Document:

OCR Q1 14 Ex 10.1

Exhibit 10.1

SEPARATION AND GENERAL RELEASE AGREEMENT
THIS SEPARATION AND GENERAL RELEASE AGREEMENT (this “Agreement”) is made as of February 27, 2014 by OMNICARE, INC., a corporation organized and existing under the laws of the State of Delaware (the “Company”), and RANDALL CARPENTER (“Executive”), collectively referred to as the “Parties.” 
RECITALS:
WHEREAS, Executive is the Senior Vice President, Chief Information Officer for the Company;
WHEREAS, Executive and the Company were parties to a certain Employment Agreement dated March 25, 2011, which expired on May 2, 2013 (the “Employment Agreement”);
WHEREAS, Executive is currently an at-will employee of the Company; 
WHEREAS, Executive and the Company are parties to a certain Senior Executive Severance Plan dated April 26, 2013 (the “Severance Plan”);
WHEREAS, Executive and the Company are parties to a Performance Restricted Stock Unit Award Agreement and several other Award Agreements by letters dated February 22, 2013; April 30, 2012; and May 2, 2011 (collectively, the “Awards”);
WHEREAS, Executive and the Company mutually agree that Executive’s employment will terminate on March 28, 2014 and that he has the opportunity to remain employed during the Transition Period (as defined below) to assist with the transition of certain responsibilities and tasks related to the Company’s information systems;
 WHEREAS, subject to the conditions herein, should Executive remain employed during the Transition Period, when his employment ends Executive will be entitled to the payments and benefits set forth in Section 3 of this Agreement if at that time he executes and does not revoke his signature to the additional General Release attached as Exhibit B hereto (the “Release”);
WHEREAS, with the Parties’ execution of this Agreement, the obligations of the Company, if any, with respect to the Employment Agreement, Severance Plan, and Awards will terminate; and
WHEREAS, the Parties wish to settle their mutual rights and obligations arising from such separation from employment subject to the terms and conditions as hereinafter set forth. 
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Parties hereto, the Parties agree as follows:
1.    Termination of Omnicare Agreements.  Except as provided in Section 8 of this Agreement, the Parties agree that as of the date on which this Agreement is fully executed, the Employment Agreement, Severance Plan, Awards, and all other contracts or agreements existing between Executive and the Company (collectively, the “Omnicare Agreements”) will terminate (the “Omnicare Agreements Termination Date”).  This Agreement, and any exhibits hereto, shall stand in the place of the Omnicare Agreements and constitute the only contractual relationship between the Parties. 
2.    Termination of Employment.   
(a)    The Parties intend that Executive shall remain employed with the Company in order to assist with the transition of responsibilities and tasks within the information services function (the “Transition Period”).  The Parties agree that Executive’s employment with the Company will end no later than the date that the Transition Period is complete (the “Employment Termination Date”).  As of the date of this Agreement, the Parties anticipate that the Transition Period will be completed and the Employment Termination Date will be March 28, 2014.  Executive agrees that he must sign and not revoke his signature to the attached Release in order to be entitled to the benefits set forth in Section 3 of this Agreement.  
(b)     Executive agrees that until his Employment Termination Date he shall perform those tasks, and either be present at the Company’s offices or be available, as directed by the Chief Executive Officer and/or President and Chief Operating Officer or their designee and thereby contribute toward a meaningful transition of his duties, including IT, client, customer, and other business relationships.  As part of such transition, (on or before the Employment  

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Termination Date), Executive shall: (i) provide to the Chief Executive Officer and/or President and Chief Operating Officer or their designee in a format directed, a plan for the transition of IT and all other duties and business relationships under Executive’s control and responsibility to a Company representative as designated by the Chief Executive Officer and/or Chief Operating Officer; (ii) fully cooperate as requested in calling clients and communicating Omnicare’s message (to both clients and employees) as provided to him by the Chief Executive Officer and/or President and Chief Operating Officer or their designee to effectuate a smooth transition; and (iii) provide to the Chief Executive Officer and/or President and Chief Operating Officer or their designee all of Executive’s IT, operational, institutional and business knowledge and all of the customer and contractual information known by Executive that relate to the performance of Executive’s duties for the Company.   Executive shall also participate in the interview referred to in Section 7 (a) below.  
(c)    Executive shall also make himself available after the Employment Termination Date, from time to time as needed and provide information and assistance to the Company and its affiliates that relate to his prior positions with and work conducted on behalf of the Company and its affiliates.  Such assistance shall include, but not be limited to providing the Chief Executive Officer and/or President and Chief Operating Officer or their designee all of Executive’s operational, institutional, IT and  business knowledge and all of the customer and contractual information known by Executive that relate to the performance of Executive’s duties for the Company.  Executive shall not remove, copy, or utilize any of the Company’s files, memoranda, documents, records, electronic records, or software except as in the interest of the Company in the performance of the tasks he is to perform pursuant to this Section 2(c).                            
3.    Separation Benefits.  Subject to Executive’s execution of this Agreement on the date hereof and the non-revocation of such signature, should Executive remain employed through the Transition Period and execute within three (3) business days following the Employment Termination Date the Release attached as Exhibit B and not revoke his signature to the Release, the Company shall provide Executive with the following benefits:  
(a)    Severance.  The Parties understand that the Executive’s termination of employment with the Company will be treated as a “Qualifying Termination,” as defined by the Severance Plan.  Accordingly, the Company shall pay the Executive an aggregate severance amount of Six Hundred, Twenty-Two Thousand and Eight Hundred Dollars ($622,800) (the “Severance Amount”), in cash, payable ratably for eighteen (18) months in accordance with the Company’s standard payroll practices.  Such eighteen (18) month period will begin within fourteen (14) days following the expiration of the seven (7) day revocation period set forth in the Release (Exhibit B). 
(b)    Pro-Rata Bonus.  For the avoidance of doubt, the Parties agree that Executive is not entitled to any Pro-Rata bonus under the Company’s Annual Incentive Plan, or any other plan or policy, upon the termination of his employment or in the future. 
(c)    Vesting of Stock Awards.  The 10,000 shares of restricted stock granted to Executive on May 2, 2011 but not yet vested or exercisable shall immediately become fully vested on the Omnicare Agreements Termination Date and will thereafter be freely transferable (subject to any restrictions under applicable securities law or the Company’s insider trading policy for senior executives).  Further, the 20,625 shares of restricted stock granted to Executive on April 30, 2012 but not yet vested or exercisable shall immediately become fully vested on the Omnicare Agreements Termination Date and will thereafter be freely transferable (subject to any restrictions under applicable securities law or the Company’s insider trading policy for senior executives).
(d)    Welfare Benefits.   To the extent permitted by applicable law, and provided the Company is able to provide such benefits without the imposition on the Company of any tax or penalty, if Executive timely elects and pays for continuation coverage under the Company’s group health plan in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company will reimburse Executive for the Company’s portion (as in effect from time to time for active employees of the Company) of the premium for such coverage for Executive and his eligible dependents for eighteen (18) months; provided, however, that (i) if the Company determines that it cannot continue such payments without penalties or adverse tax consequences to the Company, the Company shall pay directly to Executive a lump-sum cash amount equal to the then-unpaid amount of the Company’s portion of the premium for such coverage, provided that such cash payment does not result in any such penalties or adverse tax consequences and (ii) in the event Executive obtains other employment that offers substantially similar or more favorable benefits, taken as a whole, such premium payments by the Company or other rights under this Section 3(d) shall immediately cease.     

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(e)    Outplacement Services.  The Company shall reimburse Executive up to Ten Thousand Dollars ($10,000) for the Executive Transition program with Lee Hecht Harrison.   All expenses for the Executive Transition program will be billed directly to Company.  
(f)      Ayco.  Executive shall be entitled to receive services from The Ayco Co., LP through calendar year 2014.
(g)    Consequences of Revocation of Release.  If Executive’s signature to this Agreement is revoked prior to the expiration of the seven (7) day revocation period set forth in Section 10(b), then any payments, benefits or rights provided pursuant to Section 3 of this Agreement shall be forfeited, and upon such revocation, any of the Company’s obligations under this Agreement shall be null and void ab initio, and the Omnicare Agreements shall in any event terminate.  If Executive’s signature to the General Release (Exhibit B) is revoked prior to the expiration of the seven (7) revocation period set forth in the Release, then any payments, benefits or rights provided pursuant to Section 3 shall be forfeited.  In the event the General Release (“Exhibit B”) is revoked, Executive’s employment shall in any event cease as of the Employment Termination Date, and upon such revocation, any of the Company’s obligations under this Agreement shall be null and void ab initio, and the Omnicare Agreements shall in any event terminate.
4.    Benefits Otherwise Due to Executive.
(a)    Accrued Salary/Vacation Time/Business Expenses.  Following the separation of Executive’s employment, Executive shall be entitled to receive from the Company Executive’s accrued but unpaid base salary through the date he separates from his employment.  Executive shall also be entitled to his accrued and unused PTO through the date he separates from his employment, which the Parties agree will be no more than Seventeen Thousand, Seven Hundred and Sixty Dollars ($17,760), representing 88.97 hours of PTO, and any unreimbursed business expenses through the date he separates from his employment.  
(b)    Other Benefits.    Following the separation of his employment, Executive will be paid any amount due under any other welfare and pension benefit plan of the Company in accordance with the terms of each such plan and applicable law.  Except as specifically provided in this Agreement, Executive will not be due any other payments or benefits from the Company in connection with the separation of Executive’s employment, including, without limitation, any payments under any formal or informal benefit or severance plan of the Company or any equity or cash-based award agreement.
5.    Other Company Stock and Relocation Expenses.  To avoid any confusion, the Parties acknowledge and agree that:
(a)    As of the date of this Agreement, Executive has been fully reimbursed for all relocation expenses incurred as a result of Executive’s transition/relocation to Omnicare and is not entitled to any additional compensation associated with Executive’s relocation/transition.
(b)    The 4,693 restricted shares of common stock granted to Executive in the Award Agreement letter dated February 22, 2013 but not yet vested or exercisable shall be forfeited on the Employment Termination Date.
(c)    The 7,039 performance stock units granted to Executive in the Performance Restricted Stock Unit Award Agreement but not yet vested or exercisable shall be forfeited on the Employment Termination Date. 
(d)    The 1,173 claw-back performance stock units granted to Executive and referred to as “Claw-Back Shares” in the Performance Restricted Stock Unit Award Agreement shall be forfeited on the Employment Termination Date.
     (e)    The 840 stock options granted to Executive in the Stock Plus Program but not yet vested or exercisable shall automatically vest per the terms of the Stock Plus Program plan.  
(f)    Executive has satisfied all repayment obligations pertaining to his relocation expenses. The Company is not entitled to any additional payments from Executive concerning his relocation.
6.    No Consideration Absent Execution of this Agreement and No Additional Payment Owed.  Executive understands and agrees that Executive would not receive the monies or benefits specified in Section 3 of this Agreement except for Executive’s execution of and non-revocation of Executive’s signature to this Agreement and the fulfillment of the promises contained herein, and Executive’s execution of and non-revocation of Executive’s 

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signature to the Release attached as Exhibit B and the fulfillment of the promises contained therein.  Except as provided in Section 4, Executive shall not be due any payments or benefits from the Company in connection with Executive’s employment or the termination of his employment.  Executive further acknowledges and agrees that the payments reflected in Section 3 of this Agreement include payment for other severance or salary continuation obligations due from the Company, if any, and that Executive is owed no additional payment under any plan, agreement or policy outside of the payments provided for in this Agreement.
7.    Cooperation.  
(a)    In consideration for the payments and benefits to Executive hereunder, Executive hereby agrees that Executive shall reasonably cooperate with the Company and its affiliates and provide information and assistance to the Company and its affiliates that relate to his prior positions with and work conducted on behalf of the Company and its affiliates.  Such assistance shall include, but not be limited to providing the Chief Executive Officer and/or President and Chief Operating Officer or their designee all of Executive’s operational, institutional, IT and  business knowledge and all of the customer and contractual information known by Executive that relate to the performance of Executive’s duties for the Company.  In connection with Executive's cooperation duties and responsibilities under this Section 7, Executive shall provide, within fifteen (15) days following the execution of this document by both Parties, an exit interview with an individual or individuals designated by the Company.  Executive hereby represents and warrants that during such exit interview Executive shall provide a thorough and comprehensive description of all facts known to him personally, to the full extent of Executive’s knowledge or belief, that the Company or any of the Releasees (as defined herein) has violated or is currently in violation of any federal or state law, regulation, standard, requirement, or Corporate Compliance Program (specifically including but not limited to the Federal False Claims Act, 31 U.S.C. § 3729 et seq., or any state law equivalent, the Civil Monetary Penalties Law, 42 U.S.C. § 1320a-7a, the Program Fraud Civil Remedies Act, 31 U.S.C. §§ 3801-3812, or the Federal Anti-Kickback Statute, 42 U.S.C. § 1320a-7b et seq.).
(b)    Executive further agrees to assist the Company and its affiliates with respect to all reasonable requests to provide documents, testify, or otherwise assist in connection with any legal proceeding or matter relating to the Company and its affiliates, including but not limited to, any Federal, state or local audit, proceeding or investigation, other than proceedings relating to the enforcement of this Agreement or other proceedings in which the Executive is a named party whose interests are adverse to those of the Company.  Executive also hereby consents to testify on behalf of the Company should the Company designate him to testify pursuant to a subpoena served on the Company pursuant to Rule 30(b)(6) of the Federal Rules of Civil Procedure or any   similar state or agency rule.  All such requests to provide services, including any subpoenas, shall be scheduled with good faith consideration for Executive’s personal, employment, and other obligations.  The Company shall reimburse Executive for all reasonable travel, lodging and other similar expenses incurred in connection with fulfilling his obligations under this Section 7(b).
(c)    Executive hereby agrees that he shall notify the Company promptly (and in any event within two (2) business days) if he is contacted in connection with any governmental investigation that may concern the Company or its affiliates and, without limitation of the foregoing, shall forward to the Company’s General Counsel, by overnight delivery, any subpoena or other document received by him in connection with any such matter within two business days of receipt. 
(d)    Executive hereby agrees that he shall notify the Company promptly (and in any event within two (2) business days) if he is contacted in connection with any litigation or proceeding that may concern the Company or its affiliates and, without limitation of the foregoing, shall forward to the Company’s General Counsel, by overnight delivery, any subpoena or other document received by him in connection with any such matter within two (2) business days of receipt.
(e)    Executive acknowledges and agrees that he is not aware of any potential violations of any laws involving the Company or any of its affiliates and/or any potential violations of the Company’s Code of Conduct, in each case that he has not already reported to the Company.
8.    Noncompetition, Nonsolicitation and Nondisclosure.  
(a)    For the avoidance of doubt, Executive’s Noncompetition, Nonsolicitation and Nondisclosure Agreement that Executive executed on March 13, 2013, attached hereto as Exhibit A (the “Noncompetition Agreement”), is incorporated by reference herein, and its provisions – except for Sections 12, 16 and 17, to the extent 

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they are in conflict with the provisions of this Agreement – shall continue in full force and effect from and after the Employment Termination Date.  
(b)     Further, Executive and Company have agreed that Executive’s Noncompetition Agreement will not preclude Executive from engaging directly or indirectly, whether as an employee, officer, manager, director, shareholder, partner, consultant, or representative, or in any other capacity, with an acute care hospital, so long as the acute care hospital is not a Customer (as defined in Executive’s Noncompetition Agreement).  For the avoidance of doubt, the term Customer includes, but is not limited to, Kindred Healthcare, Inc.
9.    Mutual Non-Disparagement Covenant.  Executive shall not make any statements, whether written or oral, disparaging or denigrating the Company, including its current, former and future officers, directors, employees, agents, representatives, attorneys, and shareholders.  Executive’s obligations under this Section 9 extend to, but are not limited to, text messages, e-mail communications, and comments or postings on blogs, comment boards or social media websites including, but not limited to, Facebook, Twitter, MySpace or LinkedIn.  The Company shall instruct its executive officers not to make any statements, whether written or oral, disparaging or denigrating Executive. This Section 9 does not, in any way, restrict or impede the Executive from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation or order or otherwise violate Section 8 of this Agreement.  The Executive shall promptly provide written notice of any such order to the General Counsel of the Company.
10.    General Release of All Claims.  
(a)    Release.  In exchange for the consideration provided in this Agreement including the offer of continued employment during the Transition Period, Executive knowingly and voluntarily releases and forever discharges the Company and its parent corporation, affiliates, subsidiaries, divisions, predecessors, insurers, successors and assigns, and their current and former employees, attorneys, officers, directors and agents thereof, both individually and in their business capacities, and their employee benefit plans and programs and their administrators and fiduciaries (collectively referred to throughout the remainder of this Agreement as “Releasees”), of and from any and all claims, known and unknown, asserted or unasserted, which the Executive has or may have against Releasees as of the date of execution of this Agreement, including, but not limited to, any alleged violation of: 
		
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	Title VII of the Civil Rights Act of 1964;

		
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	Sections 1981 through 1988 of Title 42 of the United States Code;

		
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	The Employee Retirement Income Security Act of 1974 (“ERISA”) (except for any vested benefits under any tax qualified benefit plan);

		
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	The Immigration Reform and Control Act;

		
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	The Americans with Disabilities Act of 1990;

		
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	The Age Discrimination in Employment Act of 1967 (“ADEA”);

		
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	The Worker Adjustment and Retraining Notification Act;

		
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	The Fair Credit Reporting Act;

		
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	The Family and Medical Leave Act;

		
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	The Equal Pay Act;

		
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	The False Claims Act (including the qui tam provisions thereof);

		
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	The Sarbanes-Oxley Act of 2002;

		
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	The Older Workers Benefit Protection Act;

		
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	any other federal, state or local law, rule, regulation, or ordinance; 

		
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	any public policy, contract, tort, or common law; or

		
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	any basis for recovering costs, fees, or other expenses including attorneys’ fees incurred in these matters.

This Release shall not, however, apply to any rights to indemnification from the Company Executive may have or any benefit to which Executive is entitled under any tax qualified pension plan of the Company or its affiliates, COBRA continuation coverage benefits or any other welfare benefits required to be provided by statute (claims with respect thereto, collectively, "Excluded Claims").
Executive further agrees, warrants, promises and covenants that, to the maximum extent permitted by law, neither Executive, nor any person, organization, or other entity acting on Executive’s behalf has filed or will file, sued or will sue, caused or will cause, or permitted or will permit to be filed, initiated or will initiate any lawsuit for damages or 

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other relief (including injunctive, declaratory, monetary or other relief) against the Releasees other than Excluded Claims.  Executive has not assigned or transferred, and will not assign or transfer, any claim that Executive is waiving and releasing herein, nor has Executive purported to do so.  If any claim is not subject to release, to the extent permitted by law, Executive waives any right or ability to be a class or collective action representative or to otherwise participate in any putative or certified class, collective or multi-party action or proceeding based on such a claim in which the Company or any other Releasee is a party.  
(b)     Knowing and Voluntary Waiver.  Executive has been given but has voluntarily declined twenty-one (21) days to review this Agreement.  Executive has been advised to consult with an attorney prior to signing this Agreement.  Executive may revoke his signature to this Agreement for a period of seven (7) calendar days following the date on which Executive signs this Agreement.   Any revocation within this period must be submitted, in writing, to J. Phenise Poole, Associate General Counsel, and state, “I hereby revoke my acceptance of our Separation Agreement.”  The revocation must be personally delivered to J. Phenise Poole or her designee, or mailed to Omnicare, Inc., 900 Omnicare Center, 201 E. Fourth Street, Cincinnati, Ohio 45202, and postmarked within seven (7) calendar days after Executive signs this Agreement.  Executive agrees that any modifications, material or otherwise, made to this Agreement do not restart or affect in any manner the original up to twenty-one (21) calendar day consideration period.  By signing this Agreement, Executive freely and knowingly, and after due consideration, enters into this Agreement intending to waive, settle and release all claims Executive has or might have against Releasees.
11.    Miscellaneous. 
(a)    Requests for Reference.  Executive agrees that he shall direct any third party seeking verification of his employment with the Company to Kirsten Marriner, Chief Human Resources Officer.  The Chief Human Resources Officer shall address all such requests as appropriate.
(b)    Section 409A Compliance. 
(i)    To the extent applicable, it is intended that this Agreement comply with the provisions of Section 409A of the Internal Revenue Code (“Code Section 409A”), and this Agreement shall be construed and applied in a manner consistent with this intent. 
(ii)    With respect to any payment or benefit under this Agreement, if any, that is deferred compensation subject to Code Section 409A (after taking into account all exclusions applicable to such payment under Code Section 409A) (the “Separation Payments”), Executive shall not be deemed to have terminated employment until he is deemed to have a Separation from Service (as defined below), and Executive’s right to receive the Separation Payments shall be treated as a right to receive a series of separate payments under Treasury Regulation Section 1.409A-2(b)(2)(iii). As used under this Agreement, a “Separation from Service” occurs when Executive dies, retires, or otherwise has a termination of employment with the Company that constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(1), without regard to the optional alternative definitions available thereunder. 
(iii)    Notwithstanding any other provision herein to the contrary, to the extent that the reimbursement of any expenses or the provision of any in-kind benefits under this Agreement is subject to Code Section 409A, (i) the amount of such expenses eligible for reimbursement, or in-kind benefits to be provided, during any one calendar year shall not affect the amount of such expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, (ii) reimbursement of any such expense shall be made by no later than December 31 of the year following the calendar year in which such expense is incurred, and (iii) the Executive’s right to receive such reimbursements or in-kind benefits shall not be subject to liquidation or exchange for another benefit. 
(iv)    Notwithstanding any provision to the contrary in this Agreement, in the event that a payment under the Agreement is considered to be nonqualified deferred compensation under Code Section 409A, and such amount is payable by reason of Executive’s termination of employment with the Company, the payment will not be made to Executive prior to the earlier of (i) the expiration of the six (6)-month period measured from the date of Executive’s Separation from Service (as such term is defined above) or (ii) the date of Executive’s death, if Executive is deemed at the time of such Separation from Service to be a Specified Employee as defined in Code Section 409A. All payments and benefits which had been delayed pursuant to the immediately preceding sentence shall be paid to Executive in a lump sum upon expiration of such six-month period (or if earlier upon Executive’s death).  In addition, 

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in the event a payment under the Agreement is considered to be nonqualified deferred compensation under Code Section 409A and if such payment could be made or commence in more than one taxable year depending upon when Executive signs the required separation agreement and general release, the payment must be made or commence in the second taxable year.
(c)     Withholding.  All payments and benefits payable pursuant to this Agreement shall be subject to reduction by all applicable withholdings, offsets, social security and other federal, state and local taxes and deductions. 
(d)     Confidentiality.  Executive shall keep the terms of this Agreement absolutely confidential and will not disclose such terms to any other person or entity other than Executive’s legal or tax advisor(s) except as authorized by the Company in writing or to the extent necessary for Executive to comply with applicable laws and regulations.  
(e)      Waiver.  Failure of the Parties at any time to enforce any provision of this Agreement or to require performance by the other party of any provisions hereof shall in no way affect the validity of this Agreement or any part hereof or the right of either party thereafter to enforce its rights hereunder; nor shall it be taken to constitute a condonation or waiver by the party of that default or any other or subsequent default or breach.
(f)    Return of Company Property.  Executive shall return to the Company all files, memoranda, documents, records, electronic records, software, copies of the foregoing, credit cards, keys, identification badges and any other property of the Company or its affiliates in his possession. 
(g)    Consent to Jurisdiction and Waiver of Jury Trial.  The Parties hereby (i) agree that any suit, proceeding or action at law or in equity (an “Action”) arising out of or relating to this Agreement must be instituted in a state or federal court located within Hamilton County, Ohio; (ii) waive any objection which he or it may have now or hereafter to the laying of the venue of any such Action; (iii) irrevocably submit to the jurisdiction of any such Action; (iv) waive any claim or defense of inconvenient forum; and (v) knowingly, voluntarily, and intentionally waive their right to a jury trial with respect to any claims arising in connection with this Agreement.  The Parties irrevocably agree that service of any and all process which may be served in any such Action may be served upon him or it by registered mail to the addresses referred to in Section 11(h) hereof, or to such other address as the Parties shall designate in writing by notice duly given in accordance with Section 11(h) hereof, and that such service shall be deemed effective service of process upon the Parties in any such Action. The Parties irrevocably agree that such service of process shall have the same force and validity as if service were made to him or it according to the law governing such service in the State of Ohio, and waive all claims of error by reason of any such service.
(h)    Notices.  All notices or other communications hereunder shall not be binding on either party hereto unless in writing, and delivered to the other party thereto at the following address:
If to the Company:
J. Phenise Poole, Associate General Counsel
Omnicare, Inc.
900 Omnicare Center
201 E. Fourth Street
Cincinnati, OH 45202
If to Executive: 
Randall Carpenter
[Address Redacted]
[Address Redacted]
Notices shall be deemed duly delivered upon hand delivery thereof at the above addresses, one day after deposit with a nationally recognized overnight delivery company, or three days after deposit thereof in the United States mails, postage prepaid, certified or registered mail. Any party may change its address for notice by delivery of written notice thereof in the manner provided.
(i)    Assignment.  No rights of any kind under this Agreement shall, without the prior consent of the Company, be transferable to or assignable by Executive or any other person or, except as provided by applicable law, be subject to alienation, encumbrance, garnishment, attachment, execution or levy of any kind, voluntary or involuntary.  

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This Agreement shall be binding upon and shall inure to the benefit of the Company and its respective successors and assigns.  
(j)    Governing Law.  This Agreement shall be governed by and construed in accordance with the substantive laws of the State of Ohio, without regard to the conflicts of law principles thereof.
(k)    Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same document.
(l)    Headings.  The headings in this Agreement are intended solely for convenience of reference and shall be given no effect in the construction or interpretation of this Agreement.
(m)    Entire Agreement.  This Agreement constitutes the entire understanding and agreement between the Parties hereto and, except as expressly set forth herein, supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, concerning the subject matter hereof, including but not limited to the Omnicare Agreements.  All negotiations by the Parties concerning the subject matter hereof are merged into this Agreement, and there are no representations, warranties, covenants, understandings or agreements, oral or otherwise, in relation thereto by the Parties hereto other than those incorporated herein, and the Executive has not relied on any other representations, warranties, covenants, understandings or agreements in signing this Agreement.  No subsequent modification or amendment of this Agreement shall be binding unless executed in writing by the Parties.
(n)    Consequences of Breach by Executive.  Executive acknowledges that the Company is entering this Agreement in reliance on his promises, agreements, warranties, and covenants to adhere to each of the responsibilities and duties as described throughout this Agreement, and that the promises, agreements, warranties, covenants, duties, responsibilities and obligations set forth in each Section of this Agreement each constitute a material inducement for the Company to enter this Agreement.   In the event that Executive materially breaches any provision of this Agreement, Executive agrees that the Company shall cease payments and benefits under Section 3 of this Agreement.  Executive further acknowledges and agrees that the Company would be irreparably harmed by any actual or threatened violation of this Agreement that involves disclosure of the existence, terms, or amount payable under this Agreement, or any actual or threatened violations of the provisions contained in Exhibit A to this Agreement.  Accordingly, in the event of any violation, threatened violation, or attempted violation of any such provisions by Executive, Executive shall be subject to legal action for such breach or violation and may be held liable to the Company for contractual and/or other legal or equitable remedies, including return of payments provided under this Agreement and, without posting any bond, the Company shall be entitled to a temporary restraining order, temporary and permanent injunctions, specific performance, and other equitable relief.  Executive agrees to indemnify and hold the Company harmless from and against any and all loss, cost, damage, or expense, including without limitation, attorneys’ fees that arise out of any breach by Executive of this Agreement, including but not limited to the provisions contained in Exhibit A.  All rights and remedies of the Company under this Agreement are cumulative and in addition to all other rights and remedies which may be available to the Company.  
(o)    Clawback.  Executive acknowledges that any compensation provided under this Agreement may be subject to a clawback to the extent required by law under Section 954 of the Dodd-Frank Act.
(p)    Severability.  Should any provision of this Agreement be declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, excluding the general release language, such provision shall immediately become null and void, leaving the remainder of this Agreement in full force and effect.  For the purpose of avoidance of any confusion, Executive and the Company acknowledge and agree that should any court of competent jurisdiction find any provision contained in Exhibit A to this Agreement to be invalid, illegal or unenforceable, such provision shall be modified only to the minimum extent necessary to render the modified provision valid, legal and enforceable.  
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INTENDING TO BE LEGALLY BOUND, the Parties or their duly authorized representatives have signed this Separation and General Release Agreement as of the date first above written.

OMNICARE, INC.
	
	
	/s/ Alexander M. Kayne

	Name: Alexander Kayne

	Title: SVP, General Counsel & Secretary

	
	
	/s/ Randall A. Carpenter

	Randall Carpenter

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EXHIBIT A
NONCOMPETITION, NONSOLICITATION AND NONDISCLOSURE AGREEMENT
I, the undersigned, hereby acknowledge that Omnicare, Inc. and its subsidiary and affiliated corporations (hereinafter collectively referred to as "Omnicare" or the “Company’) provide pharmaceutical products and ancillary services, including specialty pharmaceutical products and support services, to long-term care facilities and other healthcare service providers.
In consideration of (1) my salary or wage, as shown on the official payroll records of Omnicare, and the employee benefits offered and/or provided to me; (2) the potential disclosure to me of Omnicare’s Confidential Information (as defined below) in connection with such employment; (3) my access to Omnicare’s Confidential Information; (4) the potential for my career development by reason of such employment, including the opportunity to participate in the development of new Confidential Information; (5) an offer of at-will employment, or continued at-will employment, as the case may be; (6) my participation in the merit increase plan, and/or receipt of any pay increase; (7) an offer of stock awards or incentives through an Company plan; (8) the other promises contained herein; and (9) other good and valuable consideration, Omnicare and I agree as follows:
1.DEFINITIONS
(a)Products. As used in this Agreement, the term "Products" shall mean and include all goods designed, developed, invented, tested, sold, licensed or offered for sale or license by Omnicare at any time during or within (5) five years before my employment with Omnicare.
(b)Business.  As used in this Agreement, the term “Business” shall refer to Omnicare’s business of providing pharmaceutical products and ancillary services, including specialty pharmaceutical products and support services, to long-term care facilities and other healthcare service providers.
(c)Competitor.  As used in this Agreement, the term “Competitor” shall refer to any individual, corporation, or other business entity that engages, in whole or in part, in the same Business as Omnicare.
(d)Services. As used in this Agreement, the term "Services" shall mean and include all services provided, or offered to be provided, by Omnicare at any time during or within five (5) years before my employment with Omnicare.
(e)Product and Service Information. As used in this Agreement, the term "Product and Service Information" shall mean and include the descriptions, specifications, designs, numbers, names, suppliers, characteristics, costs, prices, delivery and suitability of, and other information relating to, the Products or the Services.
(f)Confidential Information. As used in this Agreement, the term "Confidential Information" shall mean and include, without limitation, the Product and Service Information and all other trade secrets and confidential information proprietary to Omnicare, including, without limitation, (1) the names, addresses, contact persons, purchasing histories, suppliers, equipment needs, equipment designs, purchasing frequency, prices paid, and other information relating to the present and prospective Customers of Omnicare; (2) information concerning the Business, personnel, or systems and plans; (3) information learned or generated by Omnicare with regard to the products, services, processes, designs, data, personnel, and business of its Competitors; (4) computer technology, programs, and data, whether online or off-loaded on disk format; (5) sales, marketing, and prospecting methodologies; (6) plans and materials; and (7) any other such plans, programs, methodologies and materials used in managing, marketing or furthering the Business.
(g)Customer.  As used in this Agreement, the term “Customer” shall refer to Omnicare’s customers and shall include any and all individuals, organizations, or business entities that: (1) were actual customers or clients of Omnicare during my employment, or which were prospective customers of Omnicare within that period of time; and (2) with which or whom I had contact or about whom I obtained Confidential Information during my employment from Omnicare.  For purposes of this definition, an individual, organization, or business entity is a “prospective” client or customer of Omnicare if I or any other Omnicare employee, officer or manager took steps to obtain or secure the business of the individual, organization, or business entity.
(h)Restricted Area.  As used in this Agreement, the term “Restricted Area” shall include the entire geographic area of the United States of America.

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(i)Restricted Period.  As used in this Agreement, the term “Restricted Period” shall include the twelve (12) months following the termination of my employment with Omnicare for any reason, whether voluntary or involuntary. 
(j)Inventions.  As used in this Agreement, the term “Inventions” shall include ideas, suggestions, inventions, trademarks, business plans, improvements, variations, modifications, substitutes, and other developments or improvements conceived by me, alone or with others, while I am employed by Omnicare, during working hours, that are within the scope of Omnicare’s Business or that relate to any Omnicare work or projects.
2.ACKNOWLEDGEMENTS
(a)    I acknowledge that in the course of my employment with Omnicare, I will be exposed to Omnicare’s Confidential Information relating to the Business and its operations, and that Omnicare’s Confidential Information is a valuable, special, and unique asset belonging exclusively to Omnicare.  I further acknowledge that Omnicare has a legitimate right and business need to protect its Confidential Information.  I acknowledge that keeping Omnicare’s Confidential Information confidential is essential to the growth and stability of Omnicare, and that the unauthorized use or disclosure to any person or entity of any of the Confidential Information will result in immediate and irreparable injury to Omnicare.
(b)    I acknowledge that the services which I perform or will perform for Omnicare are special, unique, extraordinary, and intellectual in character, and that my employment with Omnicare places me in a position of confidence and trust with the Customers and employees of Omnicare.
(c)    I acknowledge that the provisions set forth in this Agreement have been specifically tailored to protect Omnicare’s legitimate business interests and needs, that the provisions set forth in this Agreement are necessary in order to protect and maintain the proprietary interests and other legitimate business interests of Omnicare, and that the enforcement of such provisions will not prevent me from earning a livelihood.  
(d)    I acknowledge that my position with Omnicare may place me in a close business relationship with Omnicare’s customers and/or agents or employees, potentially involving me as the primary or even sole contact on behalf of Omnicare.
(e)    I acknowledge that all provisions set forth in this Agreement are reasonable in scope and specifically acknowledge that the definition of “Restricted Area” is reasonable.  
(f)    I acknowledge that and give Omnicare permission to contact my future employers to determine my compliance with this Agreement or to communicate the contents of this Agreement to such employers.
(g)    I further acknowledge that there is valid and valuable consideration for this Agreement.
3.NON-COMPETITION  
I shall not at any time during my employment with Omnicare, or during the Restricted Period, engage directly or indirectly, whether as an employee, officer, manager, director, shareholder, partner, consultant, or representative, or in any other capacity, of or in association with any Competitor, in any Business or activity within the Restricted Area that directly or indirectly competes with Omnicare in the Business.
4.NONSOLICITATION OF CUSTOMERS
(a)While I am employed by the Company, and during the Restricted Period, I agree to the following:
(b)I will not directly or indirectly contact, solicit, serve, cater or provide any products or services similar to the Products or the Services to any Customer, or attempt to directly or indirectly contact, solicit, serve, cater or provide any products or services similar to the Products or the Services to any Customer;
(c)I will not directly or indirectly influence solicit, induce, encourage, influence or attempt to solicit, induce, encourage, or influence any Customer to terminate any Business or patronage of Omnicare or to direct or transfer any Business or patronage away from Omnicare; and
(d)I will not directly or indirectly interfere with or disrupt any relationship, contractual or otherwise, between Omnicare, and its Customers, clients, employees, contractors, agents, suppliers, distributors or other similar parties.

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5.NON-SOLICITATION OF EMPLOYEES  
I acknowledge that those officers, managers, or employees now or hereafter associated with or employed by Omnicare are an integral part of Omnicare’s Business and that it is extremely important for Omnicare not to lose such officers, managers, or employees.  Therefore, while I am employed by the Company, and during the Restricted Period, I agree to the following:
(a)    I shall not directly or indirectly hire, engage, or attempt to hire or engage any individual, who is or was an officer, manager, or employee of Omnicare to work for or perform services for any other entity;  
(b)    I shall not share any of Omnicare officer’s, manager’s, or employee’s name or contact information with any other person or entity so that the person or entity can speak to that individual  about ending their employment with Omnicare; and 
(c)    I shall not participate in any interviewing or hiring of an Omnicare officer, manager, or employee to work for any other person or entity.
6.SURVIVAL OF PRIOR RESTRICTIVE COVENANTS RELATED TO AN ACQUISITION OR MERGER.  
Notwithstanding anything in this Agreement, I acknowledge and agree that any covenants restricting me from competing with Omnicare, from soliciting Omnicare’s customers or from soliciting Omnicare’s employees in which I entered in relation to Omnicare’s purchase of or merger with an entity engaged in the Business (the “Acquisition Covenants”) shall remain in full force and effect pursuant to their terms.  I further acknowledge and agree that I am bound for the full term of the Acquisition Covenants and that during any time period in which the term of the Acquisition Covenants and the Restricted Period may coincide, I will be bound to comply concurrently with the Acquisition Covenants and my obligations pursuant to this Agreement.
7.NONDISCLOSURE OF CONFIDENTIAL INFORMATION 
I shall keep all of Omnicare’s Confidential Information in strict confidence and shall not directly or indirectly reveal or disclose to any third party (except in the performance of my normal and regular job duties or as authorized by Omnicare’s Chief Executive Officer) all or any portion of Omnicare’s Confidential Information, nor make use of Omnicare’s Confidential Information for my own benefit, or for the benefit of any Competitor, regardless of whether stored on paper, electronically, or memorized by me.  I agree that during my employment with Omnicare and thereafter, I will review and comply with all Omnicare policies on privacy of Omnicare’s Confidential Information and patient information.  The restriction set forth in this Paragraph shall apply until the end of time.
8.RETURN OF CONFIDENTIAL INFORMATION AND COMPANY PROPERTY
No later than five (5) business days following my separation from Omnicare for any reason whatsoever, I shall return to Omnicare all Confidential Information and all copies and abstracts thereof in my possession either at work, at home, or elsewhere, whether in paper or electronic form. This includes Confidential Information stored on my home computer, personal digital assistant (PDA), cell phone, or any other data storage device. I will not download, copy, email, or delete any information or files from any computer assigned or made available to me by Omnicare, and I will not install any wiping utilities or programs that are designed to or have the effect of deleting or overwriting any information or files from any computer assigned or made available to me by Omnicare.  After I return all Confidential Information to Omnicare, I will delete the Confidential Information from my home computer, cell phone, PDA, and/or other storage devices and not maintain any paper or electronic copies whatsoever. I shall, upon request, certify in writing and under penalty of perjury, that I did not retain originals, copies, or abstracts of any Confidential Information.  Furthermore, no later than five (5) business days following my separation from Omnicare for any reason whatsoever, I shall deliver to Omnicare all materials, documents, and property, including, but not limited to, cellular phones, pagers, personal computer equipment, demonstration equipment, supplies, brochures, price books, customer lists, employee manuals, internal memoranda, keys, charge cards, business cards, or similar items, that I received by reason of my employment with Omnicare.

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9.OWNERSHIP OF INVENTIONS
All Inventions are the exclusive property of Omnicare.  I agree to assist Omnicare, at its expense, to obtain patents or other applicable legal protections on such patentable Inventions, and agree to execute all documents necessary to obtain such protections in the name of Omnicare.
(a)    Omnicare shall have a right of first refusal for an exclusive license to all ideas, suggestions, inventions, trademarks, business plans, improvements, variations, modifications, substitutes, and other developments or improvements conceived by me, alone or with others, outside of work hours, while I am employed by Omnicare, that are within the scope of Omnicare’s Business or that relate to Omnicare work or projects.  If, through good faith negotiations, Omnicare and I cannot agree on the terms of such license, I may, free from any obligation or liability, develop or license the idea, invention, trademark, or other development or improvement as I choose.
(b)    I will disclose to Omnicare all Inventions that I develop or conceive, alone or with others, during working hours and/or during the course of my employment with Omnicare, that are within the scope of Omnicare’s Business or that relate to any Omnicare work or projects.  I agree to provide disclosure in the form of sketches, drawings, devices, models, written descriptions or orally, as may be requested by Omnicare.
(c)    I assign to Omnicare my entire right, title, and interest in and to any and all Inventions, including all patent, copyright and trademark and patent copyright and trademark application rights relating to them.  I further agree to execute any documents Omnicare shall deem necessary or desirable for the transfer of rights to it, or for the preparation, filing, prosecution and procuring of patent applications, trademark or trade name applications or copyright registrations.
(d)    I shall assist Omnicare in the prosecution or defense of any action or proceeding related to or arising from the rights and obligations set forth in  this Paragraph 9, including, but not limited to, testifying, reviewing documents, and consulting with Omnicare and its counsel at such times and locations as may be requested.
(e)    I understand that Omnicare will reimburse me for all reasonable out-of-pocket costs incurred by me in performing the obligations of this Paragraph 9 at the direction of or with the prior consent of Omnicare, including, but not limited to, the preparation of documents, drawings, models and plans, transfer and assignment of improvements, inventions, and other discoveries described above.
10.CONSEQUENCES OF BREACH
I acknowledge and agree that, should I violate or otherwise breach any of the terms of this Agreement, I shall not receive, and Omnicare will immediately cease payment of, any and all sums remaining to be paid to me pursuant to any severance agreement, change of control agreement, or any other agreement, policy, or plan that may obligate Omnicare to provide cash payments or other benefits to me after the termination of my employment with Omnicare (the "Severance Agreements"), if any.  I agree that the non-payment and/or cessation of payments described in this Paragraph shall not constitute a breach of any Severance Agreements.  In such event, I will also be required to pay back to Omnicare all sums or benefits paid or provided to me by Omnicare under the Severance Agreements, if any.  In the event that I engage in activities in violation of Paragraph 3, Paragraph 4, Paragraph 5, Paragraph 6, or Paragraph 7 of this Agreement, then the Restricted Period shall automatically be extended for a period equal to the period during which I shall have been in violation of such Paragraphs.
11.INJUNCTIVE RELIEF
I acknowledge and agree that the provisions of Paragraphs 3, 4, 5, 6, or 7 of this Agreement are reasonable and appropriate in all respects, and in the event of any violation by me of any such provisions, Omnicare would suffer irreparable harm and its remedies at law would be inadequate.  Accordingly, in the event of any violation, threatened violation, or attempted violation of any such provisions by me, Omnicare shall be entitled to a temporary restraining order, temporary and permanent injunctions, specific performance, and other equitable relief.  I agree to indemnify and hold Omnicare harmless from and against any and all loss, cost, damage, or expense, including without limitation, attorneys’ fees that arise out of any breach by me of this Agreement.  All rights and remedies of Omnicare under this Agreement are cumulative and in addition to all other rights and remedies which may be available to Omnicare from time to time, under any other agreement, at law, or in equity.

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12.LIMITATIONS OF ACTIONS
I agree not to commence any action or suit related to my employment with Omnicare: (1) more than six (6) months after the termination of my employment, if the action or suit is related to the termination of my employment; or (2) more than six (6) months after the event or occurrence on which my claim is based, if the action or suit is based on an event or occurrence other than the termination of my employment.  I further agree to waive any statute of limitations that is contrary to this Paragraph.
13.EMPLOYMENT AT WILL
I shall be an employee at will and nothing in this Agreement shall be construed to grant to me any right to continuing employment on any terms or for any period of time. I acknowledge that my employment with Omnicare may be terminated by either me or Omnicare at any time, for any reason, with or without notice.  
14.CONTINUATION OF AGREEMENT
This Agreement shall continue in effect during my employment with Omnicare and shall remain in effect following the termination of my employment with Omnicare for any reason, whether voluntary or involuntary, with or without cause.
15.REPRESENTATIONS AND WARRANTIES
I hereby represent and warrant that the following statements are true and shall remain true during the term of this Agreement. I understand that Omnicare has relied upon these representations and warranties in connection with the decision to hire and/or retain me as an employee.
I am not a party to any contractual arrangement with any entity that is in the nature of a noncompetition or nonhire agreement.
My acceptance of employment or my continued employment with Omnicare will not constitute a breach of any prior employment agreement or restrictive covenant with any entity.
I have not disclosed or agreed to disclose any confidential or proprietary business information or trade secrets of any entity in any communications with Omnicare.
In performing my duties for Omnicare, I will be able to carry out my employment responsibilities without breaching any duties or misappropriating confidential or proprietary business information or trade secrets of any other entity.
I have not been asked by any Omnicare representative to disclose to or use on behalf of the Company any confidential or proprietary business information or trade secrets of any entity, and I will not disclose to or use on behalf of the Company any such information.
I have not copied any customer lists, files, records, databases or other electronically maintained information, or records of any entity in violation of any law or agreement, and I have not brought with me or retained copies of any such information or any other non-public business or financial information or trade secrets of any entity.
I represent and warrant that I will provide a copy of this Agreement to all employers and/or prospective employers with whom I apply during my employment and during the Restricted Period following the termination of my employment.  
16.GOVERNING LAW AND  FORUM, WAIVER OF JURY TRIAL AND     REMEDIES   
This Agreement shall be construed and enforced in accordance with the laws of the State of Ohio without regard to its choice of laws provisions. All actions arising from or relating to this Agreement shall be commenced in a federal or state court located within the state of Ohio, and I hereby consent to the exercise of personal jurisdiction by and venue in any such court. If such court should deem any covenant herein to be invalid, illegal or unenforceable, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable.  The Parties hereby knowingly, voluntarily, and intentionally waive their right to a jury trial with respect to any claims arising in connection with this Agreement.  I also acknowledge that the remedy at law for any breach or threatened breach of this Agreement will be inadequate and, accordingly, that Omnicare shall, in addition to all other available remedies (including, without limitation, seeking such damages as 

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they can show they have sustained by reason of such breach), be entitled to injunctive relief.  All rights and remedies of Omnicare under this Agreement are cumulative and in addition to all other rights and remedies which may be available to Omnicare from time to time, under any other agreement, at law, or in equity.
17.COOPERATION AND NOTICE
I agree to assist the Company with respect to all reasonable requests to provide documents, testify, or otherwise assist in connection with any legal proceeding relating to the Company, including but not limited to, any Federal, state or local government audit, proceeding or investigation, other than proceedings relating to the enforcement of this Agreement or other proceedings in which I am a named party whose interests are adverse to those of the Company.  In addition, unless otherwise required by law, I agree to immediately notify the General Counsel of the Company of all subpoenas issued to me or contact made with me by any government official or law enforcement agency relating in any way to Omnicare or to my employment and to provide the Company with a copy of any subpoena upon receipt.  Nothing in this Paragraph shall prevent me from communicating with government officials or law enforcement or participating in any government or law enforcement investigation.
18.CAPACITY TO ENTER AGREEMENT
I represent and warrant that I am entering into this Agreement freely and voluntarily, intending to be bound thereby. I affirm that I am able to comply with this Agreement, even after the termination of my employment with Omnicare.  
19.BINDING EFFECT AND ASSIGNMENT
This Agreement shall be binding upon and inure to my benefit and the benefit of my heirs, assigns, successors and legal and personal representatives.  This Agreement shall inure to the benefit of Omnicare, its subsidiaries, affiliates, and related entities, as well as Omnicare’s successors and assigns.
20.ENTIRE AGREEMENT AND AMENDMENT AND WAIVER
This Agreement together with any covenants restricting me from competing with Omnicare, from soliciting Omnicare’s customers or from soliciting Omnicare’s employees in which I entered in relation to Omnicare’s purchase of or merger with an entity engaged in the Business (the “Acquisition Covenants”) shall remain in full force and effect pursuant to their terms and together constitute the entire agreement with respect to its subject matter and supersedes all prior and contemporaneous promises, understandings and agreements relating to this subject matter.  No provision of this Agreement may be amended, altered, or waived except in a writing, expressly referring to this Agreement, signed by the undersigned and Omnicare's General Counsel, but with respect to Omnicare’s Executive Officers, signed by both the Chief Executive Officer and the General Counsel.  The waiver by Omnicare of a breach by me shall not operate or be construed as a waiver of any subsequent breach by me or any other employee.
21.SEVERABILITY
In the event that any provision or portion of this Agreement or its application shall be held invalid or unenforceable, it shall be deemed severable and shall not affect any other provision of the Agreement, which shall continue in full force and effect.
22.INTERPRETATION
No rule of construction requiring interpretation against the draftsman hereof shall apply in the interpretation of this Agreement.
23.COUNTERPARTS
This Agreement may be executed in several counterparts, each of which shall constitute an original, but all of which shall constitute one and the same instrument.  Facsimile and electronic copies of this executed Agreement or signed counterparts shall be deemed originals.

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IN WITNESS WHEREOF, the Parties hereto have executed or caused its duly authorized officer to execute this Agreement, as of the 13th day of March, 2013.

	
	
	/s/ Randall A. Carpenter

	Signature

	 

	Randall A. Carpenter

	Print Full Name

	 

	3/13/13

	Date

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EXHIBIT B
GENERAL RELEASE 
I, Randall Carpenter, on behalf of myself and my heirs, executors, administrators and assigns, in consideration of the benefits provided in Section 3 of the Separation and General Release Agreement between Omnicare, Inc. (the “Company”), and Randall Carpenter, dated as of February 27, 2014 (the “Separation Agreement”), to which this General Release (the “Release”) is attached, do hereby knowingly and voluntarily release and forever discharge the Company and its parent corporation, affiliates, subsidiaries, divisions, predecessors, insurers, successors and assigns, and their current and former employees, attorneys, officers, directors and agents thereof, both individually and in their business capacities, and their employee benefit plans and programs and their administrators and fiduciaries (collectively referred to throughout the remainder of this Release as “Releasees”), of and from any and all claims, known and unknown, asserted or unasserted, which I have or may have against Releasees as of the date of execution of this Release, including, but not limited to, any alleged violation of: 
		
	•
	Title VII of the Civil Rights Act of 1964;

		
	•
	Sections 1981 through 1988 of Title 42 of the United States Code;

		
	•
	The Employee Retirement Income Security Act of 1974 (“ERISA”) (except for any vested benefits under any tax qualified benefit plan);

		
	•
	The Immigration Reform and Control Act;

		
	•
	The Americans with Disabilities Act of 1990;

		
	•
	The Age Discrimination in Employment Act of 1967 (“ADEA”);

		
	•
	The Worker Adjustment and Retraining Notification Act;

		
	•
	The Fair Credit Reporting Act;

		
	•
	The Family and Medical Leave Act;

		
	•
	The Equal Pay Act;

		
	•
	The False Claims Act (including the qui tam provisions thereof);

		
	•
	The Sarbanes-Oxley Act of 2002;

		
	•
	The Older Workers Benefit Protection Act;

		
	•
	any other federal, state or local law, rule, regulation, or ordinance; 

		
	•
	any public policy, contract, tort, or common law; or

		
	•
	any basis for recovering costs, fees, or other expenses including attorneys’ fees incurred in these matters.

If any claim is not subject to release, to the extent permitted by law, I waive any right or ability to be a class or collective action representative or to otherwise participate in any putative or certified class, collective or multi-party action or proceeding based on such a claim in which the Company or any other Releasee is a party.
This Release shall not, however, apply to any obligation of the Company pursuant to the Separation Agreement, any rights to indemnification from the Company I may have or any benefit to which I am entitled under any tax qualified pension plan of the Company or its affiliates, COBRA continuation coverage benefits or any other welfare benefits required to be provided by statute (claims with respect thereto, collectively, "Excluded Claims").
I have been given but have voluntarily declined twenty-one (21) days to review this Release.  I have been advised to consult with an attorney prior to signing of this.  I understand that I may revoke my signature to this Release for a period of seven (7) calendar days following the date on which I sign this Release.   Any revocation within this period must be submitted, in writing, to J. Phenise Poole, Associate General Counsel, and state, “I hereby revoke my acceptance of the General Release.”  The revocation must be personally delivered to J. Phenise Poole or her designee, or mailed to Omnicare, Inc., 900 Omnicare Center, 201 E. Fourth Street, Cincinnati, Ohio 45202, and postmarked within seven (7) calendar days after Executive signs this Release.  Executive agrees that any modifications, material or otherwise, made to this Release do not restart or affect in any manner the original up to twenty-one (21) calendar day consideration period.  By signing this Release, Executive freely and knowingly, and after due consideration, enters into this Release intending to waive, settle and release all claims Executive has or might have against Releasees.
I further agree, warrant, promise and covenant that, to the maximum extent permitted by law, neither I, nor any person, organization, or other entity acting on my behalf has filed or will file, sued or will sue, caused or will cause, or permitted or will permit to be filed, initiated or will initiate any lawsuit for damages or other relief (including injunctive, declaratory, monetary or other relief) against the Releasees other than Excluded Claims.  I have not assigned or 

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transferred, and will not assign or transfer, any claim that I am waiving and releasing herein, nor have I purported to do so. 
This Release will be governed by and construed in accordance with the laws of the State of Ohio.  If any provision in this Release is held invalid or unenforceable for any reason, the Executive intends that such portion be modified to make it enforceable to the maximum extent permitted by law.  If any such portion cannot be modified to be enforceable, the remaining provisions shall be construed as if the invalid or unenforceable provision had not been included.
For the avoidance of doubt, nothing contained herein shall preclude me from enforcing my rights to the benefits due and owing to me under the Separation Agreement.  I also acknowledge that any dispute regarding the terms of this Release shall be subject to Section 11(g) of the Separation Agreement.

IN WITNESS WHEREOF, I have executed this Executive Release on this 28th day of March, 2014.

	
	
	/s/ Randall A. Carpenter

	Randall A. Carpenter

18OCR Q1 14 Ex 10.2

Exhibit 10.2

AMENDED AND RESTATED EMPLOYMENT AGREEMENT
THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of the 14th day of April, 2014 by and between OMNICARE, INC., a Delaware corporation (the “Company”) and Nitin Sahney (“Executive”).
WHEREAS, Executive is the President and Chief Operating Officer of the Company; 
WHEREAS, Executive and the Company have entered into an employment agreement, dated October 28, 2010, as amended on February 17, 2011, June 11, 2012, and July 1, 2013 (as so amended, the “Original Employment Agreement”); and
WHEREAS, the Company and Executive desire to amend and restate the Original Employment Agreement to consolidate the original agreement and subsequent amendments and to revise certain of its provisions on the terms set forth herein.
THEREFORE, in consideration of these recitals and the mutual covenants and agreements hereinafter set forth, the parties hereto agree as follows:
SECTION 1EMPLOYMENT
1.1    POSITION.  Commencing on the retirement date of the current Chief Executive Officer of the Company (the “Effective Date”), the Company shall employ Executive as the President and Chief Executive Officer of the Company for the Term of this Agreement set forth in Section 3.1, reporting to the Board of Directors of the Company (“Board”).  Executive shall be assigned such duties with regard to the business of the Company as are generally performed by an executive of the Company serving in such position, and such other duties as may from time to time be assigned to Executive by the Board consistent with such position.  Until the Effective Date, the terms of the Original Employment Agreement shall remain in effect.   
1.2    DUTIES.  Executive agrees to devote his exclusive and full professional time and attention to his duties as an employee of the Company.  In addition, Executive agrees that he shall not render to others any service of any kind for compensation or engage in any other business activity including without limitation any involvement in any business in which Executive has any administrative or operating responsibility; provided, Executive may (or may continue to) serve as a member of the board of directors of one outside publicly traded company and, with the prior consent of the Board (which consent shall not be unreasonably withheld), the board of directors of any other public or privately-held company, provided that such service with any such companies does not interfere with Executive’s discharge of his duties to the Company and is not competitive with the Company.  If at any time service on any board of directors would, in the discretion of the Board, conflict with Executive’s fiduciary duty to the Company or create any appearance thereof, Executive shall promptly resign from such other board of directors after written notice of the conflict is received from the Board.  Subject to Section 4 hereof, Executive shall not be precluded from devoting reasonable periods of time required to manage his personal investments and participate in professional, educational, philanthropic, or community activities; provided that such activities do not interfere with Executive’s discharge of his duties to the Company.
1.3    LOCATION.  Executive shall perform his duties at the Company’s headquarters (which are currently located  in the Cincinnati, Ohio metropolitan area) but from time to time Executive may be required to travel to other locations in connection with his responsibilities under this Agreement.
SECTION 2COMPENSATION, BENEFITS AND EXPENSES
2.1    BASE SALARY.  During the Term, the Company shall pay to Executive a salary (“Base Salary”) at an annual rate of $800,000, payable in accordance with the regular payroll practices of the Company but not less frequently than monthly.  Executive’s Base Salary will be reviewed annually by the Compensation Committee of the Board (the “Compensation Committee”) beginning in February, 2015, and may be increased at the Compensation Committee’s discretion taking into consideration Executive’s performance, Company performance and general economic conditions.  The Base Salary as determined herein from time to time shall constitute Executive’s “Base Salary” for purposes of this Agreement.

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2.2    INCENTIVE COMPENSATION.  During the Term, Executive shall be eligible to participate in the Company’s Annual Incentive Plan for Senior Executive Officers (or successor plan; “AIP”) and such other bonus and annual incentive compensation plans as may be maintained by the Company for its senior executives in accordance with the terms of such plans.  Executive shall have the opportunity to earn an annual target bonus of at least 150% of Executive’s Base Salary.  The Compensation Committee will recommend Executive’s annual AIP award to the independent members of the Board, who will make the final approval of such award each year.  Executive’s annual bonus (which may be greater or less than the target bonus percentage established above) to the extent earned and payable, shall be paid at such time or times as is provided under and otherwise in accordance with the terms of the AIP.
2.3    LONG TERM INCENTIVE COMPENSATION.  On the date that annual Long Term Incentive (“LTI”) awards are granted to executive officers in 2015, Executive will be granted an LTI award, under the Company’s 2004 Stock and Incentive Plan, or any successor plan, including, without limitation, the 2014 Stock and Incentive Plan, with an economic value at grant of no less than $4,000,000.  Such award will generally have the same terms and conditions as apply to annual LTI awards granted at the same time in 2015 to other executive officers of the Company.  Thereafter, Executive will be eligible for annual LTI awards as determined by the Compensation Committee and approved by the independent members of the Board.  Subject to Board approval, the Compensation Committee will establish Executive’s LTI target each year, with the final award approved based on Executive’s performance as determined by the Compensation Committee.
2.4    OTHER LTI AWARD.    As soon as practicable following the Effective Date, Executive will receive a one-time LTI award with an economic value at grant of $1,000,000.  Such award will be granted in the same form and mix and on the same terms as 2014 LTI awards granted to Executive in February 2014, provided that the performance goal for purposes of Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”) will be based on a goal or goals to be established by the Compensation Committee at the time of grant.  The grant date of this award will be determined by the Board at the Effective Date, but will in no event be later than December 31, 2014.
2.5    REIMBURSEMENT OF BUSINESS EXPENSES.  During the Term, the Company shall reimburse Executive for all authorized, ordinary and necessary business expenses incurred and substantiated by him in accordance with applicable Company policy.  In all events, any reimbursement made to Executive pursuant to this Section 2.5 shall be made not later than the end of the calendar year following the calendar year in which the related expense was incurred and shall be subject to Section 6.17(b).
2.6    EXECUTIVE BENEFITS.  During the Term, Executive shall be entitled to participate in all retirement plans, employee benefit plans (including thrift, profit sharing, medical coverage, education, or other welfare benefits) and perquisite arrangements that the Company has adopted or may adopt, maintain or contribute to for the benefit of its senior executives in accordance with the terms of such plans and programs; provided, nothing herein shall preclude the Company’s authority to amend or terminate any such plans or arrangements at any time and from time to time, provided that Executive shall not participate in the Company’s Senior Executive Change in Control Plan, Executive Change in Control Plan, Senior Executive Severance Plan or Executive Severance Plan.   Executive shall be entitled to twenty-six (26) days of paid-time off each calendar year.
SECTION 3TERM; TERMINATION OF EMPLOYMENT
3.1    TERM.  The initial term of employment of Executive pursuant to this Agreement shall commence on the Effective Date and shall continue through the third anniversary of the Effective Date (the “Initial Term”).  This Agreement shall be extended automatically by successive one-year periods commencing on the day following expiration of the Initial Term and each anniversary of such date unless either party notifies the other party at least ninety (90) days prior to such date or any such anniversary that this Agreement shall not be so extended for the next additional year period (such Initial Term and each successive one-year extension thereof being the “Term”).  Notwithstanding the foregoing, this Agreement and Executive’s employment may be terminated at any time during the Term pursuant to Sections 3.2 through 3.6 hereof.  
3.2    TERMINATION FOR CAUSE.  The Company shall have the right to terminate this Agreement and Executive’s employment, by written notice to Executive, for any of the following causes (a “Termination for Cause”):
(a)fraud or willful or intentional misrepresentation in connection with Executive’s performance of his duties hereunder;

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(b)the failure by Executive to substantially perform his material duties hereunder;
(c)willful or intentional conduct by Executive that is detrimental to the Company’s reputation, goodwill or business operations in any material respect;
(d)breach or threatened breach by Executive of the restrictive covenants incorporated in Section 4 hereof; or
(e)Executive’s conviction for, or plea of nolo contendere to, a charge of commission of a felony or a violation of federal or state securities laws.
In no event shall Executive be considered to have been terminated for “Cause” unless the Company delivers a written notice of termination to Executive identifying in reasonable detail the acts or omissions constituting “Cause” and the provision of this Agreement relied upon.  In the case where such acts or omissions are not capable of cure, Executive’s termination will take effect upon his receipt of such notice.  In the case where such acts or omissions are capable of cure, Executive’s termination will take effect fifteen (15) days following his receipt of such notice if such acts or omissions are not cured by Executive by such date, provided the Company may suspend Executive’s employment or place him on leave of absence pending such cure (provided that, for any period of suspension or leave of absence, he shall continue to be treated as an employee of the Company for all purposes of this Agreement).  For the avoidance of doubt, mere failure of the Company to achieve earnings goals shall not constitute “Cause.”
Upon any Termination for Cause, all payments, contributions, vesting and other benefits to Executive under Section 2 of this Agreement shall cease immediately, with the exception of reimbursement of authorized, ordinary and necessary business expenses already incurred, any compensation already earned or vested as of that date, any payments and benefits to which Executive is entitled under the express terms of any benefit plan or program (other than any bonus, incentive or severance plan or program), any earned but unused paid-time off and any payments and benefits required by applicable law (collectively, the “Accrued Obligations”).
3.3    DISABILITY, ILLNESS OR DEATH.  If Executive is unable to perform his duties under this Agreement by reason of illness or other physical or mental disability, and such physical or mental disability has continued for one hundred eighty (180) days or would be reasonably expected to continue for at least one hundred eighty (180) days (as determined by an independent physician mutually selected by the Company and Executive (or his beneficiaries)), then this Agreement and Executive’s employment shall be deemed terminated (“Termination for Disability”).  Upon Termination for Disability, Executive shall continue to receive the compensation and benefits described in Section 2 hereof (to the extent permitted under the terms of any applicable plan) for a period of three (3) months after the date of termination reduced by any disability payment to which Executive may be entitled in lieu of such compensation but not by any disability payment for which Executive has privately contracted and paid the premiums.  If Executive should die before the termination of this Agreement, all payments, contributions and benefits to Executive under Section 2 of this Agreement shall terminate upon the date of his death, with the exception of the Accrued Obligations.  The benefits provided in this Section 3.3 pursuant to a Termination for Disability shall constitute “disability pay” within the meaning of Treasury Regulation Section 31.3121(v)(2)-1(b)(4)(iv)(C).   
3.4    TERMINATION FOR REASONS OTHER THAN WITH CAUSE.  The Company shall have the right to terminate this Agreement and Executive’s employment hereunder, other than a Termination for Cause (and other than a Termination for Disability), upon ten (10) days’ written notice to Executive.  If the Company terminates this Agreement and Executive’s employment hereunder other than a Termination for Cause (and other than a Termination for Disability), in addition to the Accrued Obligations, Executive will be entitled to the following, subject to Section 3.8 and Section 6.17:
(a)Executive shall receive as severance pay continued payment of an amount equal to one and a half (1.5) times the sum of (i) his Base Salary plus (ii) Executive’s target bonus under Section 2.2 for the year of termination, payable for eighteen (18) months in substantially equal installments in accordance with the Company’s standard payroll practices;
(b)Executive shall receive a pro rata portion of Executive’s annual AIP bonus under Section 2.2 for the fiscal year in which Executive’s termination occurs, payable at the time that annual bonuses are paid to other senior executives, determined by multiplying (i) the amount Executive would have received based upon actual performance had employment continued through the end of the fiscal year by (ii) the fraction, the numerator of which is the number 

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of days that Executive was employed by the Company during the fiscal year in which Executive’s termination occurred and the denominator of which is 365 (“Pro Rata Bonus”); 
(c)Executive shall receive any unpaid annual bonus earned in accordance with the terms of the AIP with respect to any fiscal year preceding the date of termination, payable when annual bonuses are paid to senior executives for such year;
(d)To the extent not fully vested, all stock options, time-based restricted stock and other time-based awards held by Executive shall become vested in full on the date of termination with vested stock options remaining exercisable for six (6) months following termination of employment (or the expiration of their term, if earlier).   All performance restricted stock units (“PSUs”) and other performance-based awards shall vest and be payable at the target amount (or the amount based upon actual performance, if greater) at the time awards are generally payable for a separation from service (other than on account of death or disability) under the applicable award agreement.  Amounts with respect to PSUs or other awards (other than restricted stock or stock options) shall be paid in a manner that would not otherwise subject the award to any additional tax under Code Section 409A (as defined in Section 6.17).  Notwithstanding anything in this Section 3.4(d) to the contrary, any LTI awards intended to be performance based compensation for purposes of Section 162(m) of the Code will only become vested and payable if the applicable Section 162(m) performance goal or goals have been met;    
(e)Executive shall become fully vested in his benefits under the Company’s Non-Qualified Deferred Compensation Plan on the date of termination and benefits under such plan will be paid in accordance with the terms of such plan; 
(f)Executive shall be entitled to continued participation for eighteen (18) months in the Company’s medical, dental and vision welfare benefit plans which cover Executive (and his eligible dependents) following termination of employment upon the same terms and conditions in effect for active employees of the Company subject to Executive’s continued co-payment of premiums for such coverage, to the extent that the terms of such plans permit Executive’s continued participation during such period; provided, in the event Executive obtains other employment and becomes covered by the other employer’s plan(s) that offers substantially similar or more favorable benefits, determined on a benefit-by-benefit and coverage-by-coverage basis, such continuation of benefits by the Company shall immediately cease.  The continuation of medical, dental and vision benefits under this Section 3.4 shall be conterminous with, and reduce the period of coverage and count against, Executive’s right to healthcare continuation benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”).  In the event that the Company determines that it cannot provide the coverage described in this Section 3.4(f) without penalties or adverse tax consequences to the Company, the Company shall pay directly to Executive a taxable lump-sum cash amount equal to the then-unpaid amount of the Company’s portion of the premium for such coverage, provided that such cash payment does not result in any penalties or adverse tax consequences to the Company; and
(g)Executive outplacement services as arranged and paid by the Company, consistent with the benefit for other executive officers under the Company’s Senior Executive Severance Plan.
Subject to Section 3.8 and Section 6.17, the first severance payment under Section 3.4(a) shall be made on the first payroll date following the Release Date (as defined in Section 3.8).  Executive’s right to receive such severance payments under Section 3.4 or Section 3.5, as may apply, shall be treated as a right to receive a series of separate payments under Treasury Regulation Section 1.409A-2(b)(2)(iii).  As used under this Agreement, a “Separation from Service” occurs when Executive dies, retires, or otherwise has a termination of employment with the Company that constitutes a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h)(1), without regard to the optional alternative definitions available thereunder.
In the event of Executive’s termination of employment by the Company that does not fall under the provisions of Section 3.5 (other than a (x) Termination for Cause or (y) a Termination for Disability), Executive acknowledges that he will not be entitled to any payments under Section 3.5 and that the Company shall have no obligations or liability to him under this Agreement other than the obligations set forth in this Section 3.4.   
3.5    TERMINATION UPON OR FOLLOWING A CHANGE IN CONTROL.
(a)The Company shall have the right to terminate this Agreement and Executive’s employment in the event of or following a Change in Control (as defined in the Company’s 2004 Stock and Incentive Plan, or any successor 

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plan, including, without limitation, the 2014 Stock and Incentive Plan, as in effect on the date such Change in Control event occurs) of the Company.  If the Company terminates this Agreement and Executive’s employment other than a Termination for Cause (and other than a Termination for Disability) either (i) at any time upon or during the twenty-four (24) month period following the occurrence of a Change in Control (the “Change in Control Period”),  or (ii) within three (3) months before the occurrence of a Change in Control at the request of a third party (directly or indirectly) that consummates such Change in Control, in addition to the Accrued Obligations, Executive will be entitled to the following, subject to Section 3.8 and Section 6.17:
(i)Executive shall receive as severance pay a cash lump sum payment equal to two (2) times the sum of (i) Executive’s Base Salary and (ii) Executive’s target bonus under Section 2.2 for the year of termination.  Anything in the foregoing to the contrary notwithstanding, if the Change in Control is not also a “change in control event” (as defined in Treasury Regulation §1.409A-3(i)(5)), the severance pay described in this Section 3.5(a)(i) will be paid in accordance with the Company’s standard payroll practices in the same manner as under Section 3.4(a).
(ii)Executive shall receive a Pro Rata Bonus; 
(iii)Executive shall receive any unpaid annual bonus earned in accordance with the terms of the AIP with respect to any fiscal year preceding the date of termination, payable when annual bonuses are paid to senior executives for such year;
(iv)Executive shall become fully vested in his benefits under the Company’s Non-Qualified Deferred Compensation Plan on the date of termination and benefits under such plan will be paid in accordance with the terms of such plan; 
(v)To the extent not fully vested, all stock options, time-based restricted stock and other time-based awards held by Executive shall become vested in full on the date of termination with vested stock options remaining exercisable for six (6) months following termination of employment (or the expiration of their term, if earlier).  All PSUs and other performance-based awards shall vest and be payable at the target amount (or the amount based upon actual performance, if greater) at the time awards are generally payable for a separation from service (other than on account of death or disability) under the applicable award agreement.  Amounts with respect to PSUs or other awards (other than restricted stock or stock options) shall be paid in a manner that would not otherwise subject the award to any additional tax under Code Section 409A.  Notwithstanding anything in this Section 3.5(a)(v) to the contrary, any LTI awards intended to be performance based compensation for purposes of Section 162(m) of the Code will only become vested and payable if the applicable Section 162(m) performance goal or goals have been met ;   
(vi)In addition, Executive shall be entitled to continued participation for eighteen (18) months in the Company’s medical, dental and vision welfare benefit plans which cover Executive (and his eligible dependents) following termination of employment upon the same terms and conditions in effect for active employees of the Company subject to Executive’s continued co-payment of premiums for such coverage, to the extent that the terms of such plans permit Executive’s continued participation during such period; provided, in the event Executive obtains other employment and becomes covered by the other employer’s plan(s) that offers substantially similar or more favorable benefits, determined on a benefit-by-benefit and coverage-by-coverage basis, such continuation of benefits by the Company shall immediately cease.  The continuation of medical, dental and vision benefits under this Section 3.5 shall be conterminous with, and reduce the period of coverage and count against, Executive’s right to healthcare continuation benefits under COBRA.  In the event that the Company determines that it cannot provide the coverage described in this Section 3.5(a)(vi) without penalties or adverse tax consequences to the Company, the Company shall pay directly to Executive a taxable lump-sum cash amount equal to the then-unpaid amount of the Company’s portion of the premium for such coverage, provided that such cash payment does not result in any penalties or adverse tax consequences to the Company; and
(vii)Executive outplacement services as arranged and paid by the Company, consistent with the benefit for other executive officers under the Company’s Senior Executive Change in Control Plan.
(b)In the event of a termination of Executive by the Company other than a Termination for Cause (and other than a Termination for Disability) (i) during the Change in Control Period or (ii) within three (3) months before the occurrence of a Change in Control at the request of a third party (directly or indirectly) that consummates such Change in Control, Executive acknowledges that he will not be entitled to any payments under Section 3.4 and that the Company shall have no obligations or liability to him under this Agreement other than the obligations set forth in 

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this Section 3.5.  Subject to Section 3.8 and Section 6.17, the severance payment under Section 3.5(a)(i) shall be made on the first payroll date following the Release Date.
3.6    VOLUNTARY TERMINATION.  
(a)Without Material Breach by the Company.   Executive may voluntarily terminate this Agreement and his employment hereunder (other than on account of a Material Breach by the Company as defined in Section 3.6(b) below) by giving the Company sixty (60) days advance written notice of such termination.  In the event Executive voluntarily terminates his employment for any reason during the Term (other than on account of a Material Breach by the Company) all payments to Executive under Section 2 shall cease, with the exception of the Accrued Obligations.
(b)Following a Material Breach by the Company.   In the event that (i) the Company shall commit a “Material Breach” (as defined below), (ii) Executive gives written notice to the Company specifying the nature of such breach, and (iii) the Company shall not have remedied such breach within fourteen (14) days after receipt of such notice, Executive shall have the right and option to terminate this Agreement and his employment within ninety (90) days thereafter, which termination shall be treated as a termination other than a Termination for Cause (and other than a Termination for Disability) under Section 3.4 (in the case of a Material Breach occurring outside of the Change in Control Period) or under Section 3.5(a) (in the case of a Material Breach occu   rring during the Change in Control Period).  For purposes of this Section 3.6(b), a “Material Breach” by the Company shall mean any of the following which occur without the consent of Executive:  (A) the assignment to Executive of any duties inconsistent with his position, authority or responsibilities as contemplated by Section 1.1 hereof, or any action by the Company that results in any diminution in such position, authority or responsibilities, including, without limitation, (I) notice of non-extension of this Agreement by the Company (or its successor) pursuant to Section 3.1 or (II) Executive not being the Chief Executive Officer of the Company, or following a Change in Control, Executive not being the chief executive officer of the surviving entity in the Change in Control (excluding for these purposes an isolated and insubstantial action not taken in bad faith and, if remediable, which is remedied by the Company within fourteen (14) days after receipt of notice thereof given by Executive); (B) any failure by the Company to comply with the compensation and benefits provisions of Section 2 hereof; (C) the relocation of the Company’s principal executive offices to a location more than thirty (30) miles from its current location in Cincinnati, Ohio; or (D) Executive is no longer a member of the Board, or following a Change in Control, the board of directors of the surviving entity.  
3.7    CHANGE IN CONTROL ADJUSTMENTS.  Executive will not be entitled to any payment (including tax gross-up payments) in respect of any taxes he may owe pursuant to Section 4999 of the Code.  In the event that any change in control benefits or other benefits otherwise payable to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Code, and (ii) but for this Section 3.7, would be subject to the excise tax imposed by Section 4999 of the Code, then any change in control benefits and other benefits hereunder shall be either (x) delivered in full, or (y) delivered as to such lesser extent which would result in no portion of such benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income and employment taxes and the excise tax imposed by Section 4999 of the Code (and any equivalent state or local excise taxes), results in the receipt by Executive on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code.  Unless the Company and Executive otherwise agree in writing, any determination required under this Section 3.7 will be made in writing by independent public accountants as the Company and Executive agree (the “Accountants”), whose determination will be conclusive and binding upon Executive and the Company for all purposes.  For purposes of making the calculations required by this Section 3.7, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The Company and Executive agree to furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this provision.  The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this provision.  Any reduction in payments and/or benefits required by this provision shall occur in the following order: (1) reduction of cash payments; (2) reduction of vesting acceleration of equity awards; and (3) reduction of other benefits paid or provided to Executive; provided that any reductions of payments or benefits will first occur from payments or benefits which are not subject to Code Section 409A (as defined in Section 6.17) and then from payments or benefits which are subject to Code Section 409A and with any reductions occurring 

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first from the latest payment to be made or benefit to be provided and continuing in such reverse order until no further reductions are required.  In the event that acceleration of vesting of equity awards is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant for Executive’s equity awards.  If two or more equity awards are granted on the same date, each award will be reduced on a pro-rata basis.   
3.8    RELEASE; COMPLIANCE WITH COVENANTS; RESIGNATIONS.  Any payments, vesting or benefits made or provided pursuant to Section 3.4 or Section 3.5 hereof (other than the Accrued Obligations) are subject to Executive’s compliance with the provisions of Section 4 hereof, other than inadvertent, immaterial violations of such provisions that are cured promptly upon written notice of such violation delivered to Executive by the Company.  In addition, Executive’s rights with respect to any payments, vesting or benefits made or provided pursuant to Section 3.4 or Section 3.5 hereof (other than the Accrued Obligations) will be forfeited unless:
(a)    prior to the date that is thirty (30) days after Executive’s termination of employment (the “Release Date”), Executive delivers to the Company a fully executed general release of all claims against the Company (other than claims to enforce the provisions of Section 3.4, Section 3.5 or Section 5, and Accrued Obligations and other claims that cannot by law be waived) in accordance with the Company’s usual form of release of claims then in use for executive separations (the “Release”) that has become non-revocable prior to the Release Date; and 
(b)       Executive delivers to the Company a resignation from all offices, directorships and fiduciary positions with the Company, its affiliates and employee benefit plans prior to the Release Date.   
Notwithstanding any provision of this Agreement to the contrary, no payments, vesting or benefits made or provided pursuant to Section 3.4 or Section 3.5 hereof (other than the Accrued Obligations) will be paid, vest or be provided prior to the Release Date.  In the event that Executive dies before all payments pursuant to Section 3.4 or Section 3.5 have been paid, all remaining payments shall be made to the beneficiary specifically designated by Executive in writing prior to his death, or, if no such beneficiary was designated (or the Company is unable in good faith to determine the beneficiary designated), to the personal representative of his estate.  For the avoidance of doubt, if Executive dies after his termination of employment and prior to the Release Date and prior to the date on which the requirements of Section 3.8(a) and (b) have been satisfied, the payments and benefits described in the prior sentence shall be provided without regard to whether the requirements of Section 3.8(a) and (b) are satisfied.   
SECTION 4RESTRICTIVE COVENANTS
4.1    NONDISCLOSURE OF CONFIDENTIAL INFORMATION.
(a)Executive acknowledges that during the course of Executive’s employment with the Company, Executive has had or will have access to, and knowledge of, certain information that the Company considers confidential, and the release of such information to unauthorized persons would be extremely detrimental to the Company.  As a consequence, Executive hereby agrees and acknowledges that Executive owes a duty to the Company not to disclose, and agrees that without the prior written consent of the Company, at any time, either during or after Executive’s employment with the Company, Executive will not communicate, publish or disclose, to any person anywhere or use, any Confidential Information (as hereinafter defined), except as may be necessary or appropriate to conduct Executive’s duties hereunder, provided Executive is acting in good faith and in the best interest of the Company, or as may be required by law or judicial process.  Executive will use reasonable best efforts at all times to hold in confidence and to safeguard any Confidential Information from falling into the hands of any unauthorized person.  Executive will return to the Company all Confidential Information in Executive’s possession or under Executive’s control whenever the Company shall so request, and in any event will promptly return all such Confidential Information if Executive’s relationship with the Company is terminated for any reason and will not retain any copies thereof except that Executive may retain copies of his own employment information relating to the terms, conditions, benefits and performance of his employment pursuant to this Employment Agreement.  For purposes hereof, the term “Confidential Information” shall mean any information used by or belonging or relating to any member of the Company that is not known generally to the industry in which the Company is or may be engaged and which the Company maintains on a confidential basis, including, without limitation, any and all trade secrets and proprietary information, information relating to the Company’s businesses and services, Executive information, customer lists and records, business processes, procedures or standards, know-how, manuals, business strategies, records, financial information, in each case whether or not reduced to writing or stored electronically, as well as any information that any member of the Company advises Executive should be treated as confidential information.  Further, Confidential Information shall not include information 

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which is independently obtained from a third party whose disclosure violates no duty of confidentiality to the Company or which is or becomes publicly available through no fault of Executive.
(b)Executive acknowledges and agrees that all analyses, reports, proposals, software, documentation, machine code and other intellectual property owned by the Company (collectively, the “Company’s Intellectual Property”) are and shall remain the sole and exclusive property of the Company, or as otherwise may be noted, and that in no event shall Executive have any ownership interest therein.  In that connection, Executive hereby irrevocably assigns, transfers and conveys to the Company all of his right, title and interest, if any, in and to the Company’s Intellectual Property, including any rights Executive may have to patent, copyright, trade secret or other proprietary rights in the Company’s Intellectual Property.  Executive agrees to assist the Company in every proper way to obtain and from time to time enforce patents, copyrights, trade secrets and all other proprietary and intellectual property rights and interest in and to all the Company’s Intellectual Property in any and all countries, and to that end Executive will execute and deliver all documents and other papers and materials for use in applying for, obtaining and enforcing such patents, copyrights, trademarks and other proprietary and intellectual property rights and interests, as the Company may request in writing, together with any assignments thereof to the Company or persons designated by it.  Executive agrees that the Company is appointed as his attorney to execute all such instruments and do all such things for the purpose of assuring to the Company (or its designee) the full benefit of the provisions of this paragraph.
4.2    NONINTERFERENCE WITH CLIENTS OR EXECUTIVES.  Executive agrees that, during the period of Executive’s employment with the Company and for a period of eighteen (18) months from the date of termination of employment for any reason, whether voluntary or involuntary (the “Restricted Period”), Executive shall not, on Executive’s own behalf or on behalf of any other person or entity, solicit or in any manner influence or encourage any current or prospective client, customer, Executive or other person or entity that has a business relationship with the Company, to terminate or limit in any way their relationship with the Company, or interfere in any way with such relationship, and/or (b) solicit or in any manner influence or discourage any prospective client or customer that was contacted by the Company within the twelve (12)-month period preceding Executive’s date of termination from entering into a business relationship with the Company.
4.3    NONCOMPETITION.  Executive agrees that, during the Restricted Period, Executive shall neither directly nor indirectly, engage or hold an interest in any business engaged in the Business in those geographic areas in which the Company conducts the Business, nor directly or indirectly, have any interest in, own, manage, operate, control, be connected with as a stockholder (other than as a stockholder of less than five percent (5%) of the issued and outstanding stock of a publicly held corporation), joint venturer, officer, director, partner, employee or consultant, or otherwise engage or invest or participate in the Business in those geographic areas in which the Company or its subsidiaries engage in the Business.  For purposes of this Agreement, "Business" shall mean (i) the provision of pharmaceutical products and ancillary services, including, but not limited to, specialty pharmaceutical products and support services, and the provision of related pharmacy consulting, data management services and medical supplies to long-term care facilities, other healthcare service providers and recipients of services from such facilities and (ii) any other business in which the Company or its subsidiaries are engaged in during the Restricted Period; provided, however, that, for the avoidance of doubt, the Company shall not be considered to be a wholesale pharmaceutical distributor, pharmacy benefit manager, insurer or pharmaceutical or biotech manufacturer.   Notwithstanding the foregoing, for purposes of this Section 4.3, the determination of the geographic region and the definition of Business for periods after Executive’s termination of employment shall be determined as of the date of Executive’s termination date and shall not be expanded thereafter, except that the definition of Business shall be expanded to include any business in which the Company or its subsidiaries initially engage in following the date of such termination if the Company or any such subsidiary took significant steps to enter such business prior to the date of such termination.
4.4    ENFORCEMENT.  Executive acknowledges and agrees that the provisions of this Section 4 are reasonable and necessary for the successful operation of the Company.  Executive further acknowledges that if he breaches any provision of this Section 4, the Company will suffer irreparable injury.  It is therefore agreed that the Company shall have the right to enjoin any such breach or threatened breach, if ordered by a court of competent jurisdiction.  The existence of this right to injunctive and other equitable relief shall not limit any other rights or remedies that the Company may have at law or in equity including, without limitation, the right to monetary and compensatory damages.  In addition, Executive further acknowledges that if he breaches any provision of this Section 4 following his termination of employment with the Company, Executive will forfeit the right to any unpaid severance 

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or other payments or vesting due under this Agreement, but Executive shall not forfeit payment of earned wages as defined by applicable law.  If any provision of this Section 4 is determined by a court of competent jurisdiction to be unenforceable in the manner set forth herein, Executive and the Company agree that it is the intention of the parties that such provision should be enforceable to the maximum extent possible under applicable law.  If any provisions of this Section 4 are held to be invalid or unenforceable, such invalidation or unenforceability shall not affect the validity or enforceability of any other provision of this Section 4 (or any portion thereof).  For purposes of the restrictions of this Section 4, references to the “Company” include reference to its subsidiaries.
SECTION 5INDEMNIFICATION
The Company shall indemnify Executive to the fullest extent permitted by the Company’s charter, by-laws and applicable law.  The Company shall cover Executive under any contract of directors and officers liability insurance both during and, while potential liability exists, after the term of this Agreement and Executive’s employment to the same extent as the Company covers its other officers and directors.
SECTION 6MISCELLANEOUS PROVISIONS
6.1ASSIGNMENT AND SUCCESSORS.  The rights and obligations of the Company under this Agreement may be freely assigned (including, but not limited to assignment to an affiliate of the Company for purposes of payroll) and shall inure to the benefit of and be binding upon the successors and assigns of the Company.  Executive’s obligation to provide services hereunder may not be assigned to or assumed by any other person or entity.
6.2NOTICES.  All notices, requests, demands or other communications under this Agreement shall be in writing and shall only be deemed to be duly given (a) on the date of delivery if delivered by hand, (b) on the date of transmission, if delivered by confirmed facsimile or by email, (c) on the first business day following the date of deposit if delivered by guaranteed overnight delivery service, or (d) on the fourth business day following the date delivered or mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:
If to the Company, to:
Omnicare, Inc.
900 Omnicare Center
201 East Fourth Street
Cincinnati OH 45202
ATTN: General Counsel
Facsimile:  (513) 719-1488
Email:  Alexander.Kayne@omnicare.com
If to Executive to his last known address shown on the payroll records of the Company.
6.3SEVERABILITY.  Any provision of this Agreement which is deemed invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction and subject to this paragraph, be ineffective to the extent of such invalidity, illegality or unenforceability, without affecting in any way the remaining provisions hereof in such jurisdiction or rendering that or any other provisions of this Agreement invalid, illegal, or unenforceable in any other jurisdiction.  If any covenant should be deemed invalid, illegal or unenforceable because its scope is considered excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable.
6.4COMPLETE AGREEMENT.  This Agreement contains the entire agreement between the parties and supersedes previous verbal and written discussions, negotiations, agreements or understandings between the parties, including, without limitation, the Original Employment Agreement. 
6.5AMENDMENT AND WAIVER.  This Agreement may be modified, amended or waived only by a written instrument signed by all the parties hereto.  No waiver or breach of any provision hereof shall be a waiver of any future breach, whether similar or dissimilar in nature.
6.6APPLICABLE LAW.  This Agreement has been made and its validity, performance and effect shall be determined in accordance with the laws of the State of Delaware.

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6.7CLAWBACK.   In addition to any compensation recovery (clawback) which may be required by law and regulation, Executive acknowledges and agrees that any compensation paid or awarded to Executive in connection with his employment with the Company shall be subject to any clawback requirements as may be required from time to time by law or regulation or as set forth in the Company’s corporate governance guidelines, the Company’s Compensation Clawback Policy or any similar or successor provisions as may be in effect from time to time.
6.8COMPLIANCE WITH POLICY.  Executive acknowledges and agrees to be bound by the Company’s “Code of Business Conduct and Ethics” generally applicable to all employees in addition to its Code of Ethics for the Chief Executive Officer and Senior Financial Officers.  In addition, Executive will comply with any pledging and hedging policies of the Company in effect at any time during the Term.
6.9STOCK OWNERSHIP GUIDELINES.  Executive agrees to comply with the Company’s stock ownership guidelines for the Chief Executive Officer.
6.10CONSENT TO JURISDICTION.  The parties hereby (a) agree that any suit, proceeding or action at law or in equity (hereinafter referred to as an “Action”) arising out of or relating to this Agreement must be instituted in state or federal court located within Hamilton County, Ohio (b) waive any objection which he or it may have now or hereafter to the laying of the venue of any such Action, (c) irrevocably submit to the jurisdiction of any such court in any such Action, and (d) hereby waive any claim or defense of inconvenient forum.  The parties irrevocably agree that service of any and all process which may be served in any such Action may be served upon him or it by registered mail to the address referred to in Section 6.2 hereof or to such other address as the parties shall designate in writing by notice duly given in accordance with Section 6.2 hereof and that such service shall be deemed effective service of process upon the parties in any such Action.  The parties irrevocably agree that any such service of process shall have the same force and validity as if service were made upon him or it according to the law governing such service in the State of Ohio, and waives all claims of error by reason of any such service.
6.11COUNTERPARTS.  This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.
6.12INTERPRETATION.  The headings contained in this Agreement are for reference purposes only and shall not affect in any ways the meaning or interpretation of this Agreement.  The language in all parts of this Agreement shall in all cases be construed according to its fair meaning, and not strictly for or against any party hereto.  In this Agreement, unless the context otherwise requires, the masculine, feminine and neuter genders and the singular and the plural include one another.
6.13NON-WAIVER OF RIGHTS AND BREACHES.  No failure or delay of any party herein in the exercise of any right given to such party hereunder shall constitute a waiver thereof unless the time specified herein for the exercise of such right has expired, nor shall any single or partial exercise of any right preclude other or further exercise thereof or of any other right.  The waiver of a party hereto of any default of any other party shall not be deemed to be a waiver of any subsequent default or other default by such party.
6.14NO MITIGATION OR OFFSET.  Except as provided in Sections 3.4(f) and 3.5(a)(vi) relating to future benefit coverage, Executive shall not be required to seek other employment or to reduce any severance benefit payable to him under Section 3 hereof, and no such severance benefit shall be reduced on account of any compensation received by Executive from the Company or any other employment.  The Company’s obligations to Executive hereunder, including, without limitation, any obligation to provide severance benefits, shall not be subject to set-off or counterclaim in respect of any debts or liabilities of Executive to the Company.
6.15SURVIVAL.  The provisions of Section 4 and Section 5 shall survive the termination of the Agreement (and any concurrent or subsequent termination of Executive’s employment).  The provisions of Section 3 shall survive any termination of Executive’s employment during the Term of the Agreement.
6.16SUPERSEDING AGREEMENT.  In the event of any conflict between the terms of this Agreement and the terms of any Company plan, program or policy, the terms of this Agreement shall control; provided that the Company shall have an appropriate opportunity to conform the terms of any such conflicting plan, program or policy to the terms of this Agreement.

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6.17SECTION 409A. Anything in this Agreement to the contrary notwithstanding:
(a)It is intended that any amounts payable under this Agreement shall either be exempt from or comply with Section 409A of the Code and all regulations, guidance and other interpretive authority issued thereunder (“Code Section 409A”) so as not to subject Executive to payment of any additional tax, penalty or interest imposed under Code Section 409A.  The provisions of this Agreement shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Code Section 409A yet preserve (to the nearest extent reasonably possible) the intended benefit payable to Executive.
(b)To the extent that the reimbursement of any expenses or the provision of any in-kind benefits under this Agreement is subject to Code Section 409A, (i) the amount of such expenses eligible for reimbursement, or in-kind benefits to be provided, during any one calendar year shall not affect the amount of such expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; (ii) reimbursement of any such expense shall be made by no later than December 31 of the year following the calendar year in which such expense is incurred; and (iii) Executive’s right to receive such reimbursements or in-kind benefits shall not be subject to liquidation or exchange for another benefit.
(c)A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits that the Company determines may be considered nonqualified deferred compensation under Code Section 409A upon or following a termination of employment unless such termination is also a Separation from Service and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean such a Separation from Service.  
(d)If Executive is a “specified employee” within the meaning of Treasury Regulation Section 1.409A -1(i) as of the date of Executive’s Separation from Service, then any payment or benefit pursuant to Sections 3.4 or Section 3.5 or pursuant to any other provision of this Agreement on account of Executive’s Separation from Service, to the extent such payment (after taking into account all exclusions applicable to such payment under Code Section 409A) is properly treated as deferred compensation subject to Code Section 409A, shall not be made until the first business day after (i) the expiration of six (6) months from the date of Executive’s Separation from Service, or (ii) if earlier, the date of Executive’s death (the “Delayed Payment Date”).  On (or within five business days after) the Delayed Payment Date, there shall be paid to Executive or, if Executive has died, to the representative of Executive’s estate, in a single cash lump sum, an amount equal to the aggregate amount of the payments delayed pursuant to the preceding sentence, plus interest thereon, compounded monthly, at an annual rate equal to the Delayed Payment Interest Rate (as defined below) computed from the date on which each such delayed payment otherwise would have been made to Executive until the Delayed Payment Date.  For purposes of the foregoing, the “Delayed Payment Interest Rate” shall mean the JPMorgan Chase prime interest rate for the first business day of the month in which the Separation from Service occurs.
6.18    WITHHOLDING. All amounts payable under this Agreement shall be subject to the withholding of all applicable taxes and deductions required by any applicable law. 
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

OMNICARE INC.    EXECUTIVE

	
			
	/s/ Alexander M. Kayne
	 
	/s/ Nitin Sahney

	By: Alexander M. Kayne
	 
	By: Nitin Sahney

	Title: SVP, General Counsel & Secretary
	 
	Date: April 14, 2014

	Date: April 14, 2014
	 
	 

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