Document:

EX-10.22

 

Exhibit 10.22

2008 TERMS AND CONDITIONS

FOR A RESTRICTED STOCK UNIT GRANT (RES)

UNDER THE MEDCO HEALTH SOLUTIONS, INC. 2002 STOCK INCENTIVE PLAN

This is a summary of the terms applicable to restricted stock unit grant specified on this
document. Different terms may apply to any other grant under the Medco Health Solutions, Inc. 2002
Stock Incentive Plan.

I. GENERAL INFORMATION

	 	 	 	 	 
	Grant Type:

	 	Restricted Stock Unit (RES)

	Grant Code:

	 	ANNL

	Grant Date:

	 	February 22, 2008

	 
	 	 	 	 
	Vesting Date

	 	Portion that Vests

	February 22, 2011

	 	100%	 	 

This grant becomes convertible on the Vesting Date indicated in the accompanying box. If your
employment with Medco Health Solutions, Inc. (Company) ends for any reason, your right to this
grant will be determined according to the terms in Section II.

II. TERMINATION OF EMPLOYMENT

A. General Rule. If your employment is terminated for any reason other than those specified in the
following paragraphs, this grant, if unvested, will be forfeited on the date your employment ends.

B. Retirement. If you retire from service with the Company (defined as 60 years of age with 15
years of service) a portion of this grant will become non-forfeitable on the date of your
retirement and will be converted and paid on the applicable Vesting Date. The non-forfeitable
portion will be equal to 1/36th of the total number of shares subject to the grant multiplied by
the number of months that have elapsed between the grant date and the date of termination. The
portion of this grant that will not vest will be forfeited on the date your employment ends.

C. Disability. If your employment terminates as a result of your Disability, this grant will
continue to vest and will be converted and paid on the applicable Vesting Date.

D. Death. If you die, this grant, if unvested, will vest and will be converted and paid on the
date of your death.

E. Separation. If your employment is terminated by the Company and the Company determines that
such termination resulted from the elimination of your job, you will be considered “separated” and
will be offered an agreement containing a general release of claims in a form acceptable to the
Company. If the agreement becomes effective, a portion of this grant will become non-forfeitable
on the date of your separation and will be converted and paid on the applicable Vesting Date. The
non-forfeitable portion will be equal to 1/36th of the total number of shares subject to the grant
multiplied by the number of months that have elapsed between the grant date and the date of
termination. The portion of this grant that will not vest will be forfeited on the date your
employment ends. If the agreement does not become effective, then you will be treated as
terminated under paragraph A, above.

F. Misconduct. If your employment is terminated as a result of your deliberate, willful or gross
misconduct this grant, if unvested, will be forfeited immediately upon such termination.

G. Change in Control. If your employment is terminated by the Company Within Two Years of a Change
in Control (as those terms are defined in the Plan), for any reason other than resignation or one
of the reasons specified in paragraphs B-F above, this grant if unvested, will become
non-forfeitable and will be paid on the date of your termination of employment.

III. ADJUSTMENTS

In the event of a reorganization, recapitalization, stock split, stock dividend, combination of
shares, merger, consolidation, rights offering, spin off, split off, split up or other event
identified by the Board of Directors, the Board shall make such proportional adjustments as are
necessary to preserve the benefits or potential benefits of the grant. Any such determination shall
be final, binding and conclusive on all parties.

IV. SECTION 409A COMPLIANCE

This grant is intended to comply with the requirements of Section 409A of the Internal Revenue Code
of 1986, as amended. In the event grantee has made a deferral election with respect to this award,
grantee agrees that the non-forfeitable portion of the award shall be determined according to
Section II hereof and payment of the award shall be made in accordance with the deferral election.
In order to comply with the requirements of Section 409A, by accepting this grant, the grantee
agrees that any restricted stock unit previously granted to grantee under the 2002 Stock Incentive
Plan which remains unvested as of the Grant Date is amended to provide that in the event of
“separation” the grant shall be treated as specified in Section II.E. above.

Page 1 of 2

 

V. RESTRICTIONS

If you violate any of the following Restrictions/Covenants, this restricted stock unit, if
unvested, will terminate immediately and be null and void. If all or any portion of this restricted
stock unit is vested during the 12 month period immediately prior to or after your termination of
employment, you will be considered a constructive trustee of any value or income received as a
result of such vesting and shall return such value or income promptly to the Company if you violate
any aspect of the following Restrictions. The remedies set forth herein are not exclusive, but are
in addition to any other remedies which may be available to the Company. These restrictions do not
affect and are not affected by any other similar restriction that may apply or may in the future
apply to you pursuant to any other plan, agreement or other arrangement.

A. Restrictions on Competitive Employment. During the Restricted Period (i.e., your employment,
and a period of twelve (12) months following the termination of your employment), you will not (as
an individual, principal, agent, employee, consultant, or otherwise), directly or indirectly in any
territory in which the Company and/or any of its affiliates does business and/or markets its
products and services, engage in activities competitive with, nor render services to any firm or
business engaged or about to become engaged in the Business of the Company. The Business of the
Company includes, but is not limited to, the following businesses: (i) the third party prescription
drug claims processing business; (ii) the design, development or marketing of or consulting as to,
prescription drug benefit plans; (iii) the provision of mail service pharmacy (including all those
products and services that are presently or hereafter marketed by the Company, or that are in the
development stage at the time of termination of your employment and are actually marketed by the
Company and/or its affiliates thereafter); (iv) the reporting and/or sale of medical or
prescription drug utilization data; (v) the pharmacy benefit management business, whether conducted
through mail service, retail pharmacy networks, or by means of the internet or other types of
electronic transmission; (vi) the organization and administration of retail pharmacy networks;
(vii) the disease management business (e.g., population-based programs intended to identify those
at risk and appropriate interventions, and measure outcomes); (viii) specialty pharmacy, which
shall include, without limitation, the following: (a) pharmacy services or products for consumers
with acute or chronic conditions that, generally, require injection or other non-oral methods of
administration including, without limitation, drugs for transplants, that are provided at the
consumer’s home or other alternate setting including, without limitation, a physician’s office; (b)
programs for therapeutics that are time or temperature sensitive or need to be formulated or
monitored carefully and are not generally dispensed through a retail or home delivery pharmacy; or
(c) physician-administered prescription drugs including, without limitation, those drugs covered
under a medical benefit; or (ix) any other business in which the Company and/or any of its
affiliates is engaged at the time your employment terminates (hereinafter collectively, the
“Business of the Company”). In addition, during the Restricted Period, you will not have an equity
interest in any such firm or business other than as a 1% or less shareholder of a public
corporation. The Restricted Period shall be extended by any period during which you are in
violation of sections A or B of this paragraph IV.

B. Restrictions Against Solicitation and Inducement. During the Restricted Period you will not,
directly or indirectly: (i) solicit or contact any Customer or Targeted Potential Customer of the
Company and/or its affiliates upon whom you called or whom you solicited or with whom you became
acquainted after commencement of your employment; (ii) induce or attempt to induce any employees,
agents or other consultants of the Company and/or its affiliates to do anything from which you are
restricted by reason of this Agreement; (iii) offer or aid others to offer employment to any
employees, agents, or consultants of the Company and/or its affiliates; or (iv) provide services to
any Customer or otherwise interfere with or disrupt any contractual or potential contractual
relationship between any Customer and the Company and/or its affiliates.

C. Covenant Against Use and Disclosure. You recognize that in connection with your employment, you
may learn of, and/or it may be desirable or necessary for the Company to disclose to you
confidential information (“Confidential Information”). You understand that Confidential Information
is valuable and proprietary to the Company (or to third parties that have entrusted the
Confidential Information to the Company). You agree that, except as required by your employment
with the Company, you will not during your employment or at any time thereafter, directly or
indirectly, use, publish, communicate, describe, disseminate, or otherwise disclose Confidential
Information to any person or entity without the express prior written consent of the Company, nor
will you engage in any activities that would require that you use, disclose or rely upon
Confidential Information, including, but not limited to, activities involving negotiation or
preparation for negotiation between pharmacy benefit management companies and either their
Customers or pharmaceutical manufacturers. The term Confidential Information shall include, but
shall not be limited to: (a) Customer lists, lists of Targeted Potential Customers (i.e., any
person or entity the Company has solicited or taken steps in preparation for solicitation within 12
months before the termination of your employment) and details of agreements with Customers; (b)
acquisition, expansion, marketing, financial and other business information and plans of the
Company; (c) research and development; (d) data concerning usage of prescription drugs and any
other data compiled by the Company; (e) computer programs; (f) sources of supply; (g) identity of
specialized consultants and contractors and Confidential Information developed by them for the
Company; (h) purchasing, operating and other cost data; (i) special Customer needs, cost and
pricing data; (j) employee information (including, but not limited to, personnel, payroll,
compensation and benefit data and plans); and (k) patient records and data. Confidential
Information shall include all such information recorded in manuals, memoranda, projections,
minutes, plans, drawings, designs, formula books, specifications, computer programs and records,
whether or not legended or otherwise identified by the Company as Confidential Information, as well
as such information that is the subject of meetings and discussions and not recorded. Confidential
Information shall not include such information that is generally available to the public (other
than as a result of a disclosure by you or others in violation of law or agreement). “Customers”
as used herein shall mean any entity to which the Company provides services, and any person or
entity which represents the recipients of those services in the sales process.

This grant is subject to the provisions of the Company’s 2002 Stock Incentive Plan and the Rules
and Regulations thereunder established by the Company’s Board of Directors or its Compensation
Committee (except where the terms set forth herein conflict with the Rules and Regulations, in which case these terms shall control). By accepting this Award,
the grantee specifically acknowledges that he/she may become subject to certain share ownership
guidelines developed by the Board of Directors that may restrict the grantee’s ability to sell
shares acquired under the Plan and the grantee agrees to comply with such requirements as they may
be in effect from time to time. The grantee specifically acknowledges that such guidelines may
apply to previously granted Incentives.

Page 2 of 2EX-10.23

 

Exhibit 10.23

2008 TERMS AND CONDITIONS

FOR A NON-QUALIFIED STOCK OPTION GRANT (NQSO)

UNDER THE MEDCO HEALTH SOLUTIONS, INC. 2002 STOCK INCENTIVE PLAN

This is a summary of the terms applicable to the stock option specified on this document.
Different terms may apply to any other grant under the Medco Health Solutions, Inc. 2002 Stock
Incentive Plan.

	 	 	 
	Grant Type:

	 	Nonqualified Stock Option (NQ)
	Grant Code:

	 	ANNL
	Option Price:

	 	TBD (closing price on grant date)
	Grant Date:

	 	February 22, 2008
	Expiration Date:

	 	February 21, 2018
	 
	 	 
	Vesting Date

	 	Portion that Vests
	February 22, 2009

	 	First 33.333%
	February 22, 2010

	 	Second 33.333%
	February 22, 2011

	 	Balance

I. GENERAL INFORMATION

This stock option becomes exercisable in equal installments (subject to rounding process) on the
Vesting Dates indicated in the accompanying box. This stock option expires on its Expiration Date,
which is the day before the tenth anniversary of the Grant Date. If your employment with Medco
Health Solutions, Inc. (Company) ends for any reason, your right to exercise this stock option will
be determined according to the terms in Section II.

II. TERMINATION OF EMPLOYMENT

A. General Rule. If your employment is terminated for any reason, the portion of this stock option
that is unvested will expire on the date your employment ends. Except as specified in paragraphs B
— F below, the portion of this stock option that is vested will expire 90 days after the date your
employment ends, but in no event later than the original Expiration Date.

B. Retirement. If you retire from service with the Company (defined as 60 years of age with 15
years of service), the portion of this stock option that is vested will expire the day before the
second anniversary of your termination of employment due to retirement, but in no event later than
its original Expiration Date.

C. Disability. If your employment terminates as a result of your Disability, the portion of this
stock option that is unvested shall vest as scheduled on the applicable Vesting Date. Whether
already vested on the date of your termination or vested as a result of your termination, the
portion of this stock option that is vested will expire the day before the second anniversary of
your termination, but in no event later than its original Expiration Date.

D. Death. If you die, the portion of this stock option that is unvested shall vest as of your date
of death. Whether already vested on the date of your death or vested as a result of your death,
the portion of this stock option that is vested will expire the day before the second anniversary
of your death, but in no event later than its original Expiration Date.

E. Separation. If your employment is terminated by the Company and the Company determines that
such termination resulted from the elimination of your job, you will be considered “separated” and
will be offered an agreement containing a general release of claims in a form acceptable to the
Company. If the agreement becomes effective, the following will apply: the portion of this stock
option that is unvested and that would vest on the Vesting Date immediately following your
Separation (the “Next Installment”) shall vest as of your Separation. Whether already vested on the
date of your termination or vested as a result of your termination, the portion of this stock
option that is vested will expire the day before the six month anniversary of the date your
employment with the Company ends, but in no event later than the original Expiration Date. If the
agreement does not become effective, then you will be treated as terminated under paragraph A,
above.

F. Misconduct. If your employment is terminated as a result of your deliberate, willful or gross
misconduct, this stock option (whether vested or unvested) will expire immediately upon your
receipt of notice of such termination.

G. Change in Control. If your employment is terminated by the Company Within Two Years of a Change
in Control (as those terms are defined in the Plan), for any reason other than resignation or one
of the reasons specified in paragraphs B-F above, this stock option, if unvested, will vest on the
date of your termination. Whether already vested on the date of your termination or vested as a
result of your termination, this stock option will expire on the Expiration Date.

III. ADJUSTMENTS

In the event of a reorganization, recapitalization, stock split, stock dividend, combination of
shares, merger, consolidation, rights offering, spin off, split off, split up or other event
identified by the Board of Directors, the Board shall make such proportional adjustments as are
necessary to preserve the benefits or potential benefits of the grant. Any such determination
shall be final, binding and conclusive on all parties.

IV. RESTRICTIONS

If you violate any of the following Restrictions/Covenants, this stock option, if unexercised, will
terminate immediately and be null and void. If all or any portion of this stock option is exercised
during the 12 month period immediately prior to or after your termination of employment, you

Page 1 of 2

 

will be considered a constructive trustee of any value or income received as a result of such
exercise and shall return such value or income promptly to the Company if you violate any aspect of
the following Restrictions. The remedies set forth herein are not exclusive, but are in addition
to any other remedies which may be available to the Company, including injunctive relief. These
restrictions do not affect and are not

affected by any other similar restriction that may apply or may in the future apply to you pursuant
to any other plan, agreement or other arrangement.

A. Restrictions on Competitive Employment. During the Restricted Period (i.e., your employment,
and a period of twelve (12) months following the termination of your employment), you will not (as
an individual, principal, agent, employee, consultant, or otherwise), directly or indirectly in any
territory in which the Company and/or any of its affiliates does business and/or markets its
products and services, engage in activities competitive with, nor render services to any firm or
business engaged or about to become engaged in the Business of the Company. The Business of the
Company includes, but is not limited to, the following businesses: (i) the third party prescription
drug claims processing business; (ii) the design, development or marketing of or consulting as to,
prescription drug benefit plans; (iii) the provision of mail service pharmacy (including all those
products and services that are presently or hereafter marketed by the Company, or that are in the
development stage at the time of termination of your employment and are actually marketed by the
Company and/or its affiliates thereafter); (iv) the reporting and/or sale of medical or
prescription drug utilization data; (v) the pharmacy benefit management business, whether conducted
through mail service, retail pharmacy networks, or by means of the internet or other types of
electronic transmission; (vi) the organization and administration of retail pharmacy networks;
(vii) the disease management business (e.g., population-based programs intended to identify those
at risk and appropriate interventions, and measure outcomes); (viii) specialty pharmacy, which
shall include, without limitation, the following: (a) pharmacy services or products for consumers
with acute or chronic conditions that, generally, require injection or other non-oral methods of
administration including, without limitation, drugs for transplants, that are provided at the
consumer’s home or other alternate setting including, without limitation, a physician’s office; (b)
programs for therapeutics that are time or temperature sensitive or need to be formulated or
monitored carefully and are not generally dispensed through a retail or home delivery pharmacy; or
(c) physician-administered prescription drugs including, without limitation, those drugs covered
under a medical benefit; or (ix) any other business in which the Company and/or any of its
affiliates is engaged at the time your employment terminates (hereinafter collectively, the
“Business of the Company”). In addition, during the Restricted Period, you will not have an equity
interest in any such firm or business other than as a 1% or less shareholder of a public
corporation. The Restricted Period shall be extended by any period during which you are in
violation of sections A or B of this paragraph IV.

B. Restrictions Against Solicitation and Inducement. During the Restricted Period you will not,
directly or indirectly: (i) solicit or contact any Customer or Targeted Potential Customer of the
Company and/or its affiliates upon whom you called or whom you solicited or with whom you became
acquainted after commencement of your employment; (ii) induce or attempt to induce any employees,
agents or other consultants of the Company and/or its affiliates to do anything from which you are
restricted by reason of this Agreement; (iii) offer or aid others to offer employment to any
employees, agents, or consultants of the Company and/or its affiliates; or (iv) provide services to
any Customer or otherwise interfere with or disrupt any contractual or potential contractual
relationship between any Customer and the Company and/or its affiliates.

C. Covenant Against Use and Disclosure. You recognize that in connection with your employment, you
may learn of, and/or it may be desirable or necessary for the Company to disclose to you
confidential information (“Confidential Information”). You understand that Confidential Information
is valuable and proprietary to the Company (or to third parties that have entrusted the
Confidential Information to the Company). You agree that, except as required by your employment
with the Company, you will not during your employment or at any time thereafter, directly or
indirectly, use, publish, communicate, describe, disseminate, or otherwise disclose Confidential
Information to any person or entity without the express prior written consent of the Company, nor
will you engage in any activities that would require that you use, disclose or rely upon
Confidential Information, including, but not limited to, activities involving negotiation or
preparation for negotiation between pharmacy benefit management companies and either their
Customers or pharmaceutical manufacturers. The term Confidential Information shall include, but
shall not be limited to: (a) Customer lists, lists of Targeted Potential Customers (i.e., any
person or entity the Company has solicited or taken steps in preparation for solicitation within 12
months before the termination of your employment) and details of agreements with Customers; (b)
acquisition, expansion, marketing, financial and other business information and plans of the
Company; (c) research and development; (d) data concerning usage of prescription drugs and any
other data compiled by the Company; (e) computer programs; (f) sources of supply; (g) identity of
specialized consultants and contractors and Confidential Information developed by them for the
Company; (h) purchasing, operating and other cost data; (i) special Customer needs, cost and
pricing data; (j) employee information (including, but not limited to, personnel, payroll,
compensation and benefit data and plans); and (k) patient records and data. Confidential
Information shall include all such information recorded in manuals, memoranda, projections,
minutes, plans, drawings, designs, formula books, specifications, computer programs and records,
whether or not legended or otherwise identified by the Company as Confidential Information, as well
as such information that is the subject of meetings and discussions and not recorded. Confidential
Information shall not include such information that is generally available to the public (other
than as a result of a disclosure by you or others in violation of law or agreement). “Customers”
as used herein shall mean any entity to which the Company provides services, and any person or
entity which represents the recipients of those services in the sales process.

This stock option is subject to the provisions of the 2002 Stock Incentive Plan and the Rules and
Regulations thereunder established by the Board of Directors of Medco Health Solutions, Inc. or its
Compensation Committee as in effect on the Grant Date. By accepting this Award, the grantee
specifically acknowledges that he/she may become subject to certain share ownership guidelines
developed by the Board of Directors that may restrict the grantee’s ability to sell shares acquired
under the Plan and the grantee agrees to comply with such requirements as they may be in effect
from time to time. The grantee specifically acknowledges that such guidelines may apply to
previously granted Incentives.

Page 2 of 2

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