PAR PHARMACEUTICAL COMPANIES, INC.
TERMS OF PERFORMANCE SHARES AWARD
This document sets forth the terms of the award of Performance Shares (as defined in Section 1.1 below)
granted by PAR PHARMACEUTICAL COMPANIES, INC. (the “Company”) pursuant to a Certificate of
Performance Shares (the “Certificate”) displayed at the website of Smith Barney Benefits Access®. The
Certificate, which specifies the person to whom the Performance Shares have been awarded (the “Participant”),
other specific details of the award, and the electronic acceptance of the Certificate at the website of Smith
Barney, are incorporated herein by reference.
WHEREAS, the Board of Directors (the “Board”) of the Company has authorized and approved the Par
Pharmaceutical Companies, Inc. 2004 Performance Equity Plan (the “Plan”), which has been approved by the
stockholders of the Company;
WHEREAS, the Plan, in part, provides for the grant of Performance Shares to certain employees of the
Company and any Subsidiary of the Company;
WHEREAS, pursuant to the Plan, the Committee has approved an award to the Participant of
Performance Shares, designated in the Certificate, on the terms and conditions set forth in the Plan and in these
Terms. Capitalized terms used but not defined in these Terms shall have the meanings set forth in the Plan.
NOW, THEREFORE, the parties, intending to be legally bound, agree as follows:
Grant of Performance Shares .
Subject to the terms and conditions hereinafter set forth and set forth in the Plan, the
Company grants as of the date of grant specified on the Certificate (the “Date of Grant”) to the Participant shares
of common stock, par value $.01 per share (“Common Stock”), specified on the Certificate and representing the
number of shares to be awarded to the Participant in the event that all target performance conditions set forth in
Section 1.3 of these Terms are determined to have been met (the “Target Shares”). The Target Shares a