Document:

EXHIBIT
      10.6.3

    

    PAR
      PHARMACEUTICAL COMPANIES, INC.

    

    TERMS
      OF RESTRICTED STOCK UNIT AWARD

    

    This
      document sets forth the terms of the award of Restricted Stock Units (as defined
      in Section 1 below) granted by PAR PHARMACEUTICAL COMPANIES, INC. (the
“Company”) pursuant to a Certificate of Restricted Stock Units (the
“Certificate”) displayed at the website of Smith Barney Benefits Access® (“Smith
      Barney”). The Certificate, which specifies the person to whom the Restricted
      Stock Units have been awarded (the “Participant”), other specific details of the
      award, and the electronic acceptance of the Certificate at the website of Smith
      Barney, are incorporated herein by reference.

    

    WHEREAS,
      the Board of Directors (the “Board”) of the Company has authorized and approved
      the Par Pharmaceutical Companies, Inc. 2004 Performance Equity Plan (the
“Plan”), which has been approved by the stockholders of the Company;

    

    WHEREAS,
      the Plan, in part, provides for the grant of Restricted Stock Units to certain
      employees of the Company and any Subsidiary of the Company;

    

    WHEREAS,
      pursuant to the Plan, the Committee has approved an award to the Participant
      of
      Restricted Stock Units, designated in the Certificate, on the terms and
      conditions set forth in the Plan and in these Terms. Capitalized terms used
      but
      not defined in these Terms shall have the meanings set forth in the
      Plan.

    

    NOW,
      THEREFORE, the parties, intending to be legally bound, agree as
      follows:

    

    1. 
Grant
      of Restricted Stock Units.

    

    (a) As
      of the
      Grant Date set forth in the Certificate, the Company grants to the Participant
      the number of Restricted Stock Units set forth in the Certificate (the “Units”),
      which represent shares of the Company’s common stock (“Shares”). The Units are
      subject to the restrictions set forth in Section 2 of these Terms and the
      applicable provisions of the Plan. 

    

    (b) The
      Units
      granted under these Terms shall be reflected in a bookkeeping account maintained
      by the Company during the Restricted Period. If and when the restrictions set
      forth in Section 2 expire in accordance with the terms of these Terms, and
      upon
      the satisfaction of all other applicable conditions as to the Units, such Units
      (and any related Dividend Units described in Section 1(c) below) not forfeited
      pursuant to Section 4 hereof shall be settled in cash or Shares as provided
      in
      Section 1(e) of these Terms and otherwise in accordance with the
      Plan.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)
      With
      respect to each Unit, whether or not vested, that has not been forfeited (but
      only to the extent such award of Units has not been settled for cash or Shares),
      the Company shall, with respect to any cash dividends paid on the Shares, accrue
      and credit to the Participant’s bookkeeping account a number of Units having a
      Fair Market Value as of the date such dividend is paid equal to the cash
      dividends that would have been paid with respect to such Unit if it were an
      outstanding Share (the “Dividend Units”). These Dividend Units thereafter shall
      (i) be treated as Units for purposes of future dividend accruals pursuant to
      this Section 1(c); and (ii) vest in such amounts (rounded to the nearest whole
      Unit) at the same time as the Units with respect to which such Dividend Units
      were received. Any dividends or distributions on Shares paid other than in
      cash
      shall accrue in the Participant’s bookkeeping account and shall vest at the same
      time as the Units in respect of which they are made (in each case in the same
      form, based on the same record date and at the same time, as such dividend
      or
      other distribution is paid on such Share). 

    

    (d) The
      Company’s obligations under these Terms (with respect to both the Units and the
      Dividend Units, if any) shall be unfunded and unsecured, and no special or
      separate fund shall be established and no other segregation of assets shall
      be
      made. The rights of Participant under these Terms shall be no greater than
      those
      of a general unsecured creditor of the Company. In
      addition, the Units shall be subject to such restrictions as the Company may
      deem advisable under the rules, regulations and other requirements of the
      Securities and Exchange Commission, any stock exchange upon which Shares are
      then listed, any Company policy and any applicable federal or state securities
      law.

    

    (e) Except
      as
      otherwise provided in these Terms, settlement of the Units in accordance with
      the provisions of this Section 1(e) shall be delivered as soon as practicable
      after the end of the Restricted Period, and upon the satisfaction of all other
      applicable conditions as to the Units (including the payment by the Participant
      of all applicable withholding taxes). The Units so payable to the Participant
      shall be paid solely in Shares, solely in cash based on the Fair Market Value
      of
      the Shares (determined as of the first business day next following the last
      day
      of the Restricted Period), or in a combination of the two, as determined by
      the
      Committee in its sole discretion. 

    

    2. 
Restrictions.

    

    (a) The
      Participant shall have no rights as a stockholder of the Company by virtue
      of
      any Unit unless and until such Unit vests pursuant to the schedule set forth
      in
      Section 3(a) and resulting Shares are issued to the Participant:

    

    (b) 
       None
      of
      the Units may be sold, transferred, assigned, pledged or otherwise encumbered
      or
      disposed of until such Units are deemed vested in accordance with the schedule
      in Section 3(a) and are not otherwise forfeited pursuant to Section 4, except
      as
      may be permitted by the Plan or as otherwise permitted by the Committee in
      its
      sole discretion or pursuant to rules adopted by the Committee in accordance
      with
      the Plan.

    

    (c) Any
      attempt to dispose of the Units or any interest in the Units in a manner
      contrary to the restrictions set forth in these Terms shall be void and of
      no
      effect.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    
3.      Restricted
      Period and Vesting. 

    

    (a) Such
      portion of the Units shall be deemed vested and no longer subject to forfeiture
      under Section 4 hereof or the restrictions set forth in Section 2 hereof in
      accordance with the following schedule:

     

    
      
        	
                Vesting
                  Date

              	
                Vested
                  Percentage

              
	 	 
	
                1st
                  Anniversary of the Date of Grant

              	
                25%

              
	
                2nd
                  Anniversary of the Date of Grant

              	
                50%

              
	
                3rd
                  Anniversary of the Date of Grant

              	
                75%

              
	
                4th
                  Anniversary of the Date of Grant

              	
                100%

              

      

       

    

    (b) Notwithstanding
      the foregoing vesting schedule, the Restricted Stock Unit Award will be deemed
      fully vested and no longer subject to forfeiture in the event of a Change of
      Control of the Company (as defined in and subject to the provisions of the
      Plan).

    

    4. 
Forfeiture. 

    

    (a)
      Subject to Section 6 hereof, if
      prior
      to the date such Units are deemed vested in accordance with the schedule in
      Section 3, (i) the Participant incurs a termination of employment or service
      with the Company, (ii) there occurs a material breach of the Certificate or
      these Terms and Conditions by the Participant, or (iii) the Participant fails
      to
      meet the tax withholding obligations described in Section 5(b) hereof, all
      rights of the Participant to the Units that have not vested in accordance with
      Section 3 as of the date of such event shall terminate immediately and be
      forfeited in their entirety. 

    

    (b) In
      the
      event that the Participant’s employment with the Company, its Affiliates and/or
      its Subsidiaries, is terminated due to the Participant’s death or disability,
      all rights of the Participant (or, in the event of the Participant’s death, the
      Participant’s Beneficiary) to the Unites that have not vested shall immediately
      vest and no longer be subject to forfeiture. 

    

    5. 
Withholding.

    

    (a) The
      Committee shall determine the amount of any withholding or other tax required
      by
      law to be withheld or paid by the Company with respect to any income recognized
      by the Participant with respect to the Units.

    

    (b) The
      Participant shall be required to meet any applicable tax withholding obligation
      in accordance with the provisions of the Plan.

    

    (c) Subject
      to any rules prescribed by the Committee, the Participant shall have the right
      to elect to meet any withholding requirement (i) by having withheld from this
      Award at the appropriate time that number of whole Shares whose Fair Market
      Value is equal to the amount of any taxes required to be withheld with respect
      to such Award, (ii) by direct payment to the Company in cash of the amount
      of
      any taxes required to be withheld with respect to such Award or (iii) by a
      combination of Shares and cash.

    

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    6. 
Committee’s
      Discretion. Notwithstanding
      any provision of these Terms to the contrary, the
      Committee shall have discretion to waive any forfeiture of the Units as set
      forth in Section 4 hereof, the Restricted Period and any other conditions set
      forth in these Terms.

    

    7. 
Defined
      Terms.
      Capitalized terms used but not defined in these Terms shall have the meanings
      set forth in the Plan, unless such term is defined in the Participant’s
      Employment Agreement. Any terms used in these Terms, but defined in the
      Participant’s Employment Agreement are incorporated herein by reference and
      shall be effective for purposes of the Certificate and these Terms without
      regard to the continued effectiveness of the Employment Agreement. 

    

    8. 
Nonassignability.
      The
      Units
      may not be sold, assigned, transferred (other than by will or the laws of
      descent and distribution, or to an inter vivos trust with respect to which
      the
      Participant is treated as the owner under Sections 671 through 677 of the Code),
      pledged, hypothecated, or otherwise encumbered or disposed of until the
      restrictions on such Units, as set forth in these Terms, have lapsed or been
      removed.

    

    9. 
Participant
      Representations.
      The
      Participant hereby represents to the Company that the Participant has read
      and
      fully understands the provisions of the Certificate, these Terms and the Plan
      and the Participant’s decision to participate in the Plan is completely
      voluntary. Further, the Participant acknowledges that the Participant is relying
      solely on his or her own advisors with respect to the tax consequences of this
      restricted stock award.

    

    10. 
Regulatory
      Restrictions on the Units.
      Notwithstanding any other provision of the Plan, the obligation of the Company
      to issue Shares in connection with this Award under the Plan shall be subject
      to
      all applicable laws, rules and regulations and such approval by any regulatory
      body as may be required. The Company reserves the right to restrict, in whole
      or
      in part, the delivery of Shares pursuant to these Terms prior to the
      satisfaction of all legal requirements relating to the issuance of such shares,
      to their registration, qualification or listing or to an exemption from
      registration, qualification or listing.

    

    11. 
Miscellaneous.

    

    
      	
            	11.1	
              Notices.
                All notices, requests, deliveries, payments, demands and other
                communications which are required or permitted to be given under
                these
                Terms shall be in writing and shall be either delivered personally
                or sent
                by registered or certified mail, or by private courier, return receipt
                requested, postage prepaid to the parties at their respective addresses
                set forth below, or to such other address as either shall have specified
                by notice in writing to the other. Notice shall be deemed duly given
                hereunder when delivered or mailed as provided
                herein.

            

    

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    
 

    
      	
            	If
              to Company:	
              Par
                Pharmaceutical Companies, Inc.

              300
                Tice Boulevard

              Woodcliff
                Lake, NJ 07677

            

      	
            	 	 

      	
            	If to Optionee:	Address of Optionee on file with the
              Company.

    

     

    
      	
            	11.2	
              Waiver.
                The waiver by any party hereto of a breach of any provision of the
                Certificate or these Terms shall not operate or be construed as a
                waiver
                of any other or subsequent breach.

            

    

    

    
      	
            	11.3	
              Entire
                Agreement.
                These Terms, the Certificate and the Plan constitute the entire agreement
                between the parties with respect to the subject matter hereof.
                

            

    

    

    
      	
            	11.4	
              Binding
                Effect; Successors.
                These Terms shall inure to the benefit of and be binding upon the
                parties
                hereto and to the extent not prohibited herein, their respective
                heirs,
                successors, assigns and representatives. Nothing in these Terms,
                express
                or implied, is intended to confer on any person other than the parties
                hereto and as provided above, their respective heirs, successors,
                assigns
                and representatives any rights, remedies, obligations or
                liabilities.

            

    

    

    
      	
            	11.5	
              Governing
                Law.
                The Certificate and these Terms shall be governed by and construed
                in
                accordance with the laws of the State of
                Delaware.

            

    

    

    
      	
            	11.6	
              Headings.
                The headings contained herein are for the sole purpose of convenience
                of
                reference, and shall not in any way limit or affect the meaning or
                interpretation of any of the terms or provisions of these
                Terms.

            

    

    

    
      	
            	11.7	
              Conflicts;
                Amendment.
                The provisions of the Plan are incorporated in these Terms in their
                entirety. In the event of any conflict between the provisions of
                these
                Terms and the Certificate or the Plan, the provisions of the Certificate
                or the Plan, as the case may be, shall control. The Agreement may
                be
                amended at any time by written agreement of the parties
                hereto.

            

    

    

    
      	
            	11.8	
              No
                Right to Continued Employment.
                Nothing in the Certificate or these Terms shall confer upon the
                Participant any right to continue in the employ or service of the
                Company
                or affect the right of the Company to terminate the Participant’s
                employment or service at any time.

            

    

    

    
      	
            	11.9	
              Further
                Assurances.
                The Participant agrees, upon demand of the Company or the Committee,
                to do
                all acts and execute, deliver and perform all additional documents,
                instruments and agreements which may be reasonably required by the
                Company
                or the Committee, as the case may be, to implement the provisions
                and
                purposes of the Certificate and these Terms and the
                Plan.

            

    

     

    
 

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties have duly executed these Terms, as of the day
      and
      year first above written.

    

    PAR
      PHARMACEUTICAL COMPANIES, INC.

    

    Thomas
      J.
      Haughey

    Executive
      Vice President and General Counsel

    

    

    PARTICIPANT

    

    (Acceptance
      designated electronically at the

    website
      of Smith Barney)

    

    

    
      
         

      

      
        -6-EXHIBIT
      10.6.4

    PAR
      PHARMACEUTICAL COMPANIES, INC.

    

    TERMS
      OF PERFORMANCE SHARES AWARD

    

    

    This
      document sets forth the terms of the award of Performance Shares (as defined
      in
      Section 1.1 below) granted by PAR PHARMACEUTICAL COMPANIES, INC. (the “Company”)
      pursuant to a Certificate of Performance Shares (the “Certificate”) displayed at
      the website of Smith Barney Benefits Access®. The Certificate, which specifies
      the person to whom the Performance Shares have been awarded (the “Participant”),
      other specific details of the award, and the electronic acceptance of the
      Certificate at the website of Smith Barney, are incorporated herein by
      reference.

     

    

    WHEREAS,
      the Board of Directors (the “Board”) of the Company has authorized and approved
      the Par Pharmaceutical Companies, Inc. 2004 Performance Equity Plan (the
“Plan”), which has been approved by the stockholders of the Company;

    

    WHEREAS,
      the Plan, in part, provides for the grant of Performance Shares to certain
      employees of the Company and any Subsidiary of the Company;

    

    WHEREAS,
      pursuant to the Plan, the Committee has approved an award to the Participant
      of
      Performance Shares, designated in the Certificate, on the terms and conditions
      set forth in the Plan and in these Terms. Capitalized terms used but not defined
      in these Terms shall have the meanings set forth in the Plan.

    

    NOW,
      THEREFORE, the parties, intending to be legally bound, agree as follows:

     

    
      
        	 1. 	PERFORMANCE
                SHARES

      

    

     

    1.1 Grant
      of Performance Shares.

    

    (a) Subject
      to the terms and conditions hereinafter set forth and set forth in the Plan,
      the
      Company grants as of the date of grant specified on the Certificate (the “Date
      of Grant”) to the Participant shares of common stock, par value $.01 per share
      (“Common Stock”), specified on the Certificate and representing the number of
      shares to be awarded to the Participant in the event that all target performance
      conditions set forth in Section 1.3 of these Terms are determined to have been
      met (the “Target Shares”). The Target Shares are subject to the restrictions set
      forth in Section 1.2 of these Terms and the performance vesting conditions
      of
      Section 1.3 of these Terms, as well as all other applicable terms and conditions
      of the Plan and these Terms. If and when the restrictions set forth in Section
      1.2 expire in accordance with these Terms, and upon the satisfaction of all
      other applicable conditions as to the Performance Shares, such shares not
      forfeited pursuant to Section 1.4 hereof shall no longer be considered
      restricted Target Shares for purposes of these Terms. As soon as practicable
      after the Date of Grant, the Company shall direct that a stock certificate
      or
      certificates representing the applicable Target Shares be registered in the
      name
      of, and issued to, the Participant. Such certificate or certificates shall
      be
      held in the custody of the Company or its designee until such Shares have vested
      (or such applicable portion of the Shares as may become vested) in accordance
      with the schedule in Section 1.3(b). On or before the date of acceptance of
      these Terms, the Participant has delivered to the Company one or more stock
      powers endorsed in blank relating to the Target Shares.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (b) In
      addition to the Target Shares, the Participant may be awarded additional shares
      of Common Stock equal to fifty percent (50%) of the Target Shares following
      the
      completion of the Performance Cycle (as defined in Section 1.3(a) below) in
      the
      event that the Company’s performance during the Performance Cycle is determined
      to have achieved the maximum performance level set forth in Section 1.3(b)
      (the
“Maximum Performance Shares”). 

    

    (c) In
      addition to the Target Shares and the Maximum Performance Shares, the
      Participant may be awarded additional shares of Common Stock equal to
      twenty-five percent (25%) of the total of the Target and, if applicable, the
      Maximum Performance Shares ultimately awarded and payable to the Participant
      following the completion of the Performance Cycle in the event that the Company
      is determined to have met or exceeded the performance conditions relative to
      the
      S&P index set forth in Section 1.3(c) during the Performance Cycle (the
“S&P Performance Shares”). For purposes of these Terms, the Target Shares,
      the Maximum Performance Shares and the S&P Performance Shares shall be
      referred to collectively as the “Performance Shares.”

    

    (d) The
      Maximum Performance Shares and the S&P Performance Shares granted under
      these Terms shall be reflected in a bookkeeping account maintained by the
      Company during the Performance Cycle. If and when the Maximum Performance Shares
      and the S&P Performance Shares become payable in accordance with these
      Terms, and upon the satisfaction of all other applicable conditions as to the
      Maximum Performance Shares and the S&P Performance Shares, such Shares shall
      be settled in cash or Shares as provided in Section 1.1(g) of these Terms and
      otherwise in accordance with the Plan.

    

    (e) Each
      certificate for the Target Shares shall bear the following legend (the
“Legend”):

    

    
      	 	 	
              The
                ownership and transferability of this certificate and the shares
                of stock
                represented hereby are subject to the terms and conditions (including
                forfeiture) of the Par Pharmaceutical Companies, Inc. 2004 Performance
                Equity Plan and the associated Terms of Performance Shares Award
                entered
                into between the registered owner and Par Pharmaceutical Companies,
                Inc.
                Copies of such Plan and Terms are on file in the executive offices
                of Par
                Pharmaceutical Companies, Inc., 300 Tice Boulevard, Woodcliff Lake,
                NJ
                07677.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    In
      addition, the stock certificate or certificates for the Target Shares shall
      be
      subject to such stop-transfer orders and other restrictions as the Company
      may
      deem advisable under the rules, regulations and other requirements of the
      Securities and Exchange Commission, any stock exchange upon which Common Stock
      is then listed, and any applicable federal or state securities law, and the
      Company may cause a legend or legends to be placed on such certificate or
      certificates to make appropriate reference to such restrictions.

    

    (f) As
      soon
      as administratively practicable following the vesting of all or any portion
      of
      the Target Shares, and upon the satisfaction of all other applicable conditions
      as to such vested Target Shares, including the payment by the Participant of
      all
      applicable withholding taxes, the Company shall deliver or cause to be delivered
      to the Participant a certificate or certificates for the applicable vested
      Target Shares that shall not bear the Legend. 

    

    (g) Except
      as
      otherwise provided in these Terms, settlement of the Maximum Performance Shares
      and the S&P Performance Shares that become payable under these Terms shall
      be delivered as soon as practicable after the end of the Performance Cycle
      and
      the determination as to whether the applicable performance conditions have
      been
      met, and upon the satisfaction of all other applicable conditions (including
      the
      payment by the Participant of all applicable withholding taxes). The Maximum
      Performance Shares or S&P Performance Shares so payable to the Participant
      shall be paid solely in shares of Common Stock, solely in cash based on the
      Fair
      Market Value of the Common Stock, or in a combination of the two, as determined
      by the Committee in its sole discretion.

    

    1.2 Restrictions.

    

    (a) Beginning
      with the Date of Grant, the Participant shall have all rights and privileges
      of
      a stockholder as to the Target Shares, including the right to vote and receive
      dividends or other distributions with respect to the Target Shares, except
      that
      the following restrictions shall apply:

    

    (i)
      the
      Participant shall not be entitled to delivery of the certificate or certificates
      for the Target Shares until such Target Shares are deemed vested in accordance
      with the schedule in Section 1.3(a), and are not otherwise forfeited pursuant
      to
      Section 1.4 hereof and upon the satisfaction of all other applicable
      conditions;

    

    (ii) 
      none of the Target Shares may be sold, transferred, assigned, pledged or
      otherwise encumbered or disposed of prior to the date such Target Shares are
      deemed vested in accordance with the schedule in Section 1.3(a), except as
      provided in Section 8.3 of the Plan or as otherwise permitted by the Committee
      in its sole discretion or pursuant to rules adopted by the Committee in
      accordance with the Plan; 

    

    (iii)
      all
      shares of Common Stock distributed as a dividend or distribution, if any, with
      respect to the Target Shares prior to the date such Target Shares are deemed
      vested in accordance with the schedule in Section 1.3(a) shall be delivered
      to
      and held by the Company and subject to the same restrictions as the related
      Target Shares until the vesting of such Target Shares, and subject to the
      satisfaction of all other applicable conditions; and

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (iv)
      all
      of the Target Shares shall be subject to forfeiture on the terms and conditions
      set forth in Section 1.4 hereof; if forfeited, the Target Shares shall be
      returned to the Company and all rights of the Participant with respect to the
      Target Shares shall terminate in their entirety on the terms and conditions
      set
      forth in Section 1.4 hereof.

    

    (b) The
      Participant shall have no rights as a stockholder of the Company by virtue
      of
      any Maximum Performance Shares or S&P Performance Shares unless and until
      such Shares become payable hereunder and resulting shares of Common Stock are
      issued to the Participant. Further, none of the Maximum Performance Shares
      or
      the S&P Performance Shares, or any interest in such Shares, may be sold,
      transferred, assigned, pledged or otherwise encumbered or disposed of unless
      and
      until such Shares become payable hereunder and resulting shares of Common Stock
      are issued to the Participant, except as may be permitted by the Plan or as
      otherwise permitted by the Committee in its sole discretion or pursuant to
      rules
      adopted by the Committee in accordance with the Plan.

    

    (c) Any
      attempt to dispose of any Performance Shares or any interest in any Performance
      Shares in a manner contrary to the restrictions set forth in these Terms shall
      be void and of no effect.

    

    1.3 Performance
      Cycle and Performance Vesting Conditions. 

    

    (a) For
      purposes of this Performance Share Award, the “Performance Cycle” is the 3-year
      fiscal period of the Company commencing on January 1, 2008 and ending on
      December 31, 2010. At the close of the Performance Cycle, the Committee shall
      determine the extent to which the applicable performance conditions have been
      achieved and authorize settlement of the Performance Shares to the extent such
      Shares become issuable or payable as a result of such performance. Settlement
      of
      the Performance Shares shall occur as soon as practicable thereafter, but in
      any
      event shall be no later than March 15, 2011.

    

    (b) The
      Target Shares and the Maximum Performance Shares shall vest and become issuable
      or payable, as the case may be, based on the following performance
      schedule:

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              Performance
                Measure Based on Total Shareholder 

              Return
                (TSR) Annualized over 3-Year 

              Performance
                Cycle

            	 	
              Performance
                Level

            	 	
              Percentage
                of 

              Performance
                Shares

               to
                be Issued

            
	
               

              Meet
                or Exceed 75th Percentile TSR for Peer Group

               

            	 	
               

              Maximum

            	 	
               

              150%

            
	
               

              Meet
                or Exceed Median TSR for Peer Group

               

            	 	
               

              Target

            	 	
               

              100%

            
	
               

              Meet
                or Exceed 6% TSR

               

            	 	
               

              Threshold

            	 	
               

              25%

            
	
               

              Less
                Than 6% TSR 

               

            	 	
               

              Below
                Threshold

            	 	
               

              0%

            

    

    

    For
      purposes of the above performance schedule only, the following terms shall
      have
      the meanings set forth below:

     

    
      (i)
        “Peer
        Group” consists of Alpharma Inc., Angiotech Pharmaceuticals, Inc., Barr
        Pharmaceuticals, Inc., Biovail Corporation, Endo Pharmaceuticals Holdings
        Inc.,
        K-V Pharmaceutical Company, King Pharmaceuticals, Inc., Medicis Pharmaceutical
        Corporation, Mylan Inc. (formerly Mylan Laboratories, Inc.), Perrigo Company,
        Sciele Pharma, Inc., Shire plc, Teva Pharmaceutical Industries Ltd., Valeant
        Pharmaceutical International, Warner Chilcott Limited, and Watson
        Pharmaceuticals, Inc. If during the Performance Cycle a company in the Peer
        Group is acquired or becomes no longer publicly traded, then that company
        shall
        be removed from the Peer Group and shall not be factored into the performance
        calculation. If more than four companies are removed from the Peer Group,
        the
        Committee in its discretion shall approve additional companies to be added
        to
        the Peer Group to maintain a broad comparator group.

    

    

    (ii)
“Total
      Shareholder Return” or “TSR” means the percentage equal to the annualized
      appreciation in the Common Stock price determined using the average stock price
      for the last three months of 2007 as the beginning point and the average price
      for the last three months of 2010 as the ending point, plus dividends (on a
      cumulative reinvested basis). The starting point for the Performance Cycle
      is
      $19.58, which is the average of the Company’s Common Stock price for the last
      three months of 2007.

    

    (c) The
      S&P Performance Shares shall vest and become payable following the
      Performance Cycle if the Company’s TSR for the Performance Cycle exceeds the
      median TSR of the Standard & Poor’s 400 MidCap Index (or any equivalent
      index designated by the Committee in the event that the S&P 400 MidCap Index
      is replaced or otherwise no longer available during the Performance Cycle).
      The
      S&P Performance Shares are payable only if the Company’s performance
      otherwise reaches the Threshold level or above in the schedule under Section
      1.3(b).

     

    (d) Notwithstanding
      subsections (b) and (c) above, upon a “Change of Control” of the Company, the
      Participant shall be deemed to have vested in a number of Performance Shares
      based on the extent to which the Company has achieved the performance conditions
      in this Section 1.3 as of the date of such Change in Control (as determined
      by
      the Committee) and such Shares shall no longer be subject to forfeiture under
      Section 1.4 hereof or the restrictions set forth in Section 1.2 hereof and
      shall
      be issuable or payable, as the case may be, as soon as practicable following
      the
      Committee’s determination. Notwithstanding the foregoing, if the Participant is
      at a classification level of Senior Vice President or above at the time of
      such
      Change in Control and the Change in Control occurs before January 1, 2010,
      the
      Participant shall be required to continue in the service of the successor
      company for a period of six (6) months following the Change in Control in order
      to become vested in the applicable number of Performance Shares determined
      under
      the preceding sentence; provided, however, that such Participant shall be deemed
      fully vested in such Performance Shares if, prior to the expiration of such
      six
      (6)-month period, the acquiring company terminates the Participant’s employment
      without “Cause.” For purposes of these Terms only, the term “Cause” shall mean
      (i) the Participant’s conviction of, or plea of nolo
      contendere
      to, a
      crime that constitutes a felony; (ii)
      the
      Participant’s gross misconduct that is materially and demonstrably injurious to
      the Company or its successor; or (iii) the commission by the Participant of
      an
      act of fraud or embezzlement against the Company or its successor.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    1.4 Forfeiture. 

    

    (a)  Subject
      to the applicable provisions of this Section 1.4 and Section 1.6
      hereof, if
      prior
      to the date the Performance Shares are deemed vested in accordance with the
      schedule and conditions in Section 1.3, (i) the Participant’s employment with
      the Company, its Affiliates and/or its Subsidiaries is terminated for any reason
      other than death or disability, including termination by reason of resignation,
      (ii) there occurs a material breach of these Terms by the Participant or
      (iii) the Participant fails to meet the tax withholding obligations described
      in
      Section 1.5(b) hereof, all rights of the Participant to the Performance Shares
      that have not vested in accordance with Section 1.3 hereof as of the date of
      such termination shall terminate immediately and be forfeited in their entirety.
      

    

    (b) In
      the
      event that the Participant’s employment with the Company, its Affiliates and/or
      its Subsidiaries, is terminated due to the Participant’s death or disability,
      the Participant (or, in the event of the Participant’s death, the Participant’s
      Beneficiary) shall be entitled to the number of Performance Shares that become
      issuable or payable in accordance with Sections 1.1(f) and (g), as applicable,
      following the Performance Cycle. 

    

    (c) In
      the
      event of any forfeiture under this Section 1.4 hereof, the certificate or
      certificates representing the forfeited Target Shares shall be canceled to
      the
      extent of any Target Shares that were forfeited.

    

    1.5 Withholding.

    

    (a) The
      Committee shall determine the amount of any withholding or other tax required
      by
      law to be withheld or paid by the Company with respect to any income recognized
      by the Participant with respect to the Performance Shares.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    (b) The
      Participant shall be required to meet any applicable tax withholding obligation
      in accordance with the provisions of Article 18 of the Plan.

    

    (c) The
      Committee shall be authorized, in its sole discretion, to establish such rules
      and procedures relating to the use of shares of Common Stock to satisfy tax
      withholding obligations as it deems necessary or appropriate to facilitate
      and
      promote the conformity of the Participant’s transactions under the Plan and
      these Terms with Rule 16b-3 under the Securities Exchange Act of 1934, as
      amended, if such Rule is applicable to transactions by the
      Participant.

    

    1.6 Committee’s
      Discretion. Notwithstanding
      any provision of these Terms to the contrary, the
      Committee shall have discretion under Section 17.1 of the Plan to waive any
      forfeiture of the Performance Shares as set forth in Section 1.4 hereof, the
      restrictions set forth in Section 1.2 hereof and any other conditions set forth
      in these Terms.

     

    
      
        	 2. 	REPRESENTATIONS OF THE
                PARTICIPANT

      

    

     

    The
      Participant hereby represents to the Company that the Participant has read
      and
      fully understands the provisions of these Terms and the Plan and his or her
      decision to participate in the Plan is completely voluntary. Further, the
      Participant acknowledges that the Participant is relying solely on his or her
      own advisors with respect to the tax consequences of this award.

    

    3. NOTICES

    

    All
      notices or communications under these Terms shall be in writing, addressed
      as
      follows:

     

    
      	 	To the Company:
	 	 
	 	
              Par
                Pharmaceutical Companies, Inc.

              300
                Tice Boulevard

              Woodcliff
                Lake, NJ 07677

              Attention:
                General Counsel

            
	 	 
	 	To the Participant:
	 	
            
	 	Address on file with the
              Company

    

     

    Any
      such
      notice or communication shall be (a) delivered by hand (with written
      confirmation of receipt) or sent by a nationally recognized overnight delivery
      service (receipt requested) or (b) be sent certified or registered mail, return
      receipt requested, postage prepaid, addressed as above (or to such other address
      as such party may designate in writing from time to time), and the actual date
      of receipt shall determine the time at which notice was given.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
              4.

            	
              ASSIGNMENT;
                BINDING AGREEMENT

            

    

    

    These
      Terms shall be binding upon and inure to the benefit of the heirs and
      representatives of the Participant and the assigns and successors of the
      Company, but neither these Terms nor any rights hereunder shall be assignable
      or
      otherwise subject to hypothecation by the Participant.

    

    
      	
              5.

            	
              ENTIRE
                AGREEMENT; AMENDMENT;
                TERMINATION

            

    

    

    These
      Terms and the Certificate represent the entire agreement of the parties with
      respect to the subject matter hereof. The provisions of the Plan are
      incorporated in these Terms in their entirety. In the event of any conflict
      between the provisions of these Terms and the Certificate and the Plan, the
      provisions of the Certificate or the Plan, as the case may be, shall control.
      These Terms may be amended at any time by written agreement of the parties
      hereto.

    

    
      	
              6.

            	
              GOVERNING
                LAW

            

    

    

    These
      Terms and their validity, interpretation, performance and enforcement shall
      be
      governed by the laws of the State of Delaware other than the conflict of laws
      provisions of such laws.

    

    
      	
              7.

            	
              SEVERABILITY

            

    

    

    Whenever
      possible, each provision in these Terms shall be interpreted in such manner
      as
      to be effective and valid under applicable law, but if any provision of these
      Terms shall be held to be prohibited by or invalid under applicable law, then
      (a) such provision shall be deemed amended to accomplish the objectives of
      the provision as originally written to the fullest extent permitted by law
      and
      (b) all other provisions of these Terms shall remain in full force and
      effect.

    

    
      	
              8.

            	
              NO
                RIGHT TO CONTINUED EMPLOYMENT OR PARTICIPATION; EFFECT ON OTHER
                PLANS

            

    

     

    These
      Terms shall not confer upon the Participant any right with respect to continued
      employment by the Company, its Affiliates or its Subsidiaries or continued
      participation under the Plan, nor shall it interfere in any way with the right
      of the Company, its Affiliates and its Subsidiaries to terminate the
      Participant’s employment at any time. Payments received by the Participant
      pursuant to these Terms shall not be included in the determination of benefits
      under any pension, group insurance or other benefit plan of the Company, its
      Affiliates or any Subsidiaries in which the Participant may be enrolled or
      for
      which the Participant may become eligible, except as may be provided under
      the
      terms of such plans or determined by the Board. 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
              9.

            	
              NO
                STRICT CONSTRUCTION

            

    

    

    No
      rule
      of strict construction shall be implied against the Company, the Committee
      or
      any other person in the interpretation of any of the terms of the Plan, these
      Terms or any rule or procedure established by the Committee.

     

    
      	
              10.

            	
              USE
                OF THE WORD
“PARTICIPANT”

            

    

     

    Wherever
      the word “Participant” is used in any provision of these Terms under
      circumstances where the provision should logically be construed to apply to
      the
      executors, the administrators, or the person or persons to whom the Performance
      Shares may be transferred by will or the laws of descent and distribution,
      the
      word “Participant” shall be deemed to include such person or
      persons.

     

    
      	
              11. 

            	
              FURTHER
                ASSURANCES

            

    

     

    The
      Participant agrees, upon demand of the Company or the Committee, to do all
      acts
      and execute, deliver and perform all additional documents, instruments and
      agreements (including, without limitation, stock powers with respect to shares
      of Common Stock issued as a dividend or distribution on Target Shares) that
      may
      be reasonably required by the Company or the Committee, as the case may be,
      to
      implement the provisions and purposes of these Terms and the Plan.

    

    IN
      WITNESS WHEREOF, the parties have duly executed these Terms, as of the day
      and
      year first above written.

     

    
      
        	 	PAR PHARMACEUTICAL COMPANIES,
                INC.
	 	 
	 	
                Thomas
                  J. Haughey

                Executive
                  Vice President and General Counsel

              
	 	 
	 	 
	 	PARTICIPANT
	 	 
	 	
                (Acceptance
                  designated electronically at the

                website
                  of Smith Barney)

              

      

    

     

    
      
        
        

      

      
        9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]