Document:

Restricted Share Units Agreement

 Exhibit 10.02 
 CARDINAL HEALTH, INC. 
 RESTRICTED SHARE UNITS AGREEMENT 
 On November 15, 2006 (the “Grant Date”), Cardinal Health, Inc, an Ohio corporation (the “Company”), has awarded to Mark W.
Parrish (“Awardee”) 35,000 Restricted Share Units (the “Restricted Share Units” or “Award”), representing an unfunded unsecured promise of the Company to deliver common shares, without par value, of the Company (the
“Shares”) to Awardee as set forth herein. The Restricted Share Units have been granted pursuant to the Cardinal Health, Inc. 2005 Long-Term Incentive Plan, as amended (the “Plan”), and shall be subject to all provisions of the
Plan, which are incorporated herein by reference, and shall be subject to the provisions of this Restricted Share Units Agreement (this “Agreement”). Capitalized terms used in this Agreement which are not specifically defined shall have
the meanings ascribed to such terms in the Plan. 
 1. Vesting. Subject to the provisions set forth elsewhere in this Agreement, the
Restricted Share Units shall vest on November 15, 2009 (the “Vesting Date”). Notwithstanding the foregoing, in the event of a Change of Control prior to Awardee’s Termination of Employment, the Restricted Share Units shall vest
in full. 
 2. Transferability. The Restricted Share Units shall not be transferable. 
 3. Termination of Employment. Except as set forth below, if a Termination of Employment occurs prior to the vesting of a Restricted Share Unit,
such Restricted Share Unit shall be forfeited by Awardee. If a Termination of Employment occurs prior to the vesting in full of the Restricted Share Units by reason of Awardee’s death, by the Company other than as a Termination for Cause, or by
the Awardee with “good reason” as defined in the employment letter agreement dated November 8, 2006, then any unvested Restricted Share Units shall vest in full and shall not be forfeited. 
 4. Triggering Conduct/Competitor Triggering Conduct. As used in this Agreement, “Triggering Conduct” shall include the following:
disclosing or using in any capacity other than as necessary in the performance of duties assigned by the Company and its Affiliates (collectively, the “Cardinal Group”) any confidential information, trade secrets or other business
sensitive information or material concerning the Cardinal Group; violation of Company policies, including conduct which would constitute a breach of any of the Certificates of Compliance with Company Policies and/or the Certificates of Compliance
with Company Business Ethics Policies signed by Awardee; directly or indirectly employing, contacting concerning employment, or participating in any way in the recruitment for employment of (whether as an employee, officer, director, agent,
consultant or independent contractor), any person who was or is an employee, representative, officer or director of the Cardinal Group at any time within the 12 months prior to Awardee’s Termination of Employment; any action by Awardee and/or
his or her representatives that either does or could reasonably be expected to undermine, diminish or otherwise damage the relationship between the Cardinal Group and any of its customers, potential customers, vendors and/or suppliers that were
known to Awardee; and breaching any provision of any employment or severance agreement with a member of the Cardinal Group. As used in this Agreement, “Competitor Triggering Conduct” shall include, either during Awardee’s employment
or within one year following Termination of Employment, accepting employment with or serving as a consultant or advisor or in any other capacity to an entity that is in competition with the business conducted by any member of the Cardinal Group (a
“Competitor”), including, but not limited to, employment or another business relationship with any Competitor if Awardee has been introduced to trade secrets, confidential information or business sensitive information during Awardee’s
employment with the Cardinal Group and such information would aid the Competitor because the 

 
threat of disclosure of such information is so great that, for purposes of this Agreement, it must be assumed that such disclosure would occur. 

5. Special Forfeiture/Repayment Rules. For so long as Awardee continues as an Employee with the Cardinal Group and for three years following
Termination of Employment regardless of the reason, Awardee agrees not to engage in Triggering Conduct. If Awardee engages in Triggering Conduct during the time period set forth in the preceding sentence or in Competitor Triggering Conduct during
the time period referenced in the definition of “Competitor Triggering Conduct” set forth in Paragraph 4 above, then: 
 (a) any
Restricted Share Units that have not yet vested or that vested within the Look-Back Period (as defined below) with respect to such Triggering Conduct or Competitor Triggering Conduct and have not yet been settled by a payment pursuant to Paragraph 6
hereof shall immediately and automatically terminate, be forfeited, and cease to exist; and 
 (b) Awardee shall, within 30 days following
written notice from the Company, pay to the Company an amount equal to (x) the aggregate gross gain realized or obtained by Awardee resulting from the settlement of all Restricted Share Units pursuant to Paragraph 6 hereof (measured as of the
settlement date (i.e., the market value of the Restricted Share Units on such settlement date)) that have already been settled and that had vested at any time within three years prior to the Triggering Conduct (the “Look-Back Period”),
minus (y) $1.00. If Awardee engages only in Competitor Triggering Conduct, then the Look-Back Period shall be shortened to exclude any period more than one year prior to Awardee’s Termination of Employment, but including any period between
the time of Termination of Employment and the time of Awardee’s engaging in Competitor Triggering Conduct. 
 Awardee may be released
from his or her obligations under this Paragraph 5 if and only if the Administrator (or its duly appointed designee) determines, in writing and in its sole discretion, that such action is in the best interests of the Company. Nothing in this
Paragraph 5 constitutes a so-called “noncompete” covenant. This Paragraph 5 does, however, prohibit certain conduct while Awardee is associated with the Cardinal Group and thereafter and does provide for the forfeiture or repayment of the
benefits granted by this Agreement under certain circumstances, including, but not limited to, Awardee’s acceptance of employment with a Competitor. Awardee agrees to provide the Company with at least 10 days written notice prior to directly or
indirectly accepting employment with, or serving as a consultant or advisor or in any other capacity to, a Competitor, and further agrees to inform any such new employer, before accepting employment, of the terms of this Paragraph 5 and
Awardee’s continuing obligations contained herein. No provision of this Agreement shall diminish, negate or otherwise impact any separate noncompete or other agreement to which Awardee may be a party, including, but not limited to, any of the
Certificates of Compliance with Company Policies and/or the Certificates of Compliance with Company Business Ethics Policies; provided, however, that to the extent that any provisions contained in any other agreement are inconsistent in any manner
with the restrictions and covenants of Awardee contained in this Agreement, the provisions of this Agreement shall take precedence and such other inconsistent provisions shall be null and void. Awardee acknowledges and agrees that the provisions
contained in this Agreement are being made for the benefit of the Company in consideration of Awardee’s receipt of the Restricted Share Units, in consideration of employment, in consideration of exposing Awardee to the Company’s business
operations and confidential information, and for other good and valuable consideration, the adequacy of which consideration is hereby expressly confirmed. Awardee further acknowledges that the receipt of the Restricted Share Units and execution of
this Agreement are voluntary actions on the part of Awardee and that the Company is unwilling to provide the Restricted Share Units to Awardee without including the 

  

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restrictions and covenants of Awardee contained in this Agreement. Further, the parties agree and acknowledge that the provisions contained in Paragraphs 4
and 5 are ancillary to, or part of, an otherwise enforceable agreement at the time the agreement is made. 
 6. Payment. 

(a) Subject to the provisions of Paragraphs 4 and 5 of this Agreement, on the date of vesting of this Award, Awardee shall be entitled to receive from
the Company (without any payment on behalf of Awardee other than as described in Paragraph 11) 5,000 of the Shares represented by such Restricted Share Unit. 
 (b) Subject to the provisions of Paragraphs 4 and 5 of this Agreement, on the six-month anniversary of the first date on which Awardee ceases to be an employee of the Company (unless such cessation does not constitute
a “separation from service” within the meaning of Section 409A(a)(2)(A)(i) of the Code, and the regulations thereunder, in which case the settlement contemplated by this paragraph shall occur on the six-month anniversary of the first
date that does so constitute a “separation from service”), Awardee shall be entitled to receive from the Company (without any payment on behalf of Awardee other than as described in Paragraph 11) the remaining 30,000 Shares represented by
such Restricted Share Unit, if vested, provided, however, that, subject to the next sentence, in the event that such Restricted Share Units vest prior to the applicable Vesting Date as a result of the death of Awardee or as a result of a Change of
Control, Awardee shall be entitled to receive the corresponding Shares from the Company on the date of such vesting. Notwithstanding the proviso of the preceding sentence, if Restricted Share Units vest as a result of the occurrence of a Change of
Control under circumstances where such occurrence would not qualify as a permissible date of distribution under Section 409A(a)(2)(A) of the Code, and the regulations thereunder, and where Code Section 409A applies to such distribution,
such proviso shall not apply and Awardee shall be entitled to receive the corresponding Shares from the Company on the date that would have applied absent such proviso. 
 7. Dividend Equivalents. Awardee shall not receive cash dividends on the Restricted Share Units but instead shall, with respect to each Restricted Share Unit, receive a cash payment from the Company on each
cash dividend payment date with respect to the Shares with a record date between the Grant Date and the settlement of such unit pursuant to Paragraph 6 hereof, such cash payment to be in an amount equal to the dividend that would have been paid on
the Common Share represented by such unit. Cash payments on each cash dividend payment date with respect to the Shares with a record date prior to a Vesting Date shall be accrued until the Vesting Date and paid thereon (subject to the same vesting
requirements as the underlying Restricted Share Units award). 
 8. Holding Period Requirement. If Awardee is classified as an
“officer” of the Company within the meaning of Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended, on the Grant Date, then, as a condition to receipt of the Restricted Share Units, Awardee hereby agrees to hold, until the
first anniversary of the applicable Vesting Date (or, if earlier, the date of Awardee’s Termination of Employment), the Shares issued pursuant to settlement of such units (less any portion thereof withheld in order to satisfy all applicable
federal, state, local or foreign income, employment or other tax). 
 9. Right of Set-Off. By accepting these Restricted Share Units,
Awardee consents to a deduction from, and set-off against, any amounts owed to Awardee by any member of the Cardinal Group from time to time (including, but not limited to, amounts owed to Awardee as wages, severance payments or other fringe
benefits) to the extent of the amounts owed to the Cardinal Group by Awardee under this Agreement. 
  

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 10. No Shareholder Rights. Awardee shall have no rights of a shareholder with respect to the
Restricted Share Units, including, without limitation, Awardee shall not have the right to vote the Shares represented by the Restricted Share Units. 
 11. Withholding Tax. 
 (a) Generally. Awardee is liable and responsible for all taxes owed in
connection with the Restricted Share Units (including taxes owed with respect to the cash payments described in Paragraph 7 hereof), regardless of any action the Company takes with respect to any tax withholding obligations that arise in connection
with the Restricted Share Units. The Company does not make any representation or undertaking regarding the tax treatment or the treatment of any tax withholding in connection with the grant or vesting of the Restricted Share Units or the subsequent
sale of Shares issuable pursuant to the Restricted Share Units. The Company does not commit and is under no obligation to structure the Restricted Share Units to reduce or eliminate Awardee’s tax liability. 
 (b) Payment of Withholding Taxes. Prior to any event in connection with the Restricted Share Units (e.g., vesting or settlement) that the Company
determines may result in any domestic or foreign tax withholding obligation, whether national, federal, state or local, including any employment tax obligation (the “Tax Withholding Obligation”), Awardee is required to arrange for the
satisfaction of the minimum amount of such Tax Withholding Obligation in a manner acceptable to the Company. Unless Awardee elects to satisfy the Tax Withholding Obligation by an alternative means that is then permitted by the Company,
Awardee’s acceptance of this Agreement constitutes Awardee’s instruction and authorization to the Company to withhold on Awardee’s behalf the number of Shares from those Shares issuable to Awardee at the time when the Restricted Share
Units become vested and payable as the Company determines to be sufficient to satisfy the Tax Withholding Obligation. In the case of any amounts withheld for taxes pursuant to this provision in the form of Shares, the amount withheld shall not
exceed the minimum required by applicable law and regulations. The Company shall have the right to deduct from all cash payments paid pursuant to Paragraph 7 hereof the amount of any taxes which the Company is required to withhold with respect to
such payments. 
 12. Beneficiary Designation. Awardee may designate a beneficiary to receive any Shares to which Awardee is entitled
with respect to the Restricted Share Units which vest as a result of Awardee’s death. Notwithstanding the foregoing, if Awardee engages in Triggering Conduct or Competitor Triggering Conduct as herein defined, the Restricted Share Units subject
to such beneficiary designation shall be subject to the Special Forfeiture/Repayment Rules and the Company’s Right of Set-Off or other right of recovery set forth in this Agreement, and all rights of the beneficiary shall be subordinated to the
rights of the Company pursuant to such provisions of this Agreement. Awardee acknowledges that the Company may exercise all rights under this Agreement and the Plan against Awardee and Awardee’s estate, heirs, lineal descendants and personal
representatives and shall not be limited to exercising its rights against Awardee’s beneficiary. 
 13. 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 Restricted Share Units 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. Awardee
acknowledges that the covenants contained in Paragraphs 4 and 5 of this Agreement are 

  

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reasonable in nature, are fundamental for the protection of the Company’s legitimate business and proprietary interests, and do not adversely affect
Awardee’s ability to earn a living in any capacity that does not violate such covenants. The parties further agree that in the event of any violation by Awardee of any such covenants, the Company will suffer immediate and irreparable injury for
which there is no adequate remedy at law. In the event of any violation or attempted violations of the restrictions and covenants of Awardee contained in this Agreement, the Cardinal Group shall be entitled to specific performance and injunctive
relief or other equitable relief, including the issuance ex parte of a temporary restraining order, without any showing of irreparable harm or damage, such irreparable harm being acknowledged and admitted by Awardee, and Awardee hereby waives any
requirement for the securing or posting of any bond in connection with such remedy, without prejudice to the rights and remedies afforded the Cardinal Group hereunder or by law. In the event that it becomes necessary for the Cardinal Group to
institute legal proceedings under this Agreement, Awardee shall be responsible to the Company for all costs and reasonable legal fees incurred by the Company with regard to such proceedings. 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. 
 14. Action by the Administrator. The parties agree that the
interpretation of this Agreement shall rest exclusively and completely within the sole discretion of the Administrator. The parties agree to be bound by the decisions of the Administrator with regard to the interpretation of this Agreement and with
regard to any and all matters set forth in this Agreement. The Administrator may delegate its functions under this Agreement to an officer of the Cardinal Group designated by the Administrator (hereinafter the “Designee”). In fulfilling
its responsibilities hereunder, the Administrator or its Designee may rely upon documents, written statements of the parties or such other material as the Administrator or its Designee deems appropriate. The parties agree that there is no right to
be heard or to appear before the Administrator or its Designee and that any decision of the Administrator or its Designee relating to this Agreement, including, without limitation, whether particular conduct constitutes Triggering Conduct or
Competitor Triggering Conduct, shall be final and binding unless such decision is arbitrary and capricious. 
 15. Prompt Acceptance of
Agreement. The Restricted Share Unit grant evidenced by this Agreement shall, at the discretion of the Administrator, be forfeited if this Agreement is not manually executed and returned to the Company, or electronically executed by Awardee by
indicating Awardee’s acceptance of this Agreement in accordance with the acceptance procedures set forth on the Company’s third-party equity plan administrator’s web site, within 90 days of the Grant Date. 
 16. Electronic Delivery and Consent to Electronic Participation. The Company may, in its sole discretion, decide to deliver any documents related
to the Restricted Share Unit grant under and participation in the Plan or future Restricted Share Units that may be granted under the Plan by electronic means or to request Awardee’s consent to participate in the Plan by electronic means.
Awardee hereby consents to receive such documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company, including the
acceptance of restricted share unit grants and the execution of restricted share unit agreements through electronic signature. 
 17.
Notices. All notices, requests, consents and other communications required or provided under this Agreement to be delivered by Awardee to the Company will be in writing and will be deemed sufficient if delivered by hand, facsimile, nationally
recognized overnight courier, or 

  

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certified or registered mail, return receipt requested, postage prepaid, and will be effective upon delivery to the Company at the address set forth below:

 Cardinal Health, Inc. 
 7000
Cardinal Place 
 Dublin, Ohio 43017 
 Attention: Chief Legal Officer 
 Facsimile: (614) 757-2797 
 All notices, requests, consents and other communications required or provided under this Agreement to be delivered by the Company to Awardee may be delivered by e-mail or in writing and will be deemed sufficient if
delivered by e-mail, hand, facsimile, nationally recognized overnight courier, or certified or registered mail, return receipt requested, postage prepaid, and will be effective upon delivery to the Awardee. 
  

			
	CARDINAL HEALTH, INC.
		
	By:	 	/s/ R. Kerry Clark
		 	R. Kerry Clark
	Its:	 	President and Chief Executive Officer

  

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 ACCEPTANCE OF AGREEMENT 
 Awardee hereby: (a) acknowledges that he or she has received a copy of the Plan, a copy of the Company’s most recent annual report to shareholders and other communications routinely distributed to the
Company’s shareholders, and a copy of the Plan Description dated February 22, 2006 pertaining to the Plan; (b) accepts this Agreement and the Restricted Share Units granted to him or her under this Agreement subject to all provisions
of the Plan and this Agreement, including the provisions in the agreement regarding “Triggering Conduct/Competitor Triggering Conduct” and “Special Forfeiture/ Repayment Rules” set forth in paragraphs 4 and 5 above;
(c) represents that he or she understands that the acceptance of this Agreement through an on-line or electronic system, if applicable, carries the same legal significance as if he or she manually signed the Agreement; (d) represents and
warrants to the Company that he or she is purchasing the Restricted Share Units for his or her own account, for investment, and not with a view to or any present intention of selling or distributing the Restricted Share Units either now or at any
specific or determinable future time or period or upon the occurrence or nonoccurrence of any predetermined or reasonably foreseeable event; and (e) agrees that no transfer of the Shares delivered in respect of the Restricted Share Units shall
be made unless the Shares have been duly registered under all applicable Federal and state securities laws pursuant to a then-effective registration which contemplates the proposed transfer or unless the Company has received a written opinion of, or
satisfactory to, its legal counsel that the proposed transfer is exempt from such registration. 
  

	
	
	/s/ Mark W. Parrish
	Awardee’s Signature
	
	2/8/07
	Date

  

 7First Amendment to the Cardinal Health Deferred Compensation Plan

 Exhibit 10.03 
 Cardinal Health 
 Deferred Compensation Plan 
 Amended and Restated Effective January 1, 2005 
 First Amendment 
 Background Information 
  

	A.	Cardinal Health, Inc. (“Cardinal Health”) established and maintains the Cardinal Health Deferred Compensation Plan (the “Plan”) for the benefit of participants
and their beneficiaries. 

  

	B.	The Human Resources and Compensation Committee of the Board of Directors of Cardinal Health, Inc. (the “Compensation Committee”) oversees and is authorized to amend the
Plan. 

  

	C.	The Compensation Committee has authorized the amendment of the Plan to expand the distribution options under the Plan in accordance with proposed regulations issued under
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and to permit the deferral of certain cash dividend-equivalent payments under the terms of restricted share units agreements. 

  

	D.	Section 7.1 of the Plan permits the amendment of the Plan at any time. 

 Amendment of the Plan 
 The Plan is hereby amended as follows, effective November 7,
2006: 
 1. Section 1.1(h) of the Plan is hereby amended to read as follows: 
 “Compensation. Amounts paid or payable by the Company to an Eligible Employee for a Plan Year which are includable in income for federal tax purposes, including base salary and variable compensation in the
form of commissions and/or bonuses (except as otherwise provided herein). In addition, cash dividend-equivalent payments under restricted share unit award agreements (“RSUs”) may also be deferred hereunder by Eligible Employees who are
Reporting Persons in accordance with procedures established from time to time by the Committee. Notwithstanding the foregoing, the following amounts are excluded from Compensation: (i) other cash or non-cash compensation, expense reimbursements
or other benefits or contributions by the Company to any other employee benefit plan, other than pre-tax salary deferrals into the Qualified Plan or any Code Section 125 plan sponsored by the Company or any of its affiliates; (ii) any
bonus payment if such bonus payment is wholly or partially payable without regard to the attainment of a performance-based goal (i.e., guaranteed); (iii) amounts realized (A) from the exercise of a stock option, (B) when restricted
stock (or property) held by a Participant either becomes freely transferable or is no longer subject to a substantial risk of forfeiture, (C) when the Shares underlying RSUs are payable to a Participant, or (D) from the sale, exchange or
other disposition of stock acquired under a qualified stock option; and (iv) any amounts that are required to be withheld from a Participant’s wages from the Company pursuant to Code Section 3102 to satisfy the Participant’s tax
obligations under Code Section 3101. With respect to Directors, “Compensation” means any and all fees paid for service as a member of the Board, including fees for attendance at meetings or committee meetings, and cash
dividend-equivalent payments under RSUs.” 

 2. Section 3.1 of the Plan is hereby amended by the addition of the following new paragraph at the end thereof:

 “In addition to the Deferred Compensation Credits described above, Reporting Persons who have elected to defer receipt of Shares to be issued under
RSUs awarded on or after November 1, 2006, shall automatically have one hundred percent (100%) of the cash dividend-equivalents that are vested and payable under such RSUs deferred under this Plan. Such amounts shall be referred to as
“Deferred Cash Equivalent Credits.” Deferred Cash Equivalent Credits are always one hundred percent (100%) vested and nonforfeitable but are not eligible for Matching Credits.” 
 3. Section 5.1 of the Plan is hereby amended by the addition of the following new paragraph at the end thereof: 
 “Effective for distribution elections made on or after November 7, 2006, a Participant may elect to receive payment of some or all of the vested amounts
credited to his Account (i) in a single lump sum as of a regular payment processing date in a designated Plan Year that is at least twelve (12) months after the date the election is made, or (ii) if earlier, as of the
Participant’s termination from employment or from the Board due to Retirement, death, Total Disability or any other reason (a “Fixed Date Election”). A Fixed Date Election may apply to a flat dollar amount or to a fixed percentage of
the Participant’s Account, provided that if the value of the Participant’s Account on the payment date elected by the Participant is less than the flat dollar amount elected, the entire Account shall be paid under the Fixed Date Election.
A Participant may have only one Fixed Date Election in effect at a time, which election shall be irrevocable and which may be made only in accordance with procedures established from time to time by the Administrative Committee and in compliance
with all applicable requirements of Code Section 409A. If a Participant retires, dies, suffers a Total Disability, or otherwise terminates employment or membership on the Board before the fixed date elected by the Participant, his Account shall
be distributed in accordance with the election in effect for a distribution due to the reason for termination of employment or board membership (both as to time of payment and form of payment) and the Fixed Date Election shall not apply.”

 4. Section 5.2 of the Plan is hereby amended to replace the existing third sentence thereof with the following: 
 “The Participant may change his election of a Distribution Option pursuant to an election made during the annual deferral election period prior to the beginning of
each Plan Year, provided said election is made at least twelve (12) months prior to the date that payments would have otherwise begun under such option and provided that a Participant may not change a Distribution Option or a distribution date
in a manner that does not comply with Code Section 409A or applicable transition rules thereunder.” 
 5. All other terms and provisions shall
remain unchanged. 
  

			
	CARDINAL HEALTH, INC.
		
	By:	 	/s/ Susan Nelson
	Title:	 	Senior Vice President – Total Rewards
	Date:	 	October 23, 2006

  

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