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EXECUTIVE ANNUAL INCENTIVE PLAN

Executive Compensation Plan Agreement

EXECUTIVE ANNUAL INCENTIVE PLAN | Document Parties: IMS HEALTH INCORPORATED You are currently viewing:
This Executive Compensation Plan Agreement involves

IMS HEALTH INCORPORATED

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Title: EXECUTIVE ANNUAL INCENTIVE PLAN
Governing Law: New York     Date: 12/22/2008
Industry: Computer Services     Sector: Technology

EXECUTIVE ANNUAL INCENTIVE PLAN, Parties: ims health incorporated
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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


 
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