AMENDMENT NUMBER 1 TO THE CERNER ASSOCIATE EMPLOYMENT AGREEMENT
Exhibit 10 (c)
AMENDMENT NUMBER 1 TO THE
CERNER ASSOCIATE EMPLOYMENT AGREEMENT
CERNER ASSOCIATE EMPLOYMENT AGREEMENT
This AMENDMENT NUMBER 1 TO THE CERNER ASSOCIATE EMPLOYMENT AGREEMENT, by and between CERNER
CORPORATION (“Cerner”) and X.X. Xxxxxxx, III (“you”), is effective November 1, 2008.
Cerner and you entered into an employment agreement dated August 13th, 1999 (the
“Employment Agreement”) and, in order for the Employment Agreement to be compliant with the new
deferred compensation rules under Internal Revenue Code Section 409A, both parties desire to amend
the Employment Agreement as follows:
1. The following sentence shall be added as the last sentence in Section 2.C.
For purposes of this entire agreement, any reference to “terminates your employment,”
“terminated your employment” or words of similar effect shall have the same meaning as a
“separation from service” under Internal Revenue Code (the “Code”) section
409A(a)(2)(A)(i) and are to be interpreted in a manner consistent with such section and
applicable Treasury regulations issued thereunder.
2. The fifth and sixth sentences in Section 2.D. are replaced in their entirety
as set forth below and a new sentence is added to Section 2.D., immediately after
the new sixth sentence, as set forth below. All other sentences within Section 2.D
remain in tact and unchanged.
You also understand and agree that, at Cerner’s sole discretion and option, and with
respect to all severance amounts you are eligible to receive that are less than the limit
provided in United States Treasury Regulation Section 1.409A-1(b)(9)(iii) (which limit is
currently $460,000 and is indexed each year) (the “Separation Pay Limit”), Cerner may
elect to pay such severance amounts, or any part thereof, in a lump sum payment as opposed
to making such payment on Cerner’s regular paydays. Any such lump sum payment shall have
no effect upon your obligations to comply with your non-competition obligations under
Paragraph 7. Any severance amounts you are eligible to receive that equals or exceeds the
Separation Pay Limit will be paid in a lump sum as soon as practicable within 90 days of
the date Cerner terminates your employment; provided, however, if you are a “specified
employee” (as defined in Code section 409A(a)(2)(B)(i)), such excess amount shall be paid
on the first day of the seventh month following the date Cerner terminates your
employment.
3. In all other respects your Employment Agreement shall remain in effect and is hereby
confirmed by the parties.
CERNER CORPORATION |
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/s/ Xxxxx X. Xxxxxx | ||||
Xxxxx X. Xxxxxx, Xx. Vice President & Chief People Officer | ||||
/s/ X.X. Xxxxxxx, III | ||||
X.X. Xxxxxxx, III | ||||