CREATE SCHEMA gives 1064 error

CREATE SCHEMA IF NOT EXISTS `paragraph` 
   DEFAULT CHARACTER SET 'utf8' COLLATE default collation ;

this line results with error 1064. MySql 5.4.3-beta.

From stackoverflow

• This works:

  CREATE SCHEMA IF NOT EXISTS `paragraph` 
     DEFAULT CHARACTER SET 'utf8' COLLATE default;
  

  There was an extra "collation" at the end.

  dynback.com : Thanks, strange Workbench generate me this