2010 CEO Short-Term Incentive Program



 Exhibit 10.55 

PHARMERICA CORPORATION 

SUMMARY OF 

2010 SHORT-TERM INCENTIVE PROGRAM – CEO 

AND 

2010 SHORT-TERM INCENTIVE PROGRAM 

2010 Short-Term Incentive Program – CEO 

On March 16, 2010, the Compensation Committee of the Board of Directors of PharMerica Corporation (the
“Corporation”) adopted the 2010 Short-Term Incentive Program (the “CEO STIP”) under the PharMerica Corporation 2007 Omnibus Incentive Plan, as amended (the “Omnibus Plan”), for the
Corporation’s Chief Executive Officer, Mr. Gregory Weishar. The CEO STIP provides for a performance-based annual cash award to Mr. Weishar. 

Performance Cycle. The CEO STIP performance cycle is for the current year, beginning on January 1, 2010 and ending on
December 31, 2010. 
 Maximum Award. If the Corporation’s Adjusted EBITDA (as defined below) is equal to or
greater than a target Adjusted EBITDA for the 2010 fiscal year, then Mr. Weishar is eligible to receive a payment under the CEO STIP equal to the lesser of (i) 2% of Adjusted EBITDA for the 2010 fiscal year; or (ii) $2 million (the
“Maximum Award”). The Compensation Committee, in its sole discretion, may decrease the Maximum Award based on its assessment of the Corporation’s performance, the Chief Executive Officer’s individual performance, or any
other factors it considers relevant, however in no event may the Compensation Committee reduce the Maximum Award below the annual Bonus Amount (as defined below) for the Chief Executive Officer. 

Bonus Amount. The target bonus amount for Mr. Weishar is 125% of his 2010 base salary. 70% of the target bonus amount is
based on the Corporation’s performance and 30% of the target bonus amount is based on individual performance goals. The Corporation must at least meet threshold Adjusted EBITDA of 93.4% of the target Adjusted EBITDA amount in order for any
payment to be made under the individual performance-based component. 
 The Corporation’s performance will be measured by
comparing the Corporation’s adjusted annual earnings before interest, taxes, integration, merger and acquisition and other related charges, depreciation and amortization expense, impairment charges of intangibles, and other accounting principle
changes (“Adjusted EBITDA”), to a target Adjusted EBITDA for the entire 2010 fiscal year. Individual performance will be measured by comparing certain individual performance metrics to the target individual performance metrics
determined by the Compensation Committee. 
 The actual bonus amount for Mr. Weishar (the “Bonus Amount”) is
based on the percentage of the performance target achieved. Generally, the percentage of the target bonus amount earned at the end of the performance cycle will be determined according to the following schedule; however the actual Bonus Amount will
be interpolated between the percentages set forth in the chart based on actual results: 
  

			
	 Performance Achievement
	  	 Payout Level

	 < 93.4% of Performance Target
	  	0% of target Bonus Amount
	 93.4% of Performance Target
	  	30% of target Bonus Amount
	 100% of Performance Target
	  	100% of target Bonus Amount
	 103.6% of Performance Target
	  	120% of target Bonus Amount
	 105.9% of Performance Target
	  	140% of target Bonus Amount
	 107.7% of Performance Target
	  	160% of target Bonus Amount
	 109.1% of Performance Target
	  	175% of target Bonus Amount
	 > 109.1% of Performance Target
	  	175% of target Bonus Amount








 Other. Terms related to payment of awards, vesting and forfeiture, and other
terms & provisions are as described below. 
 2010 Short-Term Incentive Program 

On March 16, 2010, the Compensation Committee of the Board of Directors of the Corporation adopted the 2010 Short-Term Incentive
Program (the “STIP”) under the Omnibus Plan. The STIP provides for performance-based annual cash awards to the Corporation’s executive officers, and certain other officers and employees of the Corporation. The STIP advances the
Corporation’s commitment to performance-based compensation practices by providing participants an opportunity to earn annual cash bonuses upon achievement of certain pre-established short-term performance objectives. 

Eligibility. Officers and employees of the Corporation may receive STIP cash awards as determined by the Board of Directors or the
Compensation Committee. 
 Performance Cycle. The STIP performance cycle is for the current year, beginning on
January 1, 2010 and ending on December 31, 2010. 
 Award Targets. The amount of the awards under the STIP are
based on individual participant bonus targets. Individual participant bonus targets are established for each participant by the Compensation Committee, in the case of the senior executive officers reporting to the Chief Executive Officer and by the
Chief Executive Officer, for other participants, based upon a determination of the appropriate bonus target amounts which will enable the Corporation to remain competitive, to retain and recruit top employees, and to align such employee’s
interests with certain strategic initiatives of the Corporation. Individual non-executive participant bonus targets range from 5% to 100% of base salary on December 31, 2010, with targets for the Corporation’s executive officers between
25% and 125% of base salary. 
 The Compensation Committee established the bonus targets under the STIP for the
Corporation’s fiscal 2009 Named Executive Officers, other than the Chief Executive Officer, as follows: 
  

					
	 Executive
	  	 Title
	  	Bonus Target
	 Michael J. Culotta
	  	 Executive Vice President & Chief Financial Officer
	  	80% of base salary
	 William Monast
	  	 Executive Vice President of Operations
	  	75% of base salary
	 Robert McKay
	  	 Senior Vice President of Sales and Marketing
	  	65% of base salary
	 Thomas Caneris
	  	 Senior Vice President, General Counsel and Secretary
	  	70% of base salary


Performance Criteria. The performance criteria under the STIP is divided into a company performance-based component and
individual/group performance-based component for different employees. The breakdown for the Named Executive Officers, other than the Chief Executive Officer, is as set forth in the chart below. The Corporation must at least meet threshold Adjusted
EBITDA of 93.4% of target in order for any payment to be made under the individual/group performance-based components of the STIP. 
  

									
	 Executive
	  	 Title
	  	Company
Performance	 	 	Individual/Group
Performance	 
	 Michael J. Culotta
	  	 Executive Vice President & Chief Financial Officer
	  	70 	%	 	30 	%
	 William Monast
	  	 Executive Vice President of Operations
	  	70 	%	 	30 	%
	 Robert McKay
	  	 Senior Vice President of Sales and Marketing
	  	50 	%	 	50 	%
	 Thomas Caneris
	  	 Senior Vice President, General Counsel and Secretary
	  	50 	%	 	50 	%

 Under the STIP,
company performance will be measured by comparing the Corporation’s Adjusted EBITDA, to a target Adjusted EBITDA for the entire 2010 fiscal year. Individual/group performance will be measured by comparing certain individual/group performance
metrics to target individual/group performance metrics established by the Corporation’s Compensation Committee in consultation with the Chief Executive Officer for the Named Executive Officers other than the Chief Executive Officer. 








 Award Payouts. Award payout levels are based on the percentage of the performance
target achieved. Generally, the percentage of the award earned at the end of the performance cycle will be determined according to the following schedule; however the actual award payout will be interpolated between the percentages set forth in the
chart based on actual results: 
  

			
	 Performance Achievement
	  	 Payout Level

	 < 93.4% of Performance Target
	  	0% of Award Target
	 93.4% of Performance Target
	  	30% of Award Target
	 100% of Performance Target
	  	100% of Award Target
	 103.6% of Performance Target
	  	120% of Award Target
	 105.9% of Performance Target
	  	140% of Award Target
	 107.7% of Performance Target
	  	160% of Award Target
	 109.1% of Performance Target
	  	175% of Award Target
	 > 109.1% of Performance Target
	  	175% of Award Target


Payment of Awards. Payment of STIP awards will be made in cash. Awards will be paid on a specific date by which the Compensation
Committee reasonably expects that the Corporation’s Adjusted EBITDA for the year on which the award was based will have been reported. The Corporation will make the payment of the STIP awards to participants as soon as administratively
practicable following the date of the award determination, but no later than March 15, 2011. 
 Vesting and
Forfeiture. STIP participants must remain continuously employed full-time by the Corporation until the award payment date in order to be entitled to receive a payout of an STIP award. 

Other Terms & Provisions. STIP participants are not permitted to transfer STIP awards, except by will or the laws of
descent and distribution. The Corporation is entitled to withhold from any payments of awards under the STIP any and all amounts required to be withheld for federal, state and local withholding taxes. The Compensation Committee has the discretion to
change terms and conditions of STIP awards as it deems necessary to ensure that the STIP awards satisfy all requirements for “performance-based compensation” within the meaning of Section 162(m)(4)(c) of the Internal Revenue Code.