Document:

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                                                                    EXHIBIT 10.8

                 Compensatory Arrangements of Executive Officers
                 -----------------------------------------------

       The Compensation Committee (the "Committee") of the Board of Directors of
OSI Pharmaceuticals, Inc. ("OSI" or the "Company") approved the 2005 annual base
salaries and 2004 cash bonuses for OSI's executive officers including the
Company's named executive officers (as that term is defined in Item 402 of
Regulation S-K) as set forth in OSI's proxy statement dated February 2, 2005.
The following table sets forth the annual base salary levels of such officers
for 2005 as compared to 2004 as well as the 2004 cash bonuses for each such
officer:

<TABLE>
                  Name and Position                       2004 Base Salary      2005 Base Salary       2004 Bonus
                  -----------------                       ----------------      ----------------       ----------
<CAPTION>
<S>                                                        <C>                     <C>                  <C>

Colin Goddard, Ph.D.                                         $550,000               $600,000            $400,000
Chief Executive Officer

Gabriel Leung                                                $361,000               $380,000            $145,000
Executive Vice President and President, (OSI)
Oncology

Anker Lundemose, M.D., Ph.D., D.Sc.(1)                 (pound)150,000         (pound)175,000       (pound)60,000
Executive Vice President and President, (OSI)
Prosidion

Robert Simon(2)                                              $280,000               $335,000            $100,000
Executive Vice President, Pharmaceutical Development
and Technical Operations

Robert L. Van Nostrand(3)                                    $260,000               $275,000            $135,000
Vice President, Chief Financial Officer and Treasurer

Barbara A. Wood                                              $277,000               $287,000             $90,000
Vice President,  General Counsel and Secretary

Michael G. Atieh(4)                                               n/a               $410,000                 n/a

Nicole Onetto, M.D.(5)                                       $361,000               $375,000(5)         $150,000
Former Executive Vice President, Chief Medical Officer

</TABLE>

(1) During fiscal 2004, Dr. Lundemose received an additional bonus of
    (pound)94,000 related to the identification and successful acquisition by
    Prosidion Limited, OSI's wholly-owned subsidiary, of certain assets from
    Probiodrug AG as per his Employment Agreement.

(2) During 2004, Mr. Simon agreed to relocate from Boulder, Colorado to the
    Company's headquarters in Melville, New York. In connection with his
    relocation, the Company agreed to a relocation package and the forgiveness
    of a $100,000 loan assumed by the Company as part of its 2001 acquisition of
    Gilead Sciences Inc.'s oncology business. The total amount of relocation
    costs reimbursed in 2004 were $251,423 including the forgiveness of the
    loan. The Company anticipates additional payments of relocation costs in
    fiscal 2005.

(3) As of May 31, 2005, Mr. Van Nostrand will assume the role of Senior Vice
    President and Chief Compliance Officer.

(4) As of May 31, 2005, Mr. Atieh will assume the role of Executive Vice
    President, Chief Financial Officer and Treasurer.

(5) Dr. Onetto's employment with the Company terminated as of May 2, 2005. Terms
    of her severance arrangement can be found in the Employment Separation
    Agreement and Release of Legal Rights between the Company and Dr. Onetto,
    filed as an exhibit to OSI's Current Report on Form 8-K filed on April 22,
    2005.

<PAGE>

 Bonuses
 -------

         The Committee's policy of awarding annual bonuses is designed to
specifically relate executive pay to Company and individual performance. All
Company employees, including the executive officers, are assigned a grade level,
and each grade level is assigned a bonus target, a percentage of which is tied
to Company performance and a percentage of which is tied to individual
performance. With respect to executive officers, the percentage tied to the
Company performance is weighted more heavily than the individual performance.
For example, in the case of a bonus for an executive officer with a grade level
of 11, 25% of the bonus is based on individual performance and 75% of the bonus
is based upon Company performance. With regard to each of the two components
(Company performance and individual performance), an employee can earn a range
around the target level (100%). The range for the Company performance component
is 0% to 150% and the percentage is recommended by the CEO each year and
approved by the Committee. The range for the individual performance component is
also 0% to 150% and is based upon individual performance. Individual performance
is measured in accordance with the Company's employee performance management
procedures, and the percentage is recommended by the CEO for the executive
officers and approved by the Committee. For purposes of compensation decisions
for 2004, the Committee measured the Company's performance and that of each
executive officer in fiscal year 2004 against goals established by the executive
officers and ratified by the Committee under the Company's Annual Business Plan
prior to the start of the fiscal year. For 2004, the Committee awarded the
respective executive officers' discretionary bonuses in accordance with the
foregoing process. For 2004, the Company performance component was set at 150%.

         The bonus targets for the executive officers are either set in
accordance with their employment agreements or are based upon their respective
grade levels, the latter of which are currently under review for 2005.

Stock Option Grants
-------------------

         Executive officers are eligible for awards of stock options or shares
of stock pursuant to the Company's Amended and Restated Stock Incentive Plan.
Such awards are made at the discretion of the Committee.

         Annual stock option grants for executive officers are a key element of
the executive officer's total compensation. As for all Company employees, the
stock option grants made annually to the executive officers are made in
accordance with the Company's formula-based policy for granting options.
According to the formula, each grade level is assigned a grant multiple. The
number of options granted to an executive officer is determined by multiplying
the executive officer's salary by the grant multiple and then dividing the
product by a stock price which is determined by the CEO and ratified by the
Committee and is typically a 3-6 month trailing average. In 2004, the CEO
recommended stock option grants for the executive officers based upon the
foregoing criteria, and the Committee reviewed and approved the grants.

                                       2
<PAGE>

Perquisites
-----------

       The only perquisite granted to executive officers which is not available
to other employees relates to the use of automobiles and is in the form of
either the payment of a car lease or, in lieu thereof, a monthly cash payment.
Currently, Mr. Atieh is the only executive officer who does not receive the
perquisites.

                                       3EX-10.41

 

EXHIBIT 10.41

POLICY OF ENDO PHARMACEUTICALS HOLDINGS INC.

RELATING TO INSIDER TRADING IN COMPANY

SECURITIES AND CONFIDENTIALITY OF INFORMATION

	 	 	 
	To:

	 	All Personnel
	From:

	 	Carol A. Ammon, Chairman & Chief Executive Officer

      The Board of Directors has adopted the following Policy which applies to all personnel
(including directors and officers) of Endo Pharmaceuticals Holdings Inc. and its subsidiaries
(collectively called the “Company”) arising from our legal and ethical responsibilities as a public
company.

      1. Prohibition Against Trading on Undisclosed Material Information: If you are aware of
material information relating to the Company which has not yet been available to the public for at
least two full days (often called “inside information”), you are prohibited from trading in our
securities, directly or indirectly, and from disclosing such information to any other persons who
may trade in our securities. Any information, positive or negative, is “material” if it might be
of significance to an investor in determining whether to purchase, sell or hold our securities.
Information may be significant for this purpose even if it would not alone determine the investor’s
decision. Examples include a potential business acquisition, internal information about revenues,
earnings or other aspects of financial performance which departs in any way from what the market
would expect based upon prior disclosures, important business developments (including FDA approval
or nonapproval of one of our products), the acquisition or loss of major customer, or an important
transaction. We emphasize that these examples are merely illustrative. When we refer to our
“securities” we mean both the Company’s common stock and the Company’s warrants.

      Once material information is publicly announced, trading can occur after a lapse of two
full trading days. Therefore, if an announcement is made before the commencement of trading on a
Monday, an employee may trade in the Company’s stock or warrants starting on the Wednesday of that
week, because two full trading days would have elapsed by then (all of Monday and Tuesday). If the
announcement is made on Monday after trading begins, employees may not trade in the Company’s stock
or warrants until Thursday. Please consult myself, Jeffrey R. Black or Caroline B. Manogue if you
are uncertain when trading may commence following an announcement.

 

 

      The above prohibition against trading on inside information generally reflects the
requirements of law as well as the Company’s Policy. As more fully discussed fully discussed
below, a breach of this Policy probably will constitute a serious legal violations as well.

      2. Restricted Periods: In addition to the limitations set forth in Section 1 above, no
personnel should trade any securities of the Company during periods that begin 10 trading days
prior to the end of each of the Company’s fiscal quarters (including its fiscal year end) and
ending two full trading days after the financial results for each quarter, or with respect to the
fourth quarter for the full year, have been announced publicly (the “Restricted Period”). The
Company’s fiscal quarters end on each March 31, June 30 and September 30 and its fiscal year end is
December 31. The announcement date of the quarterly results varies, but occurs normally around the
45th day following the end of the fiscal quarter. For example, you cannot trade any
securities of the Company from June 15th until August 18th, two full trading
days after the second quarter results are publicly announced. Notwithstanding the foregoing,
personnel may sell any securities of the Company during a Restricted Period if such securities are
sold pursuant to an effective registration statement on Form S-3 or Form S-4 or any successor form
thereto on file with the U.S. Securities and Exchange Commission (an “Exempted Sale”) and such
personnel have received the consent of Jeffrey R. Black or Caroline B. Manogue prior to conducting
such sale. Furthermore, upon the receipt of a notice by mail, fax or email from the Company
informing personnel of an Exempted Sale, all personnel may trade any securities of the Company, if
such personnel shall have first received the consent of Jeffrey R. Black or Caroline B. Manogue to
conduct such sale, until such time as the Exempted Sale is consummated, but in no case for more
than three business days from the date of such notice.

      3. Confidentiality Generally: Serious problems arise from the unauthorized disclosure of
internal information about the Company (or confidential information about our customers or
vendors), whether or not the purpose of facilitating improper trading in our stock. Accordingly,
the Company’s confidentiality policy remains the same but is supplemented by this Policy. Company
personnel should not discuss internal Company matters or developments with anyone outside of the
Company, except as required in the performance of regular corporate duties.

      This prohibition applies specifically (but not exclusively) to inquiries about the Company
which may be made by the financial press, investment analyst or others in the financial community.
It is important that all such communications on behalf of the Company be made only through an
appropriately designated officer under carefully controlled circumstances. Unless you are
expressly authorized to the

 

 

contrary, if you receive any inquiries of this nature, you should decline comment and refer
the inquiry to Jeffrey R. Black or Caroline B. Manogue (or their respective successors as Chief
Financial Officer and Corporate Secretary).

      4. Information About Other Companies: In the course of your employment, you may become aware
of material non-public information about other public companies – for example, other companies with
which our Company has business dealings. You are prohibited from trading in the securities of any
other public company at a time when you are in possession of material non-public information about
such company.

      5. Tipping: Improper disclosure of non-public information to another person who trades in the
stock (so-called “tipping”) is also a serious legal offense by the tipper and a violation of the
terms of this Policy. If you disclose information about our Company, or information about any
other public company which you acquire in connection with your employment with our Company, you may
be fully responsible legally for the trading of the person receiving the information from you (your
“tippee”) and even persons who receive the information directly or indirectly from your tippee.
Accordingly, in addition to your general obligations to maintain confidentiality of information
obtained through your employment and to refrain from trading while in possession of such
information, you must take utmost care not to discuss confidential or non-public information with
family members, friends or others who might abuse the information by trading in securities.

      6. Limitation on Certain Trading Activities: We encourage interested employees to own
securities as a long-term investment at levels consistent with their individual financial
circumstances and risk bearing abilities (since ownership of any security entails risk). However,
Company personnel may not trade in puts, calls or similar options on our stock or sell our stock
“short”. (You may, of course, exercise any stock options granted to you by the Company in
accordance with their terms.)

      7. Consequence of Violation: The Company considers strict compliance with this Policy to be a
matter of utmost importance. We would consider any violation of this Policy by an employee as a
threat to our reputation. Violation of this Policy could cause extreme embarrassment and possible
legal liability to you and the Company. Knowing or willful violations of the letter or spirit of
this Policy will be grounds for immediate dismissal from the Company. Violation of the Policy
might expose the violator to severe criminal penalties as well as civil liability to any person
injured by the violation. The monetary damages flowing from a violation could be three times the
profit realized by the violator, as well as the attorneys’ fees of the persons injured.

 

 

      8. Resolving Doubts: If you have any doubt as to your responsibilities under this Policy,
seek clarification and guidance before you act from Jeffrey R. Black or Caroline B. Manogue (or
their respective successors as Chief Financial Officer and Chief Legal Officer). Do not try to
resolve uncertainties on your own.

      9. A Caution About Possible Inability to Sell: Although the Company encourages employees to
own our securities as a long-term investment (See Section 6), all personnel must recognize that
trading in securities may be prohibited at a particular time because of the existence of material
non-public information. Anyone purchasing our securities must consider the inherent risk that a
sale of the securities could be prohibited at a time he or she might desire to sell them. The next
opportunity to sell might not occur until after an extended period, during which the market price
of the securities might decline.

      10. 10b5-1 Trading Plans. Notwithstanding the foregoing, the Company’s Directors and
Executive Officers are permitted to establish trading plans in compliance with Rule 10b5-1(c) of
the Securities Exchange Act of 1934, as amended (each, a “Trading Plan”); provided
that any such plan must first be approved by Jeff Black and Caroline Manogue (or their
respective successors as Chief Financial Officer and General Counsel) prior to its implementation;
and provided further that any such plan shall provide that the Company may
terminate said plan for any reason.

*******

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