Document:

Exhibit

Exhibit 10.2
	
			
	Form 2019 Executive Performance Agreement - 
Section 16 Officer

	 
	Pursuant to the Cerner Corporation 2018 Performance Compensation Plan, effective as of January 1, 2018 
(the “2018 CPP”)
	 

Plan Metrics
Your annual Target Bonus Level (TBL) is $«Total_TBL».  
Your Performance Metric Payout will be based on attainment of the following Performance Metrics:
	
				
	Weighting
	Performance Metric
	PF Applies
	Scope

	50%
	Adjusted Earnings per Share (Adjusted EPS)
	Yes
	Corporate

	25%
	Revenue
	Yes
	Corporate

	25%
	Free Cash Flow
	Yes
	Corporate

Your Performance Metric Payout will be calculated based on the Attainment % of Performance Metric set forth in the table below.  

Adjusted EPS                     Revenue                                                  Free Cash Flow
	
			
	 	Attainment % of Performance Metric*
	Payout %

	 
	 	103%
	140%

	 	102%
	120%

	 	100% (target)
	100%

	 	98%
	75%

	 	96%
	50%

	 	<96%
	0%

           	
			
	 	Attainment % of Performance Metric*
	Payout % 

	 
	 	102%
	140%

	 	101%
	120%

	 	100% (target)
	100%

	 	98%
	75%

	 	97%
	50%

	 	<97%
	0%

          	
			
	 	Attainment % of Performance Metric*
	Payout % 

	 
	 	111%
	140%

	 	105%
	120%

	 	100% (target)
	100%

	 	95%
	75%

	 	89%
	50%

	 	<89%
	0%

*Percentages are year-end target percentages rounded to the nearest whole number.

The calculated Performance Metric Payout may also be increased or reduced as described herein or as otherwise provided in the 2018 CPP; provided, however, in no event may your total Performance Metric Payout for the year be more than 200% of your annual TBL.

Payout Adjustment - Based on Performance Factor (PF)
You will receive a quarterly and an annual PF rating determined by your direct manager, which rating may affect your calculated Performance Metric Payout as set forth below.   

At the discretion of the Compensation Committee or management, your Performance Metric Payout for any quarter or for the year may be decreased or, at the discretion of the Compensation Committee, increased in either case pursuant to your PF rating or otherwise; provided, however, in no event may your calculated Performance Metric Payout for the full year exceed 200% of your annual TBL. 

Payment Terms, Schedule and Criteria
Terms
Payment for Adjusted EPS and Revenue Metrics
Payment based on the for Adjusted EPS and Revenue metrics will be calculated quarterly based on approved quarterly targets that build cumulatively to a full-year target.  If you are in an eligible role for a full calendar year, for each of the first three quarters of the year, you will be eligible to be paid 15% of your annual TBL opportunity, as adjusted for the applied weighting above, based on these metrics and at year-end, 55% of your annual TBL opportunity, as adjusted for the applied weighting above,  will be calculated based on the full-year targets.  If you are in an eligible role for less than a full calendar year, your dollars available for any quarter or the year will be proportionately reduced.  
Payment for Free Cash Flow Metric
Payment based on the Free Cash Flow metric will be calculated based on approved quarterly targets that build cumulatively to a full-year target. Each quarter, you will be eligible to be paid 25% of your annual TBL opportunity, as adjusted for the applied weighting above, for these metrics. 

Timing Code definitions of specific payment timing are located in the 2018 CPP Glossary (updated effective January 1, 2019) located on uCERN. 

Changes to your TBL, based on any compensation adjustments, will be reflected in payment calculations on a pro-rata basis for the appropriate quarters. As a Section 16 Officer, your first quarter performance-based compensation opportunity is based on (i) your TBL approved last year and (ii) the approved 2019 CPP quarterly metrics. Your second and third quarter and year-end performance-based compensation opportunity is based on (i) your new TBL approved this year and (ii) the approved 2019 CPP quarterly and annual 2019 CPP metrics, both as established by the Compensation Committee at the end of the first quarter (usually in March).  In its sole discretion, the Compensation Committee may elect to change your TBL or 2019 CPP metrics after being initially established or any other time. 
Corrections to prior period payments may be made and applied to current period payments earned to ensure accurate incentive payments.  
Timing
Payment of earned TBL will be made approximately sixty (60) days after the end of a quarter in which such payment is earned.
Criteria
		
	1.
	In order to be eligible for any payments under this Agreement, Cerner must have received your signed Cerner Associate Employment Agreement, which governs the terms and conditions of your employment with Cerner.  

		
	2.
	Participation under this Agreement begins as of the beginning of the first full quarter of employment in, or assignment to, an eligible role under the 2018 CPP.  If you are newly eligible to participate under this Agreement, you will satisfy the "full quarter" requirement as long as you are actively working within the first sixteen (16) working days of the quarter.

		
	3.
	Payments under the 2018 CPP for any one quarter or the year will be forfeited if you fail to complete performance reviews/self-appraisals as required by Cerner's Human Resources group. Any balance of the payout that could have been attained is forfeited and will not be paid in subsequent quarters.   

		
	4.
	Exceptions to the above items will be considered and determined by the Plan Administrator(s), in its sole discretion.

Other Considerations

		
	1.
	Termination of Eligibility: Your eligibility under the 2018 CPP will be terminated immediately in the event of termination of employment with Cerner Corporation or any of its subsidiaries (“Cerner”), for any reason (voluntarily or involuntarily), or transfer to a non-Cerner Performance Plan (CPP) eligible role. Payments are earned only for completed periods (quarters, semi-annual, or annual metrics); i.e., if employment with Cerner is terminated or if participation in the 2018 CPP is otherwise terminated at any time before the completion of a period, no incentive will be earned or paid for that period. You will be entitled to payment for the earned CPP incentive only if you are employed in your CPP-eligible role on the last day of the fiscal period. The 2018 fiscal year calendar can be found in Exhibit III of the 2019 CPP Glossary (effective January 1, 2019) available on uCERN.

		
	2.
	Leave of Absence:  If you are not actively at work for more than six weeks of any quarter, your Performance Metric Payout will be reduced as set forth in the CPP Leave Policy (located on uCERN).  

		
	3.
	Repayments to Cerner: In the event your employment is terminated, for any reason (voluntarily or involuntarily), and you owe money to Cerner, for any reason, or you are required to return incentive payments, Cerner may deduct the amounts owed from all accounts due to you, such as salary, advances, vacation pay, expense reimbursements, incentive payments, and other Cerner monies owed to you. To the extent such amounts are not setoff, you will remain liable for any remaining balance. Cerner reserves the right to collect any outstanding balance through legal means if necessary.

		
	4.
	Incentive Payment Recovery; Clawback:  

		
	a.
	In the Event of a Restatement.  If Cerner implements a Mandatory Restatement (as defined in Section 9 of the 2018 CPP), which restatement relates in whole or in part to the 2019 fiscal year or prior years while you were eligible for CPP, some or all of any amounts paid as an incentive payment earned by you under this Agreement and related to such restated period(s) shall be recoverable and,  as determined appropriate by Cerner's Board of Directors, must be repaid within ninety (90) days of such restatement(s) or such other period as determined by the Board of Directors.  The amount which must be repaid, if any as determined by the Board of Directors, will be up to the amount by which the compensation paid or received exceeds the amount that would have been paid or received based on the financial results reported in the restated financial statement, in each case determined by the Plan Administrator.  Any amount required to be repaid may be repaid directly by you, setoff against future amounts owed to you by Cerner under this Agreement (if such amounts will be earned and paid within the ninety (90) day payment period) or any other amount owed to you by Cerner, as permitted by applicable law, or paid as otherwise agreed in writing between you and Cerner. Cerner will not be required to award additional CPP payments should the restated financial statements result in a higher CPP payout. 

		
	b.
	In the Event of Fraud or Misconduct.  Additionally, if Cerner implements a Mandatory Restatement, which restatement relates in whole or in part to the 2019 fiscal year or prior years while you were eligible for CPP, all amounts paid as an incentive payment earned by you under this Agreement and related to such restated period(s) shall be fully recoverable if it is determined by Cerner’s Board of Directors that you engaged in fraud or misconduct that caused or partially caused the need for the restatement and must be repaid within ninety (90) days of such restatement(s) or such other period as determined by the Board of Directors.  Any amount required to be repaid may be repaid directly by you, setoff against future amounts owed to you by Cerner under this Agreement (if such amounts will be earned and paid within the ninety (90) day payment period) or any other amount owed to you by Cerner, as permitted by applicable law, or paid as otherwise agreed in writing between you and Cerner.

		
	c.
	Dodd-Frank Clawback.  Additionally, any amounts paid under the 2018 CPP and this Agreement may be subject to certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”) that will require Cerner to recover certain amounts of incentive compensation paid to certain executive officers if Cerner is required to prepare an accounting restatement due to the material noncompliance of Cerner with any financial reporting requirements under any applicable securities laws. By participating in the 2018 CPP and whether or not any compensation is ultimately paid hereunder, you agree and consent to any forfeiture or required recovery or reimbursement obligations of Cerner with respect to any compensation paid to you that is forfeitable or recoverable by Cerner pursuant to Dodd-Frank and in accordance with any Cerner policies and procedures adopted by the Compensation Committee in order to comply with Dodd Frank, even if such policies or procedures are adopted in the future. 

		
	5.
	Modifications to this Agreement: The Plan Administrator reserves the right, in its sole discretion, to interpret and modify this Agreement: (a) during the performance period to coincide with changing corporate objectives, and (b) during or after the performance period to: (i) avoid windfall payments unintentionally derived from the 2018 CPP design that may result from the highly variable nature of many Client Agreement(s) or market conditions and/or (ii) adjust payments or terminate this Agreement when an Associate’s performance has been documented by management to be unacceptable. Such modifications will occur only under the authority of the Plan Administrator(s), in its sole discretion.  Any component of this Agreement may be adjusted to ensure that you receive adequate, yet reasonable, compensation.  

Capitalized terms used but not otherwise defined in this Agreement have the meanings set forth in the 2018 CPP Glossary (updated effective January 1, 2019).Exhibit

Exhibit 10.3

CERNER CORPORATION
2011 OMNIBUS EQUITY INCENTIVE PLAN -TIME BASED RESTRICTED STOCK AGREEMENT

(Continued from the “Notice of Grant Award and Award Agreement”)

WHEREAS, the Compensation Committee of the Board of Directors or its duly appointed subcommittee or authorized delegatee (the “Committee”) of Cerner Corporation (“the Company”) has determined that Grantee (“Participant”) is eligible to receive a Time-Based Restricted Stock Grant under the Company’s 2011 Omnibus Equity Incentive Plan, as amended, supplemented, restated or otherwise modified (the “Plan”), as so indicated in the Notice of Grant Award and Award Agreement, which together with this Time Based Restricted Stock Agreement, constitutes the “Agreement”;

NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained and other good and valuable consideration, the parties hereto do hereby agree as follows:

1.  Incorporation of the Plan.  A copy of the Plan is incorporated herein by reference and all the terms, conditions and provisions contained therein shall be deemed to be contained in this Agreement.

2.  Restricted Stock Grant.  Pursuant to the authorization of the Committee, and subject to the terms, conditions and provisions contained in this Agreement and any other specifically agreed to terms and conditions that may exist in any employment agreement between Participant and the Company (which shall govern over this Agreement), the Company hereby grants to Participant a Time-Based Restricted Stock Award (the “Award”) for the aggregate number of shares of Company Common Stock (the “Shares”) as set forth in the Notice of Grant Award.  The date of grant of the Award (the “Grant Date”) shall for all purposes be as set forth in the Notice of Grant Award. 
 
3.  Rights as a Shareholder.  Commencing on the Grant Date, Participant shall have the right to receive dividends and other distributions (if any) with respect to the Shares unless and until such Shares are forfeited pursuant to Section 5 hereof, sold or otherwise disposed of; provided, however, that a dividend or other distribution (including, without limitation, a cash dividend, stock dividend or stock split), shall be delivered to the Company, held in escrow and accumulated in a non-interest bearing Company bookkeeping account and shall be subject to the same vesting schedule and other terms, conditions and restrictions as the Shares with respect to which such dividend or other distribution relates.  In connection with the payment of such dividends or other distributions, the Company may deduct any taxes or other amounts required by any governmental authority to be withheld and paid over to such authority for the account of Participant.  Prior to a Share's Vest Date, Participant shall have no right to vote the Shares until such Shares are actually distributed on the Vest Date and shall be deemed to have assigned any such voting right to the Company.  Notwithstanding anything to the contrary, prior to the date on which the Shares and any related property received under Section 3 hereof (the “Aggregate Restricted Shares”) Vest pursuant to Section 5, such Aggregate Restricted Shares shall be subject to the restrictions on transferability contained in Section 6 hereof.

4.  Custody and Delivery of Shares.  Unless otherwise requested by Participant, Aggregate Restricted Shares will be distributed in street name on the Vest Date and held in Participant’s account at Morgan Stanley or other broker that the Company may choose (the “Broker”).  Prior to the Vest Date, the Grant of the Aggregate Restricted Shares will be recorded in the Company’s books and records.  Company will reflect in its records the restrictions under which the Aggregate Restricted Shares are held and will not allow distribution or transfer of any Aggregate Restricted Shares prior to the date on which such Aggregate Restricted Shares Vest pursuant to Section 5 below.   Shares, representing Vested Aggregate Restricted Shares, will be distributed only on or after the Vest Date and only if the requirements of Vesting set forth in Section 5 are met.  The Company will pay all original issue or transfer taxes and all fees and expenses incident to the delivery of any Aggregate Restricted Shares hereunder.

5.  Vesting and Forfeiture.  Except as otherwise provided in the Plan, this Agreement or any employment agreement between Participant and the Company, the Aggregate Restricted Shares subject to this Award shall be distributed, become transferable and shall cease to be subject to forfeiture (“Vest”) on the date(s) set forth in the Notice of Grant Award (the “Vest Date”) provided Participant remains an employee (“associate”), consultant or advisor of the Company from the Grant Date through the Vest Date set forth in the Notice of Grant Award.  In the event of the death or disability of Participant prior to the Vest Date, and assuming Participant continuously served as an employee through the date of such death or disability, then the Aggregate Restricted Shares shall Vest on the Vest Date if the Vest Date occurs within ninety (90) days of such death or disability; otherwise the Aggregate Restricted Shares shall immediately 

terminate and be forfeited to the Company upon such death or disability. In the event such Participant is terminated or resigns, then all Aggregate Restricted Shares that have not Vested as of such date shall immediately terminate and shall be forfeited to the Company. In the event of a “Change of Control” as defined in the Plan: (i) 50% of Participant’s outstanding Shares that have not yet Vested shall immediately Vest (such 50% shall be comprised of 50% of each tranche of all unvested Shares with different Vest dates); and, (ii) all remaining Shares shall continue to Vest according to the current vesting schedule and terms of this Award, but should Participant’s employment or engagement be terminated by the Company, other than for Cause, or should Participant resign for Good Reason (as defined in Participant’s employment agreement with the Company or in the Company’s then current Enhanced Severance Pay Plan), within twelve (12) months of the Change in Control, all such remaining Shares shall Vest immediately.  Within the 90-day period following a Vest Date, all accrued dividends or other distributions held in escrow in accordance with Section 3 and relating to any Shares vesting shall be paid or delivered to Participant. Notwithstanding the foregoing, and except to the extent any contrary or overriding term would result in a violation of Code Section 409A, to the extent that (i) the employment agreement between Participant and the Company contains terms and conditions relating to the Vesting or forfeiture of equity awards, including the Shares, and (ii) a provision in such employment agreement directly conflicts with any provision in this Section 5, the terms and conditions set forth in such employment agreement shall supersede and control.  

6.  Non-Transferability of Shares.  Prior to the date on which any Aggregate Restricted Shares Vest pursuant to Section 5 hereof, such Aggregate Restricted Shares may not be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment or similar process.  Any such attempted sale, transfer, assignment, pledge, hypothecation or encumbrance, or other disposition of such Aggregate Restricted Shares shall be null and void.

7.  Securities Laws.  Participant hereby represents and covenants that if in the future Participant decides to offer or dispose of any Aggregate Restricted Shares or interest therein, Participant will do so only in compliance with this Agreement, the Securities Act of 1933, as amended, and all applicable state securities laws.  As a condition precedent to the delivery to Participant of the Aggregate Restricted Shares, Participant shall comply with all regulations and requirements of any regulatory authority having control or supervision over the issuance of the Aggregate Restricted Shares and, in connection therewith, shall execute any documents and make any representation and warranty to the Company which the Committee shall in its sole discretion deem necessary or advisable.

8.  Taxable Income.  Participant may file an election for immediate Federal income taxation pursuant to Section 83(b) of the Internal Revenue Code.  In the event that Participant makes an election pursuant to Section 83(b) of the Code, Participant agrees to notify the Company thereof in writing within ten (10) days after such election; any necessary withholding at the time of an 83(b) election must not be made from Vested Shares, but must be a cash withholding, from either wages or a separate payment. THE FEDERAL INCOME TAX CONSEQUENCES DESCRIBED ABOVE ARE FOR GENERAL INFORMATION ONLY. EACH PARTICIPANT SHOULD CONSULT A TAX ADVISOR AS TO THE SPECIFIC FEDERAL INCOME TAX CONSEQUENCES AND AS TO THE SPECIFIC CONSEQUENCES UNDER STATE, LOCAL AND FOREIGN TAX LAWS.

9.  Withholding with Shares.  Unless specifically denied by the Committee, Participant may elect to pay all amounts of tax withholding, or any part thereof, by electing to have the Company withhold from the Vested Shares in the same tranche a number of Shares having a value equal to the amount to be withheld under federal, state or local law and in accordance with the Plan.  The value of such Shares to be withheld by the Company shall be based on the Fair Market Value of the Shares on the date that the amount of tax to be withheld is to be determined (the “Tax Date”), as determined by the Committee.  Any election by Participant to have such Shares withheld for this purpose will be subject to the following restrictions:
   
(a) All elections must be made prior to the Tax Date;
     
(b) All elections shall be irrevocable; and
   
(c) If Participant is an officer or director of the Company within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended (“Section 16”), Participant must satisfy the requirements of Section 16 and any applicable rules thereunder with respect to the use of Shares to satisfy such tax withholding obligation.

10. Notices.  Any notices or other communications required or allowed to be made or given to the Company under the terms of this Agreement shall be addressed to the Company in care of its President at its offices at 2800 Rockcreek Parkway, North Kansas City, Missouri 64117, and any notice to be given to Participant shall be addressed to Participant 

at the address in the Company’s records.  Either party hereto may from time-to-time change the address to which notices are to be sent to such party by giving written notice of such change to the other party.  Any notice hereunder shall be deemed to have been duly given five (5) business days after registered and deposited, postage and registry fee prepaid, in a post office regularly maintained by the United States government.

11.  Binding Effect and Assignment.  This Agreement shall bind the parties hereto, but shall not be assignable by Participant.  

12.  Governing Law.  This Agreement shall be construed in accordance with the laws of the State of Missouri.  

This Agreement has been issued by the Company by its duly authorized representatives and shall be effective as of the Grant Date as set forth in the Notice of Grant Award.

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