Document:

OCR Ex 10.38 2012

EXHIBIT 10.38

OMNICARE, INC. EXECUTIVE SEVERANCE PLAN 

This Executive Severance Plan is effective as of January 1, 2013.  

OBJECTIVE

Omnicare, Inc. (the “Company”) has adopted the Omnicare, Inc. Executive Severance Plan (the “Plan”) to provide key executives with the financial security to allow them to focus on the growth of the Company’s business.  Executives must make important decisions that affect the livelihood of many associates and the overall performance of the Company. In order to free these executives to make decisions in a thoughtful and strategic manner regardless of the personal consequences, the Company has provided them with this additional level of security.  The Company further believes that the Plan will aid the Company in attracting and retaining highly qualified executives who are essential to its success.
PLAN OPERATION
Any decisions or determinations required to be made under the Plan shall be made by the Compensation Committee of the Company’s Board of Directors (the “Committee”) or one or more executives of the Company to which authority is delegated by the Committee.   The decisions and determinations of the Committee (and any executive to whom authority has been delegated) relating to the Plan are final and binding on all persons.  

PARTICIPATION

Participation in the Plan is limited to executives of the Company and its subsidiaries at the vice-president level or above as selected by the Committee (upon recommendation of the Company’s Chief Executive Officer) or as selected by the Company’s Chief Executive Officer if such authority is so delegated by the Committee.  Notwithstanding anything contained herein, employees of the Company and its subsidiaries are not eligible to participate in the Plan and are excluded from coverage under the Plan if they are a party to an individual arrangement or a written employment agreement or other severance payment policy or arrangement with the Company or any of its subsidiaries containing a severance provision unless the Participant waives any rights to such severance 

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provisions in a manner deemed appropriate by the Committee.   

ELIGIBILITY FOR PAYMENTS

In order to be eligible for payments under this plan, a Participant must:

		
	(a)
	Sign an Acknowledgement Form attached to this Plan as Exhibit A (an “Acknowledgement Form”);

		
	(b)
	Have a Qualifying Termination (as defined below);

		
	(c)
	Be in an active status with the Company at the time of separation, or be returning to work on a timely basis following an approved leave of absence or disability leave;

		
	(d)
	Execute a full release of claims and covenant not to sue in a form determined by the Company in its sole discretion (the “Release”) that is executed and non-revocable prior to the date that is 60 days following the date of a Participant’s termination of employment (the “Release Date”); and

		
	(e)
	Return all Company property and materials and provide any requests for expense reimbursement prior to the beginning of payments under this plan and resolve any outstanding financial obligations owed to the Company in each case prior to the Release Date.

For purposes of this Plan, a “Qualifying Termination” shall be defined as:
A termination of employment by the Company or any of its subsidiaries other than for Cause (as defined below) provided that such termination is not excluded below.
Notwithstanding any provision of the Plan to the contrary, the following events shall not constitute a “Qualifying Termination” for purposes of the Plan:
		
	(a)
	A termination by the Company or any of its subsidiaries for Cause;

		
	(b)
	A voluntary termination;

		
	(c)
	Mandatory retirement in accordance with Company policy;

		
	(d)
	Termination on account of death or Disability (as defined below);

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	(e)
	Refusing, rejecting or declining to accept a transfer to a position with the Company or its subsidiaries (for which a Participant is qualified as determined by the Company by reason of knowledge, training, and experience);

		
	(f)
	The sale of all or part of the business assets of the Company, any of its subsidiaries or the division or business unit that employs the Participant if the Participant is offered comparable employment by the acquirer of such assets; or

		
	(g)
	Upon the formation of a joint venture or other business entity in which the Company or a subsidiary will directly or indirectly own some outstanding voting or other ownership interest if a Participant is offered comparable employment by the joint venture entity or other business entity.

SEVERANCE BENEFITS
Under the Plan, in the event a Participant is terminated in a Qualifying Termination as described above, he or she will be eligible for the following benefits:
		
	(a)
	Payment of any earned, but unpaid, base salary in accordance with the Company’s payroll policy and any earned but unused vacation time as of the date of termination in accordance with Company policy (the “Accrued Obligations”); and

		
	(b)
	Twelve (12) months of the Participant’s then-current base salary (the “Severance”); and

		
	(c)
	To the extent permitted by applicable law and provided the Company is able to provide such benefits without the imposition on the Company of any tax or penalty, if the Participant timely elects and pays for continuation coverage under the Company’s group health plan in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), continued payment by the Company of its portion (as in effect from time to time for active employees of the Company) of the premium for such coverage for the Participant and his or her eligible dependents for twelve (12) months; provided, however, that (i) if the Company determines that it cannot continue such payments without penalties or adverse tax consequences to the Company, the Company shall pay directly to the Participant a lump-sum cash amount equal to the then-unpaid amount of the Company’s portion of the premium for such coverage, provided that such cash payment does not result in any such penalties or adverse tax consequences and (ii) in the event the Participant obtains other employment that offers substantially similar or more favorable benefits, taken as a whole, such premium payments by the Company or other rights under this paragraph (c) shall immediately cease.  

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The Severance shall be paid in accordance with the normal payroll practices of the Company, provided that no payment will be made until after the Release Date.   In the event that the Release is executed and non-revocable prior to the Release Date, any Severance that would have been payable prior to the Release Date in accordance with normal payroll practices will be accumulated and paid in a lump sum on the first payroll date following the Release Date.  Notwithstanding the foregoing, in the event that a Qualifying Termination occurs within the twenty-four (24) month period following a Change in Control (as defined below), the Severance will be paid in a lump-sum on the Release Date provided the Release is executed and non-revocable prior to the Release Date.  In the event that the Release is not executed and non-revocable prior to the Release Date, the Severance and all other benefits under the Plan will be forfeited (other than the Accrued Obligations or any other provision required by law).  Payment of the Severance may also be subject to the provisions of Section 409A of the Internal Revenue Code of 1986, as amended (“Code Section 409A”) discussed below. 
Any rights a Participant may have with respect to pension benefits, long-term performance awards, stock options, restricted stock and restricted stock units, deferred compensation, bonus payments or other employee or fringe benefits will be determined in accordance with the applicable Company plans, programs and/or policies.
If a Participant is rehired by the Company or any of its subsidiaries, any unpaid Severance will be forfeited.  If a Participant is a terminated employee who is subsequently reinstated to employee status back to the date he or she was terminated (including reinstatement as the result of an appeal of a claim for disability benefits), any Severance payment made to a Participant must be repaid to the Company. 

RESTRICTIVE COVENANTS
Any agreement that a Participant has entered into with the Company or a subsidiary that provides for nondisclosure of information, noncompetition with the Company or its subsidiaries and non-solicitation of the Company’s and its subsidiaries’ current or prospective clients, customers or employees (each, a “Restrictive Covenant Agreement”) shall remain in full force and effect following a Qualifying Termination, and Participant agrees to abide by the terms of any such agreement. The Company reserves all rights to enforce the provisions of any Restrictive Covenant Agreement. In the event that a Participant breaches any Restrictive Covenant Agreement, any unpaid Severance and all other benefits under the Plan will be forfeited (other than the Accrued Obligations or any other provision required by law).  
MISCELLANEOUS
		
	(a)
	If anything in this Plan conflicts with the Company’s employee handbook or any other Company policy, the terms of this Plan shall control unless otherwise 

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specified in this Plan. If anything in this Plan conflicts with applicable law, applicable law shall control.
		
	(b)
	If a Participant’s separation is covered by the provisions of the Workers Adjustment and Retraining Notification Act (WARN), any payments made to the Participant under provisions of that act will offset the Severance calculated under the Plan.

		
	(c)
	 The Plan does not constitute a contract of employment. Nothing in this plan is to be construed as providing the Participant with a right to continued employment. A Participant's employment with the Company continues to be “at will” subject to the benefits provided herein upon a Qualifying Termination. 

		
	(d)
	The Company shall withhold from any amounts payable under the Plan all federal, state, local or other taxes that are legally required to be withheld. 

		
	(e)
	Except as specifically provided for in this Plan, neither the provisions of this Plan nor the Severance and benefits provided for hereunder shall reduce any amounts otherwise payable to a Participant under any incentive, retirement, stock option, stock bonus, stock ownership, group insurance or other benefit plan. 

		
	(f)
	The invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision of the Plan, which shall remain in full force and effect, and any prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

		
	(g)
	The Severance and other benefits under the Plan shall constitute unfunded obligations of the Company.  The Severance payments shall be made, as due, from the general funds of the Company.  The Plan shall constitute solely an unsecured promise by the Company to provide such benefits to a Participant to the extent provided herein. For avoidance of doubt, any health benefits to which a Participant may be entitled under the Plan shall be provided under other applicable employee benefit plans of the Company. 

		
	(h)
	In addition to any compensation recovery (claw back) which may be required under any agreement between the Company and the Participant, law or regulation (including but not limited to any claw back required by Section 954 of the Dodd-Frank Act), Participant acknowledges and agrees that any compensation paid under this Plan is deemed to be subject to any claw back requirements as set forth in the Company’s corporate governance guidelines or policies and to any similar successor provisions as may be in effect from time to time, including by reason of guidelines or policies adopted following the date of the Participant’s Qualifying Termination.

		
	(i)
	By signing the Acknowledgement Form, the Participant agrees not to commence any action or suit related to Participant’s employment by the Company or any arbitration related to this Plan: (i) more than six months after the termination of 

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Participant's employment, if the action, suit or arbitration is related to the termination of Participant’s employment, or (ii) more than six months after the event or occurrence on which participant’s claim is based, if the action, suit, or arbitration is based on an event or occurrence other than the termination of participant’s employment.  Participant agrees to waive any statute of limitations that is contrary to this section.
		
	(j)
	A Participant and Company shall submit to mandatory, final and binding arbitration any controversy or claim arising out of, or relating to, this Plan or any breach hereof. Such arbitration shall be conducted in Cincinnati, Ohio, or such other location as the parties mutually agree, in accordance with the employment rules of the American Arbitration Association in effect at the time such arbitration is conducted. Judgment upon the determination or award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  Nothing in this section shall affect or limit in any way the Company’s right to resort to a court for injunctive, equitable, or other relief for breach or threatened breach of Participant’s obligation to Company or otherwise relating to enforcement of any Restrictive Covenant Agreement or otherwise related to unfair competition or restrictive covenants. 

		
	(k)
	This Plan shall be governed by and construed in accordance with the substantive laws of the State of Ohio, without regard to the conflicts of law principles thereof. Participant is deemed to agree (i) that any suit, proceeding or action at law or in equity (each, an “Action") arising out of or relating to this Plan must be instituted in state or federal court located within Hamilton County, Ohio, (ii) to waive any objection which he or she may have now or hereafter to the laying of the venue of any such Action, (iii) to irrevocably submit to the jurisdiction of any such Action, and (iv) to hereby waive any claims or defenses of inconvenient forum. Company and the Participant irrevocably agrees that service of any and all process which may be served in any such Action may be served upon Participant or Company by registered mail and that such service shall be deemed effective service of process upon the Participant and Company in any such Action. The Participant and Company irrevocably agree that such service of process shall have the same force and validity as if service were made to Participant or Company according to the law governing such service in the State of Ohio, and waive all claims of error by reason of any such service.

		
	(l)
	All Participants in this Plan are required to be in compliance with the Company’s Anti-Kickback Statute Policies & Procedures (CPL-CIA-006) and should review the Company’s Anti-Kickback Statute Policies & Procedures before agreeing to this Plan. Any Plan Participant who is found to be in violation of the Company’s Anti-Kickback Statute Policies and Procedures as determined by the Company in its sole discretion will be deemed ineligible for the payments described in this Plan (other than the Accrued Obligations or other provision required by law) without limitation of any other right or remedies that the Company might have or any other obligations Participant may have to the Company or any other person or entity.   Additionally, Participant agrees to return to the Company within five (5) days of the Company’s written request any previously paid payments made 

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pursuant to this Plan if the Company determines that Participant has violated the Company's Anti-Kickback Statute Policies & Procedures.      
		
	(m)
	A Participant may not assign or otherwise transfer Participant’s rights, obligations, or duties contained in this Plan. The Company retains the right without further notice or consent to assign its rights and obligations under the Plan to any successor in interest or purchaser of substantially all of the Company’s assets. In the event of such an assignment, the benefits and burdens of this Plan shall inure to the benefit of and is binding upon the successor or assignee of the Company.

		
	(n)
	Any notice to be provided under this Plan may be given in writing or electronically through the Company’s electronic communications systems.

		
	(o)
	By signing the Acknowledgement Form, the Participant accepts all Rules, Restrictions, Terms and Conditions of the Plan.

SECTION 409A
		
	(a)
	To the fullest extent possible, amounts and other benefits payable under the Plan are intended to be comply with or be exempt from Code Section 409A, and the Company shall have complete discretion to interpret and construe this Agreement and any associated documents in any manner that establishes an exemption from (or compliance with) the requirements of Code Section 409A.  Any terms of this Plan that are undefined or ambiguous shall be interpreted by the Company in its discretion in a manner that complies with Code Section 409A to the extent necessary to comply with Code Section 409A.  If for any reason, such as imprecision in drafting, any provision of this Plan does not accurately reflect its intended establishment of an exemption from (or compliance with) Code Section 409A, as demonstrated by consistent interpretations or other evidence of intent, such provision shall be considered ambiguous as to its exemption from (or compliance with) Code Section 409A and shall be interpreted by the Company in a manner consistent with such intent, as determined in the discretion of the Company.  If, notwithstanding the foregoing provisions of this paragraph, any provision of this Plan would cause a Participant to incur any additional tax or interest under Code Section 409A, the Company shall interpret or reform such provision in a manner intended to avoid the incurrence by the Participant of any such additional tax or interest; provided that the Company agrees to maintain, to the maximum extent practicable, the original intent and economic benefit to the Participant of the applicable provision without violating the provisions of Code Section 409A. 

		
	(b)
	A termination of employment shall not be deemed to have occurred for purposes of any provision of this Plan providing for the payment of any amounts or benefits that the Company determines may be considered nonqualified deferred compensation under Code Section 409A upon or following a termination of 

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employment unless such termination is also a “separation from service” within the meaning of Code Section 409A, and, for purposes of any such provision of this Plan, references to a “termination,” “termination of employment” or like terms shall mean such a separation from service.  The determination of whether and when a separation from service has occurred for purposes of this Plan shall be made in accordance with the presumptions set forth in Section 1.409A-1(h) of the Treasury Regulations.

		
	(c)
	Any provision of this Plan to the contrary notwithstanding, if at the time of a Participant’s separation from service, the Company determines that the Participant is a “specified employee,” within the meaning of Code Section 409A, based on an identification date of December 31, then to the extent any payment or benefit that the Participant becomes entitled to under this Plan on account of such separation from service would be considered nonqualified deferred compensation under Code Section 409A, such payment or benefit shall be paid or provided at the date which is the earlier of (i) six (6) months and one day after such separation from service, and (ii) the date of the Participant’s death (the “Delay Period”).  Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this paragraph shall be paid or provided to the Participant in a lump-sum and any remaining payments and benefits due under this Plan shall be paid or provided in accordance with the normal payment dates specified for them herein.

		
	(d)
	Any reimbursements and in-kind benefits provided under this Plan that constitute deferred compensation within the meaning of Code Section 409A shall be made or provided in accordance with the requirements of Code Section 409A, including, without limitation, that (i) in no event shall any fees, expenses or other amounts eligible to be reimbursed by the Company under this Plan be paid later than the last day of the calendar year next following the calendar year in which the applicable fees, expenses or other amounts were incurred; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits that the Company is obligated to pay or provide, in any given calendar year shall not affect the expenses that the Company is obligated to reimburse, or the in-kind benefits that the Company is obligated to pay or provide, in any other calendar year, provided that the foregoing clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Code Section 105(b) solely because such expenses are subject to a limit related to the period the arrangement is in effect; (iii) the Participant’s right to have the Company pay or provide such reimbursements and in-kind benefits may not be liquidated or exchanged for any other benefit; and (iv) in no event shall the Company’s obligations to make such reimbursements or to provide such in-kind benefits apply later than the Participant’s remaining lifetime (or if longer, through the sixth (6th) anniversary of the commencement date of such obligations).

		
	(e)
	For purposes of Code Section 409A, the Participant’s right to receive the Severance payments shall be treated as a right to receive a series of separate and distinct payments.  Whenever a payment under this Plan specifies a payment period with reference to a number of days (for example, “payment shall be made 

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within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.  In no event may the Participant, directly or indirectly, designate the calendar year of any payment to be made under this Plan, to the extent such payment is subject to Code Section 409A.

		
	(f)
	The Company makes no representation or warranty and shall have no liability to the Participant or any other person if any provisions of this Plan are determined to constitute deferred compensation subject to Code Section 409A but do not satisfy an exemption from, or the conditions of, Code Section 409A.

AMENDMENT AND TERMINATION OF PLAN

The Company reserves the right to modify or terminate this Plan with respect to one or more Participants (or all Participants) at its sole discretion at any time. However, any such modification or termination will not impact Participants who have already been terminated under the Plan as of the date of the modification or termination.  In addition, any Participant impacted by any such modification or termination will be notified by the Company thirty (30) days prior to implementation of such modification or termination. Following a Change in Control (as defined below), the Plan may not be terminated or adversely amended with respect to anyone who is a Participant on the date of the Change in Control without the consent of such Participant.

DEFINITIONS

For purposes of this Plan, the following definitions will be used:

		
	1.
	"Participant” means any employee of the Company who is at least at the vice-president level who has been selected to participate in this plan by the Company and who executes an Acknowledgement Form.

2."Cause” will mean any of the following 

		
	a.
	Conduct which is materially detrimental to the Company's reputation, goodwill or business operations;

		
	b.
	Gross or habitual neglect of Participant’s duties or obligations or breach of such duties , or misconduct in discharging such duties;

		
	c.
	Participant’s failure to substantially perform his or her duties to the Company or the repeated absence from his or her duties without the consent of the Chief Executive Officer of the Company;

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	d.
	Participant's failure or refusal to comply with the policies, standards and regulations of the Company or to follow the directions of the Chief Executive Officer of the Company in complying with those policies, standards and regulations;

		
	e.
	Breach or threatened breach of the restrictive covenants Participant owes to the Company;

		
	f.
	Fraud or willful or intentional misrepresentation in connection with the Participant’s performance of his or her duties;

		
	g.
	Conviction of Employee for, or entry of plea of guilty or nolo contender by Employee with respect to, any criminal act.

In no event shall a Participant be considered to have been terminated for “Cause” unless the Company delivers a written notice of termination to the Participant identifying in reasonable detail the acts or omissions constituting “Cause” and the provision of this Plan relied upon.  In the case where such acts or omissions are not capable of cure, the Participant’s termination will take effect upon his or her receipt of such notice.  In the case where such acts or omissions are capable of cure, the Participant’s termination will take effect fifteen (15) days following his or her receipt of such notice if such acts or omissions are not cured by the Participant by such date, provided the Company may suspend the Participant’s employment or place him or her on leave of absence pending such cure. 

		
	3.
	 “Change in Control” shall mean a “Change in Control” under the Company’s 2004 Stock & Incentive Plan or any successor thereto as in effect on the date of the Change in Control, provided such “Change in Control” constitutes a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company, within the meaning of Code Section 409A.

		
	4.
	“Disability" will mean the Participant is unable to perform his or her duties to the Company or its subsidiaries by reason of illness or other physical or mental disability, and such physical or mental disability has continued for 90 days or would be reasonably expected to continue for at least 90 days.

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EXHIBIT A

PARTICIPANT ACKNOWLEDGEMENT AND ACCEPTANCE OF THE RULES, RESTRICTIONS, TERMS AND CONDITIONS OF THE OMNICARE, INC. EXECUTIVE SEVERANCE PLAN

I acknowledge that I have received this official plan document for the Omnicare, Inc. Executive Severance Plan (the “Plan”), and confirm that I have read and understand the terms of the Plan. Furthermore, I agree that any severance compensation I may be due will be paid under the rules, restrictions, terms and conditions as stated above.  I also acknowledge that (i) I am still bound by Restrictive Covenant Agreements (as defined in the Plan) previously entered in between myself and Omnicare, Inc. or one of its subsidiaries or (ii) I have concurrently herewith entered into a restrictive covenant agreement in a form approved by the Company.     
Name (print)
Signature of Recipient
Date
 

11OCR Ex 10.39 2012

EXHIBIT 10.39

The Omnicare, Inc.  
Non-Qualified Deferred Compensation Plan

Omnicare Non-Qualified Deferred Compensation Plan    

DEFERRED COMPENSATION PLAN 
FOR 
OMNICARE, INC.
Omnicare, Inc., a Delaware corporation (the “Company”),  hereby establishes this Deferred Compensation Plan (the “Plan”), effective January 1, 2013 (the “Effective Date”), for the purpose of attracting and retaining high quality executives, and motivating them to strive for  increased efficiency in and the successful operation of the Company.  The Plan is intended to, and shall be interpreted to; comply in all respects with Code Section 409A and those provisions of ERISA applicable to an unfunded plan maintained primarily to provide deferred compensation benefits for a select group of “management or highly compensated employees.”

ARTICLE I 
TITLE AND DEFINITIONS
1.1    “Account” or “Accounts” shall mean the bookkeeping account or accounts established under this Plan pursuant to Article 4.
1.2    “Base Salary” shall mean a Participant’s annual base salary, excluding incentive and discretionary bonuses, commissions, reimbursements and other non-regular remuneration, received from the Company prior to reduction for any salary deferrals under benefit plans sponsored by the Company, including but not limited to, plans established pursuant to Code Section 125 or qualified pursuant to Code Section 401(k).
1.3    “Beneficiary” or “Beneficiaries” shall mean the person, persons or entity designated as such pursuant to Section 7.1. 
1.4    “Benefit Commencement Date” shall be as defined in Section 3.4(a).
1.5    “Board” shall mean the Board of Directors of Company.
1.6    “Bonus(es)” shall mean amounts paid to the Participant by the Company annually in the form of discretionary or incentive compensation or any other bonus designated by the Committee before reductions for contributions to or deferrals under any pension, deferred compensation or benefit plans sponsored by the Company.  
1.7    “Bonus Deferral Contributions” shall have the meaning set forth in Section 3.1(a).
1.8    “Code” shall mean the Internal Revenue Code of 1986, as amended, as interpreted by Treasury regulations and applicable authorities promulgated thereunder.
1.9    “Code Section 409A” shall mean Section 409A of the Code.
1.10    “Committee” shall mean the Compensation Committee of the Board or other person or persons appointed by the Compensation Committee to administer the Plan in accordance with Article 8.

	
			
	 
	 
	 

Omnicare Non-Qualified Deferred Compensation Plan

1.11    “Company Contributions” shall be as defined in Section 4.2. 
1.12    “Company Contribution Account” shall be as defined in Section 4.2.
1.13    “Compensation” shall mean all amounts eligible for deferral for a particular Plan Year under Section 3.1(a).
1.14    “Crediting Rate” shall mean the notional gains and losses credited on the Participant’s Account balance which are based on the Participant’s choice among the investment alternatives made available by the Committee pursuant to Section 3.3 of the Plan.
1.15    “Deferral Contribution Account” shall mean the Account maintained for each Participant which is credited with Participant deferrals pursuant to Section 4.1
1.16    “Delay Period” shall have the meaning set forth in section 9.14(b) hereof.
1.17    “Discretionary Company Contributions” shall have the meaning set forth in Section 3.2 of the Plan.
1.18    “Disability” shall mean (consistent with the requirements of Section 409A) that the Participant (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company. The Committee may require that the Participant submit evidence of such qualification for disability benefits in order to determine that the Participant is disabled under this Plan.
1.19    “Distributable Amount” shall mean the vested balance in the applicable Account as determined under Article 4.
1.20    “Eligible Executive” shall mean a highly compensated or management level employee of the Company or its subsidiaries selected by the Committee to be eligible to participate in the Plan.
1.21    “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, including Department of Labor and Treasury regulations and applicable authorities promulgated thereunder.
1.22    “Financial Hardship” shall mean a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant’s spouse, or a dependent (as defined in IRC Section 152(a)) of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, (but shall in all events correspond to the meaning of the term “unforseeable emergency” under Code Section 409A(a)(2)(v)). 
1.23    “Fund” or “Funds” shall mean one or more of the investments selected by the Committee pursuant to Section 3.3 of the Plan.

	
			
	OCR NQDC 11-12
	 
	 

Omnicare Non-Qualified Deferred Compensation Plan

1.24    “Hardship Distribution” shall mean an accelerated distribution of benefits or a reduction or cessation of current deferrals pursuant to Section 6.5 to a Participant who has suffered a Financial Hardship.
1.25    “Matching Contribution” shall have the meaning set forth in Section 3.2 of the Plan.
1.26    “Participant” shall mean any Eligible Employee who becomes a Participant in this Plan in accordance with Article 2.
1.27    “Participant Election(s)” shall mean the forms or procedures by which a Participant makes elections with respect to (1) voluntary deferrals of his/her Compensation, (2) the investment Funds which shall act as the basis for crediting of funds on Account balances, and (3) the form and timing of distributions from Accounts.  Participant Elections may take the form of an electronic communication followed by appropriate confirmation according to specifications established by the Committee.
1.28    “Plan Year” shall mean the calendar year except that the first Plan Year shall begin on the Effective Date and end on the last day of the calendar year in which the Effective Date occurs.
1.29    “Qualified Plan” shall mean the Omnicare Savings & Investment Plan, as amended or such other Company sponsored qualified pension plan as may be designated by the Plan Administrator.
1.30    “Retirement” shall mean Separation from Service after having attained age fifty-nine and a half (59 1/2 ).
1.31    “Salary Deferral Contributions” shall have the meaning set forth in Section 3.1(a).
1.32    “Separation from Service” shall mean a “separation from service” within the meaning of Code Section 409A.  The determination of whether and when a Separation from Service has occurred for purposes of this Plan shall be made in accordance with the presumptions set forth in Section 1.409A-1(h) of the Treasury Regulations.
1.33    “Specified Year” shall have the meaning set forth in Section 3.4(a).
1.34    “Specified Employee” shall have the meaning set forth in section 9.14(b) hereof.
1.35    “Change In Control” shall be deemed to have occurred upon any of the following:
		
	a.
	any Person becomes a beneficial owner, directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company's then outstanding securities;

		
	b.
	the merger or consolidation of the Company with or into another entity (or other similar reorganization), whether or not the Company is the surviving corporation, in which the stockholders of the Company immediately prior to the effective date of such transaction own less than 50% of the voting power in the surviving entity;

	
			
	OCR NQDC 11-12
	 
	 

Omnicare Non-Qualified Deferred Compensation Plan

		
	c.
	the sale or other disposition of all or substantially all of the assets of the Company, or a complete liquidation or dissolution of the Company; or

		
	d.
	during any period of two consecutive years, individuals who at the beginning of such period constitute the Board cease for any reason to constitute at least a majority of such Board, unless the nomination for the election the Company's stockholders of each new director was approved by a vote of at least one-half of the persons who were directors at the beginning of the two-year period.

1.36    “Years of Service” shall mean the cumulative consecutive years of continuous full-time employment with the Company (including approved leaves of absence of six months or less or legally protected leaves of absence), beginning on the date the Participant first began service with the Company, and counting each anniversary thereof.
1.35    “Plan Administrator” shall mean the party selected by the Committee to administer the Plan as outlined in this document, and to uphold the obligations committed to in managing the ongoing maintenance, investments and/or distributions of the Plan as agreed in writing.

ARTICLE II     
PARTICIPATION
An Eligible Executive shall become a Participant in the Plan by completing and submitting to the Plan Administrator the appropriate Participant Elections, including such other documentation and information as the Committee may reasonably request, during the enrollment period established by the Committee prior to the beginning of the first Plan Year in which the Eligible Employee shall be eligible to participate in the Plan.

ARTICLE III     
CONTRIBUTIONS & DEFERRAL ELECTIONS
3.1    Elections to Defer Compensation.
		
	i.
	Form of Elections.  A Participant may only elect to defer Compensation attributable to services provided after the time an election is made (a “Deferral Contribution”).  Elections shall take the form of a flat dollar amount or a whole percentage (less applicable payroll withholding requirements for Social Security and income taxes and employee benefit plans as determined in the sole and absolute discretion of the Committee) of up to 

		
	1.
	50% of Base Salary (the “Salary Deferral Contributions”)

		
	2.
	100% of Bonuses (the “Bonus Deferral Contribution”)

		
	ii.
	Duration of Compensation Deferral Election.  An Eligible Employee must file a Participant Election to defer Compensation during the enrollment period established by the Committee prior to the Effective Date of the Participant’s commencement of 

	
			
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participation in the Plan in accordance with Code Section 409A and shall apply only to Compensation for services performed after such deferral election is processed.  A Participant must file a new Participant Election prior to the beginning of each subsequent Plan Year the Participant participates in the Plan during the enrollment period established by the Committee prior to the beginning of such Plan Year, which election shall be effective on the first day of the next following Plan Year.  After the beginning of the Plan Year, deferral elections with respect to Compensation for services performed during such Plan Year shall be irrevocable except in the event of Financial Hardship.
		
	(c)
	Any corrective distribution payments made to participants of the Qualified 401(k) Plan as the result of compliance with IRS regulations governing discrimination testing will be treated as ordinary income and may not be redirected to this Plan.

3.2    Company Contributions.
		
	i.
	Discretionary Company Contributions.  The Company shall have the discretion to make discretionary company contributions (“Discretionary Company Contributions”) to the Plan at any time on behalf of any Participant.  Discretionary Company Contributions shall be made in the complete and sole discretion of the Company and no Participant shall have the right to receive any Discretionary Company Contribution in any particular Plan Year regardless of whether Discretionary Company Contributions are made on behalf of other Participants.

		
	ii.
	Company Matching Contributions.  For any year in which a Participant makes elective deferral under the Qualified Plan, the Company shall make a matching contribution (a “Matching Contribution”) on behalf of the Participant for each Plan Year in which the Participant makes a deferral under this Plan which shall equal fifty percent (50%) of the total amount of the Deferral Contribution by the Participant under the Plan for such Plan Year up to a maximum of six percent (6%) of the Participant’s eligible Compensation for such Plan Year, minus any match made under the Qualified Plan in the same Plan Year.  That is, the maximum Company contribution (50% of 6% in a single year) will be determined using the Participant’s combined contributions to the Qualified Plan and this Plan for the Plan Year.  

3.3    Investment Elections.
		
	i.
	Participant Designation.  At the time of entering the Plan and/or of making the deferral election under the Plan, the Participant shall designate, on a Participant Election provided by the Committee or the Plan Administrator, the Funds in which the Participant’s Account or Accounts shall be deemed to be invested for purposes of determining the amount of earnings and losses to be credited to each Account.  The Participant may specify that all or any percentage of his or her Account or Accounts shall be deemed to be invested, in whole percentage increments, in one or more of the Funds selected as alternative investments under the Plan from time to time by the Committee pursuant to subsection (b) of this Section.  A Participant may change the designation made under this Section with the same frequency as allowed by the Qualified Plan by making a revised election, on a Participant Election Form provided by the Committee or the Plan Administrator.  

	
			
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	ii.
	Investment Funds.  Prior to the beginning of each Plan Year, the Committee, or its designee, may select, in its sole and absolute discretion, each of the types of commercially available investments communicated to the Participant pursuant to subsection (a) of this Section to be the Funds. The Participant’s choice among investments shall be solely for purposes of calculation of the Crediting Rate on Accounts.  The Company shall have no obligation to set aside or invest amounts as directed by the Participant and, if the Company elects to invest amounts as directed by the Participant, the Participant shall have no more right to such investments than any other unsecured general creditor.

3.4    Distribution Elections.
		
	i.
	Initial Election.  At the time of making a deferral election under Section 3.1 of the Plan, the Participant shall elect the time that distributions of Distributable Amounts will commence and the form such distributions will take in accordance with the following:

		
	a.
	Commencement of Distributions.  Each Participant can elect to receive his or her distributions commencing on either the Participant’s Retirement or in a specified year in the future (a “Specified Year”)(each, the “Benefit Commencement Date”).

		
	b.
	Form of Distributions.  Each Participant can elect to receive his or her distributions in a lump sum or equal annual installment payments over a period of two to ten years. 

A Participant may make different elections with respect to Distributable Amounts relating Salary Deferral Contributions, Bonus Deferral Contributions, and/or Company Contributions and may make different elections with respect to different portions of Distributable Amounts relating to any such contribution.  Distributable Amounts elected to be paid in a lump sum will be paid as soon as administratively feasible following the Benefit Commencement Date (or, in the case of Benefit Commencement Date in a Specified Year, in March of such year) subject to Section 9.14.  Distributable Amounts elected to be paid in annual installments shall be made in March of each year commencing in the first March following the applicable Benefit Commencement Date (or, in the case of Benefit Commencement Date in a Specified Year, in March of such year) subject to Section 9.14.  Notwithstanding anything to the contrary in this Section 3.4(a), a Participant’s Distributable Amounts are subject to earlier distributions in accordance with the provisions of Section 6.2, 6.3, 6.4 and 6.5 of the Plan.
		
	ii.
	Modification of Election.  A new distribution election may be made at the time of subsequent deferral elections with respect to deferrals in Plan Years beginning after the election is made.  However, a distribution election with respect to previously deferred amounts may only be changed under the terms and conditions specified in Code Section 409A.  Further, except as expressly provided in Sections 6.2, 6.3, 6.4 and 6.5, no acceleration of a distribution is permitted.  A subsequent election that delays payment or changes the form of payment shall be permitted if and only if all of the following requirements are met:

	
			
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	1.
	the new election does not take effect until at least twelve (12) months after the date on which the new election is made;

		
	2.
	in the case of payments made on account of Retirement or a Specified Year, the new election delays payment for at least five (5) years from the date that payment would otherwise have been made, absent the new election; and

		
	3.
	in the case of payments made according to a Specified Year, the new election is made not less than twelve (12) months before the date on which payment would have been made (or, in the case of installment payments, the first installment payment would have been made) absent the new election.

For purposes of application of the above change limitations, installment payments shall be treated as a single payment.  Election changes made pursuant to this Section shall be made in accordance with rules established by the Committee, and shall comply with all requirement of Code Section 409A and applicable authorities.

ARTICLE IV     
DEFERRAL ACCOUNTS
4.1    Deferral Contribution Accounts.  The Committee shall establish and maintain one account under the Plan with respect to each Participant’s Deferral Contributions (the “Deferral Contribution Account”).  Each Participant’s Deferral Contribution Account shall be further divided into separate subaccounts (“Fund Subaccounts”), each of which corresponds to a Fund elected by the Participant pursuant to Section 3.3(a).  As soon as reasonably possible after amounts are withheld and deferred from a Participant’s Compensation, the Committee shall credit the Fund Subaccounts of the Participant’s Deferral Contribution Account with an amount equal to Compensation deferred by the Participant in accordance with the Participant’s election under Section 3.3(a); that is, the portion of the Participant’s deferred Compensation that the Participant has elected to be deemed to be invested in a Fund shall be credited to the Fund Subaccount to be deemed invested in that Fund.  Each Fund SubAccounts shall be credited with notional investment gains and losses based on the investment gains and losses of the corresponding Fund.  Amounts attributed to the deferral of Compensation subject to different time or form of distribution elections under Section 3.4(a) shall be accounted for in a manner which allows separate accounting for the deferral of Compensation and investment gains and losses associated with such amounts.
4.2    Company Contribution Account.  The Committee shall establish and maintain an account under the Plan (the “Company Contribution Account”) for each Participant for Discretionary Company Contributions and Matching Contributions (together, the “Company Contributions”).  Each Participant’s Company Contribution Account shall be further divided into separate Fund Subaccounts corresponding to the Fund elected by the Participant pursuant to Section 3.3(a).  As soon as reasonably possible after a Company Contribution is made, the Company shall credit the Fund Subaccounts of the Participant’s Company Contribution Account with an amount equal to the Company Contributions, if any, made on behalf of that Participant, that is, the proportion of the Company Contributions, if any, which the Participant has elected to be deemed to be invested in a certain Fund shall be credited to the Fund Subaccount to be deemed invested in that Fund.  Each Fund SubAccounts shall be credited with notional investment gains and losses based on the 

	
			
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investment gains and losses of the corresponding Fund.  Amounts attributed to the deferral of Compensation subject to different time or form of distribution elections under Section 3.4(a) shall be accounted for in a manner which allows separate accounting for the deferral of Compensation and investment gains and losses associated with such amounts.
4.3    Trust.  The Company shall be responsible for the payment of all benefits under the Plan.  At its discretion, the Company may establish one or more grantor trusts for the purpose of providing for payment of benefits under the Plan.  Such trust or trusts may be irrevocable, but the assets thereof shall be subject to the claims of the Company’s creditors.  Benefits paid to the Participant from any such trust or trusts shall be considered paid by the Company for purposes of meeting the obligations of the Company under the Plan.
4.4    Statement of Accounts.  The Committee shall provide each Participant with electronic statements at least quarterly setting forth the Participant’s Account balance as of the end of each calendar quarter.  Such statements may be completed and distributed for the Committee by the Plan Administrator.

ARTICLE V     
VESTING
5.1    Vesting of Participant Deferral Contribution Accounts.  The Participant shall be vested at all times in amounts credited to the Participant’s Deferral Contribution Account or Accounts.
5.2    Vesting of Company Contributions Account.  Amount credited to the Participant’s Company Contributions Account shall be vested based upon the Participant’s Completed Years of Service according to the following schedule: 
Vesting schedule:
	
		
	Completed Years 
of Service
	Percentage of 
Account Vested

	Less than 1
	0%

	1 but less than 2
	20%

	2 but less than 3
	40%

	3 but less than 4
	60%

	4 but less than 5
	80%

	5 or more
	100%

In the event of Separation from Service as a result of Retirement, in the event of a Disability or death, or, in the event of a Change in Control, regardless of the Participant’s Years of Service, the Participant’s Company Contribution Account shall be fully vested.

ARTICLE VI     
DISTRIBUTIONS

	
			
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6.1    Distributions.  Subject to the provision of Sections 6.2, 6.3, 6.4 and 6.5 below and the provisions of Section 9.14, Distributable Amounts credited to a Participant’s Accounts on the applicable Benefit Commencement Date shall be distributed to the Participant in accordance with the Participant’s election described in Section 3.4(a).  All amounts distributed under the Plan will be in cash.  
6.2    Termination Payments.  In the event that a Participant has a Separation from Service (other than on account of death or Disability) prior to his or her Benefit Commencement Date (or prior to attainment of age 59 1⁄2 for elections to receive distributions on Retirement), the Distributable Amounts credited to the Participant’s Accounts on the date of such Separation from Service shall be paid in the form of a single lump sum distribution as soon as administratively feasible following the date of the Separation from Service (subject to Section 9.14).  
6.3    Death or Disability.  In the event that the Participant dies or is Disabled prior to the Participant’s Benefit Commencement Date, the Company shall pay to the Participant or his or her Beneficiary an amount equal to the Distributable Amount of such Account on the date of death or Disability as soon as administratively feasible following the Participant’s death or Disability.  In the event that the Participant dies or is disabled after commencement of benefits payable from an Account, all remaining benefits from such Account shall be paid to the Participant or his or her Beneficiary in a single lump sum as soon as administratively feasible from the notification date that the Participant has died or become disabled..      
6.4    Small Benefit Exception.  If a Participant has elected to receive his or her distribution in annual installments and, if on the Benefit Commencement Date, the total balance of the Distributable Amounts payable to the Participant is less than or equal to fifty thousand dollars ($50,000), such Distributable Amount shall be paid in the form of a single lump sum distribution as soon as administratively feasible following the Benefit Commencement Date (Subject to Section 9.14).  
6.5    Hardship Distribution.  Upon a finding that the Participant has suffered a Financial Hardship, subject to compliance with Code Section 409A, the Committee may, at the request of the Participant, accelerate distribution of benefits or approve reduction or cessation of current deferrals under the Plan in the amount reasonably necessary to alleviate such Financial Hardship subject to the following conditions:
		
	i.
	The request to take a Hardship Distribution shall be made by filing a form provided by and filed with the Committee prior to the end of any calendar month.

		
	ii.
	The amount distributed pursuant to this Section with respect to a Financial Hardship shall not exceed the amount necessary to satisfy such financial emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship).

		
	iii.
	The amount determined by the Committee as a Hardship Distribution shall be paid in a single cash lump sum as soon as practicable after the end of the calendar month in which the Hardship Distribution election is made and approved by the Committee.

	
			
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ARTICLE VII    
PAYEE DESIGNATIONS AND LIMITATIONS
7.1    Beneficiaries.
		
	i.
	Beneficiary Designation.  The Participant shall have the right, at any time, to designate any person or persons as Beneficiary (both primary and contingent) to whom payment under the Plan shall be made in the event of the Participant’s death.  The Beneficiary designation shall be effective when it is submitted to and acknowledged by the Committee during the Participant’s lifetime in the format prescribed by the Committee. 

		
	ii.
	Absence of Valid Designation.  If a Participant fails to designate a Beneficiary as provided above, or if every person designated as Beneficiary predeceases the Participant or dies prior to complete distribution of the Participant’s benefits, then the Committee shall direct the distribution of such benefits to the Participant’s estate.

7.2    Payments to Minors.  In the event any amount is payable under the Plan to a minor, payment shall not be made to the minor, but instead be paid (a) to that person’s living parent(s) to act as custodian, (b) if that person’s parents are then divorced, and one parent is the sole custodial parent, to such custodial parent, to act as custodian, or (c) if no parent of that person is then living, to a custodian selected by the Committee to hold the funds for the minor under the Uniform Transfers or Gifts to Minors Act in effect in the jurisdiction in which the minor resides.  If no parent is living and the Committee decides not to select another custodian to hold the funds for the minor, then payment shall be made to the duly appointed and currently acting guardian of the estate for the minor or, if no guardian of the estate for the minor is duly appointed and currently acting within sixty (60) days after the date the amount becomes payable, payment shall be deposited with the court having jurisdiction over the estate of the minor.
7.3    Payments on Behalf of Persons Under Incapacity.  In the event that any amount becomes payable under the Plan to a person who, in the sole judgment of the Committee, is considered by reason of physical or mental condition to be unable to give a valid receipt therefore, the Committee may direct that such payment be made to any person found by the Committee, in its sole judgment, to have assumed the care of such person.  Any payment made pursuant to such determination shall constitute a full release and discharge of any and all liability of the Committee and the Company under the Plan.
7.4    Inability to Locate Payee.  In the event that the Committee is unable to locate a Participant or Beneficiary within two years following the scheduled payment date, the amount allocated to the Participant’s Deferral Contribution Acount shall be forfeited.  If, after such forfeiture, the Participant or Beneficiary later claims such benefit, such benefit shall be reinstated without interest or earnings.

ARTICLE VIII     
ADMINISTRATION
8.1    Committee.  The Plan shall be administered by a Committee appointed by the Compensation Committee, which shall have the exclusive right and full discretion (a) to appoint 

	
			
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agents to act on its behalf, (b) to select and establish Funds, (c) to interpret the Plan, (d) to decide any and all matters arising hereunder (including the right to remedy possible ambiguities, inconsistencies, or admissions), (e) to make, amend and rescind such rules as it deems necessary for the proper administration of the Plan and (f) to make all other determinations and resolve all questions of fact necessary or advisable for the administration of the Plan, including determinations regarding eligibility for benefits payable under the Plan.  All interpretations of the Committee with respect to any matter hereunder shall be final, conclusive and binding on all persons affected thereby.  No member of the Committee or agent thereof shall be liable for any determination, decision, or action made in good faith with respect to the Plan.  The Company will indemnify and hold harmless the members of the Committee and its agents from and against any and all liabilities, costs, and expenses incurred by such persons as a result of any act, or omission, in connection with the performance of such persons’ duties, responsibilities, and obligations under the Plan, other than such liabilities, costs, and expenses as may result from the bad faith, willful misconduct, or criminal acts of such persons. 
8.2    Filing a Claim.  A Participant or beneficiary of a Participant who believes that he or she is eligible for a benefit under this Plan that has not been provided may submit a written claim for benefits to the Committee. The Committee shall evaluate each properly filed claim and notify the claimant of the approval or denial of the claim within 90 days after the Committee receives the claim, unless special circumstances require an extension of time for processing the claim. If an extension of time for processing the claim is required, the Committee shall provide the claimant with written notice of the extension before the expiration of the initial 90-day period, specifying the circumstances requiring an extension and the date by which a final decision will be reached (which date shall not be later than 180 days after the date on which the Committee received the claim). If a claim is denied in whole or in part, the Committee shall provide the claimant with a written notice setting forth (a) the specific reasons for the denial, (b) references to pertinent Plan provisions upon which the denial is based, (c) a description of any additional material or information needed and an explanation of why such material or information is necessary, and (d) the claimant’s right to seek review of the denial pursuant to Section 8.3 below. 
8.3    Review of Claim Denial.  If a claim is denied, in whole or in part, the claimant shall have the right to (a) request that the Committee review the denial, (b) review pertinent documents, and (c) submit issues and comments in writing, provided that the claimant files a written request for review with the Committee within 60 days after the date on which the claimant received written notice from the Committee of the denial. Within 60 days after the Committee receives a properly filed request for review, the Committee shall conduct such review and advise the claimant in writing of its decision on review, unless special circumstances require an extension of time for conducting the review. If an extension of time for conducting the review is required, the Committee shall provide the claimant with written notice of the extension before the expiration of the initial 60-day period, specifying the circumstances requiring an extension and the date by which such review shall be completed (which date shall not be later than 120 days after the date on which the Committee received the request for review). The Committee shall inform the claimant of its decision on review in a written notice, setting forth the specific reason(s) for the decision and reference to Plan provisions upon which the decision is based. A decision on review shall be final and binding on all persons for all purposes. 
ARTICLE IX     
MISCELLANEOUS

	
			
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9.1    Amendment or Termination of Plan.  The Company may, at any time, direct the Committee to amend or terminate the Plan, except that no such amendment or termination may reduce a Participant’s Account balances.  If the Company terminates the Plan, no further amounts shall be deferred hereunder, and amounts previously deferred or contributed to the Plan shall be fully vested and shall be paid in accordance with the provisions of the Plan as scheduled prior to the Plan termination.  Notwithstanding the forgoing, to the extent permitted under Code Section 409A and applicable authorities, the Company may, in its complete and sole discretion, accelerate distributions under the Plan in the event of a “change in ownership” or “effective control” of the Company or a “change in ownership of a substantial portion of assets” or under such other terms and conditions as may be specifically authorized under Code Section 409A and applicable authorities.
9.2    Unsecured General Creditor.  The benefits paid under the Plan shall be paid from the general assets of the Company, and the Participant and any Beneficiary or their heirs or successors shall be no more than unsecured general creditors of the Company with no special or prior right to any assets of the Company for payment of any obligations hereunder. It is the intention of the Company that this Plan be unfunded for purposes of ERISA and the Code.
9.3    Restriction Against Assignment.  The Company shall pay all amounts payable hereunder only to the person or persons designated by the Plan and not to any other person or entity.  No part of a Participant’s Accounts shall be liable for the debts, contracts, or engagements of any Participant, Beneficiary, or their successors in interest, nor shall a Participant’s Accounts be subject to execution by levy, attachment, or garnishment or by any other legal or equitable proceeding, nor shall any such person have any right to alienate, anticipate, sell, transfer, commute, pledge, encumber, or assign any benefits or payments hereunder in any manner whatsoever.  No part of a Participant’s Accounts shall be subject to any right of offset against or reduction for any amount payable by the Participant or Beneficiary, whether to the Company or any other party, under any arrangement other than under the terms of this Plan. 
9.4    Withholding.  The Company may make such provisions as it may deem appropriate for the withholding of any taxes that the Company determines it is required to withhold in connection with any benefit or payment under the Plan, including any amounts required to be withheld from a Participant’s Account at the time of vesting pursuant to Section 3121(v) of the Code. The Company shall have the right to reduce any payment by the amount of cash sufficient to provide the amount of said taxes.  
9.5    Protective Provisions.  The Participant shall cooperate with the Company by furnishing any and all information requested by the Committee, in order to facilitate the payment of benefits hereunder, taking such physical examinations as the Committee may deem necessary and taking such other actions as may be requested by the Committee.  If the Participant refuses to so cooperate, the Company shall have no further obligation to the Participant under the Plan.  In the event of the Participant’s suicide during the first two (2) years in the Plan, or if the Participant makes any material misstatement of information or non-disclosure of medical history, then no benefits shall be payable to the Participant under the Plan, except that benefits may be payable in a reduced amount in the sole discretion of the Committee.
9.6    Errors in Account Statements, Deferrals or Distributions.  In the event an error is made in an Account statement, such error shall be corrected on the next statement following the date such error is discovered.  In the event of an error in deferral amount, consistent with and as permitted 

	
			
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by any correction procedures established under IRC Section 409A, the error shall be corrected immediately upon discovery by, in the case of an excess deferral, distribution of the excess amount to the Participant, or, in the case of an under deferral, reduction of other compensation payable to the Participant.  In the event of an error in a distribution, the over or under payment shall be corrected by payment to or collection from the Participant consistent with any correction procedures established under IRC Section 409A, immediately upon the discovery of such error. In the event of an overpayment, the Company may, at its discretion, offset other amounts payable to the Participant from the Company (including but not limited to salary, bonuses, expense reimbursements, severance benefits or other employee compensation benefit arrangements, as allowed by law and subject to compliance with IRC Section 409A) to recoup the amount of such overpayment(s).
9.7    Employment Not Guaranteed.  Nothing contained in the Plan nor any action taken hereunder shall be construed as a contract of employment or as giving any Participant any right to continue the provision of services in any capacity whatsoever to the Company.
9.8    Successors of the Company.  The rights and obligations of the Company under the Plan shall inure to the benefit of, and shall be binding upon, the successors and assigns of the Company.
9.9    Notice.  Any notice or filing required or permitted to be given to the Company or the Participant under this Agreement shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, in the case of the Company, to the principal office of the Company, directed to the attention of the Committee, and in the case of the Participant, to the last known address of the Participant indicated on the employment records of the Company.  Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.  Notices to the Company may be permitted by electronic communication according to specifications established by the Committee.
9.10    Headings.  Headings and subheadings in this Plan are inserted for convenience of reference only and are not to be considered in the construction of the provisions hereof.
9.11    Gender, Singular and Plural.  All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, or neuter, as the identity of the person or persons may require.  As the context may require, the singular may be read as the plural and the plural as the singular. 
9.12    Governing Law.  The Plan is intended to be an unfunded plan maintained primarily to provide deferred compensation benefits for a select group of “management or highly compensated employees” within the meaning of Sections 201, 301 and 401 of ERISA and therefore to be exempt from Parts 2, 3 and 4 of Title I of ERISA.  In the event any provision of, or legal issue relating to, this Plan is not fully preempted by federal law, such issue or provision shall be governed by the laws of the State of Ohio.
9.13    Binding Arbitration.  Any claim, dispute or other matter in question of any kind relating to this Plan which is not resolved by the claims procedures under this Plan shall be settled by arbitration in accordance with the applicable employment dispute resolution rules of the American Arbitration Association.  Notice of demand for arbitration shall be made in writing to the opposing party and to the American Arbitration Association within a reasonable time after the claim, dispute or other matter in question has arisen.  In no event shall a demand for arbitration be made after the date when the applicable statute of limitations would bar the institution of a legal or equitable proceeding 

	
			
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based on such claim, dispute or other matter in question.  The decision of the arbitrators shall be final and may be enforced in any court of competent jurisdiction.  The arbitrators may award reasonable fees and expenses to the prevailing party in any dispute hereunder and shall award reasonable fees and expenses in the event that the arbitrators find that the losing party acted in bad faith or with intent to harass, hinder or delay the prevailing party in the exercise of its rights in connection with the matter under dispute.
9.14    Code Section 409A
		
	(a)
	To the fullest extent possible, amounts and other benefits payable under the Plan are intended to be comply with or be exempt from Code Section 409A, and the Company shall have complete discretion to interpret and construe this Agreement and any associated documents in any manner that establishes an exemption from (or compliance with) the requirements of Code Section 409A.  Any terms of this Plan that are undefined or ambiguous shall be interpreted by the Company in its discretion in a manner that complies with Code Section 409A to the extent necessary to comply with Code Section 409A.  If for any reason, such as imprecision in drafting, any provision of this Plan does not accurately reflect its intended establishment of an exemption from (or compliance with) Code Section 409A, as demonstrated by consistent interpretations or other evidence of intent, such provision shall be considered ambiguous as to its exemption from (or compliance with) Code Section 409A and shall be interpreted by the Company in a manner consistent with such intent, as determined in the discretion of the Company.  If, notwithstanding the foregoing provisions of this paragraph, any provision of this Plan would cause a Participant to incur any additional tax or interest under Code Section 409A, the Company shall interpret or reform such provision in a manner intended to avoid the incurrence by the Participant of any such additional tax or interest; provided that the Company agrees to maintain, to the maximum extent practicable, the original intent and economic benefit to the Participant of the applicable provision without violating the provisions of Code Section 409A. 

		
	(b)
	Any provision of this Plan to the contrary notwithstanding, if at the time of a Participant’s Separation from Service, the Company determines that the Participant is a “specified employee,” within the meaning of Code Section 409A, based on an identification date of December 31, then to the extent any distribution that the Participant becomes entitled to under this Plan on account of such Separation from Service would be considered nonqualified deferred compensation under Code Section 409A, such distribution shall not be paid prior to the date which is the earlier of (i) six (6) months and one day after such separation from service, and (ii) the date of the Participant’s death (the “Delay Period”).  All distributions delayed pursuant to this paragraph shall be paid or provided to the Participant in a lump-sum and any remaining payments and benefits due under this Plan shall be paid, or provided in accordance with the normal payment dates specified for them herein, as soon as administratively feasible following the expiration of the Delay Period.

		
	(c)
	Whenever a payment under this Plan specifies a payment period with reference to a number of days (for example, “payment shall be made as soon as administratively feasible following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.  In no event may 

	
			
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the Participant, directly or indirectly, designate the calendar year of any payment to be made under this Plan, to the extent such payment is subject to Code Section 409A.
		
	(d)
	The Company makes no representation or warranty and shall have no liability to the Participant or any other person if any provisions of this Plan are determined to constitute deferred compensation subject to Code Section 409A but do not satisfy an exemption from, or the conditions of, Code Section 409A.

IN WITNESS WHEREOF, the Compensation Committee of the Board of Directors of the Company has approved the adoption of this Plan as of the Effective Date and has caused the Plan to be executed by its duly authorized representative this 13th day of December, 2012.

Omnicare, Inc.,
By         
Steven Heyer (Chair)
Mark Emmert
Andrea Lindell

	
			
	OCR NQDC 11-12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]