0001072613-05-001659 Sample Contracts

RECITALS
Settlement Agreement • July 6th, 2005 • Chattem Inc • Pharmaceutical preparations • New York
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SHARES FULL VESTING VEST DATE ---------------------------
Chattem Inc • July 6th, 2005 • Pharmaceutical preparations

This letter is to inform you that an award has been granted to you by Chattem, Inc.. Effective ________ you have been granted Non-Qualified Stock Options to purchase ________ shares at $________ per share. This grant will expire on ________. The following table will outline the vesting schedule associated with these options.

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