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 su