Document:

EX-4.1 2006 STOCK OPTION PLAN

 

EXHIBIT 4.1

2006 Stock Option Plan

Types of Grants and Eligibility

The 2006 Stock Option Plan is designed to provide incentives to employees (including key employees
such as officers and directors) of the Company and to consultants and directors who are not
employees of the Company and its subsidiary companies (the “Group”) and to offer an additional
inducement in obtaining the services of such individuals.

Shares Subject to the 2006 Stock Option Plan

The aggregate number of Shares for which options may be granted under the 2006 Stock Option Plan
may not exceed 1,000,000 shares, such Shares may consist either in whole or in part of authorized
but unissued Shares or Shares held in the treasury of the Company. Shares subject to an option
which expires, or for any reason is cancelled or is terminated, unexercised, or which ceases for
any reason to be exercisable may again become available for the granting of options under the 2006
Stock Option Plan.

Administration of the 2006 Stock Option Plan

The 2006 Stock Option Plan is administered by the Company’s Compensation Committee (the
“Committee”).

Subject to the express provisions of the 2006 Stock Option Plan, the Committee has the authority,
in its sole discretion, with respect to options, to determine, among other things: the key
employees, consultants and advisors who are to receive options; the times when they may receive
options; the number of Shares to be subject to each option; the term of each option; the date each
option is to become exercisable; whether an option is to be exercisable in whole, in part or in
installments, and, if in installments, the number of Shares to be subject to each installment;
whether the installments are to be cumulative; the date each installment is to become exercisable
and the term of each installment; whether to accelerate the date of exercise of any installment;
whether Shares may be issued on exercise of an option as partly paid, and, if so, the dates when
future installments of the exercise price are to become due and the amounts of such installments;
the exercise price of each option; the form of payment of the exercise price; whether to restrict
the sale or other disposition of the Shares acquired upon the exercise of an option and to waive
any such restriction; and whether to subject the exercise of all or any portion of an option to the
fulfillment of contingencies as specified in an applicable stock option contract. With respect to
all options, the Committee has such discretion to determine the amount, if any, necessary to
satisfy the Company’s obligation to withhold taxes; with the consent of the optionee, to cancel or
modify an option, provides such option as modified would be permitted to be granted on such date
under the terms of the 2006 Stock Option Plan; to prescribe, amend and rescind rules and
regulations relating to the 2006 Stock Option Plan; and to make all other determinations necessary
or advisable for administering the 2006 Stock Option Plan. The Board of Directors also has the
authority described above with respect to the granting of director options.

Exercise Price

The exercise price of the Shares under each option is to be determined by the Committee at the time
of the grant. The exercise price of the Shares is to be equal to the fair market value of the
Shares subject to such option on the date of grant.

Term

The term of each option granted pursuant to the 2006 Stock Option Plan is established by the
Committee, in its sole discretion, at or before the time such option is granted. Subject to early
termination, the option of each non-employee director is exercisable for a term of ten years from
the date of grant.

Exercise

An option (or any part or installment thereof), to the extent then exercisable, is to be exercised
by giving written notice to the Company at its principal office. Payment in full of the aggregate
exercise price may be made (a) in cash or by certified check, or (b) if the applicable stock option
contract at the time of grant so permits, with the authorization of the Committee, with previously
acquired Shares having an aggregate fair market value, on the date of exercise, equal to the
aggregate exercise price of all options being exercised, or (c) with any combination of cash,
certified check or Shares.

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The Committee may, in its discretion, permit payment of the exercise price of an option by delivery
by the optionee of a properly executed exercise notice, together with a copy of his irrevocable
instructions to a broker acceptable to the Committee to deliver promptly to the Company the amount
of sale or loan proceeds sufficient to pay such exercise price.

Termination of Relationship

Any employee holder of an option whose employment or relationship with the Company (and its parent
and subsidiaries) has terminated for any reason other than his death or disability may exercise
such option, to the extent exercisable on the date of such termination, at any time within three
months after the date of termination, but not thereafter and in no event after the date the option
would otherwise have expired; provided, however, that if his employment is terminated either (a)
for cause, or (b) without the consent of the Company, said option terminates immediately. Options
granted to employees under the 2006 Stock Option Plan are not affected by any change in the status
of the holder so long as he or she continues to be a full-time employee of the Company, its parent
or any of its subsidiaries (regardless of having been transferred from one corporation to another).

Death or Disability

If an optionee dies (a) while he is an employee or consultant to, the Company, its parent or any of
its subsidiaries, (b) within three months after the termination of such relationship (unless such
termination was for cause or without the consent of the Company), or (c) within one year following
the termination of such relationship by reason of disability, an option may be exercised, to be
extent exercisable on the date of death, by an executor, administrator or other person at the time
entitled by law to the rights of the optionee under such option, at any time within one year after
death, but not thereafter and in no event after the date the option would otherwise have expired.

Any optionee whose relationship has terminated by reason of disability may exercise his option, to
the extent exercisable upon the effective date of such termination, at any time within one year
after such date, but not thereafter and in no event after the date the option would otherwise have
expired.

Adjustments Upon Changes in Shares

Notwithstanding any other provisions of the 2006 Stock Option Plan, in the event of any change in
the outstanding Shares by reason of a share dividend, recapitalization, merger or consolidation in
which the Company is the surviving corporation, split-up, combination or exchange of Shares or the
like, the aggregate number and kind of Shares subject to the 2006 Stock Option Plan, the aggregate
number and kind of Shares subject to each outstanding option and the exercise price thereof will be
appropriately adjusted by the Board of Directors, whose determination will be conclusive.

In the event of (a) the liquidation or dissolution of the Company or (b) a merger or consolidation
in which the Company is not the surviving corporation, any outstanding options will terminate,
unless other provision is made therefore in the transaction.

Amendments and Termination of the 2006 Stock Option Plan

No option may be granted under the 2006 Stock Option Plan after December 2016. The Board of
Directors, without further approval of the Company’s Shareholders, may at any time suspend or
terminate the 2006 Stock Option Plan, in whole or in part, or amend it from time to time in such
respects as it may deem advisable, including, without limitation, to comply with the provisions of
certain rules and regulations promulgated by the Securities and Exchange Commission, among other
things; provided, however, that no amendment may be effective without the requisite prior or
subsequent Shareholder approval which would (a) except as required for anti-dilution adjustments,
increase the maximum number of Shares for which options may be granted under the 2006 Stock Option
Plan, (b) materially increase the benefits to participants under the 2006 Stock Option Plan, or (c)
change the eligibility requirements for individuals entitled to receive options under the 2006
Stock Option Plan.

Non-Transferability of Options

No option granted under the 2006 Stock Option Plan may be transferable otherwise than by will or
the laws of descent and distribution, and options may be exercised, during the lifetime of the
holder thereof, only by such holder or such holder’s legal representatives. Except to the extent
provided above, options may not be assigned, transferred, pledged, hypothecated or disposed of in
any way (whether by operation of law or otherwise) and may not be subject to execution, attachment
or similar process.

15Amendment No. 1 to Amended and Restated Stockholders Agreement

 Exhibit 10.2 
 EXECUTION VERSION 
 AMENDMENT NO. 1 
 TO 
 AMENDED AND RESTATED STOCKHOLDERS AGREEMENT 
 AMENDMENT NO. 1, dated as of November 9, 2007 (this “First Amendment”), to the Amended and Restated Stockholders Agreement, dated
as of January 8, 2007 (the “Stockholders Agreement”), by and among (i) CRITICAL HOMECARE SOLUTIONS HOLDINGS, INC. (f/k/a KCHS Holdings, Inc.), a Delaware corporation (the “Company”), (ii) KOHLBERG
INVESTORS V, L.P., a Delaware limited partnership, KOHLBERG PARTNERS V, L.P., a Delaware limited partnership, KOHLBERG OFFSHORE INVESTORS V, L.P., a Delaware limited partnership, KOHLBERG TE INVESTORS V, L.P., a Delaware limited partnership, and
KOCO INVESTORS V, L.P., a Delaware limited partnership (collectively, the “Kohlberg Stockholders”), (iii) ROBERT CUCUEL, MARY JANE GRAVES, NITIN PATEL, JOEY RYAN and the other members of management of the Company and its
subsidiaries who are stockholders of the Company and have executed the Stockholders Agreement or have otherwise agreed to be bound by the provisions thereof (the “Management Stockholders”), (iv) BLACKSTONE MEZZANINE PARTNERS II
L.P., a Delaware limited partnership, and BLACKSTONE MEZZANINE HOLDINGS II L.P., a Delaware limited partnership (together, “Blackstone”) and (v) S.A.C. DOMESTIC INVESTMENTS, L.P. a Delaware limited partnership
(“SAC,” and collectively with Blackstone, the “Institutional Stockholders,” and collectively with Blackstone, the Management Stockholders and the Kohlberg Stockholders, the “Stockholders”).
Capitalized terms used herein and not defined herein have the meanings ascribed thereto in the Stockholders Agreement. 
 WHEREAS, pursuant
to, and subject to the limitations set forth in, Section 12 of the Stockholders Agreement, no amendment of the Stockholders Agreement shall be effective unless such amendment is approved in writing by the Company, the Kohlberg Stockholders, the
holders of at least a majority of the then-outstanding Institutional Shares and the holders of at least a majority of the then-outstanding Management Shares; and 
 WHEREAS, the Stockholders wish to amend the Stockholders Agreement as set forth below. 
 NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth herein, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows: 
 1. Amendment. 
 (a) Section 1 of the Stockholders Agreement is hereby amended by adding the
following definitions therein: 

 “Disclosure Package” means, with respect to any offering of securities, (i) the
preliminary Prospectus, (ii) each Free Writing Prospectus and (iii) all other information, in each case, that is deemed, under Rule 159 promulgated under the Securities Act, to have been conveyed to purchasers of securities at the time of
sale of such securities (including, without limitation, a contract of sale). 
 “Free Writing Prospectus” means any
“free writing prospectus” as defined in Rule 405 promulgated under the Securities Act. 
 “Prospectus” means the
prospectus related to any Registration Statement (including, without limitation, a prospectus or prospectus supplement that discloses information previously omitted from a prospectus filed as part of an effective registration statement in reliance
on Rule 415, 430A or 430B (or any successor rules or regulations) under the Securities Act), as amended or supplemented by any amendment or prospectus supplement, including post-effective amendments, and all materials incorporated by reference in
such prospectus. 
 “Registration Statement” means a registration statement filed pursuant to the Securities Act.

 (b) Section 7 of the Stockholders Agreement is hereby amended by adding the following provision (f) therein: 
 “(f) Indemnification; Contribution. 
 (i) The Company will indemnify, defend and hold harmless each holder of Stockholder Shares included in any registration effected pursuant to this Section 7 and each underwriter of such securities, and each person, if any, who controls
each such holder and underwriter within the meaning of the Securities Act, and their respective partners, directors, officers, stockholders, members, employees, trustees, agents, advisors and Affiliates (each, an “Indemnified
Person”), to the fullest extent enforceable under applicable law against all claims, losses, damages and liabilities (or actions or proceedings in respect thereof, whether or not such Indemnified Person is a party hereto) arising out of or
based on any untrue statement (or alleged untrue statement) of a material fact contained in any Disclosure Package, Registration Statement, Prospectus or Free-Writing Prospectus or supplement or amendment thereto related to any such registration or
any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading and will reimburse each such Indemnified Person for any legal or any other expenses
reasonably incurred in connection with investigating and/or defending (and/or preparing for any investigation or defense of) any such claim, loss, damage, liability, action or proceeding; provided that the Company will not be liable in any
such case to any such Indemnified Person if, but only to the extent that, any such claim, loss, damage, liability, action, proceeding or expense is finally determined by a court of competent jurisdiction to arise out of or result from any untrue
statement in or omission from written information about such Indemnified Person in its capacity as a stockholder of the Company and furnished to the Company by an instrument duly executed by such Indemnified Person and stated to be specifically for
use therein. 
  

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 (ii) Each holder of Stockholder Shares will, on a several (not joint) basis, if Stockholder Shares held
by such holder are included in a registration effected pursuant to this Section 7, indemnify, defend and hold harmless the Company, each of its directors and officers who signs the related Registration Statement and each person, if any, who
controls the Company within the meaning of the Securities Act and each other holder of Stockholder Shares whose Shares are included in such registration to the fullest extent enforceable under applicable law against all claims, losses, damages and
liabilities (or actions or proceedings in respect thereof, whether or not the Company is a party hereto) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such Disclosure Package,
Registration Statement, Prospectus or Free-Writing Prospectus or supplement or amendment related to any such registration or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading and will reimburse the Company, such directors, officers and controlling persons and such other holders for any legal or any other expenses reasonably incurred in connection with investigating and/or defending
(and/or preparing for any investigation or defense of) any such claim, loss, damage, liability, action or proceeding, in each case to the extent, but only to the extent, that any such claim, loss, damage, liability, action, proceeding or expense is
finally determined by a court of competent jurisdiction to arise out of or result from any untrue statement in or omission from written information about such holder in its capacity as a stockholder of the Company and furnished to the Company by an
instrument duly executed by such holder and stated to be specifically for use therein; provided that the liability of any such holder under this Section 7(f) (whether in respect of indemnification or contribution obligations) shall be
limited to the net sales proceeds actually received by such holder as a result of the sale by it of Stockholder Shares in such registration. 
 (iii) Each party entitled to indemnification under this Section 7(f) (the “Indemnified Party”) shall give notice to each party required to provide indemnification (the “Indemnifying Party”) promptly
after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, provided that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its
obligations under this Section 7(f), except to the extent that the Indemnifying Party is materially prejudiced or otherwise forfeits substantive rights or defenses by reason of such failure. If notice of commencement of any such action is given
to the Indemnifying Party as provided above, the Indemnifying Party shall be entitled to participate in and, to the extent it may wish, jointly with any other Indemnifying Party similarly notified, to assume the defense of such claim or any
litigation resulting therefrom at its own expenses, with counsel chosen by it, which counsel shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld). Each Indemnified Party may employ separate counsel and
participate in such defense, but the fees and expenses of such counsel shall be paid by the Indemnified Party unless (a) the Indemnifying Party agrees to pay such fees and expenses of such counsel, (b) the Indemnifying Party fails to
assume the defense of such action 

  

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with counsel reasonably satisfactory to the Indemnified Party or (c) the named parties to any such action (including any impleaded parties) include both
the Indemnifying Party and the Indemnified Party and the Indemnified Party has been advised by its counsel that either (1) representation of such Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under
applicable standards of professional conduct or (2) there may be one or more legal defenses available to the Indemnified Party which are different from or additional to those available to the Indemnifying Party. In any of such cases, the
Indemnifying Party shall not have the right to assume the defense of such action on behalf of such Indemnified Party, it being understood, however, that the Indemnifying Party shall not be liable for the reasonable fees and expenses of more than one
separate firm of attorneys (in addition to any local counsel) for all Indemnified Parties and all such expenses shall be reimbursed as incurred. No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of
each Indemnified Party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect
of such claim or litigation. No Indemnifying Party shall be liable for any settlement entered into without its written consent, which consent shall not be unreasonably withheld. Each Indemnified Party shall furnish such information regarding itself
or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection with defense of such claim or litigation resulting therefrom. 
 (iv) If the indemnification provided for in this Section 7(f) is held by a court of competent jurisdiction to be unavailable to an Indemnified
Party with respect to any claim, loss, damage, liability or expense referred to herein, then each Indemnifying Party, in lieu of indemnifying such Indemnified Party hereunder, shall severally, and not jointly, contribute to the amount paid or
payable by such Indemnified Party as a result of such claim, loss, damage, liability or expense in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party, on the one hand, or of the Indemnified Party, on the other
hand, in connection with such claim, loss, damage, liability or expense, as well as any other relevant equitable considerations. The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by such Indemnifying Party or by the Indemnified Party and the parties’
relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of any claim, loss, damage, liability or expense referred to above shall be deemed
to include, subject to the limitations set forth in Section 7(f)(ii) and (iii) above, any legal or other fees, changes or expenses reasonably incurred by such party in connection with any investigation or proceeding. Anything to the
contrary notwithstanding, the total amount to be contributed by any holder of Stockholder Shares shall be limited to the net proceeds (after deducting the underwriters’ discounts and commissions) received by such Stockholder in the offering.

 The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7(f)(iv) were determined by
pro rata allocation or by 

  

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any other method of allocation that does not take account of the equitable considerations referred to in the immediately preceding paragraph. No person
guilty of fraudulent misrepresentation (within the meeting of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.” 
 2. Miscellaneous. 
 (a) Governing
Law. The General Corporation Law of the State of Delaware shall govern all issues concerning the relative rights of the Company and its Stockholders. All other questions concerning the construction, validity and interpretation of this First
Amendment shall be governed by the internal law, and not the law of conflicts, of the State of New York. 
 (b) Counterparts. This
First Amendment may be executed in separate counterparts, each of which shall be an original but all of which taken together shall constitute but one instrument. 
 (c) Continued Force and Effect. Except as expressly amended or modified herein, the provisions of the Stockholders Agreement are and shall remain in full force and effect. 
 [Remainder of page intentionally left blank] 
  

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 IN WITNESS WHEREOF, the undersigned has executed, or has caused to be executed, this First Amendment on
the date first written above. 
  

			
	CRITICAL HOMECARE SOLUTIONS HOLDINGS, INC.
		
	By:	 	 /s/ Mary Jane Graves

	Name:	 	Mary Jane Graves
	Title:	 	Chief Financial Officer, Vice President and Secretary
	
	THE KOHLBERG STOCKHOLDERS:
	
	Kohlberg Investors V, L.P.
		
	By:	 	Kohlberg Management V, L.L.C., its general partner
		
	By:	 	 /s/ Gordon Woodward

	Name:	 	Gordon Woodward
	Title:	 	Director
	
	Kohlberg Partners V, L.P.
		
	By:	 	Kohlberg Management V, L.L.C., its general partner
		
	By:	 	 /s/ Gordon Woodward

	Name:	 	Gordon Woodward
	Title:	 	Director
	
	Kohlberg Offshore Investors V, L.P.
		
	By:	 	Kohlberg Management V, L.L.C., its general partner
		
	By:	 	 /s/ Gordon Woodward

	Name:	 	Gordon Woodward
	Title:	 	Director
	
	Kohlberg TE Investors V, L.P.
		
	By:	 	Kohlberg Management V, L.L.C., its general partner
		
	By:	 	 /s/ Gordon Woodward

	Name:	 	Gordon Woodward
	Title:	 	Director

  

			
	KOCO Investors V, L.P.
		
	By:	 	Kohlberg Management V, L.L.C., its general partner
		
	By:	 	 /s/ Gordon Woodward

	Name:	 	Gordon Woodward
	Title:	 	Director
	
	THE INSTITUTIONAL STOCKHOLDERS:
	
	Blackstone Mezzanine Partners II L.P.
		
	By:	 	Blackstone Mezzanine Associates II, L.P., its general partner
		
	By:	 	Blackstone Mezzanine Management Associates II, L.L.C., its general partner
		
	By:	 	 /s/ Salvatore Gentile

	Name:	 	Salvatore Gentile
	Title:	 	Authorized Signer
	
	Blackstone Mezzanine Holdings II L.P.
		
	By:	 	Blackstone Mezzanine Associates II, L.P., its general partner
		
	By:	 	Blackstone Mezzanine Management Associates II, L.L.C., its general partner
		
	By:	 	 /s/ Salvatore Gentile

	Name:	 	Salvatore Gentile
	Title:	 	Authorized Signer
	
	S.A.C. Domestic Investments, L.P.
		
	By:	 	S.A.C. Capital Management, LLC, its general partner
		
	By:	 	 /s/ Peter A. Nussbaum

	Name:	 	Peter A. Nussbaum
	Title:	 	

  

			
	MANAGEMENT STOCKHOLDERS:
		
	By:	 	 /s/ Robert Cucuel

	Name:	 	Robert Cucuel
		
	By:	 	 /s/ Mary Jane Graves

	Name:	 	Mary Jane Graves
		
	By:	 	 /s/ Nitin Patel

	Name:	 	Nitin Patel
		
	By:	 	 /s/ Joey Ryan

	Name:	 	Joey Ryan

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