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EXHIBIT 10.16
PLAN HIGHLIGHTS
The Barr Laboratories, Inc. Excess Savings & Retirement Plan is
designed to help you save for retirement. The plan is "Non-Qualified,"
meaning it is not qualified under Section 401 of the Internal Revenue
Code. However the amounts contributed to the plan by you and your
employer are not subject to Federal and State income tax until
distributed from the plan. Until distribution, the contributions and
any earnings are held in an irrevocable trust known as a "rabbi trust"
by an independent trustee, Fidelity Management Trust Company. The trust
assets must remain subject to the Employer's creditors in the event of
insolvency in order to avoid current income taxation.
ELIGIBILITY
You are eligible to participate in the Plan if you are an Employee
listed on Appendix A of the Adoption Agreement.
CONTRIBUTIONS
- EMPLOYEE DEFERRAL CONTRIBUTIONS. You may defer between 1 and 12% of
your eligible Compensation, less any tax deferred or after tax
contributions for the Plan Year under the Qualified Savings and
Retirement Plan. Your Deferral Contribution Election will remain in
effect until a new one is made and any new election will not be
effective until the first day of the following Plan Year.
- EMPLOYER MATCHING CONTRIBUTIONS. The Employer will make a matching
contribution on your Deferral Contributions in an amount, equal to 100%
of your Deferral Contributions, but not to exceed 10% of your
compensation.
- NOTE: Eligible compensation is equal to your total
compensation excluding the value of a qualified or a
non-qualified stock option.
INVESTMENTS
You may invest among the following funds managed by Fidelity
Investments.
Fund Option 1: Fidelity Puritan (0004)
Fund Option 2: Fidelity Low-Priced Stock (0316)
Fund Option 3: Spartan U.S. Equity Index Fund (0650)
Fund Option 4: Fidelity Diversified International Fund (0325)
Fund Option 5: Fidelity U.S. Bond Index Portfolio (0651)
NOTE: The Fidelity Fund Number assigned to each fund is identified in
parentheses.
You may redirect your future contributions simply by calling the
toll-free number provided by Fidelity. You may also call the same
number to make exchanges among the plan's investment options. You may
contact a Fidelity telephone representative between 8:30 AM (ET) and
8:00
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PM (ET) on any business day. Exchanges requested before 4:00 PM (ET)
will be posted that business day based upon the closing price of the
affected mutual fund(s). Exchanges requested after 4:00 PM (ET) will be
processed on the next business day. The minimum exchange is the lesser
of $250 or 100% of your account balance in the mutual fund. If your
exchange is less than $250 then it may only be exchanged into one
mutual fund.
You may contact a Fidelity representative at 1-800-544-8888 to obtain a
prospectus or information about a mutual fund. To protect its
shareholders, each fund reserves the right to modify its exchange
privileges as outlined in the fund prospectus with sixty days written
notice.
VESTING
The term "vesting" refers to your right to the contributions in your
account. You are always 100% vested in your employee contributions
(deferral contributions).
Employer matching contributions will be vested in accordance with the
following schedule:
<TABLE>
<CAPTION>
Years of Service Vesting Percentage
---------------- ------------------
<S> <C>
0 0%
1 20%
2 40%
3 60%
4 80%
5 100%
</TABLE>
For this purpose, Years of Service prior to the effective date of the
plan (July 1, 1999), shall be considered.
ACCESS TO YOUR MONEY
- The Plan requires a lump sum payout upon termination of employment.
- You may request a hardship withdrawal prior to termination of your
employment, if you qualify, subject to a $1,000 minimum.
STATEMENT SCHEDULE
You will receive a statement four times a year within 20 days after February 28,
May 31, August 31, and October 31 disclosing the value of your account balances.
Fidelity Distributors Corporation
General Distribution agent
82 Devonshire Street
Boston, MA 02109
