Document:

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                                                                    Exhibit 10-K

                             NONCOMPETE AGREEMENT

           THIS NONCOMPETE AGREEMENT (the "Agreement") is entered into this 2nd
day of January, 2002, by and between Priority Healthcare Corporation, an Indiana
corporation, (the "Company") and Rebecca Shanahan (the "Employee").

                                   Agreement
                                   ---------

           1.   Employment. The parties hereto acknowledge that the terms of the
                ----------
employment of the Employee by the Company are governed by an Employment
Agreement dated as of the date hereof, (the "Employment Agreement"), by and
between the Employee and the Company.

           2.   Restrictive Covenants. In consideration of the mutual promises
                ---------------------
contained herein and in the Employment Agreement, Employee agrees and promises
that for a period of one year after termination of employment with the Company
for any reason other than termination by the Company without cause, in which
event the period shall be six months, employee will not, directly or indirectly,
for Employee or any other person, firm, corporation, entity or business:

           (a)  Compete with Company. Own, manage, operate, control or otherwise
                --------------------
                be in any manner affiliated or connected with, or engage or
                participate in the ownership, management, operation or control
                of (as principal, agent, proprietor, partner, member,
                shareholder, director, trustee, officer, administrator,
                employee, consultant, independent contractor, or otherwise), any
                business or entity which as one of its business activities
                competes directly or indirectly with the Company within any
                county in which the Company does business; or attempt to sell,
                offer or provide to any person or entity which is a customer of
                the Company a product or service substantially similar to
                products or services offered by the Company.

           (b)  Solicit Customers. Divert or take away or attempt to divert or
                -----------------
                take away, call on or solicit or attempt to call on or solicit
                any customers, potential customers, or prospects to which goods
                were sold or services were rendered by Employee while he was an
                employee of the Company.

           (c)  Employees. Induce or influence or attempt to induce or
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                influence, any person who is engaged as an employee, agent,
                independent contractor or otherwise by the Company to terminate
                his or her employment or engagement.
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           3.   Severability. The parties hereto intend that the covenants
                ------------
contained in paragraph 2 shall be construed as a series of separate covenants,
one for each county in which the Company has customers. Except for geographic
coverage, each such separate covenant shall be deemed identical in terms to the
covenants contained in paragraph 2. If, in any judicial proceeding, a court
shall refuse to enforce any of the separate covenants deemed included in this
paragraph, then this unenforceable covenant shall be deemed eliminated from
these provisions for the purpose of those proceedings to the extent necessary to
permit the remaining separate covenants to be enforced.

           4.   Proprietary and Confidential Information. The parties hereto
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acknowledge and agree that proprietary and confidential information means
information or material which is not generally available to or used by others
outside the Company or the utility or value of which is not generally known or
recognized as standard practice, whether or not the underlying details are in
the public domain. Information and material which is considered proprietary and
confidential by the Company includes, but is not limited to, the following:

           (a)  Information and material which relates to the Company's
                purchasing, accounting, merchandising or marketing methods;

           (b)  Information and material related to business plans and methods
                of operations or methods of doing business or relating to
                marketing plans developed or to be developed by the Company;

           (c)  Customer lists, potential customers lists, prospect lists,
                account lists, billing information, salesmen reports, territory
                reports, pricing lists, quotation forms, advertising or
                marketing materials and techniques and lead lists;

           (d)  Any of the information of the type described above which the
                Company obtained from another source and which the Company
                treats as proprietary or designates as confidential, whether or
                not owned or developed by the Company.

           5.   Use of Information. Employee acknowledges and agrees that he is
                ------------------
in a fiduciary relationship with the Company and as a consequence of this
fiduciary relationship and the trust and confidence reposed in the Employee by
the Company, Employee will receive proprietary and confidential information
and/or trade secrets of the Company, as previously defined in this Agreement. In
partial consideration for the mutual promises contained herein, the Employee
agrees not to directly or indirectly divulge, publish, communicate, use to the
detriment of the Company, use for the benefit of any person, firm, corporation,
or business or misuse in any way any such proprietary and confidential
information and/or trade secrets either during or subsequent to employment with
the Company, whether or not conceived, originated, discovered or developed in
whole or in part by Employee.

           6.   Availability of Injunctive Relief. The parties acknowledge that
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compliance with the covenants in paragraphs 2, 4, and 5 is necessary to protect
the business, goodwill and proprietary interests of the Company. The parties
further agree that the remedy at law for breach of any of the provisions of such
covenants is inadequate and that the Company shall be entitled, in addition to
other such remedies as it may have, to injunctive relief for any breach or
threatened breach of paragraphs 2,

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4, and 5 without proof of any actual damages that may have been or may be caused
to the Company by such breach or threatened breach.

           7.   Assignment. Neither this Agreement nor any right or obligation
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created hereunder shall be assignable or delegated by Employee.

           8.   Entire Agreement. This Agreement and the Employment Agreement
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dated the date hereof constitute the entire agreement between the parties hereto
pertaining to the subject matter hereof and supersede all prior and
contemporaneous agreements and understandings of the parties, and there are no
warranties, representations or other agreements between the parties in
connection with the subject matter hereof except as specifically set forth
herein. No supplement, modification, waiver or termination of this Agreement
shall be binding unless executed in writing by the party to be bound thereby. No
waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver or continuing waiver of any other provision hereof.

           9.   Partial Invalidity. In the event one or more of the provisions
                ------------------
contained in this Agreement, or any portion of any such provisions, shall for
any reason be held invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provision
of this Agreement, or any portion of any such provision, but the Agreement shall
be construed as if such invalid, illegal or unenforceable provision, or portion
thereof, had never been contained herein.

           10.  Governing Law. This Agreement and all rights, obligations and
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liabilities arising hereunder shall be construed and enforced in accordance with
the laws of the State of Indiana.

           11.  Titles and Headings. Titles and headings to provisions of this
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Agreement are for the purpose of reference only and shall in no way limit,
define or otherwise affect the interpretation or construction of such
provisions.

           12.  Binding Agreement. The rights and obligations of the Company
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under this Agreement shall inure to the benefit of and shall be binding on the
successors and assigns of the Company.

           13.  No Third Parties. The provisions of this Agreement shall not
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inure to the benefit of any third party who is not a signatory hereto except as
otherwise provided for in paragraph 12.

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           IN WITNESS WHEREOF, the parties have hereto executed this Agreement
as of the day and year first written above.

                                         PRIORITY HEALTHCARE CORPORATION

                                         By:    /s/ Steve Cosler
                                             -----------------------------------
                                                        The "Company"

                                            /s/ Rebecca M. Shanahan
                                         ---------------------------------------
                                                        Rebecca Shanahan

                                                        "Employee"

                                       4<PAGE>

                                                               Exhibit 10-Q (iv)

                            FOURTH AMENDMENT TO THE
                            PROFIT SHARING PLAN OF
                PRIORITY HEALTHCARE CORPORATION AND AFFILIATES

WHEREAS, Priority Healthcare Corporation (the "Company") sponsors the Profit
Sharing Plan of Priority Healthcare Corporation and Affiliates (the "Plan"),
originally effective as of January 1, 1999 as stated in the PRISM Non-
Standardized Prototype Retirement Plan as provided by the Trustee; and

WHEREAS, the Company was a spin-off of Bindley Western Industries, Inc. and as a
part of the spin-off, the common stock of Bindley Western Industries, Inc. was
incorporated with the assets used to create the Plan on January 1, 1999; and

WHEREAS, Bindley Western Industries, Inc. has received a tender offer for its
shares of stock, which are an available Investment Fund for Employee and
Employer Contributions to the Plan, and which by the voting of the shareholders
such tender offer has been accepted; and

WHEREAS, the Trust has received the shares of Cardinal Healthcare in exchange
for the shares of Bindley Western Industries, Inc. and the Company believes that
the Cardinal Healthcare Stock will no longer be appropriate for participant
investment and desires to suspend further investment In the Bindley Western
Industries/Cardinal Healthcare Stock Fund immediately, and

WHEREAS, the Company has determined that it will no longer offer the Bindley
Western Industries, Inc/Cardinal Healthcare Stock Fund as an available
investment in the Plan and that it desires to liquidate the Bindley Western
Industries, Inc./Cardinal Healthcare Stock Fund; and

WHEREAS, the Company has advised its employees that investment in the Bindley
Western Industries, Inc./Cardinal Healthcare Stock Fund will no longer be
possible after February 21, 2001, and that the Participants balances in the
Bindley Western Industries, Inc./Cardinal Healthcare Stock Fund will be
liquidated and automatically be reinvested in the same manner as the Participant
has currently directed their current investment elections and that such balances
may then be redirected by the Participant pursuant to their individual selection
upon receipt by the Plan of the proceeds of the tender offer; and

WHEREAS, the Company desires to amend the Plan, effective as of February 21,
2001, to suspend Employee purchases of Bindley Western Industries, Inc,/Cardinal
Healthcare Stock investments into the named investment fund set forth below:
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      Fund to be suspended:   Bindley Western Industries, Inc.

WHEREAS, the Company directs the Trustee that as soon as practicable after the
effective date of this Amendment and receipt of the amendment by the Trustee,
the Participant's 401(k) account balances held in the Bindley Western
Industries, Inc./Cardinal Healthcare Stock Fund, whether from Participant
directed investments or Employer Contributions, shall be reallocated according
to the then current Participant's investment elections for the balance of their
account balances or, if the Participant has no investment elections on file or
was 100% invested in Bindley Western Industries, Inc./Cardinal Healthcare stock,
then such Participant's balance shall be reallocated to The Victory U.S.
Government Obligations Fund.

NOW THEREFORE,

BE IT RESOLVED, that upon final completion of the tender offer funding to the
Trustee for the tender of the shares of Bindley Western Industries,
Inc./Cardinal Healthcare Stock held in the Plan, the Employer Stock Fund will no
longer be an available investment option in the Plan; and

AND BE IT FURTHER RESOLVED, that effective on the date when the completion of
the funding for the tender offer for all remaining Bindley Western Industries,
Inc./Cardinal Healthcare shares is complete, the provisions of Items B.15.b.
shall be amended to provide as follows:

B. Basic Plan Provisions:
   ...

   15. Investments:
   ...
   b. X  If selected, an Employer Stock Fund shall be available as an Investment
     --- Fund pursuant to the terms of the Basic Plan Document.

               i__ If selected, and an Employer Stock Fund is available as an
                   Investment Fund, Participants will have the right,
                   notwithstanding any other provisions of the Plan, to direct
                   that a portion of the Plan assets held for their benefit and
                   invested in the Employer Stock Fund be diversified pursuant
                   to the provisions of (ss)10.7(F) of the Basic Plan Document.

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AND BE IT FURTHER RESOLVED, that the Company directs that, as soon as
practicable after receipt of this Amendment, the Trustee shall liquidate the
balances held in the Plan in the stock of Cardinal Healthcare and shall, upon
receipt of the proceeds thereof, reallocate Participant balances held in the
Employer Stock Fund among each Participant's current investment elections.

AND BE IT FURTHER RESOLVED, that except as amended herein, all other provisions
of the Profit Sharing Plan of Priority Healthcare Corporation and Affiliates
shall remain effective as set forth in the Adoption Agreement.

Plan Sponsor:  Priority Healthcare Corporation

By: /s/ Barbara J. Luttrell                 Dated  2-21-01
    -----------------------                        -------

Trustee: KeyBank National Association

By: /s/ George M. Newsham                   Dated  2/23/01
    ---------------------                          -------

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