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ATTENTION:
THIS REVISED PERFORMANCE BASED RESTRICTED STOCK
UNIT AWARD
SHALL NOT BECOME EFFECTIVE UNLESS AND UNTIL IT
IS
"ACCEPTED" BY THE EMPLOYEE
IN THE MANNER DESCRIBED IN SECTION 1(b)
BELOW.
REVISED PERFORMANCE BASED RESTRICTED STOCK
UNIT AWARD AGREEMENT
THIS AGREEMENT REPLACES THE PRIOR AGREEMENT
DATED MARCH 28, 2007
This Revised PERFORMANCE BASED RESTRICTED STOCK
UNIT AWARD Agreement (this " Agreement " ) is made as
of the Additional Grant Date (defined below), by and between
Alpharma Inc., a Delaware (USA) corporation with an address at 440
Route 22 East, 3rd Floor, Bridgewater NJ, 08807 USA (the "
Company " ), and the Employee (defined below), pursuant
and subject to the Company's 2003 Omnibus Incentive Compensation
Plan (the " Plan " ), the terms of which are
incorporated herein by reference, 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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" Employee ":
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" Grant Date ":
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March 28, 2007 (with respect to the Target
Number of Restricted Units)
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" Target Number of Restricted Units
":
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" Additional Grant Date ":
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________, 2008 (with respect to the Additional
Target Number of Restricted Units)
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" Additional Target Number of Restricted
Units ":
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" Full Vesting Date ":
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The date upon which the Company files its first
10-K Report with the SEC after December 31, 2009, subject to the
Sections 2 and 3
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1. Grant and Acceptance of Restricted Stock
Unit Award .
(a) The Company granted to the Employee, subject
to the restrictions, forfeiture risks and other terms and
conditions set forth herein and in the Plan, the Performance Based
Restricted Stock Unit Award (the "Restricted Stock Unit Award"),
which shall consist of restricted units in the amount of that
Target Number of Restricted Units (defined above) (each, a "
Restricted Unit " ). Each Restricted Unit represents the
Employee'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 Company hereby grants to the Employee,
the Additional Target Number of Restricted Stock Units (defined
above), which shall become part of the Employee's Restricted Stock
Unit Award. The restrictions, forfeiture risks and other terms and
conditions set forth herein and in the Plan otherwise applicable to
the Employee's Restricted Stock Unit Award shall be applicable to
the Employee's Additional Target Number of Restricted Stock
Units.
(c) The revised Restricted Stock Unit Award
shall not be considered granted unless and until the Employee
accepts the terms of this Agreement in writing. By so accepting the
Restricted Stock Unit Award, the Employee is memorializing that he
or she has accepted the Restricted Stock Unit Award as of the Grant
Date and the Additional Grant Date. Thereafter, the Restricted
Stock Unit Award shall vest on the Full Vesting Date and subject to
Sections 2 and 3 . (If the Company has no record of the
Employee's acceptance of the terms of this Agreement, or any other
document required by the Company in connection with the Restricted
Stock Unit Award, the Restricted Stock Unit Award shall be
ineffective and the Employee shall have no rights in the Restricted
Stock Unit Award).
2. Award
(a) Award Amount . The Company has
determined that the Employee shall be entitled to on the Full
Vesting Date one (1) share of Common Stock per Target Number of
Restricted Units and Additional Target Number of Restricted Units
granted.
(b) Vesting of Restricted Units . The
Employee shall become 100% vested in the Restricted Units on the
Full Vesting Date, subject to the other terms and conditions of
this Agreement, including Section 2 and 3 , and shall
receive that number of shares of Common Stock represented by the
then-vested Restricted Units (the " Vested Shares " )
(as determined in Section 2(a)) .
3. Restrictions / Rights of Company and
Employee .
(a) Forfeiture Rights of the Company Upon
Termination . Subject to the further provisions of this
Agreement, and except as otherwise provided in Section 3(b)
below, prior to the Full Vesting Date, in the event that the
Employee ceases to be a continuing employee of the Company as a
result of a termination of his or her Employment, other than as a
result of the death, Disability, or Retirement of the Employee, the
entire Restricted Stock Unit Award shall automatically be forfeited
by the Employee, and shall, with no further action on the part of
the Employee, revert to the full beneficial and record ownership of
the Company (the " Forfeiture Event " ). (The terms
" Employment " , " Retirement " and
" Disability " are defined in Section 4
below.)
(b) The Death or Disability of the
Employee . In the event that the Employee dies, or an event of
Disability of the Employee, occurs prior to the Full Vesting Date,
the Employee (or Beneficiary, in the case of death of the Employee)
shall nonetheless become vested in the number of Restricted Units
described in Section 2(a). As soon as practicable following the
Employee's termination from employment as a result of death or
Disability, the Employee (or Beneficiary, in the case of death of
the Employee) shall receive the number of Vested Shares, as
described in Section 2(a). The Employee and the beneficiary shall
have no further rights under this Agreement.
(c) The Retirement of the Employee . This
Section 3(c) shall apply in lieu of Section 3(a) in
the event that the Employee terminates employment with the Company
as a result of Retirement prior to the Full Vesting Date. On the
Full Vesting Date, the retired Employee will be treated as if he
were employed on such date for purposes of this Agreement provided,
however, that such retired Employee shall only become vested in a
pro rata portion of the Restricted Units underlying the Restricted
Stock Unit Award, as follows:
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(i) If the Employee's Retirement date is
prior to the first anniversary of the Grant Date, his entire
Restricted Stock Unit Award shall be forfeited.
(ii) If the Employee's Retirement date is on or
after the first anniversary of the Grant Date and prior to second
anniversary of the Grant Date, such retired Employee shall be 1/3
vested in the Restricted Units underlying his Restricted Unit
Award.
(iii) If the Employee's Retirement date is on or
after the second anniversary of the Grant Date and prior to the
Full Vesting Date, such retired Employee shall be 2/3 vested in the
Restricted Units underlying his Restricted Unit Award.
(d) Change in Control . In the event that
a Change in Control (as defined in the Alpharma Inc. Change in
Control Plan, as amended from time to time (the " Change in
Control Plan " )) occurs, the Restricted Stock Unit Award
shall be governed by the Change in Control Plan and the provisions
of this Agreement that contradict such Change in Control Plan shall
become ineffective. For the Employee's reference, a copy of the
Change in Control Plan is publicly available as an exhibit to the
Company's securities filings, and is also available for review upon
request.
4. Definitions . For purposes of this
Agreement:
(a) An event of " Disability "
shall mean the Employee's termination in good standing from the
employ of the Company for reasons of disability under the
then-established rules of the Company, consistent with all
applicable federal, state and local (including international)
laws.
(b) An event of " Retirement "
shall mean the Employee's voluntary termination of his or her
Employment with the Company on or after attaining age 55 and
completing at least 5 years of service.
(c) " Employment " shall mean the
continuing status of the Employee as a full-time permanent salaried
or hourly employee of the Company or another entity so long as that
entity is, and at all relevant times continues to be, an affiliate
(as that term is defined under the regulations of the United States
Securities and Exchange Commission) of the Company. Employment
(i) shall include any period of illness or temporary
disability during which the Employee continues to receive salary
pursuant to the policies of the Company, as in effect from time to
time, but (ii) shall not include any period of time during
which the Employee is receiving salary continuation, payments in
lieu of statutory or other notice, or during a statutory notice
period, or other benefits as a result of the termination of
Employment or any leave of absence of a duration longer than three
(3) months.
5. Issuance of Stock Certificate(s) .
Upon the occurrence of the Full Vesting Date and subject to
Sections 2 and 3 ), the Secretary of the Company (the "
Secretary " ) shall promptly, upon written request,
deliver to the Employee a stock certificate (or cer
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