Document:

exv10w1

Exhibit 10.1

MANAGEMENT AND ADVISORY SERVICES AGREEMENT

     This Management and Advisory Services Agreement (this “Agreement”) is entered into as of
 March 1, 2010, by and between Harbinger Capital Partners LLC, a Delaware limited liability
company (“HCP”), and Harbinger Group Inc., a Delaware corporation (the “Company”).

     HCP and the Company are referred to jointly as the “Parties”. The term “Subsidiary” refers to
any entity a majority of the voting securities of which are owned directly or indirectly by, or
which is otherwise controlled by, the applicable Party. Each of HCP and its direct or indirect
Subsidiaries or affiliates which provides Services (as defined below) is referred to as a “Service
Provider”. Each of the Company and its direct or indirect Subsidiaries or affiliates which receive
the Services is referred to as a “Client”.

RECITALS

     A. The Service Providers have employees and consultants skilled in providing the Services set
forth on Schedule A (as such Schedule A may be amended from time to time pursuant
to Section 1.5, the “Services”).

     B. The Service Providers are and have been rendering the Services to the Clients and the
Company acknowledges and agrees that the Services are substantial and valuable to the Company and
its stockholders.

     C. The Company wishes to avoid the need to duplicate the infrastructure and skill set
available to it through the Service Providers and wishes to continue to receive the Services, and
HCP is willing to continue to provide, or cause to be provided, the Services to the Clients on the
terms and conditions set forth in this Agreement.

     NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises set forth
in this Agreement, HCP and the Company hereby agree as follows:

     1. Engagement of Service Provider.

          1.1
The Company, on behalf of itself and the other Clients, hereby engages the Service Providers
for the Term (as defined below) and upon the terms and conditions set forth herein to provide the
Services to the Clients, as HCP and the Company shall mutually agree from time to time. In
consideration of the compensation to HCP herein specified, HCP accepts such engagement and agrees
to perform, or cause the other Service Providers to provide, the Services.

          1.2
In furtherance of performing the Services, the Service Providers shall be authorized (but not
obligated) to conduct each of the activities set forth on Schedule A.

          1.3
HCP shall devote, or cause the other Service Providers to devote, reasonable time and efforts
to the performance of the Services. However, no precise number of hours is to be devoted by any
Service Provider on a weekly or monthly basis.

          1.4
The Parties agree that HCP may conduct, or cause to be conducted, the Services through HCP’s
Subsidiaries and affiliates (other than the Company and its Subsidiaries), officers, directors,
partners, employees, consultants or agents. The Parties agree that the Services may be performed
for the benefit of the Company and any of the other Clients.

          1.5
Either HCP or the Company may elect, by not less than 30 days’ prior notice to the other, to
remove any activity from Schedule A. At the Company’s request and with the consent of the
audit committee of the board of directors of the Company (the “Audit Committee”), HCP may, in its
discretion, add any activity to Schedule A.

          1.6
No Service Provider shall have any liability hereunder for any losses incurred by the Clients
except to the extent arising from such Service Provider’s gross negligence or willful misconduct
(and in any case subject to the limitations set forth in Section 6.2). Except as expressly set
forth herein, the Parties acknowledge and agree that the

 

Services are provided as-is, that the Clients assume all risks and liabilities arising from or
relating to its use of and reliance upon the Services and no Service Provider makes any
representation or warranty with respect thereto. EXCEPT AS EXPRESSLY SET FORTH HEREIN, THE SERVICE
PROVIDERS HEREBY EXPRESSLY DISCLAIM ALL REPRESENTATIONS AND WARRANTIES REGARDING THE SERVICES,
WHETHER EXPRESS OR IMPLIED, INCLUDING ANY REPRESENTATION OR WARRANTY IN REGARD TO QUALITY,
PERFORMANCE, NONINFRINGEMENT, COMMERCIAL UTILITY, MERCHANTABILITY OR FITNESS OF THE SERVICES FOR A
PARTICULAR PURPOSE.

     2.
Term. This Agreement shall be for a term commencing on the date hereof and expiring on the
third anniversary (the “Initial Term”). Upon expiration of the Initial Term, this Agreement shall
automatically extend for successive periods of one year each unless HCP or the Company gives notice
to the other at least 90 days prior to the end of the Initial Term (or any annual extension
thereof) indicating that it does not intend to extend the term of this Agreement. The Initial
Term, together with all such annual extensions of the Initial Term, is referred to herein as the
“Term.”

     3.
Services Not Exclusive. Each Client acknowledges that the Services rendered for them will
not be exclusive, and that any Service Provider may render similar Services to other persons.

     4.
Information, Confidentiality, Disclosure.

          4.1
Information. The Clients shall furnish the Service Providers with such information as such
Service Provider reasonably believes appropriate to its engagement hereunder (all such information
so furnished being referred to herein as the “Information”). The Clients recognize and confirm
that (a) the Service Providers will use and rely primarily on Information provided by the Clients
and on information available from generally recognized public sources in performing the Services to
be performed hereunder and (b) the Clients do not assume responsibility for the accuracy or
completeness of any such Information.

          4.2
Confidentiality. HCP shall hold, and cause the Service Providers to hold, in confidence
all proprietary and confidential information of the Clients which may come into such Service
Provider’s possession as a result of its performance of Services hereunder, exercising a degree of
care in maintaining such confidence as is used by such Service Provider to protect its own
proprietary or confidential information of similar importance that it does not wish to disclose, it
being understood that such Service Provider may share such information with its legal advisors and
others who are subject to a duty of confidentiality.

          4.3
No Disclosure of Advice. Except as required by applicable law or legal process, no advice
rendered by any Service Provider pursuant to this Agreement, whether formal or informal, may be
disclosed, in whole or in part, or summarized, excerpted from or otherwise referred to without such
Service Provider’s prior written consent. In addition, except as required by applicable law or
legal process, such Service Provider’s role under this Agreement may not be otherwise disclosed or
referred to without its prior written consent.

          4.4
Legal Services; Common Interest. Notwithstanding any other provisions hereof, legal
services shall be provided by the Service Providers only as and when requested specifically by the
Clients and when the Service Providers and the Clients are each satisfied that there is no conflict
of interest between them with respect to the subject matter of the services to be provided or
independently decide to waive any such conflict. None of the Service Providers and their
respective employees or agents shall be responsible for supervising the Client’s legal, regulatory
or compliance functions. The Clients and Service Providers agree that they share a common interest
in the subject matter of the Client’s communications, information and materials, including, but not
limited to, attorney-client communications, attorney work-product and other privileged or protected
information. Subject to the confidentiality restrictions set forth in Section 4.2 of this
Agreement, the Clients and Service Providers are hereby entering into a voluntary sharing of
confidential communication, information and materials, including, but not limited to,
attorney-client communications, attorney work-product and other privileged or protected information
of the Clients. The Service Providers lawyers providing legal services to the Clients shall have
an attorney-client relationship with the Clients and it is intended by the parties that
communication among the Clients and those Service Providers lawyers and the work product of those
Service Providers lawyers shall enjoy the benefits of the attorney-client privilege, the
attorney-work product immunity, joint defense and/or any other applicable privilege, immunity or
protection. The protection of the attorney-client privilege, the attorney work-product immunity,
joint

 

defense and/or any other applicable privilege, immunity or protection are not waived for any
communication, information or materials of any Clients that may be exchanged among the Clients and
the Service Providers and their respective counsel, whether or not such counsel is an employee of
any Service Provider. This Agreement does not affect the independent and separate relationship of
the Service Providers and their respective attorneys, nor shall it require disclosure by the
Service Providers’ counsel of their information to the Clients. Notwithstanding any other
provision hereof, the limitations on liability included in this Agreement shall not apply to legal
Services to the extent that such limitation on liability would contravene any applicable ethical
code, code of responsibility or other legal, administrative or regulatory requirement.

     5.
Reimbursement.

          5.1
Reimbursement. In consideration of the Services, unless otherwise agreed by HCP and the
Company (and such other agreement is approved by the Audit Committee pursuant to the Company’s
Statement of Policy with respect to Related Party Transactions), HCP shall be reimbursed for (a)
all out-of pocket expenses incurred by each Service Provider and the Service Provider’s
fully-loaded cost (based on budgeted compensation and overhead) of services provided by its legal
and accounting personnel (but excluding such services as are incidental and ordinary course activities) and (b) upon the
Company’s completion of any transaction, any out-of-pocket expenses incurred by a Service Provider
and the Service Providers’ fully-loaded cost (based on budgeted compensation and overhead) of
services provided by its legal and accounting personnel (but not its investment  personnel)
relating to such transaction and not previously invoiced to the Company (“Transaction Fees” and,
together with the amounts referred to in clause (a), the “Fees”). HCP shall deliver to the Company
an invoice promptly  following the end of each calendar month setting forth its calculation of the Fees and including in
reasonable detail the components of such Fees, provided, that an invoice for Transaction Fees shall
be delivered to the Company no later than  30 days of the completion of the transaction. A copy of each
invoice shall be delivered to the Audit Committee after review by the Company’s management. If the
Audit Committee requests that Company management question or dispute any item in an invoice, HCP
and the Company shall work together in good faith to settle any such disputed items. The
undisputed portion of the Fees shall be paid by the Company on its next regular accounts payable
date following approval of such invoice by the Audit Committee and any disputed amounts shall be
paid by the Company promptly after the settlement of any such dispute. The Company and its
affiliates shall allocate the liability for the Fees among themselves according to the Services
received.

          5.2
Additional Services. If HCP or any Service Provider is requested by the Company to perform
Services relating to activities outside the ordinary course of the Clients’ business and not
otherwise contemplated by this Agreement, compensation for such Services shall be mutually agreed
to by the Company and HCP and require the approval of the Audit Committee pursuant to the Company’s
Statement of Policy with respect to Related Party Transactions.

     6.
Indemnification; Limitation on Liability.

          6.1
Indemnification by the Company. Subject to Section 6.2, in addition to their agreements
and obligations under this Agreement, the Company agrees to indemnify and hold harmless HCP and its
affiliates (other than the Company and its Subsidiaries), including their respective officers,
directors, stockholders, partners, members, employees and agents (collectively, the “HCP
Indemnitees”) from and against any and all claims, liabilities, losses and damages or actions,
suits or proceedings in respect thereof (collectively, the “Obligations”), as and when incurred by
the HCP Indemnitees, in any way related to or arising out of the performance by HCP of the Services
under this Agreement, and to reimburse the HCP Indemnitees for reasonable out-of-pocket legal and
other expenses (“Expenses”) as and when incurred by any of them in connection with or relating to
investigating, preparing to defend, or defending any actions, claims or other proceedings
(including any investigation or inquiry) arising in any manner out of or in connection with HCP’s
performance under this Agreement (whether or not such Indemnitee is a named party in such
proceeding); provided, however, that the Company shall not be responsible under this Section 6.1
for any Obligations or Expenses incurred by a HCP Indemnitee to the extent that it is finally
judicially determined (in an action in which such HCP Indemnitee is a party) to result primarily
from actions taken by such HCP Indemnitee due to such HCP Indemnitee’s gross negligence or willful
misconduct. Without limiting the foregoing, in no event shall any HCP Indemnitee have any
liability, including, without limitation, liability for any Obligations or Expenses in contract,
tort or otherwise to the Company in connection with this Agreement, their engagement hereunder or
the matters contemplated hereby except to the extent that any such liability is finally

 

judicially determined (in an action in which such HCP Indemnitee is a party) to have resulted
primarily from such party’s gross negligence or willful misconduct; nor shall any HCP Indemnitee
have liability for lost profits or other consequential, incidental, indirect, special or punitive
damages or for any amount in excess of the fees collected by it hereunder. The Company shall be
entitled to such contribution from any of its Subsidiaries that received the benefit of Services.

          6.2
Limited Liability of a Service Provider. Notwithstanding Section 6.1 or anything else to
the contrary contained in this Agreement, no Service Provider shall have any liability in contract,
tort or otherwise for or in connection with any Services rendered or to be rendered by any Service
Provider pursuant to this Agreement, the transactions contemplated by this Agreement or any Service
Provider’s actions or inactions in connection with any such Services or transactions, to any
Client, except to the extent that a Client suffers a loss that results from such Service Provider’s
gross negligence or willful misconduct in connection with any such Services or transactions,
actions or inactions related thereto.

     7.
Third-Party Beneficiaries. This Agreement is for the sole benefit of the Parties and their
permitted successors and assigns and nothing in this Agreement, express or implied, is intended to
confer or shall confer upon any other person or entity any legal or equitable right, benefit or
remedy of any nature; provided, however, that all Indemnitees not signatory to this Agreement are
intended beneficiaries of Section 6 of this Agreement.

     8.
Notice. Any notice or other communication required or permitted to be given or made under
this Agreement by one Party to the other shall be deemed to have been duly given or made when
delivered, if personally delivered, when transmitted, if sent by confirmed facsimile transmission,
or when actually received, if sent by mail, to the Party at the following addresses (or at such
other address as shall be given in writing by one Party to the other):

(i)
If to HCP, addressed to it at:

Harbinger Capital Partners LLC

450 Park Avenue

30th Floor

New York, NY 10022

Attention: Robin Roger, Esq.

Facsimile No.: (212) 898-1309

(ii)
If to the Company, addressed to the Company at:

Harbinger Group Inc.

100 Meridian Centre, Suite 35

Rochester, NY

Attention: Chief Financial Officer

Facsimile No.: (585) 242-8677

(iii)
If to either HCP or the Company, a copy shall be sent to:

Kaye Scholer LLP

425 Park Avenue

New York, New York 10022

Attention: Lynn Toby Fisher and Derek Stoldt

Facsimile No.: (212) 836-6685

     9.
Modifications. This Agreement constitutes the entire agreement between the Parties with
regard to the subject matter hereof, superseding all prior understandings and agreements, whether
written or oral. This Agreement may not be amended or revised except by a writing signed by the
Parties.

 

     10.
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
the Parties and their respective successors and permitted assigns, but may not be assigned by
either Party without the prior written consent of the other Party, except that either Party may
assign its rights hereunder to its affiliates without the other Parties prior written consent.

     11.
Independent Contractors. In providing the Services hereunder, the applicable Service
Provider shall act solely as an independent contractor and nothing in this Agreement shall
constitute or be construed to be or create a partnership, joint venture, or principal/agent
relationship between any Service Provider, on the one hand, and any Client, on the other. All
persons employed by a Service Provider in the performance of its obligations under this Agreement
shall be the sole responsibility of the Service Provider.

     12.
Governing Law; Jurisdiction; Service of Process. This Agreement shall be governed by the
laws of the State of New York, without regard to any conflicts of laws principles thereof that
would call for the application of the laws of any other jurisdiction.

     13.
Severability. If any provision or provisions of this Agreement shall be held to be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions hereof shall not in any way be affected or impaired thereby.

     14.
Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed an original and which shall together constitute one and the same instrument.

[Remainder of Page Intentionally Blank]

 

     IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date first above
written.

	 	 	 	 	 	 
	 	 	HARBINGER CAPITAL PARTNERS LLC	 
	 
	 	 	 	 	 
	 

	 	By:
	 	Harbinger Holdings LLC, its Managing

Member	 
	 

	 	By:	 	/s/
Peter A. Jenson
	 
	 

	 	Name:	 	Peter A. Jenson	 
	 

	 	Title:	 	Vice President	 
	 
	 	 	 	 	 
	 	 	HARBINGER GROUP INC.	 
	 
	 	 	 	 	 
	 

	 	By:	 	/s/
Francis T. McCarron
	 
	 

	 	Name:	 	Francis T. McCarron 	 
	 

	 	Title:	 	Executive Vice President
and
Chief Financial Officer	 

 

 

Schedule A

Authorized Services

The following are authorized Services as of the last date that this Schedule A has been
revised or updated:

     (i) serving as the Clients’ consultant with respect to the periodic review of the investment
criteria and parameters for the Clients’ investments (“Investments”), borrowings and operations,
and other policies for approval by the board of directors of the Company (“Board of Directors”);

     (ii) assisting the Clients in developing criteria for Investments and making available to the
Clients its knowledge and experience with respect to Investments;

     (iii) investigation, analysis and selection of possible Investments;

     (iv) with respect to prospective Investments, conducting negotiations and due diligence with
sellers and their respective agents, representatives and investment bankers and making
recommendations to the Clients in connection with prospective Investments;

     (v) recommending, identifying, and supervising, on behalf of the Clients and at the Clients’
expense, firms which provide investment banking and other financial services and such other
services as may be required relating to the identification of, and making of and negotiating
Investments or Investment opportunities;

     (vi) negotiating on behalf of the Clients for the sale or other disposition of any assets;

     (vii) negotiating on behalf of the Clients any potential investment (whether debt or equity)
in the Company;

     (viii) coordinating operations of any portfolio company, joint venture or co-investment
interests held by the Clients;

     (ix) providing executive and administrative personnel, office space and office services
required in rendering services to the Clients;

     (x) communicating on behalf of the Clients with the holders of any equity or debt securities
of the Clients as required to satisfy the reporting and other requirements of any governmental
bodies or agencies or trading markets and to maintain effective relations with such holders;

     (xi) counseling the Clients in connection with policy decisions to be made by the Board of
Directors;

     (xii) engaging with the Company’s counsel regarding the maintenance of its exemption from the
Investment Company Act;

     (xiii) monitoring the operating performance of the Investments and providing periodic reports
with respect thereto to the Board of Directors; and

     (xiv) advising the Clients with respect to claims, disputes or controversies (including all
litigation, arbitration, settlement or other proceedings or negotiations) in which the Clients may
be involved or to which the Company may be subject arising out of the Clients’ current and former
operations, subject to such limitations or parameters as may be imposed from time to time by the
Board of Directors.exv10w6

Exhibit 10.6

SXC HEALTH SOLUTIONS CORP.

RESTRICTED STOCK UNIT AWARD AGREEMENT

          SXC Health Solutions Corp., a corporation existing under the laws of the Yukon Territory of
Canada (the “Company”), hereby grants                      (the “Employee”) as of                     ,            (the
“Grant Date”), pursuant to Section 7.2 of the SXC Health Solutions Corp. Long-Term Incentive Plan
(the “Plan”), a restricted stock unit award (the “Award”) of            restricted stock units, upon
and subject to the restrictions, terms and conditions set forth below. Capitalized terms not
defined herein shall have the meanings specified in the Plan.

1.        Award Subject to Acceptance of Agreement. The Award shall be null and void unless
the Employee shall accept this Agreement by executing it in the space provided below and returning
it to the Company.

2.        Restriction Period and Vesting. (a) Subject to Section 2(e), the Award shall vest
(i) with respect to one-quarter (1/4) of the restricted stock units subject to the Award on the
first anniversary of the Grant Date, an additional one-quarter (1/4) of the restricted stock units
subject to the Award on the second anniversary of the Grant Date, an additional one-quarter (1/4)
of the restricted stock units subject to the Award on the third anniversary of the Grant Date, and
the remaining one-quarter (1/4) of the restricted stock units subject to the Award on the fourth
anniversary of the Grant Date, or (ii) earlier pursuant to Section 2(b) or (d) hereof (the
“Restriction Period”).

          (b) Subject to Section 2(e), if the Company terminates the Employee’s employment by reason of
permanent disability or the Employee’s employment terminates due to death, the Award shall become
fully vested as of the effective date of the Employee’s termination of employment or the date of
death, as the case may be. For purposes of this Agreement, “permanent disability” shall mean the
inability of the Employee to substantially perform his or her duties for a continuous period of at
least six months as determined by the Committee.

          (c) Subject to Section 2(e), if the Employee’s employment by the Company terminates for any
reason other than permanent disability or death, the portion of the Award, if any, which is not
vested as of the effective date of the Employee’s termination of employment shall be forfeited and
cancelled by the Company.

          (d) (1) In the event of a Change in Control (as defined in Appendix A), the Award shall
immediately vest in full.

               (2) In the event of a Change in Control pursuant to paragraph (3) or (4) of Appendix A, the
Board of Directors (as constituted prior to such Change in Control) may, in its discretion (subject
to existing contractual arrangements):

	 	(i)	 	require that shares of stock of the corporation resulting from such Change in
Control, or a parent corporation thereof, be substituted for some or all of the Shares
(as defined in Section 3) issuable pursuant to the Award, as determined by the Board of
Directors; and/or
	 
	 	(ii)	 	require the Award, in whole or in part, to be surrendered to the Company by the
Employee and to be immediately cancelled by the Company, and provide for the Employee
to receive a cash payment in an amount not less than the amount determined by
multiplying the number of restricted stock units subject to the Award immediately prior
to such cancellation (but after giving effect to any adjustment pursuant to Section
12.4 of the Plan in respect of any transaction that gives rise to such Change in
Control) by the highest per share price offered to holders of shares of the Company’s
common stock, no par value per share (the “Common Stock”), in any transaction whereby
the Change in Control takes place.

               (3) The Company may, but is not required to, cooperate with the Employee if the Employee is
subject to Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), to
assure that any cash payment or substitution in accordance with the foregoing to the Employee is
made in compliance with Section 16 and the rules and regulations thereunder.

 

 

          (e) The vesting terms in any written employment agreement between the Company or any Affiliate
of the Company and the Employee shall prevail over the terms of this Agreement.

3.        Conversion of Restricted Stock Units and Issuance of Shares. Upon the vesting of
all or any portion of the Award in accordance with Section 2 hereof, one share of the Common Stock
shall be issuable for each restricted stock unit that vests on such date (the “Shares”), subject to
the terms and provisions of the Plan and this Agreement, and not later than 30 days thereafter, the
Company will transfer such Shares to the Employee upon satisfaction of any required tax withholding
obligations. No fractional shares shall be issued under this Agreement.

4.        No Rights as a Shareholder; Dividend Equivalents. Prior to the issuance and
transfer of Shares upon vesting, the Employee will be credited with amounts equal to any cash
dividends that would be payable to the Employee if the Employee had been transferred such Shares,
which amounts shall accrue during the Restriction Period and be paid in cash upon lapse of the
Restriction Period. This Section 4 will not apply with respect to record dates for dividends
occurring prior to the Grant Date or after the Restriction Period has lapsed. During the
Restriction Period, the Employee (and any person succeeding to the Employee’s rights pursuant to
the Plan) will not be a shareholder of record of the Shares underlying the Award and will have no
voting or other shareholder rights with respect to such Shares.

5.        Termination of Award. In the event that the Employee shall forfeit all or a
portion of the restricted stock units subject to the Award, the Employee shall promptly return this
Agreement to the Company for cancellation. Such cancellation shall be effective regardless of
whether the Employee returns this Agreement.

6.        Additional Terms and Conditions of Award.

          6.1 Nontransferability of Award. During the Restriction Period, the restricted stock
units subject to the Award and not then vested may not be transferred by the Employee other than by
will, the laws of descent and distribution or pursuant to Section 12.5 of the Plan on a beneficiary
designation form approved by the Company. Except as permitted by the foregoing, during the
Restriction Period, the restricted stock units subject to the Award and not then vested may not be
sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by
operation of law or otherwise) or be subject to execution, attachment or similar process. Any such
attempted sale, transfer, assignment, pledge, hypothecation or encumbrance, or other disposition of
such shares shall be null and void.

          6.2. Withholding Taxes. As a condition precedent to the delivery to the Employee of
any of the Shares subject to the Award, the Employee shall pay to the Company (or shall cause a
broker-dealer on behalf of the Employee to pay to the Company) such amount of cash as the Company
may be required, under all applicable federal, state, local or other laws or regulations, to
withhold and pay over as income or other withholding taxes (the “Required Tax Payments”) with
respect to the Award. The Employee acknowledges and agrees to satisfy his or her obligation with
respect to the Required Tax Payments by selling such number of Shares subject to the Award as is
necessary to make a cash payment to the Company in an amount equal to the Required Tax Payments (or
as close thereto as practicable), such sale to be effected on the Employee’s behalf through a
broker (and other procedures) designated by the Company as soon as practicable following any
vesting date (with such broker selecting the trade date and the selling price). This Section 6.2
is intended to constitute a written plan pursuant to Rule 10b5-1(c) under the Securities Exchange
Act of 1934. To the extent applicable, the Employee shall take actions necessary to ensure that
any such sales shall comply with Rule 144 under the Securities Act of 1933.

          6.3. Compliance with Applicable Law. The Award is subject to the condition that if
the listing, registration or qualification of the Shares subject to the Award upon any securities
exchange or under any law, or the consent or approval of any governmental body, or the taking of
any other action is necessary or desirable as a condition of, or in connection with, the vesting of
the restricted stock units or the delivery of the Shares hereunder, the Shares subject to the Award
may not be delivered, in whole or in part, unless such listing, registration, qualification,
consent or approval shall have been effected or obtained, free of any conditions not acceptable to
the Company. The Company agrees to use reasonable efforts to effect or obtain any such listing,
registration, qualification, consent or approval.

 

 

          6.4. Delivery of Certificates. Subject to Section 6.2, as soon as practicable after
the vesting of the Award, in whole or in part, the Company shall deliver or cause to be delivered
one or more certificates issued in the Employee’s name (or such other name as is acceptable to the
Company and designated in writing by the Employee) representing the number of vested shares. The
Company shall pay all original issue or transfer taxes and all fees and expenses incident to such
delivery, except as otherwise provided in Section 6.2.

          6.5. Award Confers No Rights to Continued Employment. In no event shall the granting
of the Award or its acceptance by the Employee give or be deemed to give the Employee any right to
continued employment by the Company or any Affiliate of the Company.

          6.6. Decisions of Board or Committee. The Board of Directors of the Company or the
Committee shall have the right to resolve all questions which may arise in connection with the
Award. Any interpretation, determination or other action made or taken by the Board of Directors
or the Committee regarding the Plan or this Agreement shall be final, binding and conclusive.

          6.7. Company to Reserve Shares. The Company shall at all times prior to the
cancellation of the Award reserve and keep available, either in its treasury or out of its
authorized but unissued shares of Common Stock, the full number of unvested restricted stock units
subject to the Award from time to time.

          6.8. Agreement Subject to the Plan; Section 409A of the Code. This Agreement is
subject to the provisions of the Plan (including the adjustment provision set forth in Section 12.4
thereof) and shall be interpreted in accordance therewith. The Employee hereby acknowledges
receipt of a copy of the Plan. This Award is intended to be exempt from Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”), as a “short-term deferral,” within the
meaning of regulations issued under Section 409A of the Code, and this Agreement shall be
interpreted and construed in accordance with such intent and in a manner that avoids the imposition
of taxes and other penalties under Section 409A of the Code. The Company reserves the right to
amend this Agreement to the extent it determines in its sole discretion such amendment is necessary
or appropriate to comply with applicable law, including but not limited to Section 409A of the
Code. Notwithstanding the foregoing, under no circumstances shall the Company be responsible for
any taxes, penalties, interest or other losses or expenses incurred by the Employee due to any
failure to comply with Section 409A of the Code.

7.        Miscellaneous Provisions.

          7.1. Meaning of Certain Terms. As used herein, the term “vest” shall mean no longer
subject to forfeiture and all rights hereunder shall be deemed to be vested. As used herein,
employment by the Company shall include employment by an Affiliate of the Company.

          7.2. Successors. This Agreement shall be binding upon and inure to the benefit of any
successor or successors of the Company and any person or persons who shall, upon the death of the
Employee, acquire any rights hereunder in accordance with this Agreement or the Plan.

          7.3. Notices. All notices, requests or other communications provided for in this
Agreement shall be made in writing by (a) actual delivery to the party entitled thereto, (b)
mailing to the last known address of the party entitled thereto, via certified or registered mail,
return receipt requested or (c) telecopy with confirmation of receipt. The notice, request or
other communication shall be deemed to be received, in the case of actual delivery, on the date of
its actual receipt by the party entitled thereto, in the case of mailing, on the tenth calendar day
following the date of such mailing, and in the case of telecopy, on the date of confirmation of
receipt; provided, however, that if a notice, request or other communication is not received during
regular business hours, it shall be deemed to be received on the next succeeding business day of
the Company.

          7.4. Governing Law. This Agreement and all determinations made and actions taken
pursuant hereto, to the extent not otherwise governed by the laws of the United States, shall be
governed by the laws of the State of Delaware and construed in accordance therewith without giving
effect to conflicts of laws principles.

          7.5 Reports Filed with the Securities and Exchange Commission. The Company files
periodic and current reports and proxy statements with the Securities and Exchange Commission
(“SEC”). These documents

 

 

are available, free of charge, on the website of the SEC (www.sec.gov) and on the Company’s website
(www.sxc.com, under Investor Relations/ Regulatory Filings), as soon as reasonably practicable
after the material is filed with, or furnished to, the SEC. Any of these documents are available
to the Employee in paper format, without charge, upon written or oral request to the Company’s
Investor Relations Department located at 2441 Warrenville Road, Suite 610, Lisle, Illinois 60532,
U.S.A., phone number (800) 282-3232.

          7.6. Counterparts. This Agreement may be executed in two counterparts each of which
shall be deemed an original and both of which together shall constitute one and the same
instrument.

	 	 	 	 	 
	 

	 	SXC HEALTH SOLUTIONS CORP.	 	 
	 

	 
	 	 	 	 
	 

	 	 

By:
	 	 

Accepted this                      day of

                    , 2010

	 	 	 
	 

	 

Employee

	 	 

 

 

	 	 	 
	 

	 	          Appendix A

          to SXC Health Solutions Corp.

          Restricted Stock Unit Award
Agreement for Employees

For purposes of this Agreement “Change in Control” shall mean:

       (1) the acquisition by any individual, entity or group (a “Person”), including any “person”
within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), of beneficial ownership within the meaning of Rule 13d-3 promulgated
under the Exchange Act, of more than 50% of either (i) the then outstanding shares of common stock
of the Company (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the
then outstanding securities of the Company entitled to vote generally in the election of directors
(the “Outstanding Company Voting Securities”); provided, however, that the
following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from
the Company (excluding any acquisition resulting from the exercise of a conversion or exchange
privilege in respect of outstanding convertible or exchangeable securities unless such outstanding
convertible or exchangeable securities were acquired directly from the Company), (B) any
acquisition by the Company, (C) any acquisition by an employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the Company or (D) any
acquisition by any corporation pursuant to a reorganization, merger or consolidation involving the
Company, if, immediately after such reorganization, merger or consolidation, each of the conditions
described in clauses (i), (ii) and (iii) of subsection (3) of this Appendix A shall be satisfied;
and provided further that, for purposes of clause (B), if any Person (other than
the Company or any employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company) shall become the beneficial owner of more than 50%
of the Outstanding Company Common Stock or more than 50% of the Outstanding Company Voting
Securities by reason of an acquisition by the Company and such Person shall, after such acquisition
by the Company, become the beneficial owner of any additional shares of the Outstanding Company
Common Stock or any additional Outstanding Company Voting Securities and such beneficial ownership
is publicly announced, such additional beneficial ownership shall constitute a Change in Control;

        (2) individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of such Board; provided, however,
that any individual who becomes a director of the Company subsequent to the date hereof whose
election, or nomination for election by the Company’s shareholders, was approved by the vote of at
least a majority of the directors then comprising the Incumbent Board shall be deemed to have been
a member of the Incumbent Board; and provided further, that no individual who was
initially elected as a director of the Company as a result of an actual or threatened solicitation
by a Person other than the Board for the purpose of opposing a solicitation by any other Person
with respect to the election or removal of directors or any other actual or threatened solicitation
of proxies or consents by or on behalf of any Person other than the Board shall be deemed to have
been a member of the Incumbent Board;

        (3) consummation of a reorganization, merger or consolidation unless, in any such case,
immediately after such reorganization, merger or consolidation, (i) 50% or more of the then
outstanding shares of common stock of the corporation resulting from such reorganization, merger or
consolidation and 50% or more of the combined voting power of the then outstanding securities of
such corporation entitled to vote generally in the election of directors is then beneficially
owned, directly or indirectly, by all or substantially all of the individuals or entities who were
the beneficial owners, respectively, of the Outstanding Company Common Stock and the Outstanding
Company Voting Securities immediately prior to such reorganization, merger or consolidation and in
substantially the same proportions relative to each other as their ownership, immediately prior to
such reorganization, merger or consolidation, of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities, as the case may be, (ii) no Person (other than the Company,
any employee benefit plan (or related trust) sponsored or maintained by the Company or the
corporation resulting from such reorganization, merger or consolidation (or any corporation
controlled by the Company) and any Person which beneficially owned, immediately prior to such
reorganization, merger or consolidation, directly or indirectly, more than 50% of the Outstanding
Company Common Stock or the Outstanding Company Voting Securities, as the case may be) beneficially
owns, directly or indirectly, more than 50% of the then outstanding shares of common stock of such
corporation or more than 50% of the combined voting power of the then outstanding securities of
such corporation entitled to vote generally in the election of directors and (iii) at least a
majority of the members of the board of directors of the corporation resulting from such
reorganization, merger or consolidation were members of the Incumbent Board at the time of the

 

 

execution of the initial agreement or action of the Board providing for such reorganization,
merger or consolidation; or

     (4) consummation of (i) a plan of complete liquidation or dissolution of the Company or (ii)
the sale or other disposition of all or substantially all of the assets of the Company other than
to a corporation with respect to which, immediately after such sale or other disposition, (A) 50%
or more of the then outstanding shares of common stock thereof and 50% or more of the combined
voting power of the then outstanding securities thereof entitled to vote generally in the election
of directors is then beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the Outstanding Company
Common Stock and the Outstanding Company Voting Securities immediately prior to such sale or other
disposition and in substantially the same proportions relative to each other as their ownership,
immediately prior to such sale or other disposition, of the Outstanding Company Common Stock and
the Outstanding Company Voting Securities, as the case may be, (B) no Person (other than the
Company, any employee benefit plan (or related trust) sponsored or maintained by the Company or
such corporation (or any corporation controlled by the Company) and any Person which beneficially
owned, immediately prior to such sale or other disposition, directly or indirectly, more than 50%
of the Outstanding Company Common Stock or the Outstanding Company Voting Securities, as the case
may be) beneficially owns, directly or indirectly, more than 50% of the then outstanding shares of
common stock thereof or more than 50% of the combined voting power of the then outstanding
securities thereof entitled to vote generally in the election of directors and (C) at least a
majority of the members of the board of directors thereof were members of the Incumbent Board at
the time of the execution of the initial agreement or action of the Board providing for such sale
or other disposition.

 

 

SXC HEALTH SOLUTIONS CORP.

Long-Term Incentive Plan

BENEFICIARY DESIGNATION FORM

          You may designate a primary beneficiary and a secondary beneficiary. You can name more than
one person as a primary or secondary beneficiary. For example, you may wish to name your spouse as
primary beneficiary and your children as secondary beneficiaries. Your secondary beneficiary(ies)
will receive nothing if any of your primary beneficiaries survive you. All primary beneficiaries
will share equally unless you indicate otherwise. The same rule applies for secondary
beneficiaries.

Designate Your Beneficiary(ies):

Primary
Beneficiary(ies):

 

 

 

Secondary Beneficiary(ies): 
 

 

 

I certify that my designation of beneficiary set forth above is my free act and deed.

	 	 	 	 	 	 	 
	 
	 

Name of Employee

	 	 	 	 

Employee’s Signature
	 	 
	(Please Print)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

Date

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