Document:

EX-10.1.9

 

	 	 	 	 	 

Exhibit 10.1.9

CARDINAL HEALTH, INC.

RESTRICTED SHARES AGREEMENT

     On August 15, 2006 (the “Grant Date”), Cardinal Health, Inc., an Ohio corporation (the
“Company”), has awarded to [employee name] (“Awardee”), [# of shares] common shares, without par
value, of the Company (the “Restricted Shares”). The Restricted Shares have been granted pursuant
to the Cardinal Health, Inc. 2005 Long-Term Incentive Plan, as amended (the “Plan”), and shall be
subject to all provisions of the Plan, which are incorporated herein by reference, and shall be
subject to the provisions of this Restricted Shares Agreement (this “Agreement”). Capitalized
terms used in this Agreement which are not specifically defined shall have the meanings ascribed to
such terms in the Plan.

     1. Vesting. Subject to the provisions set forth elsewhere in this Agreement, the
Restricted Shares shall vest in accordance with the following schedule: 33.33% of the Restricted
Shares shall vest on the first anniversary of the Grant Date, an additional 33.33% of the
Restricted Shares shall vest on the second anniversary of the Grant Date, and the final 33.34% of
the Restricted Shares shall vest on the third anniversary of the Grant Date (each such vesting
date, the “Vesting Date” with respect to the Restricted Share Units scheduled to vest on such
date). Notwithstanding the foregoing, in the event of a Change of Control prior to Awardee’s
Termination of Employment, the Restricted Shares shall vest in full.

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

     3. Termination of Employment. Except as set forth below, if a Termination of
Employment occurs prior to the vesting of a Restricted Share, such Restricted Share shall be
forfeited by Awardee. If a Termination of Employment occurs prior to the vesting in full of the
Restricted Shares by reason of Awardee’s death, then the restrictions with respect to any unvested
Restricted Shares shall lapse and such Restriced Shares shall vest in full and not be forfeited.

     4. Triggering Conduct/Competitor Triggering Conduct. As used in this Agreement,
“Triggering Conduct” shall include the following: disclosing or using in any capacity other than as
necessary in the performance of duties assigned by the Company and its Affiliates (collectively,
the “Cardinal Group”) any confidential information, trade secrets or other business sensitive
information or material concerning the Cardinal Group; violation of Company policies, including
conduct which would constitute a breach of any of the Certificates of Compliance with Company
Policies and/or the Certificates of Compliance with Company Business Ethics Policies signed by
Awardee; directly or indirectly employing, contacting concerning employment, or participating in
any way in the recruitment for employment of (whether as an employee, officer, director, agent,
consultant or independent contractor), any person who was or is an employee, representative,
officer or director of the Cardinal Group at any time within the 12 months prior to Awardee’s
Termination of Employment; any action by Awardee and/or his or her representatives that either does
or could reasonably be expected to undermine, diminish or otherwise damage the relationship between
the Cardinal Group and any of its customers, potential customers, vendors and/or suppliers that
were known to Awardee; and breaching any provision of any employment or severance agreement with a
member of the Cardinal Group. As used in this Agreement, “Competitor Triggering Conduct” shall
include, either during Awardee’s employment or within one year following Termination of Employment,
accepting employment with or serving as a consultant or advisor or in any other capacity to an
entity that is in competition with the business conducted by any member of the Cardinal Group (a
“Competitor”), including, but not limited to, employment or another business relationship with any
Competitor if Awardee has been introduced to trade secrets, confidential information or business
sensitive information during Awardee’s employment with the Cardinal Group and such information
would aid the Competitor because the threat of disclosure

 

 

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

     5. Special Forfeiture/Repayment Rules. For so long as Awardee continues as an
employee with the Cardinal Group and for three years following Termination of Employment regardless
of the reason, Awardee agrees not to engage in Triggering Conduct. If Awardee engages in
Triggering Conduct during the time period set forth in the preceding
sentence or in
Competitor Triggering Conduct during the time period referenced in the definition of “Competitor
Triggering Conduct” set forth in Paragraph 4 above, then:

     (a) any Restricted Shares that have not yet vested shall immediately and automatically
terminate, be forfeited, and shall cease to exist; and

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

     6. Right of Set-Off. By accepting these Restricted Shares, Awardee consents to a
deduction from, and set-off against, any amounts owed to Awardee by any member of the Cardinal
Group from time to time (including, but not limited to, amounts owed to Awardee as wages, severance
payments or other

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fringe benefits) to the extent of the amounts owed to the Cardinal Group by
Awardee under this Agreement.

     7. Shareholder Rights and Restrictions. Except with regard to the disposition of
Restricted Shares and the receipt of dividends, Awardee shall generally have all rights of a
shareholder with respect to the Restricted Shares from the Grant Date, including, without
limitation, the right to vote such Restricted Shares, but subject, however, to those restrictions
in this Agreement or in the Plan. Dividends with respect to the Restricted Shares shall be accrued
until the Vesting Date for such Restricted Shares and paid thereon (subject to the same vesting
requirements as the underlying Restricted Share award).

     8. Withholding Tax.

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

     (b) Payment of Withholding Taxes. Prior to any event in connection with
the Restricted Shares (e.g., vesting) that the Company determines may result in any domestic or
foreign tax withholding obligation, whether national, federal, state or local, including any
employment tax obligation (the “Tax Withholding Obligation”), Awardee is required to arrange for
the satisfaction of the minimum amount of such Tax Withholding Obligation in a manner acceptable to
the Company. Unless Awardee elects to satisfy the Tax Withholding Obligation by an alternative
means that is then permitted by the Company, Awardee’s acceptance of this Agreement constitutes
Awardee’s instruction and authorization to the Company to withhold on Awardee’s behalf the number
of Restricted Shares when the Restricted Shares become vested as the Company determines to be
sufficient to satisfy the Tax Withholding Obligation. In the case of any amounts withheld for
taxes pursuant to this provision in the form of shares, the amount withheld shall not
exceed the minimum required by applicable law and regulations.

     9. Beneficiary Designation. Awardee may designate a beneficiary to receive any
Restricted Shares to which the Awardee is entitled and which vest as a result of Awardee’s death.
Notwithstanding the foregoing, if Awardee engages in Triggering Conduct or Competitor Triggering
Conduct as herein defined, the Restricted Shares subject to such beneficiary designation shall be
subject to the Special Forfeiture/Repayment Rules and the Company’s Right of Set-Off or other right
of recovery set forth in this Agreement, and all rights of the beneficiary shall be subordinated to
the rights of the Company pursuant to such provisions of this Agreement. Awardee acknowledges that
the Company may exercise all rights under this Agreement and the Plan against Awardee and Awardee’s
estate, heirs, lineal descendants and personal representatives and shall not be limited to
exercising its rights against Awardee’s beneficiary.

     10. Governing Law/Venue. This Agreement shall be governed by the laws of the State of
Ohio, without regard to principles of conflicts of law, except to the extent superseded by the laws
of the United States of America. The parties agree and acknowledge that the laws of the State of
Ohio bear a substantial relationship to the parties and/or this Agreement and that the Restricted
Shares and benefits granted herein would not be granted without the governance of this Agreement by
the laws of the State of Ohio. In addition, all legal actions or proceedings relating to this
Agreement shall be brought in state or federal courts located in Franklin County, Ohio, and the
parties executing this Agreement hereby consent to the personal jurisdiction of such courts.
Awardee acknowledges that the covenants contained in

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Paragraphs 4 and 5 of this Agreement are reasonable in nature, are fundamental for the protection of the Company’s legitimate business and
proprietary interests, and do not adversely affect Awardee’s ability to earn a living in any
capacity that does not violate such covenants. The parties further agree that in the event of any
violation by Awardee of any such covenants, the Company will suffer immediate and irreparable
injury for which there is no adequate remedy at law. In the event of any violation or attempted
violations of the restrictions and covenants of Awardee contained in this Agreement, the Cardinal
Group shall be entitled to specific performance and injunctive relief or other equitable relief,
including the issuance ex parte of a temporary restraining order, without any showing of
irreparable harm or damage, such irreparable harm being acknowledged and admitted by Awardee, and
Awardee hereby waives any requirement for the securing or posting of any bond in connection with
such remedy, without prejudice to the rights and remedies afforded the Cardinal Group hereunder or
by law. In the event that it becomes necessary for the Cardinal Group to institute legal
proceedings under this Agreement, Awardee shall be responsible to the Company for all costs and
reasonable legal fees incurred by the Company with regard to such proceedings. Any provision of
this Agreement which is determined by a court of competent jurisdiction to be invalid or
unenforceable should be construed or limited in a manner that is valid and enforceable and that
comes closest to the business objectives intended by such provision, without invalidating or
rendering unenforceable the remaining provisions of this Agreement.

     11. Action by the Administrator. The parties agree that the interpretation of this
Agreement shall rest exclusively and completely within the sole discretion of the Administrator.
The parties agree to be bound by the decisions of the Administrator with regard to the
interpretation of this Agreement and with regard to any and all matters set forth in this
Agreement. The Administrator may delegate its functions under this Agreement to an officer of the
Cardinal Group designated by the Administrator (hereinafter the “Designee”). In fulfilling its
responsibilities hereunder, the Administrator or its Designee may rely upon documents, written
statements of the parties or such other material as the Administrator or its Designee deems
appropriate. The parties agree that there is no right to be heard or to appear before the
Administrator or its Designee and that any decision of the Administrator or its Designee relating
to this Agreement, including, without limitation, whether particular conduct constitutes Triggering
Conduct or Competitor Triggering Conduct, shall be final and binding unless such decision is
arbitrary and capricious.

     12. Prompt Acceptance of Agreement. The Restricted Shares grant evidenced by this
Agreement shall, at the discretion of the Administrator, be forfeited if this Agreement is not
manually executed and returned to the Company, or electronically executed by Awardee by indicating
Awardee’s acceptance of this Agreement in accordance with the acceptance procedures set forth on
the Company’s third-party equity plan administrator’s web site, within 90 days of the Grant Date.

     13. Electronic Delivery and Consent to Electronic Participation. The
Company may, in its sole discretion, decide to deliver any documents related to the
Restricted Shares grant under and participation in the Plan or future Restricted Shares
that may be granted under the Plan by electronic means or to request Awardee’s consent
to participate in the Plan by electronic means. Awardee hereby consents to receive
such documents by electronic delivery and to participate in the Plan through an on-line
or electronic system established and maintained by the Company or another third party
designated by the Company, including the acceptance of restricted share grants and the
execution of restricted share agreements through electronic signature.

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     14. Notices. All notices, requests, consents and other communications required or
provided under this Agreement to be delivered by Awardee to the Company will be in writing and will
be deemed sufficient if delivered by hand, facsimile, nationally recognized overnight courier, or
certified or registered mail, return receipt requested, postage prepaid, and will be effective upon
delivery to the Company at the address set forth below:

Cardinal Health, Inc.

7000 Cardinal Place

Dublin, Ohio 43017

Attention: Chief Legal Officer

Facsimile: (614) 757-2797

All notices, requests, consents and other communications required or provided under this Agreement
to be delivered by the Company to Awardee may be delivered by e-mail or in writing and will be
deemed sufficient if delivered by e-mail, hand, facsimile, nationally recognized overnight courier,
or certified or registered mail, return receipt requested, postage prepaid, and will be effective
upon delivery to the Awardee.

	 	 	 	 	 	 	 
	 

	 	CARDINAL HEALTH, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	 

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ACCEPTANCE OF AGREEMENT

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

6EX-10.1.10

 

Exhibit 10.1.10

CARDINAL HEALTH, INC.

RESOLUTIONS OF THE HUMAN RESOURCES AND

COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS

ADOPTED ON AUGUST 7, 2007

     NOW, THEREFORE, BE IT RESOLVED, that effective immediately, the terms of all outstanding
Options, Restricted Shares and RSUs granted under the Cardinal Health, Inc. 2005 Long-Term
Incentive Plan, as amended (the “2005 LTIP”) (other than those Options, Restricted Shares and RSUs
that may provide for terms more beneficial to the grantee) shall be amended: (i) to provide that
“retirement” shall mean termination of employment (other than by reason of death or Disability and
other than in the event of termination for Cause) from the Company and its affiliates: (a) after
attaining age fifty-five, and (b) having at least ten years of continuous service with the Company
and its affiliates, including service with an affiliate of the Company prior to the time that such
affiliate became an affiliate of the Company; (ii) to provide for the immediate ratable vesting of
Options, Restricted Shares and RSUs upon termination of employment when the grantee is
retirement-eligible, with the vested Options exercisable by the grantee through the remaining term
of the Option, and for purposes of the amended awards, the ratable portion shall, with respect
to each applicable installment of an award, be an amount equal to such installment of the award
scheduled to vest on each future vesting date multiplied by a fraction, the numerator of which
shall be the number of days from the grant date through the date of termination, and the
denominator of which shall be the number of days from the grant date through such vesting date; (iii) to provide for the immediate vesting of all Options,
Restricted Shares and RSUs in the event of death or disability of the grantee, with the vested
Options exercisable by the grantee through the remaining term of the Option;

     RESOLVED FURTHER, that, to the extent that the 2005 LTIP Option Agreements, Restricted Share
Agreements and RSU Agreements are inconsistent with the foregoing resolutions, they shall be deemed
to be amended accordingly.

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