Change Healthcare Inc.
EX-10.3
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<TYPE>EX-10.3
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<DESCRIPTION>EX-10.3
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			Exhibit 103
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			<font style="display: inline;font-family:Century Gothic;font-weight:bold;font-size:11.5pt;">Change Healthcare Inc.</font>
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			<font style="display: inline;font-family:Century Gothic;font-weight:bold;font-size:11.5pt;">424 Church Street, Suite 1400</font>
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			<font style="display: inline;font-family:Century Gothic;font-weight:bold;font-size:11.5pt;">Nashville, Tennessee 37219</font>
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			<font style="display: inline;font-family:Century Gothic;font-size:11.5pt;">June </font><font style="display: inline;font-family:Century Gothic;font-size:11.5pt;">24</font><font style="display: inline;font-family:Century Gothic;font-size:11.5pt;">, 2022</font>
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			<font style="display: inline;font-family:Century Gothic;">Change Healthcare </font><font style="display: inline;font-family:Century Gothic;">Performance </font><font style="display: inline;font-family:Century Gothic;">Stock </font><font style="display: inline;font-family:Century Gothic;">Unit</font><font style="display: inline;font-family:Century Gothic;"> Participant,</font>
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			<font style="display: inline;font-family:Century Gothic;">The Compensation Committee of the Board of Directors (the &#x201C;</font><font style="display: inline;font-family:Century Gothic;text-decoration:underline;">Compensation Committee</font><font style="display: inline;font-family:Century Gothic;">&#x201D;) of Change Healthcare Inc. (the &#x201C;</font><font style="display: inline;font-family:Century Gothic;text-decoration:underline;">Company</font><font style="display: inline;font-family:Century Gothic;">&#x201D;) made a decision to modify the vesting terms of the Performance S</font><font style="display: inline;font-family:Century Gothic;">tock</font><font style="display: inline;font-family:Century Gothic;"> Units (PSUs) you were granted in 2019 under the 2019 Omnibus Incentive Plan.</font><font style="display: inline;font-family:Century Gothic;"> The Performance S</font><font style="display: inline;font-family:Century Gothic;">tock</font><font style="display: inline;font-family:Century Gothic;"> Units granted in 2019 </font><font style="display: inline;font-family:Century Gothic;">become earned based on achievement of </font><font style="display: inline;font-family:Century Gothic;">company performance</font><font style="display: inline;font-family:Century Gothic;"> conditions</font><font style="display: inline;font-family:Century Gothic;"> for </font><font style="display: inline;font-family:Century Gothic;">FY2020 through FY2022.</font>
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			<font style="display: inline;font-family:Century Gothic;">The following information summarizes the changes made by the Compensation Committee to the</font><font style="display: inline;font-family:Century Gothic;">&nbsp;</font><font style="display: inline;font-family:Century Gothic;">PSUs granted in 2019:</font>
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			<font style="display: inline;font-family:Century Gothic;font-weight:bold;text-decoration:underline;">Performance Stock Units (PSUs)</font>
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			<font style="display: inline;font-family:Century Gothic;">As you know, the PSUs granted in 2019 are subject to the Performance Conditions </font><font style="display: inline;font-family:Century Gothic;">set forth</font><font style="display: inline;font-family:Century Gothic;">&nbsp;</font><font style="display: inline;font-family:Century Gothic;">in the PSU Grant Notice for the award. The complete Performance Conditions are available for your review in your E*TRADE Stock Plan Account. </font>
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			<font style="display: inline;font-family:Century Gothic;">The Performance Conditions for the PSUs include the two PSU </font><font style="display: inline;font-family:Century Gothic;">performance conditions,</font><font style="display: inline;font-family:Century Gothic;">&nbsp;</font><font style="display: inline;font-family:Century Gothic;">below:</font>
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		<div style="width:100%"><table style="width:100%; table-layout: fixed;" cellpadding="0" cellspacing="0"><tr><td style="width:36pt;"><p style="width:36pt;font-size:0pt;"></p></td><td valign="top" align="left" style="width: 18.00pt;">
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			<font style="display: inline;font-family:Century Gothic;color:#000000;">60% of Total PSUs granted </font><font style="display: inline;font-family:Century Gothic;color:#000000;">(</font><font style="display: inline;font-family:Century Gothic;color:#000000;">Tranche </font><font style="display: inline;font-family:Century Gothic;color:#000000;">I</font><font style="display: inline;font-family:Century Gothic;color:#000000;">) were</font><font style="display: inline;font-family:Century Gothic;color:#000000;"> based on CAGR (Revenue)</font></p></td></tr></table></div>
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			<font style="display: inline;font-family:Century Gothic;color:#000000;">40% of Total PSUs granted </font><font style="display: inline;font-family:Century Gothic;color:#000000;">(</font><font style="display: inline;font-family:Century Gothic;color:#000000;">Tranche II</font><font style="display: inline;font-family:Century Gothic;color:#000000;">) were</font><font style="display: inline;font-family:Century Gothic;color:#000000;"> based on CAGR (Adjusted EBITDA)</font></p></td></tr></table></div>
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			<font style="display: inline;font-family:Century Gothic;color:#000000;">The original vesting schedule for the PSUs</font><font style="display: inline;font-family:Century Gothic;color:#000000;">&nbsp;</font><font style="display: inline;font-family:Century Gothic;color:#000000;">provides that</font><font style="display: inline;font-family:Century Gothic;color:#000000;"> they will become earned (&#x201C;Earned PSUs&#x201D;) based on achievement of the Performance Conditions with respect to the Performance Period, in each case, as set forth below:</font>
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			<font style="display: inline;font-family:Century Gothic;color:#000000;;font-size: 11pt;font-family:Calibri;text-indent:0pt;margin-left:0pt;padding:0pt 36pt 0pt 0pt;"></font><font style="display: inline;font-family:Century Gothic;color:#000000;"></font><font style="display: inline;font-family:Century Gothic;font-style:italic;color:#000000;">Performance Period: April 1, 2019 to March 31, 2022</font>
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			<font style="display: inline;font-family:Century Gothic;font-style:italic;color:#000000;;font-size: 11pt;font-family:Calibri;text-indent:0pt;margin-left:0pt;padding:0pt 36pt 0pt 0pt;"></font><font style="display: inline;font-family:Century Gothic;font-style:italic;color:#000000;">Performance Condition: </font>
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			<font style="display: inline;font-family:Century Gothic;color:#000000;">The Number of PSUs in each </font><font style="display: inline;font-family:Century Gothic;color:#000000;">of the </font><font style="display: inline;font-family:Century Gothic;color:#000000;">performance conditions</font><font style="display: inline;font-family:Century Gothic;color:#000000;"> &nbsp;t</font><font style="display: inline;font-family:Century Gothic;color:#000000;">hat become Earned PSUs shall be</font><font style="display: inline;font-family:Century Gothic;color:#000000;"> &nbsp;b</font><font style="display: inline;font-family:Century Gothic;color:#000000;">ased on the achievement of the Performance Conditions set forth in</font><font style="display: inline;font-family:Century Gothic;color:#000000;"> &nbsp;t</font><font style="display: inline;font-family:Century Gothic;color:#000000;">he PSU Grant Notice.</font>
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			<font style="display: inline;font-family:Century Gothic;color:#000000;">On June 1, 2022,</font><font style="display: inline;font-family:Century Gothic;color:#000000;">&nbsp;</font><font style="display: inline;font-family:Century Gothic;color:#000000;">t</font><font style="display: inline;font-family:Century Gothic;color:#000000;">he Compensation Committee certified </font><font style="display: inline;font-family:Century Gothic;color:#000000;">both </font><font style="display: inline;font-family:Century Gothic;color:#000000;">P</font><font style="display: inline;font-family:Century Gothic;color:#000000;">erformance </font><font style="display: inline;font-family:Century Gothic;color:#000000;">C</font><font style="display: inline;font-family:Century Gothic;color:#000000;">onditions at</font><font style="display: inline;font-family:Century Gothic;color:#000000;"> target</font><font style="display: inline;font-family:Century Gothic;color:#000000;"> performance</font><font style="display: inline;font-family:Century Gothic;color:#000000;">, resulting in 100% of the </font><font style="display: inline;font-family:Century Gothic;color:#000000;">Total </font><font style="display: inline;font-family:Century Gothic;color:#000000;">PSUs </font><font style="display: inline;font-family:Century Gothic;color:#000000;">granted </font><font style="display: inline;font-family:Century Gothic;color:#000000;">being </font><font style="display: inline;font-family:Century Gothic;color:#000000;">E</font><font style="display: inline;font-family:Century Gothic;color:#000000;">arned</font><font style="display: inline;font-family:Century Gothic;color:#000000;"> PSUs</font><font style="display: inline;font-family:Century Gothic;color:#000000;">. &nbsp;</font>
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			<font style="display: inline;font-family:Century Gothic;color:#000000;">In addition, the Compensation Committee </font><font style="display: inline;font-family:Century Gothic;color:#000000;">determined </font><font style="display: inline;font-family:Century Gothic;color:#000000;">that the Earned PSUs will become vested on the </font><font style="display: inline;font-family:Century Gothic;text-decoration:underline;color:#000000;">third</font><font style="display: inline;font-family:Century Gothic;color:#000000;"> anniversary of the Vesting Commencement Date</font><font style="display: inline;font-family:Century Gothic;color:#000000;">&nbsp;</font><font style="display: inline;font-family:Century Gothic;color:#000000;"> (the &#x201C;Vesting Date&#x201D;)</font><font style="display: inline;font-family:Century Gothic;color:#000000;">, rather than the fourth anniversary of the Vesting Commencement </font>
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		<p style="margin:0pt;line-height:100%;font-family:Calibri;;font-size: 11pt"><font style="display: inline;font-family:Century Gothic;">Date.&nbsp;&nbsp;This means that the Earned PSUs </font><font style="display: inline;font-family:Century Gothic;">will vest on</font><font style="display: inline;font-family:Century Gothic;"> July 2, 2022</font><font style="display: inline;font-family:Century Gothic;">, subject to your continued employment or service through such date (except as otherwise provided in the PSU Grant Notice with respect to a termination of employment or service prior to the Vesting Date)</font><font style="display: inline;font-family:Century Gothic;">.&nbsp; </font>
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			<font style="display: inline;font-family:Century Gothic;">If you have any questions, please reach out to the Equity team at Long-termincentive @changehealthcare.com.</font>
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			<font style="display: inline;font-family:Century Gothic;">Sincerely,</font>
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			<font style="display: inline;font-family:Century Gothic;">Change Healthcare, Inc.</font>
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			<font style="display: inline;font-family:Arial;">/s/ Neil de Crescenzo</font>
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			<font style="display: inline;font-family:Century Gothic;">Neil de Crescenzo</font>
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