Document:

<PAGE>

                                  EXHIBIT 10.1

CONTACT: CUSTOMER SERVICES -- CTSLINK
         WELLS FARGO BANK MINNESOTA, N.A.
         SECURITIES ADMINISTRATION SERVICES
         7485 NEW HORIZON WAY
         FREDERICK, MD  21703
         WWW.CTSLINK.COM
         TELEPHONE: (301) 815-6600
         FAX: (301) 315-6660

                                SMT SERIES 2005-3
                           RECORD DATE: JUNE 30, 2005
                        DISTRIBUTION DATE: JULY 20, 2005

                     CERTIFICATEHOLDER DISTRIBUTION SUMMARY

<TABLE>
<CAPTION>
                Certificate Certificate     Beginning
                   Class    Pass-Through   Certificate    Interest     Principal
Class   CUSIP   Description     Rate         Balance    Distribution  Distribution
----- --------- ----------- ------------ -------------- ------------  -------------
<S>   <C>       <C>         <C>          <C>            <C>           <C>
 A-R  81744FHN0     SEN        4.29702%            0.00         0.00           0.00
 A-1  81744FHK6     SEN        3.46000%  334,739,962.47   965,166.89  10,790,032.12
 B-1  81744FHP5     SUB        3.63000%    6,208,000.00    18,779.20           0.00
 B-2  81744FHQ3     SUB        3.90000%    3,287,000.00    10,682.75           0.00
 B-3  81744FHR1     SUB        4.03464%    2,374,000.00     7,981.86           0.00
 B-4  81744FHS9     SUB        4.03464%    1,095,000.00     3,681.61           0.00
 B-5  81744FHT7     SUB        4.03464%      731,000.00     2,457.77           0.00
 B-6  81744FHU4     SUB        4.03464%    1,826,168.26     6,139.94           0.00
 X-A  81744FHL4      IO        0.57464%            0.00   160,294.73           0.00
 X-B  81744FHM2      IO        0.31117%            0.00     2,462.11           0.00
                                         -------------- ------------  -------------
Totals                                   350,261,130.73 1,177,646.86  10,790,032.12
                                         -------------- ------------  -------------

<CAPTION>
                            Ending
       Current Realized   Certificate      Total      Cumulative Realized
Class       Loss            Balance     Distribution         Loss
-----  ---------------- -------------- -------------  -------------------
<S>    <C>              <C>            <C>            <C>
 A-R        0.00                  0.00          0.00          0.00
 A-1        0.00        323,949,930.35 11,755,199.01          0.00
 B-1        0.00          6,208,000.00     18,779.20          0.00
 B-2        0.00          3,287,000.00     10,682.75          0.00
 B-3        0.00          2,374,000.00      7,981.86          0.00
 B-4        0.00          1,095,000.00      3,681.61          0.00
 B-5        0.00            731,000.00      2,457.77          0.00
 B-6        0.00          1,826,168.26      6,139.94          0.00
 X-A        0.00                  0.00    160,294.73          0.00
 X-B        0.00                  0.00      2,462.11          0.00
            ----        -------------- -------------          ----
Totals      0.00        339,471,098.61 11,967,678.98          0.00
            ----        -------------- -------------          ----
</TABLE>

All distributions required by the Pooling and Servicing Agreement have been
calculated by the Certificate Administrator on behalf of the Trustee.

                        PRINCIPAL DISTRIBUTION STATEMENT

<TABLE>
<CAPTION>
                         Beginning    Scheduled    Unscheduled
        Original Face   Certificate   Principal     Principal             Realized
Class      Amount         Balance    Distribution  Distribution Accretion Loss (1)
------ -------------- -------------- ------------ ------------- --------- --------
<S>    <C>            <C>            <C>          <C>           <C>       <C>
 A-R           100.00           0.00       0.00            0.00   0.00      0.00
 A-1   349,687,000.00 334,739,962.47   3,120.03   10,786,912.09   0.00      0.00
 B-1     6,208,000.00   6,208,000.00       0.00            0.00   0.00      0.00
 B-2     3,287,000.00   3,287,000.00       0.00            0.00   0.00      0.00
 B-3     2,374,000.00   2,374,000.00       0.00            0.00   0.00      0.00
 B-4     1,095,000.00   1,095,000.00       0.00            0.00   0.00      0.00
 B-5       731,000.00     731,000.00       0.00            0.00   0.00      0.00
 B-6     1,826,168.26   1,826,168.26       0.00            0.00   0.00      0.00
 X-A             0.00           0.00       0.00            0.00   0.00      0.00
 X-B             0.00           0.00       0.00            0.00   0.00      0.00
       -------------- --------------   --------   -------------   ----      ----
Totals 365,208,268.26 350,261,130.73   3,120.03   10,786,912.09   0.00      0.00
       -------------- --------------   --------   -------------   ----      ----

<CAPTION>
        Total Principal Ending Certificate Ending Certificate Total Principal
Class      Reduction         Balance           Percentage      Distribution
------  --------------- ------------------ ------------------ ---------------
<S>     <C>             <C>                <C>                <C>
 A-R              0.00              0.00        0.00000000              0.00
 A-1     10,790,032.12    323,949,930.35        0.92639970     10,790,032.12
 B-1              0.00      6,208,000.00        1.00000000              0.00
 B-2              0.00      3,287,000.00        1.00000000              0.00
 B-3              0.00      2,374,000.00        1.00000000              0.00
 B-4              0.00      1,095,000.00        1.00000000              0.00
 B-5              0.00        731,000.00        1.00000000              0.00
 B-6              0.00      1,826,168.26        1.00000000              0.00
 X-A              0.00              0.00        0.00000000              0.00
 X-B              0.00              0.00        0.00000000              0.00
         -------------    --------------        ----------     -------------
Totals   10,790,032.12    339,471,098.61        0.92952742     10,790,032.12
         -------------    --------------        ----------     -------------
</TABLE>

(1)   Amount does not include excess special hazard, bankruptcy, or fraud losses
      unless otherwise disclosed. Please refer to the prospectus supplement for
      a full description.

<PAGE>

                    PRINCIPAL DISTRIBUTION FACTORS STATEMENT

<TABLE>
<CAPTION>
                       Beginning    Scheduled   Unscheduled
          Original    Certificate   Principal     Principal              Realized
Class   Face Amount     Balance    Distribution Distribution  Accretion   Loss (3)
----- -------------- ------------- ------------ ------------ ---------- ----------
<S>   <C>            <C>           <C>          <C>          <C>        <C>
 A-R          100.00    0.00000000   0.00000000   0.00000000 0.00000000 0.00000000
 A-1  349,687,000.00  957.25595310   0.00892235  30.84733516 0.00000000 0.00000000
 B-1    6,208,000.00 1000.00000000   0.00000000   0.00000000 0.00000000 0.00000000
 B-2    3,287,000.00 1000.00000000   0.00000000   0.00000000 0.00000000 0.00000000
 B-3    2,374,000.00 1000.00000000   0.00000000   0.00000000 0.00000000 0.00000000
 B-4    1,095,000.00 1000.00000000   0.00000000   0.00000000 0.00000000 0.00000000
 B-5      731,000.00 1000.00000000   0.00000000   0.00000000 0.00000000 0.00000000
 B-6    1,826,168.26 1000.00000000   0.00000000   0.00000000 0.00000000 0.00000000
 X-A            0.00    0.00000000   0.00000000   0.00000000 0.00000000 0.00000000
 X-B            0.00    0.00000000   0.00000000   0.00000000 0.00000000 0.00000000

<CAPTION>
         Total       Ending       Ending      Total
       Principal   Certificate  Certificate  Principal
Class  Reduction     Balance     Percentage Distribution
----- ----------- ------------- ----------- ------------
<S>   <C>         <C>           <C>         <C>
 A-R   0.00000000    0.00000000  0.00000000  0.00000000
 A-1  30.85625751  926.39969558  0.92639970 30.85625751
 B-1   0.00000000 1000.00000000  1.00000000  0.00000000
 B-2   0.00000000 1000.00000000  1.00000000  0.00000000
 B-3   0.00000000 1000.00000000  1.00000000  0.00000000
 B-4   0.00000000 1000.00000000  1.00000000  0.00000000
 B-5   0.00000000 1000.00000000  1.00000000  0.00000000
 B-6   0.00000000 1000.00000000  1.00000000  0.00000000
 X-A   0.00000000    0.00000000  0.00000000  0.00000000
 X-B   0.00000000    0.00000000  0.00000000  0.00000000
</TABLE>

(3)   Amount does not include excess special hazard, bankruptcy, or fraud losses
      unless otherwise disclosed. Please refer to the prospectus supplement for
      a full description.

                         INTEREST DISTRIBUTION STATEMENT

<TABLE>
<CAPTION>
                                     Beginning                Payment of
                        Current    Certificate/    Current      Unpaid    Current
        Original Face Certificate    Notional      Accrued     Interest  Interest
 Class     Amount        Rate        Balance       Interest    Shortfall Shortfall
------ -------------- ----------- -------------- ------------ ---------- ---------
<S>    <C>            <C>         <C>            <C>          <C>        <C>
  A-R          100.00   4.29702%            0.00         0.00    0.00       0.00
  A-1  349,687,000.00   3.46000%  334,739,962.47   965,166.89    0.00       0.00
  B-1    6,208,000.00   3.63000%    6,208,000.00    18,779.20    0.00       0.00
  B-2    3,287,000.00   3.90000%    3,287,000.00    10,682.75    0.00       0.00
  B-3    2,374,000.00   4.03464%    2,374,000.00     7,981.86    0.00       0.00
  B-4    1,095,000.00   4.03464%    1,095,000.00     3,681.61    0.00       0.00
  B-5      731,000.00   4.03464%      731,000.00     2,457.77    0.00       0.00
  B-6    1,826,168.26   4.03464%    1,826,168.26     6,139.94    0.00       0.00
  X-A            0.00   0.57464%  334,739,962.47   160,294.73    0.00       0.00
  X-B            0.00   0.31117%    9,495,000.00     2,462.11    0.00       0.00
       --------------                            ------------    ----       ----
Totals 365,208,268.26                            1,177,646.86    0.00       0.00
       --------------                            ------------    ----       ----

<CAPTION>
                                              Remaining     Ending
       Non-Supported                           Unpaid     Certificate/
         Interest    Realized Total Interest  Interest     Notational
 Class  Shortfall    Loss (4)  Distribution   Shortfall      Balance
------ ------------- -------- -------------- ----------- --------------
<S>    <C>           <C>      <C>            <C>         <C>
  A-R     0.00         0.00           0.00      0.00               0.00
  A-1     0.00         0.00     965,166.89      0.00     323,949,930.35
  B-1     0.00         0.00      18,779.20      0.00       6,208,000.00
  B-2     0.00         0.00      10,682.75      0.00       3,287,000.00
  B-3     0.00         0.00       7,981.86      0.00       2,374,000.00
  B-4     0.00         0.00       3,681.61      0.00       1,095,000.00
  B-5     0.00         0.00       2,457.77      0.00         731,000.00
  B-6     0.00         0.00       6,139.94      0.00       1,826,168.26
  X-A     0.00         0.00     160,294.73      0.00     323,949,930.35
  X-B     0.00         0.00       2,462.11      0.00       9,495,000.00
          ----         ----   ------------      ----
Totals    0.00         0.00   1,177,646.86      0.00
          ----         ----   ------------      ----
</TABLE>

(4)   Amount does not include excess special hazard, bankruptcy, or fraud losses
      unless otherwise disclosed. Please refer to the prospectus supplement for
      a full description.
<PAGE>

                     INTEREST DISTRIBUTION FACTORS STATEMENT

<TABLE>
<CAPTION>
                                                              Payment of              Non-
                        Current       Beginning      Current    Unpaid     Current  Supported
Class  Original Face  Certificate   Certificate/     Accrued   Interest   Interest   Interest   Realized
 (5)      Amount         Rate     Notional Balance  Interest  Shortfall   Shortfall Shortfall   Loss (6)
----- --------------- ----------- ---------------- ---------- ---------- ---------- ---------- ----------
<S>   <C>             <C>         <C>              <C>        <C>        <C>        <C>        <C>
 A-R           100.00   4.29702%      0.00000000   0.00000000 0.00000000 0.00000000 0.00000000 0.00000000
 A-1   349,687,000.00   3.46000%    957.25595310   2.76008799 0.00000000 0.00000000 0.00000000 0.00000000
 B-1     6,208,000.00   3.63000%   1000.00000000   3.02500000 0.00000000 0.00000000 0.00000000 0.00000000
 B-2     3,287,000.00   3.90000%   1000.00000000   3.25000000 0.00000000 0.00000000 0.00000000 0.00000000
 B-3     2,374,000.00   4.03464%   1000.00000000   3.36219882 0.00000000 0.00000000 0.00000000 0.00000000
 B-4     1,095,000.00   4.03464%   1000.00000000   3.36220091 0.00000000 0.00000000 0.00000000 0.00000000
 B-5       731,000.00   4.03464%   1000.00000000   3.36220246 0.00000000 0.00000000 0.00000000 0.00000000
 B-6     1,826,168.26   4.03464%   1000.00000000   3.36219840 0.00000000 0.00000000 0.00000000 0.00000000
 X-A             0.00   0.57464%    957.25595310   0.45839488 0.00000000 0.00000000 0.00000000 0.00000000
 X-B             0.00   0.31117%   1000.00000000   0.25930595 0.00000000 0.00000000 0.00000000 0.00000000

<CAPTION>
                                    Remaining
                         Total       Unpaid
Class  Original Face    Interest     Interest    Ending Certificate/
 (5)      Amount      Distribution  Shortfall   Notational Balance
----- --------------- ------------  ----------  --------------------
<S>   <C>             <C>           <C>         <C>
 A-R           100.00  0.00000000   0.00000000         0.00000000
 A-1   349,687,000.00  2.76008799   0.00000000       926.39969558
 B-1     6,208,000.00  3.02500000   0.00000000      1000.00000000
 B-2     3,287,000.00  3.25000000   0.00000000      1000.00000000
 B-3     2,374,000.00  3.36219882   0.00000000      1000.00000000
 B-4     1,095,000.00  3.36220091   0.00000000      1000.00000000
 B-5       731,000.00  3.36220246   0.00000000      1000.00000000
 B-6     1,826,168.26  3.36219840   0.00000000      1000.00000000
 X-A             0.00  0.45839488   0.00000000       926.39969558
 X-B             0.00  0.25930595   0.00000000      1000.00000000
</TABLE>

(5)   Per $1 denomination

(6)   Amount does not include excess special hazard, bankruptcy, or fraud losses
      unless otherwise disclosed. Please refer to the prospectus supplement for
      a full description.

                       CERTIFICATEHOLDER ACCOUNT STATEMENT

                               CERTIFICATE ACCOUNT

<TABLE>
<S>                                                                          <C>
Beginning Balance                                                                     0.00

Deposits
         Payments of Interest and Principal                                  12,090,147.25
         Liquidations, Insurance Proceeds, Reserve Funds                              0.00
         Proceeds from Repurchased Loans                                              0.00
         Other Amounts (Servicer Advances)                                        7,701.53
         Realized Losses (Gains, Subsequent Expenses & Recoveries)                    0.00
         Prepayment Penalties                                                         0.00
Total Deposits                                                               12,097,218.78
                                                                             -------------

Withdrawals
         Reimbursement for Servicer Advances                                     14,634.51
         Payment of Service Fee                                                 114,905.29
         Payment of Interest and Principal                                   11,967,678.98
                                                                             -------------
Total Withdrawals (Pool Distribution Amount)                                 12,097,218.78

Ending Balance                                                                        0.00
                                                                             =============
</TABLE>

<PAGE>

                    PREPAYMENT/CURTAILMENT INTEREST SHORTFALL

<TABLE>
<S>                                                                         <C>
Total Prepayment/Curtailment Interest Shortfall                             0.00
Servicing Fee Support                                                       0.00
                                                                            ----

Non-Supported Prepayment Curtailment Interest Shortfall                     0.00
                                                                            ====
</TABLE>

                                 SERVICING FEES

<TABLE>
<S>                                                                    <C>
Gross Servicing Fee                                                    110,089.20
Master Servicing Fee                                                     4,816.09
Supported Prepayment/Curtailment Interest Shortfall                          0.00
                                                                       ----------

Net Servicing Fee                                                      114,905.29
                                                                       ==========
</TABLE>

                                 OTHER ACCOUNTS

<TABLE>
<CAPTION>
                   Beginning          Current           Current       Ending
Account Type        Balance         Withdrawals        Deposits       Balance
------------       ---------        -----------        --------      --------
<S>                <C>              <C>                <C>           <C>
Reserve Fund        5,000.00            0.00             0.00        5,000.00
Reserve Fund        5,000.00            0.00             0.00        5,000.00
</TABLE>

<PAGE>

             LOAN STATUS STRATIFICATION/CREDIT ENHANCEMENT STATEMENT

                                   DELINQUENT

<TABLE>
<CAPTION>
                               No. of                      Principal
                                Loans                       Balance
<S>                            <C>                       <C>
0-29 Days                         0                              0.00
30 Days                           6                      1,943,478.40
60 Days                           0                              0.00
90 Days                           0                              0.00
120 Days                          0                              0.00
150 Days                          0                              0.00
180+ Days                         0                              0.00
                                 --                      ------------
                                  6                      1,943,478.40
</TABLE>

<TABLE>
<CAPTION>
                               No. of                     Principal
                                Loans                      Balance
<S>                           <C>                         <C>
0-29 Days                     0.000000%                   0.000000%
30 Days                       0.592885%                   0.572497%
60 Days                       0.000000%                   0.000000%
90 Days                       0.000000%                   0.000000%
120 Days                      0.000000%                   0.000000%
150 Days                      0.000000%                   0.000000%
180+ Days                     0.000000%                   0.000000%
                              --------                    --------
                              0.592885%                   0.572497%
</TABLE>

                                   BANKRUPTCY
<TABLE>
<CAPTION>
                            No. of                   Principal
                            Loans                     Balance
<S>                         <C>                      <C>
0-29 Days                     0                         0.00
30 Days                       0                         0.00
60 Days                       0                         0.00
90 Days                       0                         0.00
120 Days                      0                         0.00
150 Days                      0                         0.00
180+ Days                     0                         0.00
                             --                         ----
                              0                         0.00
</TABLE>

<TABLE>
<CAPTION>
                            No. of                   Principal
                            Loans                     Balance
<S>                       <C>                        <C>
0-29 Days                 0.000000%                  0.000000%
30 Days                   0.000000%                  0.000000%
60 Days                   0.000000%                  0.000000%
90 Days                   0.000000%                  0.000000%
120 Days                  0.000000%                  0.000000%
150 Days                  0.000000%                  0.000000%
180+ Days                 0.000000%                  0.000000%
                          --------                   --------
                          0.000000%                  0.000000%
</TABLE>

                                   FORECLOSURE

<TABLE>
<CAPTION>
                             No. of                   Principal
                             Loans                     Balance
<S>                          <C>                      <C>
0-29 Days                      0                        0.00
30 Days                        0                        0.00
60 Days                        0                        0.00
90 Days                        0                        0.00
120 Days                       0                        0.00
150 Days                       0                        0.00
180+ Days                      0                        0.00
                              --                        ----
                               0                        0.00
</TABLE>

<TABLE>
<CAPTION>
                             No. of                   Principal
                             Loans                     Balance
<S>                        <C>                        <C>
0-29 Days                  0.000000%                  0.000000%
30 Days                    0.000000%                  0.000000%
60 Days                    0.000000%                  0.000000%
90 Days                    0.000000%                  0.000000%
120 Days                   0.000000%                  0.000000%
150 Days                   0.000000%                  0.000000%
180+ Days                  0.000000%                  0.000000%
                           0.000000%                  0.000000%
</TABLE>

                                       REO

<TABLE>
<CAPTION>
                             No. of                    Principal
                              Loans                     Balance
<S>                          <C>                       <C>
0-29 Days                       0                         0.00
30 Days                         0                         0.00
60 Days                         0                         0.00
90 Days                         0                         0.00
120 Days                        0                         0.00
150 Days                        0                         0.00
180+ Days                       0                         0.00
                               --                         ----
                                0                         0.00
</TABLE>

<TABLE>
<CAPTION>
                             No. of                    Principal
                              Loans                     Balance
<S>                         <C>                        <C>
0-29 Days                   0.000000%                  0.000000%
30 Days                     0.000000%                  0.000000%
60 Days                     0.000000%                  0.000000%
90 Days                     0.000000%                  0.000000%
120 Days                    0.000000%                  0.000000%
150 Days                    0.000000%                  0.000000%
180+ Days                   0.000000%                  0.000000%
                            --------                   --------
                            0.000000%                  0.000000%
</TABLE>

                                      TOTAL

<TABLE>
<CAPTION>
                             No. of                     Principal
                             Loans                       Balance
<S>                          <C>                       <C>
0-29 Days                      0                               0.00
30 Days                        6                       1,943,478.40
60 Days                        0                               0.00
90 Days                        0                               0.00
120 Days                       0                               0.00
150 Days                       0                               0.00
180+ Days                      0                               0.00
                              --                       ------------
                               6                       1,943,478.40
</TABLE>

<TABLE>
<CAPTION>
                             No. of                     Principal
                             Loans                       Balance
<S>                        <C>                          <C>
0-29 Days                  0.000000%                    0.000000%
30 Days                    0.592885%                    0.572497%
60 Days                    0.000000%                    0.000000%
90 Days                    0.000000%                    0.000000%
120 Days                   0.000000%                    0.000000%
150 Days                   0.000000%                    0.000000%
180+ Days                  0.000000%                    0.000000%
                           --------                     --------
                           0.592885%                    0.572497%
</TABLE>

<TABLE>
<S>                                              <C>
Current Period Class A Insufficient Funds:           0.00
Principal Balance of Contaminated Properties         0.00
Periodic Advance                                 7,071.53
</TABLE>

<PAGE>

                              COLLATERAL STATEMENT

<TABLE>
<CAPTION>
Collateral Description                                   Mixed ARM
<S>                                                   <C>
Weighted Average Gross Coupon                               4.428303%
Weighted Average Net Coupon                                 4.051136%
Weighted Average Pass-Through Rate                          4.034636%
Weighted Average Maturity (Stepdown Calculation)                 335

Beginning Scheduled Collateral Loan Count                      1,039
Number of Loans Paid in Full                                      27
Ending Scheduled Collateral Loan Count                         1,012

Beginning Scheduled Collateral Balance                350,261,130.73
Ending Scheduled Collateral Balance                   339,471,098.61
Ending Actual Collateral Balance at 30-June-2005      339,474,256.09

Monthly P&I Constant                                    1,295,672.11
Special Servicing Fee                                           0.00
Prepayment Penalties                                            0.00
Realized Loss Amount                                            0.00
Cumulative Realized Loss                                        0.00

Scheduled Principal                                         3,120.03
Unscheduled Principal                                  10,786,912.09
</TABLE>

MISCELLANEOUS REPORTING

<TABLE>
<S>                                                                <C>
Senior Percentage                                                       100%
Senior Prepayment Percentage                                            100%
Subordinate Prepayment Percentage                                  0.000000%
Subordinate Percentage                                             0.000000%
</TABLE>EX-10.01

 

Exhibit 10.01

CARDINAL HEALTH, INC.

DEFERRED PAYMENT STOCK APPRECIATION RIGHT AGREEMENT

BACKGROUND INFORMATION

	A.	 	Robert D. Walter (“Grantee”) and Cardinal Health, Inc., an Ohio corporation
(the “Company”), are parties to a Nonqualified Stock Option Agreement (the
“Option Agreement”) pursuant to which the Company granted to Grantee on November
15, 1999 an option to purchase (giving effect to stock splits occurring after the date of
grant) 1,425,000 common shares, without par value, of the Company (“Shares”) at a
per Share grant price of $31.167 that vested in three equal annual installments ending on
November 15, 2002 (the “November 1999 Option”) pursuant to the Company’s Amended
and Restated Equity Incentive Plan (the “Equity Incentive Plan”).

	B.	 	The November 1999 Option was approved by a predecessor to the Human Resources and
Compensation Committee of the Board of Directors of the Company (the “Committee”)
in order to provide an incentive to Grantee with respect to his continued services with the
Company. At the time the November 1999 Option was granted, such predecessor to the
Committee intended to grant the November 1999 Option pursuant to the terms set forth in the
Option Agreement. Grantee relied upon the Company’s action in granting the November 1999
Option in agreeing to perform services for the Company. While performing his services for
the Company, Grantee has continued to rely upon his understanding that the November 1999
Option and all of the terms set forth in the Option Agreement (including, but not limited
to, the grant price of $31.167, the 1,425,000 Shares subject to such option, and the
vesting schedule set forth above) were valid and properly granted. Grantee performed such
services in consideration for the November 1999 Option and the terms set forth in the
Option Agreement including, but not limited to, the grant price of $31.167, the 1,425,000
Shares subject to such option, and the vesting schedule set forth above.

	C.	 	The Company disclosed in its annual proxy statement filed with the Securities and
Exchange Commission on November 5, 2004 (the “Proxy Statement”) that it had
recently identified an issue with respect to the November 1999 Option. Specifically, the
November 1999 Option was in excess of the number of Shares permitted to be granted to a
single individual during any fiscal year under the terms of the Equity Incentive Plan. The
maximum number of Shares that could be granted pursuant to the terms of the Equity
Incentive Plan (giving effect to stock splits occurring after the date of the Equity
Incentive Plan) was 562,500 Shares (the “Limitation”), although the Company would
have been permitted at the time to make a larger grant outside of the Equity Incentive
Plan. At the time of the grant of the November 1999 Option, neither the Company nor
Grantee understood that the November 1999 Option exceeded the Limitation.

	D.	 	The Company disclosed in the Proxy Statement that the Committee was then exploring
alternatives to substitute the portion of the November 1999 Option in excess of 562,500

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     Shares with equivalent value.

	E.	 	The Committee considered several alternatives to provide Grantee with equivalent value
for the portion of the November 1999 Option in excess of the Limitation in order to satisfy
the Committee’s original intent and understanding under the November 1999 Option. The
Committee has offered to Grantee on behalf of the Company the Deferred Payment Stock
Appreciation Right (the “SAR”) described in this Deferred Payment Stock
Appreciation Right Agreement, and Grantee has determined to accept the SAR in satisfaction
of the November 1999 Option except as set forth in paragraph F below.

	F.	 	The Company and the Grantee confirm and agree that (1) the portion of the November 1999
Option relating to the 862,500 Shares in excess of the Limitation is null and void, (2) the
November 1999 Option remains outstanding with respect to the 562,500 Shares and continues
to be governed by the terms of the Option Agreement and (3) the SAR, together with the
November 1999 Option (as adjusted), fulfills the Committee predecessor’s intention and
Grantee’s understanding with respect to the Option Agreement.

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TERMS OF AWARD

Grant Date: August 3, 2005

Exercise Price: $31.167

Grant Expiration Date: November 15, 2009

The Company has granted to Grantee a SAR relating to 862,500 Shares having an aggregate exercise
price of $26,881,537.50 (i.e., the equivalent of $31.167 for each full Share). The SAR has been
independently approved and granted by the Committee and ratified by the Board of Directors of the
Company and is subject to the provisions of this agreement. This SAR shall be exercisable at any
time on or after August 3, 2005 and prior to the earlier of (i) November 15, 2009 or (ii) the
Payment Date (as defined below).

	 	 	 	 	 	 	 
	By:

	 	/s/ John B. McCoy
	 

	 	 
	Its:

	 	Chairman of the Human Resources
	 

	 	and Compensation Committee

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1. Method of Exercise, Payment of Price, and Cash Settlement.

(a) Method of Exercise. At any time when the SAR is exercisable under this agreement, the
SAR may be exercised from time to time, in whole or in part but always in increments of full
Shares, by written notice to the Company which will:

          (i) state the number of Shares with respect to which the SAR is being exercised; and

          (ii) if the SAR is being exercised by anyone other than Grantee, be accompanied by proof
satisfactory to counsel for the Company of the right of such person or persons to exercise the SAR
under this agreement and all applicable laws and regulations.

Notwithstanding the foregoing, the SAR will be automatically exercised on the Payment Date or, if
earlier, the Grant Expiration Date without any written notice to the Company or any action by
Grantee to the extent not already exercised prior thereto.

(b) Payment of Price. No payment to the Company is necessary upon exercise of the SAR.
However, any payment to Grantee will be subject to any required tax withholding as provided in
Section 10(a).

(c) Settlement. Upon exercise of the SAR, Grantee will be entitled to receive a cash
payment, paid out at such time and in accordance with Section 1(d), equal to the product of (i) the
excess of the last sale price of one Share on the exercise date (or, if no sale of Shares occurs on
such date, on the next preceding date on which a sale occurred) as reported on the New York Stock
Exchange Composite Tape over the Exercise Price, times (ii) the number of Shares as to which
Grantee is exercising the SAR (the result of such product, the “SAR Spread”).

(d) Payment. Grantee shall receive on the Payment Date, by wire transfer of immediately
available funds to the account specified by Grantee, an amount equal to the SAR Spread credited
with any interest on the SAR Spread from, and including, the date of exercise of the SAR to, but
excluding, the Payment Date (such amount, the “SAR Payment”). For purposes of the
foregoing, the interest rate shall be the “Prime Rate” published in the Wall Street Journal from
time to time on the first publication date of each calendar quarter. The interest shall be
credited at the end of each calendar quarter (based upon the interest rate published on the first
publication date of such calendar quarter) and the resulting balance shall be compounded quarterly;
provided that, for the calendar quarter during which the Payment Date occurs, the interest credited
shall be prorated based on the number of days in such calendar quarter prior to the Payment Date.
The “Payment Date” shall be the date that is six months after the date of termination of
Grantee’s employment pursuant to the Employment Agreement between Grantee and the Company dated
February 1, 2004 (as it may be amended from time to time, the “Employment Agreement”).

2. Transferability. The SAR shall be transferable at Grantee’s death, by Grantee by will
or pursuant to the laws of descent and distribution. Following transfer, the SAR shall continue to
be subject to the same terms and conditions as were applicable immediately prior to transfer and,

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except as otherwise provided in this agreement, references to the original Grantee shall be deemed
to refer to the transferee.

3. Termination of Relationship. If Grantee’s employment by the Company and its subsidiaries
(collectively, the “Cardinal Group”) terminates for any reason whether by Grantee or the
Company (including, by way of example, termination as a result of death, retirement, Disability,
Cause or Good Reason), Grantee (or any transferee, if applicable) will have until the Payment Date
or, if earlier, the Grant Expiration Date to exercise any unexercised portion of the SAR. In
accordance with Section 1(a), the SAR shall be automatically exercised on the Payment Date or, if
earlier, the Grant Expiration Date to the extent not exercised by Grantee (or any transferee, if
applicable) prior thereto. Capitalized terms used in this Section 3 but not defined herein have
the meaning ascribed to them in the Employment Agreement.

4. Restrictions on Exercise. The SAR is subject to all restrictions in this agreement. As
a condition of any exercise of the SAR, the Company may require Grantee or his transferee or
successor to make any representation and warranty to comply with any applicable law or regulation
or to confirm any factual matters reasonably requested by the Company.

5. Right of Set-Off. By accepting this SAR, Grantee consents to a deduction from, and
set-off against, any amounts owed to Grantee by any member of the Cardinal Group from time to time
(including, but not limited to, amounts owed to Grantee as wages, severance payments or other
fringe benefits) to the extent of the amounts owed to the Cardinal Group by Grantee under this
agreement.

6. Governing Law/Venue. This agreement shall be governed by the laws of the State of Ohio,
without regard to principles of conflicts of law, except to the extent superceded by the laws of
the United States of America. The parties agree and acknowledge that the laws of the State of Ohio
bear a substantial relationship to the parties and/or this agreement and that the SAR and benefits
granted herein would not be granted without the governance of this agreement by the laws of the
State of Ohio. In addition, all legal actions or proceedings relating to this agreement shall be
brought in state or federal courts located in Franklin County, Ohio and the parties executing this
agreement hereby consent to the personal jurisdiction of such courts. Any provision of this
agreement which is determined by a court of competent jurisdiction to be invalid or unenforceable
should be construed or limited in a manner that is valid and enforceable and that comes closest to
the business objectives intended by such provision, without invalidating or rendering unenforceable
the remaining provisions of this agreement.

7. Action by the Committee. (a) The parties agree that the Committee shall have the
authority to interpret the terms and provisions of this agreement. The Committee may delegate its
functions under this agreement to an officer of the Cardinal Group designated by the Committee
(hereinafter the “designee”). In fulfilling its responsibilities hereunder, the Committee or its
designee may rely upon documents, written statements of the parties or such other material as the
Committee or its designee deems appropriate.

(b) Subject to Sections 10(b) and 10(c), the Committee may amend the terms of the SAR at any time;
provided no such amendment shall impair the rights of Grantee or transferee with

5

 

respect to the SAR without the consent of Grantee or transferee, unless it is made to cause the SAR
to comply with applicable law, stock exchange rules or accounting rules; and provided, further, the
SAR may not be amended so as to decrease the Exercise Price of such SAR to reflect a decrease in
the fair market value of the underlying stock.

(c) In the event of any stock dividend, stock split, share combination, corporate separation or
division (including, but not limited to, split-up, spin-off, split-off or distribution to the
Company’s shareholders other than a normal cash dividend), or partial or complete liquidation, or
any other corporate transaction or event having any effect similar to any of the foregoing, then
the number of Shares subject to the SAR and the exercise price per Share of the SAR, and any other
characteristics or terms of the SAR as the Committee shall deem necessary or appropriate to reflect
equitably the effects of such changes, shall be appropriately substituted for new shares or
adjusted, as determined by the Committee in its discretion.

(d) If any recapitalization, reorganization, reclassification, consolidation, merger of the Company
or any sale of all or substantially all of the Company’s assets to another person or entity or
other transaction which is effected in such a way that holders of Shares are entitled to receive
(either directly or upon subsequent liquidation) stock, securities, or assets with respect to or in
exchange for Shares (each an “Organic Change”) shall occur, in lieu of the Shares subject
to the SAR, the Committee shall substitute such shares of stock, securities or assets (including
cash) as may be issued or payable with respect to or in exchange for the number of Shares
immediately theretofore subject to the SAR, after giving effect to any adjustments otherwise
required or permitted under this agreement.

8. Prompt Acceptance of Agreement. The SAR grant evidenced by this agreement shall, at the
discretion of the Committee, be forfeited if this agreement is not executed by Grantee and returned
to the Company within 90 days of the Grant Date set forth on the first page of this agreement.

9. Electronic Delivery. The Company may, in its sole discretion, decide to deliver any
documents related to the SAR grant under this agreement by electronic means. Grantee hereby
consents to receive such documents by electronic delivery through an on-line or electronic system
established and maintained by the Company or another third party designated by the Company.

6

 

10. Miscellaneous.

(a) Tax Withholding. The Company shall have the right to withhold from any amounts
otherwise payable pursuant to Section 1(d) the amount of any taxes which the Company is required to
withhold with respect to the SAR, without notice.

(b) Code Section 162(m). It is the intention of Grantee and the Company that no tax
deduction for payments hereunder be disallowed as a result of the application of Section 162(m) of
the Internal Revenue Code of 1986, as amended (the “Code”), and the parties acknowledge
that the terms of this agreement are intended to avoid any such disallowance by virtue of Section
162(m). The parties agree that in the event that it is determined that the terms of this Agreement
would result in any such disallowance as a result of the application of Section 162(m) of the Code
(or any successor), they will make reasonable efforts in good faith to agree to modify this
agreement in order to avoid any such disallowance in a manner that still achieves as closely as
possible the original intent of the parties.

(c) Code Section 409A. It is the intention of Grantee and the Company that this agreement
and the payments hereunder comply with the requirements of Section 409A of the Code, and the
parties acknowledge that the terms of this agreement are intended to avoid the imposition of any
excise tax or penalties by virtue of Section 409A. If at any time Grantee or the Company
determines that this agreement or the payments hereunder would fail to comply with the requirements
of Section 409A (or any successor), they will make reasonable efforts in good faith to agree to
modify this agreement in order to satisfy the requirements of Section 409A or to exempt such
payments from the application of Section 409A in a manner that still achieves as closely as
possible the original intent of the parties.

(d) Attorneys’ Fees. Grantee shall be promptly reimbursed for any and all reasonable
expenses (including, without limitation, attorneys’ fees and other charges of counsel) incurred by
him in connection with the negotiation and documentation of this agreement and the Deferred Payment
Stock Appreciation Right Agreement dated March 3, 2005 between Grantee and the Company.

(e) Beneficiaries. The Committee shall establish such procedures as it deems appropriate
for a participant to designate a beneficiary to whom any amounts payable in the event of the
participant’s death are to be paid.

(f) Government Regulation. Notwithstanding any provisions of this agreement, the Company’s
obligations under this agreement shall be subject to all applicable laws, rules and regulations and
to such approvals as may be required by any governmental or regulatory agencies.

(g) Invalidity. In case any one or more of the provisions of this agreement shall be held
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby and the invalid, illegal
or unenforceable provision shall be deemed null and void; however, to the extent permissible by
law, any provision which could be deemed null and void shall first be construed,
interpreted or revised retroactively to permit this agreement to be construed so as to foster the
intent of this agreement.

7

 

ACCEPTANCE OF AGREEMENT

Grantee hereby: (a) represents that he is familiar with and understands all provisions of this
agreement; and (b) voluntarily and knowingly accepts this agreement and the SAR granted to him
under this agreement subject to all provisions of this agreement. Grantee further acknowledges
receiving a copy of the Company’s most recent Annual Report and other communications routinely
distributed to the Company’s shareholders.

	 	 	 	 	 
	 

	 	/s/ Robert D. Walter	 	 
	 

	 	 	 	 
	 

	 	Signature	 	 
	 
	 	 	 	 
	 

	 	Robert D. Walter	 	 
	 

	 	 	 	 
	 

	 	Print Name	 	 
	 
	 	 	 	 
	 

	 	August 3, 2005	 	 
	 

	 	 	 	 
	 

	 	Date	 	 

8

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