Exhibit 10.2
IMS HEALTH INCORPORATED
EXECUTIVE ANNUAL INCENTIVE PLAN
As Amended and Restated December 16,
2008
1. Purpose of the Plan
The purpose of the Plan is to
advance the interests of the Company and its stockholders by
providing incentives in the form of periodic cash bonus awards to
certain management employees of the Company and its subsidiaries,
thereby motivating such employees to attain corporate performance
goals articulated under the Plan.
2. Definitions
The following capitalized terms used
in the Plan have the respective meanings set forth in this
Section:
(a) Act: The Securities
Exchange Act of 1934, as amended, or any successor
thereto.
(b) Award: A periodic cash
bonus award granted pursuant to the Plan.
(c) Beneficial Owner: As such
term is defined in Rule 13d-3 under the Act (or any successor
rule thereto).
(d) Board: The Board of
Directors of the Company.
(e) Change in Control: The
occurrence of any of the following events:
(i)
any Person (other than the Company,
any trustee or other fiduciary holding securities under an employee
benefit plan of the Company, or any company owned, directly or
indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company),
becomes the 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;
(ii)
during any period of twenty-four
months (not including any period prior to the Effective Date),
individuals who at the beginning of such period constitute the
Board, and any new director (other than (A) a director
nominated by a Person who has entered into an agreement with the
Company to effect a transaction described in Sections (2)(e)(i),
(iii) or (iv) of the Plan, (B) a director nominated by
any Person (including the
Company) who publicly announces an
intention to take or to consider taking actions (including, but not
limited to, an actual or threatened proxy contest) which if
consummated would constitute a Change in Control or (C) a
director nominated by any Person who is the Beneficial Owner,
directly or indirectly, of securities of the Company representing
10% or more of the combined voting power of the Company’s
securities) whose election by the Board or nomination for election
by the Company’s stockholders was approved in advance by a
vote of at least two-thirds (2/3) of the directors then still in
office who either were directors at the beginning of the period or
whose election or nomination for election was previously so
approved, cease for any reason to constitute at least a majority
thereof;
(iii)
the stockholders of the Company
approve any transaction or series of transactions under which the
Company is merged or consolidated with any other company, other
than a merger or consolidation (A) which would result in the
voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity)
more than 66 2/3% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation and (B) after
which no Person holds 20% or more of the combined voting power of
the then-outstanding securities of the Company or such surviving
entity; or
(iv)
the stockholders of the Company
approve a plan of complete liquidation of the Company or an
agreement for the sale or disposition by the Company of all or
substantially all of the Company’s assets.
(f) Code: The Internal Revenue
Code of 1986, as amended, or any successor thereto.
(g) Committee: The Human
Resources Committee of the Board.
(h) Company: IMS Health
Incorporated, a Delaware corporation.
(i) Covered Employee: As such
term is defined in Section 162(m) of the Code (or any
successor section thereto).
(j) Covered Participant: A
Participant who is, or who is anticipated to become, a Covered
Employee.
(k) Effective Date: The date on
which the Plan takes effect, as defined pursuant to Section 13
of the Plan.
(l) Participant: An employee of
the Company or any of its Subsidiaries who is selected by the
Committee to participate in the Plan pursuant to Section 4 of
the Plan.
(m) Performance Period: The
calendar year or any other period that the Committee, in its sole
discretion, may determine.
(n) Person: As such term is
used for purposes of Sections 13(d) or 14(d) of the Act
(or any successor sections thereto).
(o) Plan: The IMS Health
Incorporated Executive Annual Incentive Plan.
(p) Shares: Shares of common
stock, par value $0.01 per Share, of the Company.
(q) Subsidiary: A subsidiary
corporation, as defined in Section 424(f) of the Code (or
any successor section thereto).
3. Administration
The Plan shall be administered by
the Committee or such other persons designated by the Board.
The Committee may delegate its duties and powers in whole or in
part to any subcommittee thereof consisting solely of at least two
individuals who are each “non-employee directors”
within the meaning of Rule 16b-3 of the Act (or any successor
rule thereto) and “outside directors” within the
meaning of Section 162(m) of the Code (or any successor
section thereto). The Committee shall have the authority to
select the employees to be granted Awards under the Plan, to
determine the size and terms of an Award (subject to the
limitations imposed on Awards in Section 5 below), to modify
the terms of any Award that has been granted (except for any
modification that would increase the amount of the Award payable to
a Covered Participant), to determine the time when Awards will be
made and the Performance Period to which they relate, to establish
performance objectives in respect of such performance periods and
to certify that such performance objectives were attained;
provided, however, that any such action shall be consistent with
the applicable provisions of Section 162(m) of the
Code. The Committee is authorized to interpret the Plan, to
establish, amend and rescind any rules and regulations
relating to the Plan, and to make any other determinations that it
deems necessary or desirable for the administration of the
Plan. The Committee may correct any defect or supply any
omission or reconcile any inconsistency in the Plan in the manner
and to the extent the Committee deems necessary or desirable.
Any decision of the Committee in the interpretation and
administration of the Plan, as described herein, shall lie within
its sole and absolute discretion and shall be final, conclusive and
binding on all parties concerned. Determinations made by the
Committee under the Plan need not be uniform and may be made
selectively among Participants, whether or not such Participants
are similarly situated. The Committee shall have the right to
deduct from any payment made under the Plan any federal, state,
local or foreign income or other taxes required by law to be
withheld with respect to such payment. To the extent
consistent with the applicable provisions of
Section 162(m) of the Code, the Committee
may delegate to one or more employees of the
Company or any of its Subsidiaries the authority to take actions on
its behalf pursuant to the Plan.
4. Eligibility and
Participation
The Committee shall designate those
persons who shall be Participants for each Performance
Period. Participants shall be selected from among the
employees of the Company and any of its Subsidiaries who are in a
position to have a material impact on the results of the operations
of the Company or of one or more of its Subsidiaries. The
designation of Participants may be made individually or by groups
or classifications of employees, as the Committee deems
appropriate.
5. Awards
(a) Performance Goals. A
Participant’s Award shall be determined based on the
attainment of written performance goals approved by the Committee
for a Performance Period established by the Committee
(i) while the outcome for that Performance Period is
substantially uncertain and (ii) no more than 90 days after
the commencement of the Performance Period to which the performance
goal relates or, if less than 90 days, the number of days which is
equal to 25 percent of the relevant Performance Period. The
performance goals, which must be objective with respect to Covered
Participants, shall be based upon one or more of the following
criteria: (i) consolidated earnings before or after taxes
(including earnings before interest, taxes, depreciation and/or
amortization); (ii) net income; (iii) operating income;
(iv) earnings per Share; (v) book value per Share;
(vi) return on stockholders’ equity;
(vii)&nbs