Document:

ex10-6.htm

    

      EXHIBIT
10.6

       

      Amendment
No. 2

      to

      EMPLOYMENT
AGREEMENT

      

      THIS
AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT (“Agreement”) effective as of March 31,
2008, by and between Chauncey J. Hunker (“Executive”) and Sun Healthcare Group,
Inc., a Delaware corporation (“Sun”);

       

      WHEREAS,
Sun and Executive entered into an Employment Agreement dated as of October 12,
2006, and amended such Employment Agreement effective as of October 31, 2007 (as
so amended, the “Employment Agreement”), and they desire to amend the Employment
Agreement with respect to the terms and conditions of Executive’s bonus
eligibility, as set forth below (capitalized terms used in this Agreement
without definition shall have the meanings provided in the Employment
Agreement).

       

      NOW,
THEREFORE, in consideration of the above recitals and the mutual covenants and
agreements contained herein, Executive and Sun agree as follows:

       

      1.           Amendment.

       

          
(a) Section 3(b) of the Agreement is amended by deleting it in its entirety and
inserting the following in lieu thereof:

       

       

      
        	
                 
      

              	
                (b) Cash
      Bonus/Incentive Compensation. In addition to the Base Salary
      provided for in Section 3(a) above, Executive shall be entitled to receive
      an annual incentive bonus (“Bonus”) in accordance with the Sun Healthcare
      Group, Inc. Executive Bonus Plan, as it may be amended from time to time
      by the Compensation Committee of the Board of Directors; provided,
      however, that no amendment shall be effective if it reduces
      the percentage of Base Salary that would constitute the
      minimum or maximum potential amount of the Bonus as compared to the
      prior year, unless such amendment has been agreed to in writing by
      Executive. 
      The Bonus shall be payable at the same time as other annual bonuses are
      paid to senior management personnel.  Subject to the provisions
      of Section 6, in order to have earned and to be paid any such Bonus,
      Executive must be employed by Sun on the date of such payment. It is
      intended that the Bonus described in this Section 3(b) qualify as
      "performance based compensation" under Section 162(m) of the Code to the
      extent necessary to preserve Sun’s ability to deduct such
      Bonus.

              

      

       

       

      
        	
                 
      

              	
                (b)  Schedule
      A to the Agreement is deleted in its
entirety.

              

      

       

      2.           Miscellaneous.

       

      
        	
                (a)  

              	
                Amendments,
      Waivers, Etc.  Except as otherwise provided herein, no
      provision of this Agreement may be modified, waived or discharged unless
      such waiver, modification or discharge is agreed to in writing signed by
      both parties.  No waiver by either party hereto at any time
      of

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                 

              	
                any
      breach by the other party hereto of, or compliance with, any condition or
      provision of this Agreement to be performed by such other party shall be
      deemed a waiver of similar or dissimilar provisions or conditions at the
      same or at any prior or subsequent
time.

              

      

       

      
        	
                (b)  

              	
                Entire
      Agreement.  The Employment Agreement, as amended by this
      Agreement, sets forth the entire agreement and understanding of the
      parties hereto with respect to the matters covered hereby and supersedes
      all prior agreements and understandings of the parties with respect to the
      subject matter hereof.  No agreements or representations, oral
      or otherwise, express or implied, with respect to the subject matter
      hereof have been made by either party which are not expressly set forth in
      the Employment Agreement, as amended hereby, and the Employment Agreement,
      as so amended, shall supersede all prior agreements, negotiations,
      correspondence, undertakings and communications of the parties, oral or
      written, with respect to the subject matter hereof.  Except for
      the changes set forth in Section 1, the Employment Agreement shall remain
      in full force and effect.

              

      

       

      
        	
                (c)  

              	
                Counterparts.  This
      Agreement may be executed in one or more counterparts, each of which, when
      so executed and delivered, shall be deemed an original, but all such
      counterparts together shall constitute one and the same
      instrument.

              

      

       

      The parties hereto have executed this
Agreement as of the date first above written.

      

      

      
        	
                /s/
      Chauncey J. Hunker

              	
                April
      1, 2008

              
	
                Chauncey
      J. Hunker

              	
                Date

              
	 	 
	
                SUN
      HEALTHCARE GROUP, INC.

              	 
      
	 	 
	
                By
      /s/ Richard Matros

              	
                March
      31, 2008

              
	
                Its
      Chairman and Chief Executive Officer

              	
                Date

              

      

      

       

      2ex10-7.htm

    EXHIBIT
10.7

    

    
      NON-EMPLOYEE
DIRECTOR COMPENSATION POLICY

      Sun
Healthcare Group, Inc.

      as
amended through March 18, 2008

      

      

      The
Non-Employee Directors of the Board of Directors of Sun Healthcare Group, Inc.
(“Directors”) shall be compensated as follows:

      

      
        	
                1.  

              	
                Annual Fees for
      Directors.  Each Director shall receive an annual fee of
      $35,000, which is payable in four equal quarterly
      installments.

              

      

       

      
        	
                2.  

              	
                Annual Fees for
      Chairpersons.  Each Chairperson of a Committee of the
      Board of Directors shall receive an additional annual fee, payable in four
      equal quarterly installments, as follows:  $8,000 for Audit, $6,000
      for Compliance, and $5,000 for each of Compensation, Nominating or
      Executive.

              

      

       

      
        	
                3.  

              	
                Meeting
      Fees.  Each Director shall receive: (i) $1,750 for a
      Board of Directors or Committee meeting attended in person, (ii) the
      following amounts for each additional Committee meeting attended in person
      on the same date: $1,500 for Audit or Compliance Committee meetings
      and $1,000 for Compensation or Nominating and Governance Committee
      meetings, and (iii) $1,000 for any Board or Committee meetings
      attended by telephone.

              

      

       

      
        	
                4.  

              	
                Restricted Stock Unit
      Awards.  Each Director shall receive an award of $100,000
      of restricted stock units on the date that the Compensation Committee
      grants annual equity awards to its officers and employees using the
      closing sale price of Sun’s common stock as of such date.  The
      stock unit awards shall have the following terms:  (i) the units
      shall vest monthly over one year, (ii) the vested units shall not be
      distributed as common stock until the earlier of five years of service on
      the Board or separation of service from the Board, and (iii) the vesting
      of the units and the distribution of the vested units would accelerate at
      death, disability or change in
control.

              

      

       

      
        	
                5.  

              	
                Conversion of Cash
      Retainers into Stock Units.  Commencing as of July 1,
      2008, each Director shall be entitled to convert their cash retainers
      under Items 1 and 2 above into additional stock
      units.  Directors choosing such conversion must make an
      irrevocable election each year and the conversion would occur quarterly as
      of the last day business day of each quarter using the closing sale price
      of Sun’s common stock.

              

      

       

      
        	
                6.

              	
                Reimbursement of
      Expenses.  Each Director is reimbursed for out-of-pocket
      expenses for attendance at Board and committee
  meetings.ex10-8.htm

    EXHIBIT
10.8

    

     

    
      Stock
Unit Grant

      

      Sun
Healthcare Group, Inc.

      2004
Equity Incentive Plan

      

      Name of
Grantee:                                           [____________]

      

      Number of Stock
Units:                                [________]

      

      Date of
Grant:                                                [____________]

       

      
        	
                Vesting:

              	
                The
      units shall become vested as follows if you are a Director of Sun
      Healthcare Group, Inc. (the “Company”) on the applicable vesting
      date:  (i) 8.333% of the units shall vest on the 18th
      day of each of the 12 months following the Date of Grant, subject in each
      case to the Terms; and (ii) the units shall become vested in full upon the
      date of the death or disability of the Grantee or a Change in Control (as
      defined in the Terms).

              

      

       

      
        	
                Distribution:

              	
                The
      shares of common stuck underlying the vested stock units shall be
      distributed to the Grantee upon the earlier of (i) the last date of
      service by the Grantee on the Company’s Board of Directors or (ii) the
      five-year anniversary of the Date of
Grant.

              

      

       

      By
signing your name below, you accept this stock unit award and acknowledge and
agree that the units are granted under and governed by the terms and conditions
(collectively, the “Terms”) of the Sun Healthcare Group, Inc. 2004 Equity
Incentive Plan and the Stock Unit Agreement, both of which are hereby made a
part of this document.

      

      
        	
                “GRANTEE”

                 

                 

                _________________________________

                Signature

                 

                 

              	
                SUN
      HEALTHCARE GROUP, INC.,

                a
      Delaware corporation

                 

                 

                __________________________________

                By:  Richard
      Matros

                Its:  Chief
      Executive Officer

              

      

      

       

       

      CONSENT
OF SPOUSE

       

      In
consideration of the Company’s execution of this award agreement, the
undersigned spouse of the Grantee agrees to be bound by all of the terms and
provisions hereof and of the Plan.

      

       

      __________________________________                                                              ______________________

      Signature of
Spouse                                                                                                           Date

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