SUMMARY OF 2009 LONG-TERM INCENTIVE PLAN
On March 3, 2009, the Compensation Committee of the Board of Directors of PharMerica Corporation (the “Corporation”)
adopted the 2009 Long-Term Incentive Program (the “ LTIP ”) under the PharMerica Corporation 2007 Omnibus Plan, as
amended (the “Omnibus Plan”), to provide stock options, performance share unit awards, and performance-based cash awards
to the Corporation’s executives and certain other officers and employees based on pre-established performance objectives and
goals. The LTIP advances the Corporation’s commitment to performance-based compensation practices by providing
participants an opportunity to earn equity-based and cash awards upon the achievement of certain pre-established long-term
performance objectives. The LTIP also is designed to drive consistent growth of the Corporation over a multiple-year
Eligibility . The Chief Executive Officer, the other executive officers and all employees in grades “J” through “N” are
eligible to receive awards under the LTIP.
Performance Cycle . LTIP performance cycle begins on January 1, 2009 and ends on December 31, 2011.
Award Targets . The amount of the awards under the LTIP are based on individual participant bonus targets and company
performance criteria. Individual participant bonus targets are 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.
The Compensation Committee established the bonus targets under the LTIP for the Corporation’s principal executive
officer, principal financial officer and fiscal 2008 named executive officers as follows:
In general, the Compensation Committee, or the Chief Executive Officer, as applicable has the authority to make such
combination of cash awards, stock options and performance share units as