Document:

FORM OF INDEMINIFICATION AGREEMENT

 

Exhibit 10.18

WCI COMMUNITIES, INC.

INDEMNIFICATION AGREEMENT

          THIS INDEMNIFICATION AGREEMENT, dated as of      , is between WCI
COMMUNITIES, INC., a Delaware corporation (the “Company”) and
     (“Indemnitee”).

RECITALS

     A.     Indemnitee is a director or executive officer of the Company and in
such capacity is performing valuable services for the Company.

     B.     The Company and Indemnitee recognize the difficulty in obtaining
directors’ and officers’ liability insurance, the significant cost of such
insurance and the periodic reduction in the coverage of such insurance.

     C.     The Company and Indemnitee further recognize the substantial increase
in litigation subjecting directors and officers to expensive litigation risks
at the same time such liability insurance is being severely limited.

     D.     The Company has adopted and its stockholders have approved the Restated
Certificate of Incorporation of the Company providing for the indemnification
of the Company’s directors and officers to the fullest extent permitted by the
laws of the State of Delaware.

     E.     The Restated Certificate of Incorporation of the Company and the
Delaware General Corporation Law specifically provide that they are not
exclusive, and they expressly contemplate that contracts may be entered into
between the Company and its directors and officers with respect to
indemnification of such directors and officers.

     F.     The Board of Directors of the Company has determined that (1) it is
essential to the best interests of the Company’s stockholders that the Company
act to assure Indemnitee that there will be increased certainty of protection
in the future, and that (2) it is reasonable, prudent and necessary for the
Company contractually to obligate itself to indemnify Indemnitee to the fullest
extent permitted by applicable law, including Section 145 of the Delaware
General Corporation Law, as in effect from time to time so that Indemnitee will
continue to serve the Company free from undue concern that Indemnitee will not
be so indemnified.

AGREEMENTS

1.     Definitions. For purposes of this Agreement:

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

     1.2 “Certificate’ means the Restated Certificate of Incorporation of the
Company, as it may be amended from time to time.

     1.3 “Change in Control” means the occurrence of any of the following: (1)
the direct or indirect sale, transfer, conveyance or other disposition (other
than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or assets of the
Company and its subsidiaries taken as a whole to any “person” (as that term is
used in Section 13(d)(3) of the Exchange Act, or any successor provision); (2)
the adoption of a plan relating to the liquidation or dissolution of the
Company; (3) the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any
“person” (as defined above), becomes the beneficial owner (as the term is
defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act, or any successor
provisions), directly or indirectly, of more than 50% of the voting stock of
the Company that is entitled to vote in the election of the board of directors
(measured by voting power rather than number of shares); or (4) the first day
on which a majority of the members of the Board are not Continuing Directors.

     1.4 “Continuing Directors” means, as of any date of determination, any
member of the Board who: (1) was a member of such Board on the date of this
Agreement, or (2) was nominated for election or elected to such Board with the
approval of a majority of the Continuing Directors who were members of such
Board at the time of such nomination or election.

     1.5 “Damages” means any and all losses, claims, damages, liabilities or
Expenses, including, without limitation, attorneys’ fees, judgments, fines,
ERISA excise taxes or penalties, witness fees, amounts paid in settlement and
other Expenses incurred in connection with a Proceeding (including all
interest, assessments and other charges paid or payable in connection with or
in respect of such Damages).

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     1.6 “DGCL” means the Delaware General Corporation Law.

     1.7 “Disinterested Directors” means those directors of the Company who are
not and were not parties to the Proceeding in respect of which indemnification
is sought by Indemnitee.

     1.8 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     1.9 “Expense Advance” means the advance by the Company of Expenses
incurred by Indemnitee in any Proceeding, as such Expenses are incurred, and in
advance of such Proceeding’s final disposition.

     1.10 “Expenses” include attorneys’ fees and all other costs of any type or
nature whatsoever, including any and all expenses and obligations paid or
incurred in connection with investigating, defending, being a witness in,
participating in (including on appeal), or preparing to defend, be a witness in
or participate in any Proceeding or establishing or enforcing a right to
indemnification under this Agreement.

     1.11 “Independent Counsel” means an attorney, a law firm, or a member of a
law firm who (or which) is experienced in legal matters relating to
indemnification of directors and officers and at the time retained neither then
is, nor in the prior five years has been, retained to represent: (i) the
Company or Indemnitee in any other matter material to either such party; or
(ii) any other party to the Proceeding giving rise to a claim for
indemnification hereunder. Notwithstanding the foregoing, the term
“Independent Counsel” shall not include any person who, under the applicable
standards of professional conduct then prevailing, would have a conflict of
interest in representing either the Company or Indemnitee in an action to
determine Indemnitee’s rights under this Agreement.

     1.12 “Potential Change of Control” shall be deemed to have occurred if (i)
the Company enters into an agreement the consummation of which would result in
the occurrence of a Change in Control, (ii) any person (including the Company)
publicly announces an intention to take or to consider making actions which if
consummated would constitute a Change in Control, or (iii) the Board of the
Company adopts a resolution to the effect that, for purposes of this Agreement,
a Potential Change in Control has occurred.

     1.13 “Proceeding” means any event or occurrence and any completed, actual,
pending or threatened action, suit, claim or proceeding (including any
arbitration or alternative dispute resolution proceeding), whether civil,
criminal, administrative or investigative (including an action by or in the
right of the Company) and whether formal or informal, in which Indemnitee is,
was or becomes involved (including as a witness) by reason of the fact that
Indemnitee is or was a director, or officer, of the Company or any of its
subsidiaries or that Indemnitee is or was serving at the request of the Company
as a director or officer, of another corporation or as a manager/member of a
limited liability company or as a partner, trustee or agent of a partnership
joint venture, trust or other enterprise, including service with respect to an
employee benefit plan, whether the basis of such proceeding is alleged action
(or inaction) by Indemnitee in an official capacity as such director,
officer/manager/member, partner, trustee or agent or in any other capacity
while serving as a director, officer/manager/member, partner, trustee or agent;
provided, however, that, except with respect to an action to enforce the
provisions of this Agreement, prior to a Change of Control”, “Proceeding” shall
not include any action, suit, claim or proceeding including any counter claim,
cross claim or third-party claim instituted by or at the direction of
Indemnitee, unless such action, suit, claim or proceeding is or was authorized
by the Board.

     1.14 “SEC” means the Securities and Exchange Commission.

2.     Agreement to Serve. In consideration of the protection afforded by this
Agreement, if Indemnitee is a director of the Company, he or she agrees to
serve at least for 90 days after the effective date of this Agreement as a
director and not to resign voluntarily during such period without the written
consent of a majority of the Board. If Indemnitee is an officer of the Company
not serving under an employment contract, he or she agrees to serve in such
capacity at least for 90 days after the effective date of this Agreement and
not to resign voluntarily during such period without the written consent of a
majority of the Board. Following the applicable period set forth above,
Indemnitee agrees to continue to serve in such capacity at the will of the
Company (or under separate agreement, if such agreement exists) so long as he
or she is duly appointed or elected and qualified in accordance with the
applicable provisions of the Company’s or any of its subsidiaries
organizational documents or until such time as he or she tenders his or her
resignation in writing. Nothing contained in this Agreement is intended to
create in Indemnitee any right to continue employment.

3.     Indemnity Of Indemnitee.

     3.1 Scope. The Company hereby agrees to indemnify Indemnitee and to hold
Indemnitee free and harmless from any and all Damages in connection with any
Proceeding, to the fullest extent permitted by law, notwithstanding that the
basis for such indemnification is not specifically enumerated in this
Agreement, the Certificate, the DGCL, any other statute or otherwise. In the

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event of any change, after the date of this Agreement, in any applicable
law, the DGCL or rule regarding the right of a Delaware corporation to
indemnify a member of its board of directors or an officer, such change, to the
extent it would expand Indemnitee’s rights hereunder, shall be included within
Indemnitee’s rights and the Company’s obligations hereunder, and, to the extent
it would narrow Indemnitee’s rights or the Company’s obligations hereunder,
shall be excluded from this Agreement; provided, however, that any change
required by applicable laws, the DGCL, any statute, rule or regulation which is
fully and finally determined by a court of competent jurisdiction to be applied
to this Agreement shall be so applied regardless of whether the effect of such
change is to narrow Indemnitee’s rights or the Company’s obligations hereunder.

     3.2 Nonexclusivity. The indemnification provided by this Agreement shall
not be deemed exclusive of any rights to which Indemnitee may be entitled under
the Certificate, any agreement, any vote of stockholders or Disinterested
Directors, the DGCL or otherwise, whether as to action in Indemnitee’s official
capacity or otherwise.

     3.3 Procedure For Determination Of Entitlement To Indemnification.

          (a) Submission of Request For Indemnification. To obtain indemnification
under this Agreement in connection with any Proceeding, and for the duration
thereof, Indemnitee shall submit to the Company a written request, including
therein or therewith such documentation and information as is reasonably
available to Indemnitee and is reasonably necessary to determine whether and to
what extent Indemnitee is entitled to indemnification. The Secretary of the
Company shall, promptly upon receipt of any such request for indemnification,
advise the Board in writing that Indemnitee has requested indemnification.

          (b) Presumption of Right to Indemnification. It shall initially be
presumed in all cases that Indemnitee is entitled to indemnification, that
Indemnitee may establish a conclusive presumption of any fact necessary to such
a determination by delivering to the Company a declaration made under penalty
of perjury that such fact is true, unless the Company shall deliver to
Indemnitee a written notice stating that the Company believes that a
determination is required under applicable law pursuant to Section 3.3(c) as to
whether Indemnitee is entitled to indemnification hereunder, and the Company is
promptly and diligently proceeding with such determination. In such case, such
notice will be given to Indemnitee within ten (10) days after the Company’s
receipt of Indemnitee’s initial written request for indemnification. If the
Company does not give such notice within such ten (10) day period, Indemnitee
shall be conclusively presumed to be entitled to indemnification hereunder, and
in such case the Company hereby agrees, to the fullest extent permitted by law,
not to assert otherwise.

          (c) Determination of Right. If the DGCL or applicable case law requires
that a determination of Indemnitee’s entitlement to indemnification be made as
a condition to Indemnification under this Agreement, then upon written request
by Indemnitee for indemnification, such determination shall be made:

               (i) if a Change in Control shall have occurred, by Independent Counsel,
unless Indemnitee shall request that such determination be made by the Board or
the stockholders, in which case such determination shall be made in the manner
provided for in clause (ii) of this Section 3.3(c), provided, however, that if
such determination shall have been made by Independent Counsel, a copy of such
written opinion shall be delivered to Indemnitee; or

               (ii) if a Change of Control shall not have occurred, (A) by the Board by a
majority vote of Disinterested Directors (even though less than a quorum) or
(B) if such Disinterested Directors so direct, either (x) by a committee of
Disinterested Directors, (y) by Independent Counsel in a written opinion to the
Board, a copy of which shall be delivered to Indemnitee, or (z) by the
stockholders of the Company, as determined by such quorum of Disinterested
Directors, or a quorum of the Board, as the case may be.

In either case, such determination shall be made within twenty (20) days of
Indemnitee’s request for indemnification. The cost of any solicitation of the
stockholders by the Company to obtain a determination under this Section 3.3
shall be paid by the Company. The Company may, at its option and pursuant to
the determination under this Section 3.3(c), defer a decision on whether
Indemnitee is entitled to indemnification or the amount of indemnification to
which Indemnitee is entitled, if it believes, in good faith, that additional
progress in the Proceeding is necessary before such final determination is
made, provided that the Company provides Indemnification to the extent of
Expense Advances, subject to Section 4.2, during such time as it defers such
determination.

          (d) Payment; Cooperation. If Indemnitee is entitled to Indemnification
pursuant to Section 3.3(b) or pursuant to a determination under Section 3.3(c),
payment to Indemnitee shall be made within ten (10) days after entitlement or a
determination of entitlement, as the case may be. Payment of Expense Advances
pending any final determination of entitlement shall be made in each case
within ten (10) days of request therefor. Indemnitee shall cooperate with the
person, persons or entity making any determination if such determination is
required under Section 3.3 (c), including without limitation providing to such
person, persons or entity upon reasonable advance request any documentation or
information which is not privileged or otherwise protected from disclosure and
which is reasonably available to Indemnitee and reasonably necessary to such
determination. Any costs or expenses (including attorneys’ fees and
disbursements) incurred by Indemnitee in so cooperating with the person,
persons

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or entity making such determination shall be borne by the Company
(irrespective of the determination as to Indemnitee’s entitlement to
indemnification) and the Company hereby indemnifies and agrees to hold
Indemnitee harmless therefrom.

          (e) Selection of Independent Counsel. If Independent Counsel is required
pursuant to Section 3.3(c), such Independent Counsel shall be selected as
follows: (i) if a Change of Control shall not have occurred, Independent
Counsel shall be selected by the Board and approved by the Indemnitee (which
approval shall not be unreasonably withheld); or (ii) if a Change of Control
shall have occurred, Independent Counsel shall be selected by Indemnitee
(unless Indemnitee shall request that such selection be made by the Board, in
which event (i) shall apply), and Indemnitee shall give written notice to the
Company advising it of the identity of Independent Counsel so selected. The
Company may, within seven days after such written notice of selection shall
have been given, deliver to the Indemnitee a written objection to such
selection. Such objection may be asserted only on the ground that Independent
Counsel so selected does not meet the requirements of Independent Counsel as
defined herein and the objection shall set forth with particularity the factual
basis of such assertion. If such written objection is made, Independent
Counsel so selected may not serve as Independent Counsel unless and until a
court has determined that such objection is without merit. If, within ten (10)
days after submission by Indemnitee of a written request for indemnification,
no Independent Counsel shall have been selected and not objected to, either the
Company or Indemnitee may petition the Court of Chancery of the State of
Delaware, or any other court of competent jurisdiction, for resolution of any
objection which shall have been made by the Company or Indemnitee to the
other’s selection of Independent counsel and/or for appointment as Independent
Counsel of a person selected by such court or by such other person as such
court shall designate, and the person with respect to whom an objection is so
resolved or the person so appointed shall act as Independent Counsel. The
Company shall pay any and all reasonable fees and Expenses of Independent
Counsel incurred by such Independent Counsel in connection with its actions
pursuant to this Agreement, and the Company shall pay all reasonable fees and
Expenses incident to the procedures of this Section, regardless of the manner
in which such Independent Counsel was selected or appointed.

     3.4 Contribution/Partial Indemnification.

          (a) If the indemnification provided under Section 3.1 is unavailable by
reason of a court decision, based on grounds other than any of those set forth
in paragraphs (b) through (d) of Section 6.1, then, in respect of any
Proceeding in which the Company is jointly liable with Indemnitee (or would be
if joined in such Proceeding), the Company shall contribute to the amount of
Damages (including attorneys’ fees) actually and reasonably incurred and paid
or payable by Indemnitee in such proportion as is appropriate to reflect (i)
the relative benefits received by the Company on the one hand and Indemnitee on
the other from the transaction from which such Proceeding arose and (ii) the
relative fault of the Company on the one hand and of Indemnitee on the other in
connection with the events that resulted in such Damages as well as any other
relevant equitable considerations. The relative fault of the Company on the
one hand and of Indemnitee on the other shall be determined by reference to,
among other things, the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent the circumstances resulting
in such Damages. The Company agrees that it would not be just and equitable if
contribution pursuant to this Section were determined by pro rata allocation or
any other method of allocation that does not take account of the foregoing
equitable considerations.

          (b) If Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for a portion, but not all, of the Damages, the
Company shall nevertheless indemnity Indemnitee for the portion thereof to
which Indemnitee is entitled.

     3.5 Survival. The indemnification and contribution provided under this
Agreement shall apply to any and all Proceedings, notwithstanding that
Indemnitee has ceased to serve the Company or at the request of the Company,
and shall continue so long as Indemnitee shall be subject to any possible
Proceeding, whether civil, criminal or investigative, by reason of the fact
that Indemnitee was a director or officer of the Company or serving in any
other capacity at the request of the Company.

4.     Expense Advances.

     4.1 Generally. The right to indemnification conferred by Section 3.1
shall include the right to Expense Advances. Unless and until a determination
shall have been made under applicable law or pursuant to Section 3.3(c) that
Indemnitee is not entitled to indemnification hereunder, then, subject to
Section 4.2, the Company shall provide Expense Advances pending final
resolution of the Proceeding which gave rise to the request for
Indemnification. Payment of such Expense Advances shall be made within two (2)
business days of request therefor. To the extent permitted under applicable
law and prior to the completion of any Proceeding, if a determination shall
have been made that Indemnitee is not entitled to indemnification hereunder and
notwithstanding such determination, Indemnitee commences an Enforcement Action
to enforce his right to indemnification hereunder, the Company shall provide
Expense Advances pending resolution of such Enforcement Action.

     4.2 Conditions To Expense Advances. The Company’s obligation to provide
Expense Advances is subject to the following conditions:

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          (a) Undertaking. If the Proceeding arose in connection with Indemnitee’s
service as a director or officer of the Company, then Indemnitee or
Indemnitee’s representative shall have executed and delivered to the Company an
undertaking, which need not be secured and shall be accepted without reference
to Indemnitee’s financial ability to make repayment, by or on behalf of
Indemnitee, to repay all Expense Advances if it shall ultimately be determined
by a final, unappealable decision rendered by a court having jurisdiction over
the parties that Indemnitee is not entitled to be indemnified by the Company.

          (b) Cooperation. Indemnitee shall give the Company such information and
cooperation in the defense of any Proceeding as the Company may reasonably
request and as shall be within Indemnitee’s power.

5.     Procedures For Enforcement.

     5.1 Enforcement. In the event that any claim for indemnity, whether an
Expense Advance or otherwise, is made hereunder and is not paid in full within
60 days after written notice of such claim is delivered to the Company,
Indemnitee may, but need not, at any time thereafter bring suit against the
Company to recover the unpaid amount of the claim (an “Enforcement Action”).

     5.2 Presumptions In Enforcement Action. In any Enforcement Action, the
following presumptions (and limitation on presumptions) shall apply:

          (a) Inducement. The Company expressly affirms and agrees that it has
entered into this Agreement and assumed the obligations imposed on it hereunder
to induce Indemnitee to become or to continue as a director or officer of the
Company;

          (b) No Presumption From Determination. Neither (i) the failure of the
Company (including the Board, Independent Counsel or the Company’s
stockholders) to have made a determination prior to the commencement of the
Enforcement Action that indemnification of Indemnitee is proper in the
circumstances; (ii) an actual determination by the Company, the Board,
Independent Counsel or stockholders that Indemnitee is not entitled to
indemnification; or (iii) a deferral by the Company of a decision on
indemnification under Section 3.3(c) shall be a defense to the Enforcement
Action or create a presumption that Indemnitee is not entitled to
indemnification hereunder; and

          (c) Controlled Subsidiaries. If Indemnitee is or was serving as a
director or officer of an entity of which a majority of the shares entitled to
vote in the election of its directors is held by the Company, or in a
management capacity in a partnership, limited liability company, joint venture,
trust or other enterprise of which the Company or a wholly owned subsidiary of
the Company is a general partner or has a majority ownership, then Indemnitee
shall conclusively be deemed to be serving in such capacity at the Company’s
request.

     5.3 Attorneys’ Fees And Expenses For Enforcement Action. In the event
Indemnitee is required to bring an Enforcement Action, the Company shall pay
all of Indemnitee’s fees and Expenses in bringing and pursuing the Enforcement
Action (including attorneys’ fees at any stage, including on appeal); provided,
however, that the Company shall not be required to provide such payment for
such attorneys’ fees or Expenses if a court of competent jurisdiction
determines that each of the material assertions made by Indemnitee in such
Enforcement Action was not made in good faith.

     5.4 Indemnitee Not Required to Pursue Other Remedies. Indemnitee shall
not be required to exercise any rights against any other parties (such as under
any insurance policy purchased by the Company, Indemnitee or any other person
or entity) before Indemnitee enforces this Agreement. However, to the extent
the Company actually indemnifies Indemnitee or advances Expenses, the Company
shall be entitled to enforce any such rights which Indemnitee may have against
third parties. Indemnitee shall assist the Company in enforcing those rights
if the Company pays Indemnitee’s reasonable costs and Expenses of doing so.

6.     Limitations On Indemnity; Mutual Acknowledgment.

     6.1 Limitations On Indemnity. No indemnity pursuant to this Agreement
shall be provided by the Company:

          (a) Short-Swing Profits. On account of any suit in which a final,
unappealable judgment is rendered against Indemnitee for an accounting of
profits made from the purchase or sale by Indemnitee of securities of the
Company in violation of the provisions of Section 16(b) of the Exchange Act;

          (b) Paid By Insurance. For Damages that have been paid directly to
Indemnitee by an insurance carrier under a policy of directors’ and officers’
liability insurance maintained by the Company;

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          (c) Unlawful Payments. With respect to remuneration paid to Indemnitee if
it shall be determined by a final judgment or other final adjudication that
such remuneration was in violation of law;

          (d) Unlawful Conduct. On account of Indemnitee’s conduct which is finally
adjudged to have been intentional misconduct, a knowing violation of law, a
violation of Section 174 of the DGCL or a transaction from which Indemnitee
derived an improper personal benefit; or

          (e) Court Determination. If a final decision by a court having
jurisdiction in the matter shall determine that such indemnification is not
lawful.

     6.2 SEC Undertaking. Indemnitee understands and acknowledges that the
Company may be required in the future to undertake with the SEC to submit in
certain circumstances the question of indemnification to a court for a
determination of the Company’s right under public policy to indemnify
Indemnitee and Indemnitee agrees that in such event, the Company shall not be
required to make any payment hereunder unless and until such matter shall have
been so determined.

7.     Notification And Defense Of Claim.

     7.1 Notification. Promptly after receipt by Indemnitee of notice of the
commencement of any Proceeding, Indemnitee shall, if a claim in respect thereof
is to be made against the Company under this Agreement, notify the Company of
the commencement thereof; but the omission so to notify the Company will not,
however, relieve the Company from any liability which it may have to Indemnitee
under this Agreement unless and only to the extent that such omission can be
shown to have materially prejudiced the Company’s position.

     7.2 Defense Of Claim. With respect to any such Proceeding as to which
Indemnitee notifies the Company of the commencement thereof, the Company may
participate therein at its own expense or the Company, jointly with any other
indemnifying party similarly notified, may assume the defense thereof, with
counsel satisfactory to Indemnitee. After notice from the Company to
Indemnitee of its election so to assume the defense thereof, the Company shall
not be liable to Indemnitee under this Agreement for any legal or other
Expenses (other than reasonable costs of investigation) subsequently incurred
by Indemnitee in connection with the defense thereof unless (i) the employment
of counsel by Indemnitee has been authorized by the Company, (ii) Indemnitee
shall have reasonably concluded that there may be a conflict of interest
between the Company (or any other person or persons included in the joint
defense) and Indemnitee in the conduct of the defense of such action, or (iii)
the Company shall not, in fact, have employed counsel to assume the defense of
such action, in each of which cases the fees and expenses of counsel shall be
at the Company’s expense. The Company shall not be entitled to assume the
defense of any Proceeding brought by or on behalf of the Company or as to which
Indemnitee shall have reasonably made the conclusion provided for in clause
(ii) of this Section 7.2.

     7.3 Settlement By Indemnitee. The Company shall not be liable to
Indemnitee under this Agreement for any amounts paid in settlement of any
Proceeding effected without its written consent.

     7.4 Settlement By Company. The Company shall not settle any action or
claim in any manner that would impose any penalty or limitation on Indemnitee
without Indemnitee’s written consent.

     7.5 Withholding Consent to Settlement. Neither the Company nor Indemnitee
shall unreasonably withhold its consent to any proposed settlement, provided
that Indemnitee may withhold consent to any settlement that does not provide a
complete release of Indemnitee.

8.     Directors’ and Officers’ Liability Insurance.

     8.1 Insurance Not Required. The Company shall, from time to time,
make the good faith determination whether or not it is practicable for the
Company to obtain and maintain a policy or policies of insurance with reputable
insurance companies providing the officers and directors of the Company with
coverage for losses from wrongful acts, or to ensure the Company’s performance
of its indemnification obligations under this Agreement. Among other
considerations, the Company will weigh the costs of obtaining such insurance
coverage against the protection afforded by such coverage. Notwithstanding the
foregoing, the Company shall have no obligation to obtain or maintain such
insurance if the Company determines in good faith that such insurance is not
reasonably available, if the premium costs for such insurance are
disproportionate to the amount of the coverage provided, if the coverage
provided by such insurance is limited by exclusions so as to provide an
insufficient benefit, or if Indemnitee is covered by similar insurance
maintained by any entity who Indemnitee was serving at the request of the
Company.

     8.2 Notice To Insurers. If, at the time the Company becomes aware of
any claim which may give rise to an obligation to indemnify Indemnitee
hereunder, the Company has director and officer liability insurance in effect,
the Company shall give prompt notice of such claim to the insurers in
accordance with the procedures set forth in the respective policies. The
Company shall

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thereafter take all necessary or desirable action to cause such insurers to
pay, on behalf of the Indemnitee, all amounts payable as a result of such
proceeding in accordance with the terms of such policies.

9.     General.

     9.1 Notices. All notices, claims and other communications hereunder shall
be in writing and made by hand delivery, registered or certified mail (postage
prepaid, return receipt requested), facsimile or overnight air courier
guaranteeing next-day delivery:

	 	 	If to the Company, to:
	 
	 	 	WCI Communities, Inc.

24301 Walden Center Dr.

Bonita Springs, FL 34134

Attn: General Counsel

	 
	 	 	If to Indemnitee, to

or to such other address as either party may from time to time furnish to the
other party by a notice given in accordance with the provisions of this Section
9.1. Communications shall be deemed to have been duly given if (i) personally
delivered, at the time delivered, (ii) mailed, five days after deposited in the
mails, registered or certified mail, postage prepaid, (iii) sent by facsimile
transmission, upon confirmation of receipt, and (iv) sent by any other means,
upon receipt.

     9.2 Severability. Nothing in this Agreement is intended to require or
shall be construed as requiring the Company to do or to fail to do any act in
violation of applicable law. The Company’s inability, pursuant to court order,
to perform its obligations under this Agreement shall not constitute a breach
of this Agreement. The provisions of this Agreement shall be severable, and if
this Agreement or any portion hereof is held to be invalid, illegal or
unenforceable for any reason whatsoever, (i) the validity, legality and
enforceability of the remaining provisions of the Agreement (including, without
limitation, all portions of any paragraphs of this Agreement containing any
such provision) shall not in any way be affected or impaired thereby, and (ii)
to the fullest extent possible, the provisions of this Agreement (including,
without limitation, all portions of any paragraph of this Agreement containing
any such provision held to be invalid, illegal or unenforceable, that are not
themselves invalid, illegal or unenforceable) shall be construed so as to give
effect to the intent manifested by the provision held invalid, illegal or
unenforceable.

     9.3 Choice of Law. This Agreement shall be interpreted and enforced in
accordance with the laws of the State of Delaware applicable to agreements
entered into and to be fully performed therein.

     9.4 Successors and Assigns. This Agreement shall be binding on Indemnitee
and on the Company and its successors and assigns (including, without
limitation, any direct or indirect successor by purchase or consolidation, any
direct or indirect transferee of all or substantially all of its assets and any
successor by merger or otherwise by operation of law), and shall inure to the
benefit of Indemnitee and Indemnitee’s heirs, personal representatives and
assigns and to the benefit of the Company and its successors and assigns. The
Company shall not effect any sale of substantially all of its assets, merger,
consolidation or other reorganization in which it is not the surviving entity,
unless the surviving entity agrees in writing to assume all such obligations of
the Company under this Agreement.

     9.5 Amendments. No amendment, modification, termination or cancellation
of this Agreement shall be effective unless in writing signed by both parties
hereto.

     9.6 Headings. The headings are included in this Agreement for convenience
and shall not be held in interpreting the provisions of this Agreement.

     9.7 Deposit of Funds. In the Event of a Potential Change of Control,
Liquidation or Bankruptcy.

67

 

          (a) Timing and Amounts. In the event of a Potential Change of Control or
in the event that the Company decides to voluntarily dissolve or to file a
voluntary petition for relief under applicable bankruptcy, moratorium or
similar laws (collectively referred to herein as a “Bankruptcy”), then not
later than two business days following a written request by Indemnitee or, if
earlier, ten days prior to such Bankruptcy, the Company shall deposit in trust
(the “Trust”) for the exclusive benefit of Indemnitee a cash amount equal to
the sum of (i) any and all amounts previously authorized to be paid to
Indemnitee hereunder, but unpaid as of such date and (ii) any and all amounts
reasonably anticipated to be incurred by Indemnitee in the defense of such
Proceeding and (iii) the maximum amount which the Company could reasonably be
expected to incur, in addition to the amounts in clauses (ii) and (iii) of
Section 9.7(a) in settlement of or payment of a judgment in such Proceeding on
behalf of Indemnitee, including all fines, penalties, interest, settlement and
other amounts, less the amount of insurance available to pay such amounts and
for which the issuer of such insurance has not made a reservation of right.
The terms of the Trust shall provide that, upon a Change in Control or
Bankruptcy, (w) the Trust shall not be revoked or the principal thereof
invaded, without the written consent of Indemnitee, (x) the trustee of the
Trust (the “Trustee”) shall, subject to Section 4.2, advance to Indemnitee,
within two business days of a request by Indemnitee, any and all Expense
Advances, (y) the Trust shall continue to be funded by the Company in
accordance with the funding obligation set forth above, and (z) the Trustee
shall promptly pay to Indemnitee all amounts for which Idemnitee shall be
entitled to indemnification pursuant to this Agreement or otherwise. Nothing
in Section 9.7 shall relieve the Company of any of its obligations under this
Agreement, the Certificate, any agreement now or hereafter in effect, any vote
of stockholders or Disinterested Directors, or the DGCL.

          (b) Deposit in Escrow. The amounts deposited in Trust shall be deposited
by the Company with the Trustee which shall be a national bank or Trust company
selected by the Indemnitee, with the consent of the Company, which consent the
Company shall not unreasonably withhold, and shall be subject to an escrow
agreement in customary form. The cost of the Trust shall be a cost of the
Company, and the estimated amount of such cost shall also be deposited by the
Company in the Trust.

          (c) Determination of Amount. The amounts to be deposited pursuant to
clauses (ii) and (iii) of Section 9.7 (a) shall be determined by agreement
between the Company and Indemnitee. If the Indemnitee and the Company cannot
agree on the amounts to be deposited pursuant to clauses (ii) and (iii), then
such amounts shall be determined by the Company’s independent accountants, or,
if such determination would compromise such accountants’ independence, another
nationally recognized accounting firm, considering the amount which such
accountants believe the Company should reserve pursuant to generally accepted
accounting principles to cover such liability if (x) an unfavorable outcome in
such Proceeding were likely, and (y) the Company were obligated to pay the full
cost of any liability resulting from such Proceeding, including defense costs.
Pending any such determination, if at the time for such deposit, the amount of
insurance maintained by the Company to cover the Indemnitee’s and/or the
Company’s liability which could result from such Proceeding is less than the
highest amount of such coverage maintained by the Company at any time between
the date hereof and the date of such deposit (such difference is the “Insurance
Reduction”), the Company shall deposit an amount not less than the Insurance
Reduction into the Trust.

          (d) Return of Unused Amounts to the Company. Any amounts deposited in the
escrow which are no longer required for the purposes intended by this Section
9.7 shall be returned to the Company, provided however, that amounts shall only
be deemed to no longer be required when the Proceeding shall have been settled,
or when it shall have been finally determined by a court of competent
jurisdiction.

     9.8 Presumption. For purposes of this Agreement, to the fullest extent
permitted by law, the termination of any Proceeding (whether with or without
court approval) or conviction, or upon a plea of nolo contendere, or its
equivalent, shall not create a presumption that Indemnitee did not meet any
particular standard or conduct or have any particular belief or that a court
had determined that indemnification is not permitted by applicable law.

     9.9 Subrogation. In the event of payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all documents required and shall
do all acts that may be necessary to secure such rights and to enable the
Company effectively to bring suit to enforce such rights.

     9.10 Gender. All pronouns contained herein and any variation thereof
shall be deemed to refer to the masculine, feminine or neuter, singular or
plural, as the identity of the parties hereto may require.

     9.11 Integration and Entire Agreement. This Agreement sets forth the
entire understanding between the parties hereto and supersedes and merges all
previous written and oral negotiations, commitments, understandings and
agreements relating to the subject matter hereof between the parties hereto.

     9.12 Limitations Period. No legal action shall be brought and no cause of
action shall be asserted by or in the right of the Company or any affiliate of
the Company against Indemnitee, Indemnitee’s spouse, heirs, executors or
personal or legal representatives after the expiration of two years from the
date of accrual of such cause of action, and any claim or cause of action of
the Company or its affiliate shall be extinguished and deemed released unless
asserted by the timely filing of a legal action within

68

 

such two year period; provided, however, that if any shorter period of
limitation is otherwise applicable to any such cause of action such shorter
period shall govern.

     9.13 Assumption of Liability by the Company. If Indemnitee is deceased
and is entitled to indemnification under any provision of this Agreement, the
Company shall indemnify Indemnitee’s estate and his or her spouse, heirs,
administrators and executors against, and the Company shall, and does hereby
agree to assume, any and all Expenses, penalties and fines actually and
reasonably incurred by or for Indemnitee or his or her estate, in connection
with the investigation, defense, settlement or appeal of any such action, suit
or proceeding. Further, when requested in writing by the spouse of Indemnitee,
and/or the heirs, executors and administrators of Indemnitee’s estate, the
Company shall provide appropriate evidence of the Company’s agreement set out
herein, to indemnify Indemnitee against, and to itself assume, such costs,
liabilities and Expenses.

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

	 	 	 	 	 
	INDEMNITEE:	 	WCI COMMUNITIES, INC.
	 	 	a Delaware Company
	 	 	 	 	 
	

	 	
By:	 	

	[Signature of Indemnitee]	 	
Title:	 	

69<PAGE>

                                                                   EXHIBIT 10.10

                SUPPLEMENTAL CONTRIBUTING EMPLOYEE OWNERSHIP PLAN

                    As amended and restated January 30, 2003

         Arch Chemicals, Inc. ("Arch") established a Supplemental Contributing
Employee Ownership Plan (the "Plan" or "SCEOP"), effective February 8, 1999, the
effective date of the spin-off of Arch from Olin Corporation (the "Original
Effective Date"). The Plan was amended and restated effective March 1, 2001, and
is hereby further amended and restated effective January 30, 2003. The terms of
this Plan document shall apply to periods on and after January 30, 2003 only.
Prior plan documents govern the administration of the Plan during prior periods.

         The Plan is intended to be an unfunded, nonqualified deferred
compensation plan for certain management and highly compensated employees, as
described in Section 201(2) and 301(a)(3) of the Employee Retirement Income
Security Act ("ERISA"). The purpose of this Plan is to permit certain executive
employees of Arch, whose contributions to the Arch Chemicals, Inc. Contributing
Employee Ownership Plan (the "CEOP") are limited under Sections 401(a)(17) of
the Internal Revenue Code of 1986 and the regulations promulgated thereunder
(the "Code"), with certain supplemental benefits to make up for such
Code-imposed limitations. On and after January 30, 2003, the Plan is also
intended to allow certain management and highly compensated employees who have
maximized contributions under the CEOP to have additional opportunities to defer
compensation and to receive employer matching contributions.

                                    ARTICLE I
                       DEFINITIONS AND GENERAL PROVISIONS

         1.1      Except as otherwise provided herein, terms defined in the CEOP
are used herein with the meanings ascribed to them in the CEOP. In addition,
when used herein, the following definitions shall apply:

                  "Arch Phantom Units" means phantom shares of the CEOP's Arch
         Common Stock Fund credited under the SCEOP.

                  "CEOP Percentage" means, with respect to a SCEOP Participant,
         the annual percentage by which such Participant reduces his or her
         Maximum Eligible Compensation on either a before-tax or after-tax basis
         in calculating Contributions made to the CEOP (whether as a result of
         elective, or automatic, enrollment); provided, however, that, if a
         Participant's CEOP percentage exceeds six percent (6%), the Participant
         may elect, for purposes of this Plan, to limit the CEOP percentage used
         under this Plan to six percent (6%).

<PAGE>

                  "Company" or "Arch" means Arch Chemicals, Inc. and its
         affiliated companies.

                  "Compensation" has the same meaning as under the CEOP, except
         that it is not subject to the maximum dollar limitation on compensation
         taken into account for purposes of the CEOP under Section 401(a)(17) of
         the Code.

                  "Dividend Equivalents" means (i) with respect to the Arch
         Phantom Units held in a SCEOP Account of a SCEOP Participant, the
         dollar amount of regular or special dividends actually paid in cash
         from time to time on the actual number of shares of Arch Common Stock
         reflected in such Arch Phantom Units; and (ii) with respect to the Olin
         Phantom Units held in a SCEOP Account of an Arch Participant, the
         dollar amount of regular or special dividends actually paid in cash
         from time to time on the actual number of shares of Olin Common Stock
         reflected in such Olin Phantom Units. Any Dividend Equivalents shall be
         deemed reinvested solely in Arch Phantom Units.

                  "Excess Company Matching Contribution" means, with respect to
         a SCEOP Participant for a Plan Year, an amount derived by multiplying
         (i) the percentage used in calculating the Company Matching
         Contribution (currently, 100% of the first $25 per month, and 50% of
         the Participant's Contribution in excess of $25 per month) under the
         CEOP, as such percentage changes from time to time, by (ii) the annual
         SCEOP Participant Contribution for that Participant; provided that, if
         the Participant's CEOP Percentage exceeds six percent (6%), the SCEOP
         Participant Contribution will be calculated using six percent (6%) for
         the CEOP Percentage when calculating the Excess Company Matching
         Contribution.

                  "Excess Performance Contribution" means with respect to a
         SCEOP Participant for a Plan Year, the amount derived by multiplying
         (i) the percentage used in calculating the Performance Matching
         Contribution under the formula contained in the CEOP that is applicable
         to a SCEOP Participant for that year, if any, by (ii) the SCEOP
         Participant Contribution of that Participant for such year; provided
         that if such Participant's CEOP Percentage exceeds six percent (6%),
         the SCEOP Participant Contribution will be calculated using six percent
         (6%) for the CEOP Percentage when calculating the Excess Performance
         Contribution.

                  "Maximum Eligible Compensation" means the annual maximum
         amount of Compensation under Section 401(a)(17) of the Code from which
         a Participant is permitted to make Contributions to the CEOP, as such
         maximum amount is adjusted from time to time under the Code.

                  "Olin Phantom Units" means phantom shares of the CEOP's Olin
         Common Stock Fund credited under the SCEOP.

                  "Plan Year" means a twelve-month period ending on December 31.

                                       2
<PAGE>

                  "SCEOP Participant" or "Arch Participant" means a full-time
         salaried employee (which term shall be deemed to include officers) on
         the active payroll of the Company and its affiliates who has at least
         1182 Hay Points and who has been selected by the Plan Administrator to
         participate in this plan.

                  "SCEOP Account" for a SCEOP Participant means the Account
         established under the SCEOP for such Participant holding Arch Phantom
         Units, Olin Phantom Units and/or any other phantom securities or
         hypothetical investment units created herein.

                  "SCEOP Participant Contribution" with respect to a SCEOP
         Participant shall mean the annual amount by which the SCEOP Participant
         has elected to reduce his or her Compensation under this Plan.

                                   ARTICLE II
                          ELIGIBILITY AND PARTICIPATION

         2.1      Any employee of the Company who

                  (a) is a management employee;

                  (b) is a "highly compensated employee" within the meaning of
         Code Section 414(q);

                  (c) is participating in the CEOP; and

                  (d) who has at least 1182 Hay Points and has been selected by
         the Plan Administrator

shall be eligible to participate in this Plan (an "Eligible Employee").

         2.2      Each Eligible Employee wishing to participate in this Plan
must execute and file a salary reduction agreement in a form acceptable to the
Plan Administrator. Initially, such agreement to reduce Compensation shall be
filed within thirty (30) days following such individual becoming an Eligible
Employee. An Eligible Employee not filing such an agreement within the thirty
(30) day period referred to in the preceding sentence must thereafter file such
agreement to reduce Compensation by December 1 (or such other date in December
as shall be determined by the Plan Administrator) of the calendar year prior to
the beginning of the Plan Year for which it will be effective and prior to the
calendar year in which such Compensation would otherwise be earned. Once filed,
agreements to reduce Compensation shall remain in effect for subsequent Plan
Years unless revoked by the Participant in writing in a form acceptable to the
Plan Administrator.

         2.3      Any election to reduce salary shall be irrevocable for the
Plan Year to which it relates, provided, however, that during a Plan Year a
Participant may elect to cease all salary

                                       3
<PAGE>

reductions for the remainder of the Plan Year, in which case, no subsequent
election shall be effective until the beginning of the next Plan Year.

         2.4      No salary reduction election shall be given effect under this
Plan until the Participant has contributed to the CEOP the maximum amount
permitted by the CEOP and by applicable law for the Plan Year to which such
salary reduction election relates.

                                   ARTICLE III
                           CONTRIBUTIONS AND ACCOUNTS

         3.1      Any Eligible Employee whose employment was transferred to Arch
after its spin-off from Olin (February 8, 1999), but before February 8, 2000,
and who had his or her Olin SCEOP account balances transferred to this Plan, may
retain the Olin Phantom Units credited to his or her Olin SCEOP account as of
the date the Employee became employed by Arch. No additional Olin Phantom Units
may be acquired under this Plan, whether through the crediting of Dividend
Equivalents, through contributions to the Plan, or through deemed transfers of
sub-accounts under the Plan.

         3.2      In conjunction with establishing this Plan, Arch assumed the
liabilities of Olin Corporation and its affiliates for the provision of certain
benefits to Participants who were participants in the Olin SCEOP and who
transferred to, and became employed by Arch or its affiliated companies ("Arch
Employees"). In consideration of such assumption of liability, Olin transferred
to Arch (or to a rabbi trust established by Arch) the reserves (including any
associated assets held in a rabbi trust or similar vehicle) reflecting the value
of the accrued liabilities being transferred, determined in accordance with
Olin's established policies and accounting methods, uniformly applied for
calculating liabilities under its non-qualified plans.

         3.3      Each SCEOP Participant who so elects for a Plan Year shall
defer SCEOP Participant Contributions on a pre-tax basis. For each SCEOP
Participant, a SCEOP Account will be established. The Account will contain
sub-accounts for each type of contribution credited to the SCEOP Account and for
each type of Phantom Unit or other hypothetical investment unit credited to the
Account. For each Plan Year during which a person is a SCEOP Participant and
making deferrals, the Company (or other Participating Employer) will credit to
the SCEOP Account of each SCEOP Participant the number of Arch Phantom Units or
other hypothetical investment units equal in value to the sum of (1) the SCEOP
Participant Contribution, plus (2) the Excess Company Matching Contribution,
plus (3) the Excess Performance Contribution, if any; provided, however that
Excess Company Matching Contributions and Excess Performance Contributions shall
be credited in Arch Phantom Units only. Such crediting shall occur periodically
in accordance with the timing of contributions to the CEOP, in the case of the
SCEOP Participant Contributions and Excess Company Matching Contributions, and
as soon as administratively feasible following the making of a Performance
Matching Contribution under the CEOP, in the case of an Excess Performance
Contribution.

                                       4
<PAGE>

         3.4      A Participant's SCEOP Account will also be credited with
Dividend Equivalents from time to time, solely in the form of additional Arch
Phantom Units, when such dividends are paid (i) on the actual number of shares
of Arch Common Stock reflected in the Arch Phantom Units held in such Account,
and (ii) on the actual number of shares of Olin Common Stock reflected in the
Olin Phantom Units held in such Account.

         3.5      For purposes of calculating the number of Arch Phantom Units
to be credited to an Arch Participant's SCEOP Account as a result crediting
Dividend Equivalents or contributions, the SCEOP shall use the Current Market
Value for valuing units in the Arch Common Stock Fund as defined under the CEOP.
Phantom Units will be credited in fractional amounts up to three decimal places.
For purposes of valuing Olin Phantom Units under this Plan, the SCEOP shall use
the Current Market Value for valuing shares in Olin Common Stock Fund as defined
in the CEOP.

         3.6      SCEOP Participants may either retain their Olin Phantom Units
or may have their entire Olin Phantom Unit Account Balance deemed transferred at
the then Current Market Value and reinvested in Arch Phantom Units at the then
Current Market Value. Once Olin Phantom Units are deemed transferred and
reinvested, a Participant may not re-direct investment back into Olin Phantom
Units. No new investment, whether in the form of Company or Participant
contributions or Dividend Equivalents, shall be permitted in Olin Phantom Units.

         3.7      On and after January 30, 2003, the Plan Administrator is
authorized to establish a program and procedures whereby each Participant may
direct the nominal investment of the portion of his or her SCEOP Account that is
attributable to SCEOP Participant Contributions in hypothetical investment units
(i.e., other than Phantom Stock Units); provided, however, that Arch Phantom
Units will continue to be one of the hypothetical investments that are made
available for this purpose. Notwithstanding the foregoing, a Participant who is
subject to Section 16(b) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), may not transfer amounts out of or into Arch Phantom Units in
violation of Section 16(b) of the Exchange Act , and the Plan Administrator may
establish from time to time blackout periods applicable to either all
Participants or to Participants who are subject to Section 16(b) during which no
transfers may occur among all or certain Accounts.

         3.8      A Participant shall at all times be fully vested in his or her
SCEOP Participant Contribution Account Balance, and shall vest in his or her
Excess Company Matching and Excess Performance Contribution Account Balances in
accordance with the vesting schedule contained in the CEOP. Each Participant
shall be deemed vested in his or her SCEOP Account Balance to the same extent
that the Participant is actually vested in his or her CEOP Account Balance. For
purposes of determining an Arch Participant's vested percentage under this
SCEOP, such Participant's past service with Olin shall be recognized to the same
extent as if such service had been rendered with Arch. A Participant shall be
fully vested in his or her SCEOP Account Balance upon his death, upon
termination of service from the Company and all affiliates after reaching a
retirement date under the CEOP, or upon termination of service due to Permanent
Disability as defined in the CEOP.

                                       5
<PAGE>

         3.9      In the event that the Compensation Committee of the Board
("the Committee") determines that any dividend or other distribution,
recapitalization, stock split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase or exchange of Arch
Common Stock, Olin Common Stock or any other securities of Arch or Olin,
issuance of warrants or other rights to purchase Arch Common Stock, Olin Common
Stock or other securities of these companies, or other similar corporate
transaction or event occurs that affects Arch or Olin Common Stock such that the
Committee determines that an adjustment in Phantom Units under the Plan is
appropriate in order to prevent dilution or enlargement of the benefits intended
to be made available under this Plan, then the Committee shall, in such manner
as it deems equitable, adjust Participants' SCEOP Accounts. In the case of a
spin-off, split-up, issuance of an extraordinary stock dividend, or similar
transaction, such adjustment, in the Committee's discretion, may result in
creation of phantom shares in a separate phantom stock fund, reinvestment of
such phantom shares in Arch Phantom Units, and the like. In the case of a merger
for cash with respect to Olin Common Stock, the cash received as a result of
such merger shall be deemed reinvested in Arch Phantom Units. Notwithstanding
the foregoing, a Participant to whom Dividend Equivalents have been allocated
shall not be entitled to receive a non-cash special or extraordinary dividend or
distribution unless the Committee expressly authorizes such receipt.

                                   ARTICLE IV
                                  DISTRIBUTIONS

         4.1      Except as provided in Section 4.6, below, concerning hardship
withdrawals, no amounts credited to a Participant's SCEOP Account under this
Plan may be withdrawn or distributed prior to the Participant's termination of
employment with the Company and all affiliates thereof, including, but not
limited to any other corporation in the same controlled group with Arch (within
the meaning of Section 414(b), (c) and (m) of the Code). Amounts credited to a
Participant's Account under this Plan may not be loaned to such Participant. A
Participant's SCEOP Account will be distributed in the form elected under
Section 4.2 upon the earliest to occur of the Participant's death, termination
of service due to Permanent Disability, retirement or termination of active
service from the Company and all affiliates.

         4.2      Upon becoming a SCEOP Participant, such SCEOP Participant
shall elect to receive the value of his or her SCEOP Account Balance either (i)
in a lump sum, or (ii) in annual installments for a period not to exceed fifteen
(15) years, commencing on the earliest to occur of the Participant's death,
retirement, termination of service due to Permanent Disability or termination of
active employment from Arch and its affiliated companies. A SCEOP Participant
may change such election upon written notice to the Plan Administrator, provided
no such change shall be given effect if the SCEOP Participant becomes eligible
for a distribution from this Plan within twelve (12) months of such change.

         4.3      Installment payments shall commence to be paid as soon as
administratively feasible and generally effective as of the first day of the
month following a Participant's termination of active service. The Company may
delay the payment of any benefit owed

                                       6
<PAGE>

hereunder in order to complete the orderly processing of such benefit.

         4.4      Distributions to a SCEOP Participant of his or her SCEOP
Account Balance shall be made only in the form of cash. Except as provided in
Section 7.3, the value of the portion of any Account Balance credited with
Phantom Units shall be based on the Current Market Value of shares in the Arch
Common Stock Fund and, if applicable, the Olin Common Stock Fund, as calculated
in accordance with the CEOP at the close of business on the last business day
immediately preceding the date on which the distribution is to be effective. The
value of the portion of an Account Balance credited with other hypothetical
investment units shall be based on the value of such units as of the close of
business on the last business day immediately preceding the date on which the
distribution is to be effective.

         4.5      Any benefit payable under this Plan on account of the death of
a Participant shall be paid to the Participant's beneficiary as designated or
determined under the terms of the CEOP; however, a Participant may, by filing
with the Plan Administrator prior to death on a form supplied by the Plan
Administrator, designate a different individual or entity to be the designated
Beneficiary of such Participant for purposes of this Plan, in which case the
subsequent designation will supersede any designation of a beneficiary under the
CEOP.

         4.6      On and after January 30, 2003, in the event a Participant who
is actively employed by the Company suffers a Hardship, such Participant may
apply to the Plan Administrator for a Hardship Distribution. If approved by the
Plan Administrator, the amount distributed shall be limited to the amount
required to meet the need created by the Hardship and shall not exceed the
amount credited to the portion of the Participant's SCEOP Account that is
attributable to SCEOP Participant Contributions. For this purpose, Hardship
means a severe financial hardship to the Participant resulting from a sudden and
unexpected illness or accident of the Participant or of a dependent of the
Participant (as defined in Code Section 152(a)), a Participant's loss of
property due to casualty, or other similar, extraordinary and unforeseeable
circumstance arising as a result of events beyond the control of the
Participant, which is not relieved (i) through reimbursement or compensation by
insurance or otherwise, (ii) by liquidation of the Participant's assets, to the
extent the liquidation of assets would not itself cause severe hardship, or
(iii) by cessation of deferrals under this Plan.

                                    ARTICLE V
                              LIABILITY FOR PAYMENT

         5.1      The Company (and each other Participating Employer) shall pay
the benefits provided hereunder with respect to SCEOP Participants who are
employed or were formerly employed by it during their participation in the Plan.
In the case of a SCEOP Participant who was employed by more than one
Participating Employer, the Committee shall allocate the cost of such benefits
among such Participating Employers in such manner as it deems equitable. The
obligations of the Participating Employer hereunder shall not be funded in any
manner. (Notwithstanding the foregoing, the Company may establish a rabbi trust
or similar vehicle to facilitate the payment of its obligations created
hereunder.) The rights of any person to receive

                                       7
<PAGE>

benefits under this Plan are limited to those of a general creditor of the
Participating Employer liable for such benefits hereunder.

                                   ARTICLE VI
                           ADMINISTRATION OF THE PLAN

         6.1      The Pension Administration and Review Committee shall be the
named Plan Administrator of this Plan. The Plan Administrator shall administer
the Plan for the exclusive benefit of the Participants (and their
Beneficiaries), in accordance with the terms of the Plan. The Plan Administrator
shall have the absolute discretion and power to determine all questions arising
in connection with the administration, interpretation and application of the
Plan. Any such determination by the Plan Administrator shall be conclusive and
binding upon all persons. The Plan Administrator may correct any defect or
reconcile any inconsistency in such manner and to such extent as shall be deemed
necessary or advisable to carry out the purposes of the Plan; provided, however,
that such interpretation or construction shall be done in a non-discriminatory
manner and shall be consistent with the intent of the Plan, the Code and ERISA.

         The Plan Administrator shall:

                  (a) determine all questions relating to eligibility of
         Employees to participate or continue participation in the Plan;

                  (b) maintain all necessary records for the administration of
         the Plan;

                  (c) interpret the provisions of the Plan and make and publish
         such rules for regulation of the Plan as are consistent with the terms
         hereof;

                  (d) assist any Participant regarding rights, benefits or
         elections available under the Plan; and

                  (e) communicate to Employees, Participants and their
         Beneficiaries concerning the provisions of the Plan.

         The Plan Administrator shall keep a record of all actions taken and
shall keep such other books of account, records and other information that may
be necessary for proper administration of the Plan. The Plan Administrator shall
file and distribute all reports that may be required by the Internal Revenue
Service, Department of Labor or others, as required by law. The Plan
Administrator may appoint accountants, actuaries, counsel, advisors and other
persons that it deems necessary or desirable in connection with the
administration of the Plan.

         6.2      Except as otherwise provided herein, all provisions set forth
in the CEOP with respect to the administration of that plan shall also be
applicable with respect to this Plan. For purposes of this Plan, the Company
shall be entitled to rely conclusively upon all tables,

                                       8
<PAGE>

valuations, certificates, opinions and reports furnished by any actuary,
accountant, controller, counsel or other person employed or engaged by the
Company with respect to the CEOP.

                                   ARTICLE VII
                  AMENDMENT, TERMINATION AND CHANGE OF CONTROL

         7.1      The Company reserves the right to amend or terminate this Plan
at any time, by action of the Company's Board of Directors, the Compensation
Committee of the Board, or such other committee from time to time designated by
the Board, and without the consent of any employee or other person.

         7.2      Notwithstanding Section 7.1 above, no amendment or termination
of the Plan shall directly or indirectly reduce the balance to the credit of any
Participant hereunder as of the effective date of such amendment or termination.
Upon termination of the Plan, no additional amounts shall be credited under the
terms of the Plan. Notwithstanding the termination of this Plan, amounts
credited hereunder shall not be distributed to Participants except as provided
in Article IV, above, or Section 7.3, below.

         7.3      On and after January 30, 2003, if a Change of Control occurs,
the Account Balance of each SCEOP Participant who has a termination of
employment within two years following such Change in Control shall be paid in
cash to such Participant as promptly as practicable, but in no event later than
30 days following the termination of employment. For purposes of the Plan, a
"Change in Control" of the Company shall have occurred in the event that

                  (i) the Company ceases to be, directly or indirectly, owned of
                  record by at least 1,000 stockholders;

                  (ii) a person, partnership, joint venture, corporation or
                  other entity, or two or more of any of the foregoing acting as
                  "person" within the meaning of Section 13(d)(3) of the
                  Securities Exchange Act of 1934, as amended (the "Act"), other
                  than the Company, a majority-owned subsidiary of the Company
                  or an employee benefit plan of the Company or such subsidiary
                  (or such plan's related trust), become(s) the "beneficial
                  owner" (as defined in Rule 13d-3 of the Act) of 20% or more of
                  the then outstanding voting stock of the Company; or

                  (iii) during any period of two consecutive years, individuals
                  who at the beginning of such period constitute the Company's
                  Board of Directors (together with any new Director whose
                  election by the Company's Board or whose nomination for
                  election by the Company's stockholders, was approved by a vote
                  of at least two-thirds of the Directors of the Company then
                  still in office who either were Directors at the beginning of
                  such period or whose election or nomination for election was
                  previously so

                                       9
<PAGE>

                  approved) cease for any reason to constitute a majority of the
                  Directors then in office; or

                  (iv) all or substantially all of the business of the Company
                  is disposed of pursuant to a merger, consolidation or other
                  transaction in which the Company is not the surviving
                  corporation or the Company combines with another company and
                  is the surviving corporation (unless the shareholders of the
                  Company immediately following such merger, consolidation,
                  combination, or other transaction beneficially own, directly
                  or indirectly, more than 50% of the aggregate voting stock or
                  other ownership interests of (x) the entities, if any, that
                  succeed to the business of the Company or (y) the combined
                  company); or

                  (v) the shareholders of the Company approve a sale of all or
                  substantially all of the assets of the Company or a
                  liquidation or dissolution of the Company

For purposes of computing the distribution payout under this Section 7.3, the
cash value of the SCEOP Account of a Participant shall be deemed to be the
greater of the value as of the Change in Control or the termination of
employment.

                  (a) For purposes of calculating value as of the date of the
         Change in Control, the value of the Phantom Units will be determined by
         (i) multiplying the actual number of shares of Arch Common Stock
         reflected in a Participant's Arch Phantom Units by the greater of (1)
         the highest Current Market Value of the Common Stock (as defined in the
         CEOP Plan) on any date within the period commencing thirty (30) days
         prior to such Change in Control and ending on the date of the Change in
         Control, or (2) if the Change in Control occurs as a result of a tender
         or exchange offer or consummation of a corporate transaction, then the
         highest price paid per share of Common Stock pursuant thereto; (ii)
         adding any cash portion attributable to a Participant's Arch Phantom
         Units held in his or her SCEOP Account as of the date of the Change in
         Control; and (iii) adding the then Current Market Value of that portion
         of a Participant's SCEOP Account which is deemed invested in Olin
         Phantom Units (and any other phantom units or stock fund established in
         the SCEOP). For purposes of calculating value as of the date of the
         Change in Control, the value of the hypothetical investment units will
         be determined based on the value of such units as of the close of
         business on the last business day immediately preceding the date of the
         Change in Control.

                  (b) For purposes of calculating value as of the date of the
         termination of employment, the values will be calculated as provided
         for distributions upon termination of employment in Section 4.4.

                                       10
<PAGE>

                                  ARTICLE VIII
                               GENERAL PROVISIONS

         8.1      The Plan at all times shall be entirely unfunded. The right of
a Participant or designated Beneficiary to receive a distribution hereunder
shall be an unsecured claim against the general assets of the Company, and
neither the Participant nor a designated Beneficiary shall have any rights in or
against any specific assets of the Company. All amounts credited to the SCEOP
Accounts of Participants shall constitute general assets of the Company and may
be disposed of by the Company at such time and for such purposes as it may deem
appropriate. (Notwithstanding the foregoing, the Company may establish a rabbi
trust or similar vehicle to facilitate the payment of its obligations created
hereunder.)

         8.2      Nothing contained in the Plan shall constitute a guaranty by
the Company or any other person or entity that the assets of the Company will be
sufficient to pay any benefit hereunder.

         8.3      No Participant shall have any right to receive a distribution
of contributions made under the Plan except in accordance with the terms of the
Plan. Establishment of the Plan shall not be construed to give any Participant
the right to be retained in the service of the Company.

         8.4      No interest of any person or entity in, or right to receive a
distribution under, the Plan shall be subject in any manner to sale, transfer,
assignment, pledge, attachment, garnishment or other alienation or encumbrance
of any kind; nor may such interest or right to receive a distribution be taken,
either voluntarily or involuntarily for the satisfaction of the debts of, or
other obligations or claims against, such person or entity, including claims for
alimony, support, separate maintenance and claims in bankruptcy proceedings.

         8.5      The Plan shall be construed and administered under the laws of
the State of Connecticut, to the extent not preempted by federal law.

         8.6      If any person entitled to a distribution under the Plan is
deemed by the Company to be incapable of personally receiving and giving a valid
receipt for such payment, then, unless and until claim therefor shall have been
made by a duly appointed guardian or other legal representative of such person,
the Company may provide for such payment or any part thereof to be made to any
other person or institution then contributing toward or providing for the care
and maintenance of such person. Any such payment shall be a payment for the
account of such person and a complete discharge of any liability of the Company
and the Plan therefor.

         8.7      The Plan shall not be automatically terminated by a transfer
or sale of all or substantially all of the assets of the Company or by the
merger or consolidation of the Company into or with any other corporation or
other entity, but the Plan shall be continued after such sale, merger or
consolidation only if and to the extent that the transferee, purchaser or
successor entity agrees to continue the Plan. In the event that the Plan is not
continued by the transferee, purchaser or successor entity, then the Plan shall
terminate, subject to the provisions of Section 7.2.

                                       11
<PAGE>

         8.8      Each Participant shall keep the Company informed of his or her
current address and the current address of his or her designated Beneficiary.
The Company shall not be obligated to search for the whereabouts of any person.
If the location of a Participant is not made known to the Company within three
(3) years after the date on which payment of any or all of the Participant's
Accounts may first be made, payment may be made as though the Participant had
died at the end of the three-year period. If, within one additional year after
such three-year period has elapsed, or, within three years after the actual
death of a Participant, the Company is unable to locate any designated
Beneficiary of the Participant, then the Company shall have no further
obligation to pay any benefit hereunder to such Participant or designated
Beneficiary and such benefit shall be irrevocably forfeited.

         8.9      This Plan shall constitute the entire agreement between the
Company and its executives concerning the provision of supplemental CEOP
benefits.

         8.10     Notwithstanding any of the preceding provisions of the Plan,
neither the Company nor any individual acting as employee or agent of the
Company shall be liable to any Participant, former Participant or other person
for any claim, loss, liability or expense incurred in connection with the Plan.

         IN WITNESS WHEREOF, Arch Chemicals, Inc. has caused this restated Plan
to be executed by a duly authorized officer as of January 30, 2003.

                                       ARCH CHEMICALS, INC.

                                       By: _____________________________________
                                           Hayes Anderson
                                           Its Vice President of Human Resources

                                       12

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