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Exhibit 10.30
 
FIRST AMENDMENT TO EMPLOYMENT AGREEMENT 
WHEREAS, Clifford E. Berman (the “Executive”) and SXC Health Solutions, Inc. (the “Company”) executed an employment agreement (“Agreement”) executed February 16, 2008;
WHEREAS, the Company and Executive desire to amend the Agreement to fully satisfy the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), and to clarify other aspects of the Agreement; 
NOW, THEREFORE, BE IT RESOLVED, in accordance with the foregoing recitals, the Agreement is amended as follows: 
		
	1.    
	Subsection 5.2(b) of the Agreement shall be deleted in its entirety and replaced with the following:

“(b) Termination by Company Without Cause. If the Triggering Event was a Termination by the Company Without Cause, then Executive shall be entitled to receive (i) Executive's Annual Base Compensation and accrued but unpaid vacation through the date thereof; (ii) payment of Executive's Incentive Compensation Bonus for the year in which the termination occurred, if any, pro rated to Executive's date of termination (payable at the same time other members of the Senior Management Team are paid their respective incentive compensation bonuses which shall be in no event later than March 15 following the close of the Company's fiscal year); and (iii) the Severance Benefit. “Severance Benefit” means a payment equal to the Executive's Annual Base Compensation as of the date of termination, payable according to the Company's regular payroll schedule, less required tax withholding, commencing thirty (30) days from the date the Company receives the Separation Agreement and General Release executed by Executive. For purposes of this Section 5.2(b), any payment or benefit that the Executive receives shall be treated as a “separate payment” for the application of Section 409A of the Internal Revenue Code (“Code”). The Company intends to rely on the involuntary separation from service exception of Treasury regulation §1.409A-1(b)(9)(iii) if the Executive receives any payment or benefit due to his Termination by the Company Without Cause. Executive's entitlement to the benefits provided in subsections 5.2(b)(ii) and (iii) are contingent on Executive signing a Separation Agreement and General Release provided by the Company.”
		
	2.    
	Subsection 5.2(c) of the Agreement shall be deleted in its entirety and replaced with the following:

“(c)    Termination Arising Out of a Change of Control. If the Triggering Event was a Termination Arising Out of a Change of Control (defined below), then Executive shall be entitled to receive (i) Executive's Annual Base Compensation and accrued but unpaid vacation through the date thereof; (ii) payment of a Executive's Incentive Compensation Bonus, if any, pro rated to Employee's date of termination (payable at the same time other members of the Senior Executive Team are paid their respective incentive compensation bonuses which shall be in no event later than March 15 following the close of the Company's fiscal year); and (iii) the Change of Control Severance Benefit. Executive's entitlement to the benefits provided in subsections 5.2(c) (ii) and (iii) is contingent on Executive signing a Separation Agreement and General Release provided by the Company within a reasonable period of time following the date the Separation Agreement and General Release is provided to Executive. “Change of Control Severance Benefit” means a lump-sum payment, less required tax withholding, equal to one and one-half times the Executive's Annual Base Compensation at the time of termination, plus one (1) times the targeted amount of Executive's Incentive Compensation at the time of termination.   The Change of Control Severance Benefit shall be paid within thirty days from the date the executed Separation Agreement and General Release is received by the Company.  Notwithstanding the foregoing to the contrary, if the Compensation Committee determines that the Executive is a Specified Employee then his Change of Control Severance Benefit due under this paragraph (c) shall be made no earlier than the six (6) month anniversary of the Triggering Event or upon the death of the Executive, if earlier, pursuant to Section 409A of the Code. Notwithstanding anything to the contrary contained in this Agreement, if and to the extent that any payments and rights provided under this Agreement would cause Executive to be subject to excise tax under Section 280G or Section 4999 of the Code, or the corresponding section(s) of any future federal tax law, then the amount of the payments shall be reduced to the extent necessary to 

 

 

avoid imposition of any such excise tax. All determinations of the amount of the reduction shall be made by the Company's tax counsel, and the cost of making such determination shall be paid by the Company.” 
3.    The Agreement shall be amended by adding a new Subsection 5.4(e) as follows:
“(e) 'Total Disability' means the Executive (a) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (b) is by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan which covers the Executive.  Subject to the provisions of Section 409A and the Treasury regulations issued thereunder, any determination of whether the Executive satisfies the definition of 'Total Disability' shall be made by the Compensation Committee, based upon medical evidence from a physician selected by the Compensation Committee. Any determination of whether the Executive satisfies the definition of 'Total Disability' for purposes of this Agreement shall not be construed as a determination for any other purpose.”
4.    Subsection 6.5(a) of the Agreement shall be amended by deleting the following sentence:
“In particular, to the extent Executive becomes entitled to receive a payment or a benefit upon an event that does not constitute a permitted distribution event under Code section 409A(a)(2), then notwithstanding anything to the contrary in this Agreement, such payment or benefit will be made or provided to Executive on the earlier of (i) Executive's 'separation from service' with Company (determined in accordance with Code section 409A); provided however, that if Executive is a 'specified Executive' (within the meaning of Code section 409A), Executive's date of payment shall be made on the date which is 6 months after the date of Executive's separation from service with Company or (ii) Executive's death.”     
IN WITNESS WHEREOF, the parties have executed this First Amendment to the Employment Agreement of Clifford E. Berman, to be effective as of the date that the last signatory to this Amendment signs below.
 
			
	COMPANY:
	 
	EXECUTIVE:

	SXC HEALTH SOLUTIONS, INC.
	 
	 

						
	By:
	/s/ Jeffrey G. Park
	 
	/s/ Clifford E. Berman

	Chief Financial Officer
	 
	 
	 
	 

	Date
	12/22/2008
	 
	Date
	12/15/2008WebFilings | EDGAR view

 

 
 
Exhibit 10.31
 
SECOND AMENDMENT TO THE 
CLIFFORD E. BERMAN EMPLOYMENT AGREEMENT 
 
WHEREAS, CLIFFORD E. BERMAN (the “Employee”) SXC Health Solution, Inc. (the “Company”) executed an employment agreement (“Agreement”) effective as of February 16, 2008;
WHEREAS, the Company wishes to continue to employ Employee, and Employee wishes to continue to be employed by the Company, as its SVP, General Counsel & Corp Secretary; and
 
WHEREAS, in order to induce the Employee to enter into this Agreement, and to incentivize and reward Employee's continued effort, loyalty and commitment to the Company, concurrent with the execution and delivery of this Agreement the Company expresses its intention to grant to the Employee with the following; stock options to purchase 6,341 shares of SXC Health Solutions Corp., 1,545 Restricted Stock Units issuable in shares of SXC Health Solutions Corp.  and a potential for up to 3090 Performance Based Restricted Stock Units.   Employee is eligible for 1545 Performance Based Restricted Stock Units (with the potential of an additional 1545) contingent upon meeting performance metrics for employee's business unit as determined by CEO.  
 
 
 WHEREAS, Employee acknowledges that as a member of the Company's senior management team, Employee is one of the persons charged with responsibility for the implementation of the Company's business plans, and that Employee is one of only a few Employees who will have regular access to confidential and/or proprietary information relating to the Company. Further, Employee acknowledges that Employee's covenants to the Company are made in partial consideration of the Company's willingness to employ Employee under the terms and conditions set forth in the Agreement and this Amendment. As a condition of that employment, the Company requires that this Amendment be entered into pursuant to which Employee furnishes the Company with Employee's covenant not to compete. Employee acknowledges that Employee's covenant not to compete is being made in partial consideration of the Company's grant of stock options to purchase shares of common stock of SXC Health Solutions Corporation and the grant of Restricted Stock Units (RSU's) and a potential for grant of Performance Based Restricted Stock Units (PBRSU'S) 
 
NOW, THEREFORE, BE IT RESOLVED, in accordance with the foregoing recitals, the Agreement is amended as follows: 
2.     A new Subsection 3.75 shall be added to the Agreement and shall read as follows: 
“3.75      Grant of Stock Options 
 
     a.         Employee shall be granted options (“Options”) to purchase 6341 shares of common stock of SXC Health Solutions Corp.  The grants of Options provided by Section 3.75(a) are contingent upon approval by SXC Health Solutions Corporation's Board of Directors. The Options shall be subject to the Company's current Long Term Incentive Plan. The options shall vest in one-fourth increments annually, commencing on the anniversary date of the grant.  
 
b.    Except as otherwise provided in Section 5.2(e) of this Agreement, the Options shall have a seven (7) year life.
 
a.Upon a Change of Control (defined below), all of the Options shall vest.”

 

 

 
3.     A new Subsection 3.76 shall be added to the Agreement and shall read as follows
 
 “3.76      Grant of Restricted Stock Units  
 
Employee shall be granted 1545 restricted stock units (“RSUs”) issuable in common stock of SXC Health Solutions Corp.  The grants of RSUs provided by Section 3.76 are contingent upon approval by SXC Health Solutions Corporation's Board of Directors. The RSUs shall be subject to the Company's current Long Term Incentive Plan. The RSUs shall vest in one-fourth increments annually, commencing on the anniversary date of the grant.”
 
4.     A new Subsection 3.77 shall be added to the Agreement and shall read as follows
 
“3.77      Grant of Performance Based Restricted Stock Units  
 
 Employee is eligible for 1545 Performance Based Restricted Stock Units (“PBRSUs”), with the potential of an additional 1545 PBRSUs, issuable in common stock of SXC Health Solutions Corp.  These PBRSUs are contingent upon meeting performance metrics for employee's business unit as determined by CEO.   The grants of PBRSUs provided by Section 3.77 are contingent upon approval by SXC Health Solutions Corporation's Board of Directors. The PBRSUs shall be subject to the Company's current Long Term Incentive Plan.”
 
5.     A new Subsection 4.55 shall be added to the Agreement and shall read as follows: 
4.55.    Covenant Not To Compete.  Employee expressly acknowledges that (i) the Company is and will be engaged in the business of providing pharmacy benefit management services, healthcare transaction processing services, and information technology solutions to the pharmaceutical industry, including without limitation:  (x) pharmacy benefit services and analytics software and related ASP services, including  claims processing, pharmacy networks, data warehousing and information analysis, rebate contracting and formulary management, clinical initiatives, mail order pharmacy services, and consumer web services; (y) pharmacy practice management and point of sale(POS) systems for retail pharmacy (independents and chains); institutional/nursing home pharmacy, and high-volume mail order pharmacy; and (z) specialty pharmacy products and services; (ii) Employee is one of a limited number of persons who has extensive knowledge and expertise relevant to the businesses of the Company; (iii) Employee's performance of his services for the Company hereunder will afford Employee full and complete access to and cause Employee to become highly knowledgeable about the Company's Confidential and Proprietary Information; (iv) the agreements and covenants contained in this section 4.6 are essential to protect the business and goodwill of the Company, because, if Employee enters into any activities competitive with the businesses of the Company, Employee will cause substantial harm to the Company; (v) Employee will be exposed to the Company's largest customers; (vi) the business territory of the Company at the time this Agreement was entered into constitutes the United States and Canada (the “Business Territory”); and (vii) Employee's covenants to the Company set forth in this section 4.6 are being made in consideration of the Company's willingness to employ him.  Accordingly, Employee hereby agrees that during the Restricted Period, Employee shall not, within the Business Territory, directly or indirectly own any interest in, invest in, lend to, borrow from, manage, control, participate in, consult with, become employed by, render services to, or in any other manner whatsoever engage in any business which is competitive with any business actively being engaged in by the Company or actively (and demonstrably) being considered by the Company for entry into on the date of the termination of Employee's employment with the Company.  The preceding to the contrary notwithstanding, Employee shall be free to make investments in the publicly traded securities of any corporation, provided that such investments do not amount to more than 1% of the outstanding securities of any class of such corporation. 
 

 

 

 
IN WITNESS WHEREOF, the parties hereby adopt this First Amendment to the Agreement, which First Amendment is effective as of June 17, 2009.
 
			
	COMPANY:
	 
	EXECUTIVE:

	SXC HEALTH SOLUTIONS, INC.
	 
	 

						
	By:
	/s/ Jeffrey G. Park
	 
	/s/ Clifford E. Berman

	Chief Financial Officer
	 
	 
	 
	 

	Date
	6/23/2009
	 
	Date
	6/17/2009

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