Document:

Form of terms and conditions applicable to nonqualified stock options

 Exhibit 10.70 
 STOCK OPTIONS 
 (NON-EMPLOYEE DIRECTORS (CURRENT
AND FORMER)) 
 ADJUSTMENTS TO CARDINAL
HEALTH STOCK OPTIONS AND TERMS OF CAREFUSION STOCK OPTIONS 
 August 31, 2009 
 As a result of the
separation of the clinical and medical products businesses of Cardinal Health, Inc. (“Cardinal Health”) by means of a spin-off of those businesses to Cardinal Health’s shareholders, effective August 31, 2009 (the
“Spin-Off”), outstanding stock option awards granted by Cardinal Health to you (the “Cardinal Health Options”) pursuant to the terms of equity incentive plans adopted by Cardinal Health (“Cardinal Health
Equity Plans”) and related grant agreements (the “Cardinal Option Agreements”) are being adjusted, as of the effective time of the Spin-Off, as follows: 
  

	 	•	 	 With respect to each outstanding Cardinal Health Option initially granted to you on or prior to September 26, 2007 (each, a “Pre-2007 Cardinal
Option”), (i) the exercise price and number of shares subject to such option are being adjusted (each, an “Adjusted Pre-2007 Cardinal Option”) and (ii) you are receiving a nonqualified stock option to purchase
common stock of CareFusion Corporation (each, a “CareFusion Option”). 

  

	 	•	 	 With respect to each outstanding Cardinal Health Option initially granted to you after September 26, 2007 (each, a “Post-2007 Cardinal
Option”): 

  

	 	•	 	 If you are a non-employee director of Cardinal Health prior to the effective time of the Spin-Off who is not a member of the Board of Directors of CareFusion
Corporation on August 31, 2009, the exercise price and number of shares subject to your Post-2007 Cardinal Options are being adjusted (each, an “Adjusted Post-2007 Cardinal Option”); and 

  

	 	•	 	 If you are a non-employee director of Cardinal Health prior to the effective time of the Spin-Off who is a member of the Board of Directors of CareFusion
Corporation on August 31, 2009, your Post-2007 Cardinal Options will be cancelled and CareFusion Options will be issued. 

 Adjusted Pre-2007 Cardinal Options and Adjusted Post-2007 Cardinal Options 
 Except for the adjusted exercise price and number of
shares subject to each Pre-2007 Cardinal Option and Post-2007 Cardinal Option, your Adjusted Pre-2007 Cardinal Options and Adjusted Post-2007 Cardinal Options will continue to be governed by (i) your Cardinal Option Agreements, as amended
(including the provisions in the agreements relating to “Triggering Conduct/Competitor Triggering Conduct” and “Special Forfeiture/Repayment Rules”) and (ii) the Cardinal Health Equity Plan under which the agreement was
issued, also as amended. Therefore, among other terms, the extent to which each Adjusted Pre-2007 Cardinal Option and Adjusted Post-2007 Cardinal Option will vest and become exercisable on and after specific dates and the date on which such options
will expire will be the same as those set forth in your Cardinal Option Agreements. 

 STOCK OPTIONS 
 (NON-EMPLOYEE DIRECTORS (CURRENT AND FORMER)) 
 The adjusted exercise price and number of shares subject to each Adjusted Pre-2007 Cardinal Option and Adjusted Post-2007 Cardinal Option can be found on the website of Cardinal Health’s third-party equity plan
administrator. 
 Please note that CareFusion Corporation (“CareFusion”) and its affiliates are third party beneficiaries of all
rights that benefit CareFusion with respect to your Adjusted Pre-2007 Cardinal Options and Adjusted Post-2007 Cardinal Options and as a result CareFusion may enforce with full force and effect all terms and conditions that benefit CareFusion with
respect to such options. 
 CareFusion Options 
 Your CareFusion Options are granted under, and subject to, the terms and conditions of the CareFusion Corporation 2009 Long-Term Incentive Plan. They are also subject to the terms of the Cardinal Option Agreement for the corresponding
Cardinal Health Option (including provisions regarding “Triggering Conduct/Competitor Triggering Conduct” and “Special Forfeiture/Repayment Rules”) and the applicable Cardinal Health Equity Plan, which have been adjusted and
restated on Appendix A attached hereto for purposes of applying them to your CareFusion Options and have been approved by the Human Resources and Compensation Committees of Cardinal Health and CareFusion. Please note that Cardinal Health and
its affiliates are third party beneficiaries of all rights that benefit Cardinal Health with respect to your CareFusion Options and as a result Cardinal Health may enforce with full force and effect all terms and conditions that benefit Cardinal
Health with respect to such options. 

 STOCK OPTIONS 
 (NON-EMPLOYEE DIRECTORS (CURRENT AND FORMER)) 
 Appendix A 
 CAREFUSION CORPORATION 
 NONQUALIFIED STOCK OPTION TERMS AND CONDITIONS 
 These
Nonqualified Stock Option Terms and Conditions (the “Terms”) adjust and restate the terms that apply to the Cardinal Health Options (as defined below) for purposes of applying such terms to the nonqualified stock options (the
“CareFusion Options”) granted to Awardee by CareFusion Corporation (the “Company”) under the CareFusion Corporation 2009 Long-Term Incentive Plan (the “Plan”) as a result of the separation of the clinical and medical
products businesses of Cardinal Health, Inc. (“Cardinal Health”) by means of a spin-off of at least 80.1% of the outstanding common stock of the Company to Cardinal Health’s shareholders, effective on August 31, 2009 (the
“Spin-Off”). These Terms, together with the Option Terms (as defined below) and the Plan, shall govern the CareFusion Options. The CareFusion Options are Replacement Awards under the Plan. 
 The “Number of Shares” that are covered by the CareFusion Options and the “Exercise Price per Share” of the CareFusion Options constitute the option
terms (the “Option Terms”) and can be found on the website of the Company’s third-party equity plan administrator. The extent to which the CareFusion Options shall vest and become exercisable on and after specific dates (the
“Vesting Date(s)”), subject in each case to the provisions of these Terms, including those relating to Awardee’s continued service with Cardinal Health and its Affiliates (collectively, the “Cardinal Group”) and the date on
which the CareFusion Options shall expire (the “Grant Expiration Date”) are the same terms as those set forth in Awardee’s stock option agreement(s) (each, a “Cardinal Option Agreement”) for stock option awards granted to
Awardee by Cardinal Health (the “Cardinal Health Options”) on the grant date specified in the agreement for such Cardinal Health Options (the “Pre-Spin Grant Date”). 
 Capitalized terms used in these Terms which are not specifically defined herein will have the meanings ascribed to such terms in the Plan. 
 1. Method of Exercise and Payment of Price. 
 (a) Method of Exercise. At any time when all or a
portion of the CareFusion Options is exercisable under the Plan and these Terms, some or all of the exercisable portion of the CareFusion Options may be exercised from time to time by written notice to the Company, or such other method of exercise
as may be specified by the Company, including, without limitation, exercise by electronic means on the website of the Company’s third-party equity plan administrator, which will: 
 (i) state the number of whole Shares with respect to which the CareFusion Options are being exercised; and 
 (ii) if the CareFusion Options are being exercised by anyone other than Awardee, if not already provided, be accompanied by proof satisfactory to counsel
for the Company of the right of such person or persons to exercise the CareFusion Options under the Plan and all Applicable Laws and regulations. 
  

 1 

 STOCK OPTIONS 
 (NON-EMPLOYEE DIRECTORS (CURRENT AND FORMER)) 
 (b) Payment of Price. The full exercise price for the portion of the CareFusion Options being exercised shall be paid to the Company as provided
below: 
 (i) in cash; 
 (ii) by check or wire transfer (denominated in U.S. Dollars); 
 (iii) subject to any
conditions or limitations established by the Administrator, other Shares which (A) in the case of Shares acquired from the Company (whether upon the exercise of the CareFusion Options or otherwise), have been owned by the Participant for more
than six (6) months on the date of surrender (unless this condition is waived by the Administrator), and (B) have a Fair Market Value on the date of surrender equal to or greater than the aggregate exercise price of the Shares as to which
said CareFusion Options shall be exercised (it being agreed that the excess of the Fair Market Value over the aggregate exercise price shall be refunded to Awardee, with any fractional Share being repaid in cash); 
 (iv) consideration received by the Company under a broker-assisted sale and remittance program acceptable to the Administrator; or

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

  

 2 

 STOCK OPTIONS 
 (NON-EMPLOYEE DIRECTORS (CURRENT AND FORMER)) 
 Options (or its economic value, as applicable) shall be subject to forfeiture by the transferee and recoupment from Awardee to the same extent as would have been the case of Awardee had the CareFusion Options not been
transferred. Awardee shall remain subject to the recoupment provisions of paragraphs 5 and 6 of these Terms following transfer of the CareFusion Options. 
 3. Termination of Service on the Board. 
 (a) Termination of Service by Death. If Awardee
ceases to be a member of the Board of Directors of Cardinal Health (the “Cardinal Board”, and each such member, a “Cardinal Director”) by reason of Awardee’s death, any unvested portion of the CareFusion Options shall vest
upon and become exercisable in full from and after Awardee’s death. The CareFusion Options may thereafter be exercised by any transferee of Awardee, if applicable, or by the legal representative of the estate or legatee of Awardee under the
will of Awardee until the Grant Expiration Date. 
 (b) Other Termination of Service. If Awardee ceases to be a Cardinal Director for
any reason other than death, any unexercised portion of the CareFusion Options which has not vested on such date of termination of service on the Cardinal Board shall automatically terminate on the date of such termination of service. Any
unexercised portion of the CareFusion Options which otherwise is exercisable by Awardee (or any transferee) shall remain exercisable until the Grant Expiration Date; provided, however, that upon the removal of Awardee from the Cardinal
Board for cause, other than upon or after a “change of control” (as defined in the Cardinal Health, Inc. 2005 Long-Term Incentive Plan, as amended and restated effective as of November 5, 2008), the CareFusion Options (whether then
held by Awardee or any transferee) shall immediately lapse and be of no further force or effect. 
 4. Restrictions on Exercise. The
CareFusion Options are subject to all restrictions in these Terms and/or in the Plan. As a condition of any exercise of the CareFusion Options, the Company may require Awardee or his or her transferee or successor to make any representation and
warranty to comply with any Applicable Law or regulation or to confirm any factual matters (including Awardee’s compliance with the terms of paragraphs 5 and 6 of these Terms) reasonably requested by the Company. The CareFusion Options shall
not be exercisable if such exercise would involve a violation of any Applicable Law. 
 5. Triggering Conduct/Competitor Triggering
Conduct. As used in these Terms, “Triggering Conduct” shall include (i) disclosing or using in any capacity other than as necessary in the performance of duties as a Cardinal Director any confidential information, trade secrets or
other business sensitive information or material concerning the Company or its subsidiaries the Cardinal Group; (ii) violating any policy of the Cardinal Group, including, but not limited to, conduct which would constitute a breach of any
certificate of compliance or similar attestation/certification signed by Awardee; (iii) 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 any entity in the Cardinal Group at any time within the twelve (12) months prior to the
termination of service on the Cardinal Board; (iv) any action by Awardee and/or Awardee’s 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 (v) breaching any provision of any benefit or severance agreement with a member of the Cardinal Group. As used herein,
“Competitor Triggering Conduct” shall include, either during Awardee’s service as a Cardinal 

  

 3 

 STOCK OPTIONS 
 (NON-EMPLOYEE DIRECTORS (CURRENT AND FORMER)) 
 Director or within one year following Awardee’s termination of service on the Cardinal Board, accepting employment with or serving as a consultant, advisor, or 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 service as a Cardinal Director and such information would aid the Competitor because the threat of disclosure of such information is so great that, for purposes of
these Terms, it must be assumed that such disclosure would occur. For purposes of these Terms, the nature and extent of Awardee’s activities, if any, disclosed to and reviewed by the Audit Committee or Nominating and Governance Committee of the
Cardinal Board (each, the “Specified Committee”) prior to the date of Awardee’s termination of service on the Cardinal Board shall not, unless specified to the contrary by the Specified Committee in a written notice given to Awardee,
be deemed to be Competitor Triggering Conduct. The Human Resources and Compensation Committee of the Cardinal Board (the “Cardinal Compensation Committee”) shall resolve in good faith any disputes concerning whether particular conduct
constitutes Triggering Conduct or Competitor Triggering Conduct, and any such determination by the Cardinal Compensation Committee shall be conclusive and binding on all interested persons. 
 6. Special Forfeiture/Repayment Rules. For so long as Awardee continues as a Cardinal Director and for three years following Awardee’s
termination of service on the Cardinal Board 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 Competitor Triggering
Conduct during the applicable time periods set forth in paragraph 5, then: 
 (a) the CareFusion Options (or any part thereof that has not
been exercised) shall immediately and automatically terminate, be forfeited, and shall cease to be exercisable at any time; and 
 (b)
Awardee shall, within thirty (30) days following written notice from the Company, pay the Company an amount equal to the gross option gain realized or obtained by Awardee or any transferee resulting from the exercise of such CareFusion Options,
measured at the date of exercise (i.e., the difference between the market value of the Shares underlying the CareFusion Options on the exercise date and the exercise price paid for such Shares underlying the CareFusion Options), with respect
to any portion of the CareFusion Options that has already been exercised at any time within three (3) years prior to the Triggering Conduct (the “Look-Back Period”), less $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 (1) year prior to Awardee’s termination of service on the Cardinal Board, but include any period between the time of Awardee’s termination of
service on the Cardinal Board and the time Awardee engaged in Competitor Triggering Conduct. Awardee may be released from Awardee’s obligations under this paragraph 6 if and only if the Cardinal Compensation Committee determines, in writing and
in its sole discretion, that such action is in the best interests of Cardinal Health. Nothing in this paragraph 6 constitutes a so-called “noncompete” covenant. This paragraph 6 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 these Terms under certain circumstances, including, but not limited to, Awardee’s acceptance of employment with a
Competitor. Awardee agrees to provide Cardinal Health with at least ten (10) days’ written notice prior to directly or indirectly accepting employment with or serving as a consultant or advisor or in any other capacity to a Competitor, and
further agrees to inform any such new employer, before accepting employment, of the terms of this paragraph 6 and Awardee’s continuing obligations contained herein. No provisions 

  

 4 

 STOCK OPTIONS 
 (NON-EMPLOYEE DIRECTORS (CURRENT AND FORMER)) 
 of these Terms shall diminish, negate or otherwise impact any separate noncompete or other agreement to which Awardee may be a party, including, but not limited to, any certificate of compliance or similar
attestation/certification signed by Awardee; provided, however, that to the extent that any provisions contained in any other agreement are inconsistent in any manner with the restrictions and covenants of Awardee contained in these
Terms, the provisions of these Terms shall take precedence and such other inconsistent provisions shall be null and void. Awardee has acknowledged and agreed that these restrictions are for the benefit of Cardinal Health in consideration of
Awardee’s receipt of the Cardinal Health Options, in consideration of exposing Awardee to Cardinal Health’s business operations and confidential information, and for other good and valuable consideration, the adequacy of which
consideration is hereby expressly confirmed. Awardee has further acknowledged that the receipt of the Cardinal Health Options and the execution of the Cardinal Option Agreement were voluntary actions on the part of Awardee and that Cardinal Health
would have been unwilling to provide the Cardinal Health Options to Awardee without including the restrictions and covenants of Awardee set forth above. Further, Awardee and Cardinal Health have agreed and acknowledged that the provisions contained
in paragraphs 5 and 6 are ancillary to, or part of, an otherwise enforceable agreement at the time the Cardinal Option Agreement was made. 
 7. Change of Control. Notwithstanding anything herein to the contrary, (a) in the event a Change of Control occurs (i.e., a Change of Control occurs with respect to the Company), then the provisions of Section 16(b)
of the Plan shall not apply and the CareFusion Options shall continue to vest and become exercisable in accordance with the terms set forth herein, and (b) on the date that a “change of control” (as defined in the Cardinal Health,
Inc. 2005 Long-Term Incentive Plan, as amended and restated effective as of November 5, 2008) occurs with respect to Cardinal Health, any unvested CareFusion Options shall vest in full. 
 8. Right of Set-Off. By having accepted the Cardinal Health Options, Awardee has agreed that, so long as the amounts are not treated as
“non-qualified deferred compensation” under Section 409A of the Internal Revenue Code of 1986, as amended, (a) any amounts Awardee owes from time to time to any member of the Cardinal Group with respect to the CareFusion Options
may be deducted 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 director annual retainer fees, meetings fees or fringe benefits)
and (b) any amounts Awardee owes from time to time to the Company or any of its Affiliates (the “CareFusion Group” with respect to the CareFusion Options may be deducted from, and set-off against, any amounts owed to Awardee by any
member of the CareFusion Group from time to time (including, but not limited to, amounts owed to Awardee as director annual retainer fees, meetings fees or fringe benefits). 
 9. Governing Law/Venue for Dispute Resolution/Costs and Legal Fees. The CareFusion Options are 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. Awardee has agreed that the laws of the State of Ohio bear a substantial relationship to the Cardinal Health Options and that
the benefits granted therein, and thus the CareFusion Options and the benefits granted thereunder, would not be granted without their governance by the laws of the State of Ohio. In addition, all legal actions or proceedings relevant to the
CareFusion Options will be brought exclusively in state or federal courts located in Franklin County, Ohio, and Awardee has consented to the personal jurisdiction of such courts. Awardee has acknowledged that the terms relating to
Triggering Conduct, Competitor Triggering Conduct and special forfeiture and repayment rules set forth above are reasonable in nature, are fundamental 

  

 5 

 STOCK OPTIONS 
 (NON-EMPLOYEE DIRECTORS (CURRENT AND FORMER)) 
 for the protection of 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 terms. In the event of any violation
by Awardee of any such covenants, immediate and irreparable injury for which there is no adequate remedy at law will result. In the event of any violation or attempted violations of these restrictions and covenants, the Cardinal Group will 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, waiving any requirement for the securing or posting of any bond in connection with such remedy, without prejudice to any other rights and remedies afforded the Cardinal Group hereunder or by law. In the event that it becomes
necessary for the Cardinal Group to institute legal proceedings under Awardee’s CareFusion Options, Awardee will be responsible for all costs and reasonable legal fees with regard to such proceedings. Any term relating to the CareFusion Options
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 term, without
invalidating or rendering unenforceable the remaining terms. 
 10. Action by the Administrator. Except as set forth above with
respect to Triggering Conduct or Competitor Triggering Conduct, the interpretation of these Terms shall rest exclusively and completely within the sole discretion of the Administrator. Awardee shall be bound by the decisions of the Administrator
with regard to the interpretation of these Terms and with regard to any and all matters set forth in these Terms. The Administrator may delegate its functions under these Terms to an officer of the CareFusion 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. 
 11. Electronic Delivery and Consent to Electronic Participation. The Company may, in its sole discretion, decide to
deliver any documents related to the CareFusion Options or future options that may be granted under the Plan by electronic means. Awardee has consented 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 option grants and the execution of option agreements through electronic signature. 
 12. Notices. All notices, requests, consents and other communications by Awardee to the Company or Cardinal Health with respect to the CareFusion
Options are to be delivered 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 or Cardinal Health, as the case may be, at the address set forth below: 
 CareFusion Corporation 
 3750 Torrey View Court 
 San Diego, CA 92130

 Attention: Compensation and Benefits Administrator 
 Facsimile: 858-617-2300 
  

 6 

 STOCK OPTIONS 
 (NON-EMPLOYEE DIRECTORS (CURRENT AND FORMER)) 
 Cardinal Health, Inc. 
 7000 Cardinal Place

 Dublin, Ohio 43017 
 Attention:
Chief Legal Officer 
 Facsimile: 614-757-2797 
 All notices, requests consents and other communications by the Company to Awardee with respect to the CareFusion Options to be delivered 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 Awardee. 
  

 7CareFusion Corporation Management Incentive Plan

 Exhibit 10.72 
 

 
 CAREFUSION CORPORATION 
 MANAGEMENT INCENTIVE PLAN 
 Article 1. Establishment and Purpose 
 1.1 Establishment of Plan. The CareFusion Corporation Management Incentive Plan (the “Plan”) is intended to provide the Company’s
executive officers and other key Employees with performance based compensation which is not subject to the deduction limitation rules under Section 162(m) of the Code as in effect from time to time. The Plan shall remain in effect from the
Effective Date until terminated by the Board or the Committee. 
 1.2 Purpose. The primary purposes of the Plan are to: 
 (a) Advance the interests of the Company and its stockholders by providing the Company’s executive officers and other key Employees
with an annual bonus incentive to achieve the strategic objectives of the Company and its subsidiaries; 
 (b) Focus the
Company’s executive officers and other key Employees on key measures that drive superior financial and management performance and that result in enhanced value of the Company; 
 (c) Provide compensation opportunities that are externally competitive and internally consistent with the Company’s strategic
objectives and total reward strategies; and 
 (d) Provide bonus opportunities that reward the Company’s executive
officers and other key Employees who are in positions to make significant contributions to the overall success of the Company and its subsidiaries. 
 Article 2. Definitions 
 Whenever used in the Plan, the following terms shall have the meanings set forth below and, when the defined meaning
is intended, the term is capitalized: 
 2.1 “Administrator” means the Committee or such other authorized officers of the Company to
whom the power to administer the Plan has been properly delegated in accordance with Applicable Law. 
 2.2 “Applicable Law” means
the requirements of Section 162(m) of the Code applicable to performance based compensation. 
 2.3 “Award” means the cash
bonus a Participant may earn under the Plan. 

 2.4 “Board” or “Board of Directors” means the Board of Directors of the Company.

 2.5 “Code” means the United States Internal Revenue Code of 1986, as amended, and the regulations and rulings of general
applicability issued thereunder as in effect from time to time. 
 2.6 “Committee” means the Human Resources and Compensation
Committee of the Board, or such other committee of Directors appointed by the Board that satisfies the “outside director” requirements set forth in Section 162(m) of the Code. 
 2.7 “Company” means CareFusion Corporation, or any successor thereto. 
 2.8 “Covered Employee” means any Participant who is, or who is determined by the Committee to be likely to become, a “covered
employee” within the meaning of Section 162(m) of the Code. 
 2.9 “Disability” shall have the meaning ascribed to such
term in the long term disability plan maintained by the Participant’s employer at the time that the determination regarding Disability is made hereunder. Notwithstanding the foregoing, if a payment under this Plan is subject to Code
Section 409A, “Disability” has the meaning ascribed to such term under that Code section. 
 2.10 “Earned Salary”
means a Participant’s base pay or salary earned and paid for the Performance Period or portion thereof in which the Employee was an eligible Participant in the Plan. 
 2.11 “Effective Date” of the Plan is _________, 2009. 
 2.12 “Employee” means a regular,
active employee of the Company or of any subsidiary of the Company. Directors who are not employed by the Company shall not be considered Employees under the Plan, nor shall independent contractors, leased employees, consultants or anyone else
designated as not eligible to participate in the Plan by the Administrator. 
 2.13 “Final Bonus” means the actual bonus earned
during a Performance Period by a Participant, as determined by the Administrator. 
 2.14 “Participant” means an Employee who meets
the eligibility requirements of Article 3 with respect to one or more Performance Periods. 
 2.15 “Performance Criteria” shall
have the meaning set forth in Article 4. 
 2.16 “Performance Period” means the twelve month period beginning
on each July 1st and ending on the next succeeding June 30th during the
term of the Plan, or such 

  

 2 

 
other time period established by the Administrator from time to time with respect to which the attainment of Performance Criteria will be determined.

 2.17 “Plan” means this CareFusion Corporation Management Incentive Plan, as hereafter amended from time to time. 
 2.18 “Retirement” means termination of employment by a Participant (other than by reason of death or Disability and other than in the event of
Termination for Cause) from the Company and its subsidiaries after attaining age fifty-five (55) and having at least ten (10) years of continuous service with the Company and its subsidiaries, including service with a subsidiary of the
Company prior to the time that such subsidiary became a subsidiary of the Company. For purposes of the age and/or service requirement, the Administrator may, in its discretion, credit a Participant with additional age and/or years of service.

 2.19 “Target Award” means the amount of any Award as established by the Administrator that would be payable to a Participant for
a Performance Period if the Performance Criteria for the Performance Period were fully (100%) achieved and no negative discretion was exercised by the Administrator in regard to that Award. 
 2.20 “Termination for Cause” means, unless otherwise determined by the Administrator, termination of employment from the Company and its
subsidiaries on account of any act of fraud or intentional misrepresentation or embezzlement, misappropriation or conversion of assets of the Company or any subsidiary, or the intentional and/or repeated violation of the written policies or
procedures of the Company, provided that for an Employee who is party to an individual severance or employment agreement defining Cause, except as may be provided in such agreement, “Cause” shall have the meaning set forth in such
agreement. For purposes of this Plan, a Participant’s termination of employment shall be deemed to be a Termination for Cause if, after the Participant’s employment has terminated, facts and circumstances are discovered that would have
justified, in the opinion of the Administrator, a Termination for Cause. 
 Article 3. Eligibility and Participation 
 3.1 Eligibility and Participation. The Administrator shall designate, or determine the methodology and criteria for the designation of, the
Employees who are eligible to receive an Award as a Participant under the Plan. In general, an Employee may be designated as a Participant if such Employee is an executive officer of the Company or is otherwise a key Employee because he or she holds
a management position and is responsible for or contributes to the management, growth and or profitability of the Company or one of its subsidiaries in a material way. Only the Committee may determine the eligibility of Employees who are Covered
Employees. 
  

 3 

 3.2 Partial Performance Period Participation. An Employee who becomes eligible after the beginning
of a Performance Period may participate in the Plan for that Performance Period on a ratable basis. Such situations may include, but are not limited to (a) new hires; or (b) when an Employee is promoted from a position which did not
previously meet the eligibility criteria. The Administrator, in its sole discretion, retains the right to prohibit or allow participation in the initial Performance Period of eligibility for any of the aforementioned Employees. If an Employee
participates for only a portion of a Performance Period for any reason, the Performance Criteria previously established under the Plan for that Performance Period shall apply to any Employees who become eligible after the beginning of the
Performance Period, but his or her Award and Target Award will be prorated. Such proration shall be based on the number of days the Employee performed services during the Performance Period while a Participant in the Plan over the total days in the
Performance Period, or some similar method adopted by the Committee that results in a ratable reduction of the Award based on the partial Performance Period applicable to the Employee. In addition, in the event a Participant changes job levels
during a Performance Period, the Participant’s Award may be adjusted to reflect the amount of time at each job level during the Performance Period. Notwithstanding anything in this Section 3.2 or in the Plan to the contrary, the
participation in the Plan for a Covered Employee who becomes eligible after the beginning of the Performance Period shall comply with the provisions of Code Section 162(m), as set forth in Article 4. 
 3.3 No Right to Participate. No Participant or other Employee shall at any time have a right to be selected for participation in the Plan for any
Performance Period, whether or not he or she previously participated in the Plan. 
 Article 4. Award Determination 
 4.1 Performance Criteria. As to each Performance Period, the Administrator will establish in writing Performance Criteria based on or derived from
one or more of the following performance measures of the Company (and/or one or more operating groups of the Company, if applicable) over the Performance Period: (i) cash flow; (ii) earnings (including gross margin, earnings before
interest and taxes, earnings before taxes, and net earnings); (iii) earnings per share; (iv) growth in earnings or earnings per share; (v) stock price; (vi) return on equity or average stockholders’ equity; (vii) total
stockholder return; (viii) return on capital; (ix) return on assets or net assets; (x) return on investment; (xi) revenue; (xii) income or net income; (xiii) operating income or net operating income;
(xiv) operating profit or net operating profit (whether before or after taxes); (xv) economic profit or profit margin; (xvi) operating margin; (xvii) return on operating revenue; (xviii) return on tangible capital;
(xix) market share; (xx) contract awards or backlog; (xxi) overhead or other expense reduction; (xxii) growth in stockholder value relative to the S&P 500 Index or other index or peer group; (xxiii) credit rating;
(xxiv) strategic plan development and implementation; (xxv) improvement in workforce diversity: (xxvi) customer satisfaction; (xxvii) employee satisfaction; 

  

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(xxviii) management succession plan development and implementation; and (xxix) employee retention. Except as otherwise provided herein, the extent to
which the Performance Criteria are satisfied will determine the amount, if any, of the Award that will be earned by each Participant. The Performance Criteria may vary for different Performance Periods and need not be the same for each Participant
eligible for an Award for a Performance Period. 
 4.2 Adjustment of Performance Criteria. Except as provided herein, once
established, the Performance Criteria shall not be changed during the Performance Period. Subject to the requirements of Code Section 162(m) with respect to Covered Employees, at the time the Award is made and Performance Criteria are
established, the Administrator is authorized to determine the manner in which the Performance Criteria will be calculated or measured to take into account certain factors over which Participants have no or limited control, including, but not limited
to, market related changes in inventory value, changes in industry margins, changes in accounting principles, and extraordinary charges to income. For Participants that are not Covered Employees, the Administrator is authorized to make changes to
the Performance Criteria during the Performance Period as necessary or appropriate in furtherance of the purposes of the Plan, as the Administrator shall determine in its sole discretion. 
 4.3 Target Awards. For each Performance Period established by the Administrator, the Administrator shall establish a Target Award for each Covered
Employee and for all other Participants. Awards shall be earned based upon the financial or other performance of the Company or one or more operating groups of the Company and the attainment of established Performance Criteria related thereto during
a Performance Period; provided, however, the maximum Award that may be paid to any single Participant for any Performance Period is $7,500,000, such maximum Award amount to be pro-rated if the Performance Period is less than a full fiscal year.
Performance Criteria and Target Awards shall be established prior to the beginning of each Performance Period or as soon as practicable thereafter. If a Participant commences participation after the beginning of a Performance Period, Performance
Criteria in effect for the Participant’s position shall apply for the remaining balance of the Performance Period, unless otherwise determined by the Administrator within 90 days of the date the Employee became a Participant. In all cases where
the Participant is a Covered Employee, the Performance Criteria and Target Award shall be established in no event later than 90 days following the first day of the Performance Period or after 25% of the Performance Period has elapsed, if earlier,
and the outcome relative to the attainment of the Performance Criteria shall not be substantially certain at the time the Performance Criteria and Target Award are established. This Section 4.3 is intended to ensure compliance with the
exception from Code Section 162(m) for qualified “performance-based compensation,” and shall be construed, applied and administered accordingly with respect to any Participant who is a Covered Employee. 
  

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 4.4 Final Bonus Determinations. At the end of each Performance Period, the Administrator will
determine whether the Performance Criteria were met, and for any Awards for Covered Employees, certify in writing the extent to which the Performance Criteria were met during the Performance Period. If the Performance Criteria for the Performance
Period are met, Covered Employees shall be entitled to the payment of the Awards, subject to the Committee’s exercise of negative discretion to reduce any Final Bonus payable to a Covered Employee based on business objectives established for
that Covered Employee or other factors as determined by the Committee in its sole discretion. With respect to Participants who are not Covered Employees, the Administrator will determine the Final Bonus based on the Performance Criteria and other
business objectives. The Administrator may adjust (up or down) any Final Bonus for Participants who are not Covered Employees on the basis of such further considerations as the Administrator shall determine in its sole discretion. 
 Article 5. Payment of Final Bonuses 
 5.1 Form and Timing of Payment. Each Participant’s Final Bonus shall be paid in cash, in one lump sum, subject to applicable tax and other authorized withholdings, on the last regular business day occurring on or before the 15th
day of the third month after the end of each Performance Period. If payment is delayed due to an unforeseeable event or other administrative delays, payment shall in no event be made later than the 15th day of the third month after the end of the taxable year of the Participant in which the Final Bonus was earned. Other withholdings
may include, but not be limited to, amounts previously elected to be deferred to a tax-qualified or non-qualified retirement or deferred compensation plan, employee stock purchase plan or similar arrangement. The Administrator may permit or provide
for deferred payment of any Final Bonus to a specified date or to a date not less than six (6) months after termination of employment, in accordance with such conditions and procedures as the Administrator may specify in compliance with the
requirements of Code Section 409A. 
 5.2 Unsecured Interest. No Participant or any other party claiming an interest in amounts
earned under the Plan shall have any interest whatsoever in any specific asset of the Company or any of its subsidiaries. The Plan is intended to constitute an unfunded plan for incentive compensation. To the extent that any party acquires a right
to receive a cash payment under the Plan, such right shall be equivalent to that of an unsecured general creditor of the Company. 
 Article 6.
Termination of Employment 
 6.1 Termination of Employment Due to Retirement, Death or Disability. In the event a
Participant’s employment is terminated by reason of Retirement, death or Disability during the applicable Performance Period, the Final Bonus determined in accordance with Section 4.4 herein shall be reduced to reflect participation prior
to termination only. The Final Bonus, if any, shall be prorated based upon the length of time that the Participant was employed by the Company during the Performance Period. 

  

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In the case of a Participant’s Disability, the employment termination shall be deemed to have occurred as of the date that the Administrator determines
was the date on which the definition of Disability was satisfied. The Final Bonus thus determined shall be paid as soon as practicable and reasonable following the end of the Performance Period in which employment termination occurs, and shall be
made at the same time payments are made to Participants who did not terminate employment during the applicable Performance Period. The right of the Participant to receive any payment under this Plan will pass to the Participant’s estate in the
event of the Participant’s death. 
 6.2 Involuntary Termination of Employment (Not Retirement Eligible). If the employment of a
Participant is terminated by the Company (other than as a Termination for Cause) during the fourth quarter of the applicable Performance Period, the Final Bonus determined in accordance with Section 4.4 herein shall be reduced to reflect
participation prior to termination only. The Final Bonus, if any, shall be prorated based upon the length of time that the Participant was employed by the Company during the Performance Period. 
 6.3 Termination of Employment for Other Reasons. In the event a Participant’s employment is terminated before the fourth quarter of the
Performance Period for a reason other than due to Retirement, death, or Disability, all of the Participant’s rights to any Final Bonus for that Performance Period shall be forfeited unless otherwise determined by the Administrator in its sole
discretion. If a Participant terminates employment for any such reason prior to the date the Final Bonus, if any, is paid, all of the Participant’s rights to any Final Bonus for that Performance Period shall be forfeited. Except as provided in
Sections 6.1 and 6.2, only Participants who are, as of the date the Final Bonus, if any, is paid, either current, active Employees or current Employees who are on a leave of absence authorized by the Company shall be entitled to any Final Award
earned for the Performance Period. 
 6.4 Other Forfeiture Events. The Administrator may, in its discretion, require that all or any
portion of a Final Bonus is subject to an obligation of repayment to the Company upon the violation of a non-competition and confidentiality covenant applicable to the Participant. The Administrator may, in its discretion, also require repayment to
the Company of all or any portion of a Final Bonus if the amount of the Final Bonus was calculated based upon the achievement of certain financial results that were subsequently the subject of a financial statement restatement, the Participant
engaged in misconduct that caused or contributed to the need for the financial statement restatement, and the amount of the Final Bonus would have been lower than the amount actually awarded to the Participant had the financial results been properly
reported. This Section 6.4 shall not be the Company’s exclusive remedy with respect to such matters. This Section 6.4 shall not apply after a “change of control” of the Company as defined in the 2009 Long-Term Incentive Plan
or any successor plan thereto. 
  

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 Article 7. Rights of Participants 
 7.1 Employment. No person shall have any claim or right to be granted an Award under this Plan and the grant of an Award shall not confer upon any Participant any right to be retained as an employee of the
Company or any of its subsidiaries, nor shall it limit or interfere in any way with the right of the Company or any subsidiary to terminate the employment of any Participant at any time or to increase or decrease the compensation of any Participant.
There is no obligation for uniformity of treatment of Participants under this Plan or otherwise. 
 7.2 Nontransferability. No right
or interest of any Participant in the Plan shall be assignable or transferable, other than by will or pursuant to the laws of descent and distribution, or subject to any lien, directly, by operation of law or otherwise, including, but not limited
to, by execution, levy, garnishment, attachment, pledge, or bankruptcy, and any attempt to take any such action shall be null and void. 
 7.3 Foreign Participants. Subject to the provisions of Section 4.3, the Administrator may, in order to fulfill the Plan purposes and without amending the Plan, modify Awards granted to Participants who are foreign nationals or
employed outside the United States to the extent necessary to recognize differences in local law, tax policy or custom. 
 Article 8. Administration 

 8.1 Authority of the Administrator. 
 (a) General. The Plan shall be administered by the Committee. Subject to the provisions of the Plan, the Committee will have full authority to interpret the Plan and the terms of Awards made hereunder, to
establish, amend and rescind rules and regulations relating to the Plan, to determine the terms and provisions for making or modifying Awards, to correct administrative errors, and to make all other determinations necessary or advisable for the
administration of the Plan. All decisions made by the Committee pursuant to the provisions hereof shall be made in the Committee’s sole discretion and shall be final and binding on all persons. Notwithstanding any other provision of the Plan,
the Committee shall not have any discretion or authority to make changes to any Award that is intended to qualify as “performance-based compensation” under Code Section 162(m) to the extent that the existence of such discretion or
authority would cause such Award not to so qualify. 
 (b) Delegation of Authority for the Day-to-Day Administration of
the Plan. Except to the extent prohibited by Applicable Law, the Committee may delegate to one or more individuals the day-to-day administration of the Plan and any of the functions assigned to it in this Plan, including the power to approve
Awards to Employees who are not Covered Employees. Such delegation may be 

  

 8 

 
revoked at any time. All determinations and decisions of any delegate as to any disputed question arising under the Plan, including questions of construction
and interpretation, shall be final, binding and conclusive upon all parties. 
 8.2 Facility of Payment. If the Administrator deems
any person entitled to receive any amount under the provisions of the Plan to be incapable of receiving or disbursing the same by reason of minority, illness or infirmity, mental incompetence, or incapacity of any kind, the Administrator may, in its
sole discretion, (i) apply such amount directly for the comfort, support and maintenance of such person; (ii) reimburse any person for any such support theretofore supplied to the person entitled to receive any such payment; (iii) pay
such amount to any person selected by the Administrator to disburse it for such comfort, support and maintenance, including without limitation, any relative who has undertaken, wholly or partially, the expense of such person’s comfort, care and
maintenance, or any institution in whose care or custody the person entitled to the amount may be; or (iv) with respect to any amount due to a minor, deposit such amount to his or her credit in any savings or commercial bank of the
Administrator’s choice, direct that such distribution be paid to the legal guardian, or if none, to a parent of such person or a responsible adult with whom the minor maintains his or her residence, or to the custodian for such person under the
Uniform Gift to Minors Act or Gift to Minors Act, if such payment is permitted by the laws of the state in which the minor resides. Payment pursuant to this Section 8.2 shall fully discharge the Company, the Board, the Committee, the
Administrator, and the Plan from further liability on account thereof. 
 Article 9. Amendments 
 The Committee, without notice, at any time and from time to time, may modify or amend, in whole or in part, any or all of the provisions of the Plan, or suspend or
terminate it entirely; provided, however, that no such modification, amendment, suspension, or termination may, without the consent of a Participant, materially reduce the right of a Participant to a payment or distribution hereunder to which he or
she has already become entitled, as determined under Articles 4 and 6 hereof. Stockholder approval of any amendment will be required only as required by Applicable Law. No new Award may be granted during any period of suspension of the Plan or after
termination of the Plan. 
 Article 10. Miscellaneous 
 10.1 Choice of Law. The Plan and all agreements hereunder shall be governed by and construed in accordance with the laws of the State of Delaware, except as to matters pre-empted or governed by federal law.

 10.2 Withholding Taxes. The Company shall have the right to deduct from all cash payments under the Plan any federal, state, or
local taxes required by law to be withheld with respect to any Final Bonus. 
  

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 10.3 Additional Arrangements. Nothing contained in this Plan shall prevent the Company from
adopting other or additional compensation arrangements for any Participant. 
 10.4 Gender and Number. Except where otherwise
indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular, and the singular shall include the plural. 
 10.5 Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
 10.6 Successors. All obligations of the Company under the Plan shall be binding upon and inure to the benefit of any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 
 10.7 Titles;
Construction. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of the Plan. Any reference to a section (other than to a section of the Plan) shall also include a successor to such
section. 
 Approved by the Board _____________, 2009 
 Approved
by the Company’s Stockholders _____________, 2009 
  

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