Exhibit 10.64
RSUs
(U.S. C ARE F USION E MPLOYEES )
A DJUSTMENTS
TO C ARDINAL H EALTH R ESTRICTED S HARE U NITS AND T ERMS OF
C
ARE F USION R ESTRICTED S HARE U NITS
August 31,
2009
As a result of the separation of the
clinical and medical products businesses of Cardinal Health, Inc.
(“ Cardinal Health ”) by means of a spin-off of
those businesses to Cardinal Health’s shareholders, effective
August 31, 2009 (the “ Spin-Off ”),
outstanding restricted share unit awards granted by Cardinal Health
to you (the “ Cardinal Health RSUs ”) pursuant
to the terms of Cardinal Health’s 2005 Long-Term Incentive
Plan, as amended and restated November 5, 2008 (the
“Cardinal LTIP”), and related grant agreements (the
“ Cardinal Health RSU Agreements ”) are being
adjusted, as of the effective time of the Spin-Off, as
follows:
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With respect to each outstanding
Cardinal Health RSU initially granted to you (i) on or prior
to September 26, 2007, (ii) on October 15, 2008, or
(iii) on November 17, 2008 that does not vest ratably
over three years, (each, a “ Pre-2007 Cardinal RSU
”), you are receiving a restricted share unit representing
the right to receive 0.5 shares of common stock of CareFusion
Corporation (each, a “ CareFusion RSU ”) for
each Cardinal Health common share that you have the right to
receive under a Pre-2007 Cardinal RSU.
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Each outstanding Cardinal Health
RSU that is not a Pre-2007 Cardinal RSU will be cancelled and a
CareFusion RSU will be issued.
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Adjustments to Terms of
Pre-2007 Cardinal RSUs
Except as described below, your
Pre-2007 Cardinal RSU will continue to be governed by (i) your
Cardinal Health RSU Agreements, as amended (including the
provisions in the agreements relating to “Triggering
Conduct/Competitor Triggering Conduct” and “Special
Forfeiture/Repayment Rules”) and (ii) the Cardinal LTIP.
Therefore, among other terms, the extent to which each Pre-2007
Cardinal RSU will vest on and after specific dates will be the same
as those set forth in your Cardinal Health RSU
Agreements.
Your Pre-2007 Cardinal RSUs have
been adjusted in the following ways:
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For the purposes of vesting of
your Pre-2007 Cardinal RSUs and forfeiture of your Pre-2007
Cardinal RSUs on termination of employment under the Cardinal
Health RSU Agreements and Cardinal LTIP, your continued employment
with CareFusion Corporation (“ CareFusion ”) or
any of its affiliates shall be treated as continued employment with
Cardinal Health until you cease to be a full-time employee of
CareFusion or any of its affiliates. However, for other purposes
with respect to your Pre-2007 Cardinal RSUs, including the
provisions in the Cardinal Health RSU Agreements relating to
“Triggering Conduct/Competitor Triggering Conduct”,
“Special
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RSUs
(U.S. C ARE F USION E MPLOYEES )
Forfeiture/Repayment Rules”
and “Holding Periods Requirements.” you will cease to
be employed by Cardinal Health when the Spin-Off is
effective.
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In addition to the obligations
set forth in the “Triggering Conduct/Competitive Triggering
Conduct” and “Special Forfeiture/Repayment Rules”
provisions of your Cardinal Health RSU Agreement, your Pre-2007
Cardinal RSUs will also be subject to the “Triggering
Conduct/Competitive Triggering Conduct” and “Special
Forfeiture/Repayment Rules” provisions set forth on
Appendix A attached hereto.
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Please note that CareFusion and
its affiliates are third party beneficiaries of all rights that
benefit CareFusion with respect to your Pre-2007 Cardinal RSUs and
as a result CareFusion may enforce with full force and effect all
terms and conditions that benefit CareFusion with respect to such
RSUs.
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CareFusion
RSUs
Your CareFusion RSUs are granted
under, and subject to, the terms and conditions of the CareFusion
Corporation 2009 Long-Term Incentive Plan. They are also subject to
the terms of the Cardinal Health RSU Agreement for the
corresponding Pre-2007 Cardinal RSU (including paragraphs 3 and 4
of the agreement regarding “Triggering Conduct/Competitor
Triggering Conduct” and “Special Forfeiture/Repayment
Rules”) and the Cardinal LTIP, which have been adjusted and
restated on Appendix B attached hereto for purposes of
applying them to your CareFusion RSUs and have been approved by the
Human Resources and Compensation Committees of Cardinal Health and
CareFusion. Please note that Cardinal Health and its affiliates are
third party beneficiaries of all rights that benefit Cardinal
Health with respect to your CareFusion RSUs and as a result
Cardinal Health may enforce with full force and effect all terms
and conditions that benefit Cardinal Health with respect to such
RSUs.
RSUs
(U.S. C ARE F USION E MPLOYEES )
Appendix A
1. Triggering Conduct/Competitor
Triggering Conduct .
(a) For so long as you are an
employee of the CareFusion Group (as defined below) and for three
(3) years following the termination of your full-time
employment by CareFusion or one of its affiliates regardless of the
reason, in addition to the events set forth in your Cardinal Health
RSU Agreement, “Triggering Conduct” shall
include:
(i) other than in the performance of
duties assigned by the CareFusion Group, disclosing or using in any
capacity any confidential information, trade secrets or other
business sensitive information or material concerning the
CareFusion Group;
(ii) a violation of policies of the
CareFusion Group, including, but not limited to, conduct which
would constitute a breach of any certificate of compliance or
similar attestation/certification signed by you;
(iii) directly or indirectly
employing, contacting concerning employment, or participating in
any way in the recruitment for employment of (whether as an
employee, officer, director, agent, consultant or independent
contractor) any person who was or is an employee, representative,
officer or director of the CareFusion Group at any time within the
12 months prior to your Termination of Employment;
(iv) any action by you and/or your
representatives that either does or could reasonably be expected to
undermine, diminish or otherwise damage the relationship between
the CareFusion Group and any of its customers, potential customers,
vendors and/or suppliers that were known to you; and
(v) breaching any provision of any
employment or severance agreement with a member of the CareFusion
Group; and
(b) For so long as you are an
employee of the CareFusion Group (as defined below) and for one
(1) year following the termination of your full-time
employment by CareFusion or one of its affiliates regardless of the
reason, in addition to the events set forth in your Cardinal Health
RSU Agreement, “Competitor Triggering Conduct” shall
include accepting employment with, or serving as a consultant or
advisor or in any other capacity to, an entity that is in
competition with the business conducted by any member of the
CareFusion Group (a “CareFusion Competitor”),
including, but not limited to, employment or another business
relationship with any CareFusion Competitor if you have been
introduced to trade secrets, confidential information or business
sensitive information during your employment with the CareFusion
Group and such information would aid the CareFusion Competitor
because the threat of disclosure of such information is so great
that, for purposes of these obligations, it must be assumed that
such disclosure would occur.
For purposes of these obligations,
“CareFusion Group” means CareFusion Corporation and any
subsidiary or other entity that is directly or indirectly
controlled by CareFusion Corporation or any entity in which
CareFusion Corporation has a significant ownership interest as
determined by the administrator of the Cardinal Health, Inc. 2005
Long-Term Incentive Plan, as amended and restated effective as of
November 5, 2008.
RSUs
(U.S. C ARE F USION E MPLOYEES )
2. Special Forfeiture/Repayment
Rules . You shall remain subject to the terms set forth in the
“Special Forfeiture/Repayment Rules” provision of your
Cardinal Health RSU Agreement(s), subject to the following
adjustments:
(a) All references to
“Cardinal Competitor” that appear therein shall also
refer to “CareFusion Competitor” (as defined in
Section 1 of this Appendix A );
(b) All references to the
“Cardinal Group” that appear therein shall also refer
to the “CareFusion Group” (as defined in Section 1
of this Appendix A ); and
(c) With respect to calculating the
length of the Look-Back Period in the event that you engage only in
Competitor Triggering Conduct as described in Section 1(b) of
this Appendix A , the Look-Back Period shall be shortened to
exclude any period more than one (1) year prior to the
effective time of the Spin-Off, but include any period between the
effective time of the Spin-Off and engagement in Competitor
Triggering Conduct.
RSUs
(U.S. C ARE F USION E MPLOYEES )
Appendix B
CAREFUSION
CORPORATION
RESTRICTED SHARE UNITS TERMS AND
CONDITIONS
These Restricted Share Units Terms
and Conditions (the “Terms”) adjust and restate the
terms that apply to the Cardinal Health RSUs (as defined below) for
purposes of applying such terms to the restricted share units (the
“CareFusion RSUs”) granted to Awardee by CareFusion
Corporation (the “Company”) under the CareFusion
Corporation 2009 Long-Term Incentive Plan (the “Plan”)
as a result of the separation of the clinical and medical products
businesses of Cardinal Health, Inc. (“Cardinal Health”)
by means of a spin-off of at least 80.1% of the outstanding common
stock of the Company to Cardinal Health’s shareholders,
effective on August 31, 2009 (the “Spin-Off”).
These Terms, together with the RSU Terms (as defined below) and the
Plan, shall govern the CareFusion RSUs. The CareFusion RSUs are
Replacement Awards under the Plan.
The “Number of Shares”
that are covered by the CareFusion RSUs constitute the RSU terms
(the “RSU Terms”) and can be found on the website of
the Company’s third-party equity plan administrator. The
extent to which the CareFusion RSUs shall vest on and after
specific dates (the “Vesting Date(s)”), subject in each
case to the provisions of these Terms, including those relating to
Awardee’s continued employment with the Company and its
Affiliates (collectively, the “CareFusion Group”), is
the same as set forth in Awardee’s award agreement (the
“Cardinal Health RSU Agreement”) for the restricted
share units granted to Awardee by Cardinal Health or one of its
Affiliates (the “Cardinal Health RSUs”) on the grant
date specified in the Cardinal Health RSU Agreement (the
“Pre-Spin Grant Date”).
Capitalized terms used in these
Terms which are not specifically defined herein will have the
meanings ascribed to such terms in the Plan.
1. Transferability . The
CareFusion RSUs shall not be transferable.
2. Termination of Employment
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(a) General . Except as set
forth below, if a Termination of Employment occurs prior to the
vesting of the CareFusion RSUs, such CareFusion RSUs shall be
forfeited by Awardee.
(b) Death and Disability . If
a Termination of Employment occurs prior to the vesting in full of
the CareFusion RSUs by reason of Awardee’s death or
Disability, but at least six (6) months from the Pre-Spin
Grant Date, then any unvested CareFusion RSUs shall immediately
vest in full and shall not be forfeited.
(c) Retirement . If a
Termination of Employment occurs prior to the vesting in full of
the CareFusion RSUs by reason of Awardee’s Retirement
, but at least six (6) months from the Pre-Spin Grant
Date, then a Ratable Portion of each installment of the CareFusion
RSUs that would have vested on each future Vesting Date shall
immediately vest and not be forfeited. Such Ratable Portion shall,
with respect to the applicable installment, be an amount equal to
such installment of the CareFusion RSUs scheduled to vest on the
applicable Vesting Date multiplied by a fraction, the numerator of
which shall be the number of days from the Pre-Spin Grant Date
through the date of such termination, and the denominator of which
shall be the number of days
RSUs
(U.S. C ARE F USION E MPLOYEES )
from the Pre-Spin Grant Date through
such Vesting Date. For purposes of these Terms and this Award under
the Plan, “Retirement” shall refer to Age 55
Retirement, which means Termination of Employment (other than by
reason of death or Disability and other than in the event of
Termination for Cause) by an Employee of the CareFusion Group
(i) after attaining age fifty-five (55) and
(ii) having at least ten (10) years of continuous service
with the CareFusion Group, Cardinal Health and its Affiliates, or
such other Affiliates prior to the time that such Affiliate became
an Affiliate of the Company or Cardinal Health. For purposes of the
age and/or service requirement, the Administrator may, in its
discretion, credit a Participant with additional age and/or years
of service.
3. Triggering Conduct/Competitor
Triggering Conduct .
(a) As used in these Terms,
“Triggering Conduct” shall include the
following:
(i) for so long as Awardee is an
employee of the CareFusion Group and for three (3) years
following Termination of Employment, regardless of the
reason,
(A) other than in the performance of
duties assigned by the CareFusion Group, disclosing or using in any
capacity any confidential information, trade secrets or other
business sensitive information or material concerning the
CareFusion Group;
(B) a violation of policies of the
CareFusion Group, including, but not limited to, conduct which
would constitute a breach of any certificate of compliance or
similar attestation/certification signed by Awardee;
(C) directly or indirectly
employing, contacting concerning employment, or participating in
any way in the recruitment for employment of (whether as an
employee, officer, director, agent, consultant or independent
contractor) any person who was or is an employee, representative,
officer or director of the CareFusion Group at any time
w