Document:

Exhibit 4.17

Exhibit 4.17

FIRST AMENDMENT
TO THE
CARDINAL HEALTH 401(K) SAVINGS PLAN FOR EMPLOYEES OF PUERTO RICO
(AMENDED AND RESTATED EFFECTIVE AS OF JANUARY 1, 2011)

BACKGROUND INFORMATION
		
	A.
	Cardinal Health, Inc. (“Cardinal Health”) previously adopted and currently maintains the Cardinal Health 401(k) Savings Plan for Employees of Puerto Rico (the “Plan”) for the benefit of eligible employees of Cardinal Health and its subsidiaries and affiliates working in Puerto Rico.

		
	B.
	Section 11.02 of the Plan permits the amendment of the Plan at any time.

		
	C.
	The Cardinal Health, Inc. Financial Benefit Plans Committee (the “Committee”) is authorized to approve the amendment of the Plan in accordance with the authority delegated by the Human Resources and Compensation Committee of the Board of Directors of Cardinal Health.

		
	D.
	The Committee desires to amend the Plan to incorporate the additional qualification requirements under the Internal Revenue Code for a New Puerto Rico, as amended pursuant to Internal Revenue Circular 11-10 issued by the Puerto Rico Department of the Treasury on December 16, 2011.

Amendment to the Cardinal Health 401(k) Savings Plan for Employees of Puerto Rico
The Plan is hereby amended as follows, effective as of January 1, 2011:
		
	1.
	A new Section 5.16 “Direct Rollovers” is added the Plan to read as follows:

Section 5.16    Direct Rollovers. Notwithstanding any other provisions of the Plan to the contrary, a Participant or Beneficiary may elect at the time and in the manner prescribed by the Administrative Committee, to have all or any portion of the Nonforfeitable Account Balance following a separation from service or plan termination, that qualifies as a rollover under Section 1081.01(b)(2) of the Code, paid directly to an individual retirement account or annuity described in Code Section 1081.02 or to a qualified trust or annuity contract described in Code Section 1081.01(a) that agrees to account separately for amounts so transferred, specified by the Participant or Beneficiary.  The Administrative Committee shall give notice of the right to elect a direct rollover and an explanation of the withholding consequence of not making the election.
		
	2.
	A new Section 5.17 “Distributions Subject to Special Tax Rate” is added to the Plan to read as follows:

Section 5.17    Distributions Subject to Special Tax Rate.    Lump sum payments made to a Participant or Beneficiary upon “separation from service” or “plan 

termination” as such phrase is used in Section 1081.01(b) of the Code, in which at least ten (10) percent of all trust assets credited to the account of the Participant or Beneficiary, determined based on the average balance of the trust investments during the Plan Year during which the distribution is made and each of the two plan years preceding the date of the distribution, has been invested in “property located in Puerto Rico” as such phrase is defined under Section 7.06 of the Plan, the amount of such lump sum payments in excess of the amount contributed by the Participant or Beneficiary which has been taxed to him, shall be considered long-term capital gain subject to a ten (10) percent income tax rate.
		
	3.
	Section 6.05(E) “Repayment Terms” shall be amended in its entirety to read as follows:

Section 6.05(E)    Repayment Terms.    The terms and conditions of each loan shall be determined by mutual agreement between the Administrative Committee or the Trustee and the Participant. The Administrative Committee shall adopt such procedures and take all necessary actions to ensure that each loan is repaid on schedule by its maturity date, including requiring repayment of the loan by payroll deduction whenever possible. Provided that the terms of the loan shall provide for periodic repayment with payment to be no less frequent than quarterly. However, notwithstanding the foregoing provisions of Section 6.05(E), if a Participant is terminated from employment under the terms of a designated reduction in force, the Participant may continue to make loan payments on any loan balance outstanding at the time of such termination according to the procedures adopted by the Administrative Committee.
		
	4.
	Section 6.05(I) “Default” shall be amended in its entirety to read as follows:

Section 6.05(I)    Default.    Failure to make a payment within 90 days of the date the payment is due will generally constitute a default, unless the loan procedures adopted pursuant to Section 6.05 and applicable law do not so require. Notwithstanding any other provisions of the Plan to the contrary, if a loan fails to meet the requirements of Code Section 1081.01(b)(3)(E), as set forth in Section 6.05(B) and (E) of the Plan, then such loan shall be deemed a taxable distribution subject to taxation as described under Code Section 1081.01(b)(3)(E).
		
	5.
	A new Section 7.06 “Puerto Rico Investments” shall be added to the Plan to read as follows:

Section 7.06    Puerto Rico Investments.    The Administrative Committee, in its sole discretion, may include as one of the Investment Funds available, investments in property located in Puerto Rico. For purposes of this Section 7.06, the term “Investment in Property Located in Puerto Rico” shall mean investments in: (i) registered investment companies organized under the laws of Puerto Rico and subject to taxation under Code section 1112.01; (ii) fixed or variable annuities issued by a domestic insurance company or a foreign insurer that during the three years preceding the date of the distribution derived more than 80% of their gross income from Puerto Rico sources; (iii) deposits 

accounts in commercial and mutual banks, cooperatives, savings associations authorized by the U.S. government or by the Government of Puerto Rico or in any other bank organization domiciled in Puerto Rico, including, but not limited to, certificates of deposits; and (iv) any other property designated by the Puerto Rico Secretary of the Treasury through regulations or circular letter.
		
	6.
	Except as amended herein, all other Plan provisions shall remain in full force and effect. 

CARDINAL HEALTH, INC. 

By: /s/ Kendell F. Sherrer        

Its: V.P., Benefits            

Date: November 27, 2012Exhibit 4.18

Exhibit 4.18

SECOND AMENDMENT
TO THE
CARDINAL HEALTH 401(K) SAVINGS PLAN
FOR EMPLOYEES OF PUERTO RICO
(As amended and restated January 1, 2011)

Background Information

		
	A.
	Cardinal Health, Inc. (“Cardinal Health”) previously adopted and currently maintains the Cardinal Health 401(k) Savings Plan for Employees of Puerto Rico (the “Plan”) for the benefit of eligible employees of Cardinal Health and its subsidiaries and affiliates working in Puerto Rico.

		
	B.
	Section 11.02 of the Plan permits the amendment of the Plan at any time.

		
	C.
	The Cardinal Health, Inc. Financial Benefit Plans Committee (the “Committee”) is authorized to make certain amendments to the employee benefits plans maintained by Cardinal Health and the subsidiaries and affiliates of Cardinal Health, Inc., including the Plan, and is authorized to approve amendments regarding the administration of the Plan in accordance with the authority delegated by the Human Resources and Compensation Committee of the Board of Directors of Cardinal Health.

		
	D.
	The Committee desires to amend the Plan to reflect and clarify current administrative practices in connection with the transition of the custody of the Plan’s assets and administrative recordkeeping to Wells Fargo Bank, N.A.

Amendment of the Cardinal Health 401(k) Savings Plan for Employees of Puerto Rico

The Plan is hereby amended as follows, effective as of October 16, 2012:

		
	1.
	Section 1.07 of the Plan, “Catch-Up Account,” is hereby amended to read as follows:

“That portion of a Participant’s Compensation Deferral Account credited with Catch-Up Contributions under Section 3.04.B. and adjustments relating thereto.”

		
	2.
	Section 1.11 of the Plan, “Compensation Deferral Account,” is hereby amended to read as follows:

“That portion of a Participant’s Account credited with Compensation Deferral Contributions under Section 3.04.A. and Catch-Up Contributions under Section 3.04.B., and adjustments relating thereto.”

		
	3.
	Section 1.45 of the Plan, “Trustee,” is hereby amended to read as follows:

“Banco Popular de Puerto Rico, or such other entity or person(s) that subsequently may be appointed by Cardinal Health, Inc.”

		
	4.
	Section 3.14 of the Plan, “Rollover and Transfer Contributions,” is hereby amended by moving the first sentence of the second paragraph thereof to be the last sentence of the first paragraph and then by deleting the balance of the second paragraph, thereby removing any reference to making a Rollover Contribution prior to becoming a Participant in the Plan, reflecting the fact that all Employees are immediately eligible to participate.”

		
	5.
	Section 5.01 of the Plan, “Retirement,” is hereby amended to read as follows:

“Section 5.01    RETIREMENT.  Subject to Sections 5.02C. and 5.04, upon a Participant’s Separation from Service on or after attaining Normal Retirement Age, payment of the Participant’s Account shall commence to him (or to his Beneficiary if the Participant is deceased) as soon as administratively practicable after he (or his Beneficiary) files a claim for benefits in accordance with the procedures established by the Committee, as the same may be amended from time to time.  If the Participant (or his Beneficiary) does not file a claim for benefits, payment shall in any event be made no later than the time required under applicable law or by the April 1st of the calendar year after the year the Participant attains age 70.5, whichever is earlier.  A Participant who remains in the employ of the Employer after attaining Normal Retirement Age shall continue to participate in Employer contributions and may also elect to defer distribution of his Account to any later date permitted under applicable law or by the April 1st of the calendar year after the year the Participant attains age 70.5, whichever is later.  The form of payment shall be the same as for other distributions, as set forth in Sections 5.02 and 5.03 and Appendices C and D, as applicable.”
    
		
	6.
	The first paragraph of Section 5.02.D. of the Plan, “Deferral of Distribution of Account Balance until Normal Retirement Age,” is hereby amended to read as follows:

“D.    Deferral of Distribution of Account Balance.  If the Participant (and, if applicable, the Participant’s Spouse) does not file a claim for benefits in accordance with the procedures established by the Administrative Committee, as the same may be amended from time to time, and consent to the distribution in accordance with Section 5.02B., to the extent applicable, the Participant’s Account shall be held in trust until the earlier to occur of (1) the date that is as soon as administratively practicable following the date that the Participant files a claim for benefits in accordance with the procedures established by the Administrative Committee, as the same may be amended from time to time, or (2) the earlier of the date the Participant is required to commence distributions under applicable law or by the April 1st of the calendar year after the year the Participant attains age 70.5.  At that time, the Participant’s Nonforfeitable Account Balance shall be paid in accordance with the provisions of this Article V; provided, however, if the Participant dies after his Separation from Service but prior to commencing receipt of his Plan Account, then, upon notice of the death and application for benefits to the Administrative Committee filed by the Participant’s Beneficiary, the Nonforfeitable value of the Participant’s Account shall be paid to his Beneficiary in accordance with the provisions of Sections 5.04 and 5.05 of the Plan.”  

		
	7.
	Section 5.03.B of the Plan, “Annuity Starting Dates Occurring on or after January 25, 2005,” is hereby amended to include the following at the end thereof:

“If the Participant’s interest is not distributed in the form of an annuity purchased from an insurance company (if applicable) or in a single sum on or before the earlier of the date the Participant is required to commence distributions under applicable law or by the April 1st of the calendar year after the year the Participant attains age 70.5, distributions will be made in installments sufficient to satisfy any applicable minimum distribution requirements and in accordance with the provisions of Sections 5.01, 5.02, and 5.04, as necessary.”  

		
	8.
	Section 5.05 of the Plan, “Designation of Beneficiary,” is hereby amended by adding the following new paragraph to the end thereof:

“Notwithstanding the foregoing, all Participants in the Plan as of October 16, 2012, shall be required to file or complete a new designation of Beneficiary with the Administrative Committee 

or the designated Plan Administrator on or before March 31, 2013, in accordance with the procedures established by the Administrative Committee.  From and after that date, any previously filed Beneficiary designations shall no longer be in force or effect and a Participant who has failed to file or complete a designation of Beneficiary between October 16, 2012 and March 31, 2013, shall be treated as having no designation of Beneficiary on file.”   

		
	9.
	Section 5.11 of the Plan, “Lost Participant or Beneficiary,” is hereby amended by revising the second sentence thereof to read as follows:

“The amount of the forfeiture shall be treated as a forfeiture subject to Section 3.13 of the Plan.”

		
	10.
	The first paragraph of Section 6.01 of the Plan, “Hardship Withdrawals,” is hereby amended to read as follows:

“Subject to the restrictions set forth in Section 5.13 and Appendix C, upon the application of any Participant, the Administrative Committee, in accordance with a uniform, nondiscriminatory policy, may permit such Participant to withdraw all or a portion of the vested amounts then credited to his Compensation Deferral Account and Catch-Up Account (in each case, excluding all trust earnings credited thereto), if the withdrawal is necessary due to the immediate and heavy financial need of the Participant.”

		
	11.
	Subsection 6.01.A.(v) (incorrectly numbered (iv)) regarding expenses necessary to repair, rebuild or replace property, is hereby deleted from the Plan.

		
	12.
	Section 6.03, “Special Withdrawal Rules Applicable to Transfer Accounts,” is hereby amended by the addition of the following to the end thereof:

“In addition, a withdrawal is permitted at any time, in whole or in part, from an Active Participant’s Prior After-Tax Account.  Any election to begin, change or cease withdrawals shall be made in accordance with procedures established by the Administrative committee or in such other manner as permitted by the Administrative Committee.  Payment of amounts requested to be withdrawn shall be made within an administratively reasonable period of time after the withdrawal has been requested.  The Administrative Committee may establish other rules of uniform applicability regarding the timing of and procedures for such withdrawals.” 

		
	13.
	The first sentence of Section 6.05.B., “Term of Loan,” is hereby amended to read as follows:

“The term of any loan shall be determined by mutual agreement between the Administrative Committee or Trustee and the Participant but shall, at a minimum, be 12 months in duration.”

		
	14.
	All other Plan provisions shall remain in full force and effect.

	
			
	 
	CARDINAL HEALTH, INC.

	 
	By:
	/s/ Kendell F. Sherrer

	 
	Its:
	V.P., Benefits

	 
	Date:
	11-27-12

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