exv10w64






Exhibit 10.64




EXECUTIVE MANAGEMENT INCENTIVE AWARD PROGRAM

As Adopted by the Compensation and Human Resources Committee of the Board of Directors

on December 3, 2009 and as effective on January 1, 2010




Introduction




     Executive Management Incentive Awards (“EMIAs”), made pursuant to Article 9 of the King
Pharmaceuticals, Inc. (the “Company”) Incentive Plan (the “Plan”), will be based upon one or more
objectives (“Objectives”). In determining the potential EMIA payout for any participant in the
program (“Participant”), the Objectives shall be evaluated and applied either by the Compensation
and Human Resources Committee of the Board of Directors (the “Committee”) or by the Chief Executive
Officer, as further detailed below. All capitalized terms not otherwise defined shall have the
meanings assigned to them in the Plan.



     This program shall become effective on January 1, 2010 and shall remain continuously effective
thereafter except as amended, suspended or discontinued by the Committee, as described herein.



Administration




     The Committee shall have complete discretionary authority over the administration of the EMIAs
as set forth in this program including, without limitation, the authority to adjudicate claims
related to EMIAs, interpret the terms of EMIAs, and to resolve disputes and factual questions
related to EMIAs. Determinations of the Committee shall be binding on the Company and the
Participants.



Eligibility to Participate




     Except as otherwise determined by the Committee, executives having the title of Vice President
or more senior titles as of January 1 of each year shall be eligible to participate in the EMIA
program for that year (the “Program Year”). The officers listed on Attachment I here to
shall be designated the “Top Executives” for purposes of the Plan.



     The Committee and/or the Chief Executive Officer, as further detailed below in the section
entitled “Approval of Objectives”, may establish an EMIA for an executive who is hired or promoted
to fill an EMIA-eligible position after January 1; provided, however, that




	 	1.	 	unless the Committee shall determine otherwise, an EMIA may be
established for a Top Executive after 90 days have elapsed since January 1 only if
75.1% or more of the performance time period is remaining at the time the EMIA is
established, in accordance with Treas. Reg. § 1.162-27(e);
	 
	 	2.	 	any executive hired after September 30 of a given year is ineligible for
an EMIA during that Program Year; and
	 
	 	3.	 	any employee of the Company promoted into an EMIA-eligible position who
becomes an Participant (but who is not a Top Executive) shall participate prorata in
the EMIA program and in any other cash incentive plan in which the employee
participated immediately prior to becoming an Participant.




 









 











Objectives




     The EMIA for each Participant shall be based entirely upon one or more Objectives appearing in
Attachment II hereto. Each Objective shall be based upon prospective goals, the
accomplishment of which is substantially uncertain at the time of the establishment of the EMIA.
Unless the Committee shall determine otherwise, EMIAs for Top Executives shall be established
during the first 25% of the applicable performance period.



     The Committee shall establish and approve each Objective and any amendments thereto.



Weighting of Objectives




     The relative weighting of one or more Objectives for each Participant or group of Participants
shall be determined by the Compensation and Human Resources Committee during the first 25% of the
applicable performance period. This document shall automatically be amended by such adoption, and
the adopted amendment shall be attached hereto as Attachment III, replacing any
Attachment III previously adopted by the Committee.



Determination of Award Amounts




     Each Participant is eligible for a cash award (“EMIA Payout”) which is a percentage of his or
her base salary earned during the Program Year. An EMIA Payout is calculated as follows:




			
	     EMIA Payout ($) =	 	Base salary earned during Program Year ($)

x Weighted Objective Achievement Percentage (%)





          The sections below provide further detail regarding the elements of this calculation.




     Weighted Objective Achievement Percentage



          A Participant’s Objective Achievement Percentage is determined, for each Objective to which he
or she is subject, using the table on Attachment IV hereto, according to the degree of
achievement (none, threshold, target or stretch, or a prorata percentage between levels using
straight-line interpolation between adjacent achievement levels).




          In the case of a Participant having only one Objective, the Weighted Objective Achievement
Percentage is equal to the Objective Achievement Percentage for the sole Objective.




          In the case of a Participant having more than one Objective, the Weighted Objective
Achievement Percentage is determined by calculating the average of the Achievement Percentages of
the Participant’s Objectives, with each Achievement Percentage weighted according to its
proportional representation among the Participant’s overall mix of Objectives.




          Attachment IV may be amended by the Committee from time to time and this document
shall thereby be automatically amended.







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Eligibility for EMIA Payout




     Any EMIA Payout shall be contingent upon the Committee’s determination that the applicable
Objectives have been met, and at what achievement level these Objectives have been met. Also:





	 	1.	 	In the case of any Top Executive, EMIA Payouts shall be contingent upon
the Committee’s approval of the Top Executive’s Weighted Objective Achievement
Percentage.
	 
	 	2.	 	In the case of each other Participant, EMIA Payouts shall be contingent
upon the determination of the Chief Executive Officer, or his designee, of the
Participant’s Weighted Objective Achievement Percentage.





     Other than as provided in the following five paragraphs, a Participant must be employed by the
Company on December 31 of the Program Year or the Participant will forfeit any EMIA Payout which he
or she may have otherwise been qualified, or may have become qualified, to receive for that Program
Year.





	 	1.	 	Death. In the event that a Participant has died as of the date of his or
her EMIA Payout, if any, it shall be paid to his or her estate. In the event of a
Participant’s death before December 31 of the Program Year, a prorata portion of the
Participant’s target payout percentage, as indicated on Attachment IV,
reflecting the Participant’s time in service during the performance year, shall be
paid to his or her estate as soon as reasonably practicable.
	 
	 	2.	 	Termination Due to Incapacity. In the event that a Participant has been
terminated due to incapacity (as evidenced by the judgment or decree of a court of
competent jurisdiction) as of the date of his or her EMIA Payout, if any, it shall
be paid to his or her legal guardian or appointed representative. In the event of a
Participant’s termination due to incapacity before December 31 of the Program Year,
a prorata portion of the Participant’s target payout percentage, as indicated on
Attachment IV, reflecting the Participant’s time in service during the
performance year, shall be paid to his or her legal guardian or appointed
representative as soon as reasonably practicable.
	 
	 	3.	 	Termination Due to Disability. In the event of a Participant’s
termination due to Disability before December 31 of the Program Year, a prorata
portion of the Participant’s target payout percentage, as indicated on
Attachment IV, reflecting the Participant’s time in service during the
performance year, shall be paid to the Participant as soon as reasonably practicable
following termination.
	 
	 	4.	 	Approved Retirement. In the event of a Participant’s Approved Retirement
before December 31 of the Program Year:






	 	a.	 	if the Participant is not a Top Executive, a prorata
portion of the Participant’s target payout percentage, as indicated on
Attachment IV, reflecting the Participant’s time in service during
the performance year, shall be paid to the Participant as soon as reasonably
practicable following retirement.
	 
	 	b.	 	if the Participant is a Top Executive, a prorata portion
of the Participant’s payout percentage, as indicated on Attachment
IV, reflecting the Participant’s time in




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	 	 	 	service during the performance year and the results of the Objectives
applicable to the Participant for the Program Year at the completion of the
performance period, shall be paid to the Participant as soon as reasonably
practicable following completion of the Program Year during which retirement
occurs.






	 	5.	 	Qualifying Separation. In the event of a Participant’s Qualifying
Separation (as such term is defined in the King Pharmaceuticals, Inc. Severance Pay
Plan then applicable to the Participant (the “Severance Plan”)) for any reason,
other than Cause (as such term is defined in the Severance Plan), before December 31
of the Program Year:






	 	a.	 	if the Participant is not a Top Executive, a prorata
portion of the Participant’s target payout percentage as indicated on
Attachment IV, reflecting the Participant’s time in service during
the performance year, shall be paid to the Participant as soon as reasonably
practicable after the Qualifying Separation occurs.
	 
	 	b.	 	if the Participant is a Top Executive, a prorata portion
of the Participant’s payout percentage as indicated on Attachment
IV, reflecting the Participant’s time in service during the performance
year and the final results of the Objectives applicable to the Participant
at the completion of the performance period, shall be paid to the
Participant as soon as reasonably practicable following completion of the
Program Year during which the Qualifying Separation occurs.





Timing of EMIA Payout




     Except as otherwise provided herein, the payment of all EMIA Payouts for a Program Year, if
any, will be made between January 1 and March 15 of the year following the Program Year.



Tax Matters




     All EMIA payments are subject to applicable state, federal, local and other tax withholding
requirements.



     To the maximum extent possible, all EMIA Payouts to Top Executives are intended to be
“qualified performance-based compensation” in accordance with Treas. Reg. § 1.162-27(e) and shall
be interpreted and administered as such unless the Committee determines that it is in the best
interests of the Company not to adhere to the requirements of 162(m) of the Internal Revenue Code
of 1986, as amended (the “Code”), and Treas. Reg. § 1.162-27.



Other Matters




     The Committee, in its discretion, may reduce or eliminate any EMIA Payout in the event it
determines it is in the best interests of the Company to do so for reasons including, without
limitation, financial distress of the Company, administrative difficulties or that the EMIA Payout
is nondeductible by the Company under the Internal Revenue Code; provided, however, that no such
modification may be made following a Change of Control without the prior consent of the Board of
Directors as constituted immediately preceding the Change in Control. The reduction of one or more
EMIA Payouts shall not increase the EMIA Payout of any other Participant.



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     The Committee may, at any time, amend, suspend or terminate this EMIA program, and the Board
of Directors of the Company, in its discretion, may at any time withdraw the Committee’s authority
over this EMIA program; provided, however, that following a Change of Control no such amendment,
suspension, termination or withdrawal of authority applicable to or affecting the then current
Program Year or any EMIA Payout which is or may become payable in connection with the then current
Program Year may occur without the prior consent of the Board of Directors as constituted
immediately preceding the Change in Control.



     The grant of an EMIA shall in no way be construed or interpreted to establish or guarantee a
term of employment and does not change the “at-will” or other status of any person employed by the
Company.



     The terms and conditions of this EMIA program are, in their entirety, set forth in this
document and the EMIA documents pertaining to a specific Participant. Once established, the
Objectives may only be altered by valid written notice to that effect from the Committee. Any oral
representation or writing not authorized and approved by the Committee shall be void and of no
effect, and shall not be binding on the Company or the Committee.





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Attachment I

Top Executives




	 	 	 
	Adopted:

	 	12/3/2009 
	Effective:

	 	1/1/2010 






President and Chief Executive Officer

Chief Financial Officer

Chief Commercial Officer

President, Alpharma Animal Health

Chief Legal Officer

Corporate Compliance Officer

Chief Science Officer






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Attachment II

Objectives




Adopted:

Effective:




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Attachment III

Objectives Weighting Table




Adopted:

Effective:




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Attachment IV

Achievement Percentage Table




	 	 	 
	Adopted:

	 	12/3/2009 
	Effective:

	 	1/1/2010 






	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	ACHIEVEMENT PERCENTAGE
	               POSITION	 	THRESHOLD	 	TARGET	 	STRETCH
	President & Chief Executive Officer
	 	 	50	%	 	 	100	%	 	 	200	%
	Chief Financial Officer
	 	 	35	%	 	 	70	%	 	 	140	%
	Chief Commercial Officer
	 	 	30	%	 	 	60	%	 	 	120	%
	President, Animal Health
	 	 	30	%	 	 	60	%	 	 	120	%
	Chief Science Officer
	 	 	30	%	 	 	60	%	 	 	120	%
	Chief Legal Officer
	 	 	30	%	 	 	60	%	 	 	120	%
	EVP Level 1
	 	 	25	%	 	 	50	%	 	 	100	%







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