Document:

EX-10.22

Exhibit 10.22

CARDINAL HEALTH, INC.

RESTRICTED SHARES AGREEMENT

     This Agreement is entered into in Franklin Country, Ohio. On [grant date] (the “Grant Date”),
Cardinal Health, Inc., an Ohio corporation (the “Company”), has awarded to [employee name]
(“Awardee”), [# of shares] common shares, without par value, of the Company (the “Restricted
Shares”). The Restricted Shares 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 Shares 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. [CLIFF ALTENATIVE: The Restricted Shares shall vest on the [     ]
anniversary of the Grant Date (the “Vesting Date”), subject to the provisions of this agreement,
including those relating to the Awardee’s continued employment with the Company and its Affiliates
(collectively, the “Cardinal Group”).] [INSTALLMENT ALTERNATIVE: The Restricted Shares shall vest
in [     ] installments, which shall be as nearly equal as possible, on the first [     ]
anniversaries of the Grant Date (each a “Vesting Date” with respect to the portion of the
Restricted Shares scheduled to vest on such date), subject in each case to the provisions of this
Agreement, including those relating to the Awardee’s continued employment with the Company and its
Affiliates (collectively, the “Cardinal Group”).] Notwithstanding the foregoing, in the event of a
Change of Control prior to Awardee’s Termination of Employment, the Restricted Shares shall vest in
full.

     2. Transferability. Prior to the applicable vesting of a Restricted Share, Awardee
shall not be permitted to sell, transfer, pledge, assign or otherwise encumber the then unvested
Restricted Share, except as otherwise provided in Paragraph 3 of this Agreement.

     3. Termination of Employment.

          (a) General. Except as set forth below, if a Termination of Employment occurs prior
to the vesting of a Restricted Share, such Restricted Share shall be forfeited by Awardee.

          (b) Death or Disability. If a Termination of Employment occurs prior to the vesting
in full of the Restricted Shares by reason of Awardee’s death or Disability, but at least 6 months
from the Grant Date, then the restrictions with respect to any unvested Restricted Shares shall
immediately lapse and such Restricted Shares shall vest in full and shall not be forfeited.

          (c) Retirement. If a Termination of Employment occurs prior to the vesting in full of
the Restricted Shares by reason of the Awardee’s Retirement, but at least 6 months from the Grant
Date, then a Ratable Portion of each installment of the Restricted Shares that would have vested on
each future Vesting Date shall immediately vest and not be forfeited. Such Ratable Portion shall,
with respect to the applicable installment, be an amount equal to such installment of the
Restricted Shares scheduled to vest on the applicable Vesting Date multiplied by a fraction, the
numerator of which shall be the number of days from the Grant Date through the date of such
termination, and the denominator of which shall be the number of days from the Grant Date through
such Vesting Date. For purposes of this Agreement and this Award under the Plan, “Retirement”
shall refer to Age 55 Retirement, which 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 Affiliates (a) after attaining age fifty-five (55), and (b) having at least ten
(10) years of continuous service with the Company and its Affiliates, including service with an
Affiliate of the Company prior to the time that such Affiliate became an Affiliate 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.

     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 Cardinal Group any confidential information,
trade secrets or other business sensitive information or material concerning the Cardinal Group;
violation of Company policies, including but not limited to conduct which would constitute a breach
of any certificate of compliance or similar attestation/certification 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 Shares that have not yet vested shall immediately and automatically
terminate, be forfeited, and shall 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 vesting of all Restricted Shares, measured as of the date of vesting (i.e., the market
value of the Restricted Shares on the date of vesting), that have already 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 Awardee’s 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

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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 certificate of compliance or similar attestation/certification
signed by Awardee; 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 Shares, 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 Shares
and execution of this Agreement are voluntary actions on the part of Awardee and that the Company
is unwilling to provide the Restricted Shares to Awardee without including the 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. Right of Set-Off. By accepting these Restricted Shares, 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.

     7. Shareholder Rights and Restrictions. Except with regard to the disposition of
Restricted Shares and the receipt of dividends, Awardee shall generally have all rights of a
shareholder with respect to the Restricted Shares from the Grant Date, including, without
limitation, the right to vote such Restricted Shares, but subject, however, to those restrictions
in this Agreement or in the Plan. Dividends with respect to the Restricted Shares shall be accrued
until the Vesting Date for such Restricted Shares and paid thereon (subject to the same vesting
requirements as the underlying Restricted Share award). Any additional Shares which the Awardee
may become entitled to receive by virtue of a merger or reorganization in which the Company is the
surviving corporation or any other change in capital structure shall be subject to the same vesting
requirements and restrictions set forth above.

     8. Withholding Tax.

     (a) Generally. Awardee is liable and responsible for all taxes owed in connection
with the Restricted Shares, regardless of any action the Company takes with respect to any tax
withholding obligations that arise in connection with the Restricted Shares. The Company does not
make any representation or undertaking regarding the tax treatment or treatment of any tax
withholding in connection with the grant or vesting of the Restricted Shares or the subsequent sale
of the Restricted Shares. The Company does not commit and is under no obligation to structure the
Restricted Shares to reduce or eliminate Awardee’s tax liability.

     (b) Payment of Withholding Taxes. Prior to any event in connection with the
Restricted Shares (e.g., vesting) 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

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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 Restricted Shares when the Restricted
Shares become vested 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.

     9. Governing Law/Venue for Dispute Resolution/Costs and Legal Fees. 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 superseded 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 Shares 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 exclusively 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 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 any other 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.

     10. 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.

     11. Prompt Acceptance of Agreement. The Restricted Shares 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

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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.

     12. Electronic Delivery and Consent to Electronic Participation. The Company may, in
its sole discretion, decide to deliver any documents related to the Restricted Shares grant under
and participation in the Plan or future Restricted Shares 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 grants and the
execution of restricted share agreements through electronic signature.

     13. 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
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.

     14. Employment Agreement, Offer Letter or Other Arrangement. To the extent a written
employment agreement, offer letter or other arrangement (“Employment Arrangement”) that was
approved by the Human Resources and Compensation Committee or the Board of Directors or that was
approved in writing by an officer of the Company pursuant to delegated authority of the Human
Resources and Compensation Committee provides for greater benefits to Awardee with respect to
vesting of the Award on Termination of Employment, than provided in this agreement or in the plan,
then the terms of such Employment Arrangement with respect to vesting of the Award on Termination
of Employment by reason of such specified events shall supersede the terms hereof to the extent
permitted by the terms of the plan under which the Award was made.

	 	 	 	 	 	 	 
	 	 	CARDINAL HEALTH, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	     
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	     

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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 [date of Plan Description],
pertaining to the Plan; (b) voluntarily and knowingly accepts this Agreement and the Restricted
Shares 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 Shares for his or her own account, for investment, and not with a view to or any present
intention of selling or distributing the Restricted Shares 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 Restricted Shares shall be
made unless the Restricted 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. 

	 	 	 	 	 
	

	[ 	     
 

Awardee’s Signature
	 	     
	 
	 	 	 	 
	 

	 	 

Date]
	 	     

6EX-10.37

Exhibit 10.37

CARDINAL HEALTH, INC.

NONQUALIFIED STOCK OPTION AGREEMENT

Dollars at Work*:

Grant Date:

Exercise Price:

Grant Vesting Date:

Grant Expiration Date:

Cardinal Health, Inc., an Ohio corporation (the “Company”), has granted to [employee name]
(“Grantee”), an option (the “Option”) to purchase [# of shares] common shares, without par value,
of the Company (the “Shares”) for a total purchase price of      , (i.e., the equivalent
of [stock price] for each full Share). The Option has been granted under the Cardinal Health, Inc.
Broadly-based Equity Incentive Plan, as amended (the “Plan”), and will include and be subject to
all provisions of the Plan, which are incorporated herein by reference, and will be subject to the
provisions of this agreement. Capitalized terms used in this agreement which are not specifically
defined will have the meanings ascribed to such terms in the Plan. This Option shall be
exercisable at any time on or after
and prior to.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	     
	Robert D. Walter
	 	 
	Chairman and CEO	 	 

 

* Dollars at Work and total purchase price may vary due to rounding (up to the dollar amount of one
full Share).

1. Method of Exercise and Payment of Price. 

 

 

(a) Method of Exercise. At any time when the Option is exercisable under the Plan and this
agreement, the Option may be exercised from time to time by written notice to the Company which
will:

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

     (ii) if the Option 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
Option under the Plan and all applicable laws and regulations.

(b) Payment of Price. The full exercise price for the Option shall be paid to the Company
as provided in the Plan.

2. Transferability. The Option shall be transferable (I) at Grantee’s death, by Grantee by
will or pursuant to the laws of descent and distribution, and (II) by Grantee during Grantee’s
lifetime, without payment of consideration, to (a) the spouse, former spouse, parents, stepparents,
grandparents, parents-in-law, siblings, siblings-in-law, children, stepchildren, children-in-law,
grandchildren, nieces or nephews of Grantee, or any other persons sharing Grantee’s household
(other than tenants or employees) (collectively, “Family Members”), (b) a trust or trusts for the
primary benefit of Grantee or such Family Members, (c) a foundation in which Grantee or such Family
Members control the management of assets, or (d) a partnership in which Grantee or such Family
Members are the majority or controlling partners; provided, however, that subsequent transfers of
the transferred Option shall be prohibited, except (X) if the transferee is an individual, at the
transferee’s death by the transferee by will or pursuant to the laws of descent and distribution,
and (Y) without payment of consideration to the individuals or entities listed in subparagraphs
II(a), (b) or (c), above, with respect to the original Grantee. The Human Resources and
Compensation Committee of the Board of Directors of the Company (the “Committee”) may, in its
discretion, permit transfers to other persons and entities as permitted by the Plan. Neither a
transfer under a domestic relations order in settlement of marital property rights nor a transfer
to an entity in which more than 50% of the voting interests are owned by Grantee or Family Members
in exchange for an interest in that entity shall be considered to be a transfer for consideration.
Within 10 days of any transfer, Grantee shall notify the Stock Option Administrator of the Company
in writing of the transfer. Following transfer, the Option shall continue to be subject to the
same terms and conditions as were applicable immediately prior to transfer and, except as otherwise
provided in the Plan or this agreement, references to the original Grantee shall be deemed to refer
to the transferee. The events of termination of employment of Grantee provided in paragraph 3
hereof shall continue to be applied with respect to the original Grantee, following which the
Option shall be exercisable by the transferee only to the extent, and for the periods, specified in
paragraph 3. The Company shall have no obligation to notify any transferee of Grantee’s
termination of employment with the Company for any reason. The conduct prohibited of Grantee in
paragraphs 5 and 6 hereof shall continue to be prohibited of Grantee following

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 transfer to the same
extent as immediately prior to transfer and the Option (or its economic value, as applicable) shall
be subject to forfeiture by the transferee and recoupment from Grantee to the same extent as would
have been the case of Grantee had the Option not been transferred. Grantee shall remain subject to
the recoupment provisions of paragraphs 5 and 6 of this agreement and tax withholding provisions of
Section 10(d) of the Plan following transfer of the Option.

3. Termination of Relationship.

(a) Termination by Death. If Grantee’s employment by the Company and its subsidiaries
(collectively, the “Cardinal Group”) terminates by reason of death, then, unless otherwise
determined by the Committee within 60 days of such death, any unvested portion of the Option shall
vest upon and become exercisable in full from and after the 60th day after such death. The Option
may thereafter be exercised by any transferee of Grantee, if applicable, or by the legal
representative of the estate or by the legatee of Grantee under the will of Grantee for a period of
one year (or such other period as the Committee may specify at or after grant or death) from the
date of death or until the Grant Expiration Date, whichever period is shorter.

(b) Termination by Reason of Retirement or Disability. If Grantee’s employment by the
Cardinal Group terminates prior to the Grant Vesting Date by reason of retirement or disability
(each as defined in the Plan), then, unless otherwise determined by the Committee within 60 days of
such retirement or disability, a Ratable Portion (defined below) of the Option will vest on the
Grant Vesting Date. Such “Ratable Portion” shall be an amount equal to the number of Shares the
subject of the Option, multiplied by a fraction the numerator of which shall be the number of full
months between the Grant Date and the date of retirement or disability, and the denominator of
which shall be the number of full months from the Grant Date to the Grant Vesting Date. The Option
may be exercised after the Grant Vesting Date by Grantee (or any transferee, if applicable) until
the earlier of the fifth anniversary of the date of such retirement or disability or the Grant
Expiration Date (the “Exercise Period”); provided, however, that any vesting that would otherwise
occur during the 60-day period beginning immediately after such retirement or disability shall not
occur until the end of such 60-day period. If Grantee has at least 15 years of service with the
Cardinal Group at the time of retirement, the Option may be exercised after the Grant Vesting Date
by Grantee (or any transferee, if applicable) until the Grant Expiration Date. Notwithstanding the
foregoing, if Grantee dies after retirement or disability but before the expiration of the Exercise
Period, unless otherwise determined by the Committee within 60 days of such death, the Ratable
Portion of the Option shall vest upon, and the Option may be exercised by any transferee of the
Option, if applicable, or by the legal representative of the estate or by the legatee of Grantee
under the will of Grantee from and after, the 60th day after such death, for a period of one year
(or such other period as the Committee may specify at or after grant or death) from the date of death or
until the expiration of the Exercise Period, whichever period is shorter.

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(c) Other Termination of Employment. If Grantee’s employment by the Cardinal Group
terminates for any reason other than death, retirement or disability (subject to Section 7 of the
Plan regarding acceleration of the vesting of the Option upon a Change of Control), any unexercised
portion of the Option which has not vested on such date of termination will automatically terminate
on the date of such termination. Unless otherwise determined by the Committee at or after grant or
termination, Grantee (or any transferee, if applicable) will have 90 days (or such other period as
the Committee may specify at or after grant or termination) from the date of termination or until
the Grant Expiration Date, whichever period is shorter, to exercise any portion of the Option that
is then vested and exercisable on the date of termination; provided, however, that if the
termination was for Cause, as determined by the Committee, the Option may be immediately canceled
by the Committee (whether then held by Grantee or any transferee).

4. Restrictions on Exercise. The Option is subject to all restrictions in this agreement
and/or in the Plan. As a condition of any exercise of the Option, the Company may require Grantee
or his or her transferee or successor to make any representation and warranty to comply with any
applicable law or regulation or to confirm any factual matters (including Grantee’s compliance with
the terms of paragraphs 5 and 6 of this agreement or any employment or severance agreement between
any member of the Cardinal Group and Grantee) reasonably requested by the Company.

5. Triggering Conduct/Competitor Triggering Conduct. As used in this agreement,
“Triggering Conduct” shall include disclosing or using in any capacity other than as necessary in
the performance of duties assigned by 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 Grantee; 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 the termination of Grantee’s employment with the Cardinal Group; any action by
Grantee 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 Grantee; 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 Grantee’s
employment or within one year following Grantee’s termination of employment with the Cardinal
Group, 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 Grantee has been introduced to trade secrets, confidential information or business
sensitive information

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during Grantee’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.

6. Special Forfeiture/Repayment Rules. For so long as Grantee continues as an employee
with the Cardinal Group and for three years following Grantee’s termination of employment with the
Cardinal Group regardless of the reason, Grantee agrees not to engage in Triggering Conduct. In
addition, Grantee agrees not to engage in Competitor Triggering Conduct during the time period set
forth in paragraph 5 above. If Grantee engages in Triggering Conduct during the time period set
forth in the first sentence of this paragraph 6 or in Competitor Triggering Conduct during the time
period set forth in paragraph 5 above, then:

(a) the Option (or any part thereof that has not been exercised) shall immediately and
automatically terminate, be forfeited, and shall cease to be exercisable at any time; and

(b) Grantee shall, within 30 days following written notice from the Company, pay the Company an
amount equal to the gross option gain realized or obtained by Grantee or any transferee resulting
from the exercise of such Option, measured at the date of exercise (i.e., the difference between
the market value of the Shares underlying the
Option on the exercise date and the exercise price paid for such Shares underlying the Option),
with respect to any portion of the Option that has already been exercised at any time within three
years prior to the Triggering Conduct (the “Look-Back Period”), less $1.00. If Grantee engages
only in Competitor Triggering Conduct, then the Look-Back Period shall be shortened to exclude any
period more than one year prior to Grantee’s termination of employment with the Cardinal Group, but
including any period between the time of Grantee’s termination and engagement in Competitor
Triggering Conduct. Grantee may be released from Grantee’s obligations under this paragraph 6 only
if the Committee (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 6
constitutes a so-called “noncompete” covenant. This paragraph 6 does, however, prohibit certain
conduct while Grantee 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, Grantee’s acceptance of employment with a Competitor. Grantee
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 6 and Grantee’s continuing obligations contained herein. No provisions of
this agreement shall diminish, negate or otherwise impact any separate noncompete or other
agreement to which Grantee 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 Grantee contained
in this agreement, the provisions of this agreement shall take precedence and such other
inconsistent

5

 

provisions shall be null and void. Grantee acknowledges and agrees that the
restrictions contained in this agreement are being made for the benefit of the Company in
consideration of Grantee’s receipt of the Option, in consideration of employment, in consideration
of exposing Grantee 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. Grantee further acknowledges that the receipt of the Option and execution of this
agreement are voluntary actions on the part of Grantee and that the Company is unwilling to provide
the Option to Grantee without including the restrictions and covenants of Grantee contained in this
agreement. Further, the parties agree and acknowledge that the provisions contained in paragraphs
5 and 6 are ancillary to, or part of, an otherwise enforceable agreement at the time the agreement
is made.

7. Right of Set-Off. By accepting this Option, 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.

8. 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 Option 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. Grantee
acknowledges that the covenants contained in paragraphs 5 and 6 of this agreement are reasonable in
nature, are fundamental for the protection of the Company’s legitimate business and proprietary
interests, and do not adversely affect Grantee’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
Grantee 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 Grantee 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 Grantee, and Grantee 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, Grantee 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

6

 

 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.

9. Action by the Committee. The parties agree that the interpretation of this agreement
shall rest exclusively and completely within the good faith province and discretion of the
Committee. The parties agree to be bound by the decisions of the Committee with regard to the
interpretation of this agreement and with regard to any and all matters set forth in 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. The parties agree that there is no right to be heard or to appear before the
Committee or its designee and that any decision of the Committee 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.

10. Prompt Acceptance of Agreement. The Option 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.

7

 

ACCEPTANCE OF AGREEMENT

Grantee hereby: (a) acknowledges receiving a copy of the Plan, which has either been previously
delivered or is provided with this agreement, and represents that he or she is familiar with and
understands all provisions of the Plan and this agreement; and (b) voluntarily and knowingly
accepts this agreement and the Option granted to him or her under this agreement subject to all
provisions of the Plan and 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 and a copy of the Plan Description dated November 17, 2003 pertaining to the Plan.

	 	 	 	 	 
	 

	 	 

Signature
	 	     
	 
	 	 	 	 
	 

	 	 

Print Name
	 	     
	 
	 	 	 	 
	 

	 	 

Grantee’s Social Security Number
	 	     
	 
	 	 	 	 
	 

	 	 

Date
	 	     

8

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