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ATTENTION:
THIS RESTRICTED STOCK UNIT AWARD SHALL NOT BECOME
EFFECTIVE
UNLESS AND UNTIL IT IS "ACCEPTED" BY THE DIRECTOR
IN THE MANNER DESCRIBED IN SECTION 1(b) BELOW.
RESTRICTED STOCK UNIT AWARD AGREEMENT
(Members of Alpharma Inc.'s Board of Directors)
This RESTRICTED STOCK UNIT AWARD
Agreement (this " Agreement " ) is made as of the
Grant Date (defined below), by and between Alpharma Inc., a
Delaware (USA) corporation with an address at One Executive Drive,
Fort Lee, New Jersey 07024 (the " Company " ), and
the Director (defined below), pursuant and subject to the Company's
2003 Omnibus Incentive Compensation Plan (the " Plan
" ), on the following terms and conditions:
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DEFINITIONS : The following terms shall have the
following meanings when used in this Agreement.
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" Director ":
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" Grant Date ":
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" Grant Price ":
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" Number of Restricted Units
":
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1. Grant and Acceptance of Restricted Unit
Award .
(a) The Company hereby grants to the Director,
subject to the restrictions, forfeiture risks, and other terms and
conditions set forth herein and in the Plan, the "Restricted Unit
Award", which shall consist of restricted units in the amount of
that Number of Restricted Units (defined above) (each, a "
Restricted Unit " ), granted at the Grant Price (defined
above). Each Restricted Unit represents the Director's right to
receive, under the terms and conditions described in this
Agreement, payment of one share of the Company's Class A Common
Stock (the " Common Stock " ) upon vesting of such
Restricted Unit.
(b) The Restricted Unit Award shall not be
considered granted unless and until the Director accepts the terms
of this Agreement by signing and returning a copy of this Agreement
to the Company's Director, Compensation and Benefits. By so
accepting the Restricted Unit Award, the Director is memorializing
that he or she has accepted the Restricted Unit Award as of the
Grant Date.
2. Restrictions / Rights of Company and
Director .
(a) Vesting of Restricted Units . The
Director shall become vested in the Restricted Units, and shall
receive that number of shares of Common Stock represented by the
Restricted Units (the " Director Common Stock " ), on
the date of the Director's Retirement (defined below) (the "
Vesting Date " ), subject to acceleration, forfeiture,
deferral, and the other terms and conditions of this Agreement,
including this Section 2 . This Restricted Unit Award
shall be considered " Vested " for all purposes under
this Agreement with respect to individual Restricted Units upon the
first date the Restricted Unit Award is vested with respect to such
Restricted Unit.
(b) Forfeiture Rights of the Company
(Termination, Retirement, etc.) . Subject to the further
provisions of this Agreement, and except as otherwise provided in
Section 2(c) below, prior to the Vesting Date, in the event
that the Director voluntarily resigns his or her position as a
director of the Company, other than as a result of the Disability
or Retirement of the Director, all Restricted Units shall be
automatically forfeited by the Director.
(c) Acceleration Rights of the Director /
The Death or Disability of the Director . In the event that
the Director dies, or an event of Disability takes place, or a
Change in Control shall have occurred prior to the Vesting Date,
the Director (or his or her beneficiary) shall be immediately 100%
vested in all of the Restricted Units granted hereunder and all of
the Company's forfeiture rights under Section 2(b) above
(the " Company's Forfeiture Rights " ) in such
Restricted Units shall terminate and be of no further force and
effect.
(d) Deferral of Vesting of Restricted
Units . The Director may defer receipt of the Director Common
Stock beyond the Vesting Date by providing written notice to the
Company in accordance with Section 13 hereof setting forth
the Director's desire to so defer. Such deferral must meet the
requirements of all applicable federal, state and local (including
non-United States) laws regarding deferral of director
compensation. If the Director chooses to defer receipt of the
Common Stock, he or she must defer all of the Director Common Stock
vesting on the Vesting Date. Any deferrals made by a Director under
this Agreement shall be made pursuant to the Company's Amended and
Restated Deferred Compensation Plan, the terms of which are
incorporated herein by reference.
3. Definitions . For purposes of this
Agreement:
(a) An event of " Disability "
shall mean a resignation from the Board of Directors of the Company
(the " Board " ) for reasons of the Director's
disability, as determined by the Board from time to time.
(b) " Retirement " shall mean (i)
declining to stand for re-election to the Board at the next Annual
Meeting of Stockholders of the Company following the end of the
Director's then-current term, (ii) a failure to be nominated for
re-election by the Board at the end of the Director's then-current
term, (iii) a failure to be elected as a director of the Company by
a vote of the stockholders of the Company after being nominated to
serve as a director of the Company or (iv) such other instance as
may be determined by the Board.
(c) " Change in Control " shall
have that meaning set forth in the Company's Change in Control
Plan, as amended from time to time (it being understood and agreed
that such Change in Control Plan shall otherwise not apply to the
Director).
4. Voting and Other Rights . The Director
shall have no rights as a stockholder of the Company in respect of
the Restricted Units, including the right to vote and to receive
regular or special cash dividends, prior to the Vesting Date (or,
if the Director has deferred receipt pursuant to Section
2(d) above, then such later date of receipt of the Director
Common Stock). Notwithstanding the foregoing, prior to the Vesting
Date, the Director shall receive dividend equivalents equal to the
amount of the dividends attributable to the shares of Common Stock
represented by the Restricted Stock Units. The dividend equivalents
shall be paid in cash on the date (or as soon as administratively
practicable thereafter) that the related dividends are paid.
5. Prohibition on Transfer . The Director
is subject to Section 8.3 of the Plan, which sets forth
restrictions on the transferability, sale, pledge, assignment, etc.
of the Restricted Units.
6. Delivery of Certificates or Equivalent
. Upon the Vesting Date (or, if the Director has deferred receipt
pursuant to Section 2(d) above, then upon such later date of
elected receipt of the Director Common Stock), the Company shall,
at its election, either (i) deliver to the Director a certificate
representing the Director Common Stock, or (ii) establish a
brokerage account for the Director and credit to that account the
Director Common Stock plus, in either case, a cash payment equal to
the value of any fractional Restricted Unit then Vested.
7. Additional Securities . If the Company
shall pay a stock dividend or declare a stock split on or with
respect to any of its Common Stock, or otherwise distribute
securities of the Company to the holders of its Common Stock, the
number of Restricted Units subject to this award shall be adjusted
to correspond to the change in the outstanding shares of Common
Stock, subject to the Company's Forfeiture Rights. If the Company
shall distribute to its stockholders securities of another
corporation, the securities of such other corporation, distributed
with respect to the Restricted Units then subject to the
restrictions contained in this Agreement, shall be added to the
Restricted Units subject to the Company's Forfeiture Rights. If the
outstanding shares of the Company's Common Stock shall be
subdivided into a greater number of shares or combined into a
smaller number of shares, or in the event of a reclassification of
the outstanding shares of the Company's Common Stock, or if the
Company shall be a party to a merger, consolidation or capital
reorganization, there shall be substituted for the Restricted Units
then subject to this Agreement such amount and kind of securities
(or cash) as are issued in such subdivision, combination,
reclassification, merger, consolidation or capital reorganization
in respect of the Restricted Units subject immediately prior
thereto to the Company's Forfeiture Right pursuant to this
Agreement. Notwit
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