Document:

Exhibit 10.26

 

2014 BOARD OF DIRECTOR NQSO AGREEMENT

 

Congratulations, you have been awarded a stock option grant in recognition of your contributions to the success of HMS Holdings Corp. (the “Company”) and its Affiliates.  A stock option grant gives you the right to purchase a specific number of shares of the Company’s common stock at a fixed price, assuming that you satisfy conditions of the Company’s Fourth Amended and Restated 2006 Stock Plan (the “Plan”) and the implementing agreement.  We would like you to have an opportunity to share in the continued success of the Company through this stock option grant under the Plan.  The following represents a brief description of your grant.  Additional details regarding your award are provided in the attached Nonqualified Stock Option Agreement (the “Grant Agreement”) and in the Plan.

 

Stock Option Grant Summary:

 

	
Date of Grant
    	
 
    	
November 12, 2014
    
	
Option Shares
    	
 
    	
                
    
	
Exercise Price per Share
    	
 
    	
$              
    
	
Exercisability
    	
 
    	
One-quarter of the Option Shares on December 31   of the year in which the Grant is made and an additional one-quarter on the   last day of each of the first three quarters of the following calendar year.   Each of those dates is an “Exercisability Date.”
    
	
Term Expiration Date
    	
 
    	
                ,           
    

 

You have been granted a nonqualified stock option to purchase Shares of the Company’s common stock.  The total number of Shares under your grant is in the chart above under “Option Shares” and the price per share is under “Exercise Price per Share.”

 

The potential value of your stock option grant increases if the price of the Company’s stock increases, but you also have to continue to provide services to the Company (except as the Grant Agreement provides) to actually receive such value.  Of course, the value of the stock may go up and down over time.

 

You can’t exercise the stock option (actually purchase the shares) until it becomes exercisable.  Your stock option becomes exercisable as provided in the chart above under Exercisability, assuming you remain an employee of or member of the Board of Directors of the Company and subject to the terms in the Grant Agreement.

 

Whether or not you decide to exercise your stock option and purchase the stock is your decision, and, you have until the stock option expires (which will be no later than the seventh anniversary of the Date of Grant, but can end earlier in various situations) to make that decision.

 

Once you have purchased the Shares, you will own them and may decide whether to hold the stock, sell the stock or give the stock to someone as a gift.

 

You can access the Merrill Lynch portal updates and information: https://www.benefits.ml.com.  Please email IR@hms.com with any questions.

 

 

HMS HOLDINGS CORP.

NONQUALIFIED STOCK OPTION GRANT AGREEMENT FOR BOARD OF DIRECTORS

 

HMS Holdings Corp. (the “Company”) has granted you an option (the “Option”) under the HMS Holdings Corp. Fourth Amended and Restated 2006 Stock Plan (as it may be amended from time to time) (the “Plan”).  The Option lets you purchase a specified number (the “Option Shares”) of Shares of the Company’s common stock, at a specified price per Share (the “Exercise Price”).

 

The individualized communication you received (the “Cover Letter”) provides the details for your Option.  It specifies the number of Option Shares, the Exercise Price, the Date of Grant, the schedule for exercisability, and the latest date the Option will expire (the “Term Expiration Date”).

 

The Option is subject in all respects to the applicable provisions of the Plan.  This Grant Agreement does not cover all of the rules that apply to the Option under the Plan; please refer to the Plan document.  Capitalized terms are defined either further below in this grant agreement (the “Grant Agreement”) or in the Plan.

 

The Plan document is available on the Merrill Lynch website.  The Prospectus for the Plan, the Company’s S-8, Annual Report on Form 10-K, and other filings the Company makes with the Securities and Exchange Commission are available for your review under the Investor Relations tab on the Company’s web site.  You may also obtain paper copies of these documents upon request to the Company’s Investor Relations department (IR@HMS.com).

 

Neither the Company nor anyone else is making any representations or promises regarding the duration of your service, exercisability of the Option, the value of the Company’s stock or of this Option, or the Company’s prospects.  The Company is not providing any advice regarding tax consequences to you or regarding your decisions regarding the Option; you agree to rely only upon your own personal advisors.

 

NO ONE MAY SELL, TRANSFER, OR DISTRIBUTE THE OPTION OR THE SECURITIES THAT MAY BE PURCHASED UPON EXERCISING THE OPTION WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATING THERETO OR AN OPINION OF COUNSEL SATISFACTORY TO HMS HOLDINGS CORP. OR OTHER INFORMATION AND REPRESENTATIONS SATISFACTORY TO IT THAT SUCH REGISTRATION IS NOT REQUIRED.

 

2

 

In addition to the Plan’s terms and restrictions, the following terms and restrictions apply:

 

	
Option   
   Exercisability
    	
 
    	
While   your Option remains in effect under the Option Expiration section,   you may exercise any exercisable portions of the Option (and buy the Option   Shares) under the timing rules of this section, provided that you may   not exercise the Option for fewer than 100 full shares at any particular time   unless fewer than 100 remain unexercised.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   Option will become exercisable on the schedule provided in the Cover Letter   to this Grant Agreement assuming that through each Exercisability Date,   (i) if you received the Option in your capacity as an employee of the   Company, you remain an employee or (ii) if you received the Option in   your capacity as a member of the Company’s Board, you remain a member of the   Company’s Board. Any fractional shares will be carried forward to the   following Exercisability Date, unless the Committee selects a different   treatment. For purposes of this Grant Agreement, employment with the Company   will include employment with any Affiliate whose employees are then eligible   to receive Awards under the Plan. Unless the Committee determines otherwise,   if an entity employing you ceases to be an Affiliate, your employment with   the Company will be treated as ended even though you continue to be employed   by that entity.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Exercisability   will accelerate fully on your disability or death.  For this purpose, “disability”   means permanent and total disability as defined by   Section 22(e)(3) of the Code.    Exercisability will continue and increase (until fully exercisable)   over the two years following your date of Retirement.  “Retirement”   for this purpose means cessation of service on or after attaining age 60 and   completing five years of service with the Company.
    
	
 
    	
 
    	
 
    
	
Change in 
   Control
    	
 
    	
If   a Change in Control occurs, your Option will be treated as provided in Section 11 of the Plan if, within 24   months following the Change in Control, your employment or service ends on a   termination without cause (as determined by the Committee or the Board),   provided also that the Option will remain outstanding for 12 months following   such termination but not beyond the Term Expiration Date.
    
	
 
    	
 
    	
 
    
	
Option   Expiration
    	
 
    	
The   Option will expire no later than the close of business on the Term Expiration   Date. Unexercisable portions of the Option expire immediately when you cease   to be employed (unless you are concurrently remaining or becoming a member of   the Board, or, for a Board member, concurrently remaining or becoming an   employee of the Company). If the Company terminates your employment or   service for cause or if you violate any then applicable restrictive covenant   agreement (such as agreements pertaining to confidentiality, intellectual   property, nonsolicitation, and/or noncompetition), the Option will   immediately expire without regard to whether it is then exercisable.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Exercisable   portions of the Option remain exercisable until the first to occur of the   following (the “Final Exercise Date”), each   as defined further in the Plan or the Grant Agreement:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·      Three months   (measured to the corresponding date in the month) after your employment (or   directorship) ends if you resign or if the Company terminates your employment   or service without cause (as determined under the Plan), except as provided   above under Change in Control
    

 

3

 

	
 
    	
 
    	
·      For death or   Disability, the first anniversary of the date employment or service ends
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·      For   Retirement, the end of the second year following your date of Retirement
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·      The   Term Expiration Date
    

 

	
 
    	
 
    	
The   Committee can override the expiration provisions of this Grant Agreement.
    

 

	
Method   of 
   Exercise and 
   Payment for 
   Shares
    	
 
    	
Subject   to this Grant Agreement and the Plan, you may exercise the Option only by   providing a written notice (or notice through another previously approved method,   which could include a web-based or voice- or e-mail system) to the Secretary   of the Company or to whomever the Committee designates, received on or before   the date the Option expires. Each such notice must satisfy whatever   then-current procedures apply to that Option and must contain such   representations (statements from you about your situation) as the Company   requires. You must, at the same time, pay the Exercise Price using one or   more of the following methods:
    

 

	
Cash/Check
    	
 
    	
cash   or check in the amount of the Exercise Price payable to the order of the   Company;
    
	
 
    	
 
    	
 
    
	
Cashless 
   Exercise
    	
 
    	
an   approved cashless exercise method, including directing the Company to send the   stock certificates (or other acceptable evidence of ownership) to be issued   under the Option to a licensed broker acceptable to the Company as your agent   in exchange for the broker’s tendering to the Company cash (or acceptable   cash equivalents) equal to the Exercise Price and, if you so elect, any   required tax withholdings;
    
	
 
    	
 
    	
 
    
	
Net Exercise
    	
 
    	
by   delivery of a notice of “net exercise” to or as directed by the Company, as a   result of which you will receive (i) the number of shares underlying the   portion of the Option being exercised less (ii) such number of shares as   is equal to (A) the aggregate Exercise Price for the portion of the   Option being exercised divided by (B) the Fair Market Value on the date   of exercise;
    
	
 
    	
 
    	
 
    
	
Stock
    	
 
    	
if   permitted by the Committee, by delivery of Shares owned by you, valued at   their Fair Market Value, provided (i) applicable law then permits such   method of payment, (ii) you owned such Shares, if acquired directly from   the Company, for such minimum period of time, if any, as the Committee may   establish in its discretion, and (iii) the Shares are not subject to any   repurchase, forfeiture, unfulfilled vesting, or other similar restrictions;   or
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
any   combination of the above permitted forms for payment.
    

 

	
Withholding
    	
 
    	
Issuing   the Option Shares is contingent on satisfaction of all obligations with   respect to required tax or other required withholdings (for example, in the   U.S., Federal, state, and local taxes). The Company may take any action   permitted under Section 14(c) of the Plan to satisfy such   obligation, including satisfying the tax obligations by (i) reducing the   number of Option Shares to be issued to you in connection with any exercise   of the Option by that number of Option Shares (valued at their Fair Market   Value on the date of exercise) that would equal all taxes required to be   withheld (at their minimum withholding levels), (ii) accepting payment   of the withholdings from a broker in connection with a Cashless
    

 

4

 

	
 
    	
 
    	
Exercise   of the Option or directly from you, or (iii) taking any other action   under Section 14(c) of the Plan.    If a fractional share remains after deduction for required   withholding, the Company will pay you the value of the fraction in cash.
    
	
 
    	
 
    	
 
    
	
Compliance   
   with Law
    	
 
    	
You   may not exercise the Option if the Company’s issuing stock upon such exercise   would violate any applicable Federal or state securities laws or other laws   or regulations. You may not sell or otherwise dispose of the Option Shares in   violation of applicable law. As part of this prohibition, you may not use the   Cashless Exercise methods if the Company’s insider trading policy then   prohibits you from selling to the market.
    
	
 
    	
 
    	
 
    
	
Additional   
   Conditions 
   to Exercise
    	
 
    	
The   Company may postpone issuing and delivering any Option Shares for so long as   the Company determines to be advisable to satisfy the following:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
its   completing or amending any securities registration or qualification of the   Option Shares or its or your satisfying any   exemption from registration under any Federal or state law, rule, or   regulation;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
its   receiving proof it considers satisfactory that a person seeking to exercise   the Option after your death is entitled to do so;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
your   complying with any requests for representations under the Plan; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
your   complying with any Federal, state, or local tax withholding obligations.
    
	
 
    	
 
    	
 
    
	
Additional   
   Representations 
   from You
    	
 
    	
If   you exercise the Option at a time when the Company does not have a current   registration statement (generally on Form S-8) under the Securities Act   of 1933 (the “Act”) that covers issuances   of shares to you, you must comply with the following before the Company will   issue the Option Shares to you. You must —
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
represent   to the Company, in a manner satisfactory to the Company’s counsel, that you   are acquiring the Option Shares for your own account and not with a view to   reselling or distributing the Option Shares; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
agree   that you will not sell, transfer, or otherwise dispose of the Option Shares   unless:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
a   registration statement under the Act is effective at the time of disposition   with respect to the Option Shares you propose to sell, transfer, or otherwise   dispose of; or
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
the   Company has received an opinion of counsel or other information and   representations it considers satisfactory to the effect that, because of   Rule 144 under the Act or otherwise, no registration under the Act is   required.
    

 

5

 

	
No   Effect on 
   Employment 
   or Other 
   Relationship
    	
 
    	
Nothing   in this Grant Agreement restricts the Company’s rights or those of any of its   Affiliates to terminate your employment or other relationship at any time and   for any or no reason. The termination of employment or other relationship,   whether by the Company or any of its Affiliates or otherwise, and regardless   of the reason for such termination, has the consequences provided for under   the Plan and any applicable employment or severance agreement or plan.
    
	
 
    	
 
    	
 
    
	
Not a   Shareholder
    	
 
    	
You   understand and agree that the Company will not consider you a shareholder for   any purpose with respect to any of the Option Shares until you have exercised   the Option, paid for the shares, and received evidence of ownership.
    
	
 
    	
 
    	
 
    
	
No   Effect on 
   Running Business
    	
 
    	
You   understand and agree that the existence of the Option will not affect in any   way the right or power of the Company or its shareholders to make or   authorize any adjustments, recapitalizations, reorganizations, or other   changes in the Company’s capital structure or its business, or any merger or   consolidation of the Company, or any issuance of bonds, debentures, preferred   or other stock, with preference ahead of or convertible into, or otherwise   affecting the Company’s common stock or the rights thereof, or the   dissolution or liquidation of the Company, or any sale or transfer of all or   any part of its assets or business, or any other corporate act or proceeding,   whether or not of a similar character to those described above.
    
	
 
    	
 
    	
 
    
	
Governing   Law
    	
 
    	
The   laws of the State of New York will govern all matters relating to the Option,   without regard to the principles of conflict of laws.
    
	
 
    	
 
    	
 
    
	
Notices
    	
 
    	
Any   notice you give to the Company must follow the procedures then in effect. If   no other procedures apply, you must send your notice in writing by hand or by   mail to the office of the Company’s Secretary (or to the Chair of the   Committee if you are then serving as the sole Secretary). If mailed, you   should address it to the Company’s Secretary (or the Chair of the Committee)   at the Company’s then corporate headquarters, unless the Company directs   optionees to send notices to another corporate department or to a third party   administrator or specifies another method of transmitting notice. The Company   and the Committee will address any notices to you using its standard   electronic communications methods or at your office or home address as   reflected on the Company’s personnel or other business records. You and the   Company may change the address for notice by like notice to the other, and   the Company can also change the address for notice by general announcements   to optionees.
    
	
 
    	
 
    	
 
    
	
Amendment
    	
 
    	
Subject   to any required action by the Committee or the shareholders of the Company,   the Company may cancel the Option and provide a new Award in its place,   provided that the Award so replaced will satisfy all of the requirements of   the Plan as of the date such new Award is made and no such action will   adversely affect the Option to the extent then exercisable.
    
	
 
    	
 
    	
 
    
	
Plan   Governs
    	
 
    	
Wherever   a conflict may arise between the terms of this Grant Agreement and the terms   of the Plan, the terms of the Plan will control. The Committee may adjust the   number of Option Shares and the Exercise Price and other terms of the Option   from time to time as the Plan provides.
    

 

6Exhibit 10.27

 

2014 BOARD OF DIRECTOR RSU AGREEMENT

 

Congratulations, you have been awarded restricted stock units (“RSUs”) in recognition of your contributions to the success of HMS Holdings Corp. (the “Company”) and its Affiliates.  A restricted stock unit entitles you to receive a share of the Company’s common stock at a future date, assuming that you satisfy conditions of the Company’s Fourth Amended and Restated 2006 Stock Plan (the “Plan”) and the implementing agreement.  We would like you to have an opportunity to share in the continued success of the Company through these RSUs under the Plan.  The following represents a brief description of your grant.  Additional details regarding your award are provided in the attached Restricted Stock Unit Agreement (the “Grant Agreement”) and in the Plan.

 

Restricted Stock Unit Grant Summary:

 

	
Date of Grant
    	
 
    	
November 12, 2014
    
	
RSU Shares
    	
 
    	
             
    
	
Vesting Schedule
    	
 
    	
One-quarter of the RSU Shares on December 31 of   the year in which the Grant is made and an additional one-quarter on the last   day of each of the first three quarters of the following calendar year.  

 

Each of those dates is a “Vesting   Date.”
    

 

·                  You have been granted RSUs for Shares of the Company’s common stock for the total number of Shares specified under “RSU Shares” in the chart above.

 

·                  The potential value of your RSUs increases if the price of the Company’s stock increases, but you also have to continue to provide services to the Company (except as the Grant Agreement provides) to actually receive such value.  Of course, the value of the stock may go up and down over time.

 

·                  You will not receive the Shares represented by the RSUs unless and until the RSUs vest.  Your RSUs vest as provided in the chart above under “Vesting,” assuming you remain a member of the Board of Directors of the Company and subject to the terms in the Grant Agreement.

 

·                  Once you have received the Shares, you will own them and may decide whether to hold the stock, sell the stock or give the stock to someone as a gift.

 

You can access the Merrill Lynch portal updates and information: https://www.benefits.ml.com.  Please email IR@hms.com with any questions.

 

 

HMS HOLDINGS CORP.

RESTRICTED STOCK UNIT GRANT AGREEMENT FOR BOARD OF DIRECTORS

 

HMS Holdings Corp. (the “Company”) has granted you restricted stock units (the “RSUs”) under the HMS Holdings Corp. Fourth Amended and Restated 2006 Stock Plan (as it may be amended from time to time) (the “Plan”).  Each RSU lets you receive a Share (an “RSU Share”) of the Company’s common stock, upon satisfaction of the conditions to receipt.

 

The individualized communication you received (the “Cover Letter”) provides the details for your RSUs.  It specifies the number of RSU Shares, the Date of Grant, and the schedule for vesting, with the related vesting dates (“Vesting Dates”).

 

The RSUs are subject in all respects to the applicable provisions of the Plan.  This Grant Agreement does not cover all of the rules that apply to the RSUs under the Plan; please refer to the Plan document.  Capitalized terms are defined either further below in this grant agreement (the “Grant Agreement”) or in the Plan.

 

The Plan document is available on the Merrill Lynch website.  The Prospectus for the Plan, the Company’s S-8, Annual Report on Form 10-K, and other filings the Company makes with the Securities and Exchange Commission are available for your review under the Investor Relations tab on the Company’s web site.  You may also obtain paper copies of these documents upon request to the Company’s Investor Relations department (IR@HMS.com).

 

Neither the Company nor anyone else is making any representations or promises regarding the duration of your service, vesting of the RSUs, the value of the Company’s stock or of these RSUs, or the Company’s prospects.  The Company is not providing any advice regarding tax consequences to you or regarding your decisions regarding the RSUs; you agree to rely only upon your own personal advisors.

 

NO ONE MAY SELL, TRANSFER, OR DISTRIBUTE THE RSUS OR THE SECURITIES THAT MAY BE RECEIVED UNDER THEM WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATING THERETO OR AN OPINION OF COUNSEL SATISFACTORY TO HMS HOLDINGS CORP. OR OTHER INFORMATION AND REPRESENTATIONS SATISFACTORY TO IT THAT SUCH REGISTRATION IS NOT REQUIRED.

 

2

 

In addition to the Plan’s terms and restrictions, the following terms and restrictions apply:

 

	
Vesting   
   Schedule
    	
 
    	
Your   RSUs become nonforfeitable (“Vested”)   as provided in the Cover Letter to this Grant Agreement, assuming that   through each Vesting Date, (i) if you received the RSUs in your capacity as an   employee of the Company, you continue in service as an employee or   (ii) if you received the RSUs in your capacity as a member of the   Company’s Board, you continue in service as a member of the Company’s Board. Any   fractional shares will be carried forward to the following Vesting Date,   unless the Committee selects a different treatment. For purposes of this   Grant Agreement, employment with the Company will include employment with any   Affiliate whose employees are then eligible to receive Awards under the Plan.   Unless the Committee determines otherwise, if an entity employing you ceases   to be an Affiliate, your employment with the Company will be treated as ended   even though you continue to be employed by that entity.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Vesting will accelerate fully on your disability or death. For this   purpose, “disability” means permanent   and total disability as defined by Section 22(e)(3) of the Code.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If your employment or service ends as a result of Retirement, you   will be treated as continuing in service for vesting purposes until the   earlier to occur of (x) the second anniversary of your Retirement and   (y) the last of the applicable Vesting Dates. “Retirement”   for this purpose means cessation of employment or service on or after   attaining age 60 and completing five years of service with the Company.
    
	
 
    	
 
    	
 
    
	
Change in 
   Control
    	
 
    	
If   a Change in Control occurs, your RSUs will be treated as provided in Section 11 of the Plan if, within 24   months following the Change in Control, your employment or service ends on   (i) a termination without cause (as determined by the Committee or the   Board) or (ii) Retirement.
    
	
 
    	
 
    	
 
    
	
Termination   for 
   Cause
    	
 
    	
If   the Company terminates your employment or service for cause or if you violate   any then applicable restrictive covenant agreement (such as agreements   pertaining to confidentiality, intellectual property, nonsolicitation, and/or   noncompetition), the RSUs will immediately terminate without regard to   whether they are then Vested in whole or in part.
    
	
 
    	
 
    	
 
    
	
Distribution Date
    	
 
    	
Subject to any overriding provisions in the Plan,   you will receive a distribution of the Shares equivalent to your Vested RSU   Shares as soon as practicable following the date(s) on which you become   Vested (with the actual date being the “Distribution Date”) and, in any event, no later than   30 days following an applicable Vesting Date, unless the Committee determines   that you may make a timely deferral election to defer distribution to a later   date and you have made such an election (in which case the deferred date will   be the “Distribution Date”).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Vesting   that accelerates after a Change in Control will only accelerate the   Distribution Date if and to the extent permitted under Section 409A of   the Code.
    
	
 
    	
 
    	
 
    
	
Restrictions 
   and 
   Forfeiture
    	
 
    	
You   may not sell, assign, pledge, encumber, or otherwise transfer any interest (“Transfer”) in the   RSU Shares until the RSU Shares are distributed to you. Any attempted   Transfer that precedes the Distribution Date is invalid.
    

 

3

 

	
 
    	
 
    	
Unless   the Committee determines otherwise or the Grant Agreement provides otherwise,   if your employment or service with the Company terminates for any reason   before your RSUs are Vested, then you will forfeit the unvested RSUs (and the   Shares to which they relate) to the extent that the RSUs do not otherwise   vest as a result of the termination, pursuant to the rules in the Vesting Schedule section. The forfeited RSUs will then   immediately revert to the Company. You will receive no payment for the RSUs   if you forfeit them.
    
	
 
    	
 
    	
 
    
	
Taxes and 
   Withholding
    	
 
    	
The RSUs provide tax deferral, meaning that the   RSU Shares are not taxable until you actually receive the RSU Shares on or   around the Distribution Date. You will then owe taxes at ordinary income tax   rates as of the Distribution Date at the Shares’ value. If you are an   employee of the Company, you may owe FICA and HI (Social Security and   Medicare) taxes before the Distribution Date.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Issuing   the Shares under the RSUs is contingent on satisfaction of all obligations   with respect to required tax or other required withholdings (for example, in   the U.S., Federal, state, and local taxes). The Company may take any action   permitted under Section 14(c) of the Plan to satisfy such   obligation, including satisfying the tax obligations by (i) reducing the   number of RSU Shares to be issued to you by that number of RSU Shares (valued   at their Fair Market Value on the date of distribution) that would equal all   taxes required to be withheld (at their minimum withholding levels),   (ii) accepting payment of the withholdings from a broker in connection   with a sale of the RSU Shares or directly from you, or (iii) taking any   other action under Section 14(c) of the Plan. If a fractional share   remains after deduction for required withholding, the Company will pay you   the value of the fraction in cash.
    
	
 
    	
 
    	
 
    
	
Compliance   
   with Law
    	
 
    	
The   Company will not issue the RSU Shares if doing so would violate any   applicable Federal or state securities laws or other laws or regulations. You   may not sell or otherwise dispose of the RSU Shares in violation of   applicable law.
    
	
 
    	
 
    	
 
    
	
Additional   
   Conditions 
   to Receipt
    	
 
    	
The   Company may postpone issuing and delivering any RSU Shares for so long as the   Company determines to be advisable to satisfy the following:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
its   completing or amending any securities registration or qualification of the   RSU Shares or its or your satisfying any   exemption from registration under any Federal or state law, rule, or   regulation;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
its   receiving proof it considers satisfactory that a person seeking to receive   the RSU Shares after your death is entitled to do so;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
your   complying with any requests for representations under the Plan; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
your   complying with any Federal, state, or local tax withholding obligations.
    
	
 
    	
 
    	
 
    
	
Additional   
   Representations 
   from You
    	
 
    	
If   the vesting provisions of the RSUs are satisfied and you are entitled to   receive RSU Shares at a time when the Company does not have a current   registration statement (generally on Form S-8) under the Securities Act   of 1933 (the “Act”) that covers issuances   of shares to you, you must comply with the following before the Company will   issue the RSU Shares to you. You must —
    

 

4

 

	
 
    	
 
    	
represent to the Company, in a manner satisfactory to the Company’s   counsel, that you are acquiring the RSU Shares for your own account and not   with a view to reselling or distributing the RSU Shares; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
agree   that you will not sell, transfer, or otherwise dispose of the RSU Shares   unless:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
a registration statement under the Act is effective at the time of   disposition with respect to the RSU Shares you propose to sell, transfer, or   otherwise dispose of; or
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
the Company has received an opinion of counsel or other information   and representations it considers satisfactory to the effect that, because of   Rule 144 under the Act or otherwise, no registration under the Act is   required.
    
	
 
    	
 
    	
 
    
	
No   Effect on 
   Employment 
   or Other 
   Relationship
    	
 
    	
Nothing   in this Grant Agreement restricts the Company’s rights or those of any of its   Affiliates to terminate your employment or other relationship at any time and   for any or no reason. The termination of employment or other relationship,   whether by the Company or any of its Affiliates or otherwise, and regardless   of the reason for such termination, has the consequences provided for under   the Plan and any applicable employment or severance agreement or plan.
    
	
 
    	
 
    	
 
    
	
Limited Status
    	
 
    	
You   understand and agree that the Company will not consider you a shareholder for   any purpose with respect to the RSU Shares, unless and until the RSU Shares   have been issued to you on the Distribution Date. You will not receive dividends   with respect to the RSUs, but the Company will credit additional whole or   fractional RSUs to this Grant equal to the result of dividing (i) the   product of the total number of RSUs credited to you under this Grant on the   record date for such dividend (and not yet distributed in Shares) and the per   share amount of such dividend by (ii) the Fair Market Value of one Share   on the date such dividend is paid by the Company to shareholders. The   additional RSUs will be or become Vested to the same extent as the RSUs that   resulted in the crediting of such additional Units and may be paid out in   cash or Shares under the timing rules provided in   Section 8(e) of the Plan.
    
	
 
    	
 
    	
 
    
	
Voting
    	
 
    	
You   may not vote the RSUs. You may not vote the RSU Shares unless and until the Shares   are distributed to you.
    
	
 
    	
 
    	
 
    
	
No   Effect on 
   Running Business
    	
 
    	
You   understand and agree that the existence of the RSUs will not affect in any   way the right or power of the Company or its shareholders to make or   authorize any adjustments, recapitalizations, reorganizations, or other   changes in the Company’s capital structure or its business, or any merger or   consolidation of the Company, or any issuance of bonds, debentures, preferred   or other stock, with preference ahead of or convertible into, or otherwise   affecting the Company’s common stock or the rights thereof, or the   dissolution or liquidation of the Company, or any sale or transfer of all or   any part of its assets or business, or any other corporate act or proceeding,   whether or not of a similar character to those described above.
    
	
 
    	
 
    	
 
    
	
Section 409A
    	
 
    	
The   RSUs are intended to comply with the requirements of Section 409A and   must be construed consistently with that section. Notwithstanding anything in   the Plan or this Grant Agreement to the contrary, if the RSUs Vest in   connection with
    

 

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your “separation from service” within the meaning of   Section 409A, as determined by the Company), and if (x) you are then a “specified employee” within the   meaning of Section 409A at the time of such separation from service (as   determined by the Company, by which determination you agree you are bound)   and (y) the distribution of RSU Shares under such RSUs will result in   the imposition of additional tax under Section 409A if distributed to   you within the six month period following your separation from service, then   the distribution under such accelerated RSUs will not be made until the   earlier of (i) the date six months and one day following the date of your   separation from service or (ii) the 10th day after your date of death.  Neither the Company nor you shall have the   right to accelerate or defer the delivery of any such RSU Shares or benefits   except to the extent specifically permitted or required by Section 409A.  In no event may the Company or you defer   the delivery of the RSU Shares beyond the date specified in the Distribution Date section, unless such deferral complies   in all respects with Treasury Regulation   Section 1.409A-2(b) related to subsequent changes in the time or   form of payment of nonqualified deferred compensation arrangements, or any   successor regulation.  In any event, the Company makes no representations or warranty and   shall have no liability to you or any other person, if any provisions of or distributions   under this Grant Agreement are determined to constitute deferred compensation   subject to Section 409A but not to satisfy the conditions of that   section.
    
	
 
    	
 
    	
 
    
	
Unsecured 
   Creditor
    	
 
    	
The   RSUs create a contractual obligation on the part of the Company to make a   distribution of the RSU Shares at the time provided for in this Grant   Agreement. Neither you nor any other party claiming an interest in deferred   compensation hereunder shall have any interest whatsoever in any specific   assets of the Company. Your right to receive distributions hereunder is that   of an unsecured general creditor of Company.
    
	
 
    	
 
    	
 
    
	
Governing   Law
    	
 
    	
The   laws of the State of New York will govern all matters relating to the RSUs,   without regard to the principles of conflict of laws.
    
	
 
    	
 
    	
 
    
	
Notices
    	
 
    	
Any   notice you give to the Company must follow the procedures then in effect. If   no other procedures apply, you must send your notice in writing by hand or by   mail to the office of the Company’s Secretary (or to the Chair of the   Committee if you are then serving as the sole Secretary). If mailed, you   should address it to the Company’s Secretary (or the Chair of the Committee)   at the Company’s then corporate headquarters, unless the Company directs Plan   participants to send notices to another corporate department or to a third   party administrator or specifies another method of transmitting notice. The   Company and the Committee will address any notices to you using its standard   electronic communications methods or at your office or home address as reflected   on the Company’s personnel or other business records. You and the Company may   change the address for notice by like notice to the other, and the Company   can also change the address for notice by general announcements to Plan   participants.
    
	
 
    	
 
    	
 
    
	
Amendment
    	
 
    	
Subject   to any required action by the Committee or the shareholders of the Company,   the Company may cancel the RSUs and provide a new Award in its place,   provided that the Award so replaced will satisfy all of the requirements of   the Plan as of the date such new Award is made and no such action will   adversely affect the RSUs to the extent then Vested.
    

 

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Plan   Governs
    	
 
    	
Wherever   a conflict may arise between the terms of this Grant Agreement and the terms   of the Plan, the terms of the Plan will control.  The Committee may adjust the number of RSU   Shares and other terms of the RSUs from time to time as the Plan provides.
    

 

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