Document:

<PAGE>

                                                                   Exhibit 10(c)

                              EMPLOYMENT AGREEMENT

                                 by and between

                            U.S.B. HOLDING CO., INC.
                                UNION STATE BANK

                                       and

                               STEVEN T. SABATINI

                           Made and Entered Into As of

                                  July 28, 2004

                              EMPLOYMENT AGREEMENT

         This Employment Agreement ("Agreement") is made and entered into as of
July 28, 2004 by and between U.S.B. HOLDING CO., INC., a publicly held business
corporation organized and operating under the laws of the State of Delaware (the
"Company") and Union State Bank (the "Bank"), both having an office at 100 Dutch
Hill Road, Orangeburg, New York 10962 and STEVEN T. SABATINI, an individual
residing at 21 Indian Hill Road, Warwick, New York 10990 ("Mr. Sabatini").

                                   WITNESSETH:

         WHEREAS, Mr. Sabatini currently serves the Company and the Bank in the
capacity of Senior Executive Vice President, Chief Financial Officer and
Assistant Secretary; and

                                     Page 1
<PAGE>

         WHEREAS, the Company and the Bank desire to assure for themselves the
continued availability of Mr. Sabatini's services and the ability of Mr.
Sabatini to perform such services; and

         WHEREAS, Mr. Sabatini is willing to continue to serve the Company and
the Bank on the terms and conditions hereinafter set forth;

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants and conditions hereinafter set forth, the Company and the Bank and Mr.
Sabatini hereby agree as follows:

         Section 1. Employment

         The Company and the Bank agree to continue to employ Mr. Sabatini in
the capacities stated above, and Mr. Sabatini hereby agrees to such continued
employment, during the period and upon the terms and conditions set forth in
this Agreement.

         Section 2. Employment Period; Remaining Unexpired Employment Period

         (a) The terms and conditions of this Agreement shall be and remain in
effect during the period of employment established under this Section 2
("Employment Period"). The Employment Period shall be for a term of three years
beginning on the date of this Agreement and ending on the third anniversary date
of this Agreement (an "Anniversary Date"), plus such extensions, if any, as are
provided for in this Agreement or otherwise agreed to by the Boards of Directors
of the Company and the Bank (collectively, the "Boards").

         (b) Nothing in this Agreement shall be deemed to prohibit the Company
and/or the Bank at any time from terminating Mr. Sabatini's employment during
the Employment Period with or without notice for any reason; provided, however,
that the relative rights and obligations of the Company and the Bank and Mr.
Sabatini in the event of any such termination shall be determined under this
Agreement.

         Section 3. Duties

         Mr. Sabatini shall serve as Senior Executive Vice President, Chief
Financial Officer and Assistant Secretary of the Company and the Bank, having
such power, authority and responsibility and performing such duties as are
prescribed by or under the By-Laws of the Company or the Bank and as are
customarily associated with such position. Mr. Sabatini shall devote his full
business time and attention (other than during weekends, holidays, approved
vacation periods, and periods of illness or approved leaves of absence) to the
business and affairs of the Company and the Bank and shall use his best efforts
to advance the interests of the Company and the Bank.

                                     Page 2
<PAGE>

         Section 4. Cash Compensation

         In consideration for the services to be rendered by Mr. Sabatini
hereunder, the Company and the Bank shall together pay to him a salary at an
initial annual rate of TWO HUNDRED TWENTY FIVE THOUSAND DOLLARS ($225,000),
payable in approximately equal installments in accordance with the Company's and
Bank's customary payroll practices for senior officers. On each Anniversary Date
occurring during the Employment Period, Mr. Sabatini's annual rate of salary
shall be reviewed and increased as determined by the Chairman of the Board,
President and Chief Executive Officer of the Company and/or the Bank. In
addition to salary, Mr. Sabatini may receive other cash compensation from the
Company or the Bank for services hereunder at such times, in such amounts and on
such terms and conditions as determined by the Chairman of the Board, President
and Chief Executive Officer of the Company and/or the Bank from time to time.

         The Company and the Bank agree to pay to Mr. Sabatini a minimum annual
bonus of 1.0 percent, or a percent as otherwise provided on mutual agreement
between the parties, to be computed based upon the net profits realized by the
consolidated earnings of the Company and the Bank and their affiliates in
accordance with the Executive Compensation Plan which has been adopted by the
Board.

         Mr. Sabatini shall be granted stock options by the Company of no less
than 48,426 shares each year during the term of this Agreement under the
Company's Employee Stock Option Plans as may be established by the Company, such
stock options to be adjusted for stock dividends and stock splits after the date
of this Agreement by the Company during the term of this Agreement. Upon the
exercise of options with existing owned stock, additional options to purchase
stock will be issued to Mr. Sabatini in an amount equivalent to such Company
stock utilized in the exercise. In addition, if Mr. Sabatini sells existing
owned stock or stock acquired as a result of such exercise of options to pay
income taxes as a result of the exercise of options or sells stock acquired upon
exercise of options ("cashless exercise"), Mr. Sabatini shall be awarded new
options to purchase Company stock equivalent to the number of shares of Company
stock sold under the circumstances described in this sentence.

         The foregoing salary shall be in addition to the monthly Board fees
presently paid to Mr. Sabatini or as hereafter provided by the Boards or any
Board of Directors of an affiliate of the Company or the Bank.

         Mr. Sabatini, at his option, shall be allowed to defer any portion of
his cash compensation in accordance with any plan approved by the Company or the
Bank.

                                     Page 3
<PAGE>

         Section 5. Insurance

         If Mr. Sabatini should become disabled during the term of this
Agreement, the Company and the Bank will compensate Mr. Sabatini for the
difference between any disability insurance, the premiums for which are paid by
the Company and the Bank, and Mr. Sabatini's full salary for the balance of the
term of this Agreement and thereafter for a period of six months after the
termination of this Agreement. Full fringe benefits will continue through the
earlier of (i) the balance of the term of this Agreement or (ii) the period of
Mr. Sabatini's disability.

         In accordance with the foregoing, the Company and/or the Bank will
maintain and pay the premiums for the following life insurance policy on the
life of Mr. Sabatini: Universal Life Policy No. 00122102 of Security Mutual Life
Insurance Company in the amount of $1,000,000. The beneficiaries under the
foregoing policy of insurance shall be designated by Mr. Sabatini.

         Section 6. Employee Benefit Plans and Programs

         During the Employment Period, Mr. Sabatini shall be treated as an
employee of the Company and the Bank and shall be entitled to participate in and
receive benefits under any and all qualified or non-qualified retirement,
pension, savings, profit-sharing or stock bonus plans, any and all group life,
health (including hospitalization, medical and major medical), dental, accident
and long-term disability insurance plans, and any other employee benefit and
compensation plans (including but not limited to, any incentive compensation
plans or programs, stock option and appreciation rights plans and restricted
stock plans) as may from time to time be maintained by, or cover employees of,
the Company or the Bank, in accordance with the terms and conditions of such
employee benefit plans and programs and compensation plans and programs which
are consistent with the Company's and the Bank's customary practices.

         Section 7. Indemnification and Insurance

         (a) During the Employment Period and for a period of six (6) years
thereafter, the Company or the Bank shall cause Mr. Sabatini to be covered by
and named as an insured under any policy or contract of insurance obtained by it
to insure its directors and officers against personal liability for acts or
omissions in connection with service as an officer or director of the Company or
the Bank or service in other capacities at the request of the Company or the
Bank. The coverage provided to Mr. Sabatini pursuant to this Section 7 shall be
of the same scope and on the same terms and conditions as the coverage (if any)
provided to other officers or directors of the Company and the Bank.

                                     Page 4
<PAGE>

         (b) To the maximum extent permitted under applicable law, during the
Employment Period and for a period of six (6) years thereafter, the Company and
the Bank shall indemnify Mr. Sabatini against and hold him harmless from any
costs, liabilities, losses and expenses to the fullest extent and on the most
favorable terms and conditions that similar indemnification is offered to any
director or officer of the Company, the Bank or any subsidiary or affiliate
thereof.

         Section 8. Outside Activities

         Mr. Sabatini may serve as a member of a board of directors of such
business, community and charitable organizations as he may disclose to and as
may be approved by the Chairman of the Board, President and Chief Executive
Officer of the Company and/or the Bank, which approval shall not be unreasonably
withheld; provided, however, that such service shall not materially interfere
with the performance of his duties under this Agreement. Mr. Sabatini may also
engage in personal business and investment activities which do not materially
interfere with the performance of his duties hereunder; provided, however, that
such activities are not prohibited under any code of conduct or investment or
securities trading policy established by the Company and/or Bank and generally
applicable to all similarly situated executives. Mr. Sabatini may also serve as
an officer or director of any subsidiary of the Company or the Bank. If Mr.
Sabatini is discharged or suspended, or is subject to any regulatory prohibition
or restriction with respect to participation in the affairs of the Company or
the Bank, he shall continue to perform services for the Company and the Bank in
accordance with this Agreement but shall not directly or indirectly provide
services to or participate in the affairs of the Company and the Bank in a
manner inconsistent with the terms of such discharge or suspension or any
applicable regulatory order.

         Section 9. Working Facilities and Expenses

         Mr. Sabatini's principal place of employment shall be at the Company's
and the Bank's executive offices at the address first above written, or at such
other location at which the Company or the Bank shall maintain its principal
executive offices, or at such other location as the Company and the Bank and Mr.
Sabatini may mutually agree upon. The Company or the Bank shall provide Mr.
Sabatini at his principal place of employment with a private office, secretarial
services, an automobile, and other support services and facilities suitable to
his position with the Company and the Bank and necessary or appropriate in
connection with the performance of his assigned duties under this Agreement. The
Company or the Bank shall provide to Mr. Sabatini for his exclusive use an
automobile owned or leased by the Company or the Bank appropriate to his
position, to be used in the performance of his duties hereunder, including
commuting to and from his personal residence. The Company or the Bank shall
reimburse Mr. Sabatini for his ordinary and necessary business expenses,
including, without limitation, all expenses associated with his business use of
the aforementioned automobile, fees for memberships in such clubs and
organizations as Mr. Sabatini and the Company or the Bank shall mutually agree
are necessary and appropriate for business purposes, and his travel and
entertainment expenses incurred in connection with the performance of his duties
under this Agreement, in each case upon presentation to the Company or the Bank
of an itemized account of such expenses in such form as the Company or the Bank
may reasonably require.

                                     Page 5
<PAGE>

         The Company and the Bank shall specifically pay the annual membership
fees of one Country Club membership for Mr. Sabatini.

         Section 10. Vacation

         Mr. Sabatini shall be entitled annually to vacation time of five (5)
weeks in total and two (2) personal days, or any additional vacation and
personal time agreed to by the parties or permitted by Company or Bank policy.

         Section 11. Termination of Employment with Severance Benefits

         (a) Mr. Sabatini shall be entitled to the severance benefits described
herein in the event that his employment with the Company or the Bank terminates
during the Employment Period under any of the following circumstances:

         (i) Mr. Sabatini's voluntary resignation from employment with the
Company and the Bank within ninety (90) days following:

            (A) the failure of the Boards to appoint or re-appoint or elect or
re-elect Mr. Sabatini to the office of Senior Executive Vice President, Chief
Financial Officer and Assistant Secretary (or a more senior office) of the
Company and the Bank;

            (B) the expiration of a thirty (30) day period following the date on
which Mr. Sabatini gives written notice to the Company and/or the Bank of its
material failure, whether by amendment of the Company's or the Bank's
Organization Certificate or By-laws, action of the Boards or the Company's or
the Bank's stockholders or otherwise, to vest in Mr. Sabatini the functions,
duties, or responsibilities prescribed in Section 3 of this Agreement, unless,
during such thirty (30) day period, the Company and/or the Bank cures such
failure in a manner determined by Mr. Sabatini and the Boards to be
satisfactory; or

            (C) the expiration of a thirty (30) day period following the date on
which Mr. Sabatini gives written notice to the Company and/or the Bank of its
material breach of any term, condition or covenant contained in this Agreement
(including, without limitation any reduction of Mr. Sabatini's rate of base
salary in effect from time to time and any change in the terms and conditions of
any compensation or benefit program in which Mr. Sabatini participates which,
either individually or together with other changes, has a material adverse
effect on the aggregate value of his total compensation package), unless, during
such thirty (30) day period, the Company and/or the Bank cures such failure in a
manner determined by Mr. Sabatini and the Boards to be satisfactory; or

                                     Page 6
<PAGE>

         (ii) Mr. Sabatini's death; or

         (iii) subject to the provisions of Section 12, the termination of Mr.
Sabatini's employment with the Company or the Bank for any other reason not
described in Section 11(a).

         (b) Upon the termination of Mr. Sabatini's employment with the Company
and/or the Bank under circumstances described in Section 11(a) of this
Agreement, the Company or the Bank shall pay and provide to Mr. Sabatini (or, in
the event of his death, to his estate):

         (i) his earned but unpaid compensation (including, without limitation,
all items which constitute wages under Section 190.1 of the New York Labor Law
and the payment of which is not otherwise provided for under this Section 11(b))
as of the date of the termination of his employment with the Company and the
Bank, such payment to be made at the time and in the manner prescribed by law
applicable to the payment of wages but in no event later than thirty (30) days
after termination of employment;

         (ii) the benefits, if any, to which he is entitled as a former employee
under the employee benefit plans and programs and compensation plans and
programs maintained for the benefit of the Company's and the Bank's officers and
employees;

         (iii) continued group life, health (including hospitalization, medical
and major medical and the insurance provided under Section 5), dental, accident
and long term disability insurance benefits, in addition to that provided
pursuant to Section 11(b)(ii), and after taking into account the coverage
provided by any subsequent employer, if and to the extent necessary to provide
for Mr. Sabatini, for the Remaining Unexpired Employment Period, coverage
equivalent to the coverage to which he would have been entitled under such plans
(as in effect on the date of his termination of employment, or, if his
termination of employment occurs after a Change of Control, on the date of such
Change of Control, whichever benefits are greater), if he had continued working
for the Company and the Bank during the Remaining Unexpired Employment Period at
the highest annual rate of compensation achieved during that portion of the
Employment Period which is prior to Mr. Sabatini's termination of employment
with the Company or the Bank;

                                     Page 7
<PAGE>

         (iv) within thirty (30) days following his termination of employment
with the Company and/or the Bank, a lump sum payment, in an amount equal to the
present value of the salary that Mr. Sabatini would have earned if he had
continued working for the Company and the Bank for one year at the highest
annual rate of salary achieved during that portion of the Employment Period
which is prior to Mr. Sabatini's termination of employment with the Company and
the Bank, where such present value is to be determined using a discount rate
equal to the applicable short-term federal rate prescribed under Section 1274(d)
of the Internal Revenue Code of 1986 ("Code"), compounded using the compounding
period corresponding to the Company's and the Bank's regular payroll periods for
its officers, such lump sum to be paid in lieu of all other payments of salary
provided for under this Agreement in respect of the period following any such
termination. At the option of Mr. Sabatini, such payments may be made in equal
monthly installments over a period of not less than three years, nor more than
five years, in which case such payments will not be discounted;

         (v) within thirty (30) days following his termination of employment
with the Company and/or the Bank, a lump sum payment in an amount equal to the
present value of the additional employer contributions to which he would have
been entitled under any and all qualified and non-qualified defined contribution
plans maintained by, or covering employees of, the Company and the Bank, if he
were 100% vested thereunder and had continued working for the Company and the
Bank, during the Remaining Unexpired Employment Period at the highest annual
rate of compensation achieved during that portion of the Employment Period which
is prior to Mr. Sabatini's termination of employment with the Company or the
Bank, and making the maximum amount of employee contributions, if any, required
under such plan or plans, such present value to be determined on the basis of a
discount rate, compounded using the compounding period that corresponds to the
frequency with which employer contributions are made to the relevant plan, equal
to the applicable PBGC Rate. At the option of Mr. Sabatini, such payments may be
made in equal monthly installments over a period of not less than three, nor
more than five years, in which case such payments will not be discounted;

                                     Page 8
<PAGE>

         (vi) the payment that would have been made to Mr. Sabatini under any
cash bonus or long-term or short-term cash incentive compensation plan
maintained by, or covering employees of, the Company or the Bank, if he had
continued working for the Company or the Bank during the Remaining Unexpired
Employment Period and had earned the maximum bonus or incentive award in each
calendar year that ends during the Remaining Unexpired Employment Period, such
payments to be equal to the product of:

            (A) the maximum percentage rate at which an award was ever available
to Mr. Sabatini under such incentive compensation plan, multiplied by

            (B) net income of the Company for the most recent fiscal year which
is prior to Mr. Sabatini's termination of employment with the Company;

         such payments to be made in a lump sum payment in an amount equal to
the present value of such payments as if made in accordance with Company's
and/or Bank's Executive Bonus Plan, where such present value is to be determined
using a discount rate equal to the applicable short-term federal rate prescribed
under Section 1274(d) of the Code, within thirty (30) days following Mr.
Sabatini's termination of employment. At the option of Mr. Sabatini, such
payments may be made in equal monthly installments over a period of not less
than three, nor more than five years, in which case such payments will not be
discounted;

         (vii) at the election of the Company and the Bank made within thirty
(30) days following his termination of employment with the Company and the Bank,
upon the surrender of stock options or stock appreciation rights issued to Mr.
Sabatini under any stock option and appreciation rights plan or program
maintained by, or covering employees of, the Company and the Bank, a lump sum
payment in an amount equal to the product of:

            (A) the excess of (i) the fair market value of a share of stock of
the same class as the stock subject to the option or appreciation right,
determined as of the date of termination of employment, over (ii) the exercise
price per share for such option or appreciation right, as specified in or under
the relevant plan or program; multiplied by

            (B) the number of shares with respect to which options or
appreciation rights are being surrendered.

         For purposes of this Section 11(b)(vii) and for purposes of determining
Mr. Sabatini's right following his termination of employment with the Company or
Bank to exercise any options or appreciation rights not surrendered pursuant
hereto, Mr. Sabatini shall be deemed fully vested in all options and
appreciation rights under any stock option or appreciation rights plan or
program maintained by, or covering employees of, the Company or Bank, even if he
is not vested under such plan or program, and shall have a period of three
months from the date of termination of employment to exercise such stock options
or appreciation rights.

                                     Page 9
<PAGE>

         (viii) at the election of the Company or the Bank made within thirty
(30) days following Mr. Sabatini's termination of employment with the Company
and the Bank, upon the surrender of any shares awarded to Mr. Sabatini under any
restricted stock plan maintained by, or covering employees of, the Company and
the Bank, a lump sum payment in an amount equal to the product of:

            (A) the fair market value of a share of stock of the same class of
stock granted under such plan, determined as of the date of Mr. Sabatini
termination of employment; multiplied by

            (B) the number of shares which are being surrendered.

         For purposes of this Section 11(b)(viii) and for purposes of
determining Mr. Sabatini's right following his termination of employment with
the Company and the Bank to any stock not surrendered pursuant hereto, Mr.
Sabatini shall be deemed fully vested in all shares awarded under any restricted
stock plan maintained by, or covering employees of, the Company and the Bank,
even if he is not vested under such plan;

         (ix) the title to the car then currently provided to Mr. Sabatini shall
be transferred to Mr. Sabatini.

The Company and the Bank and Mr. Sabatini hereby stipulate that the damages
which may be incurred by Mr. Sabatini following any such termination of
employment are not capable of accurate measurement as of the date first above
written and that the payments and benefits contemplated by this Section 11(b)
constitute reasonable damages under the circumstances and shall be payable
without any requirement of proof of actual damage and without regard to Mr.
Sabatini's efforts, if any, to mitigate damages. The Company and the Bank and
Mr. Sabatini further agree that the Company and the Bank may condition the
payments and benefits (if any) due under Sections 11(b)(iii), (iv), (v), (vi),
and (vii) on the receipt of Mr. Sabatini's resignation from any and all
positions which he holds as an officer, director or committee member with
respect to the Company, the Bank or any subsidiary or affiliate of either of
them.

                                    Page 10
<PAGE>

         Section 12. Termination without Additional Company/Bank Liability

         (a) In the event that Mr. Sabatini employment with the Company and the
Bank shall terminate during the Employment Period on account of:

         (i) the discharge of Mr. Sabatini for "cause," which, for purposes of
this Agreement shall mean: (A) Mr. Sabatini intentionally engages in dishonest
conduct in connection with his performance of services for the Company or the
Bank resulting in his conviction of a felony; (B) Mr. Sabatini is convicted of,
or pleads guilty or nolo contendere to, a felony or any crime involving moral
turpitude; (C) Mr. Sabatini willfully fails or refuses to perform his duties
under this Agreement and fails to cure such breach within sixty (60) days
following written notice thereof from the Company or the Bank; (D) Mr. Sabatini
breaches his fiduciary duties to the Company or the Bank for personal profit; or
(E) Mr. Sabatini's willful breach or violation of any law, rule or regulation
(other than traffic violations or similar offenses), or final cease and desist
order in connection with his performance of services for the Company or the
Bank;

         (ii) Mr. Sabatini's voluntary resignation from employment with the
Company and the Bank for reasons other than those specified in Section 11(a); or

         (iii) a determination that Mr. Sabatini is eligible for long-term
disability benefits under the Company's or Bank's long-term disability insurance
program or, if there is no such program, under the federal Social Security Act;

then the Company and the Bank shall have no further obligations under this
Agreement, other than the payment to Mr. Sabatini (or, in the event of his
death, to his estate) of his earned but unpaid salary as of the date of the
termination of his employment, and the provision of such other benefits, if any
(including but not limited to the benefits contemplated by Sections 5 and 7), to
which he is entitled as a former employee under the employee benefit plans and
programs, compensation plans and programs, and indemnification and insurance
plans and programs maintained by, or covering employees of, the Company or the
Bank.

         (b) For purposes of Section 12(a)(i)(A) or (B), no act or failure to
act, on the part of Mr. Sabatini, shall be considered "willful" unless it is
done, or omitted to be done, by Mr. Sabatini in bad faith or without reasonable
belief that Mr. Sabatini's action or omission was in the best interests of the
Company or the Bank. Any act, or failure to act, based upon authority given
pursuant to a resolution duly adopted by the Boards or based upon the written
advice of counsel for the Company or the Bank shall be conclusively presumed to
be done, or omitted to be done, by Mr. Sabatini in good faith and in the best
interests of the Company or the Bank. The cessation of employment by Mr.
Sabatini shall not be deemed to be for "cause" within the meaning of Section
12(a)(i) unless and until there shall have been delivered to Mr. Sabatini a copy
of a resolution duly adopted by the affirmative vote of three-fourths of the
non-employee members of the Boards at a meeting of the Boards called and held
for such purpose (after reasonable notice is provided to Mr. Sabatini and Mr.
Sabatini is given an opportunity, together with counsel, to be heard before the
Boards), finding that, in the good faith opinion of the Boards, Mr. Sabatini is
guilty of the conduct described in Section 12(a)(i) above, and specifying the
particulars thereof in detail.

                                    Page 11
<PAGE>

         Section 13. Termination Upon or Following a Change of Control

         (a) A change of control of the Company or the Bank ("Change of
Control") shall be deemed to have occurred upon the happening of any of the
following events:

         (i) approval by the stockholders of the Company or the Bank of a
transaction that would result in the reorganization, merger or consolidation of
the Company or the Bank, respectively, with one or more other persons, other
than a transaction following which:

            (A) at least 51% of the equity ownership interests of the entity
resulting from such transaction are beneficially owned (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) in substantially the same
relative proportions by persons who, immediately prior to such transaction,
beneficially owned (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) at least 51% of the outstanding equity ownership interests in the
Company or the Bank; and

            (B) at least 51% of the securities entitled to vote generally in the
election of directors of the entity resulting from such transaction are
beneficially owned (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) in substantially the same relative proportions by persons who,
immediately prior to such transaction, beneficially owned (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) at least 51% of the securities
entitled to vote generally in the election of directors of the Company or the
Bank;

         (ii) the acquisition of all or substantially all of the assets of the
Company or the Bank or beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of the outstanding securities
of the Company or the Bank entitled to vote generally in the election of
directors by any person or by any persons acting in concert, or approval by the
stockholders of the Company or the Bank of any transaction which would result in
such an acquisition;

                                    Page 12
<PAGE>

         (iii) a complete liquidation or dissolution of the Company or the Bank,
or approval by the stockholders of the Company or the Bank of a plan for such
liquidation or dissolution;

         (iv) the occurrence of any event if, immediately following such event,
at least 50% of the members of the board of directors of the Company or the Bank
do not belong to any of the following groups:

            (A) individuals who were members of the board of directors of the
Company or the Bank on the date of this Agreement; or

            (B) individuals who first became members of the board of directors
of the Company or the Bank after the date of this Agreement either:

              (I) upon election to serve as a member of the board of directors
of the Company or the Bank by affirmative vote of three-quarters of the members
of such board, in office at the time of such first election; or

              (II) upon election by the stockholders to serve as a member of the
board of directors of the Company or the Bank, but only if nominated for
election by affirmative vote of three-quarters of the members of the board of
directors of the Company or the Bank, or of a nominating committee thereof, in
office at the time of such first nomination;

         provided, however, that such individual's election or nomination did
not result from an actual or threatened election contest (within the meaning of
Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other
actual or threatened solicitation of proxies or consents (within the meaning of
Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) other than by
or on behalf of the Board of the Company or the Bank.

         In no event, however, shall a Change of Control be deemed to have
occurred as a result of any acquisition of securities or assets of the Company,
the Bank, or a subsidiary of either of them, by the Company, the Bank, or a
subsidiary of either of them, or by any employee benefit plan maintained by any
of them. For purposes of this Section 13(a), the term "person" shall have the
meaning assigned to it under Sections 13(d)(3) or 14(d)(2) of the Exchange Act.

         (b) In the event of a Change of Control, Mr. Sabatini shall be entitled
to the payments and benefits contemplated by Section 11(b), provided, however,
that with respect to any such benefits or payments to be made thereunder, the
benefits or payments contemplated by Section 11(b) will be calculated as if the
remaining Unexpired Employment Period and the salary multiple in Section
11(b)(iv) are each equal to three years in the event of his termination of
employment with the Company or the Bank under any of the circumstances described
in Section 11(a) of this Agreement or under any of the following circumstances:

                                    Page 13
<PAGE>

         (i) resignation, voluntary or otherwise, by Mr. Sabatini at any time
during the Employment Period following his demotion, loss of title, office or
significant authority or responsibility, or following any reduction in any
element of his package of compensation and benefits;

         (ii) resignation, voluntary or otherwise, by Mr. Sabatini at any time
during the Employment Period following any relocation of his principal place of
employment or any change in working conditions at such principal place of
employment which Mr. Sabatini, in his reasonable discretion, determines to be
embarrassing, derogatory or otherwise adverse;

         (iii) resignation, voluntary or otherwise, by Mr. Sabatini at any time
during the Employment Period following the failure of any successor to the
Company or the Bank in the Change of Control to include Mr. Sabatini in any
compensation or benefit program maintained by it or covering any of its
executive officers, unless Mr. Sabatini is already covered by a substantially
similar plan of the Company which is at least as favorable to him; or

         (iv) resignation, voluntary or otherwise, for any other reason
whatsoever following the effective date of the Change of Control.

                                    Page 14
<PAGE>

         Section 14. Tax Indemnification

         (a) If Mr. Sabatini's employment terminates under circumstances
entitling him (or in the event of his death, his estate) to the payments or
benefits under Section 11(b), the Company or the Bank shall pay to Mr. Sabatini
(or in the event of his death, his estate) an additional amount intended to
indemnify him against the financial effects of the excise tax imposed on excess
parachute payments under section 280G and 4999 of the Code (the "Tax Indemnity
Payment"). The Tax Indemnity Payment shall be determined under the following
formula:

         X =                                 E x P
              1 - [(FI x (1 - SLI)) + SLI + E + M]

         where

         E =  the rate at which the excise tax is assessed under Section 4999 of
              the Code;

         P =  the amount with respect to which such excise tax is assessed,
              determined without regard to this Section 14;

         FI = the highest marginal rate of income tax applicable to Mr. Sabatini
              under the Code for the taxable year in question;

         SLI = the sum of the highest marginal rates of income tax applicable to
               Mr. Sabatini under all applicable state and local laws for the
               taxable year in question; an

         M =  the highest marginal rate of Medicare tax applicable to Mr.
              Sabatini under the Code for the taxable year in question.

Such computation shall be made at the expense of the Company or the Bank by an
attorney or a firm of independent certified public accountants selected by Mr.
Sabatini and reasonably satisfactory to the Company (the "Tax Advisor") and
shall be based on the following assumptions: (i) that a change in ownership, a
change in effective ownership or control, or a change in the ownership of a
substantial portion of the assets, of the Bank or the Company has occurred
within the meaning of section 280G of the Code (a "280G Change of Control");
(ii) that all direct or indirect payments made to or benefits conferred upon Mr.
Sabatini on account of his termination of employment are "parachute payments"
within the meaning of section 280G of the Code; and (iii) that no portion of
such payments is reasonable compensation for services rendered prior to Mr.
Sabatini's termination of employment.

                                    Page 15
<PAGE>

         (b) With respect to any payment that is presumed to be a parachute
payment for purposes of section 280G of the Code, the Tax Indemnity Payment
shall be made to Mr. Sabatini on the earlier of the date the Company, the Bank
or any direct or indirect subsidiary or affiliate of the Company or the Bank is
required to withhold such tax or the date the tax is required to be paid by Mr.
Sabatini, unless, prior to such date, the Company or the Bank delivers to Mr.
Sabatini the written opinion, in form and substance reasonably satisfactory to
him, of the Tax Advisor or of an attorney or firm of independent certified
public accountants selected by the Company or the Bank and reasonably
satisfactory to Mr. Sabatini, to the effect that Mr. Sabatini has a reasonable
basis on which to conclude that (i) no 280G Change in Control has occurred, or
(ii) all or part of the payment or benefit in question is not a parachute
payment for purposes of section 280G of the Code, or (iii) all or a part of such
payment or benefit constitutes reasonable compensation for services rendered
prior to the 280G Change of Control, or (iv) for some other reason which shall
be set forth in detail in such letter, no excise tax is due under section 4999
of the Code with respect to such payment or benefit (the "Opinion Letter"). If
the Company or the Bank delivers an Opinion Letter, the Tax Advisor shall
recompute, and the Company or the Bank shall make, the Tax Indemnity Payment in
reliance on the information contained in the Opinion Letter.

         (c) In the event that Mr. Sabatini's liability for the excise tax under
section 4999 of the Code for a taxable year is subsequently determined to be
different than the amount with respect to which the Tax Indemnity Payment is
made, Mr. Sabatini or the Company or the Bank, as the case may be, shall pay to
the other party at the time that the amount of such excise tax is finally
determined, an appropriate amount, plus interest, such that the payment made
under section 16(b), when increased by the amount of the payment made by the
Company or the Bank under this section 16(c) or decreased by the amount of the
payment made by Mr. Sabatini under this section 16(c), equals the amount that
should have properly been paid to Mr. Sabatini under section 16(a). The interest
paid to the Company under this section 16(c) shall be determined at the rate
provided under section 1274(b)(2)(B) of the Code. The payment made to Mr.
Sabatini shall include such amount of interest as is necessary to satisfy any
interest assessment made by the Internal Revenue Service and an additional
amount equal to any monetary penalties assessed by the Internal Revenue Service
on account of an underpayment of the excise tax. To confirm that the proper
amount, if any, was paid to Mr. Sabatini under this section 16, Mr. Sabatini
shall furnish to the Company or the Bank a copy of each tax return which
reflects a liability for an excise tax, at least 20 days before the date on
which such return is required to be filed with the Internal Revenue Service.
Nothing in this Agreement shall give the Company or the Bank any right to
control or otherwise participate in any action, suit or proceeding to which Mr.
Sabatini is a party as a result of positions taken on his federal income tax
return with respect to his liability for excise taxes under section 4999 of the
Code.

         Section 15. Confidentiality

         Unless he obtains the prior written consent of the Company or the Bank,
Mr. Sabatini shall keep confidential and shall refrain from using for the
benefit of himself, or any person or entity other than the Company or the Bank
or any entity which is a subsidiary of the Company or the Bank or of which the
Company is a subsidiary, any material document or information obtained from the
Company or the Bank, or from its parent or subsidiaries, in the course of his
employment with any of them concerning their properties, operations or business
(unless such document or information is readily ascertainable from public or
published information or trade sources or has otherwise been made available to
the public through no fault of his own) until the same ceases to be material (or
becomes so ascertainable or available); provided, however, that nothing in this
Section 15 shall prevent Mr. Sabatini, with or without the Company's or Bank's
consent, from participating in or disclosing documents or information in
connection with any judicial or administrative investigation, inquiry or
proceeding to the extent that such participation or disclosure is required under
applicable law.

                                    Page 16
<PAGE>

         Section  16. No Effect on Employee Benefit Plans or Programs

         The termination of Mr. Sabatini's employment during the term of this
Agreement or thereafter, whether by the Company or the Bank or by Mr. Sabatini,
shall have no effect on the rights and obligations of the parties hereto under
the Company's or Bank's qualified or non-qualified retirement, pension, savings,
thrift, profit-sharing or stock bonus plans, group life, health (including
hospitalization, medical and major medical), dental, accident and long term
disability insurance plans or such other employee benefit plans or programs, or
compensation plans or programs, as may be maintained by, or cover employees of,
the Company or the Bank from time to time.

         Section 17. Successors and Assigns

         This Agreement will inure to the benefit of and be binding upon Mr.
Sabatini, his legal representatives and testate or intestate distributees, and
the Company and the Bank, and its successors and assigns, including any
successor by merger or consolidation or a statutory receiver or any other person
or firm or corporation to which all or substantially all of the assets and
business of the Company or the Bank may be sold or otherwise transferred.
Failure of the Company and the Bank to obtain from any successor its express
written assumption of the Company's and the Bank's obligations hereunder at
least sixty (60) days in advance of the scheduled effective date of any such
succession shall be deemed a material breach of this Agreement.

         Section  18. Notices

         Any communication required or permitted to be given under this
Agreement, including any notice, direction, designation, consent, instruction
objection or waiver, shall be in writing and shall be deemed to have been given
at such time as it is delivered personally, or five (5) days after mailing if
mailed, postage prepaid, by registered or certified mail, return receipt
requested, addressed to such party at the address listed below or at such other
address as one such party may by written notice specify to the other party:

                                    Page 17
<PAGE>

     If to Mr. Sabatini:

          Mr. Steven T. Sabatini
          21 Indian Hill Road
          Warwick, New York 10990

     If to the Company or the Bank:

          U.S.B. Holding Co., Inc.
          Union State Bank
          100 Dutch Hill Road
          Orangeburg, New York 10962

          Attention: Corporate Secretary

         Section 19. Severability

         A determination that any provision of this Agreement is invalid or
unenforceable shall not affect the validity or enforceability of any other
provision hereof.

         Section  20. Waiver

         Failure to insist upon strict compliance with any of the terms,
covenants or conditions hereof shall not be deemed a waiver of such term,
covenant, or condition. A waiver of any provision of this Agreement must be made
in writing, designated as a waiver, and signed by the party against whom its
enforcement is sought. Any waiver or relinquishment of any right or power
hereunder at any one or more times shall not be deemed a waiver or
relinquishment of such right or power at any other time or times.

         Section 21. Counterparts

         This Agreement may be executed in two (2) or more counterparts, each of
which shall be deemed an original, and all of which shall constitute one and the
same Agreement.

         Section 22. Governing Law

         This Agreement shall be governed by and construed and enforced in
accordance with the federal laws of the United States and, to the extent that
federal law is inapplicable, in accordance with the laws of the State of New
York applicable to contracts entered into and to be performed entirely within
the State of New York.

         Section 23. Headings and Construction

         The headings of sections in this Agreement are for the convenience of
reference only and are not intended to qualify the meaning of any section. Any
reference to a section number shall refer to a section of this Agreement, unless
otherwise stated.

         Section 24. Entire Agreement; Modifications

         This instrument contains the entire agreement of the parties relating
to the subject matter hereof, and supersedes in its entirety any and all prior
agreements, understandings or representations relating to the subject matter
hereof. No modifications of this Agreement shall be valid unless made in writing
and signed by the parties hereto.

                                    Page 18
<PAGE>

         Section 25. Non-duplication

         In the event that Mr. Sabatini performs services for the Company, the
Bank or an other direct or indirect subsidiary of the Company or the Bank, any
compensation or benefits provided to Mr. Sabatini by such other employer shall
be applied to offset the obligations of the Company and the Bank hereunder, it
being intended that this Agreement set forth the aggregate compensation and
benefits payable to Mr. Sabatini for all services to the Company, the Bank, and
all of its direct or indirect subsidiaries.

         In Witness Whereof, the Company and the Bank have caused this Agreement
to be executed by their duly authorized officers and Mr. Sabatini has hereunto
set his hand, all as of the day and year first above written.

                               STEVEN T. SABATINI

ATTEST:                     U.S.B. HOLDING CO., INC.

By                                                                       By
     Assistant Secretary                Name: Thomas E. Hales
                                        Title: Chairman, President & C.E.O.

                                UNION STATE BANK

By                                                                       By
     Assistant Secretary                Name: Thomas E. Hales
                                        Title: Chairman, President & C.E.O.

                                    Page 19Prepared and filed by St Ives Burrups

Exhibit 10.1

Savient Pharmaceuticals, Inc.

 

 

Employment Agreement 

for 

Philip K. Yachmetz 

  Senior
  Vice President, General Counsel & Corporate Secretary

May 27, 2004

	Contents	 
	
	

	 	 
	Article 1. Term of Employment	1
	 	 
	Article 2. Definitions	1
	 	 
	Article 3. Position and Responsibilities	4
	 	 
	Article 4. Standard of Care	4
	 	 
	Article 5. Compensation	5
	 	 
	Article 6. Expenses	6
	 	 
	Article 7. Employment Terminations	6
	 	 
	Article 8. Change in Control	12
	 	 
	Article 9. Assignment	14
	 	 
	Article 10. Legal Fees and Notice	15
	 	 
	Article 11. Confidentiality and Noncompetition	15
	 	 
	Article 12. Outplacement Assistance	16
	 	 
	Article 13. Miscellaneous	16
	 	 
	Article 14. Governing Law	17
	 	 

May 27, 2004

Employment Agreement 

This Agreement is made, entered into, and is effective as of the Effective Date, by and between the Company and the Executive.

Article 1. Term of Employment 

	1.1	The Company
        hereby agrees to employ the Executive and the Executive hereby agrees
        to serve the Company in accordance with the terms and conditions set
        forth herein, for a period of three (3) years, commencing as of the Effective
    Date. 
	 	 
	1.2	Commencing
        on
the third (3rd)
anniversary of the Effective Date, and each anniversary thereafter, the term
of this Agreement shall automatically be extended for one (1) additional year,
unless at least ninety (90) days prior to such anniversary, the Company or the
Executive shall have given notice in accordance with Section 10.2 hereof that
it or he does not wish to extend the term of the Agreement. 

Article 2. Definitions 

	2.1 	“Agreement” means
    this Employment Agreement. 
	 	 
	2.2 	“Annual
          Bonus” means
          the annual bonus to be paid to the Executive in accordance with the
    Company’s annual bonus program as described in Section 5.3 herein. 
	 	 
	2.3	“Base
          Salary” means
          the salary of record paid to the Executive as annual salary, pursuant
          to Section 5.2, excluding amounts received under incentive or other
    bonus plans, whether or not deferred. 
	 	 
	2.4	“Beneficial
          Owner” shall
          have the meaning ascribed to such term in Rule 13d-3 of the General
    Rules and Regulations under the Securities Exchange Act.  
	 	 
	2.5 	“Beneficiary” means
        the persons or entities designated or deemed designated by the Executive
    pursuant to Section 13.6 herein. 
	 	 
	2.6	“Board” or “Board
          of Directors” means
    the Board of Directors of the Company. 
	 	 
	2.7	“Cause” means: 
	 	 	 
	 	(a)	Executive
        materially breached any of the terms of this Agreement and failed to
        correct. such breach within fifteen (15) days after written notice thereof
    from the Company;
	 	 	 
	 	(b)	Executive
        has been convicted of a criminal offense involving a felony giving rise
    to a sentence of imprisonment;
	 	 	 
	 	(c)	Executive
        has breached a fiduciary trust for the purpose of gaining a personal
    profit, including, without limitation, embezzlement; or

1

	 	(d)	Despite
      adequate warnings, Executive intentionally and willfully failed to perform
      reasonably assigned duties within the normal and customary scope of the
      Position.

	 	 	 
	2.8	“Change
      in Control” or “CIC” of
      the Company shall be deemed to have occurred as of the first day that any
      one or more of the following conditions is satisfied:
	 	 	 
	 	(a)	Any
      consolidation or merger in which the Company is not the continuing or surviving
      entity or pursuant to which shares of the Common Stock would be converted
      into cash, securities, or other property, other than (i) a merger of the
      Company in which the holders of the Common Stock immediately prior to the
      merger have the same proportionate ownership of common stock of the surviving
      corporation immediately after the merger, or (ii) a consolidation or merger
      which would result in the voting securities of the Company outstanding immediately
      prior thereto continuing to represent (by being converted into voting securitie
      s of the continuing or surviving entity) more than 50% of the combined voting
      power of the voting securities of the continuing or surviving entity immediately
      after such consolidation or merger and which would result in the members
      of the Board immediately prior to such consolidation or merger (including
      for this purpose any individuals whose election or nomination for election
      was approved by a vote of at least two-thirds of such members) constituting
      a majority of the Board (or equivalent governing body) of the continuing
      or surviving entity immediately after such consolidation or merger;
	 	 	 
	 	(b)	Any
      sale, lease, exchange, or other transfer (in one transaction or a series
      of related transactions) of all or substantially all the Company’s
      assets;
	 	 	 
	 	(c)	The
      Company’s stockholders approve any plan or proposal for the liquidation
      or dissolution of the Company;
	 	 	 
	 	(d)	Any
      Person shall become the Beneficial Owner of forty (40) percent or more of
      the Common Stock other than pursuant to a plan or arrangement entered into
      by such Person and the Company; or
	 	 	 
	 	(e)	During
      any period of two consecutive years, individuals who at the beginning of
      such period constitute the entire Board of Directors shall cease for any
      reason to constitute a majority of the Board unless the election or nomination
      for election by the Company’s stockholders of each new director was
      approved by a vote of at lest two-thirds of the directors then still in
      office who were directors at the beginning of the period.
	 	 	 
	2.9	“CIC
      Severance Benefits” means
      the payment of severance compensation associated with a Qualifying Termination
      occurring subsequent to a Change in Control, as described in Section 8.3.
	 	 	 
	2.10	“Code”
      means
      the United States Internal Revenue Code of 1986, as amended.
	 	 	 
	2.11	“Common
      Stock” means
      the common stock of the Company, $.01 par value.
	 	 	 
	2.12	“Compensation
      Committee” means
      the Compensation and Stock Option Committee of the Board, or any other committee
      appointed by the Board to perform the functions of such committee.
	 	 	 
	2.13	“Company”
      means
      Savient Pharmaceuticals, Inc., a Delaware corporation, or any Successor
      Company thereto as provided in Section 9.1 herein. 

2

	2.14 	“Director”
      means any individual who is a member of the Board of Directors of the Company.
       
	 	 	 	 
	2.15 
      	 “Disability”
      or “Disabled”
      means for all purposes of this Agreement, the meaning ascribed to such term
      in the Company’s long-term disability plan, or in any successor to
      such plan.  
	 	 	 	 
	2.16 
      	 “Effective
      Date”
      means May
      28, 2004.
       
	 	 	 	 
	2.17 
      	 “Effective
      Date of Termination” means
      the date on which a termination of the Executive’s employment occurs.
       
	 	 	 	 
	2.18 
      	 “Employment
      Date” means
      May
      28, 2004.
       
	 	 	 	 
	2.19 	 “Executive”
      means
      Philip K. Yachmetz who, as of the Effective Date, resides at 4 Valley Forge
      Road, Oakland, New Jersey 07436-2330.  
	 	 	 	 
	2.20 
      	 “Good
      Reason” shall
      mean, without the Executive’s express written consent, the occurrence
      of any one or more of the following:  
	 	 	 	 
	 	(a)	Reducing
      the Executive’s Base Salary;
	 	 	 	 
	 	(b)	A
      material diminution of the scope or authority of Executive’s position,
      duties or responsibilities as in effect for the preceding six (6) months;
	 	 	 	 
	 	(c)	Failing
      to maintain Executive’s amount of benefits under or relative level
      of participation in the Company’s employee benefit or retirement plans,
      policies, practices, or arrangements in which the Executive participates
      as of the Effective Date of this Agreement, including any perquisite program;
      provided, however, that any such change that applies consistently to all
      executive officers of the Company or is required by applicable law shall
      not be deemed to constitute Good Reason;
	 	 	 	 
	 	(d)	Failing
      to require any Successor Company to assume and agree to perform the
      Company’s
      obligations hereunder; 
	 	 	 	 
	 	(e)	The
      occurrence of any one or more of the following events on or after the announcement
      of the transaction which leads to the CIC and up to twenty-four (24) calendar
      months following the effective date of a CIC:
	 	 	 	 
	 	 	(1)	Requiring
      Executive to be based at a location that requires the Executive to travel
      at least an additional thirty-five (35) miles per day;
	 	 	 	 
	 	 	(2)	Requiring
      Executive to report to a position which is at a lower level than the highest
      leve l to which Executive reported within the six (6) months prior to the
      CIC;
	 	 	 	 
	 	 	(3)	Demoting
      Executive to a level lower than Executive’s level in the Company as
      of the Effective Date; or
	 	 	 	 
	 	 	(4)	A material
      diminution of the scope or authority of Executive’s position, duties
      or responsibilities as in effect immediately prior to the effective date
      of a CIC.
	 	 	 	 
	2.21	 “Notice
           of Termination” means
            a written notice
      which
       shall indicate the specific termination provision in this Agreement relied

      upon, and shall set forth in reasonable detail the
       facts and circumstances claimed to provide a basis for termination of
      the
      Executive’s employment under the provisions so indicated, and, where
       applicable, shall specifically include notice pursuant to Section 1.2
      that
      Company has elected not to renew this Agreement. 

 
  3 

	2.22 	 “Person”
      shall
      have the meaning ascribed to such term in Section 3(a)(9) of the Securities
      Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group”
      as defined in Section 13(d) thereof.  
	 	 	 
	2.23 
      	 “Position”
      shall have the meeting ascribed to it in Section3.1.  
	 	 	 
	2.24 	 “Qualifying
      Termination”
      means any of the events described in Section 8.2 herein, the occurrence
      of which triggers the payment of CIC Severance Benefits hereunder.
       
       
	 	 	 
	2.25	 “Securities
      Exchange Act” means
      the United States Securities Exchange Act of 1934, as amended.  
	 	 	 
	2.26	 “Service
      Multiple” shall
      have the meaning ascribed to it in Section 7.4(c).  
	 	 	 
	2.27	 “Severance
      Benefits” means
      the payment of severance compensation as provided in Sections 7.4 and 7.6
      herein, and not payable due to a Change in Control of the Company. 
    
	 	 	 
	2.28	 “Successor
      Company” shall
      have the meaning ascribed to it in Section 9.1.  
	 	 	 
	2.29 	 “Term”
      shall
      mean that period of time commencing on the Effective Date and ending on
      the Effective Date of Termination.  
	 	 
	 Article
      3. Position and Responsibilities  
	 	 	 
	3.1 	 During
      the term of this Agreement, the Executive agrees to serve as Senior Vice
      President, General Counsel and Corporate Secretary of the Company or in
      such other position which Executive shall agree to accept or to which Executive
      shall be promoted during the Term and Executive shall report directly to
      the Chief Executive Officer or such other position which is at a higher
      position or level in the Company than Executive and as shall be determined
      by the Chief Executive Officer in his sole discretion, and shall maintain
      the level of duties and responsibilities as in effect as of the Effective
      Date, or such higher level of duties and responsibilities as Executive may
      be assigned during the Term (the “Position”). 
	 	 
	 Article
      4. Standard of Care  
	 	 	 
	4.1	 
      During the term of this Agreement, the Executive agrees to devote substantially
      his full time, attention, and energies to the Company’s business and
      shall not be engaged in any other business activity, whether or not such
      business activity is pursued for gain, profit, or other pecuniary advantage
      unless such business activity is approved by the Compensation Committee
      (or, in the event the Compensation Committee ceases to exist, the Board).
      However, subject to Article 11 herein and approval by the Compensation Committee
      (or the Board, as the case may be), the Executive may serve as a director
      of other companies so long as such service is not injurious to the Company.
    

 
  4 

Article
  5. Compensation

	5.1	 As
        remuneration for all services to be rendered by the Executive during
        the term of this Agreement, and as consideration for complying with the
        covenants herein, the Company shall pay and provide to the Executive
    those items set forth in Sections 5.2 through 5.8.
	 	 	 
	5.2	Base
      Salary. The
      Company shall pay the Executive a Base Salary in an amount which shall be
      established from time to time by the Board of Directors of the Company or
      the Board’s designee; provided, however, that such Base Salary shall
      not be less than TWO-HUNDRED-NINETY-THOUSAND DOLLARS (US$290,000) per year.
	 	 	 
	 	(a)	This Base
        Salary shall be paid to the Executive in equal installments throughout
    the year, consistent with the normal payroll practices of the Company.
	 	 	 
	 	(b)	The Base
        Salary shall be reviewed at least annually following the Effective Date
        of this Agreement, while this Agreement is in force, to ascertain whether,
        in the judgment of the Board or the Board’s designee, such Base
        Salary should be increased based primarily on the performance of the
        Executive during the year. If so increased, the Base Salary as stated
        above shall, likewise, be increased for all purposes of this Agreement
    and shall not, in any event, be decreased in any year.
	 	 	 
	5.3	Annual
      Bonus. In
      addition to his Base Salary, the Executive shall be entitled to participate
      in the Company’s annual short-term incentive program, as such program
      may exist from time to time, at a level commensurate with the Position.
      The percentage of Base Salary targeted as annual short-term incentive compensation
      shall be established for the Position by the Company’s Compensation
      Committee in its sole discretion (the “targeted Annual Bonus award”).
      Executive acknowledges that the amount of annual short-term incentive, if
      any, to be awarded shall be at the sole discretion of the Company’s
      Compensation Committee, may be less or more than the targeted Annual bonus
      award, and will be based on a number of factors set in advance by the Compensation
      Committee for each calendar year, including the Company’s performance
      and the Executive’s individual performance. Nothing in this Section
      5.3 shall be construed as obligating the Company or the Board to refrain
      from changing, and/or amending the short-term incentive program, so long
      as such changes are equally applicable to all executive employees in the
      Company.
	 	 	 
	5.4	Long-Term
          Incentives. The
           Executive shall be eligible to participate in the Company’s long-term
            incentive plan, as such shall be amended or superseded from time
           to time
      provided, however, that nothing in this Section 5.4 shall be construed
            as obligating the Company or the Board to refrain from changing,
           and/or
      amending the long-term incentive plan, so long as such changes are equally
            applicable to all executive employees in the Company.
	 	 	 
	5.5 	Retirement
      Benefits. The
      Company shall provide to the Executive participation in any Company qualified
      defined benefit and defined contribution retirement plans as may be established
      during the term of this Agreement; provided, however, that nothing in this
      Section 5.5 shall be construed as obligating the Company to refrain from
      changing, and/or amending the nonqualified retirement programs, so long
      as such changes are equally applicable to all executive employees in the
      Company.
	 	 	 
	5.6	Employee
      Benefits. During
      the Term, and as otherwise provided within the provisions of each of the
      respective plans, the Company shall provide to the Executive all benefits
      to which other executives and employees of the Company are entitled to receive,
      as commensurate with the Position, subject to the eligibility requirements
      and other provisions of such arrangements as applicable to executives of
      the Company generally. 

5

	 	(a)	Such benefits
      shall include, but shall not be limited to, group term life insurance, health,
      dental and life insurance, and short-term and long-term disability.
	 	 	 
	 	(b)	The Executive
      shall likewise participate in any additional benefit as may be established
      during the term of this Agreement, by standard written policy of the Company.
	 	 	 
	5.7	Vacation. The
      Executive shall be entitled to such paid vacation as is customary for the
      Position in corporate institutions of similar size and character, but in
      any event not less than twenty (20) paid vacation days during each calendar
      year; provided, however, that without prior written approval, Executive
      may carry forward into the next year no more than ten (10) unused vacation
      days from the current year. 
	 	 	 
	5.8	Perquisites. The
      Company shall provide to the Executive, at the Company’s expense, all
      perquisites which the Board may determine from time to time to provide;
      provided, however, that nothing in this Section 5.8 shall be construed as
      obligating the Company or the Board to refrain from changing, and/or amending
      the perquisite program, so long as such changes are equally applicable to
      all executive employees in the Company. 
	 	 	 
	5.9	 Right
      to Change Plans. The
      Company shall not be obligated to institute, maintain, or refrain from changing,
      amending, or discontinuing any benefit plan, program, or perquisite, so
      long as such changes are equally applicable to all executive employees in
      the Company. 

 Article
  6. Expenses

	6.1	Upon presentation
      of appropriate documentation, the Company shall pay, or reimburse the Executive
      for all ordinary and necessary expenses, in a reasonable amount, which the
      Executive incurs in performing his duties under this Agreement including,
      but not limited to, travel, entertainment, professional licensing fees,
      dues and subscriptions, and all dues, fees, and expenses associated with
      membership in various professional, business, and civic associations and
      societies.  

 Article
  7. Employment Terminations

	7.1	Termination
      Due to Death. In
      the event the Executive’s employment is terminated while this Agreement
      is in force by reason of death, the Company’s obligations under this
      Agreement shall immediately expire. Notwithstanding the foregoing, the Company
      shall be obligated to pay to the Executive the following: 
	 	 	 
	 	(a)	Base Salary
      through the Effective Date of Termination;
	 	 	 
	 	(b)	An amount
      equal to the Executive’s unpaid targeted Annual Bonus award, established
      for the fiscal year in which such termination is effective, multiplied by
      a fraction, the numerator of which is the number of completed days in the
      then-existing fiscal year through the Effective Date of Termination, and
      the denominator of which is three hundred sixty-five (365);  

6

	 	(c)

    	All
      outstanding long-term incentive awards shall be subject to the treatment
      provided under the applicable long-term incentive plan of the Company;
	 	 	 
	 	(d)

    	Accrued
      but unused vacation pay through the Effective Date of Termination; and
	 	 	 
	 	(e)

    	All
         other rights and benefits the Executive is vested in, pursuant to other

      plans and programs of the Company.
	 	 	 
	 	(f)

    	The
      benefits described in Sections 7.1(a) and (d) shall be paid in cash to the
      Executive in a single lump sum as soon as practicable following the Effective
      Date of Termination, but in no event beyond thirty (30) days from such date.
      All other payments due to the Executive upon termination of employment,
      including those in Sections 7.1(b) and (c), shall be paid in accordance
      with the terms of such applicable plans or programs.
	 	 	 
	 	(g)

    	With
      the exception of the covenants contained in Articles 9 and 14 and Sections
      7.1(f), 13.3, 13.5, and 13.7 herein (which shall survive such termination),
      the Company and the Executive thereafter shall have no further obligations
      under this Agreement.
	 	 	 
	7.2 	 Termination
      Due to Disability. In
      the event that the Executive becomes Disabled during the term of this Agreement
      and is, therefore, unable to perform his duties herein for more than one
      hundred eighty (180) total calendar days during any period of twelve (12)
      consecutive months, or in the event of the Board’s reasonable expectation
      that the Executive’s Disability will exist for more than a period of
      one hundred eighty (180) calendar days, the Company shall have the right
      to terminate the Executive’s active employment as provided in this
      Agreement. 
	 	 	 
	 	(a)	The
      Board shall deliver written notice to the Executive of the Company’s
      intent to terminate for Disability at least thirty (30) calendar days prior
      to the Effective Date of Termination.
	 	 	 
	 	(b)	Such
      Disability to be determined by the Board of Directors of the Company upon
      receipt of and in reliance on competent medical advice from one (1) or more
      individuals, selected by the Board, who are qualified to give such professional
      medical advice.
	 	 	 
	 	(c)	A
      termination for Disability shall become effective upon the end of the thirty
      (30) day notice period unless prior to the expiration of such thirty (30)
      day notice period Executive returns to work with medical documentation of
      his fitness to resume his duties determined to be acceptable by the Board
      of Directors in their sole discretion. Upon the Effective Date of Termination,
      the Company’s obligations under this Agreement shall immediately expire.
	 	 	 
	 	(d)	Notwithstanding
      the foregoing, the Company shall be obligated to pay to the Executive the
      following:
	 	 	 
	 	 	(1)    	Base
      Salary through the Effective Date of Termination;
	 	 	 	 
	 	 	(2)    	An
      amount equal to the Executive’s unpaid targeted Annual Bonus award,
      established for the fiscal year in which the Effective Date of Termination
      occurs, multiplied by a fraction, the numerator of which is the number of
      completed days in the
      then-existing fiscal year through the Effective Date of Termination, and
      the denominator of which is three hundred sixty-five (365); 

7

	 	 	(3)	All outstanding
      long-term incentive awards shall be subject to the treatment provided under
      the applicable long-term incentive plan of the Company;
	 	 	 	 
	 	 	(4)	Accrued
      but unused vacation pay through the Effective Date of Termination; and
	 	 	 	 
	 	 	(5)	All other
      rights and benefits the Executive is vested in, pursuant to other plans
      and programs of the Company.
	 	 	 	 
	 	(e)	The
      benefits described in Sections 7.2(d)(1) and (d)(4) shall be paid in cash
      to the Executive in a single lump sum as soon as practicable following the
      Effective Date of Termination, but in no event beyond thirty (30) days from
      such date. All other payments due to the Executive upon termination of employment,
      including those in Sections 7.2(d)(2) and (d)(3), shall be paid in accordance
      with the terms of such applicable plans or program.
	 	 	 	 
	 	(f)	With
      the exception of the covenants contained in Articles 8, 9, 11, and 14 and
      Sections 7.2(e), 13.3, 13.5, and 13.7 herein (which shall survive such termination),
      the Company and the Executive thereafter shall have no further obligations
      under this Agreement.
	 	 	 	 
	7.3	Voluntary
      Termination by the Executive .
      The Executive may terminate this Agreement at any time by giving Notice
      of Termination to the Board of Directors of the Company, delivered at least
      fourteen (14) calendar days prior to the Effective Date of Termination.
	 	 	 	 
	 	(a)	The
      termination automatically shall become effective upon the expiration of
      the fourteen (14) day notice period. Notwithstanding the foregoing, the
      Company may waive the fourteen (14) day notice period; however, the Executive
      shall be entitled to receive all elements of compensation described in Sections
      5.1 through 5.6 for the fourteen (14) day notice period, subject to the
      eligibility and participation requirements of any qualified retirement plan.
	 	 	 	 
	 	(b)	Upon
      the Effective Date of Termination, following the expiration of the fourteen
      (14) day notice period, the Company shall pay the Executive his full Base
      Salary and accrued but unused vacation pay, at the rate then in effect,
      through the Effective Date of Termination, plus all other benefits to which
      the Executive has a vested right at that time (for this purpose, the Executive
      shall not be paid any Annual Bonus with respect to the fiscal year in which
      voluntary termination under this Section occurs).
	 	 	 	 
	 	(c)	With
      the exception of the covenants contained in Articles 8, 9, 11, and 14 and
      Sections 13.3, 13.5, and 13.7 herein (which shall survive such termination),
      the Company and the Executive thereafter shall have no further obligations
      under this Agreement.
	 	 	 	 
	7.4	Involuntary
      Termination by the Company without Cause.
      At all times during the Term, the Board may terminate the Executive’s
      employment for reasons other than death, Disability, or for Cause, by providing
      to the Executive a Notice of Termination, at least sixty (60)
      calendar
      days (ninety (90) calendar days when termination is due to non-renewal of
      this Agreement by the Company pursua nt to Section 1.2) prior to the Effective
      Date of Termination; provided, however, that such notice shall not preclude
      the Company from requiring Executive to leave the Company immediately upon
      receipt of such notice.

8

	 	(a)	Such
      Notice of Termination shall be irrevocable absent express, mutual consent
      of the parties.
	 	 	 	 
	 	(b)	Upon
      the Effective Date of Termination (not a Qualifying Termination), following
      the expiration of the sixty (60) day notice period (90 days in the case
      of non-renewal), the Company shall pay and provide to the Executive:
	 	 	 	 
	 	 	(1)	An amount
      equal to the Service Multiple times the Executive’s annual Base Salary
      established for the fiscal year in which the Effective Date of Termination
      occurs;
	 	 	 	 
	 	 	(2)	An amount
      equal to the Service Multiple times the Executive’s targeted Annual
      Bonus award established for the fiscal year in which the Effective Date
      of Termination occurs; provided, however, that no payment shall be made
      under this Section 7.4(b)(2) if the Effective Date of Termination is less
      than twelve (12) months after the Employment Date;
	 	 	 	 
	 	 	(3)	A continuation
      of the welfare benefits of medical, dental and life insurance coverage (or
      if continuation under the Company’s then current plans is not allowed,
      then provision at the Company’s expense but subject to payment by Executive
      of those payments which Executive would have been obligated to make under
      the Company’s then current plan, of substantially similar welfare benefits
      from one or more third party providers) after the Effective Date of Termination
      for a number of months equal to the Service Multiple times twelve (12).
      These benefits shall be provided to the Executive at the same coverage level
      as in effect as of the Effective Date of Termination, and at the same premium
      cost to the Executive which was paid by the Executive at the time such benefits
      were provided. However, in the event the premium cost and/or level of coverage
      shall change for all employees of the Company, or for management employees
      with respect to supplemental benefits, the cost and/or coverage level, likewise,
      shall change for the Executive in a corresponding manner. The continuation
      of these welfare benefits shall be discontinued if prior to the expiration
      of the period, the Executive has available substantially similar benefits
      at a comparable cost to the Executive from a subsequent employer, as determined
      by the Compensation Committee (or, in the event the Compensation Committee
      ceases to exist, the Board);
	 	 	 	 
	 	 	(4)	All outstanding
      long-term incentive awards shall be subject to the treatment provided under
      the applicable long-term incentive plan of the Company;
	 	 	 	 
	 	 	(5)	An amount
      equal to the Executive’s unpaid Base Salary and accrued but unused
      vacation pay through the Effective Date of Termination; and
	 	 	 	 
	 	 	(6)	All other
      benefits to which the Executive has a vested right at the time, according
      to the provisions of the governing plan or program.
	 	 	 	 
	 	(c)	For
      purposes of this Section 7.4, the term “Service Multiple” shall
      be equal to the quotient resulting from a formula the numerator of which
      is the lesser of (a) full number of completed months that have elapsed since
      the Employment Date (but not less than 6 months) and (b) eighteen (18) and
      the denominator of which is twelve (12);
	 	 	 	 
	 	(d)	In
      the event that the Board terminates the Executive’s employment without
      Cause on or after the date of the announcement of the transaction which
      leads to a CIC, the Executive shall be entitled to the CIC Severance Benefits
      as provided in Section 8.3 in lieu of the Severance Benefits outlined in
      this Section 7.4.

 9

	 	(e)	Payment
      of all of the benefits described in Section 7.4(b)(1) shall be paid in cash
      to the Executive in equal bi-weekly installments over a period of consecutive
      months equal to the Service Multiple times twelve (12) and beginning on
      the fifteenth day of the month following the month in which the Effective
      Date of Termination occurs.
	 	 	 
	 	(f)	Payment
      of all but forty thousand dollars ($40,000) of the benefits described in
      Section 7.4(b)(2) shall be paid in cash to the Executive in a single lump
      sum as soon as practicable following the Effective Date of Termination,
      but in no event beyond thirty (30) days from such date. The forty thousand
      dollars ($40,000) which was withheld shall be paid in cash to the Executive
      in a single lump sum at the end of the twelve (12) month restrictive period
      set forth in Sections 11.2 and 11.3 of this Agreement.
	 	 	 
	 	(g)	Except as
      specifically provided in Section 7.4(e) and (f), all other payments due
      to the Executive upon termination of employment shall be paid in accordance
      with the terms of such applicable plans or programs.
	 	 	 
	 	(h)	With the
      exception of the covenants contained in Articles 8, 9, 10, 11, 12 and 14
      and Sections 7.4, 13.3, 13.5, and 13.7 (which shall survive such termination),
      the Company and the Executive thereafter shall have no further obligations
      under this Agreement.
	 	 	 
	 	(i)	Notwithstanding
      anything herein to the contrary, the Company’s payment obligations
      under this Section 7.4 shall be offset by any amounts that the Company is
      required to pay to the Executive under a national statutory severance program
      applicable to such Executive.
	 	 	 
	7.5	Termination
      for Cause.
      Nothing in this Agreement shall be construed to prevent the Board from terminating
      the Executive’s employment under this Agreement for Cause.
	 	 	 
	 	(a)	To be effective,
      the Notice of Termination must set forth in reasonable detail the facts
      and circumstances claimed to provide a basis for such termination for Cause.
	 	 	 
	 	(b)	In the event
      this Agreement is terminated by the Board for Cause, the Company shall pay
      the Executive his Base Salary and accrued vacation pay through the Effective
      Date of Termination, and the Executive shall immediately thereafter forfeit
      all rights and benefits (other than vested benefits) he would otherwise
      have been entitled to receive under this Agreement. The Company and the
      Executive thereafter shall have no further obligations under this Agreement
      with the exception of the covenants contained in Articles 9, 10, 11, and
      14 and Sections 13.3, 13.5, and 13.9 herein (which shall survive such termination).
	 	 	 
	7.6	Termination
      for Good Reason.
      Except where Section 2.20(e) is applicable, this Section 7.6 shall only
      become effective when at least twelve (12) months have elapsed since the
      Employment Date. Prior to this Section 7.6 becoming effective, any notice
      of termination by Executive may only be given pursuant to Section 7.3. The
      Executive shall have sixty (60)
      days from
      the date he learns of action taken by the Company that allows the Executive
      to terminate his employment for Good Reason to provide the Board with a
      Notice of Termination.
	 	 	 
	 	(a)	The Notice
      of Termination must set forth in reasonable detail the facts and circumstances
      claimed to provide a basis for such Good Reason termination.
	 	 	 
	 	(b)	The Company
      shall have thirty (30) days to cure such Company action following receipt
      of the Notice of Termination.

 10

	 	(c)	The Executive is required to continue his employment for the sixty (60) day period following the date in which he provided the Notice of Termination to the Board. The Company may waive the sixty (60) day notice period; however, the Executive shall be entitled to receive all elements of compensation described in Sections 5.1 through 5.6 for the sixty (60) day notice period, subject to the eligibility and participation requirements of any qualified retirement plan.
	 	 	 
	 	(d)	Upon a termination of the Executive’s employment for Good Reason during the Term, and following the expiration of the sixty (60) day notice period, the Company shall pay and provide to the Executive the following:
	 	 	 	 
	 	 	(1)	An
       amount equal to one-and-one-half (1.5) times the Executive’s annual
       Base Salary established for the fiscal year in which the Effective Date
       of Termination occurs;
	 	 	 	 
	 	 	(2)	An amount equal to one-and-one-half (1.5) times the Executive’s targeted Annual Bonus award established for the fiscal year in which the Effective Date of Termination occurs;
	 	 	 	 
	 	 	(3)	A
       continuation of the welfare benefits of medical, dental and life insurance
       coverage for one-and-one-half (1.5) years after the Effective Date of
       Termination (or if continuation under the Company’s then current
       plans is not allowed, then provision at the Company’s expense but
       subject to payment by Executive of those payments which Executive would
       have been obligated to make under the Company’s then current plan,
       of substantially similar welfare benefits from one or more third party
       providers). These benefits shall be provided to the Executive at the same
       coverage level, as in effect as of the Effective Date of Termination and
       at the same premium cost to the Executive which was paid by the Executive
       at the time such benefits were provided. However, in the event the premium
       cost and/or level of coverage shall change for all employees of the Company,
       or for management employees with respect to supplemental benefits, the
       cost and/or coverage level, likewise, shall change for the Executive in
       a corresponding manner. The continuation of these welfare benefits shall
       be discontinued prior to the end of the one-and-one-half (1.5) year period
       in the event the Executive has available substantially similar benefits
       at a comparable cost to the Executive from a subsequent employer, as determined
       by the Compensation Committee (or, in the event the Compensation Committee
       ceases to exist, the Board);
	 	 	 	 
	 	 	(4)	All outstanding long-term incentive awards shall be subject to the treatment provided under the applicable long-term incentive plan of the Company;
	 	 	 	 
	 	 	(5)	An amount equal to the Executive’s unpaid Base Salary and accrued but unused vacation pay through the Effective Date of Termination; and
	 	 	 	 
	 	 	(6)	All other benefits to which the Executive has a vested right at the time, according to the provisions of the governing plan or program.
	 	 	 
	 	(e)	In
       the event of termination of Executive’s employment for Good Reason
       on or after the date of the announcement of the transaction which leads
       to the CIC and up to twenty-four (24) months following the date of the
       CIC, the Executive shall be entitled to the CIC Severance Benefits as
       provided in Section 8.3 in lieu of the Severance Benefits outlined in
       this Section 7.6.

11

	 	(f)	The Executive’s right to terminate employment for Good Reason shall not be affected by the Executive’s incapacity due to physical or mental illness unless such incapacity is determined to constitute a Disability as provided herein.
	 	 	 
	 	(g)	Payment of all but forty thousand dollars ($40,000) of the benefits described in Section 7.6(d)(1) and payment of all of the benefits described in Section 7.6(d)(2) shall be paid in cash to the Executive in a single lump sum as soon as practicable following the Effective Date of Termination, but in no event beyond thirty (30) days from such date. The forty thousand dollars ($40,000) which was withheld shall be pa id in cash to the Executive in a single lump sum at the end of the twelve (12) month restrictive period set forth in Sections 11.2 and 11.3 of this Agreement.
	 	 	 
	 	(h)	Except as specifically provided in Section 7.6(g), all other payments due to the Executive upon termination of employment shall be paid in accordance with the terms of such applicable plans or programs.
	 	 	 
	 	(i)	Notwithstanding anything herein to the contrary, the Company’s payment obligations under this Section 7.6 shall be offset by any amounts that the Company is required to pay to the Executive under a national statutory severance program applicable to such Executive.
	 	 	 
	 	(j)	With the exceptions of the covenants contained in Articles 8, 9, 10, 11, 12 and 14 and Sections 7.6, 13.3, 13.5, and 13.7 (which shall survive such termination) herein, the Company and the Executive thereafter shall have no further obligations under this Agreement.
	 	 	 
	Article
      8. Change in Control
	 	 	 
	8.1	Employment
        Termination Following a Change in Control.
        The Executive shall be entitled to receive from the Company CIC Severance
        Benefits if a Notice of Termination for a Qualifying Termination of the
    Executive has been delivered; provided, that:
	 	 	 
	 	(a)	The Executive shall not be entitled to receive CIC Severance Benefits if he is terminated for Cause (as provided in Section 7.5 herein), or if his employment with the Company ends due to death, or Disability, or due to voluntary termination of employment by the Executive without Good Reason.
	 	 	 
	 	(b)	CIC Severance Benefits shall be paid in lieu of all other benefits provided to the Executive under the terms of this Agreement.   
	 	 	 
	8.2	Qualifying
        Termination.
        The occurrence of any one or more of the following events on or after
        the date of the announcement of the transaction which leads to the CIC
        and up to twenty-four (24) months following the date of the CIC shall
        trigger the payment of CIC    Severance Benefits
    to the Executive under this Agreement:
	 	 	 
	 	(a)	An involuntary termination of the Executive’s employment by the Company for reasons other than Cause, death, or Disability, as evidenced by a Notice of Termination delivered by the Company to the Executive;

12

	 	(b)	A voluntary termination by the Executive for Good Reason as evidenced by a Notice of Termination delivered to the Company by the Executive;
	 	 	 
	 	(c)	Failure to renew this Agreement (if the Agreement would expire unless renewed within such period), as evidenced by a Notice of Termination delivered by the Company to the Executive; or
	 	 	 
	 	(d)	The Company or any Successor Company materially breaches any material provision of this Agreement and does not cure such breach within thirty (30) days of receiving a written notice from the Executive with such notice explaining in reasonable detail the facts and circumstances claimed to provide a basis for the Executive’s claim.   
	 	 	 
	8.3	Severance
        Benefits Paid upon a Qualifying Termination.
        In the event the Executive becomes entitled to receive CIC Severance
        Benefits, the Company shall pay to the Executive and provide him the
    following:
	 	 	 
	 	(a)	An
      amount equal to two (2) times the Executive’s annual Base Salary established
    for the fiscal year in which the Effective Date of Termination occurs;
	 	 	 
	 	(b)	An
      amount equal to two (2) times the Executive’s targeted Annual Bonus
      award established for the fiscal year in which the Executive’s Effective
    Date of Termination occurs;
	 	 	 
	 	(c)	An
      amount equal to the Executive’s unpaid Base Salary and accrued but
    unused vacation pay through the Effective Date of Termination;
	 	 	 
	 	(d)	All
      outstanding long-term incentive awards shall be subject to the treatment
    provided under the applicable long-term incentive plan of the Company;
	 	 	 
	 	(e)	A
      continuation of the welfare benefits of medical, dental and life insurance
      coverage for two (2) full years after the Effective Date of Termination
      (or if continuation under the Company’s then current plans is not
      allowed, then provision at the Company’s expense but subject to payment
      by Executive of those payments which Executive would have been obligated
      to make under the Company’s then current plan, of substantially similar
    welfare benefits from one or more third party providers).
	 	 	 
	 	 	(1) 	These
      benefits shall be provided to the Executive at the same coverage level,
      as in effect as of the Effective Date of Termination or, if greater, as
      in effect sixty (60) days prior to the date of the Change in Control, and
      at the same premium cost to the Executive which was paid by the Executive
    at the time such benefits were provided. 
	 	 	 	 
	 	 	(2)	In
      the event the premium cost and/or level of coverage shall change for all
      employees of the Company, or for management employees with respect to supplemental
      benefits, the cost and/or coverage level, likewise, shall change for the
    Executive in a corresponding manner. 
	 	 	 	 
	 	 	(3) 	The
      continuation of these welfare benefits shall be discontinued prior to the
      end of the two
      year period in the event the Executive has available substantially similar
      benefits at a comparable cost to the Executive from a subsequent employer,
      as determined by the Compensation Committee (or, in the event the Compensation
    Committee ceases to exist, the Board). 

13 

	8.4	Form
          and Timing of Severance Benefit. Payment of all of the benefits
          described in Sections 8.3(a) through (c) shall be paid in cash to the
          Executive in a single lump sum as soon as practicable following the
          Effective Date of Termination, but in no event beyond thirty (30) days
          from such date. All other payments due to the Executive upon termination
          of employment shall be paid in accordance with the terms of such applicable
    plans or programs.
	 	 	 
	 8.5	Excise
          Tax. In the event that a Change in Control occurs, and a determination
          is made by the Company pursuant to Section 280G and 4999 of the Code
          that a golden parachute excise tax is due, the benefits provided to
          the Executive under this Agreement that are classified as “parachute
          payments” (as such term is defined in Section 280G of the Code),
    shall be limited to the amount just necessary to avoid the excise tax.
	 	 	 
	 	(a)	This
        limitation shall be applied if, and only if, such a limitation results
        in a greater net (of excise tax) cash benefit to the Executive than he
        would receive had the benefits not been capped and an excise tax been
    levied.
	 	 	 
	8.6	With
        the exceptions of the covenants contained in Articles 8, 9, 10, 11, 12
        and 14 and Sections 13.3, 13.5, and 13.7 (which shall survive such
        termination) herein, the Company and the Executive thereafter shall have
    no further obligations under this Agreement.
	 	 	 
	Article
      9. Assignment
	 	 	 
	9.1	Assignment
          by Company.
          This Agreement may and shall be assigned or transferred to, and shall
          be binding upon and shall inure to the benefit of any Successor Company,
          with Successor Company for purposes of this Agreement being defined
          as a company that (i) acquires greater than fifty percent (50%) of
          the assets of the Company or (ii) acquires greater than fifty percent
          (50%) of the outstanding stock of the Company, or (iii) is the surviving
    entity in the event of a CIC.
	 	 	 
	 	(a)	Any such
        Successor Company shall be deemed substituted for all purposes of the “Company” under
    the terms of this Agreement.
	 	 	 
	 	(b)	Failure
        of the Company to obtain the agreement of any Successor Company to be
        bound by the terms of this Agreement prior to the effectiveness of any
        such succession shall be a breach of this Agreement, and shall immediately
        entitle the Executive to benefits from the Company in the same amount
        and on the same terms as the Executive would be entitled to receive in
        the event of a termination of employment for Good Reason as provided
        in Section 7.7 (failure not related to a Change in Control) or Section
        8.3 (if the failure of assignment follows or is in connection with a
    Change in Control).
	 	 	 
	 	(c)	Except
        as herein provided, this Agreement may not otherwise be assigned by the
    Company.
	 	 	 
	9.2	Assignment
          by Executive.
          This Agreement shall inure to the benefit of and be enforceable by
          the Executive’s personal or legal representatives, executors,
    administrators, successors, heirs, distributees, devisees, and legatees.
	 	 	 
	 	(a)	If the
        Executive dies while any amount would still be payable to him pursuant
        to this Agreement had he continued to live, all such amounts, unless
    otherwise provided herein, shall be paid in accordance with the terms of
    this Agreement, to the Executive’s Beneficiary.

14

	 	(b)	If the
        Executive has not named a Beneficiary, then such amounts shall be paid
        to the Executive’s devisee, legatee, or other designee, or if there
    is no such designee, to the Executive’s estate.
	 	 	 
	Article
      10. Legal Fees and Notice
	 	 	 
	10.1	Payment
          of Legal Fees.
          To the extent permitted by law, the Company shall pay all legal fees,
          costs of litigation, prejudgment interest, and other expenses incurred
    by Executive in contesting a termination, if Executive prevails.
	 	 	 
	10.2	Notice.
        Any notices, requests, demands, or other communications provided by this
        Agreement shall be sufficient if in writing and if sent by registered
        or certified mail to the Executive at the last address he has filed in
        writing with the Company or, in the case of the Company, at its principal
        offices to the attention of the Chief Executive Officer.
	 	 	 
	Article
      11. Confidentiality and Noncompetition
	 	 	 
	11.1	Disclosure
          of Information.
          The Executive recognizes that he has access to and knowledge of confidential
          and proprietary information of the Company that is essential to the
    performance of his duties under this Agreement.
	 	 	 
	 	(a)	The Executive
        will not, during and for five (5) years after the term of his employment
        by the Company, in whole or in part, disclose such information to any
        person, firm, corporation, association, or other entity for any reason
        or purpose whatsoever, nor shall he make use of any such information
        for his own purposes, so long as such information has not otherwise been
        disclosed to the public or is not otherwise in the public domain except
    as required by law or pursuant to administrative or legal process.
	 	 	 
	11.2	Covenants
          Regarding Other Employees.
          During the term of this Agreement, and for a period of twelve (12)
          months following the Executive’s termination of employment for
          any reason, the Executive agrees not to actively solicit any employee
          of the Company to terminate his or her employment with the Company
    or to interfere in a similar manner with the business of the Company.
	 	 	 
	11.3	Noncompete
          Following a Termination of Employment.
          From the Effective Date of this Agreement until six (6) months following
          the Executive’s Effective Date of Termination for any reason,
          the Executive will not: (a) directly or indirectly own any equity or
          proprietary interest in (except for ownership of shares in a publicly
          traded company not exceeding three percent (3%) of any class of outstanding
          securities), or be an employee, agent, director, advisor, or consultant
          to or for any competitor of the Company, whether on his own behalf
          or on behalf of any person; or (b) undertake any action to induce
          or cause any customer or client to discontinue any part of its business
    with the Company.

15

	11.4	Waiver
          of Covenants Upon a Change in Control. Upon
          the occurrence of a Change in Control, the Executive shall be released
          from each of the covenants set forth in Section 11.2 and 11.3, if such
          Executive is terminated by the Company without Cause or if the Executive
    terminates his employment with the Company for Good Reason.
	 	 	 
	Article
      12. Outplacement Assistance
	 	 	 
	12.1	Following
        a termination of employment, other than for Cause, the Executive shall
        be reimbursed by the Company for the costs of all outplacement services
        obtained by the Executive within the two (2) year period after the Effective
        Date of Termination; provided, however, that the total reimbursement
        shall be limited to an amount equal to twenty percent (20%) of the Executive’s
    Base Salary as of the effective date of termination.
	 	 	 
	Article
      13. Miscellaneous
	 	 	 
	13.1	Entire
          Agreement. With
          the exception of the Company’s Proprietary Information and  Inventions
          Agreement previously executed by Executive and the Offer Letter, dated
          May 10, 2004, executed by the company and executive (the terms of which
          are incorporated herein by this reference), this Agreement supersedes
          any prior agreements, or understandings, oral or written, between the
          parties hereto or between the Executive and the Company, with respect
          to the subject matter hereof, and constitutes the entire agreement
    of the parties with respect thereto.
	 	 	 
	13.2	Modification. This
        Agreement shall not be varied, altered, modified, canceled, changed,
        or in any way amended except by mutual agreement of the parties in a
    written instrument executed by the parties hereto or their legal representatives.
	 	 	 
	13.3	Severability. In
        the event that any provision or portion of this Agreement shall be determined
        to be invalid or unenforceable for any reason, the remaining provisions
        of this Agreement shall be unaffected thereby and shall remain in full
    force and effect.
	 	 	 
	13.4	Counterparts. This
        Agreement may be executed in one (1) or more counterparts, each of which
        shall be deemed to be an original, but all of which together will constitute
    one and the same Agreement.
	 	 	 
	13.5	Tax
          Withholding. The
          Company may withhold from any benefits payable under this  Agreement
          all federal, state, city, or other taxes as may be required pursuant
    to any law or governmental regulation or ruling.
	 	 	 
	13.6	Beneficiaries. To
        the extend allowed by law, any payments or benefits hereunder due to
        the  Executive
        at the time of his death shall nonetheless be paid or provided and the
        Executive may designate one or more persons or entities as the primary
        and/or contingent beneficiaries of any amounts to be received under this
        Agreement. Such designation must be in the form of a signed writing acceptable
        to the Board or the Board’s designee. The Executive may make or
    change such designation at any time.

16

	13.7	Payment
          Obligation Absolute.
          Absent actions deliberately or willfully taken by the Executive to
          materially injure the Company, the Company’s obligation to make
          the payments and the arrangement provided for herein shall be absolute
          and unconditional, and shall not be affected by any circumstances,
          including, without limitation, any offset, counterclaim, recoupment,
          defense, or other right which the Company may have against the Executive
    or anyone else.
	 	 	 
	 	(a)	All amounts
        payable by the Company hereunder shall be paid without notice or demand.
        Subject to the provisions set forth in Sections 7.4 and 7.6, and Article
        11, each and every payment made hereunder by the Company shall be final,
        and the Company shall not seek to recover all or any part of such payment
        from the Executive or from whomsoever may be entitled thereto, for any
    reasons whatsoever.
	 	 	 
	 	(b)	With the
        exception of the Company’s willful material breach of its payment
        obligations under Articles 7 and 8 of this Agreement (provided, however,
        that no such breach shall be deemed to have occurred until the Executive
        has provided the Board with written notice of such breach and a reasonable
        opportunity for cure), the restrictive covenants contained in Article
        11 are independent of any other contractual obligations in this Agreement
        or otherwise owed by the Company to the Executive. Except as provided
        in this paragraph, the existence of any claim or cause of action by Executive
        against the Company, whether based on this Agreement or otherwise, shall
        not create a defense to the enforcement by the Company of any restrictive
    covenant contained herein.
	 	 	 
	 	(c)	The Executive
        shall not be obligated to seek other employment in mitigation of the
        amounts payable or arrangements made under any provision of this Agreement,
        and the obtaining of any such other employment shall in no event effect
        any reduction of the Company’s obligations to make the payments
    and arrangements required to be made under this Agreement.
	 	 	 
	Article
      14. Governing Law
	 	 	 
	14.1	To the
        extent not preempted by federal law, the provisions of this Agreement
        shall be construed and enforced in accordance with the laws of the state
    of New Jersey.
	 	 	 
	 	IN
          WITNESS WHEREOF,
          the Company, through its duly authorized representative, and the Executive
    have executed this Agreement as of the Effective Date.

	 	Executive:	 
	 	 	 
	 	/s/ Philip
    K. Yachmetz 
	 	
	 
	 	Philip
    K. Yachmetz
	 	 	 
	 	Company:
	 	 	 
	 	Savient
    Pharmaceuticals, Inc.
	 	 	 
	 	By:	/s/
        Christopher
Clement
	 	 	
	 
	 	 	Christopher
    Clement
	 	 	President & COO 

 
  17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}]]