Document:

exv10wa

Exhibit 10(a)

CERNER CORPORATION

2001 Associate Stock Purchase Plan

(Amended and Restated March 1, 2010)

SECTION 1.    PURPOSE OF PLAN

The Cerner Corporation 2001 Associate Stock Purchase Plan (the “Plan”) is designed to
encourage and assist associates of Cerner Corporation (“Cerner” or “Company”), including all
associates of Cerner U.S. based subsidiaries, to acquire an equity interest in Cerner through the
purchase of shares of Cerner common stock, par value $.01 per share (“Common Stock”). This Plan is
intended to constitute an “employee stock purchase plan” within the meaning of Section 423 of the
Internal Revenue Code (the “Code”).

SECTION 2.    ADMINISTRATION OF THE PLAN

The Plan shall be administered by Cerner’s Board of Directors (the “Board”) or by a committee
of the Board (the “Committee”) appointed by the Board and serving at its pleasure (the Board or any
such Committee being herein referred to as the “Administrator”). Until such time as the Board shall
determine otherwise, the Compensation Committee of the Board shall serve as Administrator. The
Administrator shall have full power and authority, not inconsistent with the express provisions of
the Plan, to administer and interpret the Plan, including the authority to:

	 	(i)	 	grant options and authorize the issuance of shares;

	 
	 	(ii)	 	make and amend all rules, regulations, guidelines, procedures and policies for
administering the Plan;

	 
	 	(iii)	 	decide all questions and settle all disputes that may arise in connection with
the Plan;

	 
	 	(iv)	 	appoint persons and entities to act as designated representatives on the
Administrator’s behalf in administering the Plan pursuant to its provisions (in which
case the term “Administrator” as used herein shall include such persons or entities to
the extent of such appointment);

	 
	 	(v)	 	establish accounts with a person or entity appointed pursuant to (iv) above
(“Custodian”) to hold Common Stock purchased under the Plan (“Stock Account”);

	 
	 	(vi)	 	cause Cerner to enter into a written agreement with the Custodian setting
forth the terms and conditions upon which Stock Accounts shall be governed (“Custodial
Agreement”); and

	 
	 	(vii)	 	require Participants to hold shares of Common Stock under the Plan in Stock
Accounts (in which case each Participant’s decision to participate in the Plan shall
constitute the appointment of such Custodian as custodial agent for the purpose of
holding such shares) until such time as shall be specified in the Custodial Agreement.

All interpretations, decisions and determinations made by the Administrator shall be binding
on all persons concerned.

SECTION 3.    NATURE AND NUMBER OF SHARES

The Common Stock subject to issuance under the terms of the Plan shall be authorized but
unissued shares or previously issued shares reacquired and held by the Company. The aggregate
number of shares that may be issued under the Plan shall not exceed 2,000,000 (reflecting the
January 2006 2 for 1 stock split) shares of Common Stock.

 

 

In the event of any reorganization, recapitalization, stock split, reverse stock split, stock
dividend, combination of shares, exchange of shares, merger, consolidation, offering of rights or
other similar change in the capital structure of the Company, the Board or the Committee may make
such adjustment, if any, as it deems appropriate in the number, kind and purchase price of the
shares available for purchase under the Plan and in the maximum number of shares which may be
issued under the Plan.

SECTION 4.    ELIGIBILITY

Each individual employed by Cerner, including associates employed by its U.S. based
subsidiaries (“Associate”), except as provided below, shall be eligible to participate in the Plan.
The following individuals shall be excluded from participation:

(a)       Persons who, as of the date of grant of an Option, have been continuously employed by
Cerner for less than two (2) weeks;

(b)       Persons who, immediately upon the grant of an Option, own directly or indirectly, or hold
options or rights to acquire under any agreement or Company plan, an aggregate of five percent (5%)
or more of the total combined voting power or value of all outstanding shares of all classes of
Cerner Common Stock; and

(c)       Persons who are customarily employed by the Company for less than twenty (20) hours per
week or for not more than five (5) months in any calendar year.

SECTION 5.    ENROLLMENT AND WITHDRAWAL

Each eligible Associate may enroll or re-enroll in the Plan as of the first day of any Option
Period (as hereinafter defined) after the Associate first becomes eligible to participate. To
enroll, an Associate must properly complete an enrollment form (including a payroll deduction
authorization) in a form and manner acceptable to the Administrator and submit it to the Company,
or use such other means to enroll as is authorized by the Administrator, within the time period
before the commencement of such Option Period as the Administrator may prescribe. Participation in
the Plan is voluntary. A “Participant” shall be an Associate enrolled in the Plan.

A Participant will automatically be enrolled in all future Option Periods unless the
Participant withdraws from the Plan. If a Participant withdraws from the Plan, he or she will
cease to be a Participant and may only participate in future Option Periods if he or she re-enrolls
in the Plan. Any Participant may withdraw from the Plan by notifying the Company in writing, via
electronic designation on the third party administrator’s website, or any other manner permitted by
the Administrator during the Option Period provided that such notification is at least three (3)
business days prior to the Purchase Date (as defined below). Upon such a withdrawal, the entire
amount contributed to the Plan by the Participant (and not yet used to purchase Common Stock) will
be refunded without interest as soon as administratively practicable. In the event that a
Participant notifies the Company within the three (3) day period prior to the Purchase Date, the
Participant will be withdrawn from participating in the next following Option Period.

SECTION 6.    GRANT OF OPTIONS

Unless changed by the Board or the Committee, the Plan will be implemented by four (4) annual
offerings of the Company’s Common Stock each calendar year (the “Option Periods”). In

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each year that the Plan is in effect, the first Option Period will begin on January 1 and end on
March 31, the second Option Period will begin on April 1 and end on June 30, the third Option
Period will begin on July 1 and end on September 30, and the fourth Option Period will begin on
October 1 and end on December 31.

Each person who is a Participant on the first day of an Option Period (the “Grant Date”) will
as of such day be granted an option for the Option Period (the “Option”). Such Option will be for
the purchase of a maximum number of shares of Common Stock to be determined by dividing (i) the
balance credited to the Participant’s Payment Account (as defined in Section 7(b)) during such
Option Period by means of payroll deduction (or such other means deemed acceptable by the
Administrator) as of the Purchase Date (as determined under Section 8 below), by (ii) the purchase
price per share of the Common Stock as determined under Section 8.

In no event shall a Participant be entitled to purchase, for any Option Period, more than the
lesser of (i) the number of shares obtained by dividing $25,000 by the fair market value of a share
of Common Stock on the Grant Date for such Option Period, or (ii) the maximum number of shares
permitted to be purchased under Section 7(c) below.

The Administrator will reduce, on a substantially proportionate basis, the number of shares of
Common Stock receivable by each Participant upon exercise of his or her Option for an Option Period
in the event that the number of shares then available under the Plan is otherwise insufficient, and
will return to Participant without interest any remaining unused balance in the Participant’s
Payment Account as soon as administratively practicable.

SECTION 7.    METHOD OF PAYMENT

(a)       Form of Payment. Payment for shares shall be made in installments through
after-tax payroll deductions during the Option Period, with such deductions taken from pay periods
paid during the Option Period, or in such other form of payment deemed acceptable by the
Administrator.

Subject to Section 18 and to the limits below and in Section 8, each Participant may elect
through payroll withholding during the Option Period (or such other means deemed acceptable by the
Company) to have credited to his or her Payment Account an amount not less than one percent (1%)
and not greater than twenty percent (20%) of Compensation (as defined below); provided that the
Administrator from time to time before an enrollment date may establish limits other than those
herein described for all purchases to occur during the relevant Option Period.

For purposes of the Plan, “Compensation” shall mean all compensation paid to the Participant
by the Company and currently includible in his or her income, including variable compensation (such
as commissions, bonuses or other short-term incentive payments), overtime, and other amounts
includible in the general definition of compensation provided in Treasury Regulation
§1.415-2(d)(1), plus any amount that would be so included but for the fact that it was contributed
to (a) a qualified plan pursuant to an elective deferral under Section 401(k) of the Code, (b) a
nonqualified deferred compensation plan, and/or (c) a cafeteria plan on a before-tax basis pursuant
to an election under Section 125 of the Code, but not including (i) payments under stock option
plans (including any amount of income recognized upon the exercise of a stock option) and other
employee benefit plans or other amounts excluded from the definition of compensation provided in
the Treasury Regulations under Section 415 of the Code, and (ii) reimbursements or other expense
allowances, fringe benefits (cash and

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noncash), moving expenses, payments of benefits under nonqualified deferred compensation plans, and
welfare benefits.

A Participant may decrease the rate of withholding on a prospective basis effective as to
future pay periods within an Option Period by giving written or electronic notice (in a form
acceptable to the Administrator) to the Company not less than two (2) weeks prior to the desired
effective date of such decrease. During the applicable enrollment period before an upcoming Option
Period, a Participant may increase the rate of withholding by giving written or electronic notice
(in a form acceptable to the Administrator) to the Company during such enrollment period; provided,
however, that such an increase in withholding shall be effective for the upcoming future Option
Period(s) only.

(b)      Accounts. A “Payment Account” means the book entry account maintained by the
Company or Administrator to record the amount of Participant’s payments made pursuant to Section
7(a) and any cash amount carried forward from an Option Period to the Grant Date for the next
Option Period pursuant to Section 9. All payments by each Participant shall be credited to such
Participant’s Payment Account pending the purchase of Common Stock in accordance with the
provisions of the Plan. All such amounts in the Payment Account shall be assets of the Company and
may be used by the Company for any corporate purpose. No interest will be paid on amounts credited
to a Participant’s Payment Account.

(c)      Limits on Purchase. In no event shall the rights of any Participant to purchase
shares (under this Plan and under any other stock purchase plans of Cerner which are intended to
qualify under Section 423 of the Code) accrue at a rate that exceeds $25,000 per calendar year as
measured by the fair market value of such shares (determined in the case of each such share as of
the Grant Date of the related Option). For purposes of administering this accrual limitation, the
Administrator shall limit purchases under the Plan as follows:

      (i)      The number of shares which may be purchasable by a Participant during his or her
first Option Period during a calendar year may not exceed a number of shares determined by
dividing $25,000 by the Fair Market Value of a Share on the Grant Date for that Option
Period.

     (ii)      The number of shares which may be purchasable by a Participant during any
subsequent Option Period during the same calendar year (if any) shall not exceed the number
of Shares determined by performing the calculation below:

            (A)      First, for each previous Option Period during the same calendar year, the
number of Shares purchased by the Participant during such previous Option Period
shall be multiplied by the Fair Market Value of a Share on the respective Grant Date
for such same previous Option Period.

            (B)      Second, the sum of all amounts calculated under (A) above (for all Option
Periods) shall be calculated.

            (C)      Third, the amount determined under (B) above shall be subtracted from
$25,000.

            (D)      Fourth, the amount determined under (C) above shall be divided by the Fair
Market Value of a Share on the Grant Date for such subsequent Option Period (for
which the maximum number of Shares purchasable is being determined by this
calculation) occurs. The quotient thus obtained shall be the maximum

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number of Shares which may be purchased by any Participant for such subsequent
Option Period.

SECTION 8.    PURCHASE PRICE

The purchase price of Common Stock issued pursuant to the exercise of an Option shall be
eighty-five (85%) of the fair market value of Common Stock on the last trading day of the Option
Period (the “Purchase Date”).

Fair market value shall mean the closing price of Common Stock as reported on the Nasdaq Stock
Market or other national securities exchange on which the Common Stock is then principally traded
or, if that measure of price is not available, on a composite index of such exchanges or, if that
measure of price is not available, in a national market system for securities. In the event that
there are no sales of Common Stock on any such exchange or market on the Purchase Date, the fair
market value of the Common Stock shall be deemed to be the closing sales price on the next
preceding day on which Common Stock is sold on any such exchange or market. In the event that the
Common Stock is not listed on any such market or exchange on the Purchase Date, a reasonable
valuation of the fair market value of the Common Stock on such dates shall be made by the
Administrator.

SECTION 9.    AUTOMATIC EXERCISE OF OPTIONS; STOCK TRANSFER RESTRICTIONS

If an Associate is a Participant in the Plan on a Purchase Date, he or she will be deemed to
have exercised the Option granted to him or her for the period ending on that Purchase Date. Upon
such exercise, the Company will apply the balance of the Participant’s Payment Account to the
purchase of the number of whole shares of Common Stock determined under Section 6 and, as soon as
practicable thereafter, will issue and deliver said whole shares to the Participant (unless Stock
Accounts are established by the Administrator pursuant to Section 2 of the Plan). Any cash
remaining in the Participant’s Payment Account shall either be carried forward to the next Grant
Date (without interest) and become a part of the Payment Account for the Option Period to which
such next Grant Date applies, or, upon written request of the Participant to the Administrator, be
paid to Participant without interest (unless Stock Accounts are established by the Administrator
pursuant to Section 2 of the Plan).

Notwithstanding anything herein to the contrary, Cerner’s obligation to issue and deliver
whole shares of Common Stock under the Plan will be subject to the approval required by any
governmental authority in connection with the authorization, issuance, sale or transfer of said
shares, to any requirements of any national securities exchange applicable thereto, and to
compliance by Cerner with other applicable legal requirements in effect from time to time.

This Plan is intended to satisfy the requirements of Section 423 of the Code. A Participant
will not obtain the benefits of this provision of the Code if such Participant disposes of shares
of Common Stock acquired pursuant to the Plan within two (2) years from the Grant Date or within
one (1) year from the date such Common Stock is purchased by the Participant, whichever is later.

Additionally, any shares of Common Stock issued under the Plan may not be sold, transferred or
assigned for a period of one (1) year after the date issued. Each certificate representing shares
of Common Stock issued under this Plan during such one (1) year period shall bear the following
legend:

“The Shares represented by this certificate may not be sold, transferred or
assigned, and the issuer shall not be required to give effect to any attempted sale,

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transfer or assignment, until a date that is more than one (1) year after the date
of issuance of this certificate.”;

or such other legend as shall be approved by the Administrator.

SECTION 10.    TERMINATION OF EMPLOYMENT

Subject to Section 11, upon the termination of a Participant’s employment with the Company for
any reason, the Participant’s Payment Account balance shall be frozen to future accruals and the
Participant shall be withdrawn from Plan participation and cease to be a Participant. Upon the
cessation of participation, any Option held by the Participant under the Plan shall be treated as
follows: (i) the Participant may give written notice to the Administrator within three (3) business
days after the Participant’s termination (so long as there is at least three (3) business days
remaining before the Purchase Date) of his/her desire to cancel his/her Option under the Plan, in
which case the Participant’s Payment Account balance will be returned to Participant; or, (ii) if
no such notice is received by Participant, or if there are less than three (3) business days
remaining before the Purchase Date when the written request is made, then the Option will be
exercised on the next Purchase Date. In the case of death of the Participant, the Participant’s
Payment Account shall be refunded in accordance with Section 11, without interest, as soon as
administratively practicable and the Participant will have no further rights under the Plan.

SECTION 11.    DEATH OF A PARTICIPANT

     As soon as administratively feasible after the death of a Participant, any Common Stock and/or
cash credited to the Participant under the Plan shall be delivered to the Participant’s executor,
administrator or other legal representative of the Participant’s estate. Such delivery and payment
shall relieve the Company of further liability to the deceased Participant or his/her estate with
respect to the Plan.

SECTION 12.    ASSIGNMENT

Except as provided in Section 11 above, a Participant’s Option, funds, securities, rights or
other property held for the account of a Participant shall not be sold, pledged, assigned,
transferred, or hypothecated in any way (whether by operation of law or otherwise) and shall not be
subject to sale under execution, attachment, or similar process. Any attempted sale, pledge,
assignment, transfer, hypothecation or other disposition of an Option, or levy of attachment or
similar process upon the Option not specifically permitted herein shall be null and void and
without effect. A Participant’s right to purchase shares under the Plan shall be exercisable
during the Participant’s lifetime only by the Participant. If this provision is violated, the
Participant’s election to purchase Common Stock shall terminate and the only obligation of the
Company remaining under the Plan will be to refund to the Participant the amount then credited to
his or her Payment Account and deliver to Participant any whole shares of Common Stock credited to
him or her under any Stock Account.

SECTION 13.    DISSOLUTION, MERGER AND CONSOLIDATION

Upon the dissolution or liquidation of the Company, or upon a merger or consolidation of the
Company in which the Company is not the surviving corporation, each Option granted hereunder shall
expire as of the effective date of such transaction; provided, however, that the Administrator
shall give at least 30 days’ written notice of such event to each Participant during which time he
or she shall have a right to exercise his or her wholly or partially unexercised Option

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and, subject to earlier exercise pursuant to Section 9, each Option shall be exercisable after
receipt of such written notice and prior to the effective date of such transaction.

SECTION 14.    EQUAL RIGHTS AND PRIVILEGES

All eligible Associates shall have equal rights and privileges with respect to the Plan so
that the Plan qualifies as an “employee stock purchase plan” within the meaning of Section 423 or
any successor provisions of the Code and related regulations. Any provision of the Plan that is
inconsistent with Section 423 or any successor provision of the Code shall without further act of
amendment by the Company be reformed to comply with the requirements of Section 423. This Section
14 shall take precedence over all other provisions of the Plan.

SECTION 15.    RIGHTS AS STOCKHOLDER

A Participant shall have no rights as a stockholder under an Option until he or she becomes a
stockholder as herein provided. A Participant will become a stockholder with respect to shares for
which payment has been completed as provided in Section 8 as of the close of business on the
Purchase Date for the Option Period.

SECTION 16.    MODIFICATION AND TERMINATION OF THE PLAN

The Board or the Committee may terminate the Plan at any time. The Board, the Committee or
one of its appointed delegates may at any time and from time to time amend the Plan in any manner
permitted by law. No amendment shall be effective unless within one (1) year after it is adopted,
the amendment is approved by Cerner’s shareholders in the manner prescribed under the Treasury
Regulations under Section 423 of the Code, if such amendment would:

	 	(i)	 	increase the number of shares reserved for purchase under the Plan, unless such
increase is by reason of any change in the capital structure of the Company referred to
in Section 3 hereof;

	 
	 	(ii)	 	change the designation of corporations or other entities whose employees may be
offered Options under the Plan, except as permitted under Treasury Regulations
§1.423-2(c)(4);

	 
	 	(iii)	 	materially modify the requirements as to eligibility for participation in the
Plan; or

	 
	 	(iv)	 	materially increase the benefits accruing to Participants under the Plan.

In the event the Plan is terminated, the Board or Committee may elect to terminate all
outstanding Options either immediately or upon completion of the purchase of shares on the next
Purchase Date, unless the Board has determined that the right to make all such purchases shall
expire on some other designated date occurring prior to the next Purchase Date. If Options are
terminated prior to expiration, all funds contributed to the Plan that have not been used to
purchase shares shall be returned without interest to the Participants.

SECTION 17.    BOARD AND SHAREHOLDER APPROVAL; EFFECTIVE DATE

This Plan was adopted by the Board on March 9, 2001. The Effective Date of the Plan is May 25,
2001, which was the date this Plan was approved by the shareholders of Cerner Corporation.

SECTION 18.    RETIREMENT PLAN HARDSHIP DISTRIBUTIONS

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In the event that a Participant has received a hardship distribution under the Cerner
Corporation Foundations Retirement Plan, such Participant shall be prohibited from making payments
under Section 7 of this Plan for a period of at least six (6) months (or, if the applicable
required suspension period under the applicable 401(k) laws relating to hardship distributions from
qualified 401(k) plans require a longer or shorter suspension period, such shorter or longer
period) after the Participant’s receipt of the hardship distribution,.

SECTION 19.    OTHER PROVISIONS

Options and other documentation under the Plan shall contain such other provisions as the
Administrator shall deem advisable, provided that no such provision shall conflict with the express
terms of the Plan.

SECTION 20.    USE OF FUNDS.

All payroll deductions received or held by the Company under the Plan may be used by the
Company for any corporate purpose. The Company shall not be obligated to segregate such payroll
deductions.

SECTION 21.    ERISA

This Plan is not subject to the provisions of the Employee Retirement Income Security Act of
1974.

SECTION 22.    EFFECT OF PLAN

The Provisions of the Plan shall, in accordance with its terms, be binding upon, and inure to
the benefit of, all successors of each Associate participating in the Plan, including, without
limitation, such Associate’s estate and the executors, administrators or trustees thereof, heirs
and legatees, and any receiver, trustee in bankruptcy or representative of creditors of such
Associate.

SECTION 23.    WITHHOLDING TAXES

Upon the exercise of any Option under the Plan, the Company shall have the right to require
the Associate to remit to the Company an amount sufficient to satisfy all federal, state and local
withholding tax requirements prior to the delivery of any certificate or certificates for shares of
Common Stock.

SECTION 24.    EMPLOYMENT RIGHTS

Nothing contained in the provisions of the Plan shall be construed to give to any individual
the right to be retained in the employ of the Company or to interfere with the right of the Company
to discharge any Associate at any time.

SECTION 25.    GOVERNING LAW

The Law of the State of Missouri will govern all matters relating to this Plan except to the
extent superseded by the federal laws of the United States.

8exv10wb

Exhibit 10(b)

CERNER CORPORATION

2005 ENHANCED SEVERANCE PAY PLAN

As Amended and Restated on January 1, 2008 (for I.R.C. § 409A) and on April 1, 2010

SECTION 1.   Introduction.

(a) Purpose. Cerner Corporation and its United States-based wholly-owned subsidiaries
(“Cerner”) value the contributions of their Associates and take measures to create and maintain a
productive and fulfilling work environment. However, Cerner recognizes that business needs, an
Associate’s work performance or other reasons may require termination of employment. At any point
during an Associate’s employment, Cerner may choose to terminate the employment relationship.

Because employment with Cerner is at-will, Cerner has no obligation to compensate any
Associate upon termination from his or her employment other than as may be provided in that
Associate’s Cerner Associate Employment Agreement or as specifically set forth in this 2005
Enhanced Severance Pay Plan (“Plan”). Cerner values its Associates and is interested in helping to
mitigate the financial hardship caused by business conditions or other factors necessitating a
termination.

(b) Overview. Generally, this Plan provides enhanced Severance Benefits to Associates
upon either a (i) “Non-CIC Severance” or (ii) “CIC Severance”, as such terms are defined herein.
Cerner expressly reserves the right to amend or terminate this Plan, or the benefits provided
hereunder, at any time; provided, however, that no such amendment or termination shall occur with
respect to the CIC Severance Benefits after the occurrence of a Change in Control.

(c) Summary Plan Description. This Plan document also constitutes the Summary Plan
Description for the Plan.

SECTION 2.   Definitions. 

Certain capitalized terms used herein are defined parenthetically throughout this Plan and/or
defined in this Section 2.

(a) Associate. “Associate” means an employee of Cerner.

(b) Beneficial Ownership. “Beneficial Ownership”, “Beneficial Owner” or “Beneficially
Own” shall have the same meaning as such terms are used in Rule 13d-3 of the Exchange Act.

(c) Board. “Board” means the Board of Directors of Cerner Corporation.

(d) Cause. “Cause” means an Eligible Associate’s (i) material breach of his/her
Employment Agreement or material neglect of his/her duties and responsibilities

 

 

thereunder, (ii) fraud against Cerner, (iii) misappropriation of Cerner’s assets, (iv)
embezzlement from Cerner, (v) theft from Cerner, (vi) acts resulting in the arrest and indictment
for a crime involving drug abuse, violence, dishonesty or theft or (vii) act or failure to take any
action that results in a violation of the Sarbanes-Oxley Act of 2002, or any related statutes, laws
or regulations.

(e) Change in Control. “Change in Control” means:

(i)The acquisition by any “Person” (as the term “person” is used for purposes of
Section 13(d) or 14(d) of the Exchange Act) of Beneficial Ownership of thirty-five percent
(35%) or more of either: (A) the then outstanding shares of common stock of Cerner
Corporation (the “Outstanding Cerner Common Stock”), or (B) the combined voting power of the
then outstanding voting securities of Cerner Corporation entitled to vote generally in the
election of the Board’s directors (the “Outstanding Cerner Voting Securities”); provided,
however, that for purposes of this subsection (i), the following acquisitions shall not
constitute a Change in Control: (X) any acquisition directly from Cerner, (Y) any
acquisition by Cerner or (Z) any acquisition by any Associate benefit plan (or related
trust) sponsored or maintained by Cerner Corporation or any corporation controlled by
Cerner; or

(ii)Individuals who, as of the date hereof, constitute the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a Board director subsequent to the date hereof whose
appointment or election, or nomination for election by Cerner’s shareholders, was approved
by a vote of at least a majority of the Board directors then comprising the Incumbent Board
shall be considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of office occurs
as a result of an actual or threatened election contest with respect to the election or
removal of Board directors or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board; or

(iii)Consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of Cerner (a “Business Combination”),
in each case, unless, following such Business Combination, (A) all or substantially all of
the individuals and entities who were the Beneficial Owners, respectively, of the
Outstanding Cerner Common Stock and Outstanding Cerner Voting Securities immediately prior
to such Business Combination Beneficially Own, directly or indirectly, more than 50% of,
respectively, the then outstanding shares of common stock and the combined voting power of
the then outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of Cerner Corporation resulting from such Business
Combination (including, without limitation, a corporation which as a result of such
transaction owns Cerner or all or substantially all of Cerner’s assets either directly or
through one or more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding Cerner Common Stock and
Outstanding Cerner Voting Securities, as the case may be, (B) no Person (excluding any
Associate benefit plan (or related trust) of Cerner or such

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corporation resulting from such Business Combination) Beneficially Owns, directly or
indirectly, 35% or more of, respectively, the then outstanding shares of common stock of
Cerner Corporation resulting from such Business Combination or the combined voting power of
the then outstanding voting securities of such corporation except to the extent that such
ownership existed prior to the Business Combination and (C) at least a majority of the
members of the Board resulting from such Business Combination were members of the Incumbent
Board at the time of the execution of the initial agreement, or of the action of the Board,
providing for such Business Combination; or

(iv)Approval by the shareholders of Cerner Corporation of a complete liquidation or
dissolution of Cerner.

(f) CIC Protected Period. “CIC Protected Period” means the period beginning on the
effective date of a Change in Control and ending on the one-year anniversary of such effective
date.

(g) CIC Severance. “CIC Severance” means, at any time during the CIC Protected
Period, an Eligible Associate’s termination of employment with Cerner (or its successor), that that
also qualifies as a separation from service under Section 409A of the Code, due to (i) Cerner’s (or
its successor’s) termination without Cause of the Eligible Associate’s employment, or (ii) the
Eligible Associate’s resignation for Good Reason.

(h) CIC Severance Benefits. “CIC Severance Benefits” means those severance benefits
set forth in Section 4(b) that, provided an Eligible Associate is entitled to receive such benefits
in accordance with Section 3, the Eligible Associate receives following a CIC Severance.

(i) CIC Week of Severance Pay. A “CIC Week of Severance Pay” means an Eligible
Associate’s: (i) regular weekly base rate of pay in effect on the effective date of a CIC Severance
(prior to any reductions taken for payroll taxes, income tax withholdings, elective deferrals made
to or in connection with Cerner’s Associate benefit plans or Executive Deferred Compensation Plan,
and excluding any overtime, bonuses, commissions, premium pay, benefits, expense reimbursements,
etc.), plus (ii) the average annual cash bonus the Associate had received from Cerner during the
three (3) years preceding the CIC Severance (prior to any reductions taken for payroll taxes,
income tax withholdings, elective deferrals made to or in connection with Cerner’s Associate
benefit plans or Executive Deferred Compensation Plan, and excluding any overtime, bonuses,
commissions, premium pay, benefits, expense reimbursements, etc.), divided by 52 weeks. For
example, a CIC Week of Severance Pay for an Eligible Associate whose: (i) annual base salary
(excluding the pay and benefits listed above) is $52,000, and (ii) whose average annual cash bonus
received during the three (3) years preceding the CIC Severance is $15,600, would be $1,000
($52,000/52 weeks) plus $300 ($15,600/52 weeks), equaling a CIC Week of Severance Pay of $1,300.
Cerner’s cash bonus plan currently pays a bonus, if earned, following each fiscal quarter of
Cerner. When calculating the average annual cash bonus, the actual cash bonus paid to the
Associate (or earned but not yet paid for the most recent full fiscal quarter preceding the CIC
Severance) for the twelve (12) consecutive full Cerner fiscal quarters immediately preceding the
CIC Severance shall be included in the calculation of the Associate’s average annual cash bonus for
the three (3) years preceding the

3

 

CIC Severance. If the Associate has not been employed by Cerner for twelve (12) consecutive
full Cerner fiscal quarters immediately prior to the CIC Severance, the average annual cash bonus
received by such Associate shall be calculated based on the number of consecutive full fiscal
quarters the Associate has been employed by Cerner immediately prior to the CIC Severance and
adjusted to equal a yearly average. For avoidance of all doubt, the calculation of average annual
cash bonus shall not include any sales commissions or similar payments received by an Associate
based on individual sales or contracts signed with Cerner clients.

(j) COBRA. “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended.

(k)Code. “Code” means the Internal Revenue Code of 1986, as amended.

(l) Eligible Associate. “Eligible Associate” means an individual who: (i) is a
permanent, full-time salaried Associate on the U.S. payroll of Cerner, as determined by Cerner’s
employment records; and (ii) has entered into an Employment Agreement. The determination of
whether an Associate is an Eligible Associate shall be made by the Plan Administrator, in its sole
discretion, and such determination shall be binding and conclusive on all persons. In no event
shall part-time Associates, interns or independent contractors be Eligible Associates.

(m)Employment Agreement. “Employment Agreement” means an Eligible Associate’s then
current Cerner Associate Employment Agreement with Cerner.

(n) Exchange Act. “Exchange Act” means the Securities Exchange Act of 1934, as
amended.

(o) Excess Severance Benefits. “Excess Severance Benefits” means any Severance
Benefits that exceed the limit provided in Treas. Reg. Section 1.409A-1(b)(9)(iii).

(p) Good Reason. “Good Reason” means, without an Eligible Associate’s express written
consent: (i) a material adverse change in the Eligible Associate’s authority, duties or job
responsibilities (except for such subordination in duties and job responsibilities as may normally
be required due to Cerner’s change from an independent business entity to a subsidiary or division
of another corporate entity); or (ii) a reduction of 5% or more to an Eligible Associate’s annual
salary and cash bonus opportunity in effect prior to the Change in Control; provided, however, the
Eligible Associate must provide notice to Cerner (or its successors) within 30 days after the
adverse change or reduction and must give Cerner (or its successors) at least 30 days to remedy the
event or condition. In no event will an isolated, insubstantial and inadvertent action not taken
in bad faith and which is remedied by Cerner (or its successors) constitute Good Reason.

(q) Non-CIC Severance. “Non-CIC Severance” means at any time, other than during a CIC
Protected Period, an Eligible Associate’s termination of employment with Cerner, that also
qualifies as a separation from service under Section 409A of the Code, by Cerner, other than for
Cause, due to reorganization, restructuring, unsatisfactory work performance (other than where such
unsatisfactory work performance is deliberate), or for other reasons as determined by the Plan
Administrator in its sole discretion to constitute a Non-CIC Severance. Without limitation, the
following events and reasons shall not constitute a Non-CIC Severance:

4

 

(i)  death;

(ii) disability;

(iii) voluntary resignation (regardless of the circumstances surrounding the Eligible
Associate’s decision to resign);

(iv) retirement;

(v) discharge by Cerner for any other work related reason other than redundancy or
unsatisfactory work performance (including, without limitation, absenteeism, misconduct, refusal to
transfer to an equivalent position that does not require relocation, failure to return to work
after an approved leave of absence, insubordination, violation of Cerner’s rules or policies,
dishonesty, deliberate unsatisfactory performance, etc.);

(vi) entering military duty;

(vii)CIC Severance; or

(viii)Termination for Cause.

(r) Non-CIC Severance Benefits. “Non-CIC Severance Benefits” means those severance
benefits set forth in Section 4(a) that, provided an Eligible Associate is entitled to receive such
benefits in accordance with Section 3, the Eligible Associate receives following a Non-CIC
Severance.

(s) Plan Administrator. “Plan Administrator” means the person or entity specified as
such in Section 7.

(t) Role Level. “Role Level” means an Eligible Associate’s designated category of
employment as specified by Cerner’s current employment classification hierarchy. In the event
Cerner changes its hierarchy structure, the Role Levels specified in this Plan shall refer to the
equivalent Role Level under any new classification scheme.

(u)Severance Benefits. “Severance Benefits” means either CIC Severance Benefits or
Non-CIC Severance Benefits.

(v)Specified Associate. “Specified Associate” means an Associate that would be a
“specified employee” as defined in Section 409A(a)(2)(B)(i) of the Code and Department of Treasury
regulations and other interpretive guidance issued thereunder.

(w)Week of Severance Pay. “Week of Severance Pay” means an Eligible Associate’s
regular weekly base rate of pay in effect on the effective date of a Non-CIC Severance (prior to
any reductions taken for payroll taxes, income tax withholdings, elective deferrals made to or in
connection with Cerner’s Associate benefit plans or Executive Deferred Compensation Plan, and
excluding any overtime, bonuses, commissions, premium pay, benefits, expense reimbursements, etc.).
For example, a Week of Severance Pay for an Eligible Associate

5

 

whose annual base salary as of the Non-CIC Severance (excluding the pay and benefits listed
above) is $52,000, would be $1,000 ($52,000/52 weeks).

(x) Year of Service. “Year of Service” means, with respect to an Eligible Associate,
each period of twelve (12) consecutive months of full-time employment by Eligible Associate with
Cerner beginning with the Associate’s full-time employment commencement date with Cerner and ending
with the day preceding the anniversary of such date in the next and all succeeding years. No
partial Years of Service shall be credited under this Plan nor will prorated Severance Benefits be
paid for any fractional Year of Service.

SECTION 3.   Entitlement for Severance Benefits

(a) Entitlement. Subject to the exceptions set forth below in Section 3(b), an
Eligible Associate shall be entitled to receive either the Non-CIC Severance Benefits or the CIC
Severance Benefits described below in Section 4, upon experiencing a Non-CIC Severance or CIC
Severance, respectively, and provided that the following conditions are satisfied:

(i)  The Eligible Associate’s termination of employment with Cerner must have constituted
either a CIC Severance or Non-CIC Severance. In no event shall an Associate’s leave during one of
Cerner’s recognized leave programs constitute a termination of employment event under this Plan,

(ii) Following or in connection with the Eligible Associate’s termination of employment, the
Eligible Associate must comply with all transition assistance requests of Cerner, to Cerner’s
satisfaction, such as aiding in the location of files and documents, returning all Cerner property
and repaying any amounts owed Cerner, and

(iii) With respect to and in connection with a Non-CIC Severance only, the Eligible Associate
has, after the Eligible Associate’s termination of employment, properly executed and delivered to
Cerner a Severance and Release Agreement with Cerner that provides for an irrevocable and complete
release of all present and future claims by Eligible Associate.

(b) Exceptions to Severance Entitlement. An Eligible Associate will not receive
Severance Benefits under this Plan in the following circumstances, as determined in the Plan
Administrator’s sole discretion:

(i)  The Eligible Associate’s Associate Employment Agreement (or amendments or supplement
thereto) provides that none of the benefits provided under this Plan or any other broad-based
Cerner severance plan or policy shall apply to such Associate. In such a case, such Associate’s
severance benefits, if any, shall be governed by the terms of such Associate Employment Agreement
(as amended or supplemented).

(ii) The Associate breaches the terms and conditions of his/her Cerner Associate Employment
Agreement (including, without limitation, violating the non-competition provisions thereof).

(iii) With respect to Non-CIC Severance Benefits only: (a) the Eligible Associate’s employment
termination is in connection with the sale, divesture or other disposition

6

 

of the stock or assets of any subsidiary, division or other operating unit of Cerner or any of
its subsidiaries (“Operating Unit”) (or part thereof) which does not constitute a Change in Control
(a “Transaction”), and the Eligible Associate is offered continued employment, or continues in
employment, with the divested Operating Unit (or part thereof) or the purchaser of the stock or
assets of the Operating Unit (or part thereof), or one of such purchaser’s affiliates (the
“Post-Transaction Employer”), as the case may be, on terms and conditions that would not constitute
Good Reason, and (b) Cerner obtains an agreement from the Post-Transaction Employer, enforceable by
the Eligible Associate, to provide (or Cerner agrees to provide) severance pay, if the Eligible
Associate accepts the offered employment or continues in employment with the Post-Transaction
Employer or its affiliates following the Transaction, at least equal to the severance pay set forth
in Section 4(a) payable upon a Non-CIC Severance termination of the Eligible Associate’s employment
with the Post-Transaction Employer or its affiliates within the six (6) month period following the
Transaction. For purposes of this Section 3(b)(iii), the term “Good Reason” shall have the meaning
ascribed to it in this Plan, but the term “Cerner” as it is used in such definition shall be deemed
to refer to the Post-Transaction Employer employing the Eligible Associate after the Transaction.
For avoidance of doubt, in the circumstances described in the first sentence of this Section
3(b)(iii), the Eligible Associate shall not be entitled to receive Non-CIC Severance Benefits under
Section 4(a) whether or not the Eligible Associate accepts the offered employment or continues in
employment. Except as to separate severance benefits Cerner may itself expressly agree to in
writing to provide in connection with a Transaction (as contemplated by subpart (b) of the first
sentence of this Section 3(b)(iii)), the provisions of this Section 3(b)(iii) do not create any
entitlement to Severance Benefits from Cerner in any circumstances whatsoever and are to be
construed solely as a limitation on such entitlement in the circumstances herein set forth.

SECTION 4.   Severance Benefits.

(a) Non-CIC Severance Benefits: If the termination of an Eligible Associate’s
employment constitutes a Non-CIC Severance, Cerner shall pay the Eligible Associate an amount of
severance pay based on the Eligible Associate’s Role Level and Years of Service with Cerner as of
the effective date of such termination. The amount of such severance pay shall be equal to: (i) a
Week of Severance Pay for such Eligible Associate multiplied by (ii) that number set forth in a
severance matrix, adopted periodically by management, outlining the severance benefits to which
Eligible Associates shall be entitled (“Severance Matrix”). The Severance Matrix shall be attached
hereto as Exhibit A, and dated to reflect the most recent adoption date by management.

(b) CIC Severance Benefits. If the termination of an Eligible Associate’s employment
constitutes a CIC Severance, Cerner shall pay the Eligible Associate an amount of severance pay
based on the Eligible Associate’s Role Level and Years of Service with Cerner as of the effective
date of such termination. The amount of such CIC Severance Benefits shall be equal to: (i) a CIC
Week of Severance Pay for such Eligible Associate multiplied by (ii) that number set forth in the
current Severance Matrix, multiplied by 1.5.

7

 

(c) Form of Payment.

(i)  Except with respect to Excess Severance Benefits, in the event of a Non-CIC Severance that
occurs before any Change in Control, Non-CIC Severance Benefits shall be paid in a lump sum or, if
the Plan Administrator elects, as salary continuation (without interest) on regularly scheduled
paydays of Cerner for the applicable severance period or some other method, but in no event shall
payments continue beyond the last day of the second calendar year following the calendar year the
Non-CIC Severance occurs.

(ii) Subject to Section 4(c)(v) below, in the event of a CIC Severance, CIC Severance Benefits
shall be paid in a lump sum as soon as practicable within 90 days of the CIC Severance.

(iii)Subject to Section 4(c)(v) below, in the event of a Non-CIC Severance that occurs after
any Change in Control, Non-CIC Severance Benefits shall be paid in a lump sum as soon as
practicable within 90 days of the Non-CIC Severance.

(iv)Subject to Section 4(c)(v) below, all Excess Severance Benefits shall be paid in a lump
sum as soon as practicable within 90 days of the CIC Severance or Non-CIC Severance.

(v)  If the Associate receiving any Severance Payment under this Plan is a Specified
Associate, then any payment that the Associate would otherwise have been paid under Section
4(c)(ii), (iii) or (iv) above shall be paid on the first day of the seventh month following the CIC
or Non-CIC Severance.

(vi)Any Severance Benefits, including Excess Severance Benefits, that are subject to the
offset provisions of Section 6(c) of the Plan will be paid at the time and in the form the Company
determines would allow payment of such offset benefits to comply with Code section 409A.

(d) Withholding. All Severance Benefits made under this Plan will be subject to
applicable withholding for federal, state and local taxes. If any Eligible Associate is indebted
to Cerner at his or her termination date, Cerner reserves the right to offset any Severance
Benefits under this Plan by the amount of such indebtedness.

SECTION 5.   Employment.

(a) No Modification of Associate Employment Agreements. This Plan shall not modify
any terms of an Eligible Associate’s Employment Agreement, including but not limited to the type of
employment relationship, the Associate’s obligations and continuing obligations set forth therein.

(b) Limitation on Associate Rights. This Plan shall not give any Associate the right
to be retained in the service of Cerner or interfere with or restrict the right of Cerner to
terminate the employment of any Associate.

8

 

(c) Changed Decisions. Cerner has the right to cancel or reschedule the effective
date of an Eligible Associate’s employment termination. An Eligible Associate will not be eligible
for any Severance Benefits under this Plan if the Eligible Associate’s employment termination is
canceled by Cerner, or if the Eligible Associate is offered an opportunity to return to work or
have his or her employment reinstated with Cerner.

SECTION 6.   Relation to Other Benefits and Pay

(a) COBRA. Associates and their dependents covered under one or more of Cerner’s
group health plans may be eligible for continuation coverage pursuant to the federal COBRA law.
This Plan does not provide Associates or their dependents with any greater right to continuation
coverage than what the federal COBRA law requires.

(b) Other Benefit Plans. Eligibility, coverage and benefits under other Cerner
benefit plans (e.g., any group life, disability, accidental death, retirement, stock plans, etc.)
are governed by the terms of those respective plans. This Plan does not provide Associates or
their beneficiaries and dependents with any greater eligibility, coverage or benefits than what
such plans provide.

(c) Offset of Benefits. Except as may otherwise be specifically provided for in an
Associate’s Employment Agreement, the amount of any Severance Benefits paid under this Plan is in
lieu of, and not in addition to, any other severance an Eligible Associate may otherwise be
entitled to receive from Cerner, including under a Cerner Associate Employment Agreement or other
document. Notwithstanding the payment provisions of Section 4(c) and subject to the immediately
preceding sentence, the Company may, at its sole option and discretion, pay other severance
benefits according to the time and form specified in the plan or agreement to which the other
severance benefit applies, if the Company determines that doing so would allow both this Plan and
the other plan or agreement to operate in compliance with Code section 409A.

(d) Integration with Other Payments. Severance Benefits paid under this Plan are not
intended to duplicate benefits such as pay-in-lieu of notice, severance pay, workers compensation
wage replacement, disability pay, or similar benefits or pay under other benefit plans, severance
programs, employment agreements, transaction documents or applicable laws, such as the WARN Act.
In the event such other pay or benefits is payable to an Eligible Associate, Severance Benefits
under this Plan will be reduced accordingly or, alternatively, pay or benefits previously paid
under this Plan will be treated as having been paid to satisfy other pay or benefit obligations.
In either case, the Plan Administrator, in its sole discretion, will determine how to apply this
provision and may override other provisions in the Plan in doing so. This provision, however,
shall not preclude an otherwise Eligible Associate from receiving any payments under a Cerner
Performance Plan (CPP) or any pay for accrued vacation under Cerner’s separate CPP or vacation
policy, as may be amended from time-to-time. CPP and pay for accrued vacation, if any, shall be
paid pursuant to the terms of those separate plans or policies.

(e) Reemployment. If an Eligible Associate is reemployed by Cerner while Severance
Benefits are still payable under the Plan, all such Severance Benefits will cease, except as
otherwise specified by the Plan Administrator, in its sole discretion.

9

 

SECTION 7.   Plan Administration.

(a) Plan Administrator. The Plan is administered by Cerner, which is the Plan
Administrator under the Employee Retirement Income Security Act of 1974 (“ERISA”). It is the
responsibility of the Plan Administrator to ensure that the Plan is administered in accordance with
its terms. It is also the responsibility of the Plan Administrator to explain any rights and
benefits that an Eligible Associate may have under the Plan and to answer any questions which an
Eligible Associate may have. The Plan Administrator maintains all documents which comprise the
Plan and annual filings, if any, which are prepared for the Plan. If you have any questions
regarding the Plan, you should review these available documents. The Plan Administrator may, but
is not required to, adopt rules and regulations of uniform applicability in its interpretation and
implementation of the Plan. The Plan Administrator may require each Eligible Associate to submit,
in such form as it shall deem reasonable and acceptable, proof of any information which the Plan
Administrator finds necessary or desirable for the proper administration of the Plan.

(b) Exclusive Discretion. The Plan Administrator has full and complete discretionary
authority to determine eligibility for benefits under the Plan and to construe and interpret the
terms of the Plan. In making any decision or resolving any disputes, Cerner shall have full and
complete discretionary authority to (i) construe and interpret the provisions of the Plan and to
determine the right of any person to any interest in or eligibility for any benefit under the Plan,
and (ii) make any and all factual determinations necessary to determine the right of any person to
any interest in or eligibility for any benefit under the Plan; and, no person shall be entitled to
any benefit or interest under this Plan if Cerner decides in its discretion that there is no
entitlement to that benefit or interest. Decisions of Cerner shall be final, binding and
conclusive upon all parties.

SECTION 8.   Amendment or Termination

Cerner, acting through its Chief Executive Officer, Chief Financial Officer, Chief Legal
Officer or Chief People Officer, has the right, in its nonfiduciary capacity, to amend the Plan or
to terminate it at any time, prospectively or retroactively, for any reason or no reason, without
notice, including discontinuing or eliminating benefits; provided, however, that no such amendment
or termination shall affect the right to any unpaid benefit of any Eligible Associate whose
termination date has occurred prior to such amendment or termination of the Plan and provided
further that no amendment or termination shall occur with respect to the CIC Severance Benefits
after the occurrence of a Change in Control.

SECTION 9.   Claims and Appeal Procedure

(a) Initial Claim. If benefits under this Plan become due, the Plan Administrator
will notify you as to the amount of benefits you are entitled to, the duration of such benefit, the
time the benefit is to commence and other pertinent information concerning your benefit. If you
have been denied a benefit under the Plan, or if you feel that the benefit which has been given to
you is not accurate, you may file a claim with the Plan Administrator. If a claim for benefit is
denied by the Plan Administrator, the Plan Administrator shall provide you with written or
electronic notification of any adverse benefit determination within ninety (90)

10

 

days after receipt of the claim unless special circumstances require an extension of time for
processing the claim. If such an extension of time for processing is required, written or
electronic notice indicating the special circumstances and the date by which a final decision is
expected to be rendered shall be furnished to you. In no event shall the period of extension
exceed one hundred eighty (180) days after receipt of the claim. The notice of denial of the claim
shall set forth:

(i)  The specific reason or reasons for the adverse determination;

(ii) Reference to the specific plan provisions on which the determination is based;

(iii)A description of any additional material or information necessary for you to perfect the
claim, and an explanation of why such material or information is necessary; and

(iv)A description of the plan’s review procedures and the time limits applicable to such
procedures, including a statement of your right to bring a civil action under ERISA section 502(a)
following an adverse benefit determination on review.

You (or your duly authorized representative) may review pertinent documents and submit issues
and comments in writing to the Plan Administrator. If you fail to appeal such action to the Plan
Administrator in writing within the prescribed period of time described in the next section, the
Plan Administrator’s adverse determination shall be final, binding and conclusive.

(b) Appeal. In the event of an adverse benefit determination, you may appeal the
adverse determination by giving written notice to the Plan Administrator within 60 days after
receipt of the notice of adverse benefit determination. The Plan Administrator may hold a hearing
or otherwise ascertain such facts as it deems necessary and shall render a decision which shall be
binding upon both parties. The appeal procedure shall:

(i)  Provide you at least 60 days following receipt of a notification of an adverse benefit
determination within which to appeal the determination;

(ii) Provide you the opportunity to submit written comments, documents, records, and other
information relating to the claim for benefits;

(iii)Provide that you shall be provided, upon request and free of charge, reasonable access
to, and copies of, all documents, records, and other information relevant to your claim for
benefits; and

(iv)Provide for a review that takes into account all comments, documents, records, and other
information submitted by you relating to the claim, without regard to whether such information was
submitted or considered in the initial benefit determination.

The decision of the Plan Administrator shall be made within sixty (60) days after the receipt
by the Plan Administrator of the notice of appeal, unless special circumstances

11

 

require an extension of time for processing, in which case a decision of Cerner shall be
rendered as soon as possible but not later than one hundred twenty (120) days after receipt of the
request for review. If such an extension of time is required, written or electronic notice of the
extension shall be furnished to you prior to the commencement of the extension. The decision of
the Plan Administrator shall be provided in written or electronic form to you and shall include the
following:

(i)  The specific reason or reasons for the adverse determination;

(ii) Reference to the specific plan provisions on which the benefit determination is based;

(iii) A statement that you are entitled to receive, upon request and free of charge,
reasonable access to, and copies of, all documents, records, and other information relevant to your
claim for benefits. Whether a document, record, or other information is relevant to a claim for
benefits shall be determined by reference to DOL Regulation Section 2560.503-1 (m)(8); and

(iv) A statement describing any voluntary appeal procedures offered by the Plan and your right
to obtain the information about such procedures, and a statement of your right to bring an action
under ERISA section 502(a).

SECTION 10.   Statement of ERISA Rights

The following statement is required by federal statute. Certain portions of this statement
may not apply to your particular situation or to this Plan.

(a) Information About This Plan and Your Benefits. If you become a participant in the
Cerner Corporation Enhanced Severance Pay Plan you are entitled to certain rights and protections
under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan
participants shall be entitled to:

	 	•	 	Examine, without charge, at the Plan Administrator’s office and at other specified
locations, the Plan documents and, if any, copies of all documents filed by the Plan
with the U.S. Department of Labor, such as detailed annual reports and plan
descriptions.

	 
	 	•	 	Obtain copies of all Plan documents and other plan information upon written request
to the Plan Administrator. The Plan Administrator may make a reasonable charge for the
copies.

	 
	 	•	 	Receive a summary of the Plan’s annual financial report, if one is required to be
prepared. The Plan Administrator is required by law to furnish each participant with a
copy of this summary annual report if an annual report is required to be filed with the
Department of Labor.

(b) Prudent Actions by Plan Fiduciaries. In addition to creating rights for plan
participants, ERISA imposes duties upon the people who are responsible for the operation of the

12

 

employee benefit plan. The people who operate your plan, called “fiduciaries” of the plan,
have a duty to do so prudently and in the interest of you and other plan participants and
beneficiaries. No one, including your employer or any other person, may fire you or otherwise
discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising
your rights under ERISA.

(c) Enforce Your Rights. If your claim for a Plan benefit is denied in whole or in
part you must receive a written explanation of the reason for the denial. You have the right to
have the Plan review and reconsider your claim. Under ERISA, there are steps you can take to
enforce the above rights. For instance, if you request materials from the Plan and do not receive
them within 30 days, you may file suit in a federal court. In such a case, the court may require
the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the
materials, unless the materials were not sent because of reasons beyond the control of the
administrator. If you have a claim for benefits which is denied or ignored, in whole or in part,
you may file suit in a state or federal court. If it should happen that plan fiduciaries misuse
the plan’s money, or if you are discriminated against for asserting your rights, you may seek
assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court
will decide who should pay court costs and legal fees. If you are successful the court may order
the person you have sued to pay these costs and fees. If you lose, the court may order you to pay
these costs and fees, for example, if it finds your claim is frivolous.

(d) Assistance with Your Questions. If you have any questions about this Plan, you
should contact the Plan Administrator. If you have any questions about this statement or about
your rights under ERISA, you should contact the nearest office of the Employee Benefits and
Security Administration, U.S. Department of Labor, listed in your telephone directory, or the
Division of Technical Assistance and Inquiries, Employee Benefits and Security Administration, U.S.
Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.

SECTION 11.   Additional Information

(a) Name and Address of Plan Sponsor and Plan Administrator. The name and address of
the Plan Sponsor and the Plan Administrator is:

Cerner Corporation

2800 Rockcreek Parkway

North Kansas City, MO 64117

EIN: 43-1196944

Telephone: (816) 201-1024

(b) Type of Administration. The Plan is administered by Cerner Corporation.

(c) Plan Number. The Plan number is 513.

(d) Plan Year. The Plan Year ends on December 31.

(e) Agent For Service of Legal Process. Service of legal process may be made upon the
Plan Sponsor (which is also the Plan Administrator) at the above address.

13

 

(f) Plan Costs. Plan costs are paid by Cerner. The Plan is funded out of Cerner’s
general assets.

(g)Insurance. Benefits provided by this Plan are not insured by the Pension Benefit
Guaranty Corporation under Title IV of ERISA because the insurance provisions under ERISA are not
applicable to the Plan.

SECTION 12.   Governing Law. 

This Plan is an “employee welfare benefit plan” within the meaning of Section 3(1) of ERISA
and it shall be interpreted, administered, and enforced in accordance with that law. To the extent
that state law is applicable, the statutes and common law of the State of Missouri, excluding any
that mandate the use of another jurisdiction’s laws, shall apply. Without limiting the generality
of this Section 12, it is intended that the Plan comply with Section 409A of the Code, and, in the
event that this Plan is determined to be a “deferred compensation plan” within the meaning of
Section 409A(d)(1) of the Code, Cerner shall, as necessary, adopt such conforming amendments as are
necessary to comply with Section 409A of the Code.

SECTION 13.   Basis of Payments to and From the Plan

The Plan shall be unfunded, and all cash payments under the plan shall be paid only from the
general assets of Cerner.

SECTION 14.   Limitation on IRC Section 280G Parachute Payments

In the event that any Severance Benefit payment to be made under this Plan would cause an
Eligible Associate to be liable for any excise tax under Code section 4999(a), the aggregate amount
of such Severance Benefit shall be reduced by the minimal amount necessary such that the Eligible
Associate is no longer subject to such excise tax. Any determination or calculation made by
Cerner relating to this Section 14, including, but not limited to, any calculation of an Eligible
Associate’s “base amount” as defined in Code section 280G(b)(3), or an Eligible Associate’s
anticipated “parachute payment,” as defined in Code section 280G(b)(2), shall be final, conclusive
and binding on the Eligible Associate.

SECTION 15.   Construction. 

Where the context so indicates, the singular will include the plural and vice versa. Titles
are provided herein for convenience only and are not to serve as a basis for interpretation or
construction of the Plan. Unless the context clearly indicates to the contrary, a reference to a
statute or document shall be construed as referring to any subsequently enacted, adopted, or
executed counterpart.

14

 

Severance Matrix

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Years of Service	 	 	Less than 2 years	 	 	>2, less than 5	 	 	>5, less than 10	 	 	> 10	 
	 	Role Level	 	 	Severance Weeks	 	 	Severance Weeks	 	 	Severance Weeks	 	 	Severance Weeks	 
	 	Executive Cabinet/Executive Officers / EVP
	 	 	 	16	 	 	 	 	24	 	 	 	 	36	 	 	 	 	52	 	 
	 	Senior Vice President
	 	 	 	13	 	 	 	 	20	 	 	 	 	30	 	 	 	 	42	 	 
	 	Vice President
	 	 	 	10	 	 	 	 	16	 	 	 	 	24	 	 	 	 	32	 	 
	 	Senior Director
	 	 	 	8	 	 	 	 	14	 	 	 	 	21	 	 	 	 	28	 	 
	 	Director
	 	 	 	6	 	 	 	 	12	 	 	 	 	18	 	 	 	 	24	 	 
	 	Levels 2 and 3 (Managers/Senior Managers)
	 	 	 	4	 	 	 	 	8	 	 	 	 	12	 	 	 	 	16	 	 
	 	Levels 4 and 5 (Senior Staff)
	 	 	 	3	 	 	 	 	6	 	 	 	 	9	 	 	 	 	12	 	 
	 	Levels 6 and 7 (Staff)
	 	 	 	2	 	 	 	 	4	 	 	 	 	6	 	 	 	 	8	 	 
	 

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