Document:

Exhibit 10.5  

THE ENSIGN GROUP, INC.

RESTRICTED STOCK AWARD AGREEMENT  

        This  RESTRICTED STOCK AWARD AGREEMENT (the "Agreement") is made this
                        day
of                        ,
                        , by and between The Ensign Group, Inc., a Delaware
corporation
(the "Company") and                        , an individual resident
of                        ,
                        
("Participant"). All capitalized terms used herein but not defined herein shall have the meanings given to them in The Ensign
Group, Inc. 2007 Omnibus Incentive Plan (the "Plan"). 

        1.    Award.    The Company hereby grants to Participant a restricted stock award
of                        shares
(the "Shares") of Common Stock, par value $0.001 per share, of the Company according to the terms and conditions set forth herein and in the
Plan. The Shares are Restricted Stock granted under Section 6(c) of the Plan. A copy of the Plan will be furnished upon request of Participant. With respect to the Shares, Participant shall be
entitled at all times on and after the date of issuance of the Shares to exercise the rights of a stockholder of Common Stock of the Company, including the right to vote the Shares and the right to
receive dividends declared on the Shares. 

        2.    Vesting.    Except as otherwise provided in this Agreement so long as Participant is providing Service, the
Shares shall vest in accordance with the following schedule: 

	On each of

the following dates
	 	Number of

Shares Vested

	
 	
 	

 
	
 	
 	

 
	
 	
 	

 

        3.    Restrictions on Transfer.    Until the Shares vest pursuant to Section 2 or Section 4 hereof, none
of the Shares may be transferred, sold, pledged, alienated, attached or otherwise encumbered, and any purported transfer, sale, pledge, alienation, attachment or encumbrance shall be void and
unenforceable against the Company, and no attempt to transfer the Shares, whether voluntary or involuntary, by operation of law or otherwise, shall vest the purported transferee with any interest or
right in or with respect to the Shares. 

        4.    Forfeiture; Early Vesting.    If Participant ceases to provide Service to the Company or any Affiliate
(as defined in the Plan) prior to vesting of the Shares pursuant to Section 2 hereof, all of Participant's rights to all of the unvested Shares shall be immediately and irrevocably
forfeited to the Company without payment by the Company of any amount with respect thereto, except that if Participant ceases to provide Service by reason of death prior to the vesting of Shares under
Section 2 hereof, all Shares granted hereunder shall vest as of such termination of Service. Upon forfeiture, Participant will no longer have any rights relating to the unvested Shares,
including the right to vote the Shares and the right to receive dividends declared on the Shares. 

        5.    Distributions and Adjustments.    

        (a)   If
any Shares vest subsequent to any change in the number of character of the Common Stock of the Company (through any stock dividend or other distribution,
recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of shares, or otherwise),
Participant shall receive upon such vesting the number and type of securities or other consideration which Participant would have received if such Shares had vested prior to the event changing the
number or character of the outstanding Common Stock. 

        (b)   Any
additional shares of Common Stock of the Company, any other securities of the Company and any other property (except for regular cash dividends or other cash
distributions) distributed with respect to the Shares prior to the date or dates the Shares vest shall be subject to the 

 

same
restrictions, terms and conditions as the Shares to which they relate and shall be promptly deposited with the Secretary of the Company or a custodian designated by the Secretary. 

        6.    Miscellaneous.    

        (a)    Issuance of Shares.    The Company shall cause the Shares to be issued in the name of Participant, either by
book-entry registration or issuance of a stock certificate or certificates evidencing the Shares, which certificate or certificates shall be held by the Secretary of the Company or the
stock transfer agent or brokerage service selected by the Secretary of the Company to provide such services for the Plan. The Shares shall be restricted from transfer and shall be subject to an
appropriate stop-transfer order. If any certificate is used, the certificate shall bear an appropriate legend referring to the restrictions applicable to the Shares. Participant hereby
agrees to the retention by the Company of the Shares and, if a stock certificate is used, agrees to execute and deliver to the Company a blank stock power with respect to the Shares as a condition to
the receipt of this award of Shares. After any Shares vest pursuant to Section 2 hereof, and following payment of the applicable withholding taxes pursuant to Section 6(b) of this
Agreement, the Company shall promptly cause to be issued a certificate or certificates, registered in the name of Participant or in the name of Participant's legal representatives, beneficiaries or
heirs, as the case may be, evidencing such vested whole Shares (less any shares withheld to pay withholding taxes) and shall cause such certificate or certificates to be delivered to Participant or
Participant's legal representatives, beneficiaries or heirs, as the case may be, free of the legend or the stop-transfer order referenced above. The value of any fractional Shares shall be
paid in cash at the time certificates evidencing the Shares are delivered to Participant. 

        (b)    Income Tax Matters.    

        (i)    In
order to comply with all applicable federal or state income tax laws or regulations, the Company may take such action as it deems appropriate to ensure that all
applicable federal or state payroll, withholding, income or other taxes, which are the sole and absolute responsibility of Participant, are withheld or collected from Participant. 

        (ii)   In
accordance with the terms of the Plan, and such rules as may be adopted by the Committee under the Plan, Participant may elect to satisfy Participant's federal and
state income tax withholding
obligations arising from the receipt of, or the lapse of restrictions relating to, the Shares, by (i) delivering cash, check (bank check, certified check or personal check) or money order
payable to the Company, (ii) having the Company withhold a portion of the Shares otherwise to be delivered having a Fair Market Value equal to the amount of such taxes, or
(iii) delivering to the Company shares of Common Stock already owned by Participant having a Fair Market Value equal to the amount of such taxes. Any shares already owned by Participant must
have been held by the Participant for no less than six months prior to the date delivered to the Company if such shares were acquired upon the exercise of an option or upon the vesting of restricted
stock units or other restricted stock. The Company will not deliver any fractional Shares but will pay, in lieu thereof, the Fair Market Value of such fractional Shares. Participant's election must be
made on or before the date that the amount of tax to be withheld is determined. 

        (c)    Plan Provisions Control.    In the event that any provision of the Agreement conflicts with or is inconsistent
in any respect with the terms of the Plan, the terms of the Plan shall control. This Agreement (and any addendum hereto) and the Plan together constitute the entire agreement between the
parties hereto with regard to the subject matter hereof. 

        (d)    No Right to Employment.    The issuance of the Shares shall not be construed as giving Participant the right to
be retained in the employ, or as giving a director of the Company or an Affiliate the right to continue as a director of the Company or an Affiliate, nor will it affect in any way the right of the
Company or an Affiliate to terminate such employment or position at any time, with or without cause. In addition, the Company or an Affiliate may at any time dismiss Participant from employment, or
terminate the term of a director of the Company or an Affiliate, free from any liability 

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or
any claim under the Plan or the Agreement. Nothing in the Agreement shall confer on any person any legal or equitable right against the Company or any Affiliate, directly or indirectly, or give
rise to any cause of action at law or in equity against the Company or an Affiliate. The Award granted hereunder shall not form any part of the wages or salary of Participant for purposes of severance
pay or termination indemnities, irrespective of the reason for termination of employment. Under no circumstances shall any person ceasing to be an employee of the Company or any Affiliate be entitled
to any compensation for any loss of any right or benefit under the Agreement or Plan which such employee might otherwise have enjoyed but for termination of employment, whether such compensation is
claimed by way of damages for wrongful or unfair dismissal, breach of contract or otherwise. By participating in the Plan, Participant shall be deemed to have accepted all the conditions of the Plan
and the Agreement and the terms and conditions of any rules and regulations adopted by the Committee (as defined in the Plan) and shall be fully bound thereby. 

        (e)    Governing Law.    The validity, construction and effect of the Plan and the Agreement, and any rules and
regulations relating to the Plan and the Agreement, shall be determined in accordance with the internal laws, and not the law of conflicts, of the State of Delaware. 

        (f)    Securities Matters.    The Company shall not be required, and shall not have any liability for failure, to
deliver Shares until the requirements of any federal or state securities or other laws, rules or regulations (including the rules of any securities exchange) as may be determined by the Company to be
applicable are satisfied. 

        (g)    Severability.    If any provision of the Agreement is or becomes or is deemed to be invalid, illegal or
unenforceable in any jurisdiction or would disqualify the Agreement under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws,
or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the purpose or intent of the Plan or the Agreement, such provision shall be
stricken as to such jurisdiction or the Agreement, and the remainder of the Agreement shall remain in full force and effect. 

        (h)    No Trust or Fund Created.    Neither the Plan nor the Agreement shall create or be construed to create a trust
or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and Participant or any other person. 

        (i)    Headings.    Headings are given to the Sections and subsections of the Agreement solely as a convenience to
facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Agreement or any provision thereof. 

        (j)    Consultation With Professional Tax and Investment Advisors.    The holder of this Award acknowledges that the
grant, exercise, vesting or any payment with respect to this Award, and the sale or other taxable disposition of the Shares acquired pursuant to the exercise thereof, may have tax consequences
pursuant to the Internal Revenue Code of 1986, as amended, or under local, state or international tax laws. The holder further acknowledges that such holder is relying solely and exclusively on the
holder's own professional tax and investment advisors with respect to any and all such matters (and is not relying, in any manner, on the Company or any of its employees or representatives).
Finally, the holder understands and agrees that any and all tax consequences resulting from the Award and its grant, exercise, vesting or any payment with respect thereto, and the sale or other
taxable disposition of the Shares acquired pursuant to the Plan, is solely and exclusively the responsibility of the holder without any expectation or understanding that the Company or any of its
employees or representatives will pay or reimburse such holder for such taxes or other items. 

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        IN WITNESS WHEREOF, the Company and Participant have executed this Restricted Stock Award Agreement on the date set forth in the first
paragraph. 

	 	 	THE ENSIGN GROUP, INC.
	
 	
 	

 	

 
	

 	
 	

By:	

	

 	
 	

Name:	

	

 	
 	

Title:	

	

 	
 	

 	

 
	
 	
 	
[Participant]
	
 	
 	

 	

 
	
 	
 	

 	

 
	 	 	

	

 	
 	

Name:	

4Exhibit 10.6  

THE ENSIGN GROUP, INC.  

 INDEMNIFICATION AGREEMENT  

        THIS INDEMNIFICATION AGREEMENT (this "Agreement") is effective as
of                        , by and between The Ensign
Group, Inc., a Delaware corporation (the "Company"), and                        (the "Indemnitee"). 

        WHEREAS, the Company desires to attract and retain the services of highly qualified individuals, such as Indemnitee, to serve the Company
as directors and/or officers; 

        WHEREAS, Indemnitee currently is a member of the Company's Board of Directors and/or an officer of the Company; 

        WHEREAS, in order to induce Indemnitee to continue to provide services to the Company, the Company wishes to provide for the
indemnification of, and advancement of expenses to, Indemnitee to the maximum extent permitted by law; 

        WHEREAS, Indemnitee and the Company agree that additional protection is necessary in the current business environment, and the Indemnitee
and certain other directors, officers, employees, agents and fiduciaries of the Company may not be willing to continue to serve in such capacities and the Company may experience difficulties in
attracting qualified persons to serve as officers or directors without additional protection for such persons; 

        WHEREAS, the Company and Indemnitee recognize the continued difficulty in obtaining liability insurance or desired coverage limits and
terms for the Company's directors, officers, employees, agents and fiduciaries, the significant and continual increases in the cost of such insurance and the general trend of insurance companies to
reduce the scope of coverage of such insurance; 

        WHEREAS, the Company and Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting directors,
officers, employees, agents and fiduciaries to expensive litigation risks at the same time as the availability and scope of coverage of liability insurance provide increasing challenges for the
Company; and 

        WHEREAS, in view of the considerations set forth above, the Company desires that Indemnitee shall be indemnified by the Company as set
forth herein. 

        NOW, THEREFORE, the Company and Indemnitee hereby agree as set forth below. 

1.     Certain Definitions.  

        (a)   "Business Day" shall mean any day other than a Saturday, Sunday, national holiday or other day on which banks in the
State of Delaware are required or permitted to be closed. 

        (b)   "Change in Control" shall be deemed to have occurred if, on or after the date of this Agreement, (i) any
"person" (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")), other than a
trustee or other fiduciary holding securities under an employee benefit plan of the Company acting in such capacity or a corporation owned directly or indirectly by the stockholders of the Company in
substantially the same proportions as their ownership of stock of the Company, is or becomes the "beneficial owner" (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the total voting power represented by the Company's then
outstanding Voting Securities, (ii) during any period of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors of the Company and any new
director whose election by the Board of Directors or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still
in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease 

 

for
any reason to constitute a majority thereof, or (iii) the stockholders of the Company approve a merger or consolidation of the Company with any other corporation other than a merger or
consolidation which would result in the Voting Securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into
Voting Securities of the surviving entity) at least 80% of the total voting power represented by the Voting Securities of the Company or such surviving entity outstanding immediately after such merger
or consolidation, or the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company (in one transaction or a series of
related transactions) of all or substantially all of the Company's assets. 

        (c)   "Claim" shall mean any threatened, pending or completed action, suit, proceeding, arbitration or other alternative
dispute resolution mechanism whether brought by or in the right of the Company or otherwise, or any hearing, inquiry or investigation that Indemnitee in good faith believes might lead to the
institution of any such action, suit, proceeding, arbitration or other alternative dispute resolution mechanism, whether civil, criminal, administrative, investigative or other, or any appeal
therefrom. 

        (d)   References
to the "Company" shall include, in addition to The Ensign Group, Inc., any constituent corporation
(including any constituent of a constituent) absorbed in a consolidation or merger to which The Ensign Group, Inc. (or any of its wholly owned subsidiaries) is a party which, if its separate
existence had continued, would have had power and authority to indemnify its directors, officers, employees, agents or fiduciaries, so that if Indemnitee is or was a director, officer, employee, agent
or fiduciary of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee, trustee, agent or fiduciary of another corporation,
partnership, joint venture, employee benefit plan, trust or other enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or
surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence had continued. 

        (e)   "Expenses" shall mean any expenses including, without limitation, reasonable fees, charges and disbursements of counsel
and all other costs, expenses and obligations paid or incurred by Indemnitee in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to
defend, be a witness in or participate in, any Claim relating to any Indemnifiable Event. 

        (f)    "Expense Advance" shall mean an advance payment of Expenses to Indemnitee pursuant to Section 3(b). 

        (g)   "Indemnifiable Event" shall mean any event or occurrence, whether occurring on, prior to, or after the date of this
Agreement (i) related to the fact that Indemnitee is or was a director, officer, employee, agent or fiduciary of the Company, or any subsidiary of the Company, or is or was serving at the
request of the Company as a director, officer, employee, trustee, agent or fiduciary of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, or
(ii) by reason of any action or inaction on the part of Indemnitee while serving in any capacity set forth in clause (i). 

        (h)   "Independent Legal Counsel" shall mean an attorney or firm of attorneys, selected in accordance with the provisions of
Section 2(c), who shall not have otherwise performed services for the Company or Indemnitee within the last three years (other than with respect to matters concerning the rights of Indemnitee
under this Agreement, or of other indemnitees under similar indemnity agreements). Notwithstanding the foregoing, Independent Legal Counsel shall not include any person or firm that, under the
applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under
this Agreement. 

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        (i)    "Losses" shall mean (i) any amounts or sums which Indemnitee is legally obligated to pay as a result of a Claim or
Claims made against Indemnitee for Indemnifiable Events including, without limitation, damages, judgments, fines, penalties, ERISA excise taxes and penalties, and sums or amounts paid in settlement
(if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) of such Claim or Claims, and (ii) to the extent not paid in advance pursuant to the
terms of this Agreement for any reason, Expenses. 

        (j)    "Reviewing Party" shall mean any appropriate person or body consisting of a member or members of the Company's Board of
Directors, or any other person or body appointed by the Board of Directors, who is not a party to the particular Claim for which Indemnitee is seeking indemnification, or Independent Legal Counsel as
provided in Section 2(c). 

        (k)   "Voting Securities" shall mean any securities of the Company (or a surviving entity as described in the definition of a
"Change in Control") that vote generally in the election of directors. 

2.     Indemnification.  

        (a)    Agreement to Indemnify.    If Indemnitee was, is or becomes a party to or witness or other participant in, or
is threatened to be made a party to or witness or other participant in, a Claim by reason of (or arising in part out of) an Indemnifiable Event, the Company will, to the fullest extent permitted by
law, indemnify Indemnitee against, and will make Expense Advances from time to time of, any and all Expenses and Losses (including all interest, assessments and other charges paid or payable in
connection with or in respect of such Expenses and Losses, but excluding amounts paid in settlement of any such Claim if such settlement was not approved by the Company) arising from or relating to
such
Claim (whether or not such Claim proceeds to judgment or is settled or otherwise is brought to a disposition) incurred by Indemnitee by reason of (or arising in part out of) such Indemnifiable Event. 

        (b)    Review of Indemnification Obligations.    Notwithstanding the provisions of Section 2(a), (i) the
obligations of the Company under Section 2(a) to make indemnification payments for Losses shall be subject to the condition that the Reviewing Party shall have determined (in a written opinion,
in any case in which Independent Legal Counsel is the Reviewing Party) that Indemnitee would be permitted to be indemnified under this Agreement and applicable law, and (ii) the obligation of
the Company to make an Expense Advance shall be subject to the condition that, if, when and to the extent that the Reviewing Party determines that Indemnitee would not be permitted to be so
indemnified under applicable law, the Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for all such amounts theretofore paid; provided, however,
that if Indemnitee has commenced or thereafter commences legal proceedings in a court specified in Section 15 to secure a determination that Indemnitee should be indemnified under applicable
law, any determination made by the Reviewing Party that Indemnitee would not be permitted to be indemnified under applicable law shall not be binding and Indemnitee shall not be required to reimburse
the Company for any Expense Advance until a final judicial determination is made with respect thereto (as to which all rights of appeal therefrom have been exhausted or lapsed). Indemnitee's
obligation to reimburse the Company for any Expense Advance shall be unsecured and no interest shall be charged thereon. If there has been no determination by the Reviewing Party within ten
(10) Business Days after written demand by Indemnitee for Losses or Expense Advance is received by the Company, or if the Reviewing Party determines that Indemnitee substantively would not be
permitted to be indemnified in whole or in part under this Agreement or applicable law, Indemnitee shall have the right to commence litigation seeking an initial determination by the court or
challenging any such determination by the Reviewing Party or any aspect thereof, including the legal or factual bases therefor, and the Company hereby consents to service of process and to appear in
any such proceeding. Absent such litigation, any determination by the Reviewing Party shall be conclusive and binding on the Company and Indemnitee. 

3

 

        (c)    Selection of Reviewing Party.    For matters that require a determination by the Reviewing Party in respect of
Losses, the Reviewing Party shall be the following: 

        (i)    If
Indemnitee is a director or officer claiming a right to indemnity for Losses under this Agreement or under the Company's Certificate of Incorporation or Bylaws at the
time a determination by the Reviewing Party is required (a "Current Director or Officer") and if no Change in Control has occurred that was not approved by a majority of the Company's Board of
Directors who were directors immediately prior to such Change in Control (any such non-preapproved transaction, a "Triggering Change in Control"), then the Reviewing Party will be the
members of the Company's Board of Directors who are not parties to the Claim for which indemnification is being sought, or a committee of such directors designated by majority vote of the directors
who are not parties to the Claim for which indemnification is being sought, or if such directors or committee so decide, the Independent Legal Counsel. 

        (ii)   If
Indemnitee is not a Current Director or Officer and no Triggering Change in Control has occurred, then the Reviewing Party will be the Company's chief executive
officer or chief financial officer, acting on behalf of the Company, unless the Indemnitee expressly demands in writing at the time that he or she makes a demand for indemnification of a Loss that
Independent Legal Counsel be the Reviewing Party, in which event Independent Legal Counsel shall be the Reviewing Party. 

        (iii)  If
a Triggering Change in Control has occurred, then the Reviewing Party will be Independent Legal Counsel unless Indemnitee, in its sole discretion, waives the right
to have Independent Legal Counsel be the Reviewing Party, in which case the Reviewing Party will be the members of the Company's Board of Directors who are not parties to the Claim for which
indemnification is being sought. 

In
all circumstances where Independent Legal Counsel is the Reviewing Party, such Independent Legal Counsel shall be selected by Indemnitee and approved by the Company (which approval shall not be
unreasonably withheld) and shall otherwise meet the definition of Independent Legal Counsel in Section 1(h). 

        (d)    Independent Legal Counsel Opinion.    In any case in which Independent Legal Counsel is acting as the Reviewing
Party, such counsel, among other things, shall render its written opinion to the Company and Indemnitee as to whether and to what extent Indemnitee would be permitted to be indemnified under this
Agreement and applicable law. The Company agrees to abide by such opinion and to pay a reasonable retainer fee and the reasonable fees, charges and disbursements of any Independent Legal Counsel
selected to act as the Reviewing Party and to indemnify fully such counsel against any and all expenses (including reasonable fees, charges and disbursements of counsel), claims, liabilities and
damages arising out of or relating to this Agreement or its engagement pursuant hereto. Notwithstanding any other provision of this Agreement, the Company shall not be required to pay expenses of more
than one Independent Legal Counsel in connection with all matters concerning the Indemnitee, and such Independent Legal Counsel shall be the Independent Legal Counsel for any or all other indemnitees
making indemnification claims that relate to the same Claim as the Indemnitee's unless (i) the Company otherwise determines or (ii) any Indemnitee shall provide a written statement
setting forth in detail a reasonable objection to such Independent Legal Counsel making any determination with respect to other indemnitees. 

        (e)    Mandatory Payment of Expenses.    Notwithstanding any other provision of this Agreement other than
Section 10, to the extent that Indemnitee has been successful on the merits or otherwise, including, without limitation, the dismissal of an action without prejudice, in defense of any Claim
regarding any Indemnifiable Event, Indemnitee shall be indemnified against all Expenses incurred by Indemnitee in connection therewith. 

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3.     Indemnification Procedure.  

        (a)    Payment of Indemnification.    Payment of Expenses and Losses shall be made by the Company as soon as
practicable but in any event no later than thirty (30) Business Days after written demand by Indemnitee therefor is received by the Company (which written demand shall include such
documentation and information in reasonable detail as is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification, including but not limited to copies of
invoices received by Indemnitee in connection with Expenses; provided that, in the case of invoices in connection with legal services, any reference to legal work performed or to expenditures made
that would cause Indemnitee to waive any privilege accorded by applicable law shall not be included with the invoice), unless the Reviewing Party has provided a written determination to the Company
that Indemnitee is not entitled to indemnification under applicable law. The Reviewing Party making the determination with respect to Indemnitee's entitlement to indemnification shall notify
Indemnitee of such written determination no later than ten (10) Business Days thereafter. 

        (b)    Expense Advances.    If so requested by Indemnitee, the Company shall advance any and all Expenses to
Indemnitee (an "Expense Advance") within thirty (30) Business Days after the receipt by the Company of a statement or statements from Indemnitee
requesting such advance or advances (which statement or statements shall satisfy the reasonable detail requirement of Section 3(a) above), whether prior to or after final disposition of any
Claim relating to an Indemnifiable Event. Advances shall be made without regard to Indemnitee's ability to repay the Expenses and without regard to Indemnitee's ultimate entitlement to indemnification
under the provisions of this Agreement. The Indemnitee shall qualify for advances solely upon the execution and delivery to the Company of an undertaking in form and substance reasonably satisfactory
to the Company providing that the Indemnitee undertakes to repay the advance if and to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company.
Advances shall include any and all reasonable Expenses incurred pursuing an action to enforce this right of advancement. 

        (c)    Action to Compel Payment.    If a claim for indemnification for Losses or any Expense Advance pursuant to this
Agreement is not paid in full for any reason (including, but not limited to, a decision adverse to the Indemnitee by the Reviewing Party, or the failure of the Reviewing Party to render its
determination) within thirty (30) Business Days of the date of written demand, in the case of Expense Advance, or thirty (30) days of the date of written demand in the case of any other
claim for indemnification of Losses or Expenses, then Indemnitee may file suit to recover the unpaid amount of such claim in a court specified in Section 15. The provisions of
Sections 3(e) and 13 shall be applicable to any such action. 

        (d)    Notice/Cooperation by Indemnitee.    Indemnitee shall, as a condition precedent to Indemnitee's right to
receive Expense Advances and to be indemnified for Losses under this Agreement, give the Company notice in writing as soon as practicable of any Claim made against Indemnitee relating to an
Indemnifiable Event for which a request for Expense Advance or for which indemnification for Losses will or could be sought under this Agreement. Notice to the Company shall be directed to the Chief
Executive Officer of the Company at the address shown on the signature page of this Agreement (or such other address as the Company shall designate in writing to Indemnitee). In addition, Indemnitee
shall give the Company such information and cooperation as the Company may reasonably require and as shall be within Indemnitee's power. 

        (e)    Burden of Proof; No Presumption Against Indemnitee.    For purposes of this Agreement, the termination of any
Claim relating to an Indemnifiable Event by judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a
presumption that Indemnitee did not meet any particular standard of conduct or have any particular belief or that a court has determined that Expense Advances or indemnification for Losses is not
permitted by applicable law or hereunder. In addition, neither the failure of the 

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Reviewing
Party to have made a determination as to whether Indemnitee has met any particular standard of conduct or had any particular belief, nor an actual determination by the Reviewing Party that
Indemnitee has not met such standard of conduct or did not have such belief, prior to the commencement of legal proceedings by Indemnitee to secure a judicial determination that Indemnitee should be
entitled to receive Expense Advances or be indemnified for Losses under applicable law, shall be a defense to Indemnitee's claim or create a presumption that Indemnitee has not met any particular
standard of conduct or did not have any particular belief. In connection with any determination by the Reviewing Party or otherwise as to whether Indemnitee is entitled to Expense Advances or
indemnification for Losses under applicable law or hereunder, the burden of proof shall be on the Company to establish that Indemnitee is not so entitled. 

        (f)    Notice to Insurers.    If, at the time of the receipt by the Company of a notice of a Claim relating to an
Indemnifiable Event pursuant to Section 3(d), the Company has liability insurance in effect which may cover such Claim, the Company shall give prompt notice of the commencement of such Claim to
the insurers in accordance with the procedures set forth in each of the Company's policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf
of the Indemnitee, all amounts payable as a result of such Claim in accordance with the terms of such policies. 

        (g)    Selection of Counsel.    In any Claim made against Indemnitee relating to an Indemnifiable Event for which a
request for Expense Advance or for which indemnification for Losses will or could be sought under this Agreement, the Company shall be entitled to assume the defense of such Claim with counsel
approved by Indemnitee (which approval shall not be unreasonably withheld) upon the delivery to Indemnitee of written notice of the Company's election so to do. After delivery of such notice, approval
of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by
Indemnitee with respect to the same Claim; provided that (i) Indemnitee shall have the right to employ Indemnitee's separate counsel in any such Claim at Indemnitee's expense and (ii) if
(A) the employment of separate counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee shall have reasonably concluded that there may be a conflict of
interest between the Company and Indemnitee in the conduct of any such defense, or (C) the Company shall not continue to
retain such counsel to defend such Claim, then the fees and expenses of Indemnitee's separate counsel shall be at the expense of the Company. 

4.     Additional Indemnification Rights; Nonexclusivity.  

        (a)    Scope.    The Company hereby agrees to make Expense Advances to, and indemnify, the Indemnitee to the fullest
extent permitted by law, notwithstanding that such Expense Advances and indemnification are not specifically authorized by the other provisions of this Agreement, the Company's Certificate of
Incorporation, the Company's Bylaws or by statute. In the event of any change after the date of this Agreement in any applicable law, statute or rule which expands the right of a Delaware corporation
to indemnify a member of its board of directors or an officer, employee, agent or fiduciary, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits
afforded by such change. In the event of any change in any applicable law, statute or rule which narrows the right of a Delaware corporation to indemnify a member of its board of directors or an
officer, employee, agent or fiduciary, such change, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the
parties' rights and obligations hereunder except as set forth in Section 9(a). 

        (b)    Nonexclusivity.    The rights to Expense Advances and indemnification for Losses provided by this Agreement
shall be in addition to any rights to which Indemnitee may be entitled under the Company's Certificate of Incorporation, its Bylaws, any other agreement, any vote of stockholders or disinterested
directors, the General Corporation Law of the State of Delaware, or otherwise. The 

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indemnification
provided under this Agreement shall continue as to Indemnitee for any action taken or not taken by Indemnitee while serving in an indemnified capacity even though Indemnitee may have
ceased to serve in such capacity. 

5.     No Duplication of Payments.  

        The Company shall not be liable under this Agreement to make any payment in connection with any Claim made against Indemnitee to the extent Indemnitee has
otherwise actually received payment, under any insurance policy, provision of the Company's Certificate of Incorporation, Bylaw or otherwise, of the amounts otherwise indemnifiable hereunder. 

6.     Partial Indemnification.  

        If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses or Losses incurred in
connection with any Claim relating to an Indemnifiable Event, but not, however, for all of the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such
Expenses or Losses to which Indemnitee is entitled. 

7.     Mutual Acknowledgment.  

        Both the Company and Indemnitee acknowledge that in certain instances, federal law or applicable public policy may prohibit the Company from indemnifying its
directors, officers, employees, agents or fiduciaries under this Agreement or otherwise. Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future to
undertake with the Securities and Exchange Commission to submit the question of indemnification to a court in certain circumstances for a determination of the Company's right under public policy to
indemnify Indemnitee. 

8.     Liability Insurance.  

        The Company shall, from time to time, make the good faith determination whether or not it is practicable for the Company to obtain and maintain a policy or
policies with reputable insurance companies covering certain liabilities that may be incurred by its directors and officers. Notwithstanding the foregoing, the Company shall have no obligation to
obtain or maintain such insurance if the Company determines in good faith that such insurance is not reasonably available, if the premium costs for such insurance are disproportionate to the amount of
coverage provided, if the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit, or if the Indemnitee is covered by similar insurance maintained by a
parent or subsidiary of the Company. The Indemnitee shall be entitled to the protection of any such insurance policies the Company may elect to maintain generally for the benefit of its directors and
officers (and to the extent the Company maintains such an insurance policy or policies, the Indemnitee shall be covered by such policy or policies in accordance with its or their terms, to the maximum
extent of the coverage available for any officer or director of the Company). 

9.     Exceptions.  

        Notwithstanding any other provision of this Agreement to the contrary, the Company shall not be obligated pursuant to the terms of this Agreement: 

        (a)    Excluded Action or Omissions.    To indemnify Indemnitee for acts, omissions or transactions for which
Indemnitee is prohibited from receiving indemnification under applicable law. 

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        (b)    Claims Initiated by Indemnitee.    To indemnify for Losses or make Expense Advances to Indemnitee with
respect
to Claims initiated or brought voluntarily by Indemnitee and not by way of defense, except (i) with respect to actions or proceedings brought to establish or enforce a right to receive Expense
Advances or indemnification for Losses under this Agreement or any other agreement or insurance policy or under the Company's Certificate of Incorporation or Bylaws now or hereafter in effect relating
to Claims for Indemnifiable Events, (ii) in specific cases if the Board of Directors has approved the initiation or bringing of such Claim, or (iii) as otherwise required under Delaware
Law. 

        (c)    Lack of Good Faith.    To indemnify Indemnitee for any Expenses incurred by the Indemnitee with respect to any
proceeding instituted (i) by Indemnitee to enforce or interpret this Agreement, if a court specified in Section 15 determines that each of the material assertions made by the Indemnitee
in such proceeding was not made in good faith or was frivolous, or (ii) by or in the name of the Company to enforce or interpret this Agreement, if a court specified in Section 15
determines that each of the material defenses asserted by Indemnitee in such proceeding was made in bad faith or was frivolous. 

        (d)    Claims Under Section 16(b).    To indemnify Indemnitee for expenses and the payment of profits arising
from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute. 

10.   Period of Limitations.  

        No legal action relating to the entitlement of Indemnitee to Expense Advances or indemnification for Losses shall be brought and no such cause of action shall be
asserted by or in the right of the Company against Indemnitee, Indemnitee's estate, spouse, heirs, executors or personal or legal representatives after the expiration of two years from the date of
accrual of such cause of action, and any claim or cause of action of the Company shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such
two-year period; provided, however, that if any shorter period of limitations is otherwise applicable to any such cause of action, such shorter period shall govern. 

11.   Counterparts.  

        This Agreement may be executed in one or more counterparts, each of which shall constitute an original. 

12.   Binding Effect; Successors and Assigns.  

        This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors, assigns (including any
direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Company), spouses, heirs and personal and legal
representatives. The Company shall require and cause any successor (whether direct or indirect, and whether by purchase, merger, consolidation or otherwise) to all, substantially all, or a substantial
part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner
and to the same extent that the Company would be required to perform if no such succession had taken place, provided that if the Company continues to exist it shall remain jointly and severally liable
with such successor for the obligations hereunder. This Agreement shall continue in effect regardless of whether Indemnitee continues to serve as a director, officer, employee, agent or fiduciary (as
applicable) of the Company or of any other enterprise, including subsidiaries and employee benefit plans of the Company, at the Company's request. 

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13.   Attorneys' Fees.  

        In the event that any action is instituted by Indemnitee under this Agreement or under any liability insurance policies maintained by the Company to enforce or
interpret any of the terms hereof or thereof, Indemnitee shall be entitled to be paid all Expenses incurred by Indemnitee with respect to such action if Indemnitee is ultimately successful in such
action, and shall be entitled to the advancement of Expenses with respect to such action, unless as a part of such action a court specified in Section 15 determines that each of the material
assertions made by Indemnitee as a basis for such action were not made in good faith or were frivolous. In the event of an action instituted by or in the right of the Company under this Agreement to
enforce or interpret any of the terms of this Agreement, Indemnitee shall be entitled to be paid all Expenses incurred by Indemnitee in defense of such action (including costs and expenses incurred
with respect to Indemnitee's counterclaims and cross-claims made in such action), and shall be entitled to the advancement of Expenses with respect to such action, unless as a part of such action a
court specified in Section 15 determines that each of Indemnitee's material defenses to such action were made in bad faith or were frivolous. 

14.   Notice.  

        Unless otherwise set forth in this Agreement, all notices, requests, demands and other communications required or permitted under this Agreement shall be in
writing and shall be deemed effectively given (i) if delivered by hand and signed for by the party addressed, on the date of such delivery, (ii) if delivered by Federal Express or
similar overnight courier, freight prepaid, on the first Business Day after the date of deposit, or (iii) if mailed by domestic certified or registered mail with postage prepaid, on the fifth
Business Day after the date postmarked. Notices shall be addressed if to Indemnitee, at Indemnitee's address as set forth beneath Indemnitee's signature to this Agreement and if to the Company at the
address of its principal corporate offices (attention: Chief Executive Officer) or at such other address as such party may designate by ten (10) Business Days' advance written notice to the
other party hereto. 

15.   Consent to Jurisdiction.  

        The Company and Indemnitee each hereby irrevocably consent to the exclusive jurisdiction and venue of the courts of the State of Delaware for all purposes in
connection with any action or proceeding which arises out of or relates to this Agreement, and agree that any action instituted under this Agreement shall be commenced, prosecuted and continued only
in the Court of Chancery of the State of Delaware in and for New Castle County, which shall be the exclusive and only proper forum for adjudicating such a claim. The Company and Indemnitee irrevocably
waive any right to object that any action brought in such court is in an inconvenient forum. 

16.   Severability.  

        The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including any provision within a single section, paragraph or
sentence) are held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable, and the remaining provisions shall remain enforceable to the fullest extent permitted by law.
Furthermore, to the fullest extent possible, the provisions of this Agreement (including, without limitations, each portion of this Agreement containing any provision held to be invalid, void or
otherwise unenforceable, that is not itself invalid, void or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable. 

9

 

17.   Choice of Law.  

        This Agreement shall be governed by and its provisions construed and enforced in accordance with the laws of the State of Delaware, as applied to contracts
between Delaware residents, entered into and to be performed entirely within the State of Delaware, without regard to the conflict of laws principles thereof. 

18.   Subrogation.  

        In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who
shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Company effectively to bring suit to enforce such rights. 

19.   Amendment and Termination.  

        No amendment, modification, termination or cancellation of this Agreement shall be effective unless it is in writing signed by both the parties hereto. No waiver
of any of the provisions of this Agreement shall be deemed to be or shall constitute a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing
waiver. 

20.   Integration and Entire Agreement.  

        This Agreement sets forth the entire understanding between the parties hereto and supersedes and merges all previous written and oral negotiations, commitments,
understandings and agreements relating to the subject matter hereof between the parties hereto. 

21.   No Construction as Employment Agreement.  

        Nothing contained in this Agreement shall be construed as giving Indemnitee any right to be retained in the employ of the Company or any of its subsidiaries or
affiliated entities. 

22.   Contribution.  

        To the fullest extent permissible by applicable law, if the indemnification provided for in this Agreement is held by a court specified in Section 15 to be
unavailable to Indemnitee for any reason whatsoever, then the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee for Losses in connection with any Claim
relating to an Indemnifiable Event, in such proportion as is fair and reasonable in light of all of the circumstances of such Claim in order to reflect (i) the relative benefits received by the
Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Claim; and/or (ii) the relative fault of the Company (and its directors, officers, employees,
agents and fiduciaries) and Indemnitee in connection with such event(s) and/or transaction(s); and/or (iii) any other relevant equitable considerations. 

10

 

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

	COMPANY:	 	 
	

THE ENSIGN GROUP, INC.,

a Delaware corporation	
 	

 
	

By:	
 	

    
    Christopher Christensen,

    Chief Executive Officer and President	
 	

 
	

 	
 	

    27101 Puerta Real, Suite 450

    Mission Viejo, CA 92691	
 	

 

INDEMNITEE:  

                                         
                                          
    

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Name:                                        
                          
 

Address:                                      
                                  

                                        
                                          
    
 

Facsimile:                                      
                                

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