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Exhibit
99.1
CHANGE OF CONTROL
AGREEMENT
This AGREEMENT by and between
NDCHealth Corporation, a Delaware corporation (the
“Company”), and James Fitzgibbons, a resident of
Georgia (the “Employee”), is dated as of the 6 day of
May, 2005 (the “Effective Date”).
WHEREAS, The Board of
Directors of the Company (the “Board”) recognizes the
possibility that a sale of the Company or other Change of Control
(as hereinafter defined) could occur, which could result in
significant distraction of the Company’s key personnel
because of the uncertainties inherent in such a situation;
and
WHEREAS, the Board has
determined that it is essential and in the best interest of the
Company and its stockholders to be able to retain the services of
the Employee notwithstanding the possibility of a sale or other
Change of Control and to ensure the Employee’s continued
dedication and efforts in such an event without undue concern for
the Employee’s personal financial and employment
security;
NOW, THEREFORE, in
consideration of the respective agreements of the parties set forth
herein, it is hereby agreed as follows:
1. Certain
Definitions.
(a) “Accrued
Compensation” shall mean the sum of: (i) the Employee’s
Base Salary through the Termination Date to the extent not
theretofore paid, and (ii) an amount equivalent, at the
Employee’s Base Salary rate at the Termination Date, to any
accrued but unused vacation time, to the extent not theretofore
paid; provided, however, that Accrued Compensation shall not
include any amounts described in clause (i) or clause (ii) that
have been deferred pursuant any salary reduction or deferred
compensation elections made by the Employee.
(b) “Affiliate”
shall mean any entity directly or indirectly, controlled by,
controlling or under common control with the Company or any
corporation or other entity acquiring, directly or indirectly, all
or substantially all the assets and business of the Company,
whether by operation of law or otherwise.
(c) “Base Salary”
shall mean the Employee’s annual base salary at the rate in
effect at the Termination Date, determined without regard to any
deferred compensation elections made by the Employee.
(d) “Cause” shall
mean:
(i) the failure of the
Employee to perform substantially the Employee’s reasonably
assigned duties with the Company or one of its Affiliates (other
than any such failure resulting from incapacity due to physical or
mental
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illness or from the
assignment to the Employee of duties with the Company or one of its
Affiliates that would constitute Good Reason), which failure has
not been cured to the satisfaction of the Company within thirty
(30) days after a notice of inadequate performance, signed by a
duly authorized officer of the Company, has been delivered to the
Employee specifying the manner in which the Employee has failed
substantially to perform, or
(ii) any act of fraud,
misappropriation, embezzlement, misuse or misappropriation of
Company trade secrets, intellectual property or confidential
information, violation of any Restrictive Covenant or any law or
contract protecting Company trade secrets or intellectual property,
or other dishonest or wrongful act by the Employee, or
(iii) the Employee’s
abuse of alcohol or any substance which materially interferes with
the Employee’s ability to perform services on behalf of the
Company, or
(iv) the engaging by the
Employee in illegal conduct or material misconduct; or
(v) the Employee’s
acceptance of employment with an employer other than the Company or
any Affiliate.
(e) “Change of
Control” shall mean:
(i) The acquisition by any
individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) (a “Person”) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 35% or more of the combined voting power of the
then outstanding voting securities of the Company entitled to vote
generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that for
purposes of this subsection (a), the following acquisitions shall
not constitute a Change in Control: (i) any acquisition by a Person
who is on the Effective Date the beneficial owner of 35% or more of
the Outstanding Company Voting Securities, (ii) any acquisition
directly from the Company, (iii) any acquisition by the Company
which reduces the number of Outstanding Company Voting Securities
and thereby results in any person having beneficial ownership of
more than 35% of the Outstanding Company Voting Securities, (iv)
any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation
controlled by the Company, or (v) any acquisition by any
corporation pursuant to a transaction which complies with clauses
(i) and (ii) of subsection (b) of this Section 6; or
(ii) Consummation of a
reorganization, merger or consolidation or
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sale or other disposition of
all or substantially all of the assets of the Company (a
“Business Combination”), in each case, unless,
following such Business Combination, (i) all or substantially all
of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more
than 50% of, respectively, the then outstanding shares of common
stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors,
as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation which as
a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or
through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such Business
Combination of the Outstanding Company Common Stock and Outstanding
Company Voting Securities, as the case may be, and (ii) no Person
(excluding the Company or any employee benefit plan (or related
trust) of the Company or such corporation resulting from such
Business Combination) beneficially owns, directly or indirectly,
35% or more of the combined voting power of the then outstanding
voting securities of such corporation except to the extent that
such ownership existed prior to the Business Combination; provided,
however, that
(iii) Notwithstanding
anything in this definition to the contrary, a restructuring and/or
separation of any line of business or business unit from the
Company will not of itself constitute a Change in Control;
provided , however, that the sale of all or substantially
all of the assets of the business unit in which the Employee is
employed and working as of the Termination Date shall, to the
extent it meets the other requirements and limitations of this
definition, be deemed to constitute a Change of Control solely for
purposes of this Agreement.
(f) “Company”
shall mean NDCHealth Corporation, its successors and
assigns.
(g) “Disability”
shall mean that the Employee has become eligible to participate in
the Company’s long term disability plan.
(h) “Effective
Date” shall mean the first date on which a Change of Control
occurs.
(i) “Good Reason”
shall mean the occurrence, after a Change of Control, of any of the
following events or conditions:
(i) a reduction by the
Company, without the Employee’s consent, in the
Employee’s Base Salary as in effect on the Effective Date or
as the same may be increased from time to time, unless a similar
reduction is made in salary of all
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peer senior executives of the
Company (or any of its subsidiaries and any of their respective
affiliates with respect to which the Company exerts control over
compensation policies), that is not cured within ten (10) business
days after the Company receives from the Employee a written Notice
of Termination, which Notice must be given within thirty (30) days
following the effective date of the reduction; or;
(ii) the Company’s
requiring the Employee, without his consent, to be based at any
office or location other than in the greater metropolitan area of
the city in which his office is located at the Effective
Date.
(j) “Notice of
Termination” shall mean written notice, following a Change of
Control, of termination of the Employee’s employment signed
by the Employee if to the Company or by a duly authorized officer
of the Company if to the Employee, which indicates the specific
termination provision in this Agreement, if any, relied upon and
which sets forth in reasonable detail the facts and circumstances
claimed to provide the basis for termination of the
Employee’s employment under the provision so indicated. The
failure by the Employee or the Company to set forth in the Notice
of Termination any fact or circumstance which contributes to a
showing of Good Reason or Cause shall not waive any right of the
Employee or the Company, respectively, hereunder or preclude the
Employee or the Company, respectively, from asserting such fact or
circumstance in enforcing the Employee’s or the
Company’s rights hereunder.
(k) “Restrictive
Covenants” shall mean any and all agreements executed by the
Employee purporting to prohib
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