Document:

Summary of 2008 Short Term Incentive Program

 Exhibit 10.43 
 PHARMERICA CORPORATION 
 SUMMARY OF 2008 SHORT-TERM INCENTIVE PROGRAM 
 On March 10, 2008, the Compensation Committee adopted a 2008 short-term incentive program (the “STIP”) under the PharMerica
Corporation 2007 Omnibus Incentive Plan (the “Omnibus Plan”). The STIP provides for performance-based annual cash awards to the Corporation’s Chief Executive Officer, 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. STIP cash awards will be granted to certain senior officers of the Corporation. The Committee
may grant STIP cash awards to other employees in their discretion. 
 Performance Cycle. The STIP performance cycle is for the current
year, beginning on January 1, 2008 and ending on December 31, 2008. 
 Award Targets. The amount of the awards under the
STIP are based on individual participant bonus targets. Individual participant bonus targets will be established by the Compensation Committee for each participant based upon the Compensation Committee’s determination of the appropriate bonus
target amounts which will enable the Corporation to remain competitive and retain and recruit top employees. Individual participant bonus targets will range from 5% to 100% of base salary, with targets for the Corporation’s executive officers
between 35% and 100% of base salary. 
 The Compensation Committee established the bonus targets under the STIP for the Corporation’s
principal executive officer, principal financial officer and fiscal 2007 named executive officers as follows: 
  

					
	 Executive
	  	 Title
	  	Bonus Target
	 Gregory S. Weishar
	  	Chief Executive Officer	  	100% of base salary
	 Michael J. Culotta
	  	Executive Vice President & Chief Financial Officer	  	75% of base salary
	 Janice Rutkowski
	  	Senior Vice President & Chief Clinical Officer	  	80% of base salary
	 Robert McKay
	  	Senior Vice President of Sales and Marketing	  	50% of base salary
	 Thomas Caneris
	  	Senior Vice President & General Counsel	  	50% of base salary

 The Compensation Committee delegated authority to the Corporation’s Chief Executive Officer
to determine the bonus targets for all other employees within the target ranges approved by the Compensation Committee. 
 Performance
Criteria. The performance criteria under the STIP is divided into a company performance-based component and group/individual performance-based component for different employees as set forth in the chart below. 
  

							
	 Title
	  	Company
Performance	 	 	Individual/Group
Performance	 
	 CEO and Executive VPs
	  	100	%	 	0	%
	 Senior VPs
	  	75	%	 	25	%
	 Vice Presidents and Directors
	  	50	%	 	50	%
	 All others
	  	25	%	 	75	%

 Under the STIP, the company performance will be measured by comparing the Corporation’s
annual earnings before interest, taxes, depreciation and amortization (“ EBITDA “), to a target EBITDA for the entire 2008 fiscal year. Group/individual performance will be measured by comparing certain group/individual performance
metrics to target group/individual performance metrics, to be determined by the Corporation’s 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 shall 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

	 < 90% of Performance Target
	  	0% of Award Target
	 90% of Performance Target
	  	50% of Award Target
	 100% of Performance Target
	  	100% of Award Target
	 110% of Performance Target
	  	125% of Award Target
	 120% of Performance Target
	  	175% of Award Target
	 > 120% 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 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, 2009. 
 Vesting and
Forfeiture. STIP participants must remain continuously employed by the Corporation until the date designated for a payout of an STIP award. Exceptions may be provided for termination of employment by reason of death, disability, retirement and
change in control. 
 Other Terms & Provisions. STIP participants are not permitted to transfer STIP awards, except by will
or the laws of descent and distribution. The Corporation shall be 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 Committee shall have
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.Form of Non-Qualified Stock Option Award Agreement

 Exhibit 10.44 
 PHARMERICA CORPORATION 
 PharMerica Corporation 2007 Omnibus Incentive Plan 
 Form of Non-Qualified Stock Option Agreement 
 THIS NON-QUALIFIED STOCK OPTION AGREEMENT (the “Agreement”), granted under the PharMerica Corporation 2007 Omnibus Incentive Plan (the “Plan”), is effective as of
                    , and is entered into by and between PharMerica Corporation, a Delaware Corporation (the “Company”), and
                     (the “Optionee”). 
 Preliminary Statements 
 WHEREAS, the Company has determined that it is desirable and in its
best interests to grant to the Optionee an option to purchase shares of the Company’s Stock (the “Stock”), in order to provide the Optionee with a significant equity interest in the Company so that the Optionee will have a greater
incentive to perform at the highest level and further the interests of the Company and the shareholders of the Company; and 
 WHEREAS, any capitalized term not herein defined shall have the meaning as set forth in the Plan. 
 NOW, THEREFORE,
in consideration of the mutual promises and covenants contained herein: 
 1. Grant of Option. On the terms and conditions of
this Agreement and the Plan, the Company hereby grants to the Optionee the right and option (the “Option”) to purchase from the Company
                     shares of Stock. This Option shall not constitute an incentive stock option within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”). The date of grant of this Option is                      (the “Grant
Date”). 
 The Optionee’s right, if any, to continue to be employed by the Company will not be enlarged or otherwise affected by
the receipt of this Option, and the receipt of this Option will not in any way restrict the right of the Company to terminate the Optionee’s employment at any time. 
 2. Price. The purchase price (the “Option Price”) for the shares of Stock subject to the Option granted by this Agreement is
$             per share, which is equal to the Fair Market Value of the Stock on the Grant Date. 
 3. Vesting of the Option. The Option granted pursuant to this Agreement shall vest and become exercisable in accordance with the following provisions: 
 (a) Vesting of the Option. Provided that the Optionee remains in the continuous employment of the Company through the vesting period, the Option
shall vest and become exercisable in accordance with the following schedule: 

					
	 Vesting Date
	  	 No. of Shares Vested
	  	 Total Percentage of Option Vested

	 ____________
	  		  	25%
	 ____________
	  		  	50%
	 ____________
	  		  	75%
	 ____________
	  		  	100%

 There shall be no proportional vesting prior to any Vesting Date; all vesting shall occur only on the Vesting
Date. 
 (b) Acceleration of Vesting of the Option. The Option shall become fully vested and exercisable upon the
occurrence of any of the following events: 
 (i) the termination of the Optionee’s employment with the Company by reason of the
Optionee’s death or disability (within the meaning of Section 22(e)(3) of the Code), or due to the Optionee’s Retirement from the Company. For purposes hereunder, Retirement shall mean a termination of the Optionee’s employment
at or after age 62 for any reason except by the Company for Cause, provided, that the Optionee has also been employed by the Company for at least five years. 
 (ii) within one (1) year following a Change in Control, (A) the Optionee’s employment is terminated by the Company without Cause (as defined in Section 3(c)(ii) below) or (B) a termination of
employment by the Optionee for “Good Reason” and provided that the Optionee executes a non-revocable written release in the form provided by the Company or its successors. For purposes hereunder, “Good Reason” shall mean either:

 (A) a reduction of the Optionee’s salary other than (i) a reduction based on the Company’s financial performance, or
(ii) a reduction made to the salaries provided to all or most of the other management or executive employees of the Company with similar responsibilities, positions, compensation or other criteria as determined by the Committee in good faith;

 (B) a significant change in the Optionee’s responsibilities and/or duties which constitutes, when compared to the Optionee’s
responsibilities and/or duties before the Change of Control, a demotion; or a material loss of title or office; or 
 (C) the relocation of
the offices at which the Optionee is principally employed as of the Change of Control to a location more than fifty (50) miles from such offices, which relocation is not approved by the Optionee. 
 (iii) Notwithstanding the foregoing, the Committee, in its sole and absolute discretion, may accelerate all or any portion of the vesting of the Option
at any time. 
  

 2 

 (c) Forfeiture of the Option. The Option shall be subject to forfeit in accordance with the
following provisions:  
 (i) the unvested portion of the Option shall automatically be forfeited upon the date that the Optionee
ceases to perform services for the Company for any reason other than the Optionee’s termination for Cause. 
 (ii) if the Optionee is
terminated by the Company for Cause, the Option, whether or not vested, shall automatically and immediately terminate as of the morning of the date of such removal for Cause. For purposes hereunder, Cause means: 
 (A) any willful, material violation of any law or regulation applicable to the business of the Company; 
 (B) conviction for, or guilty plea to, a felony or a crime involving moral turpitude, or any willful perpetration of a common law fraud; 
 (C) commission of any act of personal dishonesty which involves personal profit in connection with the Company; 
 (D) intentional wrongful disclosure of confidential information of the Company; 
 (E) intentional wrongful engagement in any competitive activity, 
 (F) the willful and continued failure or refusal to perform the material duties required of the Optionee as an employee, officer, director or consultant of the Company (other than as a result of disability);

 (G) disregard of the policies of the Company so as to cause material loss, damage or injury to the property, reputation or employees of
the Company; 
 (H) ongoing alcohol/drug addiction and a failure by the Optionee to successfully complete a recovery program, or 

(I) any other misconduct by the Optionee which is materially injurious to the financial condition or business reputation of, or is otherwise
materially injurious to, the Company. 
 4. Exercise of the Option. Except as otherwise provided herein, the Option granted
pursuant to this Agreement shall be exercisable as follows: 
 (a) Exercise by the Optionee. Only the Optionee receiving
the Option (or, in the event of the Optionee’s legal incapacity or incompetency, the Optionee’s guardian or legal representative and in the case of the Optionee’s death, the Optionee’s estate) may exercise the Option. 

 

 3 

 (b) Option Term. Any non-forfeited portion of the Option shall be exercisable until the
date it terminates. The Option shall no longer be exercisable and shall terminate upon the earliest to occur of: 
 (i) the seven
(7) year anniversary of the Grant Date; 
 (ii) the one (1) year anniversary of the termination date of the Optionee’s
employment with the Company on account of death or disability (within the meaning of Section 22(e)(3) of the Code) or retirement at or after age 62; 
 (iii) the date that is ninety (90) days after the termination date of the Optionee’s employment with the Company for any reason other than death, disability (within the meaning of Section 22(e)(3) of
the Code), retirement from the Company at or after age 62 or a termination for Cause; or 
 (iv) the morning of the day that the Optionee is
removed from service for Cause (as defined above). 
 (c) Method of Exercise of Option. The Optionee (or the
Optionee’s representative) may exercise the Option in whole or in part, at any time to the extent it is then exercisable, by giving written notice to the Company, which notice shall include the number of shares of Stock for which it is being
exercised and the form of payment. The Optionee may exercise the Option by making payment of the aggregate Option Price for the portion of the Option being exercised, and of any associated withholding tax obligations, in any of the following
manners: (a) in cash (including by wire transfer or by a personal check backed by sufficient funds); (b) by surrendering and attesting to ownership of vested and nonforfeitable securities of the class then subject to the option with an
aggregate Fair Market Value on the date of exercise equal to total amount owed; (c) by electing to receive securities of the class then subject to the option having a Fair Market Value, as of the date of exercise, equal to the excess, if any,
of (i) the Fair Market Value on the date of exercise of the securities subject to your exercise over (ii) the sum of the aggregate Option Price, and the applicable tax withholding amounts, for such exercise; (d) in any other manner
previously approved by the Board or the Committee; or (e) through any combination of the foregoing. However, if applicable, no such election to use shares of Stock for the payment of withholding taxes shall be effective unless made in
compliance with any applicable requirements under Rule 16b-3(e) under the Securities Exchange Act of 1934, or any successor rule, to the extent applicable. Upon receipt of payment in full of the Option Price and all withholding tax obligations, the
Company shall enter the Optionee (or the Optionee’s representative) as the stockholder of record of such Shares acquired upon exercise of the Option on the books of the Company. 
 5. Rights as Stockholder. Neither the Optionee nor any executor or administrator of the Optionee’s estate shall be, or
have any of the rights or privileges of, a stockholder of the Company in respect of any shares of Stock transferable hereunder unless and until such shares have been fully paid and the Optionee (or of such personal representative or administrator of
the Optionee’s estate) has been entered as the stockholder of record on the books of the Company. 
  

 4 

 6. Withholding of Taxes. If the Company is obligated to withhold federal,
state and local income taxes to the extent that the Optionee realizes ordinary income in connection with the exercise of the Option or in connection with a disposition of any shares of Stock acquired by exercise of the Option, then the Optionee
agrees that the Company may withhold amounts needed to cover such taxes from payments otherwise due and owing to the Optionee, and also agrees that upon demand the Optionee will promptly pay to the Company any additional amounts as may be necessary
to satisfy such withholding tax obligation. Such payment shall be made in any manner set forth in Section 4(c) above.  
 7.
Effect of Changes in Capitalization or Change in Control. 
 (a) Changes in Stock. If the outstanding
shares of Stock are increased or decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of any recapitalization, reclassification, stock split, reverse split, combination of
shares, exchange of shares, stock dividend or other distribution payable in capital stock, or other increase or decrease in such shares effected without receipt of consideration by the Company occurring after the date the Option is granted, then, in
the Board’s discretion, a proportionate and appropriate adjustment may be made by the Board in the number and kind of shares subject to the Option, so that the proportionate interest of the Optionee immediately following such event shall, to
the extent practicable, be the same as immediately prior to such event. Any such adjustment in the Option shall not change the total Option Price with respect to shares subject to the unexercised portion of the Option but shall include a
corresponding proportionate adjustment in the Option Price per share. In the event of any distribution to the Company’s stockholders of securities of any other entity or other assets (other than dividends payable in cash or stock of the
Company) without receipt of consideration by the Company, the Board shall, in such manner as it deems appropriate, adjust (i) the number and kind of shares subject to the Option and/or (ii) the Grant Price of the Option to reflect such
distribution. 
 (b) Reorganization in Which the Company Is the Surviving Company. Subject to 7(c) below, if the Company
shall be the surviving Company in any reorganization, merger, or consolidation of the Company with one or more other companies or other entities, the Option shall pertain to and apply to the securities to which a holder of the number of shares of
Stock subject to the Option would have been entitled immediately following such reorganization, merger, or consolidation, with a corresponding proportionate adjustment of the Option Price per share so that the aggregate Option Price thereafter shall
be the same as the aggregate Option Price of the shares remaining subject to the Option immediately before such reorganization, merger, or consolidation. 
 (c) Change in Control. In the event of a Change in Control, the Board may (i) make provisions in connection with the Change in Control transaction for the continuation of the Option; (ii) reach an
agreement with the acquiring or surviving entity that the acquiring or surviving entity will assume the obligation of the Company under the Option; (iii) reach an agreement with the acquiring or surviving entity that the acquiring or surviving
entity will convert the Option into an option of at least equal value, determined as of the date of the Change in Control transaction, to purchase stock of the acquiring or surviving entity; (iv) terminate the Option effective upon the date of
the applicable transaction and, to the extent that the Option is 

  

 5 

 
exercisable and vested, either (A) make, within sixty (60) days after the date of the applicable transaction, a cash payment to the Optionee equal
to the excess of the Fair Market Value, as of the date of the applicable transaction, of the shares of Stock subject to the vested portion of the Option over the Option Price of such shares of Stock or (B) give the Optionee the right to
exercise, in whole or in part, the vested portion of the Option for thirty (30) days immediately before the occurrence of such termination; or (v) accelerate the expiration of the Option to a date not earlier than the fifteenth
(15th) day after the date of the applicable transaction; provided, however, that the Board determines that any such modification does not have
a substantial adverse economic impact on the Optionee as determined at the time of such modification. 
 8. General
Restrictions. The Company shall not be required to sell or issue any shares of Stock under the Option if the sale or issuance of such shares would constitute a violation by the individual exercising the Option or by the Company of any
provision of any law or regulation of any governmental authority, including without limitation any federal or state securities laws or regulations. If at any time the Company shall determine, in its discretion, that the listing, registration, or
qualification of any shares subject to the Option upon any securities exchange or under any state or federal law, or the consent or approval of any government regulatory body, is necessary or desirable as a condition of, or in connection with, the
issuance or purchase of shares, the Option may not be exercised in whole or in part unless such listing, registration, qualification, consent, or approval shall have been effected or obtained free of any conditions not acceptable to the Company, and
any delay caused thereby shall in no way affect the date of termination of the Option. Specifically in connection with the Securities Act of 1933 (as now in effect or as hereafter amended), unless a registration statement under such Act is in effect
with respect to the shares of Stock covered by the Option, the Company shall not be required to sell or issue such shares unless the Company has received evidence satisfactory to it that the holder of the Option may acquire such shares pursuant to
an exemption from registration under such Act. Any determination in this connection by the Company shall be final, binding, and conclusive. The Company may, but shall in no event be obligated to, register any securities covered hereby pursuant to
the Securities Act of 1933 (as now in effect or as hereafter amended). The Company shall not be obligated to take any affirmative action in order to cause the exercise of the Option or the issuance of shares pursuant thereto to comply with any law
or regulation of any governmental authority. As to any jurisdiction that expressly imposes the requirement that the Option shall not be exercisable unless and until the shares of Stock covered by the Option are registered or are subject to an
available exemption from registration, the exercise of the Option (under circumstances in which the laws of such jurisdiction apply) shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption.

 9. Restrictions On Transfer. Other than by will or under the laws of descent and distribution, the Optionee shall not have
the right to make or permit to occur any transfer, pledge or hypothecation of all or any portion of any unvested portion of the Option, whether outright or as security, with or without consideration, voluntary or involuntary. Any such transfer,
pledge or hypothecation not made in accordance with this Agreement shall be deemed null and void. 
 10. Interpretation of this
Agreement. All decisions and interpretations made by the Committee with regard to any question arising under this Agreement shall be final, binding and conclusive on the Company and the Optionee and any other person entitled to receive the
benefits of the Option as provided for herein. 
  

 6 

 11. Governing Law. The validity, interpretation and enforcement of this Agreement are
governed in all respects by the laws of the State of Delaware, without giving effect to its conflict of laws principles, and by the laws of the United States of America. 
 12. Binding Effect. Subject to all restrictions provided for in this Agreement and by applicable law relating to assignment and transfer of this Agreement and the Option provided for herein, this
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors, and assigns. 
 13. Notice. Any notice hereunder by the Optionee to the Company shall be in writing and shall be deemed duly given if mailed or delivered to the Company at its principal office, addressed to the
attention of the Board, or if so mailed or delivered to such other address as the Company may hereafter designate by notice to the Optionee. Any notice hereunder by the Company to the Optionee shall be in writing and shall be deemed duly given if
mailed or delivered to the Optionee at the address specified below by the Optionee for such purpose, or if so mailed or delivered to such other address as the Optionee may hereafter designate by written notice given to the Company. 
 14. Severability. In the event that any one or more of the provisions or portion thereof contained in this Agreement shall for any reason
be held to be invalid, illegal or unenforceable in any respect, the same shall not invalidate or otherwise affect any other provisions of this Agreement, and this Agreement shall be construed as if the invalid, illegal or unenforceable provision or
portion thereof had never been contained herein. 
 15. Entire Agreement. This Agreement constitutes the entire agreement and
supersedes all prior understandings and agreements written or oral, of the parties hereto with respect to the subject matter hereof. There is no representation or statement made by any party on which another party has relied which is not included in
this Agreement. Neither this Agreement nor any term hereof may be amended, waived, discharged, or terminated except by a written instrument signed by the Company and the Optionee; provided, however, that the Company unilaterally may waive any
provision hereof in writing to the extent that such waiver does not adversely affect the interests of the Optionee hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any
other provision hereof. 
  

 7 

 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement, or caused
this Agreement to be duly executed and delivered on his or its behalf, as of the day and year first above written. 
  

			
	PHARMERICA CORPORATION
		
	BY:	 	  

		
	DATE:	 	  

	
	OPTIONEE
	
	  

		
	DATE:	 	  

	
	OPTIONEE’S ADDRESS:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]