Document:

Exhibit 10.3

Exhibit 10.3

RSU Grant No. XXXX

HMS HOLDINGS CORP.

Restricted Stock Unit Agreement

THIS AGREEMENT, made as of October 1, 2010 between HMS HOLDINGS CORP., a New York corporation
(the “Corporation”), and First Name Last Name (the “Participant”), is pursuant to the Amended and
Restated 2006 Stock Plan of the Corporation (the “Plan”). The Plan, as amended by the Board of
Directors (the “Board”), was last approved by the shareholders (the “Shareholders”) of the
Corporation on June 12, 2009. Said Plan, as it may hereafter be amended and continued by the Board
and the Shareholders, is incorporated herein by reference and made a part of this Agreement.

The Plan is administered by the Compensation Committee (the “Committee”) of the Board, as
defined in the Plan. The Board has determined that it would be to the advantage and interest of the
Corporation and its shareholders to grant the restricted stock units provided for herein to the
Participant as an inducement to remain in the service of the Corporation, or a Parent or a
Subsidiary thereof, and as incentive for increased efforts during such service.

NOW, THEREFORE, pursuant to the Plan, the Corporation, with the approval of the Committee,
hereby grants to the Participant as of the date hereof XXX restricted stock units (the “Units”),
upon the following terms and conditions:

1. The Units shall be credited to a bookkeeping account (the “Account”) maintained by the
Company for the Participant’s benefit. Each Unit shall be deemed to be the equivalent of one share
of the Corporation’s common shares, $.01 par value per share (the “Common Stock”).

2. The Optionee’s right and option to the Units shall vest as follows:

	 	 	 	 	 
	December 31, 2010

	 	 	 	XXX Units
	March 31, 2011

	 	an additional
	 	XXX Units
	June 30, 2011

	 	an additional
	 	XXX Units
	September 30, 2011

	 	an additional
	 	XXX Units

 

 

 

3. (a) In the event the Participant shall cease to be employed by the Corporation by reason of
the Participant’s death, disability (as defined below) or involuntarily by the Corporation other
than for cause (as defined in paragraph (b) below) within 24 months following a Change in Control
(as defined in the Plan), all of the Units shall become fully vested. In the event the Participant
shall cease to be employed by the Corporation by reason of the Participant’s retirement (as defined
below), the Units shall continue to vest under Section 2 and Exhibit A as if the Participant had
continued to be employed by the Corporation until the expiration of two years after the
Participant’s retirement. In the event the Participant shall cease to be employed by the
Corporation for any other reason, the Units which are not then vested shall be forfeited effective
as of the date of termination of employment. For purposes of this Agreement (i) “disability” shall
mean permanent and total disability as defined by Section 22(e)(3) of the Internal Revenue Code of
1986, as amended as it now exists or may hereafter be amended and (ii) “retirement” shall mean
termination of employment on or after attaining age 60 and completing 5 years of service with the
Corporation. The vesting of the Units shall not be affected by any change of duties or position so
long as the Participant continues to be an employee of the Corporation. A leave of absence or an
interruption in service (including an interruption during military service) authorized or approved
by the Corporation shall not be deemed an interruption of employment for purposes of this Section.

(b) For purposes of this Section a termination “for cause” as determined by the Board, shall
be deemed to mean the deliberate gross misconduct of the Participant or the violation by the
Participant, after any such termination, of the terms of a Restrictive Covenant and
Confidentiality/Non-Disclosure Agreement with the Corporation.

4. Nothing in this Agreement shall confer upon the Participant any right to continue in the
employ or service of the Corporation or affect the right of the Corporation to terminate the
Participant’s employment or service at any time.

5. In the event of any merger, reorganization, consolidation, recapitalization, stock
dividend, stock split, reverse stock split, spin-off, extraordinary cash dividend or similar
transaction or other change on corporate structure affecting the Common Stock, the Committee shall make such adjustments and substitutions to the number of Units credited to the
Account and the class and kind of shares (to the nearest possible full share) deemed to be the
equivalent of one Unit as the Committee determines to be appropriate in its sole discretion.

 

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6. During the period that Units remain unvested, the Participant shall have none of the rights
of a stockholder of the Corporation with respect to the Common Stock subject to the Units. On each
date that cash dividends are paid on the Common Stock, the Corporation will credit the Account with
a number of additional Units equal to the result of dividing (i) the product of the total number of
Units credited to the Account on the record date for such dividend and the per share amount of such
dividend by (ii) the Fair Market Value of one share of Common Stock on the date such dividend is
paid by the Corporation to shareholders. The additional Units shall be or become vested to the
same extent as the Units that resulted in the crediting of such additional Units.

7. The Corporation shall make payments to the Participant of the vested Units credited to the
Account upon the dates the Units vest. Payment shall be made in shares of Common Stock equal to the
number of vested Stock Units credited to the Account on each such date. Payment shall be made as
soon as practicable after the applicable vesting date, but in no event later than 30 days after the
applicable vesting date, by delivering the shares to the Participant at the office of the
Corporation at 401 Park Avenue South, New York, New York 10016 or such other place as may be
mutually acceptable to the Corporation and the Participant. Notwithstanding the foregoing,
delivery may be postponed by the Corporation for such period of time as may be required for the
Corporation, with reasonable diligence, to comply with applicable registration requirements under
the Act, the Securities Exchange Act of 1934, as amended, and any requirements under any other law
or regulation applicable to the issuance or transfer of shares.

8. Prior to or concurrently with delivery by the Corporation to the Participant of a
certificate(s) representing the shares of Common Stock in payment of Units, the Participant upon
notification of the amount due, shall pay promptly to the Corporation any amount necessary to
satisfy applicable federal, state or local tax requirements.

9. In the event of the Participant’s death prior to payment of the Units credited to the
Account, payment shall be made to the last beneficiary designated in writing that is received by the Company prior to the Participant’s death or, if no designated
beneficiary survives the Participant, such payment shall be made to the Participant’s estate. In
the event of any attempt by the Participant to transfer, assign, pledge, hypothecate or otherwise
dispose of the Units or of any right hereunder, except as provided for herein or in the 2006 Stock
Plan, or in the event of the levy of any attachment, execution or similar process upon the rights
or interest hereby conferred, the Units to the extent unvested may be forfeited by the Corporation
by notice to the Participant.

 

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10. The Units shall not be transferable other than by will or by the laws of descent and
distribution, or pursuant to a qualified domestic relations order as defined by the Code or Title I
of the Employee Retirement Income Security Act, or the rules thereunder. In the event of any
attempt by the Participant to transfer, assign, pledge, hypothecate or otherwise dispose of the
Units or of any right hereunder, except as provided for herein or in the 2006 Stock Plan, or in the
event of the levy of any attachment, execution or similar process upon the rights or interest
hereby conferred, the Corporation may terminate this Units by notice to the Participant and they
shall thereupon become null and void.

11. The Participant’s right to receive payment under this Agreement shall be an unfunded
entitlement and shall be an unsecured claim against the general assets of the Corporation. The
Participant has only the status of a general unsecured creditor hereunder, and this Agreement
constitutes only a promise by the Corporation to pay the value of the Account on the payment date.

12. This Agreement shall inure to the benefit of and be binding upon the heirs, legatees,
distributees, executors and administrators of the Participant and the successors and assigns of the
Corporation.

13. This Agreement shall be governed by, and interpreted in accordance with, the laws of the
State of New York, other than its conflict of laws principles.

14. This Agreement (and the grant of Units) is not an employment or service contract, and
nothing in this Agreement shall be deemed to create in any way whatsoever any obligation on the
Participant to continue as an employee, or on the Corporation to continue the Participant’s service
as an employee.

15. This Agreement contains the entire agreement between the parties with respect to the
subject matter hereof, and may not be modified except as provided in the Plan or in a written
document executed by both parties.

 

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16. If any provision of this Agreement shall be held unlawful or otherwise invalid or
unenforceable in whole or in part by a court of competent jurisdiction, such provision shall (i) be
deemed limited to the extent that such court of competent jurisdiction deems it lawful, valid
and/or enforceable and as so limited shall remain in full force and effect, and (ii) not affect any
other provision of this Agreement or part thereof.

IN WITNESS WHEREOF, the Corporation has caused this Agreement to be signed by a duly
authorized officer, and the Participant has affixed his signature hereto.

	 	 	 	 	 	 	 
	 	 	By: HMS HOLDINGS CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:
	 	
 

William C. Lucia
	 	 
	 

	 	 	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:
	 	October 1, 2010	 	 
	 
	 	 	 	 	 	 
	 

	 	Participant
	 	 

	 	 
	 
	 	 	 	First Name Last Name	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 

 

Page 5Exhibit 10.4

Exhibit 10.4

Option No. XXXX

HMS HOLDINGS CORP.

Non-Qualified Stock Option Agreement

THIS AGREEMENT, made as of the October 1, 2010 between HMS HOLDINGS CORP., a New York
corporation (the “Corporation”), and First Name Last Name (the “Optionee”), is pursuant to the
Amended and Restated 2006 Stock Plan of the Corporation (the “Plan”). The Plan, as adopted by the
Board of Directors (the “Board”), was approved by the shareholders (the “Shareholders”) of the
Corporation on June 12, 2009. Said Plan, as it may hereafter be amended and continued by the Board
and the Shareholders, is incorporated herein by reference and made a part of this Agreement.

The Plan is administered by the Compensation Committee (the “Committee”) of the Board, as
defined in the Plan. The Board has determined that it would be to the advantage and interest of the
Corporation and its shareholders to grant the option provided for herein to the Optionee as an
inducement to remain in the service of the Corporation, or a Parent or a Subsidiary thereof, and as
incentive for increased efforts during such service.

NOW, THEREFORE, pursuant to the Plan, the Corporation, with the approval of the Committee,
hereby grants to the Optionee as of the date hereof an option (the “Option”) to purchase all or any
part of an aggregate of XXXX shares of the Corporation’s common shares, $.01 par value per share
(the “Common Stock”), at $XX.XX per share upon the following terms and conditions:

1. The Option and all rights of the Optionee to purchase shares of Common Stock hereunder
shall terminate on September 30, 2017 (hereinafter referred to as the “Expiration Date”).

 

 

 

2. The Optionee’s right and option to purchase one-half of the shares of Common Stock pursuant to
the Option shall vest as follows:

	 	 	 	 	 
	December 31, 2011

	 	 	 	XXX shares
	December 31, 2012

	 	an additional
	 	XXX shares
	December 31, 2013

	 	an additional
	 	XXX shares

The Optionee’s right and option to purchase the other one-half of the shares of Common Stock
pursuant to the Option shall vest in accordance with the requirements set forth on Exhibit A.

3. Once the Option has vested in accordance with the preceding Section 2, it shall continue to
be exercisable until the earlier of the termination of the Optionee’s rights hereunder pursuant to
Section 5, or the Expiration Date. A partial exercise of the Option shall not affect the
Optionee’s right to exercise the Option with respect to the remaining shares subject thereto,
subject to the conditions of the Plan and this Agreement. Full payment for shares acquired shall
be made in cash at or prior to the time that an Option, or any part thereof, is exercised.

4. (a) Except as provided in Section 5, the Option may not be exercised unless the Optionee
is, at the time of exercise, an employee, as defined in the Plan, of the Corporation or of a Parent
or Subsidiary, as defined in the Plan, thereof (collectively hereinafter referred to as the
“Corporation”). The Option shall not be affected by any change of duties or position so long as the
Optionee continues to be an employee of the Corporation. A leave of absence or an interruption in
service (including an interruption during military service) authorized or approved by the
Corporation shall not be deemed an interruption of employment for the purposes of Section 5.

(b) No partial exercise of the Option may be for less than 100 full shares (or less than all
the shares as to which the Option is exercisable, if less than 100 shares), and in no event shall
the Corporation be required to issue any fractional shares.

 

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5. (a) In the event the Optionee shall cease to be employed by the Corporation by reason of
the Optionee’s death, disability (as defined below) or involuntarily by the Company other than for
cause (as defined in paragraph (b) below) within 24 months following a Change in Control (as
defined in the Plan), all Options held by the Optionee shall become fully vested and exercisable. In the event the Optionee shall cease
to be employed by the Corporation for any other reason, all unexercised Options held by the
Optionee which are not then exercisable by the Optionee shall lapse effective the date of
termination of employment. For purposes of this Agreement “disability” shall mean permanent and
total disability as defined by Section 22(e)(3) of the Internal Revenue Code of 1986, as amended
(the “Code”) as it now exists or may hereafter be amended

(b) To the extent not theretofore exercised, any Options held by the Optionee which are then
exercisable shall terminate as follows: If the employment is terminated for any reason other than
for cause (as defined below), disability, death or involuntarily by the Corporation other than for
cause within 24 months following a Change in Control, any then exercisable Options shall terminate
upon the expiration of three months after the termination of employment. If the employment
terminates because of disability (as defined in paragraph (a) above) or because of death, any then
exercisable Options shall terminate upon the expiration of one year after the termination of
employment. If the termination is “for cause” as determined by the Board, which shall be deemed to
mean the deliberate gross misconduct of the Optionee or the violation by the Optionee, after any
such termination, of the terms of a Restrictive covenant and Confidentiality/Non-Disclosure
Agreement with the Corporation, any then exercisable Options shall terminate upon the termination
of employment. If the employment is terminated by the Corporation other than for cause (as defined
above) within 24 months following a Change in Control, any then exercisable Options shall terminate
upon the expiration of one year after the termination of employment.

6. Nothing in this Agreement shall confer upon the Optionee any right to continue in the
employ or service of the Corporation or affect the right of the Corporation to terminate the
Optionee’s employment or service at any time.

7. (a) The Optionee may exercise the Option with respect to all or any part of the shares then
exercisable by giving the Corporation written notice at 401 Park Avenue South, New York, New York
10016. Such notice shall specify the number of shares as to which the Option is being exercised
and shall be preceded or accompanied by payment in full in accordance with Section 3 hereof.

 

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(b) Prior to or concurrently with delivery by the Corporation to the Optionee of a
certificate(s) representing such shares, the Optionee shall:

(i) upon notification of the amount due, pay promptly any
amount necessary to satisfy applicable federal, state or local tax
requirements; and

(ii) if such shares are not currently or effectively
registered under the Securities Act of 1933, as amended (the
“Act”) and applicable state securities laws, give satisfactory
assurance in writing signed by the Optionee or his legal
representative, as the case may be, that such shares are being
purchased for investment and not with a view to the distribution
thereof.

(c) As soon as practicable after receipt of the notice and payment referred to in subparagraph
(a) of this Section 7, the Corporation shall cause to be delivered to the Optionee at the office of
the Corporation at 401 Park Avenue South, New York, New York 10016 or such other place as may be
mutually acceptable to the Corporation and the Optionee, a certificate or certificates for such
shares; provided however, that the time of such delivery may be postponed by the Corporation for
such period of time as may be required for the Corporation, with reasonable diligence, to comply
with applicable registration requirements under the Act, the Securities Exchange Act of 1934, as
amended, and any requirements under any other law or regulation applicable to the issuance or
transfer of shares. If the Optionee fails for any reason to accept delivery of all or any part of
the number of shares specified in such notice upon tender of delivery thereof, his right to
purchase such undelivered shares may be terminated.

8. In the event of any merger, reorganization, consolidation, recapitalization, stock
dividend, stock split, reverse stock split, spin-off, extraordinary cash dividend or similar
transaction or other change on corporate structure affecting the Common Stock, the Committee shall
make such adjustments and substitutions to the number, class and kind of shares (to the nearest
possible full share) and to the price per share subject to the unexercised portion of this Option
as the Committee determines to be appropriate in its sole discretion.

 

Page 4

 

9. This Option shall not be transferable other than by will or by the laws of descent and
distribution, or pursuant to a qualified domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act, or the rules thereunder. During
the lifetime of the Optionee, this Option shall be exercisable only by the Optionee. In the event
of any attempt by the Optionee to transfer, assign, pledge, hypothecate or otherwise dispose of the
Option or of any right hereunder, except as provided for herein or in the Amended and Restated 2006
Stock Plan, or in the event of the levy of any attachment, execution or similar process upon the
rights or interest hereby conferred, the Corporation may terminate this Option by notice to the
Optionee and it shall thereupon become null and void.

IN WITNESS WHEREOF, the Corporation has caused this Agreement to be signed by a duly
authorized officer, and the Optionee has affixed his signature hereto.

	 	 	 	 	 	 	 
	 	 	By: HMS HOLDINGS CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:
	 	
 

	 	 
	 

	 	 	 	
William C. Lucia

Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:
	 	October 1, 2010	 	 
	 
	 	 	 	 	 	 
	 

	 	Optionee:	 	 	 	 
	 

	 	 	 	 

First Name Last Name
	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 

 

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EXHIBIT A

The vesting of 50% of the shares of Common Stock pursuant to the Option (the “Performance
Option Shares”) shall occur to the extent that the performance and service conditions set forth
below are satisfied:

Performance Conditions

1. The Corporation’s earnings per share (“EPS”) for the fiscal year ending December 31, 2011
are at least 15% higher than the Corporation’s EPS for fiscal year ending December 31, 2010.

2. Based on the percentage increase in EPS for the fiscal year ending December 31, 2012
compared to EPS for fiscal year ending December 31, 2010 the percentage of Performance Option
Shares that shall be deemed to be vested, subject to satisfaction of the service condition, shall
be determined in accordance with the following table:

	 	 	 
	Increase in EPS
	 	Deemed Vested Percentage
	 
	 	 
	 	 	 
	40% or greater
	 	100%

EPS shall be determined in accordance with generally accepted accounting principles (“GAAP”),
excluding the effects of any transaction during the Performance Period in which the Corporation or
a subsidiary acquires or combines with another company that was not then a subsidiary.

The Committee in its sole discretion following the end of the Performance Period may determine
that, notwithstanding whether the EPS requirement above has been achieved, a larger or smaller
percentage of the Performance Option Shares shall be deemed to be vested (but in no event more than
100%), subject to satisfaction of the service condition.

Service Condition

The Optionee must remain employed by the Corporation until December 31, 2013.

 

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