CARDINAL HEALTH INC
EX-10.09
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<TYPE>EX-10.09
<SEQUENCE>10
<FILENAME>l21691aexv10w09.htm
<DESCRIPTION>EX-10.09
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10.09
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CARDINAL HEALTH, INC.</B>
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<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>Policy Regarding Shareholder Approval of Severance Agreements</U>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><U>Overview</U>:</FONT> Effective August&nbsp;3, 2006, the Board of Directors of Cardinal Health,
Inc. (&#147;Cardinal Health&#148;) adopts this policy requiring that Cardinal Health obtain shareholder
approval before entering into Severance Agreements with Covered Executives that provide Severance
Benefits that exceed 2.99 times Base Salary and Bonus as defined and set forth below. If the Board
of Directors determines that it is not practical to obtain shareholder approval in advance, the
Board may seek shareholder approval after entering into such a Severance Agreement.
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><FONT style="font-variant: SMALL-CAPS"><U>Effective date</U>:</FONT> August&nbsp;3, 2006
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><U>Covered Executives</U>:</FONT> Officers of Cardinal Health as defined under Section&nbsp;16 of
the Securities Exchange Act of 1934, as amended, at the time a Severance Agreement covered by this
Policy is approved.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><U>Severance Agreements</U>: </FONT>Severance Agreements include any agreement that specifies
the compensation payable to a Covered Executive when Cardinal Health terminates employment without
cause or when employment is terminated following a change of control of Cardinal Health. Severance
Agreements include agreements entered into with Covered Executives (a)&nbsp;after the effective date of
the Policy or (b)&nbsp;before the effective date of the Policy, if Severance Benefits are materially
modified after the effective date of the Policy.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><U>Base Salary and Bonus Defined</U>:</FONT> For purposes of the limit on Severance Benefits:
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Base salary is the annual rate of base salary in effect at termination.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bonus is the target incentive amount for the year of termination under the annual and
long-term cash incentive compensation plans applicable to the Covered Executive.</TD>
</TR>

</TABLE>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><U>Severance Benefits</U>: </FONT>For purposes of this Policy, &#147;Severance Benefits&#148; generally
include:
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cash severance benefits.</TD>
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<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The value of other special benefits or perquisites provided for periods after
termination of employment (but excluding special benefits provided under any program
generally applicable to employees).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Additional retirement benefits earned or vested under qualified and non-qualified
retirement plans as a result of termination.</TD>
</TR>

</TABLE>
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<P align="center" style="font-size: 10pt">&nbsp;
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The value of any special additional benefit or additional service period &#147;credit&#148; under
retirement programs.</TD>
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</TABLE>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><U>Items Excluded as Severance Benefits</U>: </FONT>For purposes of this Policy, &#147;Severance
Benefits&#148; do <U>not</U> include any benefit or payment required by law and:
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amounts earned or accrued for services prior to termination (such as pro rata bonus,
unused vacation pay, etc.).</TD>
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<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The value of any other benefits provided under programs generally applicable to
employees.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The value of &#147;gross-up&#148; payments made in connection with Severance Benefits, including
&#147;gross-up&#148; payments under Section&nbsp;Code 280G of the Internal Revenue Code.</TD>
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<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The value of accelerated vesting of outstanding equity compensation awards, or other
changes in terms of outstanding equity compensation awards.</TD>
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<P align="center" style="font-size: 10pt">&nbsp;
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