Document:

Addus HealthCare, Inc. Vice President and Regional Director Bonus Plan

 Exhibit 10.10 
 

 
 Home Health and Home Care Division 
 Vice President and Regional Director Bonus Plan 
 The bonus plan described below applies to all
Home Health and Home Care Division Vice Presidents and Regional Directors. 
 Company Financial Performance 
 To establish shared accountability and ownership for the Company’s financial performance, the Home Health and Home Care Division Vice Presidents’ and Regional
Directors’ bonus earnings will be directly impacted by the Company’s performance against its budgeted annual operating income target. The VP’s/RD’s bonus percentage earned, based on his/her performance in the areas defined below,
will be adjusted by up to 10%, up or down (i.e., multiplied by .90 or 1.10), based on the Company’s actual performance to budget. For example, if the VP’s/RD’s bonus percentage earned is 90% and the Company achieves 95% of its
budgeted annual operating income, the adjusted bonus percentage earned would be 85.5% (.90 x .95 = .855). Conversely, if the VP’s/RD’s bonus percentage earned is 90% and the Company achieves 105% of its budgeted annual operating income,
the adjusted bonus percentage earned would be 94.5% (.90 x 1.05 = .945). 
  

			
	 Percent of
Total Bonus
	 	 Bonus Plan Component & Criteria

	60%	 	BUDGETED INCOME – Achievement at the following actual annual operating income levels earns the corresponding percentage of the award for this bonus plan
component:
		
		 	 •        100% of budgeted operating income earns 100% of
award
  
 •        96-99% of budgeted operating income earns 75% of award
  
 •        91-95% of budgeted operating income earns 50% of award
  
 •        Income
below 91% of budgeted operating income does not qualify for an award

		
		 	President’s Circle
		
		 	As additional incentive for exemplary performance above budgeted levels, managers may earn an additional one percent of base salary for each one percent of operating income achieved over the
budgeted level, capped at 100% (or double) the Agency/Branch Director’s total bonus available of 20% (i.e., at 40% of base salary). Therefore, if actual operating income exceeds budget by 120% or more, the maximum bonus of 40% of base salary
will be earned. If actual operating income levels are achieved between 101% and 119% of budget, bonuses between 21% and 39% of base salary will be earned. To qualify for this award, the branch must meet or exceed budget in revenue and operating
income, and the Agency/Branch Director must have been employed before March 1st
of that fiscal year.
		
	40%	 	SPECIFIC CENSUS GROWTH OBJECTIVES AND DIVISION/REGION OBJECTIVES
		
		 	Each Division, Region and Branch will be required to meet specific objectives as set forth in the Annual Plan. Bonus awards for this component will be based solely on the Company’s
determination of the degree to which these specific objectives are achieved.

 This plan becomes effective in fiscal year 2009. This plan remains in force for all future years until changed.
This plan voids all previous bonus/award plans. Awards are prorated for managers becoming employed during the fiscal year. Award calculations are based on collected revenues as determined by the Company’s outside auditors. Awards are
distributed no more than 30 days after completion of the Company’s audited financial statements as determined by the Company. The Manager agrees that bonuses are not salary or wages, and are provided only to Managers employed with Addus
HealthCare in good standing on the day awards are distributed. This plan may be altered or modified at any time by the Company upon notice to the employee. 
 (HH & HC Division RD & VP Bonus Plan - rev.2/09)Addus HealthCare, Inc. Vice President and Department Director Bonus Plan

 Exhibit 10.11 
 

 
 Support Center 
 Vice President and Department Director Bonus Plan 
 The bonus plan described below applies to all Support Center Vice
Presidents and Department Directors. This plan becomes effective in fiscal year 2008. This plan remains in force for all future years until changed. This plan voids all previous bonus/award plans. Awards are prorated for managers becoming employed
during the fiscal year. Award calculations are based on collected revenues as determined by the Company's outside auditors. Awards are distributed no more than 30 days after completion of the Company’s audited financial statements as determined
by the Company. The manager agrees that bonus is not salary or wages. Bonus is provided only to managers employed with Addus HealthCare in good standing on the day awards are distributed. This plan may be altered or modified at any time by the
Company upon notice to the employee. 
 Company Financial Performance 
 To establish shared accountability and ownership for the Company’s financial performance, the Support Center Vice Presidents’ and Department Directors’ bonus earnings will be directly impacted by the
Company’s performance against its budgeted annual operating income target. The VP’s/DD’s bonus percentage earned, based on his/her performance in the areas defined below, will be adjusted by up to 10%, up or down (i.e., multiplied by
..90 or 1.10), based on the Company’s actual performance to budget. For example, if the VP’s/DD’s bonus percentage earned is 90% and the Company achieves 95% of its budgeted annual operating income, the adjusted bonus percentage earned
would be 85.5% (.90 x .95 = .855). Conversely, if the VP’s/DD’s bonus percentage earned is 90% and the Company achieves 105% of its budgeted annual operating income, the adjusted bonus percentage earned would be 94.5% (.90 x 1.05 = .945).

 Bonus Plan Objectives 
 The annual
objectives that will be the basis for the bonus plan for each Support Center Vice President and Department Director will be developed each year by the Company’s senior management team through a collaborative process, and will reflect key
initiatives for the Company, as well as areas targeted by the department. Each of these objectives will be assigned an appropriate weight by the Chief Financial Officer, Vice President of Human Resources or the Chief Operating Officer in
consultation with the Department Director. 
 (Support Center VP & DD Bonus Plan - rev.12/07)Addus Holding Corporation 2006 Stock Incentive Plan

 Exhibit 10.12 
 ADDUS HOLDING CORPORATION 2006 STOCK INCENTIVE PLAN 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
	ARTICLE I BACKGROUND AND PURPOSE	  	1
		
	ARTICLE II DEFINITIONS	  	1
			
	 Section 2.1.
	 	Affiliate	  	1
			
	 Section 2.2.
	 	Beneficial Owner or Beneficial Ownership	  	1
			
	 Section 2.3.
	 	Board	  	1
			
	 Section 2.4.
	 	Change Effective Date	  	1
			
	 Section 2.5.
	 	Change in Control	  	1
			
	 Section 2.6.
	 	Code	  	2
			
	 Section 2.7.
	 	Committee	  	2
			
	 Section 2.8.
	 	Company	  	2
			
	 Section 2.9.
	 	Director	  	2
			
	 Section 2.10.
	 	Eligible Employee	  	2
			
	 Section 2.11.
	 	Fair Market Value	  	2
			
	 Section 2.12.
	 	1933 Act	  	3
			
	 Section 2.13.
	 	1934 Act	  	3
			
	 Section 2.14.
	 	Option	  	3
			
	 Section 2.15.
	 	Option Certificate	  	3
			
	 Section 2.16.
	 	Option Price	  	3
			
	 Section 2.17.
	 	Parent	  	3
			
	 Section 2.18.
	 	Permitted Transferee	  	3
			
	 Section 2.19.
	 	Person	  	3
			
	 Section 2.20.
	 	Plan	  	3
			
	 Section 2.21.
	 	Public Offering	  	3
			
	 Section 2.22.
	 	Rule 16b-3	  	4
			
	 Section 2.23.
	 	Stock	  	4
			
	 Section 2.24.
	 	Subsidiary 	  	4
			
	 Section 2.25.
	 	Voting Securities	  	4
		
	 ARTICLE III STOCK
	  	4
			
	 Section 3.1.
	 	Shares Reserved	  	4
			
	 Section 3.2.
	 	Source of Shares	  	4
			
	 Section 3.3.
	 	Use of Proceeds	  	4

					
	ARTICLE IV EFFECTIVE DATE	  	4
		
	ARTICLE V COMMITTEE	  	4
		
	ARTICLE VI ELIGIBILITY	  	5
		
	ARTICLE VII OPTIONS	  	5
			
	 Section 7.1.
	 	Committee Action	  	5
			
	 Section 7.2.
	 	Option Price	  	5
			
	 Section 7.3.
	 	Payment	  	5
			
	 Section 7.4.
	 	Exercise	  	5
		
	ARTICLE VIII NON-TRANSFERABILITY	  	6
		
	ARTICLE IX SECURITIES COMPLIANCE	  	6
			
	 Section 9.1.
	 	Stock Held for Investment	  	6
			
	 Section 9.2.
	 	Cooperation	  	6
		
	ARTICLE X LIFE OF PLAN	  	7
		
	ARTICLE XI ADJUSTMENT	  	7
			
	 Section 11.1.
	 	Capital Structure	  	7
			
	 Section 11.2.
	 	Corporate Transactions	  	7
			
	 Section 11.3.
	 	Fractional Shares of Stock	  	7
		
	ARTICLE XII CHANGE IN CONTROL	  	7
			
	 Section 12.1.
	 	Change in Control	  	7
			
	 Section 12.2.
	 	Amount of Cashout Payment	  	8
		
	ARTICLE XIII AMENDMENT OR TERMINATION	  	8
		
	ARTICLE XIV MISCELLANEOUS	  	8
			
	 Section 14.1.
	 	Governing Law; Limitations on Liability	  	8
			
	 Section 14.2.
	 	Compliance with Code	  	9
			
	 Section 14.3.
	 	Parachute Payments	  	9
			
	 Section 14.4.
	 	Stockholder Rights	  	10
			
	 Section 14.5.
	 	No Contract of Employment	  	10
			
	 Section 14.6.
	 	Withholding	  	10

					
	 Section 14.7.
	 	Construction	  	10
			
	 Section 14.8.
	 	Other Conditions	  	10
			
	 Section 14.9.
	 	Rule 16b-3	  	11
			
	 Section 14.10.
	 	Coordination with Employment Agreements and Other Agreements	  	11

 ARTICLE I 
 BACKGROUND AND PURPOSE 
 The purpose of this Plan is to promote the interest and long-term
success of the Company by authorizing the Committee to grant Options to Eligible Employees and Directors in order (1) to attract and retain Eligible Employees and Directors, (2) to provide an additional incentive to each Eligible Employee
or Director to work to increase the value of the Stock and (3) to provide each Eligible Employee or Director with a stake in the future of the Company which corresponds to the stake of each of the Company’s stockholders. This Plan is
intended to satisfy the requirements for a “plan” described in Rule 701 promulgated under the 1933 Act, and the Company intends that this Plan be interpreted in accordance with that intent. 
 ARTICLE II 
 DEFINITIONS 

 Section 2.1. Affiliate — means any organization (other than a Subsidiary) that would be treated as under common control with
the Company under § 414(c) of the Code if “50 percent” were substituted for “80 percent” in the income tax regulations under § 414(c) of the Code. 
 Section 2.2. Beneficial Owner or Beneficial Ownership — has the meaning ascribed to such term in Rule 13d-3 of the General Rules and
Regulations under the 1934 Act. 
 Section 2.3. Board — means the Board of Directors of the Company. 
 Section 2.4. Change Effective Date — means the date which includes the “closing” of the transaction which makes a Change in
Control effective. 
 Section 2.5. Change in Control — means that any of the following events has occurred with respect to the
Company, and the effective date of the Change of Control shall be as of the first day that any one or more of the following events shall have been fully and unconditionally effected: 
  

	 	(1)	Any Person, other than (A) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or an Affiliate; (B) a corporation owned directly
or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of this Company; or (C) W. Andrew Wright or a Permitted Transferee, becomes the Beneficial Owner, directly or indirectly, of
securities of the Company representing more than 50% of the total voting power represented by the Company’s Voting Securities; 

  

	 	(2)	 After the date this Plan becomes effective, the Company consummates a merger or consolidation of the Company with any other corporation, other than a merger or
consolidation, 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 50% of the total
voting power represented by the Voting Securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; 

  

	 	(3)	The Company consummates a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of (in one transaction or a series of transactions)
all or substantially all of the Company’s assets; or 

  

	 	(4)	Any other condition or event (i) that the Committee determines to be a “Change of Control” within the meaning of this Section 2.5 and (ii) that is set forth
as a supplement to this Section 2.5 in the Option Agreement. 

  

	 	(5)	Notwithstanding the foregoing, a “Change in Control” shall not include any acquisition of securities or voting power directly from the Company through a Public Offering.

 Section 2.6. Code — means the Internal Revenue Code of 1986, as amended. 
 Section 2.7. Committee — means a committee of the Board, each member of which shall be appointed by and shall serve at the pleasure of the
Board or if no such Committee is appointed, the Board as a whole. 
 Section 2.8. Company — means Addus Holding Corporation and
any successor to Addus Holding Corporation. 
 Section 2.9. Director — means any member of the Board. 
 Section 2.10. Eligible Employee — means an employee, consultant or independent contractor of the Company or any Affiliate to whom the
Committee decides for reasons sufficient to the Committee to make a grant under this Plan. 
 Section 2.11. Fair Market Value —
means, on any given date, the current fair market value of a share of Stock, as determined pursuant to (1) or (2) below as applicable: 
  

	 	(1)	if the Stock is not publicly traded, the price that the Committee acting in good faith determines through any reasonable valuation method which satisfies the requirements of
Section 409A of the Code for which a share of Stock might change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of the relevant facts, or

  

	 	(2)	 if the Stock is publicly traded, the closing price on any date for a share of Stock as reported by The Wall Street Journal or, if The Wall Street Journal
 

  

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does not report such closing price, such closing price as reported by a newspaper or trade journal selected by the Committee or, if no such closing price is
available on such date, such closing price as so reported for the immediately preceding business day on which the Stock is traded. 

 Section 2.12. 1933 Act — means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated thereunder. 
 Section 2.13. 1934 Act — means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations
promulgated thereunder. 
 Section 2.14. Option — means an option that is granted under Section 7. 
 Section 2.15. Option Certificate — means the certificate (whether in electronic or written form), in substantially the form attached hereto
as Exhibit A, which sets forth the terms and conditions of an Option granted under this Plan. 
 Section 2.16. Option Price
— means the price which shall be paid to purchase one share of Stock upon the exercise of an Option granted under this Plan. 
 Section
2.17. Parent — means any corporation that is a parent corporation (within the meaning of § 424(e) of the Code) of the Company. 
 Section 2.18. Permitted Transferee — means, with respect to W. Andrew Wright III (and each Permitted Transferee of W. Andrew Wright III), (i) a spouse, sibling or any lineal descendant (including adopted children) of W.
Andrew Wright III, (ii) any trust solely for the benefit of W. Andrew Wright III and/or his spouse or lineal descendants (including adopted children), (iii) a charitable foundation under the control of W. Andrew Wright III, (iv) a
family trust, partnership or limited liability company under the control of W. Andrew Wright III or established solely for his benefit and/or that of his spouse or lineal descendants (including adopted children) or for estate planning purposes
provided such family trust, partnership or limited liability company remains under the control of W. Andrew Wright III, or (v) the estate of W. Andrew Wright III. 
 Section 2.19. Person — means any natural person and any, company, government or political subdivision, agency or instrumentality of a government; provided, that if two or more Persons act as a
partnership, limited partnership, joint venture, syndicate or other group for the purpose of acquiring, holding or disposing of securities of the Company, such partnership, limited partnership, joint venture, syndicate or group shall be deemed to be
a single Person for purposes of this Plan. 
 Section 2.20. Plan — means this Addus Holding Corporation 2006 Stock Incentive
Plan as effective as of the date described in Article IV and as amended, restated or otherwise supplemented from time to time thereafter. 
 Section 2.21. Public Offering — means the sale, in an underwritten public offering registered under the 1933 Act, of Stock, or of any other security of the Company which is substituted for Stock under Section 11.

  

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 Section 2.22. Rule 16b-3 — means the exemption under Rule 16b-3 to Section 16(b) of the
1934 Act, or any successor to such rule. 
 Section 2.23. Stock — means the common stock of the Company, par value $0.001 per
share. 
 Section 2.24. Subsidiary — means a corporation that is a subsidiary corporation (within the meaning of § 424(f)
of the Code) of the Company. 
 Section 2.25. Voting Securities — means the Company’s then outstanding securities which
vote generally in the election of Directors. 
 ARTICLE III 
 STOCK 
 Section 3.1. Shares Reserved. There shall (subject to
Article 11) be reserved for issuance under this Plan 83,272 shares of Stock, which shall be the maximum number of shares issued under the Plan and the maximum number of options which may be granted under the Plan to any individual in any calendar
year. 
 Section 3.2. Source of Shares. The shares of Stock described in Section 3.1 shall be reserved to the extent that the
Company deems appropriate from authorized but unissued shares of Stock and from shares of Stock which have been reacquired by the Company. All shares of Stock described in Section 3.1 shall remain available for issuance under this Plan until
issued pursuant to the exercise of an Option, and any such shares of Stock which are issued pursuant to an Option and which are forfeited thereafter shall again become available for issuance under this Plan. 
 Section 3.3. Use of Proceeds. The proceeds which the Company receives from the exercise of any Option under this Plan shall be used for general
corporate purposes and shall be added to the general funds of the Company. 
 ARTICLE IV 
 EFFECTIVE DATE 
 The effective
date of this Plan shall be the date of its adoption by the Board contingent on approval by the stockholders of the Company. Any Option granted before such stockholder approval automatically shall be granted subject to such approval. 
 ARTICLE V 
 COMMITTEE 

 This Plan shall be administered by the Committee. The Committee acting in its absolute discretion shall exercise such powers and take such
action as expressly called for under this Plan and, further, the Committee shall have the power to interpret this Plan and (subject to Section 11, Section 12 and Section 13 of this Plan and Rule 16b-3) to take such other action in the
administration and operation of this Plan as the Committee deems equitable under the circumstances, which action shall be binding on the Company, on each affected Eligible 

  

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Employee or Director and on each other Person directly or indirectly affected by such action. Furthermore, the Committee as a condition to making any grant
under this Plan to any Eligible Employee or Director shall have the right to require him or her to execute a counterpart signature page to the Stockholders’ Agreement, dated as of September 19, 2006, among Addus Holding Corporation, the
Investors (as defined therein) and the Management Stockholders (as defined therein) (as amended from time-to-time, the “Stockholders’ Agreement”) and/or an agreement which makes the Eligible Employee or Director subject to
non-competition provisions and other restrictive covenants which run in favor of the Company. 
 ARTICLE VI 
 ELIGIBILITY 
 All Eligible
Employees and Directors shall be eligible for the grant of Options under this Plan. 
 ARTICLE VII 
 OPTIONS 
 Section 7.1.
Committee Action. The Committee acting in its absolute discretion shall have the right to grant Options to Eligible Employees and to Directors under this Plan from time to time to purchase Stock, but the Committee shall not, absent the
approval of a majority of the Company’s stockholders, take any action, whether through amendment, cancellation, replacement grants, or any other means, to reduce the Option Price of any outstanding Options. Each grant of an Option to an
Eligible Employee or Director shall be evidenced by an Option Certificate, and each Option Certificate shall set forth the terms and conditions of such grant as the Committee acting in its absolute discretion deems consistent with the terms of this
Plan. 
 Section 7.2. Option Price. The Option Price for each share of Stock subject to an Option may be greater than or equal to the
Fair Market Value of a share of Stock on the date an Option is granted. 
 Section 7.3. Payment. The Option Price for the portion of
the Option being exercised shall be payable in full upon the exercise of any Option and, at the discretion of the Committee, an Option Certificate can provide for the payment of the Option Price either in cash, by check, or through any cashless
exercise procedure which is acceptable to the Committee, or in any combination of such forms of payment. 
 Section 7.4. Exercise.

  

	 	(a)	Exercise Period. Each Option granted under this Plan shall be exercisable in whole or in part at such time or times as set forth in the related Option Certificate.

  

	 	(b)	Termination of Status as Eligible Employee or Director. Subject to Section 7.5(a), an Option Certificate may provide for the exercise of an Option after an Eligible
Employee’s or a Director’s status as such has terminated for any reason whatsoever, including death or disability. 

  

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	 	(c)	Restrictions Imposed on Shares. As a condition precedent to the Company’s obligation to issue the shares upon exercise by an Eligible Employee of the Option, the
Eligible Employee shall have agreed to be bound by and to comply with the provisions of the Stockholders’ Agreement applicable to Management Stockholders, to the extent then in effect. The shares, upon their issuance, shall be deemed Management
Stockholder Shares (as defined in the Stockholders’ Agreement) for all purposes under the Stockholders’ Agreement, to the extent then in effect. 

 ARTICLE VIII 
 NON-TRANSFERABILITY 
 No Option shall (absent the Committee’s consent) be transferable by an Eligible Employee or a Director other than by will or by the laws of descent
and distribution, and any Option shall (absent the Committee’s consent) be exercisable during a Eligible Employee’s or Director’s lifetime only by such Eligible Employee or Director or his or her legal representative in the event of
his or her incapacity. The Person or Persons to whom an Option is transferred by will or by the laws of descent and distribution (or with the Committee’s consent) thereafter shall be treated as the Eligible Employee or Director. 
 ARTICLE IX 
 SECURITIES COMPLIANCE

 Section 9.1. Stock Held for Investment. As a condition to the receipt of Stock under this Plan, the Eligible Employee or
Director shall, if so requested by the Company, agree to hold such Stock for investment and not with a view of resale or distribution to the public and, if so requested by the Company, shall deliver to the Company a written statement satisfactory to
the Company to that effect. Furthermore, the Eligible Employee or Director shall make a written representation to the Company that he or she will not sell or offer for sale any of such Stock unless a registration statement shall be in effect with
respect to such Stock under the 1933 Act and any applicable state securities law or he or she shall have furnished to the Company an opinion in form and substance satisfactory to the Company of legal counsel satisfactory to the Company that such
registration is not required. Certificates or other evidence of ownership representing the shares of Stock transferred upon the exercise of an Option may at the discretion of the Company bear a legend to the effect that such shares of Stock have not
been registered under the 1933 Act or any applicable state securities law and that such shares of Stock cannot be sold or offered for sale in the absence of an effective registration statement as to such shares of Stock under the 1933 Act and any
applicable state securities law or an opinion in form and substance satisfactory to the Company of legal counsel satisfactory to the Company that such registration is not required. 
 Section 9.2. Cooperation. All shares of Stock delivered to any Eligible Employee or Director under this Plan shall be delivered subject to the
condition that such Person (or such Person’s successor in interest) cooperate to the extent reasonably necessary and customary for stockholders in like circumstances to effect a Public Offering if a majority of the Board approves a Public
Offering, and if any such Person (or such Person’s successor in interest) fails to do so, the Company shall have the right to cancel the shares of Stock held by such Person 
  

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(or such Person’s successor in interest) in exchange for a payment to such Person (or such Person’s successor in interest) equal to the then Fair
Market Value of such Stock, or, if less, the price paid for such Stock. 
 ARTICLE X 
 LIFE OF PLAN 
 No Option shall
be granted under this Plan on or after the earlier of the tenth anniversary of the effective date of this Plan (as determined under Article IV) or a Change of Control, in which event this Plan otherwise thereafter shall continue in effect until all
outstanding Options have been exercised in full or no longer are exercisable. 
 ARTICLE XI 
 ADJUSTMENT 
 Section 11.1.
Capital Structure. The number, kind or class (or any combination thereof) of shares of Stock reserved under Section 3.1, the grant caps described in Section 3.1, the number, kind or class (or any combination thereof) of shares of
Stock subject to Options and the Option Price of such shares of Stock shall be adjusted by the Committee in an equitable manner to preserve immediately after any corporate transaction, equity restructuring or change in the capitalization of the
Company, including, but not limited to, mergers, spin offs or stock splits, the aggregate intrinsic value of each such outstanding Option immediately before such corporate transaction, equity restructuring or change in the capitalization of the
Company. 
 Section 11.2. Corporate Transactions. Subject to Section 11.1, the Committee shall have the authority to make any
Option grants to effect the assumption of, or the substitution for, options previously made by any other corporation or entity to the extent that such substitution or assumption of such options is required pursuant to a corporate transaction
involving such other corporation or entity. 
 Section 11.3. Fractional Shares of Stock. If any adjustment under this Article XI
would create a fractional share of Stock or a right to acquire a fractional share of Stock under any Option such fractional share of Stock shall be disregarded and the number of shares of Stock reserved under this Plan and the number subject to any
Options shall be rounded to the closest whole number or the Fair Market Value of the fractional share shall be paid to the individual in cash, as determined by the Committee. An adjustment made under this Article XI by the Committee shall be
conclusive and binding on all affected Persons. 
 ARTICLE XII 
 CHANGE IN CONTROL 
 Section 12.1. Change in Control. 

 

	 	(a)	If there is a Change in Control, then as of the Change Effective Date for such Change in Control, any and all conditions to the exercise of all outstanding Options on such date
automatically shall be deemed 100% satisfied as of such Change Effective Date. 

  

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	 	(b)	If there is a Change in Control, then the Board shall have the discretion either (i) to cancel such Options after providing each Eligible Employee and Director a reasonable
period (which period shall not be more than 7 calendar days) to elect to exercise his or her Options as of the Change Effective Date or (ii) in the event of a Change in Control under the terms of which the stockholders of the Company will
receive a cash payment for each share of Stock surrendered in such Change in Control, to provide that all outstanding Options shall terminate as of the Change Effective Date and that each holder of an Option shall receive a cash payment in exchange
for the cancellation of the Option. 

 Section 12.2. Amount of Cashout Payment. If the Board provides for a cash
payment to holders of unexercised Options pursuant to Section 12.1(b)(ii), then with respect to each share of Stock subject to the unexercised Option, such cash payment shall equal the amount, if any, by which the payment for each share of
Stock surrendered in the Change in Control exceeds the Option Price for such share of Stock (subject to adjustments as determined by the Board in good faith). 
 ARTICLE XIII 
 AMENDMENT OR TERMINATION 
 This Plan may be amended by the Board from time to time to the extent that the Board deems necessary or appropriate; provided, however,
that (a) no amendment shall be made absent the approval of a majority of the stockholders of the Company to the extent such approval is required under applicable law or the rules of the exchange on which shares of Stock are listed and
(b) no amendment shall be made to Article XII on or after the date of any Change in Control which might adversely affect any rights which otherwise would vest on the related Change Effective Date. The Board also may suspend granting Options
under this Plan at any time and may terminate this Plan at any time; provided, however, that the Board shall not have the right unilaterally to modify, amend or cancel any Option made before such suspension or termination unless
(1) the Eligible Employee or Director consents in writing to such modification, amendment or cancellation; provided that such consent is not required for the adjustment or cancellation of an Option pursuant to the provisions of Article XI or
XII, or for an amendment or modification of an Option to the extent deemed necessary to comply with any applicable law, the listing requirements of any principal securities exchange or market on which the Shares are then traded, or to preserve
favorable accounting treatment of any Award for the Company; or (2) there is a dissolution or liquidation of the Company or a transaction described in Section 11.2 or Article XII. 
 ARTICLE XIV 
 MISCELLANEOUS 
 Section 14.1. Governing Law; Limitations on Liability. This Plan and the Option shall be governed by the laws of the State of Delaware without
reference to conflict of law principles. IN NO EVENT SHALL THE COMPANY BE LIABLE FOR ANY INDIRECT DAMAGES, INCLUDING WITHOUT LIMITATION, LOST PROFITS OR LOST OPPORTUNITY, OR ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL OR EXEMPLARY DAMAGES,
INCLUDING LEGAL FEES. 
  

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 Section 14.2. Compliance with Code. The Company intends that this Plan meet the requirements of
Section 409A of the Code and the regulations and other guidance issued thereunder (the “Requirements”) and be operated in accordance with such Requirements so that benefits under this Plan shall not be included in income under
Section 409A of the Code. Any ambiguities in this Plan shall be construed to effect the intent as described in this Section 14.2. If any provision of this Plan is found to be in violation of the Requirements, then such provision shall be
deemed to be modified or restricted to the extent and in the manner necessary to render such provision in conformity with the Requirements, or shall be deemed excised from this Plan, and this Plan shall be construed and enforced to the maximum
extent permitted by the Requirements as if such provision had been originally incorporated in this Plan as so modified or restricted, or as if such provision had not been originally incorporated in this Plan, as the case may be. 
 Section 14.3. Parachute Payments 
  

	 	(a)	 Notwithstanding any other provision of this Plan or of any other agreement, contract, or understanding heretofore or hereafter entered into by an Eligible Employee
or Director with the Company or any Affiliate (an “Other Agreement”) except an agreement, contract, or understanding entered into on or about the effective date hereof or hereafter entered into that expressly modifies or excludes
application of this paragraph, and notwithstanding any formal or informal plan or other arrangement for the direct or indirect provision of compensation to the Eligible Employee or Director (including groups or classes of participants or
beneficiaries of which the Eligible Employee or Director is a member), whether or not such compensation is deferred, is in cash, or is in the form of a benefit to or for the Eligible Employee or Director (a “Benefit Arrangement”),
if the Eligible Employee or Director is a “disqualified individual,” as defined in Section 280G(c) of the Code, any Options held by such Eligible Employee or Director and any right to receive any payment or other benefit under this
Plan shall not become exercisable or vested (or, to the extent that all outstanding Options are cancelled as a part of a transaction which constitutes a “change in the ownership or effective control” of the Company or a “change
in the ownership of a substantial portion of the assets” of the Company (each as described in Section 280G of the Code), shall be forfeited as of the effective date of such transaction): (1) to the extent that such right to exercise,
vesting, payment, or benefit, taking into account all other rights, payments, or benefits to or for the Eligible Employee or Director under this Plan, all Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the
Eligible Employee or Director under this Plan to be considered a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (a “Parachute Payment”) and (2) if, after paying the excise tax imposed by
Section 4999 of the Code, the aggregate after-tax amounts received by the Eligible Employee or Director under this Plan, all Other Agreements, and 

  

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all Benefit Arrangements would be less than the maximum after-tax amount that could be received by the Eligible Employee or Director without causing any such
payment or benefit to be considered a Parachute Payment. 

  

	 	(b)	Section 14.3(a) shall not apply if (1) the Eligible Employee or Director waives his right to any vesting, payment or benefit under one or more Other Agreements or Benefit
Arrangements and (2) as a result of such waiver, the Eligible Employee or Director, taking into account all rights, payments, or benefits to or for the Eligible Employee or Director remains entitled under this Plan, all Other Agreements, and
all Benefit Arrangements, is not entitled to a Parachute Payment. 

 Section 14.4. Stockholder Rights. No Eligible
Employee or Director shall have any rights as a stockholder of the Company as a result of the grant of an Option pending the actual issuance of the shares of Stock subject to such Option to such Eligible Employee or Director. 
 Section 14.5. No Contract of Employment. The grant of an Option to an Eligible Employee or Director under this Plan shall not constitute a
contract of employment or a right to serve on the Board and shall not confer on an Eligible Employee or Director any rights upon his or her termination of employment or service in addition to those rights, if any, expressly set forth in this Plan or
the related Option Certificate. 
 Section 14.6. Withholding. Each Option shall be made subject to the condition that the Eligible
Employee or Director consents to whatever action the Committee directs to satisfy the federal and state tax withholding requirements, if any, which the Company determines are applicable to the exercise of such Option issued in the name of the
Eligible Employee or Director; provided that no withholding shall be effected under this Plan which exceeds the minimum statutory federal and state withholding requirements to the extent deemed necessary by the Committee to avoid adverse accounting
consequences to the Company. 
 Section 14.7. Construction. All references to sections are to sections of this Plan unless otherwise
indicated. Each term set forth in Article II shall, unless otherwise stated, have the meaning set forth opposite such term for purposes of this Plan and, for purposes of such definitions, the singular shall include the plural and the plural shall
include the singular. Unless otherwise specifically provided in an Option Certificate, if there is any conflict between the terms of this Plan and the terms of any Option Certificate, the terms of this Plan shall control. 
 Section 14.8. Other Conditions. Each Option Certificate may require that an Eligible Employee or a Director (as a condition to the exercise of an
Option) enter into any agreement, including any agreement (which may be the Stockholders’ Agreement) or make such representations prepared by the Company, including (without limitation) any agreement which restricts the transfer of Stock
acquired pursuant to the exercise of an Option or provides for the repurchase of such Stock by the Company. 
  

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 Section 14.9. Rule 16b-3. The Committee shall have the right to amend any Option to withhold or
otherwise restrict the transfer of any shares of Stock or cash under this Plan to an Eligible Employee or Director as the Committee deems appropriate in order to satisfy any condition or requirement under Rule 16b-3 to the extent Rule 16 of the 1934
Act might be applicable to such grant or transfer. 
 Section 14.10. Coordination with Employment Agreements and Other Agreements. If
the Company enters into an employment agreement or other agreement with an Eligible Employee or Director which expressly provides for the acceleration in vesting of an outstanding Option or for the extension of the deadline to exercise any rights
under an outstanding Option, any such acceleration or extension shall (to the extent such acceleration or extension is consistent with Section 14.2) be deemed effected pursuant to, and in accordance with, the terms of such outstanding Option
and this Plan even if such employment agreement or other agreement is first effective after the date the outstanding Option was granted. 
 IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute this Plan to evidence its adoption of this Plan. 
  

			
	 ADDUS HOLDING CORPORATION

		
	By:	 	 /s/ Mark L. First

	Name:	 	Mark L. First
	Title:	 	President
		
	Date	 	 9/19/06

  

 -11-

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