Document:

EX-10.7.2

 

Exhibit 10.7.2

First Amendment To The Cardinal Health, Inc.

Amended and Restated Management Incentive Plan

     This First Amendment to the Amended and Restated Management Incentive Plan is adopted
effective as of July 1, 2007, pursuant to resolutions of the Human Resources and Compensation
Committee of the Board of Directors (the “Committee”) of Cardinal Health, Inc., an Ohio
corporation, adopted during a meeting held on August 7, 2007. Section 9 of the Amended and
Restated Management Incentive Plan (“Plan”) provides that the Committee may amend the Plan at any
time and that shareholder approval of such amendment will be required only if required by
Applicable Law, as defined in the Plan. In accordance with this authority, the Plan is hereby
amended, effective as of July 1, 2007, to revise the conditions under which Participants in the
Plan may qualify for a prorated payment for a Performance Period following a termination of
employment during such Performance Period. Terms capitalized herein shall have the meaning
ascribed to them in the Plan unless a different meaning is clearly specified herein.

     I. Article 2 of the Plan, “Definitions,” is hereby amended by renumbering the existing Section
2.18 as Section 2.19, and by the addition of a new Section 2.18 and a new Section 2.20, reading as
follows:

     2.18 “Retirement” means termination of employment by a Participant (other than by reason of
death or Disability and other than in the event of Termination for Cause) from the
Company and its subsidiaries after attaining age fifty-five (55) and having at least ten (10) years
of continuous service with the Company and its subsidiaries, including service with a subsidiary of
the Company prior to the time that such subsidiary became a subsidiary of the Company. For
purposes of the age and/or service requirement, the Administrator may, in its discretion, credit a
Participant with additional age and/or years of service.

     2.20 “Termination for Cause” means, unless otherwise determined by the Administrator,
termination of employment from the Company and its subsidiaries on account of any act of fraud or
intentional misrepresentation or embezzlement, misappropriation or conversion of assets of the
Company or any subsidiary, or the intentional and repeated violation of the written policies or
procedures of the Company, provided that for an Employee who is party to an individual severance or
employment agreement defining Cause, except as may be provided in such agreement, “Cause” shall
have the meaning set forth in such agreement. For purposes of this Plan, a Participant’s
termination of employment shall be deemed to be a Termination for Cause if, after the Participant’s
employment has terminated, facts and circumstances are discovered that would have justified, in the
opinion of the Administrator, a Termination for Cause.

     II. The first sentence of Section 5.1 is hereby revised to read as follows: Each
Participant’s Final Bonus shall be paid in cash, in one lump sum, subject to applicable tax and
other authorized withholdings, on the last regular business day occurring on or before the
15th day of the third month after the end of each Performance Period.

     III. Sections 6.1, 6.2 and 6.3 of Article 6, “Termination of Employment,” are hereby amended
and restated in their entirety to read as follows:

     6.1. Termination of Employment Due to Retirement, Death or Disability. In the event a
Participant’s employment is terminated by reason of Retirement, death or Disability during the

 

 

applicable Performance Period, the Final Bonus determined in accordance with Section 4.4 herein
shall be reduced to reflect participation prior to termination only. The Final Bonus, if any,
shall be prorated based upon the length of time that the Participant was employed by the Company
during the Performance Period. In the case of a Participant’s Disability, the employment
termination shall be deemed to have occurred as of the date that the Administrator determines was
the date on which the definition of Disability was satisfied. The Final Bonus thus determined
shall be paid as soon as practicable and reasonable following the end of the Performance Period in
which employment termination occurs, and shall be made at the same time payments are made to
Participants who did not terminate employment during the applicable Performance Period. The right
of the Participant to receive any payment under this Plan will pass to the Participant’s estate in
the event of the Participant’s death.

     6.2. Involuntary Termination of Employment (Not Retirement Eligible). If the
employment of a Participant is terminated by the Company (other than as a Termination for Cause)
during the fourth quarter of the applicable Performance Period, the Final Bonus determined in
accordance with Section 4.4 herein shall be reduced to reflect participation prior to termination
only. The Final Bonus, if any, shall be prorated based upon the length of time that the
Participant was employed by the Company during the Performance Period.

     6.3. Termination of Employment for Other Reasons. In the event a Participant’s
employment is terminated before the fourth quarter of the Performance Period for a reason other
than due to Retirement, death, or Disability, all of the Participant’s rights to any Final Bonus
for that Performance Period shall be forfeited unless otherwise determined by the Administrator in
its sole discretion. If a Participant terminates employment for any other reason prior to the date
the Final Bonus, if any, is paid, all of the Participant’s rights to any Final Bonus for that
Performance Period shall be forfeited. Except as provided in Sections 6.1 and 6.2, only
Participants who are, as of the date the Final Bonus, if any, is paid, either current, active
Employees or current Employees who are on a leave of absence authorized by the Company shall be
entitled to any Final Award earned for the Performance Period.

     IV. All other terms and provisions of the Plan shall remain unchanged.

2EX-10.21.1

 

Exhibit 10.21.1

OUTSIDE DIRECTORS COMPENSATION

Effective February 23, 2006

	 	 	 
	Annual Retainer

	 	$17,500 per quarter, payable
in cash or as otherwise
elected by a non-management
director (an “Outside
Director”) pursuant to the
Deferred Compensation Plan
(“Deferred Plan”).1
	 
	 	 
	Annual Option Grant2

	 	An annual option grant to
acquire common shares equal to
$210,000 divided by the
closing price of the Company’s
common shares on the date the
Company’s Annual Meeting of
Shareholders (“Grant Date
Closing Price”); one year
cliff vest.
	 
	 	 
	Annual Restricted Share Unit 

Grant2

	 	An annual restricted share
unit grant of the number of
restricted share units equal
to $90,000 divided by three,
divided by the grant Date
Closing Price; one year cliff
vest.
	 
	 	 
	Initial Option Grant2

	 	Upon first appointment or
election to the Board, each
Outside Director to receive an
initial option grant to
acquire common shares equal to
$210,000 divided by the
closing price on the grant date; one year
cliff vest.
	 
	 	 
	Initial Restricted Share Unit 

Grant2

	 	Upon first appointment or
election to the Board, each
Outside Director to receive an
initial RSU grant equal to
$90,000 divided by three,
divided by the closing price
on the Grant
date; one year cliff vest.
	 
	 	 
	Non-management Presiding Director Retainer

	 	Additional retainer is $3,750
per quarter, payable in cash
or as elected under Deferred
Plan.
	 
	 	 
	Audit Committee Chair

	 	Additional retainer is $3,750
per quarter, payable in cash
or as elected under Deferred
Plan.
	 
	 	 
	Human Resources and Compensation Committee
Chair

	 	Additional retainer is $2,000
per quarter, payable in cash
or as elected under Deferred
Plan.
	 
	 	 
	Nominating and Governance Committee Chair

	 	Additional retainer is $1,500
per quarter, payable in cash
or as elected under Deferred
Plan
	 
	 	 
	Audit Committee retainer

	 	Additional retainer is $500
per quarter for serving on
Audit Committee, payable in
cash or as elected under
Deferred Plan.
	 
	 	 
	Per meeting fee

	 	Special meeting fee for
attendance at “excess
meetings”: $1,500 for a full
day; $750 for a half day or
less. An “excess meeting” is
a meeting attended after the
Outside Director has attended
a number of meetings equal to
the number of regular
quarterly board meetings, plus
the number of regular
committee meetings associated
with regular quarterly board
meetings, plus two. An excess
meeting excludes
attendance by a non-committee
member and written actions.
	 
	 	 
	 

	 	Prior to payment, any excess
meeting fees must be approved
by the Human Resources and
Compensation Committee of the
Board.
	 
	 	 
	 

	 	Total meeting fees in this
category will not exceed
$25,000 in any fiscal year.
Payable in cash or as elected
under the Deferred
Plan.

 

			
	1	 	The Company reimburses Outside Directors for
reasonable expenses incurred in the course of traveling to and from Company
Board and committee meetings and other Board-related events or Company
business. It also reimburses directors for reasonable expenses of attendance
by a director at one continuing education program a year. On May 2, 2007, the
Board approved an amendment to its director reimbursement policy
to provide that if travel, meals and other reasonable out-of-pocket expenses of
the spouse of a director are at the request and for the benefit of the Company,
with the approval of the Chairman of the Board, the spouse of a director will
be entitled to reimbursement of expenses in accordance with the policy. Other
travel by a spouse of a director is paid for by the director or spouse
individually. The Company provides a tax reimbursement to directors for income
attributed to them arising out of reimbursement of expenses for spousal travel
as provided in the policy.
	 
	2	 	Awards granted pursuant to the Amended
and Restated Outside Directors’ Equity Incentive Plan, as amended.

 

 

	 	 	 
	Ad hoc Committee retainer

	 	When ad hoc committees are
formed to address
extraordinary events, the
Board will determine an annual
retainer to be paid to ad hoc
committee members based upon
expected effort required.
Total fees in this category
will not exceed $25,000 in any
fiscal year. Payable in cash
or as elected under the
Deferred Plan.

2

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