Document:

EXHIBIT
      10.6.1

    PAR
      PHARMACEUTICAL COMPANIES, INC.

    

    TERMS
      OF STOCK OPTION

    

     

    

     

    This
      document sets forth the terms of an Option (as defined in Section 1 below)
      to
      purchase shares of common stock granted by PAR PHARMACEUTICAL COMPANIES, INC.
      (the “Company”) pursuant to a Certificate of Stock Option Grant (the
“Certificate”) displayed at the website of Smith Barney Benefits Access®. The
      Certificate, which specifies the person to whom the Option is granted (the
      “Optionee”) and other specific details of the grant, 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 Options 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 Optionee
      designated in the Certificate of an option to purchase common stock of the
      Company on the terms and subject to the conditions set forth in the Plan and
      these Terms of Stock Option. Capitalized terms used but not defined in these
      Terms or the Certificate shall have the meanings set forth in the
      Plan.

    

    NOW,
      THEREFORE, in consideration of the foregoing and of the terms and conditions
      herein contained, the parties hereto agree as follows:

     

    1.  Grant
      of Options. Subject
      to the terms and conditions hereinafter set forth and set forth in the Plan,
      the
      Company hereby grants to the Optionee, as a matter of separate agreement and
      not
      in lieu of salary, or any other compensation for services, the right and option
      (the “Option”) to purchase all or any part of an aggregate number of shares of
      Common Stock (the “Option Shares”) specified on the Certificate on the terms and
      conditions set forth herein and therein.

     

    2.  Nonqualified
      Option; Withholding Tax. This
      Option shall not be deemed an “Incentive Stock Option” under the Internal
      Revenue Code (“Code”). The Company shall be entitled, if the Compensation and
      Management Development Committee of the Board of Directors of the Company (the
      “Committee”) deems it necessary or desirable, to withhold (or secure payment
      from the Optionee in lieu of withholding) the amount of any withholding or
      other
      tax required by law to be withheld or paid by the Company in connection with
      the
      issuance of the Option Shares.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.  Grant
      Price. The
      grant
      price of each Option Share shall be the grant price specified on the
      Certificate.

     

    4.  Exercise
      Period.

     

    4.1  Grant
      Expiration Date; Vesting. The
      Option shall be exercisable during the period (the “Exercise Period”) commencing
      on the Grant Date specified on the Certificate and terminating at the close
      of
      business on the date (the “Grant Expiration Date”) specified on the Certificate.
      All rights to exercise the Option shall terminate on the Grant Expiration Date.
      Subject to this Section 4 and Section 5 hereof, this Option shall be exercisable
      in accordance with the vesting schedule specified on the
      Certificate.

     

    4.2  Effect
      of Termination of Employment.

     

    4.2.1  Termination
      Upon Death or Disability. Upon
      the
      termination of the Optionee's employment by reason of the death or disability
      (for purposes of the Plan) of the Optionee, this Option or any unexercised
      portion thereof, which was otherwise exercisable on the date of such
      termination, shall terminate unless such Option, to the extent exercisable
      on
      such date, is exercised by the Optionee or the executor or administrator of
      his
      estate, as the case may be, within one year after the date of such termination
      of his employment. However, should the death of the Optionee occur during the
      one-year period following the termination of the employment of the Optionee
      by
      reason of his disability, the Option, to the extent exercisable on the date
      of
      termination of employment, may be exercised by the executor or administrator
      of
      the Optionee's estate within one year following such death. A transfer of the
      Option by the Optionee by will or by laws of descent and distribution shall
      not
      be effective to bind the Company unless the Company shall have been furnished
      with written notice thereof and such other evidence as the Company may deem
      necessary or desirable to establish the validity of the transfer and the
      acceptance by the transferee or transferees of the terms and conditions of
      the
      Option. Notwithstanding anything herein to the contrary, in no event shall
      the
      Option be exercisable after the Grant Expiration Date.

     

    4.2.2  Termination
      by Reason of Retirement. Should
      the employment of the Optionee terminate during the term of the Option by reason
      of retirement by the Optionee on or after age 65, or with the approval of the
      Committee, from active employment with the Company or any subsidiary prior
      to
      age 65 (“Retirement”), this Option or any unexercised portion thereof which was
      otherwise exercisable on the date of such termination, shall terminate within
      thirty (30) days of the date of such termination unless the Committee, at or
      before the time of such Retirement, shall determine that the Option shall remain
      exercisable by the Optionee for a period of one year following the effective
      date of such termination of employment; provided, however, that if the Optionee
      dies within such one-year period, the Option may be exercised by the executor
      or
      administrator of the Optionee's estate within one year following such death.
      Notwithstanding anything herein to the contrary, in no event shall the Option
      be
      exercisable after the Grant Expiration Date.

     

    4.2.3  Termination
      by Reason of Resignation. Should
      the employment of the Optionee terminate during the term of the Option by reason
      of resignation by the Optionee (for any reason other than Retirement), this
      Option or any unexercised portion thereof which was otherwise exercisable on
      the
      date of such resignation, shall terminate unless such Option, to the extent
      exercisable on the date of such resignation, is exercised within thirty (30)
      days of the date on which the Optionee resigns. Notwithstanding anything herein
      to the contrary, in no event shall the Option be exercisable after the Grant
      Expiration Date.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    4.2.4  Termination
      For Cause. If
      the
      Optionee's employment is terminated “for cause,” this Option or any unexercised
      portion thereof shall terminate and be of no further force and effect from
      the
      date of termination. Termination “for cause” as used herein means the
      termination of Optionee's employment by the Company (or, if applicable, any
      subsidiary thereof), “for cause” as defined in any agreement between the Company
      (or any such subsidiary) and the Optionee or, in the event no such agreement
      exists, based upon objective factors determined in good faith by the
      Company.

     

    4.2.5  Termination
      Without Cause. If
      the
      employment of the Optionee with the Company or any of its subsidiaries is
      terminated (for any reason other than death, disability, Retirement, resignation
      or discharge “for cause”), this Option or any unexercised portion thereof which
      was otherwise exercisable on the date of such termination, shall terminate
      unless such Option, to the extent exercisable on the date of such termination,
      is exercised within ninety (90) days of the date on which he ceases to be an
      employee. Notwithstanding anything herein to the contrary, in no event shall
      the
      Option be exercisable after the Grant Expiration Date.

     

    4.2.6  Change
      of Control. Upon
      a
“Change of Control” of the Company, the Optionee's right to exercise the Option
      shall be immediately vested and accelerated in full and the Optionee may, during
      the Exercise Period, exercise the Option for the remaining unexercised portion
      of the Option (notwithstanding that such portion of the Option had not yet
      otherwise become fully exercisable under Section 4.1 with respect to all or
      part
      of the Option Shares at the date of such Change of Control); provided, however,
      that nothing herein contained shall extend the Grant Expiration Date.

     

    4.2.7  Sale
      of Company. Upon
      a
      Sale (as defined below), the Board of Directors or the Committee may elect
      either (i) to continue the Option without any payment or (ii) to cause to be
      paid to the Optionee, upon consummation of the Sale, a payment equal to the
      excess, if any, of the Sale Consideration receivable by the holders of shares
      of
      Common Stock in such a Sale (the “Sale Consideration”) over the purchase price
      for this Option for each share of Common Stock the Optionee shall then be
      entitled to acquire hereunder. If the Board of Directors of the Company elect
      to
      continue the Option, then the Company shall cause effective provisions to be
      made so that the Optionee shall have the right, by exercising this Option prior
      to the Grant Expiration Date, to purchase the kind and amount of shares of
      stock
      and other securities and property receivable upon such a Sale by a holder of
      the
      number of shares of Common Stock which might have been purchased upon exercise
      of the Option immediately prior to the Sale. The value of the Sale Consideration
      receivable by the holder of a share of Common Stock, if it shall be other than
      cash, shall be determined, in good faith, by the Board of Directors of the
      Company. Upon payment to the Optionee of the Sale Consideration, the Optionee
      shall have no further rights in connection with the Option granted hereunder,
      this Option shall be terminated and surrendered for cancellation and the Option
      shall be null and void. For the purposes hereof, a “Sale” shall occur, in any
      single transaction or series of related transactions, upon the consummation
      of
      the events set forth under subsection (c) of the definition of a “Change of
      Control” in Section 2.8 of the Plan.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    5.  Forfeiture
      Provisions Following a Termination of Employment. Notwithstanding
      any provision under these Terms or in the Plan to the contrary, in any instance
      where the rights of the Optionee to exercise any unexercised portion of the
      Option extend past the date of termination of the Optionee's employment, all
      of
      such rights shall immediately and automatically terminate and be forfeited
      if,
      in the determination of the Committee, the Optionee at any time during a
      twenty-four month period following his or her termination of employment,
      directly or indirectly, either (i) personally or (ii) as an employee, agent,
      partner, stockholder, officer or director of, consultant to, or otherwise of
      any
      entity or person engaged in any business in which the Company or any of its
      subsidiaries is engaged, or is actively proposing to engage at the time of
      such
      termination of employment, engages in conduct that breaches his or her duty
      of
      loyalty to the Company or any of its subsidiaries or that is in material
      competition with the Company or any of its subsidiaries or is materially
      injurious to the Company or any of its subsidiaries, monetarily or otherwise,
      which conduct shall include, but not be limited to: (i) disclosing or using
      any
      confidential information pertaining to the Company or any of its subsidiaries;
      (ii) any attempt, directly or indirectly, to induce any employee of the Company
      or any of its subsidiaries to be employed or perform services elsewhere; or
      (iii) any attempt, directly or indirectly, to solicit the trade of any customer
      or supplier or prospective customer or supplier of the Company or any or its
      subsidiaries; or (iv) disparaging the Company or any of its subsidiaries or
      any
      of their respective officers or directors. The determination of whether any
      conduct, action or failure to act falls within the scope of activities
      contemplated by this Section shall be made by the Committee, in its discretion,
      and shall be final and binding upon the Optionee. A determination that any
      particular conduct, action or failure falls outside the scope of activities
      contemplated by this Section shall not imply that, or be determinative of
      whether, such conduct, action or failure is otherwise lawful or appropriate.
      For
      purposes of this Section, the Optionee shall not be deemed to be a stockholder
      of a competing entity if the Optionee’s record and beneficial ownership of
      equity securities of said entity amount to not more than one percent (1%) of
      the
      outstanding equity securities of any company subject to the periodic and other
      reporting requirements of the 1934 Act. In the event the existence of any
      circumstance which would trigger the forfeiture of an award pursuant to this
      Section 5 but for the fact that the Optionee has previously been converted
      into
      or exercised for other securities of the Company (e.g., upon the exercise of
      stock options), or converted into cash or other property (e.g., upon the sale
      by
      or for the account of the Optionee of Common Stock acquired by him or her upon
      the exercise of Stock Options), whether before or after the termination of
      employment, then, in such event, said securities, or cash or other property,
      as
      the case may be, shall be deemed to be held in trust for the Company and shall
      be promptly paid over to the Company upon demand (net of any amounts that may
      have been theretofore actually paid by the Optionee to the Company in respect
      thereof (i.e., as the cash grant price of an option)). The Optionee further
      recognizes that (i) the Company would be irreparably injured in the event of
      a
      breach of any of his obligations under this Section 5; (ii) monetary damages
      would not be an adequate remedy for any such breach; and (iii) the Company
      shall
      be entitled to injunctive relief, in addition to any other remedies that it
      may
      have, in the event of any such breach.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    6.  Nontransferability
      of Option. Except
      as
      provided in Section 4, this Option and the rights and privileges conferred
      hereby may not be transferred, assigned, pledged or hypothecated in any way
      (whether by operation of law or otherwise) and shall not be subject to
      execution, attachment or similar process. Upon any attempt to transfer, assign,
      pledge, hypothecate or otherwise dispose of this Option or any right or
      privilege conferred hereby, contrary to the provisions hereof, or upon the
      levy
      of any attachment or similar process on the rights and privileges conferred
      hereby, this Option and the rights and privileges conferred hereby shall
      immediately become null and void.

     

    7.  Payment
      of Purchase Price. The
      purchase price of the shares of Common Stock as to which the Option is exercised
      shall be paid in full at the time of exercise, as hereinafter provided. The
      purchase price may be paid with (i) Common Stock of the Company already owned
      by, and in the possession of, the Optionee, or (ii) any combination of U.S.
      dollars or Common Stock of the Company. Anything herein to the contrary
      notwithstanding, any required withholding tax shall be paid by the Optionee
      in
      full in U.S. dollars at the time of exercise of the Option. Payments in U.S.
      dollars may be made by wire transfer, certified or bank check, or personal
      check, in each case payable to the order of the Company; provided, however,
      that
      the Company shall not deliver certificates representing any Option Shares
      purchased until the Company has confirmed the receipt of good and available
      funds in payment of the purchase price thereof. Shares of Common Stock of the
      Company used to satisfy the grant price of the Option shall be valued at the
      Fair Market Value on the date of exercise (as defined in the Plan). The Optionee
      shall not have any of the rights of a shareholder with respect to the Option
      Shares until the Option Shares have been issued after the due exercise of the
      Option. Payment may also be made, in the discretion of the Company, by the
      delivery (including, without limitation, by fax) to the Company or its
      designated agent of an executed irrevocable option exercise form together with
      irrevocable instructions to a broker-dealer to sell or margin a sufficient
      portion of the shares and deliver the sale or margin loan proceeds directly
      to
      the Company to pay for the grant price. 

     

    8.  Exercise
      of Option. Subject
      to the terms and conditions set forth herein, the Option may be exercised by
      written notice to the Company pursuant to Section 14.1 hereof. Such notice
      shall
      state the election to exercise the Option and the number of Option Shares with
      respect to which it is being exercised, and shall be signed by the person or
      persons so exercising the Option. Such notice may also contain such investment
      representations as the Company may from time to time require. Such notice shall
      be accompanied by payment of the full purchase price of the Option Shares,
      and
      the Company shall issue a certificate or certificates evidencing the Option
      Shares as soon as practicable after the notice is received (subject to receipt
      of good and available funds as provided in Section 7 above). Payment of the
      purchase price shall be made in U.S. dollars, by delivery of securities of
      the
      Company, or by a combination of U.S. dollars and securities, as provided in
      Section 7 above. The certificate or certificates evidencing the Option Shares
      shall be registered in the name of the person or persons so exercising the
      Option. In the event the Option is being exercised by any person or persons
      other than the Optionee as provided in Section 4.2 above, the notice shall
      be
      accompanied by appropriate proof of the right of such person or persons to
      exercise the Option.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    9.  Transfer
      of Option Shares.

     

    9.1  Restriction.
      Anything
      in these Terms to the contrary notwithstanding, the Optionee hereby agrees
      that
      he shall not sell, transfer by any means or otherwise dispose of the Option
      Shares acquired by him without registration under the 1933 Act, or in the event
      that they are not so registered, unless (i) an exemption from the 1933 Act
      is
      available thereunder, and (ii) the Optionee has furnished the Company with
      notice of such proposed transfer and the Company's legal counsel, in its
      reasonable opinion, shall deem such proposed transfer to be so
      exempt.

     

    9.2  Notification
      to Company. The
      Optionee agrees that if he should dispose of any Option Shares, including a
      disposition by sale, exchange, gift or transfer of legal title within twelve
      (12) months from the date such Option Shares are transferred to him, he shall
      notify the Company promptly of such disposition or transfer.

     

    10.  Anti-Dilution
      Provisions. In
      the
      event of a stock dividend, subdivision, combination or reclassification of
      shares, or any other change in the corporate structure or shares of the Company,
      the number of Option Shares covered by any unexercised portion of the Option
      and
      the related purchase price per share shall be adjusted proportionately;
      provided, however, that upon the dissolution or liquidation of the Company,
      or
      upon any merger, consolidation or other form of reorganization, the Option
      may
      be terminated and be of no further effect.

     

    11.  Company
      Representations. The
      Company hereby represents and warrants to the Optionee that:

     

    (a)  the
      Company, by appropriate and all required action, is duly authorized to enter
      into these Terms and consummate all of the transactions contemplated hereunder;
      and

     

    (b)  the
      Option Shares, when issued and delivered by the Company to the Optionee in
      accordance with the terms and conditions hereof, will be duly and validly issued
      and fully paid and non-assessable.

     

    12.  Optionee
      Representations. The
      Optionee hereby represents and warrants to the Company that:

     

    (a)  The
      Company has made available to the Optionee a copy of all reports and documents
      required to be filed by the Company with the Securities and Exchange Commission
      pursuant to the 1934 Act within the last twelve (12) months and all reports
      issued by the Company to its stockholders during such period;

     

    (b)  The
      Optionee must bear the economic risk of the investment in the Option Shares,
      which cannot be sold by him unless they are registered under the 1933 Act or
      an
      exemption therefrom is available thereunder;

     

    (c)  The
      Optionee has had both the opportunity to ask questions of and receive answers
      from the Company and all persons acting on its behalf concerning the terms
      and
      conditions of the offer made hereunder;

     

    (d)  The
      Optionee is aware that the Company shall place stop transfer orders with its
      transfer agent against the transfer of the Option Shares in the absence of
      registration under the 1933 Act or an exemption therefrom as provided herein;
      and

     

    (e)  The
      Optionee is aware that nothing in these Terms shall confer upon the Optionee
      any
      right to continue in the employ or as a director or agent of the Company or
      shall affect the right of the Company to terminate the employment or
      relationship of the Optionee with the Company.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    13.  Amendments
      to Plan; Conflicts. No
      amendment or modification of the Plan shall be construed as to terminate the
      Option granted under these Terms. In the event of a conflict between the
      provisions of the Plan and the provisions of these Terms, the provisions of
      the
      Plan shall in all respects be controlling.

     

    14.  Miscellaneous.

     

    14.1  Notices.
      All
      notices required or permitted hereunder shall be in writing and shall be deemed
      to be properly given when personally delivered to the party entitled to receive
      the notice or when sent by certified or registered mail, postage prepaid,
      properly addressed to the party entitled to receive such notice at the address
      stated below:

     

    
      	 	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.

    

     

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

     

    14.3  Entire
      Agreement. The
      Plan
      is incorporated herein by reference. The Plan, these Terms and the Certificate
      constitute the entire agreement between the parties with respect to the subject
      matter hereof and supersede in their entirety all prior undertakings and
      agreements of the Company and Optionee with respect to the subject matter
      hereof, and may not be modified except by means of a writing signed by the
      Company and Optionee.

     

    14.4  Binding
      Effect; Successors. These
      Terms and the Certificate 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 or the
      Certificate, expressed 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.

     

    14.5  Governing
      Law. These
      Terms shall be governed by and construed in accordance with the laws of the
      State of Delaware.

     

    14.6  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 of or interpretation of
      any
      of the terms or provisions of these Terms.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereunto set their hands as of the date the
      Certificate is accepted on the website of Smith Barney.

     

    
      
        	 	PAR PHARMACEUTICAL COMPANIES,
                INC.
	 	 
	 	
                Thomas
                  J. Haughey

                Executive
                  Vice President and General Counsel

              
	 	 
	 	 OPTIONEE
	 	 
	 	
                (Acceptance
                  designated electronically 

                at
                  the website of
                  Smith Barney)

              
	 	 

      

    

    

    
      
        
        

      

      
        -8-EXHIBIT
      10.6.2

    PAR
      PHARMACEUTICAL COMPANIES, INC.

    

    TERMS
      OF RESTRICTED SHARES AWARD

    

    

    This
      document sets forth the terms of the award of Restricted Shares (as defined
      in
      Section 1.1 below) granted by PAR PHARMACEUTICAL COMPANIES, INC. (the “Company”)
      pursuant to a Certificate of Restricted Shares (the “Certificate”) displayed at
      the website of Smith Barney Benefits Access®. The Certificate, which specifies
      the person to whom the Restricted 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 Restricted 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
      Restricted 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. 	RESTRICTED
                SHARES

      

    

     

    1.1 Grant
      of Restricted 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 subject to the restrictions
      set forth in Section 1.2 of these Terms, the terms and conditions of the Plan
      and the other terms and conditions contained in these Terms (the “Restricted
      Shares”). 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 Restricted Shares, such shares not forfeited pursuant
      to
      Section 1.4 hereof shall no longer be considered Restricted Shares for purposes
      of these Terms.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b) As
      soon
      as practicable after the Date of Grant, the Company shall direct that a stock
      certificate or certificates representing the applicable Restricted 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(a). 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 Restricted
      Shares.

    

    (c) Each
      certificate for the Restricted 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 Restricted 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.

            

    

    

    In
      addition, the stock certificate or certificates for the Restricted 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.

    

    (d) As
      soon
      as administratively practicable following the vesting of all or any portion
      of
      the Restricted Shares, and upon the satisfaction of all other applicable
      conditions as to such vested Restricted 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 Restricted Shares that shall not bear the Legend.

    

    1.2 Restrictions.

    

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

    

    (i)
      the
      Participant shall not be entitled to delivery of the certificate or certificates
      for the Restricted Shares until such Restricted 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 Restricted Shares may be sold, transferred, assigned, pledged
        or
        otherwise encumbered or disposed of prior to the date such Restricted 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 Restricted Shares prior to the date such Restricted 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 Restricted Shares until the vesting of such Restricted Shares, and
      subject to the satisfaction of all other applicable conditions; and

    

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

    

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

    

    1.3 Vesting. 

    

    (a) Such
      portion of the Restricted Shares shall be deemed vested and no longer subject
      to
      forfeiture under Section 1.4 hereof or the restrictions set forth in Section
      1.2
      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
      paragraph (a) above, upon a “Change of Control” of the Company, all rights of
      the Participant to the Restricted Shares that have not vested shall immediately
      vest and no longer be subject to forfeiture under Section 1.4 hereof or the
      restrictions set forth in Section 1.2 hereof. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1.4 Forfeiture. 

    

    (a)  Subject
      to Section 1.6 hereof, if
      prior
      to the date such Restricted Shares are deemed vested in accordance with the
      schedule in Section 1.3(a), (i) the Participant’s employment with the Company,
      its Affiliates and/or its Subsidiaries is terminated for any reason, 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 Restricted Shares that have not vested in accordance with
      Section 1.3(a) or 1.3(b) 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,
      all rights of the Participant (or, in the event of the Participant’s death, the
      Participant’s Beneficiary) to the Restricted Shares that have not vested shall
      immediately vest and no longer be subject to forfeiture. 

    

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

    

    (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 Restricted 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 restricted stock
      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.

    

    
      	
              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. 

    

    
      	
              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 Restricted
      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 Restricted 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)

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