Form of Performance Restricted Stock Unit Agreement



 EXHIBIT 10.24 
 FORM OF PERFORMANCE RESTRICTED STOCK UNIT AGREEMENT 
  

			
	 PARTICIPANT:
	  	
		
	 GRANT DATE:
	  	
		
	TARGET NUMBER OF PERFORMANCE RESTRICTED STOCK UNITS:	  	 Performance Period I:
  

Performance Period II:
  

Total:

		
	 MAXIMUM NUMBER OF PERFORMANCE RESTRICTED STOCK UNITS GRANTED:
	  	 Performance Period I:
  

Performance Period II:
  

Total:

		
	 AWARD AND VESTING CRITERIA:
	  	The actual number of Performance Restricted Stock Units to be awarded to Participant and that may vest will be determined in accordance with conditions specified
below.
		
	 PERFORMANCE PERIOD I:
	  	January 1, 2012 to December 31, 2013
		
	 PERFORMANCE PERIOD II:
	  	January 1, 2012 to December 31, 2014

 THIS AGREEMENT, effective as of the Grant Date set forth above, is between The Providence Service
Corporation, a Delaware corporation (the “Company”, “we”, “our” or “us”), and the Participant named above (“you” or “yours”), pursuant to the provisions of the Company’s 2006 Long Term
Incentive Plan, as amended (the “Plan”) with respect to the grant of the maximum number of performance restricted stock units (“PRSUs”) specified above. Capitalized terms used and not defined in this Performance Restricted Stock
Unit Award Agreement (this “Agreement”) shall have the meanings given to them in the Plan. References to the Company also include its subsidiaries. 
 By accepting this Agreement, you irrevocably agree, on your own behalf and on behalf of your heirs and any other person claiming rights under this Agreement, to all of the terms and conditions of the
PRSUs as set forth in or pursuant to this Agreement and the Plan (as such may be amended from time to time). You and the Company agree as follows: 
  

			
	 1.      Application of Plan; Administration
	  	This Agreement and your rights under this Agreement are subject to all the terms and conditions of the Plan, as it may be amended from time to time, as well as to such rules and
regulations as the Administrator may adopt. It is expressly understood that the Administrator that administers the Plan is authorized to administer, construe and make all determinations necessary or appropriate to the administration of the Plan and
this Agreement, all of which shall be binding upon you to the extent permitted by the Plan.
		
	 2.      Performance Goal
	  	 (a)    The number of PRSUs to be awarded to you under this Agreement shall depend upon the extent to which
the Performance Metric equals, exceeds or falls short of the Performance Targets for Performance Period I and Performance Period II (collectively, Performance Period I and Performance Period II are referred to as “Performance
Period”,










			
		  	 and individually sometimes referred to as a “Performance Period”). If the actual Performance Metric does not equal or exceed the minimum
Performance Target for a Performance Period, the right to receive an award of any PRSUs pursuant to this Agreement for such Performance Period shall expire without consideration.

		
		  	 (b)    The Performance Metric for each Performance Period is a return on equity (the quotient resulting
from dividing the audited consolidated net income by the average stockholders’ equity for the Performance Period) (“ROE”) as established by the Administrator for the Performance Period.

		
		  	 (c)    Subject to the foregoing, and provided that you have remained in
Employment with the Company from the Grant Date set forth above until the end of the respective Performance Period, the number of PRSUs to be awarded to you following completion of a Performance Period (such PRSUs, the “Awarded PRSUs”)
shall be determined in accordance with the following Performance Targets:
  
 •    50% of the maximum number of PRSUs if the Company achieves an ROE equal to or greater than 14%; or

 
 •    100% of the
maximum number of PRSUs if the Company achieves an ROE equal to or greater than 18%.

		
		  	 In the event that the Company’s Performance Metric for a Performance Period falls between the two Performance Targets listed
above, the number of Awarded PRSUs shall be determined by linear interpolation, with rounding down.
  
 Upon determining the number of Awarded PRSUs for a Performance Period, the Administrator will determine the amount of cash payment you are entitled to receive pursuant to the terms of this Agreement for
such Performance Period, subject to the vesting described in Section 5 of this Agreement. Such cash payment will be equal to the number of Awarded PRSUs multiplied by the fair market value of a share of the Company’s Common Stock on the
Settlement Date (as defined below) (“Awarded Cash Payment”). “Fair market value” on the Settlement Date means the closing sales price of a share of the Company’s Common Stock as reported on the Nasdaq Global Select Market on
such date.

		
		  	Notwithstanding anything herein to the contrary, in no event shall more than              PRSUs be awarded
under this Agreement.
		
		  	With respect to Performance Period I, on March 1, 2014, or as soon as practicable thereafter as the Administrator is provided with and reviews the Company’s audited
financial statements, but in no event later than March 15, 2014, the Administrator will: (a) determine in its sole discretion (i) the Performance Metric achieved by the


  
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		  	Company for the Performance Period, (ii) the number of PRSUs to be awarded as Awarded PRSUs and (iii) the Awarded Cash Payment amount, and (b) evidence such determinations by a
written certification in accordance with Section 162(m) of the Code. With respect to Performance Period II, on March 1, 2015, or as soon as practicable thereafter as the Administrator is provided with and reviews the Company’s audited financial
statements, but in no event later than March 15, 2015, the Administrator will: (a) determine in its sole discretion (i) the Performance Metric achieved by the Company for the Performance Period, (ii) the number of PRSUs to be awarded as Awarded
PRSUs and (iii) the Awarded Cash Payment amount, and (b) evidence such determinations by a written certification in accordance with Section 162(m) of the Code. The date during each period that the Administrator completes the actions described in
this subparagraph will be referred to herein as the “Settlement Date” for the respective Performance Period.
		
	 3.      Vesting
	  	With respect to Performance Period I, the Awarded Cash Payment will vest on December 31, 2013 and with respect to Performance Period II, the Awarded Cash Payment will vest on
December 31, 2014 (each such date, a “Vesting Date”), provided that you remain in Employment with the Company from the Grant Date set forth above until the respective Vesting Date (each portion of the Awarded Cash Payment that becomes
vested will be referred to herein as a “Vested Performance Award”).
		
	 4.      Termination of Employment
	  	Your right to any award of PRSUs that have not become a Vested Performance Award will be forfeited without consideration as of the date of termination of your Employment with the
Company for any reason, including death.
		
	 5.      Settlement of Awarded PRSUs/Awarded Cash Payment
	  	 (a) Awarded PRSUs (which become a Vested Performance Award) will be settled in cash.

 
 (b) The cash payment with respect to a Vesting Date of the Awarded Cash Payment shall
be made on the respective Settlement Date, and in no event, shall payment be made later than March 15,, 2014, with respect to Performance Period I, or March 15, 2015, with respect to Performance Period II.
  

(c) Notwithstanding any provision contained herein, in the event of the occurrence of a Change in Control (“Triggering Event” ) the following
shall occur:
  

•    at any time prior to or on December 31, 2013, then the Participant shall be
entitled to receive a cash payment equal to the maximum number of PRSUs for Performance Period I and Performance Period II multiplied by the fair market value of a share of the Company’s Common Stock on the date of the Triggering Event,
or

		
		  	 •    at any time after December 31, 2013 but prior to or on December 31, 2014, then the
Participant shall be entitled to receive a cash payment equal to (i) the maximum



  
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		  	 number of PRSUs for Performance Period II multiplied by the fair market value of a share of the Company’s
Common Stock on the date of the Triggering Event plus (ii) any amount owed as an Awarded Cash Payment for Performance Period I which was not yet paid, unless in the case of clause (ii) such Awarded Cash Payment cannot be determined at the time of
the Triggering Event in which case the Participant shall be entitled to receive a cash payment equal to the maximum number of PRSUs for Performance Period I multiplied by the fair market value of a share of the Company’s Common Stock on the
date of the Triggering Event, or
  

•    at any time on or after January 1, 2015, then the Participant shall be
entitled to receive a cash payment equal to the Awarded Cash Payment for Performance Period II unless such Awarded Cash Payment cannot be determined at the time of the Triggering Event in which case the Participant shall be entitled to a cash
payment equal to the maximum number of PRSUs for Performance Period II multiplied by the fair market value of a share of the Company’s Common Stock on the date of the Triggering Event,

 
 the resulting cash payment shall be paid to the Participant within ten (10) days of
such Triggering Event, provided that (1) the Participant has no right to designate the taxable year of payment; and (2) if the payment of the resulting cash payment, either alone or together with other payments or benefits, either cash or non-cash,
that the Participant has the right to receive from the Company, including, but not limited to, accelerated vesting or payment of any deferred compensation, options, stock appreciation rights or any benefits payable to Participant under any plan for
the benefit of employees, which would constitute an “excess parachute payment” (as defined in Section 280G of the Code), then such resulting cash payment shall be reduced to the largest amount that will not result in receipt by Participant
of a parachute payment to the extent that other reductions are insufficient or other reductions are not made as determined by the Administrator.

		
	 6.      Rights as Stockholder
	  	Except as otherwise provided in this Agreement, you will not be entitled to any privileges of ownership of the shares of Common Stock underlying your PRSUs, including voting,
receipt of dividends or any other rights as a stockholder of the Company.
		
	 7.      Transferability
	  	Except as provided in Section 9(k) hereof, your right to receive PRSUs under this Agreement, your Awarded PRSUs, your Awarded Cash Payment and any Vested Performance Award that
you hold pursuant to this Agreement are not transferable, whether voluntarily or involuntarily, by operation of law or otherwise, other than by will or the laws of descent and distribution with respect to the
unpaid


  
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		  	Vested Performance Award. Any voluntary or involuntary assignment, pledge, transfer, or other disposition of, or any attachment, execution, garnishment, or lien issued against or
placed upon your right to receive PRSUs under this Agreement, your Awarded PRSUs, your Awarded Cash Payment and any Vested Performance Award that you hold pursuant to this Agreement in violation of the terms of this Agreement shall be void.
Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a third party who, in the event of your death, will thereafter be entitled to receive any Awarded Cash Payment or
other cash payment you may be entitled to pursuant to this Agreement.
		
	 8.      Taxes
	  	 (a)    General. You are ultimately liable and responsible for all taxes owed by you in connection
with your PRSUs, Awarded PRSUs and Awarded Cash Payment regardless of any action the Company takes with respect to any tax obligations that arise in connection with the PRSUs, Awarded PRSUs and Awarded Cash Payment. The Company makes no
representation or undertaking regarding the tax treatment applicable to the grant, award, vesting or settlement of the PRSUs, the Awarded PRSUs, Awarded Cash Payment or the Vested Performance Award.

		
		  	 (b)    Withholding. On or before any Vesting Date, the date your Vested Performance Award is
settled and cash is paid to you pursuant to the terms of Section 5, and any other date upon which tax withholding obligations of the Company may arise, or at any time thereafter as requested by the Company, you hereby authorize withholding from, at
the Company’s election, payroll and any other amounts payable to you and you otherwise agree to make adequate provision for, as determined by the Company, any sums required to satisfy the Federal, state, local and foreign tax withholding
obligations of the Company or an Affiliate, if any, which arise in connection with any of the above events or otherwise. Unless the tax withholding obligations of the Company or any Affiliate are satisfied, the Company will have no obligation to
make the cash payment.

		
	 9.      Miscellaneous
	  	 (a)    YOU ACKNOWLEDGE AND AGREE THAT THE VESTING OF ANY AWARDED CASH PAYMENT PURSUANT TO SECTION 3 HEREOF
IS EARNED ONLY BY YOUR CONTINUED EMPLOYMENT WITH THE COMPANY OR ANY OF ITS SUBSIDIARIES (AND NOT THROUGH THE ACT OF BEING HIRED OR ACQUIRING GRANTED PRSUS HEREUNDER). YOU FURTHER ACKNOWLEDGE AND AGREE THAT THIS AGREEMENT, THE TRANSACTIONS
CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS



  
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		  	 AN EMPLOYEE OF THE COMPANY OR ANY OF ITS SUBSIDIARIES FOR THE VESTING PERIOD, FOR THE PERFORMANCE PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT
INTERFERE WITH YOUR RIGHT OR THE COMPANY’S OR ANY OF ITS SUBSIDIARY’S RIGHT TO TERMINATE YOUR RELATIONSHIP AS AN EMPLOYEE.

		
		  	 (b)    Your PRSUs, any Awarded PRSUs and any Awarded Cash Payment are unfunded and as a holder of Vested
Performance Award you will be considered an unsecured creditor of the Company with respect to the Company’s obligation, if any, to issue cash pursuant to this Agreement. Nothing contained in this Agreement, and no action taken pursuant to its
provisions, will create or be construed to create a trust of any kind or a fiduciary relationship between you and the Company or any other person.

		
		  	 (c)    This Agreement will be subject to all applicable laws, rules, and regulations, and to such
approvals by any governmental agencies or stock exchanges as may be required.

		
		  	 (d)    Section 409A means Section 409A of the Code, Treasury Regulations and other guidance promulgated
thereunder, as each may be amended from time to time. The benefits provided under this Agreement are intended to be subject to a “substantial risk of forfeiture” under Section 409A, and to qualify for the “short term deferral
exemption” from application of Section 409A as payable only within the permitted period following lapse of the applicable forfeiture conditions, and any ambiguities contained herein shall be interpreted in a manner so as to comply with the
requirements of such exemption. Notwithstanding anything in the Plan or this Agreement to the contrary, the Administrator may, without your consent, amend this Agreement to comply with all of the requirements of Section 409A and any corresponding
guidance and regulations issued under Section 409A to the extent it is determined, in the sole discretion of the Administrator, that such amendment is necessary to comply with the requirements of Section 409A.

		
		  	 (e)    The interpretation, performance and enforcement of this Agreement will be governed by the law of
the state of Delaware without regard to such state’s conflicts of laws rules.

		
		  	 (f)     Any question concerning the interpretation of this Agreement or the Plan, any adjustments
required to be made under the Plan and any controversy that may arise under the Plan or this Agreement shall be determined by the Administrator (including any person(s) to whom the Administrator has delegated its authority) in its sole discretion.
Such decision by the Administrator shall be final and binding.



  
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		  	 (g)    This Agreement and the Plan represent the entire agreement between the parties with respect to the
PRSUs. In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Agreement, the terms and conditions of the Plan shall prevail.

		
		  	 (h)    If all or any part of this Agreement or the Plan is declared by any court or governmental authority
to be unlawful or invalid, such unlawfulness or invalidity will not invalidate any portion of this Agreement or the Plan not declared to be unlawful or invalid. Any Section of this Agreement (or part of such a Section) so declared to be unlawful or
invalid will, if possible, be construed in a manner which will give effect to the terms of such Section or part of such Section to the fullest extent possible while remaining lawful and valid.

		
		  	 (i)     Either party’s failure to enforce any provision of this Agreement shall not in any way
be construed as a waiver of any such provision, nor prevent that party from thereafter enforcing any other provision of this Agreement. The rights granted both parties hereunder are cumulative and shall not constitute a waiver of either party’s
right to assert any other legal remedy available to it.

		
		  	 (j)     This Agreement may be amended only by a writing executed by you and the Company which
specifically states that it is amending this Agreement. Notwithstanding the foregoing and subject to Section 7 of the Plan, this Agreement may be amended solely by the Administrator by a writing which specifically states that it is amending this
Agreement, so long as a copy of such amendment is delivered to you. Without limiting the foregoing, the Administrator reserves the right to change, by written notice to you, the provisions of this Agreement in any way it may deem necessary or
advisable to carry out the purpose of the grant as a result of any change in applicable laws or regulations or any future law, regulation, ruling or judicial decision, provided that any such change will be applicable only to rights relating to that
portion of the granted PRSUs, the Awarded PRSUs, the Awarded Cash Payment, the Vested Performance Award which are then subject to restrictions as provided herein.

		
		  	 (k)    The rights and obligations of the Company under this Agreement will be transferable by the Company
to any one or more persons or entities, and all covenants and agreements hereunder will inure to the benefit of, and be enforceable by the Company’s successors and assigns. You may not assign, transfer or pledge the granted PRSUs, the Awarded
PRSUs, the Awarded Cash Payment, the Vested Performance Award or any right or interest therein or thereunder to anyone other than by will or the laws of descent and distribution except with the prior written consent of the Company. The Company may
cancel your rights hereunder if you attempt to assign or transfer them in a manner inconsistent with this Agreement.



  
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		  	 (l)     All notices with respect to this Agreement shall be in writing and shall be hand delivered or
sent by first class mail or reputable overnight delivery service, expenses prepaid. Notice may also be given by electronic mail or facsimile and shall be effective on the date transmitted if confirmed within 24 hours thereafter by a signed original
sent in a manner provided in the preceding sentence. Notices to the Company or the Administrator shall be delivered or sent, if by mail to the Company’s headquarters, 64 East Broadway Blvd., Tucson, Arizona 85701, Attn: Fletcher McCusker, or if
by email: Fmccusker@provcorp.com. Notices to the Participant shall be sufficient if delivered or sent to such person’s address as it appears in the regular records of the Company or such person’s email account with the
Company.

		
		  	 (m)   The headings of the Sections in this Agreement are inserted for convenience only and will not be deemed
to constitute a part of this Agreement or to affect the meaning of this Agreement.

		
		  	 (n)    You agree upon request to execute any further documents or instruments necessary or desirable in
the sole determination of the Company to carry out the purposes or intent of this Agreement.


 By the signatures below, you and the authorized representative of the Company acknowledge your agreement
to this Performance Restricted Stock Unit Award Agreement as of the Grant Date specified above. 
  

							
	  
	  		  	Date:	 	  

	Name:	  		  		 	
				
	Accepted by:	  		  		 	

  

			
	 THE PROVIDENCE SERVICE CORPORATION

		
	By:	 	  


  

			
	Name:	 	Fletcher J. McCusker
	Title:	 	Chief Executive Officer


  
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