  Officer  of the  Company  at any time  during the term of this
Agreement.  For  purposes  hereof,  a  "diminution  in the  Executive's  titles,
authorities or responsibilities" shall be deemed to have occurred if the Company
is no longer required to file reports pursuant to Section 13 or Section 15(d) of
the Securities Exchange Act of 1934, as amended.

                           (B) The  Company's  breach of any  provision  of this
Agreement  or any other  agreement  between the Company  and the  Executive  and
failure,  within the ten (10) day period following its receipt of written notice
from the  Executive  describing  such breach in reasonable  detail,  to promptly
commence in good faith to cure such breach (if curable); provided that such cure
must be  effected  no later than  thirty  (30) days  following  such  notice and
provided  further  that such cure right shall not be  available on more than one
occasion  in any twelve  (12) month  period.

                           (C) Adoption  by a  majority  of  the  Board  of  any
resolution or series of related resolutions that,  individually or collectively,
has or could  reasonably be expected to have a material  effect on the strategic
direction,  operations,  financial  condition  or results of  operations  of the
Company and that is voted against by the  Executive in a good faith  exercise of
his fiduciary duty or the failure or refusal of a majority of the Board to adopt
a proposed  resolution or series of related  resolutions  that,  individually or
collectively,  has or could  reasonably  have been  expected  to have a material
effect on the strategic direction, operations, financial condition or results of
operations of the Company and that the Executive proposed, by a motion or series
of motions  (whether or not  seconded),  be adopted by the Board in a good faith
exercise  of his  fiduciary  duty.

                           (D) Failure  of the Company  to obtain the assumption
in writing (a copy of which is  delivered  to the  Executive)  of the  Company's
obligations  hereunder to the Executive by any successor to the Company prior to
or  at  the  time  of  a  merger,  acquisition,  consolidation,  disposition  of
substantially all of the assets of the Company or similar transaction.

<PAGE>

The Executive must assert a "good reason" termination event no later than ninety
(90) days after the Executive discovers such event.
                  (iii)  Disability.  The  Executive  shall be  considered to be
subject to a  "Disability"  if, as a result of  physical  or mental  sickness or
incapacity or accident,  the Executive is unable to perform the normal duties of
his  employment  with the  Company  for a period of ninety  (90) days in any one
hundred  twenty  (120) day  period.  If there is any  disagreement  between  the
Company and the  Executive as to whether the Executive was unable to perform the
normal duties of his employment due to Disability,  the same shall be determined
after examination of the Executive by a physician selected by the Executive (or,
if the  Executive  is  unable to make  such  selection,  it shall be made by the
Executive's  spouse  or, if the  Executive  is not  married  or if his spouse is
unable or  unwilling  to make the  selection,  by any other adult  member of the
Executive's  immediate  family)  and  approved  by the  Company.  The  costs and
expenses of such examination shall be borne by the Company. The determination of
such  physician  shall be  conclusive  evidence as to whether the  Executive was
unable to perform the normal duties of his employment due to Disability.  If the
Executive does not permit such examination by such physician, then, for purposes
hereof,  the determination as to whether the Executive was unable to perform the
normal duties of his  employment  due to Disability  shall be made by the Board.
Nothing herein shall have any effect upon the Executive's eligibility to receive
any disability benefits from the Company pursuant to the terms and conditions of
any disability  plan or other  arrangement  which the Company may have in effect
from time to time.

     (e) Termination Payment.

                  (i)  Termination  for Just  Cause.  In the event  the  Company
terminates  the  Executive's  employment  pursuant  to  Section  4(a)(i) of this
Agreement,  the Company shall have no further  obligation under Sections 3 and 4
of this Agreement  except to pay the Executive any  compensation  earned but not
yet paid, including without limitation, the Base Salary and Annual Bonus for the
calendar year in which the date of termination  falls, in each case prorated for
the  number  of days of the  calendar  year  that  elapsed  prior to the date of
termination,  any  accrued  vacation  pay  payable  pursuant  to  the  Company's
policies,  and any unreimbursed  business  expenses  (collectively  the "Accrued
Amounts").

                  (ii) Termination  Without Just Cause. In the event the Company
terminates   Executive's   employment  pursuant  to  Section  4(a)(ii)  of  this
Agreement,  the Executive's  employment  under this Agreement shall terminate at
the  expiration  of said thirty (30) day period,  and the Company  shall have no
further obligation under Sections 3 and 4 of this Agreement except to pay to the
Executive a cash lump sum amount equal to the sum of:
                           (A)      the Accrued Amounts; and

                           (B) the  Executive's  Base  Salary and the average of
the annual  bonuses  received by the  Executive for the three years prior to the
year in which such termination occurs  (collectively,  the "Severance Payment");
which  sum  shall  be paid by the  Company  as soon  as  practicable  after  the
termination date, but in no event later than ten (10) days after the termination
of the  Executive's  employment;  provided,  however,  that in the  event of any
termination  without  just cause that occurs in  contemplation  of or within two
years  following  a Change in  Control,  the  Company  shall  instead pay to the
Executive a cash lump sum amount equal to the sum of the Accrued Amounts and two
times the  Severance  Payment.  Any such payment shall be subject to a six-month
delay to the extent  necessary for the avoidance of adverse tax  consequences to
the  Executive  under  Section  409A of the Internal  Revenue  Code of 1986,  as
amended (the "Code").  Notwithstanding  the foregoing,  in the event the Company
terminates Executive's employment pursuant to Section 4(a)(ii), the Company may,
at its option,  require the Executive to cease providing  services hereunder and
serving as an  employee  of the  Company at any time during said thirty (30) day
period.  In addition,  all stock options  and/or equity granted to the Executive
shall fully vest and become  exercisable upon the termination  date. The Company
shall  continue to provide the Executive  (and his spouse and  dependents)  with
group health plan benefits (or substantially  similar substitute  arrangements),
at its sole expense, for one year (the "One Year Medical Benefits").
<PAGE>

                  (iii)  Termination for Good Reason. In the event the Executive
terminates  the  Executive's  employment  pursuant  to  Section  4(b)(i) of this
Agreement,  the Company shall have no further  obligation under Sections 3 and 4
of this  Agreement  except to pay to the  Executive a cash lump sum equal to the
Accrued Amounts and the Severance Payment, which shall be paid by the Company as
soon as practicable  after the termination  date, but in no event later than ten
(10)  days  after  the  termination  of the  Executive's  employment;  provided,
however,  that in the event of any  termination  for good  reason that occurs in
contemplation of or within two years following a Change in Control,  the Company
shall  instead pay to the  Executive a cash lump sum amount  equal to the sum of
the Accrued Amounts and two times the Severance Payment.  Any such payment shall
be subject to a six-month  delay to the extent  necessary  for the  avoidance of
adverse tax  consequences  to the  Executive  under Section 409A of the Code. In
addition,  all stock options and/or equity granted to the Executive  shall fully
vest and become  exercisable  upon the termination  date. The Company shall also
provide the Executive (and his spouse and dependents)  with the One Year Medical
Benefits.

                  (iv)   Termination Without  Good  Reason.  In  the  event  the
Executive terminates the Executive's  employment pursuant to Section 4(b)(ii) of
this Agreement,  the Executive's employment under this Agreement shall terminate
at the expiration of said thirty (30) day period,  and the Company shall have no
further  obligation  under Sections 3 and 4 of this Agreement  except to pay the
Executive  a cash lump sum equal to the Accrued  Amounts as soon as  practicable
after the  termination  date, but in no event later than ten (10) days after the
termination of Executive's  employment.  Notwithstanding  the foregoing,  in the
event the Executive terminates his employment pursuant to Section 4(b)(ii),  the
Company may, at its option,  require the Executive to cease  providing  services
hereunder  and  serving as an  employee  of the  Company at any time during said
thirty (30) day period;  provided that the  Executive  shall be entitled to such
payments  as  would  have  otherwise  been  due to him had he  continued  in the
employment  of the Company for such thirty (30) day period,  including,  without
limitation,  payments  of the  Accrued  Amounts and amounts to be paid under any
other  plan,  agreement  or  policy  which  survives  the  termination  of  this
Agreement.

                  (v)  Termination  upon Death or  Disability.  In the event the
Executive's  employment  is  terminated  pursuant to Section  4(c)  hereof,  the
Company  shall  have  no  further  obligation  under  Sections  3 and 4 of  this
Agreement  except to pay to the  Executive  (or his personal  representative  or
guardian) a cash lump sum amount equal to the Accrued  Amounts and the Severance
Payment,  which  shall be paid by the Company as soon as  practicable  after the
termination date, but in no event later than ten (10) days after the termination
of the  Executive's  employment.  In addition,  all stock options  and/or equity
granted  to the  Executive  shall  fully vest and  become  exercisable  upon the
termination  date.  The Company  shall also  provide the  Executive  (and/or his
spouse and dependents as applicable) with the One Year Medical Benefits.
<PAGE>

     (f) COBRA.  In  the  event  that  the  Company's group health plan does not
permit the Company to provide  continuation  coverage for the  Executive for the
one (1) year period in which the One Year  Medical  Benefits  are to be provided
and does not permit the Executive to elect COBRA coverage within sixty (60) days
after the expiration of said one (1) year period and for COBRA coverage to begin
on the first day  following  the  expiration  of said one (1) year  period,  the
Company shall use  reasonable  good faith efforts  within ninety (90) days after
the  Commencement  Date to amend its group  health plan to permit the Company to
provide continuation coverage for the Executive for said one (1) year period and
to permit the Executive to make such election and, if made,  for COBRA  coverage
to begin on the first day following the  expiration of said one (1) year period;
provided,  however,  that the Company  shall not be  required  to change  health
insurance  companies  or to pay  additional  premiums for any employee or former
employee  other than the  Executive in order to effect,  or as a result of, such
amendment. Nothing herein shall be construed as limiting the COBRA rights of the
Executive (or his spouse and dependents).

5.  WITHHOLDING.  The Company  shall be entitled to withhold  from amounts to be
paid to the Executive  hereunder any federal,  state,  or local  withholding  or
other  taxes or  charges  which it is from time to time  required  to  withhold;
provided,  that the  amount so  withheld  shall not exceed  the  minimum  amount
required to be withheld by law in light of the circumstances.  The Company shall
be  entitled  to rely on an opinion of tax  counsel  if any  question  as to the
amount or requirement of any such withholding shall arise.

6. NOTICES.  All notices  provided for by this Agreement shall be in writing and
shall  be (a)  personally  delivered  to the  party  thereunto  entitled  or (b)
deposited in the United States mail, postage prepaid,  addressed to the party to
be notified at the address  listed  below (or at such other  address as may have
been designated by written notice), certified or registered mail, return receipt
requested.  The  notice  shall  be  deemed  to be  received  (a) if by  personal
delivery, on the date of its actual receipt by the party entitled thereto or (b)
if by mail,  two (2) days  following  the date of deposit  in the United  States
mail.
              To the Company:  Atrion Corporation
                               One Allentown Parkway
                               Allen, TX 75002
                               Attention: Chief Financial Officer

              To Executive:    Emile A. Battat
                               To the most recent  address
                               on file with the Company.

7. PARTIES BOUND. This Agreement and the rights and obligations  hereunder shall
be binding  upon and inure to the benefit of the Company,  Executive,  and their
respective heirs, personal  representatives,  successors and assigns;  provided,
however,  that  Executive  may not assign any  rights or  obligations  hereunder
without the express written  consent of Company.  This Agreement shall also bind
and  inure  to the  benefit  of  any  successor  of the  Company  by  merger  or
consolidation,  or any  assignee of all or  substantially  all of the  Company's
properties.

8. INVALID PROVISIONS. If any provision of this Agreement is held to be illegal,
invalid, or unenforceable under present or future laws effective during the term
hereof,  such  provision  shall  be fully  severable;  this  Agreement  shall be
construed and enforced as if such illegal,  invalid, or unenforceable  provision
had never  comprised a part hereof;  and the remaining  provisions  hereof shall
remain in full  force and  effect  and shall  not be  affected  by the  illegal,
invalid, or unenforceable provision or by its severance herefrom.
<PAGE>

9. EXCISE TAX GROSS-UP.

         (a) Payment of Excise Tax Amount.  In the event any of the  payments or
benefits provided to the Executive hereunder or under any other plan,  agreement
or arrangement (the "Company  Payments") will be subject to the tax (the "Excise
Tax")  imposed  by  Section  4999 of the  Code (or any  similar  tax that may be
imposed by any taxing authority),  the Company shall pay to the Executive at the
time specified below an additional amount (the "Gross-up Payment") such that the
net amount  retained by the Executive,  after the deduction of any Excise Tax on
the Company Payments and any U.S. federal, state and local income or payroll tax
on the  Gross-Up  Payment  provided  for  herein but  before  deduction  for any
federal, state or local income or payroll tax on the Company Payments,  shall be
equal to the Company Payments.

         (b)  Applicability  of Excise Tax. For purposes of determining  whether
any of the Company  Payments  and  Gross-up  Payments  (collectively  the "Total
Payments")  will be subject to the Excise Tax and the amount of such Excise Tax,
(x) the Total  Payments  shall be treated  as  "parachute  payments"  within the
meaning of Section  280G(b)(2)  of the Code,  and all  "parachute  payments"  in
excess of the "base amount" (as defined  under  Section  280G(b)(3) of the Code)
shall be  treated  as subject to the  Excise  Tax,  to the extent  that,  in the
opinion of a national independent accounting firm designated by the Executive or
tax counsel with a  nationally-recognized  law firm selected by such accountants
(the  "Accountants"),  such  Total  Payments  (in  whole or in part)  constitute
"parachute  payments," do not  represent  reasonable  compensation  for services
actually rendered within the meaning of Section 280G(b)(4) of the Code in excess
of the "base  amount" or are  otherwise  subject to the Excise Tax,  and (y) the
value of any  non-cash  benefits  or any  deferred  payment or benefit  shall be
determined by the  Accountants in accordance with the principles of Section 280G
of the Code.

         (c)  Amount of Gross-Up Payment. For purposes of determining the amount
of the  Gross-up  Payment,  the  Executive  shall be deemed to pay U.S.  federal
income taxes at the highest marginal rate of U.S. federal income taxation in the
calendar  year in which the  Gross-up  Payment is to be made and state and local
income taxes at the highest  marginal rate of taxation in the state and locality
of the Executive's  residence for the calendar year in which the Company Payment
is to be made, net of the maximum  reduction in U.S.  federal income taxes which
could be obtained  from  deduction of such state and local taxes if paid in such
year.  In the  event  that the  Excise  Tax is  subsequently  determined  by the
Accountants to be less than the amount taken into account  hereunder at the time
the Gross-up  Payment is made, the Executive shall repay to the Company,  at the
time that the amount of such reduction in Excise Tax is finally determined,  the
portion of the prior Gross-up  Payment  attributable to such reduction (plus the
portion of the Gross-up Payment attributable to the Excise Tax and U.S. federal,
state and local income tax imposed on the portion of the Gross-up  Payment being
repaid by the Executive if such  repayment  results in a reduction in Excise Tax
or a U.S. federal,  state and local income tax deduction),  plus interest on the
amount of such  repayment at the rate provided in Section  1274(b)(2)(B)  of the
Code;  provided,  however,  that if it is reasonably  likely that such repayment
could  constitute a violation of Section 402 of the  Sarbanes-Oxley  Act of 2002
(or other  applicable  law), no such payment shall be required.  Notwithstanding
the foregoing,  in the event any portion of the Gross-up  Payment to be refunded
to the Company has been paid to any U.S. federal, state and local tax authority,
repayment  thereof  (and  related  amounts)  shall not be required  until actual
refund or credit of such  portion has been made to the  Executive,  and interest
payable to the Company shall not exceed the interest received or credited to the
Executive  by such tax  authority  for the  period  it held  such  portion.  The
Executive and the Company shall  mutually  agree upon the course of action to be
pursued (and the method of allocating  the expense  thereof) if the  Executive's
claim for refund or credit is denied.
<PAGE>

In the event that the Excise Tax is later  determined by the  Accountants or the
Internal  Revenue  Service to exceed the amount taken into account  hereunder at
the time the Gross-up  Payment is made  (including  by reason of any payment the
existence  or amount of which cannot be  determined  at the time of the Gross-up
Payment),  the Company shall make an additional  Gross-up  Payment in respect of
such excess (plus any interest or penalties payable with respect to such excess)
at the time that the amount of such excess is finally determined.

         (d) Time of Payment.  The Gross-up  Payment or portion thereof provided
for in subsection  (c) above shall be paid not later than the  thirtieth  (30th)
day following an event occurring which subjects the Executive to the Excise Tax;
provided,  however,  that if the  amount of such  Gross-up  Payment  or  portion
thereof  cannot be finally  determined  on or before such day, the Company shall
pay to the Executive on such day an estimate, as determined in good faith by the
Accountants,  of the minimum amount of such payments and shall pay the remainder
of such  payments  (together  with  interest  at the rate  provided  in  Section
1274(b)(2)(B) of the Code),  subject to further payments  pursuant to subsection
(c) hereof,  as soon as the amount thereof can reasonably be determined,  but in
no event  later  than the  ninetieth  day  after  the  occurrence  of the  event
subjecting  the Executive to the Excise Tax. In the event that the amount of the
estimated payments exceeds the amount subsequently  determined to have been due,
such excess shall constitute a loan by the Company to the Executive,  payable on
the fifth day after demand by the Company  (together  with  interest at the rate
provided in Section 1274(b)(2)(B) of the Code).
<PAGE>

         (e)  Procedures.  In the  event of any  controversy  with the  Internal
Revenue  Service (or other taxing  authority) with regard to the Excise Tax, the
Executive  shall permit the Company to control  issues related to the Excise Tax
(at its  expense),  provided  that  such  issues do not  potentially  materially
adversely  affect the  Executive,  but the  Executive  shall  control  any other
issues. In the event the issues are interrelated,  the Executive and the Company
shall in good  faith  cooperate  so as not to  jeopardize  resolution  of either
issue,  but if the  parties  cannot  agree the  Executive  shall  make the final
determination with regard to the issues. In the event of any conference with any
taxing authority as to the Excise Tax or associated  income taxes, the Executive
shall permit the  representative  of the Company to accompany the Employee,  and
the  Executive  and the  Executive's  representative  shall  cooperate  with the
Company and its representative.

         (f) Costs.  The  Company  shall be  responsible  for all charges of the
Accountant.

         (g) Notices.  The Company and the Executive  shall promptly  deliver to
each other  copies of any written  communications,  and  summaries of any verbal
communications, with any taxing authority regarding the Excise Tax.

10. NO MITIGATION; NO SET-OFF.

         (a) No Duty to Mitigate.  In the event of any termination of employment
hereunder,  Executive shall be under no obligation to seek other  employment and
there shall be no offset against any amounts due Executive  under this Agreement
on account of any  remuneration  attributable to any subsequent  employment that
Executive may obtain.

         (b) Other  Payments.  Any amounts or benefits  payable to the Executive
under this  Agreement  are,  in  addition  to,  and are not in lieu of,  amounts
payable to the Executive  under any other salary  continuation or cash severance
arrangement  of the Company or any other type of agreement  entered into between
the parties, and to the extent paid or provided under any other such arrangement
or  agreement  shall not be offset from the amounts or benefits  due  hereunder,
except to the extent expressly provided in such other arrangement or agreement.

11.  ATTORNEYS' FEES AND COSTS.  In the event that it becomes  necessary for the
Executive to seek legal  counsel with regard to a dispute,  claim or issue under
this  Agreement or the Executive  deems it necessary to initiate  arbitration in
order to enforce his rights  hereunder,  then the Company  shall bear and,  upon
notification  to  the  Company  by the  Executive,  immediately  advance  to the
Executive all expenses of such dispute,  claim, issue or arbitration,  including
the  reasonable  fees and expenses of the counsel of the  Executive  incurred in
connection with such dispute, claim, issue or arbitration,  unless an arbitrator
determines that the Executive's position was frivolous or otherwise taken in bad
faith,  in which case an arbitrator may determine that Executive  shall bear his
own  legal  fees.   Notwithstanding   any  existing  or  prior   attorney-client
relationship between the Company and the counsel selected by the Executive,  the
Company irrevocably consents to the Executive's entering into an attorney-client
relationship  with such  counsel,  and in that  connection  the  Company and the
Executive  agree  that a  confidential  relationship  shall  exist  between  the
Executive and such counsel.
<PAGE>

12. ARBITRATION.  All disputes and controversies  arising under or in connection
with this Agreement,  shall be settled by arbitration  conducted  before one (1)
arbitrator  sitting in New York, New York, or such other location  agreed by the
parties  hereto,  in accordance  with the National  Rules for the  Resolution of
Employment Disputes of the American Arbitration  Association then in effect. The
determination  of the  arbitrator  shall be final and  binding  on the  parties.
Judgment  may be  entered  on the award of the  arbitrator  in any court  having
proper  jurisdiction.  All expenses of such arbitration,  including the fees and
expenses of the counsel of the  Executive,  shall be borne by the Company unless
the arbitrator  determines that Executive's  position was frivolous or otherwise
taken in bad faith,  in which case the  arbitrator  may determine that Executive
shall bear his own legal fees.

13. LEGAL FEES. The Company shall pay the Executive's  reasonable legal fees and
costs associated with entering into this Agreement.

14. INDEMNIFICATION.  The Company shall indemnify and hold harmless Executive to
the fullest extent permitted under the Company's Bylaws as in effect on the date
hereof or the date of  termination  of  employment,  if on such date the  Bylaws
provide the Executive with greater rights to indemnification, and to the fullest
extent permitted by law for any action or inaction of Executive while serving as
an officer or  director  of the  Company  or, at the  Company's  request,  as an
officer or director of any other entity or as a fiduciary  of any benefit  plan.
The Company shall cover the  Executive  under  directors and officers  liability
insurance  both  during  and,  while  potential  liability  exists,   after  the
Employment  Term (but in no event for a period  which is less than six (6) years
after  termination)  in the same  amount and to the same  extent as the  Company
covers its other officers and directors as of the Commencement  Date or the date
of termination of employment, if on such date the Executive will receive greater
coverage under such insurance.

15.  WAIVERS AND  CONSENTS.  One or more waivers of any breach of any  covenant,
term or  provision  of this  Agreement  by any party shall not be construed as a
waiver of a subsequent breach of the same covenant, term or provision, nor shall
it be considered a waiver of any other then  existing or subsequent  breach of a
different covenant,  term or provision.  The consent or approval of either party
to or of any act by the other party requiring such consent or approval shall not
be  deemed  to  waive  or  render  unnecessary  consent  to or  approval  or any
subsequent  similar act. No custom or practice of the parties shall constitute a
waiver of either party's rights to insist upon strict  compliance with the terms
hereof.

16. SECTION HEADINGS. The headings contained in this Agreement are for reference
purposes only and do not affect in any way the meaning or interpretation of this
Agreement.

17. MULTIPLE COUNTERPARTS.  This Agreement may be executed in counterparts, each
of  which  for all  purposes  is to be  deemed  an  original,  and both of which
constitute,  collectively, one agreement; but in making proof of this Agreement,
it  shall  not be  necessary  to  produce  or  account  for  more  than one such
counterpart.
<PAGE>

18.  GOVERNING  LAW.  This  Agreement  shall be  governed  by and  construed  in
accordance  with  the  laws  of  the  State  of  Texas,  without  regard  to its
conflict-of-law rules.

19. SECTION 409A. The intent of the parties is that,  effective as of January 1,
2005, this Agreement and, while  effective,  the Current  Employment  Agreement,
will be in full  compliance with Section 409A of the Code, and in the event that
any provision of this  Agreement and, while  effective,  the Current  Employment
Agreement,  or any payment of  compensation  or benefits  paid  pursuant to this
Agreement is determined to be inconsistent with the requirements of Section 409A
of the Code, the Company shall reform this Agreement and, while  effective,  the
Current Employment Agreement, to the extent necessary to comply therewith and to
avoid the  imposition of any penalties or taxes  pursuant to Section 409A of the
Code,  provided that any such  reformation  shall to the maximum extent possible
retain the  originally  intended  economic and tax benefits to the Executive and
the  original  purpose  of  this  Agreement  and,  if  applicable,  the  Current
Employment Agreement, without violating Section 409A of the Code or creating any
unintended  or adverse  consequences  to the  Executive.  Such  reformation  may
include  imposition  of a six month delay in the payment of certain  benefits if
the  Executive is a "specified  employee"  under Section 409A of the Code at the
relevant time.

20.  ENTIRE  AGREEMENT.  The  Current  Agreement,  the  provisions  of which (as
supplemented  by Section 19 hereof)  shall remain in full force and effect until
January 1, 2007, and this Agreement  contain the entire agreement of the parties
hereto, and supersede all prior agreements and understandings,  oral or written,
if any,  between the parties hereto,  with respect to the subject matter hereof.
No  modification  or amendment of any of the terms,  conditions,  or  provisions
herein may be made  otherwise  than by written  agreement  signed by the parties
hereto.

IN WITNESS  WHEREOF,  the parties have caused this Agreement to be duly executed
and delivered as of the date first above written.

                          ATRION CORPORATION

                          By: /s/ Jeffery Strickland
                             ------------------------------------------
                          Vice President and Chief Financial Officer,
                          Secretary and Treasurer

                          /s/ Emile A. Battat
                          ---------------------------------------------
                          EMILE A. BATTAT

<PAGE>

                                    Exhibit A

         (a) For purposes of the  Agreement,  the term "Change in Control" shall
mean the occurrence of any one of the following events:

                  (i) any person (as the term  "person" is used in Section 13(d)
(3) or Section 14(d) (2) of the Securities Exchange Act of 1934, as amended (the
"Exchange  Act"))  (other  than the  Company,  any of its  subsidiaries,  or any
trustee or other fiduciary  holding  securities of the Company under an employee
benefit plan of the Company or any of its  subsidiaries)  becomes the beneficial
owner  (as the term  "beneficial  owner"  is  defined  under  Rule  13d-3 or any
successor rule or regulation  promulgated  under the Exchange Act) of securities
of the Company  representing  25% or more of the  combined  voting  power of the
then-outstanding voting securities of the Company

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

                  (iii)  the  stockholders  of the  Company  approve  a plan  of
complete  liquidation  of the Company or the Company sells all or  substantially
all of its assets to any other  corporation  or other  person and as a result of
such sale less than 50% of the  combined  voting  power of the  then-outstanding
voting  securities  of  such  corporation  or  person   immediately  after  such
transaction are held in the aggregate by the holders of voting securities of the
Company immediately prior to such sale; or

                  (iv) during any period of two consecutive  years,  individuals
who, at the  beginning  of any such  period,  constitute  the  directors  of the
Company cease for any reason to constitute  at least a majority  thereof  unless
the election or the  nomination  for election by the Company's  stockholders  of
each director of the Company first elected  during such period was approved by a
vote of at least two-thirds of the directors of the Company then still in office
who were directors of the Company at the beginning of any such period.Exhibit 10.1

    Exhibit
      10.1

    
 

    AMENDED
      AND RESTATED

    EMPLOYMENT
      AND NONCOMPETITION AGREEMENT

     

    THIS
      AMENDED AND RESTATED EMPLOYMENT AND NONCOMPETITION AGREEMENT
(this
      “Agreement”), dated as of May 1, 2006, by and between ROBERT
      R. HILL, JR., an
      individual resident of Richland County, South Carolina (“Employee”), and
SCBT
      FINANCIAL CORPORATION,
      a bank
      holding corporation organized under the laws of South Carolina
      (the “Company”).

     

    Background
      Statement

     

    Employee
      and the Company are entering into this agreement to establish certain terms
      of
      Employee’s employment with the Company, and are amending and restating the
      Employment Agreement between the Company and Employee dated the 30th day of
      September, 1999 in order to, among other things, extend the term of that
      Agreement and provide additional benefits to Employee. The board of directors
      of
      the Company (the “Board”) believes it is in the best interest of the Company and
      its subsidiaries to restrict competition with the Company and its subsidiaries
      by key management personnel upon termination of their employment.

     

    Statement
      of Agreement

     

    In
      consideration of the mutual covenants herein, Employee and the Company agree
      as
      follows:

     

    1.
      Employment.
      The
      Company agrees to employ Employee, and Employee agrees to serve the Company,
      upon the terms and conditions set forth in this Agreement.

     

    2.
      Term
      of Employment.
      The term
      of Employee’s employment hereunder shall commence immediately upon the date
      hereof and shall continue until the third anniversary of the date hereof, unless
      terminated earlier as provided in Section 6 or 7 hereof (the “Term”); provided,
      however, that on each anniversary date of this Agreement, the Term shall be
      extended for one year (so that on each anniversary date the Term will be three
      years) unless at least sixty (60) days prior to any such anniversary date either
      party gives to the other notice in writing of non-renewal.

     

    3.
      Position
      and Responsibilities.
      During
      the period of employment hereunder, Employee shall serve as, and with the title,
      office, and authority of, President and Chief Executive Officer of the Company
      and Chief Executive Officer of South Carolina Bank and Trust, N.A. (the “Bank”),
      and shall report to the Board and the board of directors of the Bank (the “Bank
      Board”). Employee shall have the duties, responsibilities, rights, power and
      authority as President and Chief Executive Officer of the Company and Chief
      Executive Officer of the Bank that may from time to time be delegated or
      assigned to him by the Board and the Bank Board.

    

      NOTICE

       

      THIS
        CONTRACT IS SUBJECT TO ARBITRATION PURSUANT TO THE UNIFORM ARBITRATION ACT
        AS
        ADOPTED IN SOUTH CAROLINA AT SECTION 15-48-10 THROUGH SECTION 15-48-240,
        SOUTH
        CAROLINA CODE OF LAWS (1976, AS AMENDED).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    4.
      Duties.
      During
      the period of employment hereunder, Employee shall devote substantially all
      of
      his business time, attention, skills and efforts to the business of the Company
      and the Bank and the faithful performance of his duties and responsibilities
      hereunder. Employee shall be loyal to the Company and the Bank and shall refrain
      from rendering any business services to any person or entity other than the
      Company and its affiliates without the prior written consent of the Company.
      Employee may, and is encouraged to, participate in such civic, charitable,
      and
      community activities that do not substantially interfere with the performance
      of
      his duties under this Agreement. Employee shall be permitted to make private
      investments so long as these investments do not materially and adversely affect
      his employment hereunder.

     

    5.
      Compensation
      and Benefits.
      For all
      services rendered by Employee to the Company hereunder, the Company shall
      compensate Employee as follows:

     

    (a)
      Base
      Salary.
      During
      the period of employment hereunder, the Company shall pay Employee an annual
      salary (as increased by the Company from time to time in its sole discretion,
      the “Base Salary”) of $300,000 per year, subject to applicable federal and state
      income and social security tax withholding requirements. The Base Salary shall
      be payable in accordance with the Company’s customary payroll
      practices.

     

    (b)
      Reimbursement
      of Expenses.
      The
      Company shall pay or reimburse Employee for all reasonable travel and other
      business related expenses incurred by him in performing his duties under this
      Agreement. Such expenses shall be appropriately documented and submitted to
      the
      Company in accordance with the Company’s policies and procedures as established
      from time to time.

     

    (c)
      Vacation
      and Sick Leave.
      Employee
      shall be provided with vacation and sick leave in accordance with the Company’s
      policies and procedures for senior executives as established from time to
      time.

     

    (d)
      Employee
      Benefit Plans.
      During
      the period of employment hereunder, Employee shall be entitled to participate
      in
      the employee benefit plans of the Company or its successors or assigns, as
      presently in effect or as they may be modified or added to from time to time,
      to
      the extent such benefit plans are provided to other senior
      executives.

     

    (e)
      Incentive
      Bonus Plans.
      During
      the period of employment hereunder, Employee shall be entitled to participate
      in
      the Company’s incentive-based bonus plans, applicable to his employment
      position, in accordance with both the terms and conditions of such plans and
      the
      Company’s policies and procedures as established from time to time.

     

    (f)
      Other
      Fringe Benefits.
      During
      the period of employment hereunder, the Company shall (i) provide Employee
      with the use of an automobile, (ii) reimburse Employee for the expense of
      his attendance at such meetings and conventions as may be approved by the Board,
      and (iii) reimburse Employee for Country Club and such other dues and fees
      as may be approved by the Board.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    (g)
      Total
      Compensation.
      Employee’s Base Salary, the greater of Employee’s annual bonus for the fiscal
      year preceding the fiscal year in which Employee’s employment terminates or the
      average bonus for the five years preceding the year of termination, Employee’s
      health, medical and dental insurance, and the fringe benefits provided in
      Subsection (f) of this Section 5 (or a lump sum payment equal to the value
      of
      such benefits without commutation to present value) are together hereinafter
      referred to as Employee’s “Total Compensation.” Total Compensation does not
      include any payments under the Company’s long term incentive program paid in
      Company common stock.

     

    6.
      Termination
      of Employment.

     

    (a)
      Termination
      Upon Death, Disability, or For Cause.
      The
      Company shall have the right to terminate Employee’s employment hereunder upon
      the death or Disability (as defined below) of Employee or for Cause (as defined
      below). If Employee’s employment is terminated upon Employee’s death or
      Disability, the Company will pay to or for the benefit of Employee or his estate
      an amount equal to Employee’s Total Compensation for the twelve month period
      preceding death or Disability in equal monthly installments during the twelve
      month period following death or Disability or in a lump sum as determined by
      the
      Board in its discretion (but without any reduction for commutation to present
      value), and in the case of Disability the Company will continue Employee’s
      health, medical, and dental insurance coverages for such twelve month period
      on
      the same basis as in effect on the date of Disability. If Employee’s employment
      is terminated for Cause, the Company shall have no further obligation to
      Employee under this Agreement. Termination for Disability or for Cause shall
      be
      effective immediately or upon notice to Employee of such termination as may
      be
      determined by the Board. For purposes of this Agreement:

     

    (i)“Disability”
      means “disability” (as defined under the Company’s disability insurance policy
      maintained for Bank executives from time to time) suffered by Employee for
      a
      continuous period of at least six months or any impairment of mind or body
      that
      is likely to result in a “disability” of Employee for more than three months
      during any twelve-month period.

     

    (ii)“Cause”
      means: (A) the repeated failure of Employee to perform his responsibilities
      and duties hereunder
      after
      Employee has been given written notice by the Chairman of the Board specifying
      in general the reasons Employee is failing to perform his duties and
      responsibilities hereunder, (B) the commission of an act by Employee
      constituting dishonesty or fraud against the Company or any of its affiliates;
      (C) the conviction for or the entering of a guilty or no contest plea with
      respect to a felony; (D) habitual absenteeism, reporting to work under the
      influence of alcohol or unlawful use of controlled substances; or (E) the
      commission of an act by Employee involving gross negligence or moral turpitude
      that brings the Company or any of its affiliates into public disrepute or
      disgrace or causes material harm to the customer relations, operations or
      business prospects of the Company or any of its affiliates.

     

    In
      the
      event of the termination of Employee’s employment for Cause under this
Section 6(a),
      Employee
      shall be entitled only to the Base Salary earned through the date of
      termination.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

       

    

    (b)
      Termination
      Without Cause.
      The
      Company shall have the right to terminate Employee’s employment at any time and
      for any reason subject to the provisions of this Section 6(b).
      In the
      event that the Company shall terminate Employee’s employment for any reason
      other than as provided in Section 6(a),
      the
      Company shall as its sole obligation hereunder continue to pay to
      Employee his Total Compensation, subject to applicable federal and state
      income and social security tax withholding requirements and in accordance with
      the Company’s customary payroll practices, and shall continue Employee’s health,
      medical and dental insurance and other benefits on the same basis as in effect
      at the time of termination, in each case during the twelve month period
      following termination. In addition, Employee shall receive compensation for
      two
      years for Employee’s covenant not to compete with the Company as provided in
      Section 9(f) below.

     

    (c)
      Termination
      by
      Employee for Good Reason.
      Employee
      shall have the right to terminate his employment hereunder for Good Reason.
      For
      purposes of this Agreement, “Good Reason” shall mean, without Employee’s express
      written consent, the occurrence of any of the following circumstances
unless
      such
      circumstances are fully corrected within thirty days after Employee notifies
      the
      Company in writing of the existence of such circumstances as hereinafter
      provided:

     

    (i)
      the
      assignment to Employee of any duties, functions or responsibilities other than
      those contemplated by Section 3 hereof or materially inconsistent with the
      position with the Company that Employee held immediately prior to the assignment
      of such duties or responsibilities or any adverse alteration in the nature
      or
      status of Employee’s responsibilities or the condition of Employee’s employment
      from those contemplated in Section 3 hereof;

     

    (ii)
      a
      reduction by the Company in Employee’s total compensation as in effect on the
      date hereof or as it may be increased from time to time, except for
      across-the-board salary reductions similarly affecting all management personnel
      of the Company;

     

    (iii)
      the
      relocation of the Company’s headquarters to a location more than fifty miles
      from its current location in Columbia, South Carolina, or the Company’s
      requiring Employee to be based anywhere other than the Company’s offices at such
      location, except for required travel on Company business;

     

    (iv)
      the
      failure by the Company to pay Employee any portion of Employee’s compensation
      within the time guidelines established pursuant to standard Company policies,
      or
      any other material breach by the Company of any other material provision of
      this
      Agreement; or

     

    (v)
      the
      giving
      of notice by the Company of non-renewal of this Agreement pursuant to Section
      2
      hereof.

     

    Employee
      shall notify the Company in writing that he believes that one or more of the
      circumstances described above exists, and of his intention to terminate this
      Agreement for Good Reason as a result thereof, within sixty days of the time
      that he gains knowledge of such circumstances. Employee shall not deliver a
      notice of termination of this Agreement until thirty days after he delivers
      the
      notice described in the preceding sentence, and Employee may do so only if
      the
      circumstances described in such notice have not been corrected in all material
      respects by the Company.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

       

    

    In
      the
      event Employee terminates his employment pursuant to this
      Section 6(c) for
      Good
      Reason, and subject to Section 7(a) below in the event of termination within
      three years after a Change of Control, the Company shall continue to pay to
      Employee his Total Compensation, subject to applicable federal and state income
      and social security tax withholding and in accordance with the Company’s
      customary payroll practices, and shall continue Employee’s health, medical and
      dental insurance and other benefits on the same basis as in effect at the time
      of such termination, in each case during the twelve month period following
      termination of employment. In addition, Employee shall receive compensation
      for
      two years for Employee’s covenant not to compete with the Company as provided in
      Section 9(f) below.

     

    (d)
      Termination
      by Employee without Good Reason.
      Employee
      shall have the right at any time voluntarily to terminate his employment and
      this Agreement, in which case (except as otherwise provided in Section 6(c)
      above) Employee shall be entitled only to Employee’s Base Salary through the
      date of termination, plus Employee’s Total Compensation for two years for
      Employee’s covenant not to compete with the Company as provided in Section 9(f)
      below.

     

    (e)
      Resignation
      from Boards.
      Upon
      termination of Employee’s employment for any reason, Employee by execution of
      this Agreement resigns as a member of the Board and the Bank Board, such
      resignation to be effective immediately at the time Employee’s employment
      terminates.

     

    7.
      Change
      of Control.

     

    (a)
      If

     

    (i)
      a
      Change
      of Control (as defined below) occurs during the Term of this Agreement or any
      extension thereof, and

     

    (ii)
      (A) Employee’s
      employment is terminated in anticipation of a Change of Control, or
      (B) Employee is employed by the Company or an affiliate thereof at the time
      such Change of Control occurs, and
      at any
      time during the three-year period following such Change of Control,

     

    (1)
      Employee
      is given notice of non-renewal of this Agreement pursuant to Section 2 hereof,
      or his employment is terminated by the Company or an affiliate or successor
      thereof for any reason other than for death, Disability or Cause,
      or

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

       

    

    (2)
      Employee
      terminates his employment during the Window Period, as hereinafter defined,
      for
      any reason other than death or Disability, or Employee terminates his employment
      for Good Reason, 

     

    the
      Company (or its successors) shall pay Employee, or his beneficiary in the event
      of his subsequent death, subject to applicable federal and state income, social
      security and other employment tax withholding, an amount (the “Change of Control
      Payment”) equal to .99 times Employee’s Total Compensation in effect at the date
      of termination of employment.

     

    The
      Change
      of Control Payment is in
      lieu
      of and not in addition to
      any
      payments provided for under Section 6 of this Agreement, but the Change of
      Control Payment is in
      addition to
      the
      payment for Employee’s covenant not to compete provided for under Section 9(f)
      of this Agreement. The Change of Control Payment shall be paid in a lump sum
      at
      the time of termination without any reduction for commutation to present value.
      

     

    (b)
      Notwithstanding
      anything in this Agreement to the contrary, in the event it shall be determined
      that any payment or distribution to or for the benefit of the Employee (whether
      paid or payable or distributed or distributable pursuant to the terms of this
      Agreement or otherwise, but determined without regard to any additional payments
      required under this Section 7(b) (a “Payment”)) would be subject to the excise
      tax imposed by Section 4999 of the Code or any interest or penalties are
      incurred by the Employee with respect to such excise tax (such excise tax,
      together with any such interest and penalties, are hereinafter collectively
      referred to as the “Excise Tax”), then the Employee shall be entitled to receive
      (to the extent not paid directly by the Company as withholding taxes) an
      additional payment (a “Gross-Up Payment”) in an amount such that after payment
      by the Employee of all taxes (including any interest or penalties imposed with
      respect to such taxes) with respect to Payments including, without limitation,
      any income taxes (and any interest and penalties imposed with respect thereto)
      and Excise Tax imposed upon the Gross-Up Payment, the Employee retains an amount
      of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.
      

     

    All
      determinations required to be made under this Section 7(b), including whether
      and when a Gross-Up Payment is required and the amount of such Gross-Up Payment
      and the assumptions to be utilized in arriving at such determination, shall
      be
      made by the accounting firm (the “Accounting Firm”) conducting the audit of the
      Company at the time in question; provided, however, that the Accounting Firm
      shall not determine that no Excise Tax is payable by the Employee unless it
      delivers to the Employee a written opinion (the “Accounting Opinion”) that
      failure to report the Excise Tax on the Employee’s applicable federal income tax
      return would not result in the imposition of a negligence or similar penalty.
      In
      the event that the Accounting Firm has served, at any time during the two years
      immediately preceding a Change of Control, as accountant or auditor for the
      individual, entity or group that is involved in effecting or has any material
      interest in a Change of Control, the Employee shall appoint a nationally
      recognized accounting firm that is reasonably acceptable to the Company to
      make
      the determinations and perform the other functions specified in this Section
      7(b) (which accounting firm shall then be referred to as the Accounting Firm
      hereunder). All fees and expenses of the Accounting Firm shall be borne solely
      by the Company. Within fifteen days of the receipt of notice from the Employee
      that there has been a Payment, or such earlier time as is requested by the
      Company, the Accounting Firm shall make all determinations required under this
      Section 7(b), shall provide to the Company and the Employee a written report
      setting forth such determinations, together with detailed supporting
      calculations, and, if the Accounting Firm determines that no Excise Tax is
      payable, shall deliver the Accounting Opinion to the Employee. Any Gross-Up
      Payment, as determined pursuant to this Section 7(b), shall be (i) paid by
      the
      Company to taxing authorities to the extent required by applicable law and
      (ii)
      to the extent not so paid and not required to be so paid in the future, paid
      by
      the Company to the Employee at such times as the Accounting Firm determines
      that
      the related tax payments by the Employee are due. Subject to the remainder
      of
      this Section 7(b), any determination by the Accounting Firm shall be binding
      upon the Company and the Employee. As a result of uncertainty in the application
      of Section 4999 of the Internal Revenue Code at the time of the initial
      determination by the Accounting Firm hereunder, it is possible that Gross-Up
      Payments that will not have been made by the Company should have been made
      (“Underpayment”) consistent with the calculations required to be made hereunder.
      In the event that it is ultimately determined in accordance with the procedures
      set forth in this Section 7(b) that the Employee is required to make a payment
      of any Excise Tax, the Accounting Firm shall determine the amount of the
      Underpayment that has occurred, and any such Underpayment shall be promptly
      paid
      by the Company to or for the benefit of the Employee. 

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

       

    

    The
      Employee shall notify the Company in writing of any claims by the Internal
      Revenue Service that, if successful, would require the payment by the Company
      of
      the Gross-Up Payment. Such notification shall be given as soon as practicable
      but no later than thirty days after the Employee actually receives notice in
      writing of such claim and shall apprise the Company of the nature of such claim
      and the date on which such claim is requested to be paid; provided, however,
      that the failure of the Employee to notify the Company of such claim (or to
      provide any required information with respect thereto) shall not affect any
      rights granted to the Employee under this Section 7(b) except to the extent
      that
      the Company is materially prejudiced in the defense of any such claim as a
      direct result of such failure. The Employee shall not pay such claim prior
      to
      the expiration of the thirty day period following the date on which he gives
      such notice to the Company (or such shorter period ending on the date that
      any
      payment of taxes with respect to such claim is due). If the Company notifies
      the
      Employee in writing prior to the expiration of such period that it desires
      to
      contest such claim, the Employee shall:

     

    (i)
      give
      the
      Company any information reasonably requested relating to such
      claim;

     

    (ii)
      take
      such
      action in connection with contesting such claim as the Company shall reasonably
      request in writing from time to time, including, without limitation, accepting
      legal representation with respect to such claim by an attorney selected by
      the
      Company and reasonably acceptable to the Employee;

     

    (iii)
      cooperate
      with the Company in good faith to effectively contest such claim;
      and

     

    (iv)
      if
      the
      Company elects not to assume and control the defense of such claim, permit
      the
      Company to participate in any proceedings relating to such claim;

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

       

    

    provided,
      however, that the Company shall bear and pay directly all costs and expenses
      (including additional interest and penalties) incurred in connection with such
      contest and shall indemnify and hold the Employee harmless, on an after-tax
      basis, for any Excise Tax or income tax (including interest and penalties with
      respect thereto) imposed as a result of such representation and payment of
      costs
      and expenses. Without limiting the foregoing provisions of this Section 7(b),
      the Company shall have the right, at its sole option, to assume the defense
      of
      and control all proceedings in connection with such contest, in which case
      it
      may pursue or forego any and all administrative appeals, proceedings, hearings
      and conferences with the taxing authority in respect of such claim and may
      either direct the Employee to pay the tax claimed and sue for a refund or
      contest the claim in any permissible manner, and the Employee agrees to
      prosecute such contest to a determination before any administrative tribunal,
      in
      a court of initial jurisdiction and in one or more appellate courts, as the
      Company shall determine; provided, however, that if the Company directs the
      Employee to pay such claim and sue for a refund, the Company shall advance
      the
      amount of such payment to the Employee on an interest-free basis, and shall
      indemnify and hold the Employee harmless, on an after-tax basis, from any Excise
      Tax or income tax (including interest or penalties with respect thereto) imposed
      with respect to such advance or with respect to any imputed income with respect
      to such advance. Furthermore, the Company’s right to assume the defense of and
      control the contest shall be limited to issues with respect to which a Gross-Up
      Payment would be payable hereunder, and the Employee shall be entitled to settle
      or contest, as the case may be, any other issue raised by the Internal Revenue
      Service or any other taxing authority.

     

    If,
      after
      the receipt by the Employee of an amount advanced by the Company pursuant to
      this Section 7(b), the Employee becomes entitled to receive any refund with
      respect to such claim, the Employee shall (subject to the Company’s complying
      with the requirements hereof) promptly pay to the Company the amount of such
      refund (together with any interest paid or credited thereon after taxes
      applicable thereto). 

    

    (c)
      For
      purposes of this Agreement, “Window Period” shall mean the thirty-day period
      immediately following elapse of six months after the occurrence of any Change
      of
      Control (as defined below).

     

    (d)
      For
      purposes of this Agreement, “Change
      of Control”
means
      the occurrence of one of the following:

     

    (i)
      any
      “person” (as that term is used in Sections 13(d)(1) of the Securities
      Exchange Act of 1934, as amended) becomes the owner (as determined pursuant
      to
      the provisions of Section 13(d) of the Securities Exchange Act of 1934, without
      regard to the requirements set forth in Section 13(d)(1) in regard to
      registration), directly or indirectly, of 50% or more of the common voting
      stock
      of the Company or the Bank or their respective successors other than
      (A) with respect to the Bank and its successors, the Company or any of its
      successors, (B) a trustee or other fiduciary holding securities under an
      employee benefit plan of the Company, (C) Employee or a group of persons
      including Employee, and (D) an underwriter or group of underwriters owning
      shares of common voting stock in connection with a bona fide public offering
      of
      such shares and the sale of such shares to the public;

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

       

    

    (ii)
      there
      shall be any consolidation or merger of the Company or the Bank as a result
      of
      which the holders of 50% or more of the voting capital stock (if any) of the
      surviving corporation immediately after the transaction were not holders of
      voting capital stock of the Company or the Bank, as the case may be, immediately
      prior to the transaction;

     

    (iii)
      there
      occurs the sale or transfer of all or substantially all of the assets of the
      Company or the Bank or the liquidation or dissolution of the Company or the
      Bank; or

     

    (iv)
      individuals
      who constitute the Board as of the effective date of this Agreement (the
“Incumbent Board”), cease for any reason (including but not limited to a change
      mandated by any statute or regulation) to constitute a majority of the Board;
      provided, however, that any individual becoming a director subsequent to the
      date of this Agreement whose election or nomination for election was approved
      by
      a vote of at least a majority of the Incumbent Board shall be a member of the
      Incumbent Board; except that any individual elected to the Board whose initial
      election occurs as a result of any actual or threatened election contest that
      is
      or would be subject to the provisions of Rule 14a-11 under the Securities
      Exchange Act of 1934, shall not be deemed to be a member of the Incumbent
      Board.

     

    8.
      Confidential
      Information.
      Employee
      acknowledges that during, and as a result of, Employee’s employment with the
      Company and the Bank, Employee will acquire, be exposed to and have access
      to,
      material, data and information of the Company and its affiliates and/or its
      customers, suppliers or clients that is confidential or proprietary. At all
      times, both during and after the period of employment hereunder, Employee shall
      keep and retain in confidence and shall not disclose, except as required in
      the
      course of Employee’s employment with the Company and the Bank, to any person or
      entity, or use for his own purposes, any of this proprietary or confidential
      information. For purposes of this Section 8, such information shall
      include, but shall not be limited to: (i) the Company’s or the Bank’s
      standard operating procedures, processes, know-how and technical and product
      information, any of which is of value to the Company or the Bank and not
      generally known by the Company’s or the Bank’s competitors or the public;
      (ii) all confidential information obtained from third parties and customers
      concerning the business of the Company or its affiliates, including any customer
      lists or data; and (iii) confidential business information of the Company
      or its affiliates, including marketing and business plans, strategies,
      projections, business opportunities, client lists, sales and cost information
      and financial results and performance. Such information shall not include
      information that is disclosed pursuant to issuance of legal process or
      regulatory action, information that is in the public domain, or information
      disclosed to Employee by a person who has no duty to the Company or its
      affiliates to keep the information confidential. Employee acknowledges that
      the
      obligations pertaining to the confidentiality and non-disclosure of information
      shall remain in effect indefinitely, or until the Company has released any
      such
      information into the public domain, in which case Employee’s obligation
      hereunder shall cease with respect only to such information so
      released.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

       

    

    9.
      Noncompetition.

     

    (a)
      Noncompetition.
      Employee
      shall not take any of the following actions during the applicable Noncompetition
      Period (as defined below): 

     

    (i)
      Become
      employed by (as an officer, director, employee, consultant or otherwise),
      involved or engaged in, or otherwise commercially interested in or affiliated
      with (other than as a less than 5% equity owner of any corporation traded on
      any
      national, international or regional stock exchange or in the over-the-counter
      market) any person or entity that competes with the Company or an affiliate
      thereof (each, a “Company Affiliate”) in the business of providing traditional
      banking services or other services provided by the Company and its affiliates
      during the Term.

     

    (ii)
      Solicit
      or
      attempt to solicit, for competitive purposes, the business of any of the clients
      or customers of any Company Affiliate, or otherwise induce such customers or
      clients or prospective customers or clients to reduce, terminate, restrict
      or
      alter their business relationship with any Company Affiliate in any fashion;
      or

     

    (iii)
      Induce
      or
      attempt to induce any employee of any Company Affiliate to leave the Company
      for
      the purpose of engaging in a business operation that is competitive with the
      Company.

     

    (b)
      Noncompetition
      Period.
      For
      purposes of this Section 9 “Noncompetition Period” shall mean the period of
      employment hereunder and the period commencing on the date of termination of
      employment and ending twenty four months thereafter; provided, however, that
      in
      the event Employee is terminated for Cause pursuant to the provisions of Section
      6(e) hereof, the Noncompetition Period shall mean the period commencing on
      the
      date of termination and ending twelve months thereafter.

     

    (c)
      Geographic
      Scope.
      The
      restrictions on competition and solicitation set forth in this Section 9
      shall
      apply to any county in the State of South Carolina or in any other state in
      which the Company or a Company Affiliate is conducting business operations
      during the Noncompetition Period. However, the restrictions are intended to
      apply only with respect to personal activities of Employee within any such
      county and shall not be deemed to apply if Employee is employed by a corporation
      that has branch offices within any such county but Employee does not personally
      work in or have any business contacts with persons in such county.

     

    (d)
      Providing
      Copy of Agreement.
      Employee
      shall provide a copy of this Agreement to any person or entity with whom
      Employee interviews that is in competition with the Company during the
      Noncompetition Period.

     

    (e)
      Obligations
      Survive.
      Employee’s obligations under this Section 9
      shall
      survive any termination of his employment with the Company.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

       

    

    (f)
      Payment
      for Noncompetition.
      In
      addition to the payments to Employee provided by Sections 6(b) (the
      Company’s termination of Employee without Cause), 6(c) (termination of
      employment by Employee for Good Reason), 6(d) (Employee’s voluntary termination
      of employment), or 7 (termination of employment
      after a
      Change of Control), Employee shall be paid for not competing with the Company
      as
      above provided Employee’s Total Compensation in effect at the time of
      termination of his employment for a period of two years, such payment to be
      made
      in two equal lump sum payments with no reduction for commutation to present
      value, with the first payment of one-half the total amount to be paid to be
      made
      at the time of termination of Employee’s employment and the second payment of
      one-half the total amount to be paid to be made on the first anniversary of
      termination of Employee’s employment.

     

    10.
      Company’s
      Right to Obtain an Injunction.
      Employee
      acknowledges that the Company will have no adequate means of protecting its
      rights under Sections 8
      and
9
      other
      than
      by securing an injunction. Accordingly, Employee agrees that the Company is
      entitled to enforce this Agreement by obtaining a preliminary and permanent
      injunction and any other appropriate equitable relief in any court of competent
      jurisdiction. Employee acknowledges that the Company’s recovery of damages will
      not be an adequate means to redress a breach of this Agreement. Nothing
      contained in this Section 10
      shall
      prohibit the Company from obtaining any appropriate remedies in addition to
      injunctive relief, including recovery of damages.

     

    11.
      Waiver
      of Rights.
      In
      consideration of the employment offered hereunder and the payments made pursuant
      to Section 5
      and
      the
      other terms of this Agreement, Employee acknowledges that the Employment
      Agreement dated September 30, 1999, between Employee and the Company is hereby
      terminated, and Employee forever waives, releases and discharges the Company,
      any Company Affiliate, and any of their subsidiaries, shareholders or affiliates
      and any of their successors and assigns from any claims, rights and privileges
      under such agreement.

     

    12.
      General
      Provisions.

     

    (a)
      Entire
      Agreement.
      This
      Agreement contains the entire understanding between the parties hereto relating
      to the employment of Employee by the Company and supersedes any and all prior
      employment or compensation agreements between the Company and
      Employee.

     

    (b)
      Assignability.
      Neither
      this Agreement nor any right or interest hereunder shall be assignable by
      Employee, his beneficiaries or legal representatives, without the Company’s
      prior
      written consent; provided,
      however,
      that
      nothing shall preclude (i) Employee from designating a beneficiary to
      receive any benefit payable hereunder
      upon his
      death or Disability, or (ii) the executors, administrators or other legal
      representatives of Employee or his estate from assigning any rights hereunder
      to
      the person or persons entitled thereunto.

     

    (c)
      Binding
      Agreement.
      This
      Agreement shall be binding upon, and inure to the benefit of, Employee and
      the
      Company and their permitted successors and assigns.

     

    (d)
      Amendment
      of Agreement.
      This
      Agreement may not be amended except by an instrument in writing signed by the
      parties hereto.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

       

    

    (e)
      Insurance.
      The
      Company, at its discretion, may apply for and procure in its own name and for
      its own benefit, life insurance on Employee in any amount or amounts considered
      advisable; and Employee shall have no right, title or interest therein. Employee
      shall submit to any medical or other examination and execute and deliver any
      applications or other instruments in writing as may be reasonably necessary
      to
      obtain such insurance.

     

    (f)
      Severability.
      If any
      provision contained in this Agreement shall for any reason be held invalid,
      illegal or unenforceable in any respect, such invalidity, illegality or
      unenforceability shall not affect any other provision of this Agreement, but
      this Agreement shall be construed as if such invalid, illegal or unenforceable
      provision had never been contained herein. If a court determines that this
      Agreement or any covenant contained herein is unreasonable, void or
      unenforceable, for any reason whatsoever, then in such event the parties hereto
      agree that the duration, geographical or other limitation imposed herein should
      be such as the court, or jury, as the case may be, determines to be fair and
      reasonable, it being the intent of each of the parties hereto to be subject
      to
      an agreement that is necessary for the protection of the legitimate interest
      of
      the Company and its successors or assigns and that is not unduly harsh in
      curtailing the legitimate rights of the Employee.

     

    (g)
      Notices.
      All
      notices under this Agreement shall be in writing and shall be deemed effective
      when delivered in person (with respect to the Company, to the Company’s
      secretary) or when mailed, if mailed by certified mail, return receipt
      requested. Notices mailed shall be addressed, in the case of Employee, to his
      last known residential address, and in the case of the Company, to its corporate
      headquarters, attention of the Secretary, or to such other address as Employee
      or the Company may designate in writing at any time or from time to time to
      the
      other party in accordance with this Section.

     

    (h)
      Waiver.
      No delay
      or omission by either party hereto in exercising any right, power or privilege
      hereunder shall impair such right, power or privilege, nor shall any single
      or
      partial exercise of any right, power or privilege preclude any further exercise
      thereof or the exercise of any other right, power or privilege. The provisions
      of this Section 12(h)
      cannot be
      waived except in writing signed by both parties.

     

    (i)
      Governing
      Law.
      This
      agreement shall be governed and construed in accordance with the laws of the
      State of South Carolina.

     

    (j)
      Arbitration.
      This
      contract is subject to arbitration pursuant to the Uniform Arbitration Act,
      as
      adopted in South Carolina at Section 15-48-10 through Section 15-48-240, South
      Carolina Code of Laws (1976, as amended). Any controversy or claim arising
      out
      of or relating to this Agreement or the validity, interpretation, enforceability
      or breach thereof, which is not settled by agreement among the parties, shall
      be
      settled by arbitration
      in
      Columbia, South Carolina, in accordance with the Rules of the American
      Arbitration Association, and judgment upon the award rendered in such
      arbitration may be entered in any court having jurisdiction. All expenses
      (including, without limitation, legal fees and expenses) incurred by Employee
      in
      connection with, or in prosecuting or defending, any claim or controversy
      arising out of or relating to this Agreement following a Change of Control
      shall
      be paid by the Company, unless Employee fails to prevail in any such claim
      or
      controversy and the Company receives a written opinion of independent legal
      counsel, selected by the Board of Directors of the Company, to the effect that
      such expenses were not incurred by Employee in good faith. Pending any such
      determination, such expenses shall be paid by the Company on a monthly basis,
      upon an undertaking by Employee to repay to the Company amounts so advanced
      if
      Employee fails to prevail in any such claim or controversy, and it should be
      thus determined that the expenses were not incurred by Employee in good
      faith.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Agreement as of the day and year first above
      written.

     

    

      
        	 	
                SCBT
                  FINANCIAL CORPORATION

              	 
	 	 	 
	 	Date
                approved: November 1, 2006	 

      

       

      
        	 	 	 
	 	
                By:

              	
                /s/
                  Robert R. Horger

              
	 	 	
                Robert
                  R. Horger

              
	 	 	
                Chairman
                  of the Board

              

      

       

      
        	 	 	 
	 	 	 
	 	
                EMPLOYEE

              	 
	 	 	 
	 	 	 
	 	
                /s/
                  Robert R. Hill, Jr.

              	 
	 	
                Robert
                  R. Hill, Jr.

              	 

      

    

     

    -13-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}]]