exhibit109.htm


    Exhibit
10.9

    


    


    


    


    EMPLOYMENT
AGREEMENT

    


    AMENDED and RESTATED EMPLOYMENT
AGREEMENT (the "Agreement") by and between FOREST LABORATORIES, INC., a Delaware
corporation (the “Company”) and Raymond Stafford (the “Executive”), dated as of
October 29, 2008.

    


    A.           The
Company and the Executive entered into an Employment Agreement dated as of
the  Twenty Third day of the Second month, 1998 (the "Employment
Agreement") to make provision for the Executive’s continued employment with the
Company and its subsidiaries following a Change of Control (as defined below) of
the Company and to set forth the compensation and benefits arrangements relating
thereto, including compensation and benefits payable in connection with a
termination of employment or a termination of the agreement in the event the
Company’s successor does not assume the agreement upon a Change of
Control.  The Board of Directors of the Company has determined that it
continues to be in the best interests of the Company and its stockholders that
these agreements be maintained in order to assure that the Company will have the
continued dedication of the Executive, notwithstanding the possibility, threat
or occurrence of a Change of Control of the Company.

    


    B.           Certain
revisions to the Employment Agreement have been necessitated by the enactment of
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and
the final Treasury Regulations promulgated thereunder.  These
Regulations provide certain restrictions on when payments and benefits can be
provided based on the circumstances giving rise to the Company’s obligation to
provide such payments and benefits and the status of the
recipient.   Since January 1, 2008, the Company has been
administering the Agreement in operational compliance with Section 409A of the
Code, and the Company and the Executive now wish to formally amend and restate
the Agreement as more fully set forth herein to ensure compliance with Section
409A of the Code.

    


    NOW,
THEREFORE, the Employment Agreement is hereby amended and restated in its
entirety as follows:

    


    1.           Certain
Definitions:

    


    
      	
               
      

            	
              (a)

            	
              The
      “Effective Date” shall mean the first date during the Change of Control
      Period (as defined in Section 1(b)) on which a Change of Control (as
      defined in Section 2) occurs.  Anything in this Agreement to the
      contrary notwithstanding, if a Change of Control occurs and if the
      Executive’s employment with the Company is terminated prior to the date on
      which the Change of Control occurs, and if it is reasonably demonstrated
      by the Executive that such termination of employment (i) was at the
      request of a third party who has taken steps reasonably calculated to
      effect the Change of Control or (ii) otherwise arose in connection with or
      anticipation of the Change of Control, then for all purposes of this
      Agreement the “Effective Date” shall mean the date immediately prior to
      the date of such termination of
employment.

            


    

    


    
      	
               
      

            	
              (b)

            	
              The
      “Change of Control Period” shall mean the period commencing on January 1,
      2008 and ending on the third anniversary of such date; provided, however,
      that commencing on January 1, 2009, and on each annual anniversary of such
      date (such date and each annual anniversary thereof shall be hereinafter
      referred to as the “Renewal Date”), unless previously terminated in
      accordance with this Agreement, the Change of Control Period shall be
      automatically extended so as to terminate three years after such Renewal
      Date, unless at least 60 days prior to the Renewal Date the Company shall
      give notice to the Executive that the Change of Control Period shall not
      be so extended.

            


    

    


    2.           Change of
Control.  For the purpose of this Agreement, a “Change of
Control” shall mean:

    


    
      	
               
      

            	
              (a)

            	
              The
      acquisition by any individual, entity or group (within the meaning of
      Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
      amended (the “Exchange Act”)) (a “Person”) (i) of
      beneficial  ownership (within the meaning of Rule 13d-3
      promulgated under the Exchange Act) of shares of common stock of the
      Company which, when added to the common stock beneficially owned by such
      Person, represents more than 50% of either (A) the total fair market value
      of the then outstanding shares of common stock of the Company (the
      “Outstanding Company Common Stock”) or (B) the combined voting power of
      the then outstanding voting securities of the Company entitled to vote
      generally in the election of directors (the “Outstanding Company Voting
      Securities”), or (ii) during any 12-month period, of beneficial ownership
      (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
      securities of the Company representing 30% or more of the Outstanding
      Company Voting Securities; provided, however, that for purposes of this
      subsection (a), the following acquisitions of securities of the Company
      shall not constitute a Change of Control: (V) any acquisition directly
      from the Company, (W) any acquisition by the Company, (X) any acquisition
      by any employee benefit plan (or related trust) sponsored or maintained by
      the Company or any corporation controlled by the Company, (Y) any
      acquisition made by a Person who is eligible under the provisions of Rule
      13d-1 under the Exchange Act as in effect on the date hereof to report
      such acquisition on Schedule 13G, or (Z) any acquisition by any
      corporation pursuant to a transaction which complies with clauses (i),
      (ii) and (iii) of subsection (c) of this Section 2;
  or

            


    

    


    
      	
               
      

            	
              (b)

            	
              Individuals
      who, as of the date hereof, constitute the Board of Directors (the
      “Incumbent Board”) cease for any reason to constitute at least a majority
      of the Board of Directors; provided, however, that any individual becoming
      a director subsequent to the date hereof whose election, or nomination for
      election by the Company’s shareholders, was approved by a vote of at least
      a majority of the directors then comprising the Board of Directors shall
      be considered as though such individual were a member of the Incumbent
      Board, but excluding for this purpose, any such individual whose initial
      assumption of office occurs as a result of an actual or threatened
      election contest with respect to the election or removal of directors or
      other actual or threatened solicitation of proxies or consents by or on
      behalf of a Person other than the Board of Directors;
  or

            


    

    


    
      	
               
      

            	
              (c)

            	
              Consummation
      of a reorganization, merger or consolidation or sale or other disposition
      of all or substantially all (defined as more than 50% of the total gross
      fair market value) of the assets of the Company (a “Business
      Combination”), in each case unless, following such Business Combination,
      (i) Persons who were the beneficial owners, respectively, of the
      Outstanding Company Common Stock and Outstanding Company Voting Securities
      immediately prior to such Business Combination beneficially own, directly
      or indirectly, more than 50% of the then outstanding shares of common
      stock and the combined voting power of the then outstanding voting
      securities entitled to vote generally in the election of directors of the
      corporation resulting from such Business Combination (including, without
      limitation, a corporation which as a result of such transaction owns the
      Company or all or substantially all of the Company’s assets either
      directly or through one or more subsidiaries), (ii) no Person
      (excluding any corporation resulting from such Business Combination or any
      employee benefit plan (or related trust) of the Company or such
      corporation resulting from such Business Combination) beneficially owns,
      directly or indirectly, more than 30% of the combined voting power of the
      then outstanding voting securities of such corporation except to the
      extent that such ownership existed prior to the Business Combination and
      (iii) at least a majority of the members of the board of directors of the
      corporation resulting from such Business Combination were members of the
      Incumbent Board at the time of the execution of the initial agreement or
      of the action of the Board of the Directors providing such Business
      Combination.

            


    

    


    The
Executive and the Company hereby acknowledge that there has been no Change of
Control (either as defined in the Employment Agreement or in this Agreement)
since the date of the Employment Agreement.

    


    3.           Employment
Period.  The Company hereby agrees to continue the Executive in
its employ, and the Executive hereby agrees to remain in the employ of the
Company subject to the terms and conditions of this Agreement, for the period
commencing on the Effective Date and ending on the third anniversary of such
date or such lesser period as determined in accordance with this Agreement (the
“Employment Period”).

    


    
      	
               
      

            	
              4.

            	
              Terms of
      Employment.

            


    

    


    (a)           Position and
Duties.

    


    
      	
               
      

            	
              (i)

            	
              During
      the Employment Period, (A) the Executive’s position (including status,
      offices, titles and reporting requirements), authority, duties, and
      responsibilities shall be at least commensurate in all material respects
      with the most significant of those held and exercised by and assigned to
      the Executive at any time during the 120-day period immediately preceding
      the Effective Date and (B) the Executive’s services shall be performed at
      the location where the Executive was employed immediately preceding the
      Effective Date or any office or location less than 35 miles from such
      location.

            


    

    


    
      	
               
      

            	
              (ii)

            	
              During
      the Employment Period, and excluding any periods of vacation and sick
      leave to which the Executive is entitled, the Executive agrees to devote
      reasonable attention and time during normal business hours to the business
      and affairs of the Company and, to the extent necessary to discharge the
      responsibilities assigned to the Executive hereunder, to use the
      Executive’s reasonable best efforts to perform faithfully and efficiently
      such responsibilities.  During the Employment Period it shall
      not be a violation of this Agreement for the Executive to (A) serve
      on corporate, civic or charitable boards or committees, (B) deliver
      lectures, fulfill speaking engagements or teach at educational
      institutions and (C) manage personal investments, so long as such
      activities do not significantly interfere with the performance of the
      Executive’s responsibilities as an employee of the Company in accordance
      with this Agreement.  It is expressly understood and agreed that
      to the extent that any such activities have been conducted by the
      Executive prior to the Effective Date, the continued conduct of such
      activities (or the conduct of activities similar in nature and scope
      thereto) subsequent to the Effective Date shall not thereafter be deemed
      to interfere with the performance of the Executive’s responsibilities to
      the Company.

            


    

    


    
      	
               
      

            	
              (iii)

            	
              This
      Agreement shall be canceled and will not be effective in any manner in the
      event that the Executive’s employment with the Company terminates prior to
      the Effective Date.  As of and after such termination, this
      Agreement shall be deemed to be null and void and may not be reinstated
      except by the signature of the Chief Executive Officer of the
      Company.

            


    

    


    (b)           Compensation.

    


    
      	
               
      

            	
              (i)

            	
              Base Salary.
      During the Employment Period, the Executive shall receive an annual base
      salary (“Annual Base Salary”), which shall be paid at a monthly rate, at
      least equal to twelve times the highest monthly base salary paid or
      payable, including any base salary which has been earned but deferred, to
      the Executive by the Company and its affiliated companies in respect of
      the twelve-month period immediately preceding the month in which the
      Effective Date occurs.  During the Employment Period, the Annual
      Base Salary shall be reviewed no more than 12 months after the last salary
      increase awarded to the Executive prior to the Effective Date and
      thereafter at least annually.  Any increase in Annual Base
      Salary shall not serve to limit or reduce any other obligation to the
      Executive under this Agreement.  Annual Base Salary shall not be
      reduced after any such increase and the term “Annual Base Salary” as
      utilized in this Agreement shall refer to Annual Base Salary as so
      increased.  As used in this Agreement, the term, “affiliated
      companies” shall include any company controlled by, controlling or under
      common control with the Company.

            


    

    


    
      	
               
      

            	
              (ii)

            	
              Annual
      Bonus.  In addition to the Annual Base Salary, the
      Executive shall be awarded, for each Bonus Year (as defined below) ending
      during the Employment Period, an annual bonus (the “Annual Bonus”) in cash
      at least equal to the highest aggregate amount awarded to the Executive
      under all annual bonus, incentive and other similar plans of the Company
      with respect to any of the last three full years prior to the Effective
      Date (annualized in the event that the Executive was not employed by the
      Company for the whole of such year) (the “Recent Annual
      Bonus”).   For purposes of this Agreement, each fiscal year
      of the Company or calendar year during the Employment Period with respect
      to which annual bonuses are paid generally by the Company to employees of
      the Company shall be referred to as a "Bonus Year."  Each such
      Annual Bonus shall be paid as soon as practicable but no later than two
      and one half months after the end of the Bonus Year with respect to which
      the Annual Bonus is awarded, unless the Executive properly elects to defer
      the receipt of such Annual Bonus in compliance with the terms of any plan
      of the Company that is then in effect and which permits such
      deferral.

            


    

    


    
      	
               
      

            	
              (iii)

            	
              Incentive, Savings and
      Retirement Plans.  During the Employment Period, the
      Executive shall be entitled to participate in all incentive, savings and
      retirement plans, practices, policies and programs applicable generally to
      other peer executives of the Company and its affiliated companies, but in
      no event shall such plans, practices, policies and programs provide the
      Executive with incentive opportunities (measured with respect to both
      regular and special incentive opportunities to the extent, if any, that
      such distinction is applicable), savings opportunities and retirement
      benefit opportunities, in each case, less favorable, in the aggregate,
      than the most favorable of those provided by the Company and its
      affiliated companies for the Executive under such plans, practices and
      policies and programs as in effect at any time during the 120-day period
      immediately preceding the Effective Date or if more favorable to the
      Executive, those provided at any time during the Employment Period to
      other peer executives of the Company and its affiliated companies
      generally.

            


    

    


    
      	
               
      

            	
              (iv)

            	
              Welfare Benefit
      Plans.  During the Employment Period, the Executive
      and/or the Executive’s family, as the case may be, shall be eligible for
      participation in and shall receive all benefits under welfare benefit
      plans, practices, policies and programs provided by the Company and its
      affiliated companies (including, without limitation, medical,
      prescription, dental, disability, employee life, group life, accidental
      death and travel accident insurance plans and programs) to the extent
      applicable generally to other peer executives of the Company and its
      affiliated companies, but in no event shall such plans, practices,
      policies and programs provide the Executive with benefits which are less
      favorable in the aggregate than the most favorable of such plans,
      practices, policies and programs in effect for the Executive at any time
      during the 120-day period immediately preceding the Effective Date or, if
      more favorable to the Executive, those provided at any time during the
      Employment Period to other peer executives of the Company and its
      affiliated companies generally.

            


    

    


    
      	
               
      

            	
              (v)

            	
              Expenses.  During
      the Employment Period, the Executive shall be entitled to receive prompt
      reimbursement for all reasonable expenses incurred by the Executive in
      accordance with the most favorable policies, practices and procedures of
      the Company and its affiliated companies in effect for the Executive at
      any time during the 120-day period immediately preceding the Effective
      Date or, if more favorable to the Executive, as in effect at any time
      during the Employment Period with respect to other peer executives of the
      Company and its affiliated companies
generally.

            


    

    


    
      	
               
      

            	
              (vi)

            	
              Fringe
      Benefits.  During the Employment Period, the Executive
      shall be entitled to fringe benefits, including, without limitation, tax
      and financial planning services, payment of club dues, and, if applicable,
      use of an automobile and payment of related expenses, in accordance with
      the most favorable plans, practices, programs and policies of the Company
      and its affiliated companies in effect for the Executive at any time
      during the 120-day period immediately preceding the Effective Date or, if
      more favorable to the Executive, as in effect at any time during the
      Employment Period with respect to other peer executives of the Company and
      its affiliated companies generally.

            


    

    


    
      	
               
      

            	
              (vii)

            	
              Office and Support
      Staff.  During the Employment Period, the Executive shall
      be entitled to an office or offices of a size and with furnishings and
      other appointments, and to exclusive personal secretarial and other
      assistance, at least equal to the most favorable of the foregoing provided
      to the Executive by the Company and its affiliated companies at any time
      during the 120-day period immediately preceding the Effective Date or, if
      more favorable to the Executive, as provided at any time during the
      Employment Period with respect to other peer executives of the Company and
      its affiliated companies generally.

            


    

    


    
      	
               
      

            	
              (viii)

            	
              Vacation.  During
      the Employment Period, the Executive shall be entitled to paid vacation in
      accordance with the most favorable plans, policies, programs and practices
      of the Company and its affiliated companies as in effect for the Executive
      at any time during the 120-day period immediately preceding the Effective
      Date or, if more favorable to the Executive, as in effect at any time
      during the Employment Period with respect to other peer executives of the
      Company and its affiliated companies
generally.

            


    

    


    5.           Termination of
Employment.

    


    
      	
               
      

            	
              (a)

            	
              Death or
      Disability.  The Executive’s employment shall terminate
      automatically upon the Executive’s death during the Employment
      Period.  If the Company determines in good faith that the
      Disability of the Executive has occurred during the Employment Period
      (pursuant to the definition of Disability set forth below), it may give to
      the Executive written notice of its intention to terminate the Executive’s
      employment.  In such event, the Executive’s employment with the
      Company shall terminate effective on the 30th day after receipt of such
      notice by the Executive (the “Disability Effective Date”), provided that
      within 30 days after such receipt the Executive shall not have returned to
      full-time performance of the Executive’s duties.  For purposes
      of this Agreement, “Disability” shall mean the absence of the Executive
      from the Executive’s duties with the Company on a full-time basis for 180
      consecutive business days as a result of incapacity due to mental or
      physical illness which is determined to be total and permanent by a
      physician selected by the Company or its insurers and acceptable to the
      Executive or the Executive’s legal
  representative.

            


    

    


    
      	
               
      

            	
              (c)

            	
              Cause.  The
      Company may terminate the Executive’s employment during the Employment
      Period for Cause.  For purposes of this Agreement, “Cause” shall
      mean:

            


    

    


    
      	
               
      

            	
              (i)

            	
              the
      willful and continuous failure of the Executive to
      perform  substantially the Executive’s duties with the Company
      or one of its affiliates (other than any such failure resulting from
      incapacity due to physical or mental illness), after a written demand for
      substantial performance is delivered to the Executive by the Board of
      Directors or the Chief Executive Officer of the Company which specifically
      identifies the manner in which the Board of Directors or Chief Executive
      Officer believes that the Executive has not substantially performed the
      Executive’s duties, or

            


    

    


    
      	
               
      

            	
              (ii)

            	
              the
      willful engaging by the Executive in illegal conduct or gross misconduct
      which is materially and demonstrably injurious to the
    Company.

            


    

    


    For
purposes of this provision, no act or failure to act on the part of the
Executive shall be considered “willful” unless it is done, or omitted to be
done, by the Executive in bad faith or without a reasonable belief that the
Executive’s action or omission was in the best interests of the
Company.  Any act or failure to act based upon authority given
pursuant to a resolution duly adopted by the Board of Directors or upon the
instructions of the Chief Executive Officer or a senior officer of the Company
or based upon the advice of counsel for the Company shall be conclusively
presumed to be done or omitted to be done by the Executive in good faith and in
the best interests of the Company.  The cessation of employment of the
Executive shall not be deemed to be for Cause unless and until there shall have
been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of the
Board of Directors at a meeting of the Board called and held for the purpose
(after reasonable notice is provided to the Executive and the Executive is given
an opportunity, together with counsel, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Executive is guilty of the
conduct described in subparagraph (i) or (ii) above, and specifying the
particulars thereof in detail.

    


    
      	
               
      

            	
              (d)

            	
              Good
      Reason.  The Executive’s employment may be terminated by
      the Executive for “Good Reason”.  For purposes of this
      Agreement, "Good Reason” shall mean a separation from employment occurring
      no later than two years following the initial existence of one or more of
      the following conditions arising without the consent of the
      Executive:

            


    

    


    
      	
               
      

            	
              (i)

            	
              any
      action by the Company, including the assignment to the Executive of any
      duties inconsistent in any material respect with the Executive’s position
      (including status, offices, titles and reporting requirements), authority,
      duties or responsibilities as contemplated by Section 4(a) of this
      Agreement, which results in a material diminution in the Executive's
      position, authority, duties or responsibilities;
  or

            


    

    


    
      	
               
      

            	
              (ii)

            	
              any
      material failure by the Company to comply with any of the provisions of
      Section 4(b)(i) and (ii) of this Agreement;
or

            


    

    


    
      	
               
      

            	
              (iii)

            	
              any
      material change in the geographic location at which the Executive must
      perform services to the Company

            


    

    


    In each
case described above, in order to constitute "Good Reason" the Executive shall
be required to give notice to the Company of the existence of the condition
within 90 days after the initial existence of the condition (the failure to
timely give such notice shall negate the existence of such condition as a
condition giving rise to a "Good Reason" termination), which notice shall give
the Company 30 days within which to remedy the condition and which, if so
remedied, will negate the existence of the condition as a condition giving rise
to a "Good Reason" termination.  Notwithstanding anything herein to
the contrary, the Executive shall not be deemed to have consented to any
condition described in this Section 5(d) unless such consent is in
writing.

    


    
      	
               
      

            	
              (e)

            	
              With Adequate
      Reason.  The Executive’s employment may be terminated by
      the Executive for any reason or no reason during the 30-day period
      immediately following the first anniversary of the Effective Date, which
      shall be referred to for purposes of this Agreement as a termination “With
      Adequate Reason”.

            


    

    


    
      	
               
      

            	
              (f)

            	
              Without
      Cause.  The Executive’s employment may be terminated by
      the Company other than as a result of the Executive’s death or Disability
      and other than for Cause, which termination (if it occurs at any time
      other
      than upon a Change of Control) shall be referred to for purposes of
      this Agreement as a termination “Without
Cause”.

            


    

    


    
      	
               
      

            	
              (g)

            	
              Notice of
      Termination.  Any termination (i) by the Company for
      Cause, (ii) by the Company without Cause, (iii) by the Executive for Good
      Reason, (iv) by the Executive With Adequate Reason, or (v) by the Company
      upon a Change of Control shall be communicated by Notice of Termination to
      the other party hereto given in accordance with this
      Agreement.  For purposes of this Agreement, a “Notice of
      Termination” means a written notice which (i) indicates the specific
      termination provision in this Agreement relied upon, (ii) to the extent
      applicable, sets forth in reasonable detail the facts and circumstances
      claimed to provide a basis for termination of the Executive’s employment
      under the provision so indicated and (iii) if the Date of Termination (as
      defined below) is other than the date of receipt of such notice, specifies
      the termination date (which date shall be not more than 30 days after the
      giving of such notice).  The failure by the Executive or the
      Company to set forth in the Notice of Termination any fact or circumstance
      which contributes to a showing of Good Reason or Cause shall not waive any
      right of the Executive or the Company, respectively, hereunder or preclude
      the Executive or the Company, respectively, from asserting such fact or
      circumstance in enforcing the Executive’s or the Company’s rights
      hereunder.

            


    

    


    
      	
               
      

            	
              (g)

            	
              Date of
      Termination.  “Date of Termination” means (i) if the
      Executive’s employment is terminated (A) by the Company for Cause, (B) by
      the Executive for Good Reason, (C) by the Executive With Adequate Reason,
      (D) by the Company upon the occurrence of a Change of Control, or (E) by
      the Company Without Cause, the date of receipt of the Notice of
      Termination or any later date specified therein, as the case may be, and
      (ii) if the Executive’s employment is terminated by reason of death or
      Disability, the date of death of the Executive or the Disability Effective
      Date, as the case may be.

            


    

    


    
      	
               
      

            	
              6.

            	
              Obligations of the
      Company upon Termination.

            


    

    


    
      	
               
      

            	
              (a)

            	
              Termination upon the
      Occurrence of a Change of Control.  Notwithstanding the
      provisions of Section 6(b) of this Agreement, if the Company shall
      terminate the Executive’s employment upon the occurrence (but not later
      than 90 days after) a Change of
Control:

            


    

    


    
      	
               
      

            	
              (i)

            	
              the
      Company shall pay to the Executive in a lump sum in cash within 30 days
      after the Date of Termination the aggregate of the following
      amounts:

            


    

    


    
      	
               
      

            	
              A.

            	
              the
      sum of (1) the Executive’s Annual Base Salary through the Date of
      Termination to the extent not theretofore paid, (2) the product of (x) the
      higher of (i) the Recent Annual Bonus and (ii) the Annual Bonus paid or
      payable, including any bonus or portion thereof which has been earned but
      deferred (and annualized for any year consisting of less than 12 full
      months or during which the Executive was employed for less than 12 full
      months), for the most recently completed Bonus Year during the Employment
      Period for which an Annual Bonus was payable, if any (such higher amount
      being referred to as the “Highest Annual Bonus”) and (y) a fraction, the
      numerator of which is the number of days in the Bonus Year in which the
      termination of employment occurs through the Date of Termination and the
      denominator of which is 365 and (3) any accrued vacation pay to the extent
      not theretofore paid (the sum of the amounts described in clauses (1), (2)
      and (3) shall be hereinafter referred to for purposes of this Agreement as
      the “Accrued Obligations”); and

            


    

    


    
      	
               
      

            	
              B.

            	
              the
      amount equal to the product of (1) three and (2) the sum of the
      Executive’s (x) Annual Base Salary and (y) Highest Annual Bonus
      (hereinafter referred to for purposes of this Agreement as the “Severance
      Obligations”); and

            


    

    


    
      	
               
      

            	
              C.

            	
              an
      amount equal to the excess of (1) the actuarial equivalent of the benefit
      under the Company’s qualified defined benefit retirement plan (the
      “Retirement Plan”) (utilizing actuarial assumptions no less favorable to
      the Executive than those in effect under the Company’s Retirement Plan
      immediately prior to the Effective Date), and any excess or supplemental
      retirement plan in which the Executive participates (together, the “SERP”)
      which the Executive would receive if the Executive’s employment continued
      for three years after the Date of Termination assuming for this purpose
      that all accrued benefits are fully vested and assuming that the
      Executive’s compensation in each of the three years is that required by
      Sections 4(b)(i) and 4(b)(ii), over (b) the actuarial equivalent of the
      Executive’s actual benefit (paid or payable), if any, under the Retirement
      Plan and the SERP as of the Date of Termination (the amount computed in
      accordance with this subparagraph (C) shall be hereinafter referred to for
      purposes of this Agreement as the "SERP
  Benefit");

            


    

    


    
      	
               
      

            	
              (ii)

            	
              subject
      to the provisions of Section 6(h) below, for three years after the Date of
      Termination, or such longer period as may be provided by the terms of the
      appropriate plan, program, practice or policy, the Company shall continue
      benefits to the Executive and/or the Executive’s family at least equal to
      those which would have been provided to them in accordance with the plans,
      programs, practices and policies described in Section 4(b)(iv) of this
      Agreement if the Executive’s employment had not been terminated or, if
      more favorable to the Executive, as in effect generally at any time during
      such three year period with respect to other peer executives of the
      Company and its affiliated companies and their families, provided,
      however, that if the Executive becomes employed with another employer who
      provides medical and other welfare plans, the medical and other welfare
      benefits described herein shall be secondary to those provided under such
      other plans during such applicable period of eligibility.  For
      purposes of determining eligibility (but not the time of commencement of
      benefits) of the Executive for retiree benefits pursuant to such plans,
      practices, programs and policies, the Executive shall be considered to
      have remained employed until three years after the Date of Termination and
      to have retired on the last day of such period.  The benefits
      described in this clause (ii) and the extent to which the Executive is
      entitled to such benefits shall be hereinafter referred to for purposes of
      this Agreement as the “Welfare
Benefits”;

            


    

    


    
      	
               
      

            	
              (iii)

            	
              the
      Company shall, at its sole expense as incurred, provide the Executive with
      reasonable outplacement services directly related to the Executive's
      termination of services to the Company, the provider of which shall be
      selected by the Executive in his sole discretion, for a period ending no
      later than the last day of the second taxable year of the Company
      following the Company’s taxable year in which the Date of Termination
      occurs, provided that any reimbursement by the Company of such expense
      must be paid no later than the end of the third taxable year of the
      Company following the taxable year of the Company in which the Executive's
      termination of employment occurs.  The reimbursement for
      outplacement services described in this clause (iii), including the
      restrictions on reimbursement set forth herein, shall be referred to for
      purposes of this Agreement as the “Outpatient Assistance Benefit”;
      and

            


    

    


    
      	
               
      

            	
              (iv)

            	
              to
      the extent not theretofore paid or provided, the Company shall timely pay
      or provide to the Executive all other amounts or benefits required to be
      paid or provided or which the Executive is eligible to receive under any
      plan, program, policy, practice, contract or agreement of the Company and
      its affiliated companies (other than this Agreement), which amounts or
      benefits shall be paid or provided in accordance with the terms of such
      plan, program, policy, practice, contract or agreement (such other amounts
      and benefits shall be hereinafter referred to for purposes of this
      Agreement as the “Other Benefits”).

            


    

    


    
      	
               
      

            	
              (b)

            	
              Termination by the
      Company Without Cause or by the Executive With Good
      Reason.  If, during the Employment Period, the Company
      shall terminate the Executive’s employment Without Cause or the Executive
      shall terminate the Executive’s employment for Good
  Reason:

            


    

    


    
      	
               
      

            	
              (i)

            	
              the
      Company shall pay to the Executive in a lump sum in cash within 30 days
      after the Date of Termination the aggregate of the following
      amounts:

            


    

    


    
      	
               
      

            	
              A.

            	
              an
      amount equal to the Accrued Obligations;
and

            


    

    


    
      	
               
      

            	
              B.

            	
              an
      amount equal to the Severance Obligations;
and

            


    

    


    
      	
               
      

            	
              C.

            	
              an
      amount equal to the SERP Benefit;

            


    

    


    
      	
               
      

            	
              (ii)

            	
              Subject
      to the provisions of Section 6(h) below, for three years after the
      Executive’s Date of Termination, or such longer period as may be provided
      by the terms of the appropriate plan, program, practice or policy, the
      Company shall continue the Welfare
Benefits;

            


    

    


    
      	
               
      

            	
              (iii)

            	
              the
      Company shall, at its sole expense as incurred, provide the Executive with
      the Outplacement Assistance Benefit:
and

            


    

    


    
      	
               
      

            	
              (iv)

            	
              to
      the extent not theretofore paid or provided, the Company shall timely pay
      or provide the Other Benefits to the
Executive.

            


    

    


    
      	
               
      

            	
              (v)

            	
              In
      the event that during the Employment Period (A) the Executive's employment
      is terminated by the Company Without Cause or by the Employee for Good
      Reason and (B) the Company has securities which are publicly traded on an
      “established securities market” and the Executive is a “specified
      employee,” in each case within the meaning of Section 409A of the Code, as
      of the Date of Termination, then notwithstanding the preceding provisions
      of this Section 6(b), the payments and benefits to be made or provided to
      the Executive pursuant to clauses (i)B. and C. and clauses (ii) and (iv)
      of this Section 6(b) prior to the date which is six months and one day
      after the Date of Termination shall not exceed the sum of (X) two times
      the lesser of (1) the Executive’s annualized salary for the Company’s
      taxable year in which the Date of Termination occurs, or (2) the amount
      described in Section 401(a)(17) of the Code for the calendar year in which
      the Date of Termination occurs (the "Termination Year"), plus (Y) the
      applicable dollar amount under Section 402(g)(1)(B) of the Code for the
      Termination Year, plus (Z) the medical and dental benefits to be provided
      in accordance with Section 4(b)(iv) of this Agreement (collectively, the
      “Permitted Payments”).  To the extent that the preceding
      provisions of this Section 6(b) would require payment to the Executive
      during the six month period commencing on the Date of Termination of any
      amount in excess of the Permitted Payments, such excess shall be paid to
      the Executive (without interest) on the date that is six months plus one
      day after the Date of Termination.   The provisions of this
      clause (v) shall apply only in the event and to the extent necessary to
      prevent the imposition of any accelerated or additional tax under Section
      409A of the Code.

            


    

    


    
      	
               
      

            	
              (vi)

            	
              Notwithstanding
      anything in this Section 6(b) to the contrary, if the termination of the
      Executive's employment by the Company Without Cause or by the Executive
      with Good Reason occurs more than two years after the Change of Control,
      then in the event that the provisions of this Section 6(b) are subject to
      aggregation with any other separation pay plan of the Company offering
      involuntary termination benefits to the Executive pursuant to Section 409A
      of the Code and the Treasury Regulations thereunder, the payments required
      to be made by the Company to the Executive pursuant to clauses (i)B. and
      C. of this Section 6(b) shall be paid to the Executive at the time and in
      accordance with the provisions of such other separation pay plan of the
      Company (but subject to the provisions of clauses (v) of this Section
      6(b), if applicable).

            


    

    


    
      	
               
      

            	
              (c)

            	
              Death.  If
      the Executive’s employment is terminated by reason of the Executive’s
      death during the Employment Period, this Agreement shall terminate without
      further obligations to the Executive’s legal representatives under this
      Agreement other than for payment of Accrued Obligations and the timely
      payment or provision of Other Benefits.  Accrued Obligations
      shall be paid to the Executive’s estate or beneficiary, as applicable, in
      a lump sum in cash within 30 days after the Date of
      Termination.  With respect to the provision of Other Benefits,
      the term “Other Benefits” as utilized in this Section 6(c) only shall
      include, without limitation, and the Executive’s estate and/or
      beneficiaries shall be entitled to receive, benefits at least equal to the
      most favorable benefits provided by the Company and affiliated companies
      to the estates and beneficiaries of peer executives of the Company and
      such affiliated companies under such plans, programs, practices and
      policies relating to death benefits, if any, as in effect with respect to
      other peer executives and their beneficiaries at any time during the
      120-day period immediately preceding the Effective Date or, if more
      favorable to the Executive’s estate and/or the Executive’s beneficiaries,
      as in effect on the date of the Executive’s death with respect to other
      peer executives of the Company and its affiliated companies and their
      beneficiaries.

            


    

    


    
      	
               
      

            	
              (d)

            	
              Disability.  If
      the Executive’s employment is terminated by reason of the Executive’s
      Disability during the Employment Period, this Agreement shall terminate
      without further obligations to the Executive, other than for payment of
      Accrued Obligations and the timely payment or provision of Other
      Benefits.  Accrued Obligations shall be paid to the Executive in
      a lump sum in cash within 30 days after the Date of
      Termination.  With respect to the provision of Other Benefits,
      the term “Other Benefits” as utilized in this Section 6(d) only shall
      include, and the Executive shall be entitled after the Disability
      Effective Date to receive, disability and other benefits at least equal to
      the most favorable of those generally provided by the Company and its
      affiliated companies to disabled executives and/or their families in
      accordance with such plans, programs, practices and policies relating to
      disability, if any, as in effect generally with respect to other peer
      executives and their families at any time during the 120-day period
      immediately preceding Effective Date or, if more favorable to the
      Executive and/or the Executive’s family, as in effect on the Disability
      Effective Date with respect to other peer executives of the Company and
      its affiliated companies and their
families.

            


    

    


    
      	
               
      

            	
              (e)

            	
              For
      Cause.  If the Executive’s employment is terminated
      during the Employment Period by the Company for Cause, this Agreement
      shall terminate without further obligations to the Executive other than
      the obligation to pay to the Executive within 30 days after the Date of
      Termination (i) his Annual Base Salary through the Date of Termination,
      and (ii) the Other Benefits, in each case to the extent theretofore
      unpaid.

            


    

    


    
      	
               
      

            	
              (f)

            	
              Termination by the
      Executive With Adequate Reason.   If the Executive's
      employment is terminated during the Employment Period by the Executive
      With Adequate Reason:

            


    

    


    
      	
               
      

            	
              (i)

            	
              the
      Company shall pay to the Executive in a lump sum in cash within 30 days
      after the Date of Termination the aggregate of the following
      amounts:

            


    

    


    
      	
               
      

            	
              A.

            	
              an
      amount equal to the Accrued Obligations;
and

            


    

    


    
      	
               
      

            	
              B.

            	
              an
      amount equal to the Severance Obligations;
and

            


    

    


    
      	
               
      

            	
              C.

            	
              an
      amount equal to the SERP Benefit;

            


    

    


    
      	
               
      

            	
              (ii)

            	
              Subject
      to the provisions of Section 6(h) below, for three years after the Date of
      Termination, or such longer period as may be provided by the terms of the
      appropriate plan, program, practice or policy, the Company shall continue
      the Welfare Benefits;

            


    

    


    
      	
               
      

            	
              (iii)

            	
              the
      Company shall, at its sole expense as incurred, provide the Executive with
      the Outplacement Assistance Benefit;
and

            


    

    


    
      	
               
      

            	
              (iv)

            	
              to
      the extent not theretofore paid or provided, the Company shall timely pay
      or provide the Other Benefits to the
Executive.

            


    

    


    
      	
               
      

            	
              (v)

            	
              In
      the event that (A) the Executive's employment is terminated with Adequate
      Reason and (B) the Company has securities which are publicly traded on an
      “established securities market” and the Executive is a “specified
      employee,” in each case within the meaning of Section 409A of the Code, as
      of the Date of Termination, then notwithstanding the preceding provisions
      of this Section 6(f), the payments and benefits which may be made or
      provided to the Executive pursuant to clauses (i)B. and C. and clauses
      (ii) and (iv) of this Section 6(f) prior to the date which is six months
      and one day after the Date of Termination shall be limited to the medical
      and dental benefits to be provided in accordance with Section 4(b)(iv) of
      this Agreement plus such benefits (to be selected by the Employee from the
      benefits to be provided under this Section 6(f)) in an aggregate amount
      not to exceed the amount described in Section 402(g)(1)(B) of the Code for
      the Termination Year.  To the extent that the preceding
      provisions of this Section 6(f) would require payment to the Executive
      during the six month period commencing on the Date of Termination in
      excess of this limitation, then any such excess shall be paid to the
      Executive (without interest) on the date that is six months plus one day
      after the Date of Termination.  The provisions of this clause
      (v) shall apply only in the event and to the extent necessary to prevent
      the imposition of any accelerated or additional tax under Section 409A of
      the Code.

            


    

    


    
      	
               
      

            	
              (g)

            	
              Termination by
      Executive Other Than For Good Reason or With Adequate
      Reason.  If the Executive voluntarily terminates his
      employment during the Employment Period, excluding a termination for Good
      Reason or With Adequate Reason, this Agreement shall terminate without
      further obligations to the Executive, other than for Accrued Obligations
      and the timely payment or provision of Other Benefits.  In such
      case, all Accrued Obligations shall be paid to the Executive in a lump sum
      in cash within 30 days after the Date of Termination and all Other
      Benefits shall be timely paid to the Executive in accordance with the
      terms of the appropriate plan, program, practice or
  policy.

            


    

    


    
      	
               
      

            	
              (h)

            	
              Special Rules for
      In-Kind Benefits or Reimbursements.  For purposes of
      Sections 6(a)(ii), 6(b)(ii), and 6(f)(ii), the provision of Welfare
      Benefits in kind to the Executive and/or the Executive's family or the
      provision of reimbursement to the Executive therefor shall be subject to
      the following conditions: (i) the expenses eligible for reimbursement and
      the in-kind benefits to be provided are objectively determinable and
      non-discretionary under applicable plans and programs of the Company ;
      (ii) the amount of expenses eligible for reimbursement or in-kind benefits
      provided during the Executive's taxable year may not affect the expenses
      eligible for reimbursement or in-kind benefits to be provided to the
      Executive in any other taxable year; (iii) the reimbursement of an
      eligible expense must be made on or before the last day of the Executive's
      taxable year following the taxable year in which the expense was incurred;
      and (iv) the right to reimbursement or in-kind benefits may not be subject
      to liquidation or exchange for another benefit.  The provisions
      of this subsection (h) shall apply only in the event and to the extent
      necessary to prevent the imposition of any accelerated or additional tax
      under Section 409A of the Code.

            


    

    


    7.           Non-exclusivity of
Rights.  Nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or
practice provided by the Company or any of its affiliated companies and for
which the Executive may qualify, nor shall anything herein limit or otherwise
affect such rights as the Executive may have under any other contract or
agreement with the Company or any of its affiliated
companies.  Amounts which are vested benefits or which the Executive
is otherwise entitled to receive under any plan, policy, practice or program of
or any contract or agreement with the Company or any of its affiliated companies
at or subsequent to the Date of Termination shall be payable in accordance with
such plan, policy, practice or program or contract or agreement except as
explicitly modified by this Agreement.

    


    8.           Full
Settlement.  The Company’s obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against the
Executive or others.  In no event shall the Executive be obligated to
seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and such amounts shall not be reduced whether or not the Executive obtains other
employment.  The Company agrees to pay as incurred, to the full extent
permitted by law, all legal fees and expenses which the Executive may reasonably
incur as a result of any contest (regardless of the outcome thereof) by the
Company, the Executive or others of the validity or enforceability of, or
liability under, any provision of this Agreement or any guarantee of performance
thereof (including as a result of any contest by the Executive about the amount
of any payment pursuant to this Agreement), plus in each case interest on any
delayed payment at the "Applicable Federal Rate" provided for in Section
7872(f)(2)(A) of the Code.

    


    9.           Certain Reductions of
Payments.

    


    
      	
               
      

            	
              (a)

            	
              Anything
      in this Agreement to the contrary notwithstanding, in the event it shall
      be determined that any payment or distribution by the Company to or for
      the benefit of the Executive (whether paid or payable or distributed or
      distributable pursuant to the terms of this Agreement or otherwise) (a
      “Payment”) would be nondeductible by the Company for Federal income tax
      purposes because of Section 280G of the Code, then the aggregate present
      value of amounts payable or distributable to or for the benefit of the
      Executive pursuant to this Agreement (such payments or distributions
      pursuant to this Agreement are hereinafter referred to as “Agreement
      Payments”) shall be reduced (but not below zero) to the Reduced
      Amount.  The “Reduced Amount” shall be an amount expressed in
      present value which maximizes the aggregate present value of Agreement
      Payments without causing any Payment to be nondeductible by the Company
      because of Section 280G of the Code.  For purposes of this
      Section 9 present value shall be determined in accordance with Section
      280G(d)(4) of the Code.

            


    

    


    
      	
               
      

            	
              (b)

            	
              All
      determinations required to be made under this Section 9 shall be made by
      the independent registered public accounting firm retained by the
      Company immediately prior to the Effective Date (the “Accounting Firm”)
      which shall provide detailed supporting calculations both to the Company
      and the Company shall elect which and how much of the Agreement Payments
      shall be eliminated or reduced consistent with the requirements of this
      Section 9 and shall notify the Executive promptly of such
      election.  Within five business days thereafter, the Company
      shall pay to or distribute to or for the benefit of the Executive such
      amounts as are then due to the Executive under this
    Agreement.

            


    

    


    
      	
               
      

            	
              (c)

            	
              As
      a result of the uncertainty in the application of Section 280G of the Code
      at the time of the initial determination by the Accounting Firm hereunder,
      it is possible that Agreement Payments will have been made by the Company
      which should not have been made (“Overpayment”) or that additional
      Agreement Payments which will have not been made by the Company could have
      been made (“Underpayment”), in each case, consistent with the calculations
      required to be made hereunder.  In the event that the Accounting
      Firm determines that an Overpayment has been made, any such Overpayment
      shall be treated for all purposes as a loan to the Executive which the
      Executive shall repay to the Company together with interest at the
      Applicable Federal Rate provided for in Section 7872(f)(2) of the Code;
      provided, however, that no amount shall be payable by the Executive to the
      Company (or if paid by the Executive to the Company shall be returned to
      the Executive) if and to the extent such payment would not reduce the
      amount which is subject to taxation under Section 4999 of the
      Code.  In the event that the Accounting Firm determines that an
      Underpayment has occurred, any such Underpayment shall be promptly paid by
      the Company to or for the benefit of the Executive together with interest
      at the Applicable Federal Rate provided for in Section 7872(f)(2) of the
      Code.

            


    

    


    10.           Confidential
Information.  The Executive shall hold in a fiduciary capacity
for the benefit of the Company all secret or confidential information, knowledge
or data relating to the Company or any of its affiliated companies, and their
respective businesses, which shall have been obtained by the Executive during
the Executive’s employment by the Company or any of its affiliated companies and
which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in violation of this
Agreement),  After termination of the Executive’s employment with the
Company, the Executive shall not, without prior written consent of the Company
or as may otherwise be required by law or legal process, communicate or divulge
any such information, knowledge or data to anyone other than the Company and
those designated by it.  In no event shall an asserted violation of
the provisions of this Section 10 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this
Agreement.  This Section 10 shall survive the termination or
expiration of this Agreement.

    


    11.           Termination of Change of
Control Agreements.  At any time during the period commencing
30 days preceding and ending 12 months following a Change of Control, the
Company, by irrevocable action of its Board of Directors, may elect to terminate
this Agreement and all other similar agreements then in effect and that would be
considered as a single plan for purposes of Treasury Regulation Section
1.409A-3(j)(4)(ix)(B) (collectively, the "Change of Control Agreements"), so
that under the terms of such termination all employees (including the Executive)
who are parties to then effective Change of Control Agreements will receive the
compensation and benefits specified by the terms of such
Agreements.  In the event of such a termination of the Change of
Control Agreements at any time that this Agreement is in effect, the Executive
shall be entitled to the payments and benefits set forth in Section 6(b)
hereof.

    


    12.           Limited Right of the Company
to Accelerate Payments or Benefits.  Except as otherwise
provided herein, the Company may not accelerate the payment of any benefits or
amounts that constitute "deferred compensation" for purposes of Section 409A of
the Code (as in effect at the time of such acceleration), except that the
Company may accelerate the time or schedule of a payment hereunder and a payment
hereunder may be made at any time that the provisions of this Agreement fail to
meet the requirements of Section 409A of the Code and the Treasury Regulations
thereunder, but not to exceed the amount required to be included in income as a
result of the failure to comply with the requirements of Section 409A of the
Code and the Treasury Regulations thereunder.

    


    
      	
               
      

            	
              13.

            	
              Successors.

            


    

    


    
      	
               
      

            	
              (a)

            	
              This
      Agreement is personal to the Executive and without the prior written
      consent of the Company shall not be assigned by the Executive otherwise
      than by will or the laws of descent and distribution.  This
      Agreement shall inure to the benefit of and be enforceable by the
      Executive’s legal representative.

            


    

    


    
      	
               
      

            	
              (b)

            	
              This
      Agreement shall inure to the benefit of and be binding upon the Company
      and its successors and assigns.

            


    

    


    
      	
               
      

            	
              (c)

            	
              The
      Company will require any successor (whether direct or indirect, by
      purchase, merger, consolidation or otherwise) to all or substantially all
      of the business and/or assets of the Company to assume expressly and agree
      to perform this Agreement in the same manner and to the same extent that
      the Company would be required to perform it if no such succession had
      taken place.  As used in this Agreement, “Company” shall mean
      Forest Laboratories, Inc. with respect to the period prior to the
      Effective Date and Forest Laboratories, Inc. or any successor to its
      business and/or assets for the period on or after the Effective
      Date.

            


    

    


    
      	
               
      

            	
              14.

            	
              Miscellaneous.

            


    

    


    
      	
               
      

            	
              (a)

            	
              This
      Agreement shall be governed by and construed in accordance with the laws
      of the State of New York, without reference to principles of conflict of
      laws.  The captions of this Agreement are not part of the
      provisions hereof and shall have no force or effect.  This
      Agreement may not be amended or modified otherwise than by a written
      agreement executed by the parties hereto or their respective successors
      and legal representatives.

            


    

    


    
      	
               
      

            	
              (b)

            	
              All
      notices and other communications hereunder shall be in writing and shall
      be given by hand delivery to the other party or by registered or certified
      mail, return receipt requested, postage prepaid, addressed as
      follows:

            


    

    


    If to the
Executive:

    Raymond Stafford

    c/o Forest Laboratories,
Inc.

    909 Third Avenue

    New York, New York 10022

    


    If to the
Company:

    


    Forest Laboratories, Inc.

    Attention:  Vice President-
General Counsel

    909 Third Avenue

    New York, New York 10022

    


    or to
such other address as either party shall have furnished to the other in writing
in accordance herewith.  Notice and communications shall be effective
when actually received by addressee.

    


    
      	
               
      

            	
              (c)

            	
              The
      invalidity or unenforceability of any provision of this Agreement shall
      not affect the validity or enforceability of any other provision of this
      Agreement.

            


    

    


    
      	
               
      

            	
              (d)

            	
              The
      Company may withhold from any amounts payable under this Agreement such
      Federal, state, local or foreign taxes as shall be required to be withheld
      pursuant to any applicable law or
regulation.

            


    

    


    
      	
               
      

            	
              (e)

            	
              The
      Executive’s or the Company’s failure to insist upon strict compliance with
      any provision of this Agreement or the failure to assert any right the
      Executive or the Company may have hereunder shall not be deemed to be a
      waiver of such provision or right or any other provision or right of this
      Agreement.

            


    

    


    
      	
               
      

            	
              (f)

            	
              The
      Executive and the Company acknowledge that, except as may otherwise be
      provided under any written agreement between the Executive and the
      Company, the employment of the Executive by the Company is “at will” and,
      subject to Sections 1(a) and 6(a) hereof, prior to the Effective Date, the
      Executive’s employment and/or this Agreement may be terminated by either
      the Executive or the Company at any time prior to the Effective Date, in
      which case the Executive shall have no further rights under this
      Agreement.  From and after the Effective Date this Agreement
      shall supersede any other agreement between the parties with respect to
      the subject matter hereof, including but not limited to any agreement
      between the Company and the Executive pursuant to which Executive is
      entitled to continuation or severance
benefits.

            


    

    


    
      	
               
      

            	
              (g)

            	
              The
      date for payments payable under this Agreement shall be determined in
      accordance with the terms of this Agreement and shall not be subject to
      direct or indirect designation by the
Executive.

            


    

    


    
      	
               
      

            	
              (h)

            	
              Each
      payment under this Agreement shall be treated as a separate payment for
      purposes of Code Section 409A.

            


    

    


    IN
WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and,
pursuant to the authorization from its Board of Directors, the Company has
caused these presents to be executed in its name on its behalf, all as of the
day and year first above written.

    


    


    


    /s/ Raymond
Stafford

    Raymond Stafford

    


    Date: October 29, 2008

    


    


    FOREST LABORATORIES, INC.

    


    


    By:/s/ Lawrence S.
Olanoff

    Lawrence S. Olanoff, M.D.,
Ph.D.

    President, Chief Operating
Officer