Chattem (CHTT)

Life and Disability Insurance

The named executive officers, except for Mr. Guerry, participate in a life insurance program generally available to all salaried employees that provides for a death benefit of up to 300% of the employee’s annual earnings, which includes base salary and payments under our annual cash incentive plan, during the 24-month period prior to death, but in no case will the death benefit be greater than $750,000. Mr. Guerry receives life insurance benefits only offered as supplemental life insurance to certain of our other officers and will receive a death benefit of $1,450,000. The named executive officers also participate in a long-term disability program generally available to all salaried employees that can replace up to 60% of gross monthly income, based upon annual salary plus the prior two years’ average bonus up to a maximum monthly benefit of $15,000. Additionally, Messrs. Guerry and Whitfield participate in a supplemental income protection plan offered only to certain of our officers that can provide an additional benefit up to a maximum amount of $3,000 per month in the event of long-term disability.

Life and Disability Insurance

The named executive officers, except for Mr. Guerry, participate in a life insurance program generally available to all salaried employees that provides for a death benefit of up to 300% of the executive’s annual earnings, which includes base salary and payments under the Company’s annual cash incentive plan, during the 24-month period prior to death, but in no case will the death benefit be greater than $750,000. Mr. Guerry receives life insurance benefits only offered as supplemental life insurance to certain other officers of the Company and will receive a death benefit of $1,450,000. The named executive officers also participate in a long-term disability program generally available to all salaried employees that can replace up to 60% of gross monthly income, based upon annual salary plus the prior two years’ average bonus up to a maximum monthly benefit of $15,000. Additionally, certain of the named executive officers participate in a supplemental income protection plan offered only to certain officers of the Company that can provide an additional benefit up to a maximum amount of $3,000 per month in the event of long-term disability.