Document:

Exhibit 10.1

 

Execution Copy

 

 

 

 

 

 

 

 

_________________________________

 

 

 

 

AMENDED
AND RESTATED

 

EMPLOYMENT
AGREEMENT

 

BETWEEN

 

KEITH
G. MYERS

 

AND

 

LHC
GROUP, INC.

 

 

 

_________________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

Table Of Contents

 

	 	 	Page
	1.	Position/Responsibilities	1
	2.	Term	1
	3.	Extent of Service	2
	4.	Compensation and Benefits	2
	5.	Change of Control	3
	6.	Termination of Employment	5
	7.	Obligations of the Company upon Termination	7
	8.	Non-exclusivity of Rights	10
	9.	Full Settlement; No Obligation to Mitigate	10
	10.	Certain Additional Payments by the Company	11
	11.	Costs of Enforcement	12
	12.	Restrictions on Conduct of Executive.	12
	13.	Consent to Jurisdiction	17
	14.	Assignment and Successors	18
	15.	Miscellaneous.	18

 

 

     

     

    

 

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT
(this “Agreement”) by and between LHC Group, Inc., a Delaware corporation (the “Company”), and Keith G.
Myers (“Executive”), is dated as of April 1, 2017 (the “Agreement Date”).

 

BACKGROUND

 

WHEREAS, the Company and Executive are parties
to that certain Amended and Restated Employment Agreement dated as of April 1, 2014 (the “Original Agreement”), pursuant
to which Executive currently serves as the chief executive officer of the Company;

 

WHEREAS, the Original Agreement had an initial
term through March 31, 2017 and the Company desires to retain the services of Executive and engage Executive as Chief Executive
Officer from and after the Agreement Date, in accordance with the terms of this Agreement and Executive is willing to serve as
such in accordance with the terms and conditions of this Agreement; and

 

WHEREAS, the Original Agreement, and any other
prior employment agreements between Executive and the Company, shall be terminated upon the Agreement Date and neither party shall
have any further obligations under any such terminated employment agreements.

 

NOW, THEREFORE, in consideration of the foregoing
and of the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                 
Position; Responsibilities. Executive is hereby employed as Chief Executive Officer of the Company. In his capacity
as Chief Executive Officer of the Company, Executive shall have the duties, responsibilities and authority commensurate with such
position as shall be assigned to him by the Board of Directors of the Company. In his capacity as Chief Executive Officer of the
Company, Executive will report directly to the Board of Directors of the Company. During the Term (defined below), provided that
Executive has been elected by the Company’s stockholders to serve on the Company’s Board of Directors, Executive shall
serve as the Chairman of the Board, with responsibility for leading and ensuring the overall effectiveness of the Board. Additionally,
as Chairman, Executive will be the primary liaison between the Company’s management team and the Board, and will coordinate
with the Lead Independent Director in the fulfillment of his or her duties and initiatives.

 

2.                 
Term. Executive’s employment shall be governed by the terms and conditions of this Agreement for a period beginning
on the Agreement Date and ending on March 31, 2020 (the “Term”). Beginning on April 1, 2020, and on each subsequent
April 1 thereafter, the Term shall, without further action by Executive or the Company, be extended by an additional one (1)-year
period; provided, however, that either the Company or Executive may, by notice to the other given at least six (6) months
prior to the scheduled expiration of the Term or any then-current renewal term, cause the Term or such then-current renewal period
to cease to extend automatically. Upon such notice, the Term shall terminate upon the expiration of the then-current term, including
any prior extensions. Notwithstanding the foregoing, following the occurrence of a Change of Control, the Company may not cause
the Term to expire earlier than the second (2nd) anniversary of the Change of Control.

 

    	 	1	 

     

    

 

3.                 
Extent of Service. During the Term, and excluding any periods of vacation, holiday, sick leave and Company-approved
leave of absence to which Executive is entitled in accordance with Company policies, Executive agrees to devote substantially all
of his business time, attention, skill and efforts exclusively to the faithful performance of his duties hereunder. It shall not
be a violation of this Agreement for Executive to (i) devote reasonable time to charitable or community activities, (ii) serve
on corporate, civic, educational or charitable boards or committees, subject to the Company’s standards of business conduct
or other code of ethics, (iii) deliver lectures or fulfill speaking engagements from time to time on an infrequent basis, and/or
(iv) manage personal business interests and investments, subject to the Company’s standards of business conduct or other
code of ethics, and so long as such activities do not interfere in a material manner or on a routine basis with the performance
of Executive’s responsibilities under this Agreement.

 

4.                 
Compensation and Benefits.

 

(a)               
Base Salary. During the Term, the Company will pay to Executive base salary at the rate of Seven Hundred Thirty-Five
Thousand Dollars ($735,000) per year (“Base Salary”), less normal withholdings, payable in approximately equal bi-weekly
or other installments as are or become customary under the Company’s payroll practices for its employees from time to time.
The Compensation Committee of the Board of Directors of the Company (or the full Board, if there is no Compensation Committee)
shall review Executive’s Base Salary annually and may increase (but not decrease) Executive’s Base Salary from year
to year. Such adjusted salary then shall become Executive’s Base Salary for purposes of this Agreement. The annual review
of Executive’s salary by the Board will consider, among other things, Executive’s own performance, and the Company’s
performance.

 

(b)              
Incentive, Savings and Retirement Plans During the Term, Executive shall be entitled to participate in all incentive,
savings and retirement plans, practices, policies and programs available to senior executive officers of the Company (“Peer
Executives”). Without limiting the foregoing, the following shall apply:

 

(i)                
during the Term, Executive will be entitled to participate in the Company’s executive bonus plan, pursuant to which
he will have an opportunity to receive an annual cash bonus based upon the achievement of performance goals established from year
to year by the Compensation Committee of the Board of Directors of the Company (such bonus earned at the stated “goal”
level of achievement being referred to herein as the “Target Bonus”); and

 

(ii)              
during the Term, Executive will be eligible for grants, under the Company’s long-term incentive plan or plans, of
stock options and/or restricted stock awards (or such other stock-based awards as the Company makes to Peer Executives). Nothing
herein requires the Board of Directors to make grants of options or other awards in any year.

 

    	 	2	 

     

    

 

(c)               
Welfare Benefit Plans. During the Term, Executive and Executive’s eligible dependents shall be eligible for
participation in, and shall receive all benefits under, the welfare benefit plans, practices, policies and programs provided by
the Company (including, without limitation, medical, prescription drug, dental, disability, employee life, dependent life, accidental
death and travel accident insurance plans and programs) (“Welfare Plans”) to the extent available to other Peer Executives.

 

(d)              
Expenses. During the Term, Executive shall be entitled to receive prompt reimbursement for all reasonable expenses
incurred by Executive in the course of performing his duties and responsibilities under this Agreement, in accordance with the
policies, practices and procedures of the Company to the extent available to other Peer Executives with respect to travel, entertainment
and other business expenses.

 

(e)               
Fringe Benefits. During the Term, Executive shall be entitled to fringe benefits in accordance with the plans, practices,
programs and policies of the Company available to other Peer Executives.

 

(f)               
Vacation. During the Term, Executive will be entitled to such paid vacation time as may be provided from time to
time under any plans, practices, programs and policies of the Company available to other Peer Executives.

 

(g)              
Office and Support Staff. During the Term, Executive will be entitled to office, furnishings and equipment of similar
type and quality made available to other Peer Executives. During the Term, Executive will be entitled to secretarial and other
assistance reasonably necessary for the performance of his duties and responsibilities.

 

(h)              
Annual Compensation Review. As set forth in Section 4(a) herein, on an annual basis the Compensation Committee of
the Board of Directors of the Company shall conduct an overall review of Executive’s compensation package including base
salary, short term incentives and long-term incentives. This review shall be based on input from the Board of Directors of the
Company and a review of Executive’s performance and the Company’s performance. In addition, on an annual basis, the
Chair of the Compensation Committee shall review with Executive his compensation package, including any compensation surveys and
other comparable data used by the Compensation Committee to establish Executive’s compensation package. As set forth above,
this review will not result in a decrease in Executive’s Base Salary from the previous year.

 

5.                 
Change of Control. For the purposes of this Agreement, a “Change of Control” shall mean the occurrence
of any of the following events:

 

(a)               
individuals who, on the Agreement Date, constitute the Board of Directors of the Company (the “Incumbent Directors”)
cease for any reason to constitute at least a majority of such Board, provided that any person becoming a director after the Agreement
Date and whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then
on the Board shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director
of the Company as a result of an actual or threatened election contest with respect to the election or removal of directors (“Election
Contest”) or other actual or threatened solicitation of proxies or consents by or on behalf of any “person” (such
term for purposes of this Section 5 being as defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the “Exchange
Act”) and as used in Section 13(d)(3) and 14(d)(2) of the Exchange Act) other than the Board (“Proxy Contest”),
including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent
Director; or

 

    	 	3	 

     

    

 

(b)              
any person is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of either (i) thirty-five percent (35%) or more of the then-outstanding shares of common stock of the Company (“Company
Common Stock”) or (ii) securities of the Company representing thirty-five percent (35%) or more of the combined voting power
of the Company’s then outstanding securities eligible to vote for the election of directors (the “Company Voting Securities”);
provided, however, that for purposes of this paragraph (b), the following acquisitions of Company Common Stock or Company
Voting Securities shall not constitute a Change of Control: (A) an acquisition directly from the Company, (B) an acquisition by
the Company or a subsidiary of the Company, (C) an acquisition by any employee benefit plan (or related trust) sponsored or maintained
by the Company or any subsidiary of the Company, or (D) an acquisition pursuant to a Non-Qualifying Transaction (as defined in
paragraph (c) below); or

 

(c)               
the consummation of a recapitalization, reorganization, merger, consolidation, statutory share exchange or similar form
of transaction involving the Company or a subsidiary of the Company (a “Reorganization”), or the sale or other disposition
of all or substantially all of the Company’s assets (a “Sale”) or the acquisition of assets or stock of another
entity (an “Acquisition”), unless immediately following such Reorganization, Sale or Acquisition: (A) all or substantially
all of the individuals and entities who were the beneficial owners, respectively, of the outstanding Company Common Stock and outstanding
Company Voting Securities immediately prior to such Reorganization, Sale or Acquisition beneficially own, directly or indirectly,
more than fifty percent (50%) of, respectively, the then outstanding shares of common stock and the combined voting power of the
then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting
from or surviving such Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result of such
transaction owns the Company or all or substantially all of the Company’s assets or stock either directly or through one
or more subsidiary entities, the “Surviving Entity”) in substantially the same proportions as their ownership, immediately
prior to such Reorganization, Sale or Acquisition, of the outstanding Company Common Stock and the outstanding Company Voting Securities,
as the case may be, and (B) no person (other than (x) the Company or any subsidiary of the Company, (y) the Surviving Entity or
its ultimate parent entity, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing)
is the beneficial owner, directly or indirectly, of thirty-five percent (35%) or more of the total common stock or thirty-five
percent (35%) or more of the total voting power of the outstanding voting securities eligible to elect directors of the Surviving
Entity, and (C) at least a majority of the members of the board of directors of the Surviving Entity were Incumbent Directors at
the time of the Board’s approval of the execution of the initial agreement providing for such Reorganization, Sale or Acquisition
(any Reorganization, Sale or Acquisition which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed
to be a “Non-Qualifying Transaction”); or

 

    	 	4	 

     

    

 

(d)              
approval by the members or stockholders of the Company, as the case may be, of a complete liquidation or dissolution of
the Company.

 

6.                 
Termination of Employment.

 

(a)               
Death or Retirement. Executive’s employment shall terminate automatically upon Executive’s death or Retirement
during the Term. For purposes of this Agreement, “Retirement” shall mean normal retirement as defined in the Company’s
then-current retirement plan, or if there is no such retirement plan, “Retirement” shall mean voluntary termination
after age sixty-five (65) with at least ten (10) years of service.

 

(b)              
Disability. If the Company determines in good faith that the Disability (as defined below) of Executive has occurred
during the Term, it may give to Executive written notice of its intention to terminate Executive’s employment. In such event,
Executive’s employment with the Company shall terminate effective on the thirtieth (30th) day after receipt of such written
notice by Executive (the “Disability Effective Date”), provided that, within the thirty (30) days after such receipt,
Executive shall not have returned to full-time performance of Executive’s duties. For purposes of this Agreement, “Disability”
shall have the same meaning as provided in the long-term disability plan or policy maintained by the Company and covering Executive.
If no such long-term disability plan or policy is maintained, “Disability” shall mean the inability of Executive, as
determined by the Board of Directors, to perform the essential functions of his regular duties and responsibilities, with or without
reasonable accommodation, due to a medically determinable physical or mental illness which has lasted (or can reasonably be expected
to last) for a period of six (6) consecutive months.

 

(c)               
Termination by the Company. The Company may terminate Executive’s employment during the Term with or without
Cause. For purposes of this Agreement, “Cause” shall mean:

 

(i)                
any conduct by Executive involving moral turpitude that has a material adverse impact on the Company or on Executive’s
ability to perform his duties hereunder;

 

(ii)              
Executive’s commission or conviction of, or pleading guilty or nolo contendere (or any similar plea or admission)
to, a felony or a criminal act involving dishonesty or other moral turpitude;

 

(iii)            
any failure to abide by any material laws applicable to him in his capacity as an employee or executive of the Company or
applicable to the Company or any of its parents or subsidiaries;

 

(iv)            
any failure or refusal on the part of Executive to perform his duties under this Agreement or to obey lawful directives
from the Board of Directors, or its designees, if not remedied within ten (10) business days after Company’s providing notice
thereof;

 

(v)              
any violation of any policy of Company relating to equal employment opportunity, harassment, business conduct or conflict
of interest;

 

    	 	5	 

     

    

 

(vi)            
use of illegal drugs, abuse of other controlled substances or working under the influence of alcohol or other controlled
substances; and

 

(vii)          
any breach by Executive of any obligation under this Agreement if not remedied within ten (10) business days after Company’s
providing notice thereof.

 

(d)              
Termination by Executive. Executive’s employment may be terminated by Executive during the Term for Good Reason
or no reason. For purposes of this Agreement, unless written consent of Executive is obtained, “Good Reason” shall
mean:

 

(i)                
a material reduction by the Company in Executive’s Base Salary as in effect on the Agreement Date (which reduction
in Base Salary is not permitted by Section 4(a) hereof) or as the same may be increased from time to time;

 

(ii)              
any failure by the Company to comply with and satisfy 16(c) of this Agreement;

 

(iii)            
the material breach by the Company of any of the financial obligations of Company set forth in this Agreement;

 

(iv)            
after the occurrence of a Change of Control, a material diminution in Executive’s position, authority, duties or responsibilities;
or

 

(v)              
after the occurrence of a Change of Control, a change in the geographic location greater than a seventy-five (75)-mile radius
from Lafayette, LA at which Executive must perform services or be required to maintain an office.

 

Any claim of “Good Reason” under
this Agreement shall be communicated by Executive to the Company in writing, which writing shall specifically identify the factual
details concerning the event(s) giving rise to Executive’s claim of Good Reason under this Section 6(d). The Company shall
have an opportunity to cure any claimed event of Good Reason within thirty (30) days of such notice from Executive. Good Reason
shall cease to exist for an event or condition described in clauses (i), (ii) and (iii) above on the ninetieth (90th)
day following its occurrence, unless Executive has given the Company written notice thereof prior to such date.

 

(e)               
Notice of Termination. Any termination by the Company for Cause, or by Executive for Good Reason, shall be communicated
by Notice of Termination to the other party hereto given in accordance with Section 15(f) of this Agreement. For purposes of this
Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision
in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of Executive’s employment under the provision so indicated, and (iii) specifies the termination
date. The failure by Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes
to a showing of Good Reason or Cause shall not waive any right of Executive or the Company, respectively, hereunder or preclude
Executive or the Company, respectively, from asserting such fact or circumstance in enforcing Executive’s or the Company’s
rights hereunder.

 

    	 	6	 

     

    

 

(f)               
Date of Termination. “Date of Termination” means (i) if Executive’s employment is terminated by
the Company for Cause, or by Executive for Good Reason, the date of receipt of the Notice of Termination or a date within thirty
(30) days after receipt of the Notice of Termination, as specified in such notice, (ii) if Executive’s employment is terminated
by the Company other than for Cause or Disability, the Date of Termination shall be the date of receipt of the Notice of Termination
or a date within ninety (90) days after receipt of the Notice of Termination, as specified in such notice, (iii) if Executive’s
employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of Executive or the
Disability Effective Date, as the case may be, and (iv) if Executive’s employment is terminated by Executive without Good
Reason, the Date of Termination shall be sixty (60) days following the Company’s receipt of the Notice of Termination, unless
the Company specifies an earlier Date of Termination.

 

7.                 
Obligations of the Company upon Termination.

 

(a)               
Termination by Executive for Good Reason; Termination by the Company Other Than for Cause or Disability. If, during
the Term, the Company shall terminate Executive’s employment other than for Cause or Disability, or Executive shall terminate
employment for Good Reason within a period of one-hundred and eighty (180) days after the occurrence of the event giving rise to
Good Reason, then and, with respect to the payments and benefits described below, only if Executive executes a Release in substantially
the form of Exhibit A hereto (the “Release”):

 

(i)                
the Company shall provide to Executive in a single lump sum cash payment within thirty (30) days after the Date of Termination,
or if later, within five (5) days after the Release becomes effective and nonrevocable (but in no event shall such amount be payable
later than March 15 of the year following the year in with Executive’s employment was terminated), the aggregate of the following
amounts:

 

A.               
the sum of the following amounts, to the extent not previously paid to Executive (the “Accrued Obligations”):
(1) Executive’s Base Salary through the Date of Termination, and (2) any accrued pay in lieu of unused vacation (in accordance
with the Company’s vacation policy; and

 

B.                
a severance payment as determined pursuant to clause (x) or (y) below, as applicable:

 

(x)       if
the Date of Termination occurs before, or more than two (2) years after, the occurrence of a Change of Control, the severance payment
shall be the product of one-and-a-half (1.5) times the sum of (1) Executive’s Base Salary in effect as of the Date of Termination
(ignoring any decrease in Executive’s Base Salary unless consented to by Executive), and (2) the greater of the average of
the annual cash bonuses earned by Executive for the two (2) fiscal years in which annual bonuses were paid immediately preceding
the year in which the Date of Termination occurs, or Executive’s Target Bonus for the year in which the Date of Termination
occurs; or

 

    	 	7	 

     

    

 

(y)       if
the Date of Termination occurs within two (2) years after the occurrence of a Change of Control, the severance payment shall be
the product of two-and-a-half (2.5) times the sum of (1) Executive’s Base Salary in effect as of the Date of Termination,
and (2) the greater of the average of the annual bonuses earned by Executive for the two fiscal years in which annual bonuses were
paid immediately preceding the year in which the Date of Termination occurs, or Executive’s Target Bonus for the year in
which the Date of Termination occurs; and

 

(ii)              
the Company shall pay to Executive, in a single lump sum cash payment at the time that annual bonuses are paid to Peer Executives,
or such later date as may be required pursuant to Section 15(i), an annual bonus for the year in which the Date of Termination
occurs, equal to (i) the bonus, if any, that would have been earned by Executive under the annual incentive bonus plan for such
year if he had remained employed on such payment date, based on actual performance under applicable financial metrics, multiplied
by (ii) a fraction, the numerator of which is the number of days worked by Executive during such final year and the denominator
of which is three-hundred and sixty-five (365) (the “Prorated Final Year Bonus”); and

 

(iii)            
to the extent not theretofore paid or provided, the Company shall timely pay or deliver, as appropriate, all other benefits
due to Executive pursuant to any employee benefit plans or incentive plans maintained by the Company with respect to services rendered
by Executive prior to the Date of Termination (such other amounts and benefits shall be hereinafter referred to as the “Other
Benefits”).

 

(iv)            
In addition to the payments and benefits described in clauses (i), (ii) and (iii) above, Executive shall be entitled to
the following additional benefits:

 

A.               
If the Date of Termination occurs within two (2) years after the occurrence of a Change of Control, all grants of stock
options and other equity awards granted by the Company and held by Executive as of the Date of Termination will become immediately
vested and exercisable as of the Date of Termination and, to the extent necessary, this Agreement is hereby deemed an amendment
of any such outstanding stock option or other equity award;

 

B.                
If the Date of Termination occurs before a Change of Control or two (2) years following the occurrence of a Change of Control,
then, except as provided below, all grants of stock options and other equity awards granted by the Company and held by Executive
as of the Date of Termination will remain outstanding and will (i) continue to vest and become exercisable in accordance with their
current vesting schedule provided that Executive continues to comply with the provisions of Section 13 hereof following the Date
of Termination and during the Restricted Period (and any unvested award shall be forfeited in the event Executive breaches any
of the provisions of Section 13 during such period), and (ii) continue to vest and become exercisable in accordance with their
current vesting schedule without condition following the end of the Restricted Period provided that Executive complied with the
provisions of Section 13 hereof during the Restricted Period. Notwithstanding the foregoing, if Executive incurs a tax liability
with respect to an award of restricted stock prior to the time the restrictions on such restricted stock would lapse in accordance
with this Section 7(a)(iv)(B), the restrictions shall lapse on the date such tax liability arises with respect to the number of
whole shares of the Company’s common stock having a fair market value at such time no greater than the amount required to
satisfy all tax withholding requirements applicable thereto. The Company shall withhold such released shares to satisfy such withholding
obligations, and any unvested shares of restricted stock will be subject to the remaining vesting schedule. To the extent necessary,
this Agreement is hereby deemed an amendment of any such outstanding stock option or other equity award; and

 

    	 	8	 

     

    

 

C.                
If Executive elects to continue participation in any group medical, dental, vision and/or prescription drug plan benefits
to which Executive and/or Executive’s eligible dependents would be entitled under Section 4980B of the Code (COBRA), then
during the period that Executive is entitled to such coverage under COBRA (the “Coverage Period”), the Company shall
pay the excess of (i) the COBRA cost of such coverage, over (ii) the amount that Executive would have had to pay for such coverage
if he had remained employed during the Coverage Period and paid the active employee rate for such coverage, provided, however,
that the cost so paid on behalf of Executive by the Company will be deemed taxable income to Executive to the extent required by
law, and provided, further, that if Executive becomes eligible to receive group health benefits under a program of a subsequent
employer or otherwise (including coverage available to Executive’s spouse), the Company’s obligation to pay the cost
of health coverage as described herein shall cease, except as otherwise provided by law.

 

If Executive’s employment is terminated
by the Company without Cause prior to the occurrence of a Change of Control and if it can reasonably be shown that Executive’s
termination (i) was at the direction or request of a third party that had taken steps reasonably calculated to effect a Change
of Control after such termination, or (ii) otherwise occurred in anticipation of a Change of Control, and in either case a Change
of Control as defined hereunder does, in fact, occur, then Executive shall have the rights described in this Section 7(a) as if
the Change of Control had occurred on the date immediately preceding the Date of Termination.

 

Executive acknowledges and agrees that the receipt
of severance benefits provided in this Section 7(a) constitutes consideration for the restrictions on the conduct of Executive
contained in Section 12 of this Agreement.

 

(b)              
Death or Disability. If Executive’s employment is terminated by reason of his death or Disability during the
Term, all grants of stock options and other equity awards granted by the Company and held by Executive will become immediately
vested and exercisable as of the Date of Termination (and this Agreement is hereby deemed an amendment of any such outstanding
stock option or other equity award to the extent necessary), and this Agreement shall terminate without further obligations to
Executive or his estate, beneficiaries or legal representatives, other than for payment of Accrued Obligations and the timely payment
or provision of Other Benefits. Accrued Obligations shall be paid to Executive or his estate, beneficiary or legal representative,
as applicable, in a lump sum in cash within thirty (30) days of the Date of Termination. With respect to the provision of Other
Benefits, the term Other Benefits as used in this Section 7(b) shall include, without limitation, and Executive or his estate,
beneficiaries or legal representatives, as applicable, shall be entitled to receive, benefits under such plans, programs, practices
and policies relating to death, disability or retirement benefits, if any, as are applicable to Executive or his family on the
Date of Termination.

 

    	 	9	 

     

    

 

(c)               
Cause, Voluntary Termination without Good Reason or Retirement. If Executive’s employment shall be terminated
for Cause during the Term, or if Executive voluntarily terminates employment during the Term without Good Reason or by reason of
his Retirement, this Agreement shall terminate without further obligations to Executive, other than for payment of Accrued Obligations
and the timely payment or provision of Other Benefits.

 

(d)              
Expiration of Term Following Notice. If either party gives notice under Section 2 to cause the Term to cease to extend
automatically, this Agreement shall terminate without further obligations to Executive upon the expiration of the then-current
term, provided, however, that if it is the Company who gives notice to Executive under Section 2 to cause the Term to cease
to extend automatically, then upon Executive’s termination of employment following such notice, all grants of stock options
and other equity awards granted by the Company and held by Executive as of the Date of Termination will remain outstanding and
will continue to vest and become exercisable in accordance with their current vesting schedule for so long as Executive voluntarily
complies with the restrictions of Section 13 hereof following the Date of Termination as if such restrictions applied to Executive.
Any unvested award shall be forfeited upon Executive’s failure to comply with any of the restrictions of Section 13 as if
such restrictions applied to Executive. To the extent necessary, this Agreement is hereby deemed an amendment of any such outstanding
stock option or other equity award.

 

(e)               
Resignations. Termination of Executive’s employment for any reason whatsoever shall constitute Executive’s
resignation as an officer of the Company, its subsidiaries and affiliates.

 

8.                 
Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit Executive’s continuing or future
participation in any employee benefit plan, program, policy or practice provided by the Company and for which Executive may qualify,
except as specifically provided herein. Amounts which are vested benefits or which Executive is otherwise entitled to receive under
any employee benefit plan, policy, practice or program of the Company, its subsidiaries or any of its affiliated companies at or
subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program except as explicitly
modified by this Agreement.

 

9.                 
Full Settlement; No Obligation to Mitigate. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense
or other claim, right or action which the Company may have against Executive or others. In no event shall Executive be obligated
to seek other employment or take any other action by way of mitigation of the amounts payable to Executive under any of the provisions
of this Agreement and, except as explicitly provided herein, such amounts shall not be reduced whether or not Executive obtains
other employment.

 

    	 	10	 

     

    

 

10.             
Certain Additional Payments by the Company.

 

(a)               
Notwithstanding any other contrary provisions in any plan, program or policy of the Company, if all or any portion of the
benefits payable under this Agreement, either alone or together with other payments and benefits which Executive receives or is
entitled to receive from the Company, would constitute a “parachute payment” within the meaning of Section 280G of
the Internal Revenue Code of 1986, as amended (the “Code”), the Company shall reduce Executive’s payments and
benefits payable under this Agreement to the extent necessary so that no portion thereof shall be subject to the excise tax imposed
by Section 4999 of the Code, but only if, by reason of such reduction, the net after-tax benefit shall exceed the net after-tax
benefit if such reduction were not made. “Net after-tax benefit” for these purposes shall mean the sum of (i) the total
amount payable to Executive under the Agreement, plus (ii) all other payments and benefits which Executive receives or is then
entitled to receive from the Company that, alone or in combination with the payments and benefits payable under the Agreement,
would constitute a “parachute payment” within the meaning of Section 280G of the Code (each such benefit hereinafter
referred to as an “Additional Parachute Payment”), less (iii) the amount of federal income taxes payable with respect
to the foregoing calculated at the maximum marginal income tax rate for each year in which the foregoing shall be paid to Executive
(based upon the rate in effect for such year as set forth in the Code at the time of the payment under the Agreement), less (iv)
the amount of excise taxes imposed with respect to the payments and benefits described in (i) and (ii) above by Section 4999 of
the Code. The parachute payments reduced shall be those that provide Executive the best economic benefit and to the extent any
parachute payments are economically equivalent with each other, each shall be reduced pro rata; provided, however, that
Executive may elect to have the non-cash payments and benefits due Executive reduced (or eliminated) prior to any reduction of
the cash payments due under this Agreement.

 

(b)              
All determinations required to be made under this Section 10 shall be made by the accounting firm that was the Company’s
independent auditor prior to the Change of Control or any other third party acceptable to Executive and the Company (the “Accounting
Firm”). The Accounting Firm shall provide detailed supporting calculations both to the Company and Executive. All fees and
expenses of the Accounting Firm shall be borne solely by the Company as set forth in Section 11(b) hereof. Absent manifest error,
any determination by the Accounting Firm shall be binding upon the Company and Executive.

 

(c)               
For purposes of determining whether and the extent to which any payments would constitute a “parachute payment”
(i) no portion of any payments or benefits that Executive shall have waived at such time and in such manner as not to constitute
a “payment” within the meaning of Section 280G(b) of the Code shall be taken into account, (ii) no portion of the payments
shall be taken into account which, in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to Executive
and selected by the Accounting Firm, does not constitute a “parachute payment” within the meaning of Section 280G(b)(2)
of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the excise tax, no portion of such payments
shall be taken into account which, in the opinion of Tax Counsel, constitutes reasonable compensation for services actually rendered,
within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (within the meaning set forth
in Section 280G(b)(3) of the Code) allocable to such reasonable compensation, and (iii) the value of any non-cash benefit or any
deferred payment or benefit included in the payments shall be determined by the Accounting Firm in accordance with the principles
of Sections 280G(d)(3) and (4) of the Code.

 

    	 	11	 

     

    

 

11.             
Costs of Enforcement.

 

(a)               
In any action taken in good faith relating to the enforcement of this Agreement or any provision herein, Executive shall
be entitled to reimbursement for any and all costs and expenses incurred by him in enforcing or establishing his rights thereunder,
including, without limitation, reasonable attorneys' fees, whether suit be brought or not, and whether or not incurred in arbitration,
trial, bankruptcy or appellate proceedings, but only if and to the extent Executive is successful in asserting such rights. If
Executive becomes entitled to recover fees and expenses under this Section 11(a), the reimbursement of an eligible expense shall
be made within ten (10) business days after delivery of Executive’s respective written requests for payment accompanied with
such evidence of fees and expenses incurred as the Company reasonably may require, but in no event later than March 15 of the year
after the year in which such rights are established.

 

(b)              
Executive shall also be entitled to be paid all reasonable legal fees and expenses, if any, incurred in connection with
any tax audit or proceeding to the extent attributable to the application of Section 4999 of the Internal Revenue Code to any payment
or benefit hereunder. Such reimbursement of expenses shall be made on a current basis, as incurred, and in no event later than
December 31 of the year following the calendar year in which the taxes that are the subject of the audit or proceeding are remitted
to the taxing authority, or where as a result of such audit or proceeding no taxes are remitted, December 31 of the year following
the calendar year in which the audit is completed or there is a final and nonappealable settlement or other resolution of the proceeding.

 

12.             
Restrictions on Conduct of Executive.

 

(a)               
General. Executive and the Company understand and agree that the purpose of the provisions of this Section 12 is
to protect legitimate business interests of the Company, as more fully described below, and is not intended to impair or infringe
upon Executive’s right to work, earn a living, or acquire and possess property from the fruits of his labor. Executive hereby
acknowledges that Executive has received good and valuable consideration for the post-employment restrictions set forth in this
Section 12 in the form of the compensation and benefits provided for herein. Executive hereby further acknowledges that the post-employment
restrictions set forth in this Section 12 are reasonable and that they do not, and will not, unduly impair his ability to earn
a living after the termination of this Agreement.

 

In addition, the parties acknowledge: (A) that
Executive’s services under this Agreement require unique expertise and talent in the provision of Competitive Services and
that Executive will have substantial contacts with customers, suppliers, advertisers and vendors of the Company; (B) that pursuant
to this Agreement, Executive will be placed in a position of trust and responsibility and he will have access to a substantial
amount of Confidential Information and Trade Secrets and that the Company is placing him in such position and giving him access
to such information in reliance upon his agreement to abide by the covenants set forth in this Section 12; (C) that due to Executive’s
unique experience and talent, the loss of Executive’s services to the Company under this Agreement cannot reasonably or adequately
be compensated solely by damages in an action at law; (D) that Executive is capable of competing with the Company; and (E) that
Executive is capable of obtaining gainful, lucrative and desirable employment that does not violate the restrictions contained
in this Agreement.

 

    	 	12	 

     

    

 

Therefore, Executive shall be subject to the
restrictions set forth in this Section 12.

 

(b)              
Definitions. The following capitalized terms used in this Section 12 shall have the meanings assigned to them below,
which definitions shall apply to both the singular and the plural forms of such terms:

 

“Competitive Services” means
the business of providing post-acute healthcare services to patients through home nursing agencies, hospices, community based/private
duty agencies and long-term acute care hospitals.

 

“Confidential Information”
means all information regarding the Company, its activities, business or clients that is the subject of reasonable efforts by the
Company to maintain its confidentiality and that is not generally disclosed by practice or authority to persons not employed by
the Company, but that does not rise to the level of a Trade Secret. “Confidential Information” shall include, but is
not limited to, financial plans and data concerning the Company; management planning information; business plans; operational methods;
market studies; marketing plans or strategies; product development techniques or plans; customer lists; customer files, data and
financial information, details of customer contracts; current and anticipated customer requirements; identifying and other information
pertaining to business referral sources; past, current and planned research and development; business acquisition plans; and new
personnel acquisition plans. “Confidential Information” shall not include information that has become generally available
to the public by the act of one who has the right to disclose such information without violating any right or privilege of the
Company. This definition shall not limit any definition of “confidential information” or any equivalent term under
state or federal law.

 

“Determination Date” means
the date of termination of Executive’s employment with the Company for any reason whatsoever or any earlier date (during
the Term) of an alleged breach of the Restrictive Covenants by Executive.

 

“Person” means any individual
or any corporation, partnership, joint venture, limited liability company, association or other entity or enterprise.

 

“Principal or Representative”
means a principal, owner, partner, stockholder, joint venturer, investor, member, trustee, director, officer, manager, employee,
agent, representative or consultant.

 

“Protected Customers” means
any Person to whom the Company has sold its products or services or solicited to sell its products or services, other than through
general advertising targeted at consumers, during the twelve (12) months prior to the Determination Date.

 

    	 	13	 

     

    

 

“Protected Employees” means
employees of the Company who were employed by the Company or its affiliates at any time within six (6) months prior to the Determination
Date, other than those who were discharged by the Company or such affiliated employer without cause.

 

“Restricted Period” means
the Term, and if Executive’s employment is terminated for any reason during the Term or if Executive has given notice to
the Company under Section 2 to cause the Term to cease to extend automatically, the Restricted Period shall mean the Term plus
twenty-four (24) months (or the Term plus six (6) months if Executive’s termination occurs within two (2) years after the
occurrence of a Change of Control); provided, however, that the Restricted Period shall end with respect to the covenants
in clauses (ii), (iii) and (iv) of Section 12(c) on the sixtieth (60th) day after the Date of Termination in the event
the Company breaches its obligation, if any, to make any payment required under Section 7(a)(i).

 

“Restricted Territory” means
the geographical territories described on Exhibit B hereto. The Company and Executive agree that Exhibit B shall
be periodically reviewed and updated as necessary to maintain a current and complete description of the geographic territories
in which the Company does business.

 

“Restrictive Covenants” means
the restrictive covenants contained in Section 12(c) hereof.

 

“Third Party Information”
means confidential or proprietary information subject to a duty on the Company’s and its affiliates’ part to maintain
the confidentiality of such information and to use it only for certain limited purposes.

 

“Trade Secret” means all
information, without regard to form, including, but not limited to, technical or nontechnical data, a formula, a pattern, a compilation,
a program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, distribution
lists or a list of actual or potential customers, advertisers or suppliers which is not commonly known by or available to the public
and which information: (A) derives economic value, actual or potential, from not being generally known to, and not being readily
ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (B) is the subject
of efforts that are reasonable under the circumstances to maintain its secrecy. Without limiting the foregoing, Trade Secret means
any item of confidential information that constitutes a “trade secret(s)” under the common law or statutory law of
the State of Louisiana.

 

“Work Product” means all
inventions, innovations, improvements, developments, methods, processes, programs, designs, analyses, drawings, reports, and all
similar or related information (whether or not patentable) that relate to the Company’s or its affiliates’ actual or
anticipated business, research and development, or existing or future products or services and that are conceived, developed, contributed
to, made, or reduced to practice by Executive (either solely or jointly with others) while employed by the Company or its affiliates.

 

(c)               
Restrictive Covenants.

 

    	 	14	 

     

    

 

(i)                
Restriction on Disclosure and Use of Confidential Information and Trade Secrets. Executive understands and agrees
that the Confidential Information and Trade Secrets constitute valuable assets of the Company and its affiliated entities, and
may not be converted to Executive’s own use. Accordingly, Executive hereby agrees that Executive shall not, directly or indirectly,
at any time during the Restricted Period reveal, divulge, or disclose to any Person not expressly authorized by the Company any
Confidential Information, and Executive shall not, directly or indirectly, at any time during the Restricted Period use or make
use of any Confidential Information in connection with any business activity other than that of the Company. Throughout the Term
and at all times after the date that this Agreement terminates for any reason, Executive shall not directly or indirectly transmit
or disclose any Trade Secret of the Company to any Person, and shall not make use of any such Trade Secret, directly or indirectly,
for himself or for others, without the prior written consent of the Company. The parties acknowledge and agree that this Agreement
is not intended to, and does not, alter either the Company’s rights or Executive’s obligations under any state or federal
statutory or common law regarding trade secrets and unfair trade practices.

 

Anything herein to the contrary
notwithstanding, Executive shall not be restricted from disclosing or using Confidential Information or any Trade Secret that is
required to be disclosed by law, court order or other legal process; provided, however, that in the event disclosure is
required by law, Executive shall provide the Company with prompt notice of such requirement so that the Company may seek an appropriate
protective order prior to any such required disclosure by Executive.

 

Executive acknowledges that any and all
Confidential Information is the exclusive property of the Company and agrees to deliver to the Company on the Date of Termination,
or at any other time the Company may request in writing, any and all Confidential Information which he may then possess or have
under his control in whatever form same may exist, including, but not by way of limitation, hard copy files, soft copy files, computer
disks, and all copies thereof.

 

(ii)              
Nonsolicitation of Protected Employees. Executive understands and agrees that the relationship between the Company
and each of its Protected Employees constitutes a valuable asset of the Company and may not be converted to Executive’s own
use. Accordingly, Executive hereby agrees that during the Restricted Period, Executive shall not directly or indirectly on Executive’s
own behalf or as a Principal or Representative of any Person or otherwise solicit or induce any Protected Employee to terminate
his employment relationship with the Company or to enter into employment with any other Person.

 

(iii)            
Restriction on Relationships with Protected Customers. Executive understands and agrees that the relationship between
the Company and each of its Protected Customers constitutes a valuable asset of the Company and may not be converted to Executive’s
own use. Accordingly, Executive hereby agrees that, during the Restricted Period and in the Restricted Territory, Executive shall
not, without the prior written consent of the Company, directly or indirectly, on Executive’s own behalf or as a Principal
or Representative of any Person, solicit, divert, take away or attempt to solicit, divert or take away a Protected Customer for
the purpose of providing or selling Competitive Services; provided, however, that the prohibition of this covenant shall
apply only to Protected Customers with whom Executive had Material Contact on the Company’s behalf during the twelve (12)
months immediately preceding the Date of Termination; and, provided further, that the prohibition of this covenant shall
not apply to the conduct of general advertising activities. For purposes of this Agreement, Executive had “Material Contact”
with a Protected Customer if (a) he had business dealings with the Protected Customer on the Company’s behalf; (b) he was
responsible for supervising or coordinating the dealings between the Company and the Protected Customer; or (c) he obtained Trade
Secrets or Confidential Information about the customer as a result of his association with the Company.

 

    	 	15	 

     

    

 

(iv)            
Noncompetition with the Company. In consideration of the compensation and benefits being paid and to be paid by the
Company to Executive hereunder, Executive understands and agrees that, during the Restricted Period and within the Restricted Territory,
he shall not, directly or indirectly, carry on or engage in Competitive Services on his own or on behalf of any Person, or any
Principal or Representative of any Person; provided, however, that the provisions of this Agreement shall not be deemed
to prohibit the ownership by Executive of any securities of the Company or its affiliated entities or not more than five percent
(5%) of any class of securities of any corporation having a class of securities registered pursuant to the Exchange Act. Executive
acknowledges that the Restricted Territory is reasonable because the Company carries on and engages in Competitive Services throughout
the Restricted Territory and that in the performance of his duties for the Company he is charged with operating on the Company’s
behalf throughout the Restricted Territory.

 

(v)              
Ownership of Work Product. Executive acknowledges that the Work Product belongs to the Company or its affiliates
and Executive hereby assigns, and agrees to assign, all of the Work Product to the Company or its affiliates. Any copyrightable
work prepared in whole or in part by Executive in the course of his work for any of the foregoing entities shall be deemed a “work
made for hire” under the copyright laws, and the Company or such affiliate shall own all rights therein. To the extent that
any such copyrightable work is not a “work made for hire,” Executive hereby assigns and agrees to assign to the Company
or such affiliate all right, title, and interest, including without limitation, copyright in and to such copyrightable work. Executive
shall promptly disclose such Work Product and copyrightable work to the Board of Directors and perform all actions reasonably requested
by the Board (whether during or after the Term) to establish and confirm the Company’s or such affiliate’s ownership
(including, without limitation, assignments, consents, powers of attorney, and other instruments).

 

(vi)            
Third Party Information. Executive understands that the Company and its affiliates will receive Third Party Information.
During the Term and thereafter, and without in any way limiting the provisions of Section 12(c)(i) above, Executive will hold Third
Party Information in the strictest confidence and will not disclose to anyone (other than personnel of the Company or its affiliates
who need to know such information in connection with their work for the Company or its affiliates) or use, except in connection
with his work for the Company or its affiliates, Third Party Information unless expressly authorized by a member of the Board of
Directors (other than Executive) in writing.

 

(vii)          
Use of Information of Prior Employers. During the Term, Executive will not improperly use or disclose any confidential
information or trade secrets, if any, of any former employers or any other person to whom Executive has an obligation of confidentiality,
and will not bring onto the premises of the Company or any of its affiliates any unpublished documents or any property belonging
to any former employer or any other person to whom Executive has an obligation of confidentiality unless consented to by in writing
the former employer or person. Executive will use in the performance of his duties only information which is (i) generally known
and used by persons with training and experience comparable to Executive’s and which is (x) common knowledge in the industry
or (y) is otherwise legally in the public domain, (ii) is otherwise provided or developed by the Company or its affiliates or (iii)
in the case of materials, property or information belonging to any former employer or other person to whom Executive has an obligation
of confidentiality, approved for such use in writing by such former employer or person.

 

    	 	16	 

     

    

 

(d)              
Enforcement of Restrictive Covenants.

 

(i)                
Rights and Remedies Upon Breach. In the event Executive breaches, or threatens to commit a breach of, any of the
provisions of the Restrictive Covenants, the Company shall have the right and remedy to enjoin, preliminarily and permanently,
Executive from violating or threatening to violate the Restrictive Covenants and to have the Restrictive Covenants specifically
enforced by any court or tribunal of competent jurisdiction, it being agreed that any breach or threatened breach of the Restrictive
Covenants would cause irreparable injury to the Company and that money damages would not provide an adequate remedy to the Company.
Such right and remedy shall be independent of any others and severally enforceable, and shall be in addition to, and not in lieu
of, any other rights and remedies available to the Company at law or in equity.

 

(ii)              
Severability of Covenants. Executive acknowledges and agrees that the Restrictive Covenants are reasonable and valid
in time and scope and in all other respects. The covenants set forth in this Agreement shall be considered and construed as separate
and independent covenants. Should any part or provision of any covenant be held invalid, void or unenforceable, such invalidity,
voidness or unenforceability shall not render invalid, void or unenforceable any other part or provision of this Agreement. If
any portion of the foregoing provisions is found to be invalid or unenforceable because its duration, the territory, the definition
of activities or the definition of information covered is considered to be invalid or unreasonable in scope, the invalid or unreasonable
term shall be redefined, or a new enforceable term provided, such that the intent of the Company and Executive in agreeing to the
provisions of this Agreement will not be impaired and the provision in question shall be enforceable to the fullest extent of the
applicable laws.

 

(iii)            
Reformation. The parties hereunder agree that it is their intention that the Restrictive Covenants be enforced in
accordance with their terms to the maximum extent possible under applicable law. The parties further agree that, in the event any
tribunal of competent jurisdiction shall find that any provision hereof is not enforceable in accordance with its terms, the tribunal
shall reform the Restrictive Covenants such that they shall be enforceable to the maximum extent permissible at law.

 

13.             
Consent to Jurisdiction. The Company and Executive irrevocably consent to the exclusive jurisdiction and venue of
the 15th Judicial District Court in Lafayette, Louisiana, in any judicial proceeding brought to enforce this Agreement. The parties
agree that any forum is an inconvenient forum and that a lawsuit (or non-compulsory counterclaim) brought by one party against
another party, in a court of any jurisdiction other than the 15th Judicial District Court in Lafayette, Louisiana should be forthwith
dismissed or transferred to 15th Judicial District Court in Lafayette, Louisiana.

 

    	 	17	 

     

    

 

14.             
Assignment and Successors.

 

(a)               
This Agreement is personal to Executive and without the prior written consent of the Company shall not be assignable by
Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable
by Executive’s legal representatives.

 

(b)              
This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

 

(c)               
The Company will require any Surviving Entity resulting from a Reorganization, Sale or Acquisition (if other than the Company)
to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required
to perform it if no Reorganization, Sale or Acquisition had taken place. As used in this Agreement, “Company” shall
mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees
to perform this Agreement by operation of law, or otherwise.

 

15.             
Miscellaneous.

 

(a)               
Waiver. Failure of either party to insist, in one or more instances, on performance by the other in strict accordance
with the terms and conditions of this Agreement shall not be deemed a waiver or relinquishment of any right granted in this Agreement
or of the future performance of any such term or condition or of any other term or condition of this Agreement, unless such waiver
is contained in a writing signed by the party making the waiver.

 

(b)              
Severability. If any provision or covenant, or any part thereof, of this Agreement should be held by any tribunal
of competent jurisdiction to be invalid, illegal or unenforceable, either in whole or in part, such invalidity, illegality or unenforceability
shall not affect the validity, legality or enforceability of the remaining provisions or covenants, or any part thereof, of this
Agreement, all of which shall remain in full force and effect.

 

(c)               
Other Agents. Nothing in this Agreement is to be interpreted as limiting the Company from employing other personnel
on such terms and conditions as may be satisfactory to it, except that this Section 15(c) shall not override the provision of Section
6(d)(i).

 

(d)              
Entire Agreement. Except as provided herein, this Agreement contains the entire agreement between the Company and
Executive with respect to the subject matter hereof and, from and after the Agreement Date, this Agreement shall supersede any
other agreement between the parties with respect to the subject matter hereof, including without limitation, the Prior Agreement.

 

    	 	18	 

     

    

 

(e)               
Governing Law. Except to the extent preempted by federal law, and without regard to conflict of laws principles,
the laws of the State of Louisiana shall govern this Agreement in all respects, whether as to its validity, construction, capacity,
performance or otherwise.

 

(f)               
Notices. All notices, requests, demands and other communications required or permitted hereunder shall be in writing
and shall be deemed to have been duly given if delivered or three days after mailing if mailed, first class, certified mail, postage
prepaid:

 

	 	To the Company:	LHC Group, Inc.
	 	 	901 Hugh Wallis Road South
	 	 	Lafayette, LA 70508
	 	 	Attention: Legal Department
	 	 	 
	 	To Executive:	Keith G. Myers
	 	 	402 I-49 North Service Road
	 	 	Sunset, LA 70584

 

Any party may change the address to which notices, requests, demands
and other communications shall be delivered or mailed by giving notice thereof to the other party in the same manner provided herein.

 

(g)              
Amendments and Modifications. This Agreement may be amended or modified only by a writing signed by both parties
hereto, which makes specific reference to this Agreement.

 

(h)              
Construction. Each party and his or its counsel have reviewed this Agreement and have been provided the opportunity
to revise this Agreement and accordingly, the normal rule of construction to the effect that any ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation of this Agreement. Instead, the language of all parts of
this Agreement shall be construed as a whole, and according to its fair meaning, and not strictly for or against either party.

 

(i)                
Code Section 409A. Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that would
constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or
distributable under this Agreement by reason of Executive’s separation from service during a period in which he is a Specified
Employee (as defined below), then, subject to any permissible acceleration of payment by the Company under Treas. Reg. Section
1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes):

 

(i)                
if the payment or distribution is payable in a lump sum, Executive’s right to receive payment or distribution of such
non-exempt deferred compensation will be delayed until the earlier of Executive’s death or the first day of the seventh (7th)
month following Executive’s separation from service; and

 

    	 	19	 

     

    

 

(ii)              
if the payment or distribution is payable over time, the amount of such non-exempt deferred compensation that would otherwise
be payable during the six (6)-month period immediately following Executive’s separation from service will be accumulated
and Executive’s right to receive payment or distribution of such accumulated amount will be delayed until the earlier of
Executive’s death or the first day of the seventh (7th) month following Executive’s separation from service,
whereupon the accumulated amount will be paid or distributed to Executive and the normal payment or distribution schedule for any
remaining payments or distributions will resume.

 

For purposes of this Agreement, the term “Specified
Employee” has the meaning given such term in Code Section 409A and the final regulations thereunder (“Final 409A Regulations”),
provided, however, that, as permitted in the Final 409A Regulations, the Company’s Specified Employees and its application
of the six-month delay rule of Code Section 409A(a)(2)(B)(i) shall be determined in accordance with rules adopted by the Board
of Directors or a committee thereof, which shall be applied consistently with respect to all nonqualified deferred compensation
arrangements of the Company, including this Agreement.

 

(j)                
Withholding. The Company or its subsidiaries, if applicable, shall be entitled to deduct or withhold from any amounts
owing from the Company or any such affiliate to Executive any federal, state, local or foreign withholding taxes, excise taxes,
or employment taxes (“Taxes”) imposed with respect to Executive’s compensation or other payments from the Company
or any of its affiliates. In the event the Company or its affiliates do not make such deductions or withholdings, Executive shall
indemnify the Company and its affiliates for any amounts paid with respect to any such Taxes.

 

IN WITNESS WHEREOF, the parties hereto have
duly executed and delivered this Agreement as of the date first above written.

 

	 	LHC GROUP, INC.	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Joshua L. Proffitt	 
	 	 	Joshua L. Proffitt	 
	 	 	Executive Vice President
	 	 	 	 
	 	 	 	 
	 	EXECUTIVE:	 
	 	 	 	 
	 	/s/ Keith G. Myers	 
	 	Keith G. Myers	 

 

 

    	 	20	 

     

    

 

EXHIBIT A

 

Form of Release

 

THIS RELEASE ("Release") is granted
effective as of the ____ day of _________, 20__, by ________ ("Executive") in favor of LHC Group, Inc. (the "Company").
This is the Release referred to that certain Employment Agreement effective as of _________, 20__ by and between the Company and
Executive (the "Employment Agreement"), with respect to which this Release is an integral part.

 

FOR AND IN CONSIDERATION of the payments and
benefits provided by Section 7 of the Employment Agreement and the Company's other promises and covenants as recited in the Employment
Agreement, the receipt and sufficiency of which are hereby acknowledged, Executive, for himself, his successors and assigns, now
and forever hereby releases and discharges the Company and all its past and present officers, directors, stockholders, employees,
agents, parent corporations, predecessors, subsidiaries, affiliates, estates, successors, assigns, benefit plans, consultants,
administrators, and attorneys (hereinafter collectively referred to as "Releasees") from any and all claims, charges,
actions, causes of action, sums of money due, suits, debts, covenants, contracts, agreements, promises, demands or liabilities
(hereinafter collectively referred to as "Claims") whatsoever, in law or in equity, whether known or unknown, which Executive
ever had or now has from the beginning of time up to the date this Release ("Release") is executed, including, but not
limited to, claims under the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, Title
VII of the Civil Rights Act of 1964 (and all of its amendments), the Americans with Disabilities Act, as amended, or any other
federal or state statutes, all tort claims, all claims for wrongful employment termination or breach of contract, and any other
claims which Executive has, had, or may have against the Releasees on account of or arising out of Executive's employment with
or termination from the Company; provided, however, that nothing contained in this Release shall in any way diminish or impair
(i) any rights of Executive to the benefits conferred or referenced in the Employment Agreement or Executive's Retention Bonus
Agreement with the Company, (ii) any rights to indemnification that may exist from time to time under the Company’s bylaws,
certificate of incorporation, Louisiana law or otherwise, or (iii) Executive's ability to raise an affirmative defense in connection
with any lawsuit or other legal claim or charge instituted or asserted by the Company against Executive.

 

Without limiting the generality of the foregoing,
Executive hereby acknowledges and covenants that in consideration for the sums being paid to him he has knowingly waived any right
or opportunity to assert any claim that is in any way connected with any employment relationship or the termination of any employment
relationship which existed between the Company and Executive. Executive further understands and agrees that he has knowingly relinquished,
waived and forever released any and all remedies arising out of the aforesaid employment relationship or the termination thereof,
including, without limitation, claims for backpay, front pay, liquidated damages, compensatory damages, general damages, special
damages, punitive damages, exemplary damages, costs, expenses and attorneys' fees. Nothing in this Release shall constitute a waiver
of Executive's right to file an administrative charge with the Equal Employment Opportunity Commission or other government agency
authorized to handle administrative employment claims, but Executive shall not receive or accept, and waives his right to, any
monetary relief or remedies obtained on his behalf by any agency, organization, or other person.

 

    	 	A-1	 

     

    

 

Executive specifically acknowledges and agrees
that he has knowingly and voluntarily released the Company and all other Releasees from any and all claims arising under the Age
Discrimination in Employment Act ("ADEA"), 29 U.S.C. § 621, et seq., which Executive ever had or now has from the
beginning of time up to the date this Release is executed, including but not limited to those claims which are in any way connected
with any employment relationship or the termination of any employment relationship which existed between the Company and Executive.
Executive further acknowledges and agrees that he has been advised to consult with an attorney prior to executing this Release
and that he has been given twenty one (21) days to consider this Release prior to its execution. Executive also understands that
he may revoke this Release at any time within seven (7) days following its execution. Executive understands, however, that this
Release shall not become effective and that none of the consideration described above shall be paid to him until the expiration
of the seven day revocation period.

 

Executive agrees never to seek reemployment
or future employment with the Company or any of the other Releasees.

 

Executive acknowledges that the terms of this
Release must be kept confidential. Accordingly, Executive agrees not to disclose or publish to any person or entity, except as
required by law or as necessary to prepare tax returns, the terms and conditions or sums being paid in connection with this Release.

 

It is understood and agreed by Executive that
the payment made to him is not to be construed as an admission of any liability whatsoever on the part of the Company or any of
the other Releasees, by whom liability is expressly denied.

 

This Release is executed by Executive voluntarily
and is not based upon any representations or statements of any kind made by the Company or any of the other Releasees as to the
merits, legal liabilities or value of his claims. Executive further acknowledges that he has had a full and reasonable opportunity
to consider this Release and that he has not been pressured or in any way coerced into executing this Release.

 

Executive acknowledges and agrees that this
Release may not be revoked at any time after the expiration of the seven-day revocation period and that he will not institute any
suit, action, or proceeding, whether at law or equity, challenging the enforceability of this Release. Executive further acknowledges
and agrees that, with the exception of an action to challenge his waiver of claims under the ADEA, he shall not ever attempt to
challenge the terms of this Release, attempt to obtain an order declaring this Release to be null and void, or institute litigation
against the Company or any other Releasee based upon a claim which is covered by the terms of the release contained herein, without
first repaying all monies paid to him under Section 7 of the Employment Agreement. Furthermore, with the exception of an action
to challenge his waiver of claims under the ADEA, if Executive does not prevail in an action to challenge this Release, to obtain
an order declaring this Release to be null and void, or in any action against the Company or any other Releasee based upon a claim
which is covered by the release set forth herein, Executive shall pay to the Company and/or the appropriate Releasee all their
costs and attorneys' fees incurred in their defense of Executive's action.

 

    	 	A-2	 

     

    

 

This Release and the rights and obligations
of the parties hereto shall be governed and construed in accordance with the laws of the State of Louisiana. If any provision hereof
is unenforceable or is held to be unenforceable, such provision shall be fully severable, and this document and its terms shall
be construed and enforced as if such unenforceable provision had never comprised a part hereof, the remaining provisions hereof
shall remain in full force and effect, and the court construing the provisions shall add as a part hereof a provision as similar
in terms and effect to such unenforceable provision as may be enforceable, in lieu of the unenforceable provision.

 

This document contains all terms of the Release
and supersedes and invalidates any previous agreements or contracts. No representations, inducements, promises or agreements, oral
or otherwise, which are not embodied herein shall be of any force or effect.

 

IN WITNESS WHEREOF, the undersigned acknowledges
that he has read these three pages and he sets his hand and seal this ____ day of ____________, 20___.

 

 

 

 

 

 

 

Sworn to and subscribed

before me this _____ day of

______________, 20___.

 

_____________________

Notary Public

 

My Commission Expires:

 

_____________________

 

 

 

    	 	A-3	 

     

    

 

EXHIBIT B

Restricted Territory

 

The Restricted Territory shall include the following
counties and parishes in the states where the Company and its subsidiaries and affiliates conduct business:

 

ALABAMA

Autauga, Baldwin, Barbour, Bibb, Blount, Bullock, Butler, Calhoun, Chambers, Choctaw,
Clarke, Clay, Cleburne, Coffee, Colbert, Conecuh, Coosa, Covington, Crenshaw, Cullman, Dale, Dallas, DeKalb, Elmore, Escambia,
Etowah, Fayette, Franklin, Geneva, Greene, Hale, Henry, Houston, Jackson, Jefferson, Lamar, Lauderdale, Lawrence, Lee, Limestone,
Lowndes, Macon, Madison, Marengo, Marion, Marshall, Mobile, Monroe, Montgomery, Morgan, Perry, Pickens, Pike, Randolph, Russell,
Shelby, St. Clair, Talladega, Tallapoosa, Tuscaloosa, Walker, Washington, Wilcox, Winston

 

ARIZONA

Cochise, Coconino, Gila, La Paz, Maricopa, Mohave, Navajo, Pima, Pinal, Santa Cruz, Yavapai

 

ARKANSAS

Arkansas, Ashley, Baxter, Benton, Boone, Bradley, Calhoun, Carroll, Clark, Cleburne,
Cleveland, Conway, Craighead, Crawford, Crittenden, Cross, Dallas, Desha, Drew, Faulkner, Franklin, Fulton, Garland, Grant, Greene,
Hempstead, Hot Spring, Howard, Independence, Izard, Jackson, Jefferson, Johnson, Lafayette, Lawrence, Lee, Lincoln, Little River,
Logan, Lonoke, Madison, Marion, Miller, Mississippi, Monroe, Montgomery, Nevada, Newton, Ouachita, Perry, Phillips, Pike, Poinsett,
Polk, Pope, Prairie, Pulaski, Randolph, Saline, Scott, Searcy, Sebastian, Sevier, Sharp, St. Francis, Stone, Union, Van Buren,
Washington, White, Woodruff, Yell

 

CALIFORNIA

Alameda, Butte, Contra Costa, Glenn, Merced, San Joaquin, Shasta, Solano, Stanislaus,
Tehama

 

COLORADO

Adams, Alamosa, Arapahoe, Boulder, Broomfield, Conejos, Costilla, Denver, Douglas, El
Paso, Elbert, Huerfano, Jefferson, Larimer, Lincoln, Logan, Morgan, Rio Grande, Saguache, Teller, Washington, Weld

 

FLORIDA

Alachua, Brevard, Citrus, Escambia, Lake, Levy, Marion, Okaloosa, Orange, Osceola, Putnam,
Santa Rosa, Seminole, Sumter, Walton

 

GEORGIA

Atkinson, Banks, Barrow, Bartow, Ben Hill, Berrien, Brooks, Butts, Carroll, Catoosa,
Chattooga, Cherokee, Clarke, Clayton, Clinch, Cobb, Colquitt, Cook, Coweta, Dade, Dawson, Decatur, Dekalb, Douglas, Echols, Fannin,
Fayette, Floyd, Forsyth, Fulton, Gilmer, Gordon, Grady, Gwinnett, Habersham, Hall, Haralson, Harris, Heard, Henry, Irwin, Jackson,
Lanier, Lowndes, Lumpkin, Madison, Meriwether, Murray, Muscogee, Newton, Oconee, Paulding, Pickens, Polk, Rabun, Rockdale, Spalding,
Stephens, Thomas, Tift, Towns, Troup, Turner, Union, Walker, Walton, Ware, White, Whitfield, Worth

 

    	 	B-1	 

     

    

 

IDAHO

Ada, Bannock, Bear Lake, Benewah, Bingham, Blaine, Boise, Bonner, Bonneville, Butte,
Camas, Canyon, Caribou, Cassia, Clark, Custer, Elmore, Franklin, Freemont, Gem, Gooding, Jefferson, Jerome, Kootenai, Lemhi, Lincoln,
Madison, Minidoka, Oneida, Owyhee, Payette, Power, Shoshone, Teton, Twin Falls

 

ILLINOIS

Alexander, Bond, Bureau, Calhoun, Cass, Champaign, Christian, Clark, Clay, Clinton, Coles,
Cook, Crawford, Cumberland, Dewitt, Douglas, DuPage, Edgar, Edwards, Effingham, Fayette, Ford, Franklin, Fulton, Gallatin, Greene,
Grundy, Hamilton, Hardin, Henry, Iroquois, Jackson, Jasper, Jefferson, Jersey, Johnson, Kane, Kankakee, Knox, Lake, Lasalle, Lawrence,
Lee, Livingston, Logan, Macon, Macoupin, Madison, Marion, Marshall, Mason, Massac, McHenry, Mclean, Menard, Mercer, Monroe, Montgomery,
Morgan, Moultrie, Peoria, Perry, Piatt, Pope, Pulaski, Putnam, Randolph, Richland, Rock Island, Saline, Sangamon, Scott, Shelby,
St. Clair, Stark, Tazewell, Union, Vermillion, Wabash, Washington, Wayne, White, Whiteside, Will, Williamson, Woodford

 

KENTUCKY

Allen, Anderson, Boone, Bourbon, Boyle, Butler, Caldwell, Campbell, Casey, Christian,
Clark, Clinton, Crittenden, Cumberland, Daviess, Edmonson, Estill, Fayette, Franklin, Fulton, Garrard, Grayson, Green, Hardin,
Harrison, Hart, Henderson, Hickman, Jessamine, Kenton, Lincoln, Livingston, Logan, Lyon, Madison, Marshall, Mercer, Metcalfe, McCreary,
Monroe, Nicholas, Owen, Pulaski, Rockcastle, Russell, Scott, Simpson, Taylor, Todd, Trigg, Union, Warren, Wayne, Webster, Woodford

 

LOUISIANA

Acadia, Allen, Ascension, Assumption, Avoyelles, Beauregard, Bienville, Bossier, Caddo,
Calcasieu, Caldwell, Cameron, Catahoula, Claiborne, Concordia, De Soto, East Baton Rouge, East Carroll, East Feliciana, Evangeline,
Franklin, Grant, Iberia, Iberville, Jackson, Jefferson, Jefferson Davis, La Salle, Lafayette, Lafourche, Lincoln, Livingston, Madison,
Morehouse, Natchitoches, Orleans, Ouachita, Plaquemines, Pointe Coupee, Rapides, Red River, Richland, Sabine, St. Bernard, St.
Charles, St. Helena, St. James, St. John the Baptist, St. Landry, St. Martin, St. Mary, St. Tammany, Tangipahoa, Tensas, Terrebonne,
Union, Vermilion, Vernon, Washington, Webster, West Baton Rouge, West Carroll, West Feliciana, Winn

 

MARYLAND

Anne Arundel, Baltimore, Jurisdiction of Baltimore City, Calvert, Caroline, Carroll,
Charles, Dorchester, Frederick, Harford, Howard, Montgomery, Prince George’s, Queen Anne’s, St. Mary’s, Talbot,
Washington, Wicomico, Worcester.

 

MISSISSIPPI

Adams, Amite, Attala, Benton, Calhoun, Carroll, Chickasaw, Choctaw, Claiborne, Clarke,
Clay, Coahoma, Copiah, Covington, Desoto, Forrest, Franklin, George, Greene, Grenada, Hancock, Harrison, Hinds, Holmes, Humphreys,
Issaquena, Jackson, Jasper, Jefferson, Jefferson Davis, Jones, Kemper, Lafayette, Lamar, Lauderdale, Lawrence, Leake, Leflore,
Lincoln, Lowndes, Madison, Marion, Marshall, Montgomery, Neshoba, Newton, Noxubee, Oktibbeha, Panola, Pearl River, Perry, Pike,
Pontotoc, Quitman, Rankin, Scott, Sharkey, Simpson, Smith, Stone, Sunflower, Tallahatchie, Tate, Tippah, Tunica, Union, Walthall,
Warren, Washington, Wayne, Webster, Wilkinson, Winston, Yalobusha, Yazoo

 

    	 	B-2	 

     

    

 

MISSOURI

Audrain, Barry, Barton, Bollinger, Butler, Camden, Cape Girardeau, Carter, Cedar, Christian,
Dade, Dallas, Douglas, Dunklin, Franklin, Gasconade, Greene, Hickory, Howell, Jasper, Lawrence, Laclede, Lincoln, Marion, McDonald,
Mississippi, Monroe, Montgomery, New Madrid, Newton, Ozark, Pemiscot, Pike, Pulaski, Polk, Ralls, Reynolds, Scott, Shelby, St.
Charles, St. Louis, Stoddard, Stone, Taney, Texas, Warren, Wayne, Webster, Wright

 

NORTH CAROLINA

Alamance, Beaufort, Bladen, Brunswick, Buncombe, Burke, Carteret, Caswell, Chatham, Cherokee,
Clay, Columbus, Craven, Cumberland, Duplin, Durham, Edgecombe, Franklin, Graham, Granville, Greene, Guilford, Halifax, Harnett,
Haywood, Henderson, Hoke, Jackson, Johnston, Jones, Lee, Lenoir, Macon, Madison, Martin, McDowell, Mitchell, Moore, Nash, New Hanover,
Onslow, Orange, Pamlico, Pender, Person, Pitt, Polk, Randolph, Robeson, Rockingham, Rutherford, Sampson, Swain, Transylvania, Vance,
Wake, Warren, Wayne, Wilson, Yancey

 

OHIO

Adams, Athens, Belmont, Brown, Coshocton, Fairfield, Fayette, Gallia, Guernsey, Harrison,
Highland, Hocking, Jackson, Jefferson, Lawrence, Licking, Meigs, Monroe, Morgan, Muskingum, Noble, Perry, Pickaway, Pike, Ross,
Scioto, Tuscarawas, Vinton, Washington

 

OKLAHOMA

Adair, Alfalfa, Atoka, Beaver, Beckham, Blaine, Bryan, Caddo, Canadian, Carter, Cherokee,
Choctaw, Cimarron, Cleveland, Coal, Comanche, Cotton, Craig, Creek, Custer, Delaware, Dewey, Ellis, Garfield, Garvin, Grady, Grant,
Greer, Harmon, Harper, Haskell, Hughes, Jackson, Jefferson, Johnston, Kay, Kingfisher, Kiowa, Latimer, Le Flore, Lincoln, Logan,
Love, Major, Marshall, Mayes, McClain, McCurtain, McIntosh, Murray, Noble, Nowata, Okfuskee, Oklahoma, Okmulgee, Osage, Ottawa,
Pawnee, Payne, Pittsburg, Pontotoc, Pottawatomie, Pushmataha, Roger Mills, Rogers, Seminole, Sequoyah, Stephens, Texas, Tillman,
Tulsa, Wagoner, Washington, Washita, Woods, Woodward

 

OREGON

Benton, Clackamas, Douglas, Jackson, Josephine, Linn, Marion, Multnomah, Polk, Washington,
Yamhill

 

PENNSYLVANIA

Allegheny, Armstrong, Bedford, Blair, Butler, Cambria, Centre, Clarion, Clearfield, Fayette,
Franklin, Fulton, Huntingdon, Indiana, Jefferson, Mifflin, Somerset, Washington, Westmoreland

 

RHODE ISLAND

Bristol, Kent, Newport, Providence, Washington

 

    	 	B-3	 

     

    

 

SOUTH CAROLINA

Abbeville, Aiken, Allendale, Anderson, Bamberg, Barnwell, Beaufort, Berkeley, Calhoun,
Charleston, Cherokee, Chester, Chesterfield, Clarendon, Colleton, Darlington, Dillon, Dorchester, Edgefield, Fairfield, Florence,
Georgetown, Greenville, Greenwood, Hampton, Horry, Jasper, Kershaw, Lancaster, Laurens, Lee, Lexington, Marion, Marlboro, McCormick,
Newberry, Oconee, Orangeburg, Pickens, Richard, Richland, Saluda, Spartanburg, Sumter, Union, Williamsburg, York

 

TENNESSEE

Anderson, Bedford, Benton, Bledsoe, Blount, Bradley, Campbell, Cannon, Carroll, Carter,
Cheatham, Chester, Claiborne, Clay, Cocke, Coffee, Crockett, Cumberland, Davidson, Decatur, Dekalb, Dickson, Dyer, Fayette, Fentress,
Franklin, Gibson, Giles, Grainger, Greene, Grundy, Hamblen, Hamilton, Hancock, Hardeman, Hardin, Hawkins, Haywood, Henderson, Henry,
Hickman, Houston, Humphreys, Jackson, Jefferson, Johnson, Knox, Lake, Lauderdale, Lawrence, Lewis, Lincoln, Loudon, Macon, Madison,
Marion, Marshall, Maury, McMinn, McNairy, Meigs, Monroe, Montgomery, Moore, Morgan, Obion, Overton, Perry, Pickett, Polk, Putnam,
Rhea, Roane, Robertson, Rutherford, Scott, Sequatchie, Sevier, Shelby, Smith, Stewart, Sullivan, Sumner, Tipton, Trousdale, Unicoi,
Union, Van Buren, Warren, Washington, Wayne, Weakley, White, Williamson, Wilson

 

TEXAS

Andrews, Angelina, Armstrong, Borden, Bowie, Briscoe, Camp, Carson, Cass, Castro, Cherokee,
Collin, Crane, Crosby, Dallas, Dawson, Deaf Smith, Delta, Denton, Donley, Ector, Ellis, Erath, Fannin, Floyd, Franklin, Garza,
Glasscock, Gray, Grayson, Gregg, Hale, Hall, Hardin, Harrison, Hartley, Hockley, Hood, Hopkins, Howard, Hunt, Hutchinson, Jefferson,
Johnson, Kaufman, Lamar, Lamb, Liberty, Loving, Lubbock, Lynn, Marion, Martin, Midland, Moore, Morris, Nacogdoches, Oldham, Orange,
Panola, Parker, Pecos, Polk, Potter, Rains, Randall, Reagan, Red River, Reeves, Rockwell, Rusk, San Jacinto, Shelby, Smith, Somervell,
Swisher, Tarrant, Terry, Titus, Tyler, Upshur, Upton, Ward, Winkler, Wise, Wood

 

VIRGINIA

Bedford, Bedford City, Bland, Botetourt, Buchanan, Carroll, Craig, Culpeper, Danville
City, Fauquier, Floyd, Franklin, Galax City, Giles, Grayson, Henry, Loudoun, Martinsville City, Montgomery, Patrick, Pittsylvania,
Prince William, Pulaski, Rappahannock, Roanoke, Roanoke City, Russell, Smyth, Tazewell, Wythe

 

WASHINGTON

Adams, Clallam, Cowlitz, Ferry, Grant, Grays Harbor, Jefferson, King, Lewis, Lincoln,
Mason, Pacific, Pend Oreille, Pierce, Snohomish, Spokane, Stevens, Thurston, Wahkiakum

 

WEST VIRGINIA

Barbour, Boone, Braxton, Cabell, Calhoun, Doddridge, Fayette, Gilmer, Grant, Greenbrier,
Hampshire, Hardy, Harrison, Jackson, Kanawha, Lewis, Lincoln, Logan, Marion, Marshall, Mason, McDowell, Mercer, Mingo, Monongalia,
Monroe, Nicholas, Ohio, Pendleton, Pleasants, Pocahontas, Preston, Putnam, Raleigh, Randolph, Ritchie, Roane, Summers, Taylor,
Tucker, Tyler, Upshur, Wayne, Webster, Wetzel, Wirt, Wood, Wyoming

 

    	 	B-4	 

     

    

 

WISCONSIN

Dodge, Fond Du Lac, Jefferson, Kenosha, Milwaukee, Ozaukee, Racine, Rock, Sheboygan,
Walworth, Washington, Waukesha

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B-5Exhibit 4.2

 

This is a free translation from the French
language and is supplied solely for information purposes. Only the original version in French language has legal force.

 

EDAP TMS

(the
“Company”)

Capital of 3,782,319.97 Euros

Headquarters : Parc d’Activité
de La Poudrette Lamartine,

4, rue du Dauphiné, 69120 VAULX-EN-VELIN

316488204 RCS LYON

 

 

	 
	FORM OF SHARE SUBSCRIPTION OPTION PLAN
	 
	Extraordinary Assembly Meeting February
18, 2016
	 
	Board of Directors: [DATE]
	 

 

		1.	GENERAL

 

In accordance with the authorization granted
by the extraordinary general shareholders’ meeting of February 18, 2016 (the “Shareholders Authorization”),
the Board of Directors decided on [DATE], in compliance with the provisions of Articles L. 225-177 et seq. of the French
Commercial Code:

 

- to determine the terms and conditions
of the share subscription option plan as set out below, and

- to grant, on one or several occasions,
[NUMBER IN LETTERS] ([NUMBER IN NUMERALS]) options to subscribe to a maximum of [NUMBER IN LETTERS] ([NUMBER IN NUMERALS])
shares of the Company, with a nominal value of €0.13 each, to some employees and/or employee officers of the Company as well
as those of the affiliates of the Company within the meaning of Article L. 225-180 of the French Commercial Code and as defined
in Section 424 (f) and Section 3401(c) of the United States Internal Revenue Code of 1986, as amended (hereafter, the “Affiliates”),
as follows:

 

The authorization granted by the shareholders
on February 18, 2016 is valid until April 18, 2019.

 

		2.	PURPOSES OF THE PLAN

 

On November 9, 2015, the Company announced
FDA approval of its Ablatherm-HIFU device for the treatment of localized prostate cancer. This clearance allows EDAP to market
its Ablatherm-HIFU on the U.S. territory. The marketing and communication plan which will be rolled out to ensure a maximum expansion
on the American market includes hiring dedicated sales teams in view of Ablatherm’s commercial success but also implementing
targeted communication strategies towards U.S. patients and physicians.

 

We therefore wish to motivate and reward
EDAP’s teams who will be entirely dedicated to successfully perform in our U.S but also in worldwide achievements. To this
end, the Board of Directors wishes to implement an incentive stock option program in favor of EDAP’s U.S. and French employees
contributing to this project (the “Plan”).

 

The purposes of the Plan are:

-       
to attract and retain the best available personnel for positions of substantial responsibility;

-       
to provide additional incentive to Beneficiaries as such term is defined herein; and

-       
to promote the success of the Company's business.

 

    1 

     

    

Options (as such term is defined below)
granted under the Plan to U.S. Beneficiaries are intended to be Incentive Stock Options (“ISOs” or “Incentive
Stock Options”) and shall comply in all respects with the United States Internal Revenue Code of 1986, as amended, for
those eligible beneficiaries’ subject to tax in the U.S., in order that they may benefit from available tax advantages. The
Options may also be “Non-Statutory Stock Options”, meaning an Option that does not qualify as an ISO, in the
discretion of the Board of Directors at the time of grant of an Option or when ISO limits are exceed.

 

		3.	SHARES SUBJECT TO THE PLAN AND NUMBER OF OPTIONS TO SUBSCRIBE FOR SHARES

 

Subject to the provisions of Article L.
225-181 of the French Commercial Code and Sections 409A, 422 and 424 of the U.S. Internal Revenue Code of 1986, as amended, as
applicable, and pursuant to the Shareholders Authorization, the maximum aggregate number of shares which may be optioned and issued
is equal to 1,000,000 (the “Shares”) and the maximum number of ISOs which may be optioned and issued
is 1,000,000.

 

On [DATE], the Board of Directors decided
to grant [NUMBER IN LETTERS] ([NUMBER IN NUMERALS]) share subscription options (the “Options”) to beneficiaries
intended to qualify as ISOs.

 

Should the Options expire or become unexercisable
for any reason without having been exercised in full, the unsubscribed Shares which were subject thereto shall, unless the Plan
shall have been terminated, become available again for any future grant under the Plan.

 

Notwithstanding any provisions in the Plan
to the contrary, the total number of Options granted but not yet exercised may not give right to subscribe a number of shares exceeding
one third of the share capital of the Company.

 

		4.	BENEFICIARIES

 

The President of the Board of Directors
(président du conseil d’administration), the general manager (directeur général) and the
deputy general managers (directeurs généraux délégués) as well as any individual employed
by the Company or by any of its Affiliates, under the terms and conditions of an employment contract, are eligible to receive Options
to the extent otherwise legally eligible to receive Options under the Plan.

 

Incentive Stock Options may only be granted
to Beneficiaries of the Company or any of its subsidiaries who meet the definition of “employees” under Section 3401(c)
of the U.S. Internal Revenue Code of 1986, as amended.

 

Subject to the provisions of the French
Commercial Code, the Shareholders Authorization, the Plan and the United States Internal Revenue Code of 1986, as amended, the
Board of Directors shall have the authority, in its discretion, to determine the Beneficiaries to whom Options may be granted hereunder.

 

The list of Beneficiaries, with the exact
number of Options allocated to each of them has been set by the Board of Directors at its meeting on [DATE] (the “Beneficiaries”).
Beneficiaries who are U.S. tax residents are referred to herein as the “U.S. Beneficiaries” and Beneficiaries
who are French tax residents are referred to herein as the “French Beneficiaries”.

 

Notwithstanding any provisions in the Plan
to the contrary, Options may not be granted to Beneficiaries owning more than ten percent (10%) of the Company’s share capital
except as permitted under Article L. 225-185 of the French commercial code.

 

 

    2 

     

    

		5.	DATE OF GRANT AND TERM OF THE PLAN

 

The date of grant of an Option shall be,
for all purposes, the date on which the Board of Directors decides to grant such Option (the “Date of Grant”).

 

The Plan shall be effective as of [DATE],
and Options may be granted as of this Date of Grant. Options may be granted thereunder until April 18, 2019. The Plan shall continue
in effect until the date of termination of the last Options in force, unless terminated earlier pursuant to Article 13 hereof.

 

The Company and each Beneficiary shall
enter into an Option agreement evidencing the terms and conditions of an individual Options grant (the “Option Agreement”).
Such Option Agreements shall be subject to the terms and conditions of the Plan. A written notice evidencing the main terms and
conditions of an individual Options grant is part of the Option Agreement (the “Notice of Grant”). The form
of such Option Agreement is attached as Appendix 1.

 

The grant will be definitive upon the Date
of Grant provided that the Notice of Grant and the Option Agreement have been duly initialed (all pages except the signature page)
and executed (signature page) by the Beneficiary and returned to the Company within one month following receipt of such documents
by the Beneficiary.

 

		6.	OPTIONS EXERCISE PRICE

 

The per Share subscription price for the
Shares to be issued pursuant to exercise of an Option (the “Subscription Price”) shall be determined by the
Board of Directors on the Date of Grant on the basis of the fair market value.

 

The fair market value of one share as provided
in the Shareholders Authorization, is deemed to be the closing sales price of one EDAP American Depositary Share listed on the
NASDAQ stock market on the day prior to the Date of Grant. Under French law, the Subscription Price shall in no case be less than
ninety-five per cent (95%) of the average closing sales price of the EDAP American Depositary Shares listed on the NASDAQ stock
market calculated on the basis of the last twenty (20) market trading sessions preceding the Date of Grant.

 

(i) In the case of a Non-Statutory Stock
Option or Incentive Stock Option granted to any U.S. Beneficiary, the Subscription Price shall not be less than one hundred per
cent (100%) of the fair market value per share on the Date of Grant determined as follows (a) if the shares are listed or quoted
for trading on an exchange, the value will be deemed to be the closing or last offer price, as applicable, of the shares on the
principal exchange upon which such securities are traded or quoted on the date prior to the Date of Grant, provided, if such date
is not a trading day, on the last market trading day prior to such date; and (b) if the shares are not listed or quoted for trading
on an exchange, the fair market value of the shares as determined by the Board of Directors, consistent with the requirements of
Sections 422 with respect to Incentive Stock Options, and 409A of the Code with respect to Options not intended to be Incentive
Stock Options.

 

(ii) In the case of an “Incentive
Stock Option” granted to a U.S. Beneficiary who, at the Date of Grant of the Incentive Stock Option, owns stock representing
more than ten percent (10%) of the voting rights of all classes of stock of the Company or any parent or subsidiary of the Company
and, to the extent such Beneficiary is permitted by French law to receive Option grants, the per Share subscription price shall
be no less than 110% of the fair market value per share on the Date of Grant, as determined for Incentive Stock Options above.

 

In accordance with applicable French and
U.S. law, each Option granted to each Beneficiary, whether a U.S. Beneficiary, excluding options covered by paragraph (ii) above,
or a French Beneficiary, gives the right to subscribe to one Share at a Subscription Price corresponding to the greater of: (a)
100% of the fair market value per share on the Date of Grant determined in accordance with (i) above and (b) ninety five per cent
(95%) of the average closing sales price of the EDAP American Depositary Shares listed on the NASDAQ stock market calculated on
the basis of the last twenty (20) market trading sessions preceding the Date of Grant.

 

    3 

     

    

For a Date of Grant on [DATE], the Subscription
Price per Share is equal to [EXERCISE PRICE] Euros.

 

New shares issued upon exercise must be
fully paid-up at subscription.

 

The Subscription Price may not be modified
for the duration of the Plan. However, the number of Shares under option as well as their Subscription Price may be adjusted, in
the event that the Company implements one of the transactions set out in Article L. 225-181 paragraph 2 of the French Commercial
Code, and, for U.S. Beneficiaries, in accordance with Sections 409A, 422 and 424 of the U.S. Internal Revenue Code of 1986, as
amended, as applicable.

 

		7.	CONDITIONS PRECEDENT FOR EXERCISE OF THE OPTIONS/CONDITIONS UPON ISSUANCE OF SHARES

 

7.1 PRESENCE IN THE COMPANY

 

7.1.1 Principle

 

The Options shall be null and void and
may not be exercised by the Beneficiary, without the Company having to proceed with any formalities, in the case the Beneficiary
is no longer employed with the Company or its Affiliates, as an employee or a company officer, for more than three (3) months following
Termination, as defined below.

 

For the purpose of the Plan, “Termination”
shall mean, depending upon the case, the date the Beneficiary’s resignation letter is sent or delivered, the date the Beneficiary’s
dismissal letter is sent or the date of his removal as a company officer. Termination does not include leaves of absence which
receive a prior approval from the Company. Such leaves of absence shall include leaves of more than three (3) months for illnesses
or conditions about which the employee has advance knowledge, military leave, or any other personal leave. For purposes of U.S.
Beneficiaries and Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of such
leave is guaranteed by statute contract or Company policies. If reemployment upon expiration of a leave of absence approved by
the Company is not so guaranteed, on the 91st day of such leave any Incentive Stock Option held by a U.S. Beneficiary shall cease
to be treated as an Incentive Stock Option and shall be treated for U.S. tax purposes as a Non-Statutory Stock Option.

 

Upon Termination, the Beneficiary may exercise
his Options within a three (3) month period, as specified in the Notice of Grant, and only for the part of the Options that the
Beneficiary was entitled to exercise at the date of Termination (but in no event later than the expiration of the term of such
Options as set forth in the Notice of Grant). For ISO purposes, such a period cannot exceed three months following the Termination.
If, at Termination, the Beneficiary is not entitled to exercise his Options, the Shares covered by the unexercisable portion of
Options shall revert to the Plan. If, after Termination, the Beneficiary does not exercise all of his Options within the time specified
in the Notice of Grant, the Options shall terminate, and the Shares covered by such Options shall revert to the Plan.

 

7.1.2 Exceptions

 

As an exception to the provisions of Article
7.1.1, in case of death of the Beneficiary, his heirs may exercise the Options within six (6) months as from such death (but in
no event later than the expiration of the term of the Option), provided the Beneficiary was authorized to exercise his Options
at the time of his death and within the limits of shares allocated and exercisable. If after the death of the Beneficiary, his
heirs do not exercise the Options within the six (6) month period or the Options expiration date, then the Options shall be nul
and void and the Shares covered by such Options shall revert to the Plan.

 

    4 

     

    

As an exception to the provisions of Article
7.1.1, in the event that the Beneficiary’s office term or employment relationship is terminated owing to Disability, as such
term is defined below, the Beneficiary may exercise his Options at any time within six (6) months from the date of such Termination,
but only to the extent that these options are exercisable at the time of Termination (but in no event later than the expiration
of the term of such Options). If, at the date of Termination, the Beneficiary is not entitled to exercise all of his Options, the
Shares covered by the unexercised portion of Options shall revert to the Plan. If after Termination, the Beneficiary does not exercise
all of his or her Options within the time specified herein, the Options shall terminate, and the Shares covered by such Options
shall revert to the Plan.

 

Similarly,
the provisions of Article 7.1.1 are not applicable in the event that the Beneficiary decides to retire or his employer decides
to pension him as defined in Article L. 1237-5 of the French Labor Code. However, three months following such retirement any Incentive
Stock Option held by a U.S. Beneficiary shall cease to be treated as an Incentive Stock Option and shall be treated for U.S. tax
purposes as a Non-Statutory Stock Option.

 

For the purposes of this Article 7.1.2
of the Plan:

 

“Disability” means disability as determined in categories
2 and 3 under Article L. 341-4 of the French Social Security Code and subject to the fulfillment of related conditions, and for
ISOs, as defined under Section 22(e)(3) of the Internal Revenue Code.

 

“Retirement” means that the
employee has reached the age provided in Article L. 1237-5 of the French Labor Code and qualifies for a full pension subject to
the fulfillment of related conditions, or any similar provision applicable to a foreign Affiliated Company.

 

		8.	TERMS AND CONDITIONS OF EXERCISE OF THE OPTIONS

 

8.1 EXERCISE RIGHT SUSPENSION

 

The Board of Directors may suspend the
right to exercise the Options for a maximum duration of three (3) months in case transactions mentioned in Article L. 225-149-1,
al. 1 of the French Commercial Code are carried out.

 

Beneficiaries will be informed of such
suspension period in accordance with Article R. 225-133 of the French Commercial Code.

 

In the event that the term of the Options
expires or terminates the Option occurs during the suspension period, the term of the Options may be postponed until one (1) more
month following the suspension period. For US Beneficiaries, the term of the option cannot exceed 10 years, regardless of suspension.

 

8.2 SCHEDULE FOR EXERCISING OF THE OPTIONS

 

8.2.1 Principle

 

The Options vest as follows:

		-	The first quarter of the Options, as from the expiration of a period of one (1) year as from the
Date of Grant of the Options by the Board of Directors, i.e. at the earliest on [DATE];

		-	the second quarter of the Options at the expiration of a period of two (2) years as from the Date
of Grant of the Options by the Board of Directors, i.e. at the earliest on [DATE];

 

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		-	the third quarter of the Options at the expiration of a period of three (3) years as from the Date
of Grant of the Options by the Board of Directors, i.e. at the earliest on [DATE];

		-	the fourth quarter of the Options at the expiration of a period of four (4) years as from the Date
of Grant of the Options by the Board of Directors, i.e. at the earliest on [DATE]; and

		-	at the latest within ten (10) years as from the Date of Grant.

 

The number of Options that may be exercised
pursuant to the above vesting schedule will always be rounded down to the nearest full number.

 

If the Beneficiary fails to exercise the
Options in whole or in part within the said period of ten (10) years, the Options will lapse automatically.

 

8.2.2. Exceptions

 

By way of exception, the provisions of
Article 8.2.1 shall not be applicable in the case any of the following operations is implemented:

 

		-	tender offer, within the meaning of Article L. 433-1 of the French Monetary and Financial Code,
relating to the shares of the Company or, as long as the shares of the Company are listed on the National Association of Securities
Dealers Automated Quotation (NASDAQ), any similar operation carried out according to the NASDAQ regulations;

		-	exchange offer, within the meaning of Article L. 433-1 of the French Monetary and Financial Code,
relating to the shares of the Company or, as long as the shares of the Company are listed on the NASDAQ, any similar operation
carried out according to the NASDAQ regulations;

		-	cash tender and exchange offer relating in part to a cash tender offer and in part to an exchange
offer or, as long as the shares of the Company are listed on the NASDAQ, any similar operation carried out according to the NASDAQ
regulations;

		-	buyout offer within the meaning of Article L. 433-4 of the French Monetary and Financial Code,
relating to the shares of the Company or, as long as the shares of the Company are listed on the National Association of Securities
Dealers Automated Quotation (NASDAQ), any similar operation carried out according to the NASDAQ regulations.

 

In the cases mentioned above, the Beneficiaries
shall be entitled to exercise their Options in one or several times as from the date of delivery of the initial offer (tender offer,
exchange offer, cash tender and exchange offer and similar operations on the NASDAQ) to the relevant authority.

 

Moreover, as an exception to the exercise
schedule provided in Article 8.2.1 above, in case of death of the Beneficiary, his heirs may exercise the Options within a period
of six (6) months as from the death of the Beneficiary, pursuant to Article 7.1.2.

 

8.3. TIME LIMIT FOR THE EXERCISE OF
THE OPTIONS

 

The Options shall be exercised by the Beneficiary
before the end of a period of ten (10) years as from the Date of Grant, i.e. before [DATE] for a Date of Grant on [DATE].

 

8.4.
TERMS OF EXERCISE OF THE OPTIONS

 

(i) The Options may only be exercised if
all the conditions provided under Articles 7 and 8 of the Plan are satisfied on the date of exercise of the Options.

 

(ii) In order to exercise its Options,
the Beneficiary shall send to the legal representative of the Company, a notification indicating the number of Options that he
wishes to exercise. The consideration for the Shares to be issued upon exercise of Options shall be paid either by wire transfer
or bank check payable to the Company in an amount equal to the aggregate Subscription Price.

 

    6 

     

    

(iii) Furthermore, in the event that the
sale of Shares under this Plan is not registered under the U.S. Securities Act but an exemption is available which requires an
investment representation or other representation, the Beneficiary shall represent and agree at the time of exercise that the Shares
being acquired upon exercising this Option are being acquired for investment, and not with a view to the sale or distribution thereof,
and shall make such other representations as are deemed necessary or appropriate by the Company and its counsel.

 

(iv) Nevertheless, the aggregate fair market
value of the Shares covered by Incentive Stock Options granted under the Plan or any other stock option program of the Company
(or any parent or subsidiary of the Company) that become exercisable for the first time in any calendar year shall not exceed USD
100,000. To the extent the aggregate fair market value of such shares exceeds USD 100,000, the Options covering those Shares the
fair market value of which causes the aggregate fair market value of all such Shares to be in excess of USD 100,000 shall be treated
as Non-Statutory Stock Options. Incentive Stock Options shall be taken into account in the order in which they were granted, and
the aggregate fair market value of the Shares shall be determined as of the Date of the Grant.

 

(v) The Beneficiary will have the ownership
and the enjoyment of the Shares on the date of exercise of the Options.

 

(vi) As the Company is listed on the NASDAQ
market, the Beneficiary will be responsible for converting the newly issued ordinary shares of the Company into American Depositary
Receipt (ADRs) upon exercise of his Options.

 

		9.	CONDITIONS OF HOLDING AND SALE OF THE SHARES

 

9.1. U.S. SECURITIES LAW RESTRICTIONS

 

The Shares to be issued from exercised
Options have not been registered under the U.S. Securities Act and may not be offered or sold in the United States or to U.S. persons
unless the Shares are registered under the U.S. Securities Act, or an exemption from the registration requirements of the U.S.
Securities Act is available.

 

Notwithstanding any other provision of
the Plan or any agreement entered into by the Company pursuant to the Plan, the Company shall not be obligated, and shall have
no liability for failure, to register, issue or deliver any Shares under the Plan unless such issuance or delivery would comply
with applicable U.S. state and Federal laws, including securities laws, and the U.S. Internal Revenue Code of 1986, as amended,
with such compliance determined by the Company in consultation with its legal counsel.

 

Regardless of whether the offering and
sale of shares under this Plan have been registered under the U.S. Securities Act or have been registered or qualified under the
securities laws of any U.S. state, the Company at its discretion may impose restrictions upon the sale, pledge or other transfer
of such shares (including the placement of appropriate legends on stock certificates or the imposition of stop-transfer instructions)
if, in the judgment of the Company, such restrictions are necessary or desirable in order to achieve compliance with the U.S. Securities
Act, the securities laws of any state or any other law.

 

9.2 EXECUTIVE OFFICERS OF THE COMPANY

 

Without prejudice to the above, Shares
subscribed following the exercise of Options by the Chairman of the Board (president du conseil d’administration),
the Chief Executive Officer (directeur general), and other executive officers (directeurs généraux délégués)
of the Company or of an Affiliated Company having its registered office in France, must be held in registered form and must not
be sold, leased or converted to bearer shares until the mandate as executive officer is over, as follows :

 

    7 

     

    

		-	during a 12 months’ period from exercise of the Options, 40 % of the Options granted must
be held in registered form and must not be sold;

		-	then at the end of this 12 months’ period and until mandate is over, 20 % of the Options
granted must be held in registered form and must not be sold.

 

		10.	PROTECTION OF THE INTERESTS OF THE BENEFICIARY

 

10.1 GENERAL PROVISIONS

 

In the event of the carrying out by the
Company of any of the financial operations pursuant to Article L. 225-181 of the French Commercial Code as follows:

		-	amortization or decrease of the share
capital,

		-	modification to the allocation of profits,

		-	distribution of free shares,

		-	capitalization of reserves, profits, issuance
premiums,

		-	the issuance of shares or securities giving
right to shares to be subscribed for in cash or by set-off of existing indebtedness offered exclusively to the shareholders,

 

the Company shall take the required measures
to protect the interest of the Beneficiaries in the conditions set forth in Article L. 228-99 of the French Commercial Code.

 

The adjustment will be made in accordance
with the provisions of Article R. 228.91 of the French Commercial Code. In addition, all assumptions and substitutions of Incentive
Stock Options shall be determined in accordance with Sections 422 and 424 of the U.S. Internal Revenue Code of 1986, as amended.

 

10.2 ABSORPTION OF THE COMPANY

 

10.2.1 Transfer of the commitments to the
Beneficiary(ies) of the contributions

 

In the case the Company is absorbed by
another company, merges with one or several other companies to form a new company or split off, the company(ies) that benefit(s)
from the contributions could substitute the Company for its duties toward the Beneficiary. In this case, the number and the price
of the shares under option shall be determined either by applying the exchange ratio used for the operation, or by applying other
terms and conditions defined by the parties to the operation. For U.S. Beneficiaries, this will be determined in accordance with
Sections 422, 424 and 409A of the U.S. Internal Revenue Code of 1986, as amended.

 

10.2.2 Absence of transfer of the commitments
to the Beneficiary(ies) of the contributions

 

In the case the company(ies) that benefit(s)
from the contributions decide(s) not to substitute the Company for its duties toward the Beneficiary, the provisions of Article
8 hereof will not be applicable.

 

In this case, the Options may be exercised
by the Beneficiary within the period notified to him by the Board of Directors by registered letter with acknowledgement of receipt
or letter with discharge. Failing that, the share subscription will be null and void. For U.S. Beneficiaries, this will be determined
in accordance with Sections 422, 424 and 409A of the U.S. Internal Revenue Code of 1986, as amended.

 

		11.	REMOVAL FROM LISTING

 

The shares of the Company no longer being
listed on the NASDAQ market or listed on another exchange shall not challenge the rights and obligations of the Beneficiaries as
they are provided herein.

    8 

     

    

		12.	UNAVAILABILITY AND NON-TRANSFERABILITY OF THE OPTIONS

 

Pursuant to Article L. 225-183, paragraph
2 of the French Commercial Code, until the Option has been exercised by the Beneficiary, the corresponding rights are unavailable.

 

An Option may not be sold, pledged, assigned,
hypothecated, transferred or disposed of in any manner other than by will or by laws of descent or distribution and may be exercised,
during the lifetime of the Beneficiary, only by the Beneficiary.

 

However, as it is provided in Article 7.1.2
hereof, in case of death of the Beneficiary, his heirs may exercise the Options within a period of six (6) months as from the death
of the Beneficiary.

 

		13.	AMENDMENT AND TERMINATION OF THE PLAN

 

(a) Amendment and Termination

 

The Board of Directors may at any time
amend, alter, suspend or terminate the Plan to the extent necessary and desirable to comply with applicable French or U.S. legal
requirements.

 

(b) Effect of amendment and termination

 

No amendment, alteration, suspension or
termination of the Plan shall impair the rights of any Beneficiary, unless mutually agreed otherwise between the Beneficiary and
the Board of Directors, which agreement must be in writing and signed by the Beneficiary and the Company.

 

		14.	LIABILITY OF THE COMPANY

 

14.1.       The
inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by any counsel
to the Company to be necessary to the lawful issuance or sale of any shares hereunder, shall relieve the Company of any liability
in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained.

 

14.2.       The
Company and its Affiliates may not be held responsible in any way if the Beneficiary for any reason not attributable to the Company
or its Affiliates was not able to exercise the Options or subscribe the Shares.

 

14.3       Each
Beneficiary understands that the Beneficiary may suffer adverse tax consequences as a result of the subscription or disposition
of the Beneficiary’s Shares, for which the Company and its Affiliates shall not be held responsible. In this respect, each
Beneficiary undertakes that it is not relying on the Company for any tax advice.

 

		15.	INDEPENDENCE OF THE CLAUSES

 

If any provision hereof is held prohibited
or void, at any time, by a competent authority or judicial body, this shall not challenge the remaining provisions that shall be
considered as independent and as having been written or rewritten, depending upon the case, without this prohibited or void provision.

 

		16.	INTERPRETATION

 

It is intended that Options granted under
the Plan shall qualify for the favorable tax and social security charges treatment applicable to Options granted under Sections
L. 225-177 to L. 225-186-1 of the French Commercial Code, the French Tax Code and the French Social Security Code as amended and,
for U.S. Beneficiaries, it is intended that the Options shall qualify as Incentive Stock Options under the U.S. Internal Revenue
Code of 1986, as amended.

 

    9 

     

    

The terms of the Plan shall be interpreted
accordingly and in accordance with the relevant provisions set forth by French tax and social security laws (in particular, Sections
80 quaterdecies of the French Tax Code), as well as the French tax and social security administrations and the relevant guidelines
released by the French tax and social insurance authorities and subject to the fulfilment of legal, tax and reporting obligations.

 

		17.	APPLICABLE LAW AND COMPETENT TRIBUNALS

 

This Plan shall be governed by and construed
in accordance with the laws of France.

 

The tribunals located within the jurisdiction
of the Court of Appeal of LYON shall be exclusively competent to determine any claim or dispute arising in connection herewith.

 

 

 

    10 

     

    

APPENDIX 1

 

FORM OF OPTION AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

11

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