Document:

Exhibit 10.12

    EXHIBIT
      10.12

    

    

    Stock
      Option Grant

    

    Sun
      Healthcare Group, Inc.

    2004
      Equity Incentive Plan

    

    Name
      of Optionee:                            [______]

    

    Shares
      Subject to Option:             
         [______] shares of common stock, par value $.01 (“Common
      Stock”), of Sun Healthcare Group, Inc. (the “Company”).

    

    Type
      of Option:                                
       Nonqualified Stock Option

    

    Exercise
      Price Per Share:                   $[______]

    

    Date
      of Grant:                                      [______],
      2007

    

    Date
      Exercisable/Vesting:                
      This option may be exercised to the extent the shares of Common Stock subject
      to
      this option have vested at any time after the Date of Grant. The option vests
      as
      follows (1) This option will vest with respect to 25% on each of the first
      four
      anniversaries of the Date of Grant, subject in each case to the Terms; (2)
      This
      option vests upon your termination of Service by the Company without Good Cause
      or your resignation from Service for Good Reason (as defined in the Terms);
      and
      (3) This option vests upon the date of a Change in Control if you are employed
      by the Company or a Parent or Subsidiary on that date (as defined in the
      Terms).

    

    Expiration
      Date:                                  [______],
      2014

    

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

    

    Optionee:                                          
      Sun
      Healthcare Group, Inc.

     

    ________________________                           
______________________________
                                                                                                     
      By: Richard K. Matros

                                                                                                          Title:
      Chief Executive Officer

     

    CONSENT
      OF SPOUSE

     

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

    

     

    __________________________________   ______________________

    SECTION
      1. SIGNATURE
      OF SPOUSE      DATE

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    Stock
      Option Agreement

    

    

    Sun
      Healthcare Group, Inc. 

    2004
      Equity Incentive Plan

    

    SECTION
      2. GRANT
      OF OPTION.

     

    (a) Option.
      On the
      terms and conditions set forth in this Agreement and each Notice of Stock Option
      Grant referencing this Agreement (the “Notice”), the Company grants to the
      Optionee on the Date of Grant an option to purchase at the Exercise Price a
      number of shares of Common Stock, all as set forth in the Notice. Each such
      Notice, together with this referenced Agreement, shall be a separate option
      governed by the terms of this Agreement.

     

    (b) Plan
      and Defined Terms.
      This
      option is granted under and subject to the terms of the 2004 Equity Incentive
      Plan (the “Plan”), which is incorporated herein by this reference. Capitalized
      terms are defined in the Plan.

     

    (c) Scope
      of this Agreement.
      This
      Agreement shall apply both to this option (or options) and to the shares of
      Common Stock acquired upon the exercise of such option(s).

     

    SECTION
      3. RIGHT
      TO EXERCISE.

     

    Subject
      to the conditions set forth in this Agreement, all or part of this option may
      be
      exercised prior to its expiration at the time or times set forth in the
      Notice.

     

    SECTION
      4. TRANSFER
      OR ASSIGNMENT OF OPTION.

     

    (a) Generally.
      This
      option shall be exercisable during the Optionee’s lifetime, only by the
      Optionee. Except as otherwise provided in subsection (b) below, this option
      and
      the rights and privileges conferred hereby shall not be sold, pledged or
      otherwise transferred (whether by operation of law or otherwise) other than
      by
      will or the laws of descent and distribution and shall not be subject to sale
      under execution, attachment, levy or similar process.

     

    (b) Permitted
      Transfers.
      The
      Optionee shall be permitted to transfer this option, in connection with his
      or
      her estate plan, to the Optionee’s spouse, siblings, parents, children and
      grandchildren or trusts for the benefit of such persons or partnerships,
      corporations, limited liability companies or other entities owned solely by
      such
      persons, including trusts for such persons.

     

    SECTION
      5. EXERCISE
      PROCEDURES.

     

    (a) Notice
      of Exercise.
      The
      Optionee or the Optionee’s representative may exercise this option by giving
      written notice to the Company specifying the election to exercise this option,
      the number of shares of Common Stock for which it is being exercised and the
      form of payment. Exhibit
      A
      is an
      example of a “Notice of Exercise”. The Notice of Exercise shall be signed by the
      person exercising this option. In the event that this option is being exercised
      by the Optionee’s representative, the notice shall be accompanied by proof
      (satisfactory to the Company) of the representative’s right to exercise this
      option. The Optionee or the Optionee’s representative shall deliver to the
      Company, at the time of giving the notice, payment in a form permissible under
      Section 5 for the full amount of the Purchase Price.

      
        
          
          

        

        
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    (b) Issuance
      of Common Stock.
      After
      receiving a proper notice of exercise, the Company shall cause to be issued
      a
      certificate or certificates for the shares of Common Stock as to which this
      option has been exercised, registered in the name of the person exercising
      this
      option (or in the names of such person and his or her spouse as community
      property or as joint tenants with right of survivorship). 

     

    (c) Withholding
      Requirements.
      The
      Company may withhold any tax (or other governmental obligation) as a result
      of
      the exercise of this option, as a condition to the exercise of this option,
      and
      the Optionee shall make arrangements satisfactory to the Company to enable
      it to
      satisfy all such withholding requirements. The Optionee shall also make
      arrangements satisfactory to the Company to enable it to satisfy any withholding
      requirements that may arise in connection with the vesting or disposition of
      shares of Common Stock purchased by exercising this option.

     

    SECTION
      6. PAYMENT
      FOR SHARES OF COMMON STOCK.

     

    (a) Cash
      or Check.
      All or
      part of the Purchase Price may be paid in cash or by check.

     

    (b) Alternative
      Methods of Payment.
      At the
      sole discretion of the Committee, all or any part of the Purchase Price and
      any
      applicable withholding requirements may be paid by one or more of the following
      methods:

     

    (i) Surrender
      of Stock.
      By
      surrendering, or attesting to the ownership of, shares of Common Stock that
      are
      already owned by the Optionee free and clear of any restriction or limitation,
      unless the Company specifically agrees to accept such shares of Common Stock
      subject to such restriction or limitation. Such shares of Common Stock shall
      be
      surrendered to the Company in good form for transfer and shall be valued at
      their Fair Market Value on the date of the applicable exercise of this option.
      The Optionee shall not surrender, or attest to the ownership of, shares of
      Common Stock in payment of the Purchase Price (or withholding) if such action
      would cause the Company to recognize compensation expense (or additional
      compensation expense) with respect to this option for financial reporting
      purposes that otherwise would not have occurred.

     

    (ii) Exercise/Sale.
      By the
      delivery (on a form prescribed by the Company) of an irrevocable direction
      (A)
      to a securities broker approved by the Company to sell shares of Common Stock
      and to deliver all or part of the sales proceeds to the Company, or (B) to
      pledge shares of Common Stock to a securities broker or lender approved by
      the
      Company as security for a loan, and to deliver all or part of the loan proceeds
      to the Company.

     

    Should
      the Committee exercise its discretion to permit the Optionee to exercise this
      option in whole or in part in accordance with this subsection (b) above, it
      shall have no obligation to permit such alternative exercise with respect to
      the
      remainder of this option or with respect to any other option to purchase shares
      of Common Stock held by the Optionee.

     

    SECTION
      7. TERM
      AND EXPIRATION.

     

    (a) Basic
      Term.
      Subject
      to earlier termination in accordance with subsection (b) below, the exercise
      period of this option shall expire on the expiration date set forth in the
      Notice, or in the event of the Optionee's death, the date that is one (1) year
      after the Optionee's Service terminates because of his or her death, if
      later.

      
        
          
          

        

        
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    (b) Termination
      of Service.
      If the
      Optionee’s Service terminates for any reason, then the exercise period for this
      option shall expire on the earliest of the following occasions (or such later
      date as the Committee may determine):

     

    (i) The
      expiration date determined pursuant to subsection (a) above;

     

    (ii) The
      date
      three (3) months after the termination of the Optionee’s Service for any reason
      other than death, Disability or Cause;

     

    (iii) The
      date
      six (6) months after the termination of the Optionee’s Service by reason of
      Disability or retirement pursuant to any then current formal retirement policy
      of the Company; 

     

    (iv) The
      date
      twelve (12) months after the Optionee’s death; or

     

    (v) The
      date
      of termination of the Optionee’s Service if such termination is for Cause or if
      Cause exists on such date.

     

    The
      Optionee (or in the case of the Optionee’s death or disability, the Optionee’s
      representative) may exercise all or part of this option at any time before
      its
      expiration under the preceding sentence, but only to the extent that this option
      had become exercisable for vested shares of Common Stock on or before the date
      the Optionee’s Service terminates. When the Optionee’s Service terminates, this
      option shall expire immediately with respect to the number of shares of Common
      Stock for which this option is not yet vested.

     

    (c) Leaves
      of Absence.
      For any
      purpose under this Agreement, Service shall be deemed to continue while the
      Optionee is on a bona fide leave of absence, if such leave was approved by
      the
      Company in writing or if continued crediting of Service for such purpose is
      expressly required by the terms of such leave or by applicable law (as
      determined by the Company).

     

    SECTION
      8. ADJUSTMENT
      OF SHARES OF COMMON STOCK.

     

    (a) Adjustment
      Generally.
      If
      there shall be any change in the Common Stock of the Company, through merger,
      consolidation, reorganization, recapitalization, stock dividend, stock split,
      reverse stock split, split up, spin-off, combination of shares of Common Stock,
      exchange of shares of Common Stock, dividend in kind or other like change in
      capital structure or distribution (other than normal cash dividends) to
      stockholders of the Company, an adjustment shall be made to this option so
      that
      this option shall thereafter be exercisable for such securities, cash and/or
      other property as would have been received in respect of the Common Stock
      subject to the option had such option been exercised in full immediately prior
      to such change or distribution, and such an adjustment shall be made
      successively each time any such change shall occur.

    

    (b) Modification
      of Option.
      In the
      event of any change or distribution described in subsection (a) above, in order
      to prevent dilution or enlargement of the Optionee's rights hereunder, the
      Committee may adjust, in an equitable manner, the number and kind of shares
      of
      Common Stock that may be issued under this Agreement, the Exercise Price
      applicable to this option, and the Fair Market Value of the Common Stock and
      other value determinations applicable to this option. Appropriate adjustments
      may also be made by the Committee in the terms of this option to reflect such
      changes or distributions and to modify any other terms of this option then
      outstanding, on an equitable basis, including modifications of performance
      targets and changes in the length of performance periods.

    
      
        
          
          

        

        
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    SECTION
      9. 
      MISCELLANEOUS PROVISIONS.

     

    (a) Rights
      as a Shareholder.
      Neither
      the Optionee nor the Optionee’s representative shall have any rights as a
      shareholder with respect to any shares of Common Stock subject to this option
      until the Optionee or the Optionee’s representative becomes entitled to receive
      such shares of Common Stock by (i) filing a notice of exercise, and (ii) paying
      the Purchase Price as provided in this Agreement.

     

    (b) Tenure.
      Nothing
      in the Notice, Agreement or Plan shall confer upon the Optionee any right to
      continue in Service for any period of specific duration or interfere with or
      otherwise restrict in any way the rights of the Company (or any Parent or
      Subsidiary employing or retaining the Optionee) or of the Optionee, which rights
      are hereby expressly reserved by each, to terminate his or her Service at any
      time and for any reason, with or without Cause.

     

    (c) Notification.
      Any
      notification required by the terms of this Agreement shall be given in writing
      and shall be deemed effective upon personal delivery or upon deposit with the
      United States Postal Service, by registered or certified mail, with postage
      and
      fees prepaid. A notice shall be addressed to the Company at its principal
      executive office and to the Optionee at the address that he or she most recently
      provided to the Company.

     

    (d) Entire
      Agreement.
      The
      Notice, this Agreement and the Plan (and, if applicable, any employment or
      severance agreement between the parties) constitute the entire contract between
      the parties hereto with regard to the subject matter hereof. They supersede
      any
      other agreements, representations or understandings (whether oral or written
      and
      whether express or implied) which relate to the subject matter
      hereof.

     

    (e) Waiver.
      No
      waiver of any breach or condition of this Agreement shall be deemed to be a
      waiver of any other or subsequent breach or condition whether of like or
      different nature.

     

    (f) Successors
      and Assigns.
      The
      provisions of this Agreement shall inure to the benefit of, and be binding
      upon,
      the Company and its successors and assigns and upon the Optionee, the Optionee’s
      assigns and the legal representatives, heirs and legatees of the Optionee’s
      estate, whether or not any such person shall have become a party to this
      Agreement and have agreed in writing to be join herein and be bound by the
      terms
      hereof.

     

    (g) Choice
      of Law.
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of Delaware as such laws are applied to contracts entered into and
      performed in such State. 

    
      
        
        

      

      
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    EXHIBIT
      A

    

    Sample
      Notice of Exercise

    

    

    Sun
      Healthcare Group, Inc.

    18831
      Von
      Karman

    Suite
      400

    Irvine,
      CA 92612-1537

    Attn:
      Corporate Secretary

    

    

    

    I
      hereby
      exercise my stock option granted under the Sun Healthcare Group, Inc. 2004
      Equity Incentive Plan (the “Plan”) and notify you of my desire to purchase the
      shares of Common Stock that have been offered pursuant to the Plan and related
      Option Agreement as described below.

    

    I
      shall
      pay for the shares of Common Stock by delivery of a check payable to Sun
      Healthcare Group, Inc. (the “Company”) in the amount described below in full
      payment for such shares of Common Stock plus all amounts required to be withheld
      by the Company under state, federal or local law as a result of such exercise
      or
      shall provide such documentation as is satisfactory to the Company demonstrating
      that I am exempt from any withholding requirement.

    

    This
      notice of exercise is delivered this ___ day of ___________________ (month)
      ____(year).

    

    
      	
              No.
                shares of Common
 Stock to be Acquired

            	
              Type
                of Option

            	
              Exercise
                Price

            	
              Total

            
	 	
              Nonqualified
                Stock
 Option

            	 	 
	
              Estimated
                Withholding

            	 	 	 
	 	 	
              Amount
                Paid

            	 

    

    

    
      	
              Very
                truly yours,

            
	 
	 
	
              ______________________

            
	
              Signature
                of Optionee

            
	 
	 
	
              Optionee’s
                Name and Mailing Address

            
	
              ______________________

            
	
              ______________________

            
	
              ______________________

            
	 
	
              Optionee’s
                Social Security Number

            
	 
	
              _____________________Exhibit 10.13

    EXHIBIT
      10.13

    

    Stock
      Unit Grant

    

    Sun
      Healthcare Group, Inc.

    2004
      Equity Incentive Plan

    

    Name
      of Grantee:                    [______]

    

    Number
      of Stock Units:       
        [______]

    

    Date
      of Grant:                          [______],
      2007

     

    Vesting:                                  
      The units shall become vested as follows if you are employed by Sun Healthcare
      Group, Inc. or its subsidiaries on the applicable vesting date: (i) 25% of
      the
      units shall vest on each of the following anniversaries of the Date of Grant:
      13
      months, 24 months, 36 months, and 48 months, subject in each case to the Terms;
      and (ii) the units shall become vested in full upon the date of a Change in
      Control (as defined in the Terms). 

     

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

    

    
      	
              “GRANTEE”

               

               

              _________________________________

              Signature

               

              _________________________________

              Address

              _________________________________

              City,
                State, Zip Code

            	
              SUN
                HEALTHCARE GROUP, INC.,

              a
                Delaware corporation

              __________________________________

              By:
                Richard K. Matros

              Its:
                Chief Executive Officer

            

    

    

    CONSENT
      OF SPOUSE

     

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

    

     

    __________________________________                                  ______________________

    Signature
      of
      Spouse                                                                 
                  Date

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Stock
      Unit Agreement

     

    Sun
      Healthcare Group, Inc. 

    2004
      Equity Incentive Plan

     

    1. Stock
      Units.
      As used
      herein, a “Stock
      Unit”
is
      a
      non-voting unit of measurement which is deemed for bookkeeping purposes to
      be
      equivalent in value to one outstanding share of Common Stock of the Corporation.
      The Stock Units shall be used solely as a device for the determination of any
      payment to eventually be made to the Grantee if and when such Stock Units vest
      pursuant to Section 2.

     

    The
      Stock
      Units create no fiduciary duty to the Grantee and shall create only a
      contractual obligation on the part of the Corporation to make payments, subject
      to vesting and the other terms and conditions hereof, as provided in Sections
      4
      and 6 below. The Stock Units shall not be treated as property or as a trust
      fund
      of any kind. No assets have been secured or set aside by the Corporation with
      respect to the Award and, if amounts become payable to the Grantee pursuant
      to
      this Award Agreement, the Grantee’s rights with respect to such amounts shall be
      no greater than the rights of any general unsecured creditor of the Corporation.
      

     

    2. Vesting.
      As set
      forth on the cover page of this Award Agreement, the Award shall vest in
      percentage installments, subject to earlier termination or acceleration and
      subject to adjustment as provided herein and in the Plan.

     

    3. Continuance
      of Employment.
      The
      vesting schedule requires continued employment or service through each
      applicable vesting date as a condition to the vesting of the applicable
      installment of the Award and the rights and benefits under this Award Agreement.
      Employment or service for only a portion of the vesting period, even if a
      substantial portion, will not entitle the Grantee to any proportionate vesting
      or avoid or mitigate a termination of rights and benefits upon or following
      a
      termination of employment or services as provided in Section 7 below or under
      the Plan.

     

    Nothing
      contained in this Award Agreement or the Plan constitutes an employment or
      service commitment by the Corporation or any Subsidiary, affects the Grantee’s
      status as an employee at will who is subject to termination without cause,
      confers upon the Grantee any right to remain employed by or in service to the
      Corporation or any Subsidiary, interferes in any way with the right of the
      Corporation or any Subsidiary at any time to terminate such employment or
      services, or affects the right of the Corporation or any Subsidiary to increase
      or decrease the Grantee’s other compensation or benefits. Nothing in this
      paragraph, however, is intended to adversely affect any independent contractual
      right of the Grantee under any written employment agreement with the
      Corporation.

     

    4. Dividend
      and Voting Rights.
      

     

    (a) Limitations
      on Rights Associated with Units.
      The
      Grantee shall have no rights as a stockholder of the Corporation, no dividend
      rights (except as expressly provided in Section 4(b) hereof with respect to
      Dividend Equivalents) and no voting rights with respect to the Stock Units
      or
      any shares of Common Stock issuable in respect of such Stock Units, until shares
      of Common Stock are actually issued to and held of record by the Grantee. No
      adjustments will be

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    made
      for
      dividends or other rights of a holder for which the record date is prior to
      the
      date of issuance of the stock certificate evidencing the shares.

     

    (b) Dividend
      Equivalent Distributions.
      No later
      than sixty (60) days following each date that the Corporation pays an ordinary
      cash dividend on its outstanding Common Stock (if any ordinary cash dividends
      are paid), for which the related record date occurs after the Award Date and
      prior to the fourth anniversary of the Award Date, the Corporation shall make
      a
      cash payment to the Participant (or, in the Committee’s discretion, shall credit
      the Participant with additional Stock Units) equal to, subject to the tax
      withholding provisions of Section 9 hereof and Section 17 of the Plan, the
      amount of the ordinary cash dividend paid by the Corporation on a single share
      of Common Stock multiplied by the number of Stock Units subject to this Award
      Agreement outstanding and unpaid as of such record date (“Dividend
      Equivalents”).

     

    5. Restrictions
      on Transfer.
      Prior
      to the time the Stock Units are vested and paid, neither the Stock Units
      comprising the Award nor any interest therein or amount payable in respect
      thereof may be sold, assigned, transferred, pledged or otherwise disposed of,
      alienated or encumbered, either voluntarily or involuntarily, other than by
      will
      or the laws of descent and distribution.

     

    6. Timing
      and Manner of Payment of Stock Units.
      Stock
      Units subject to this Award Agreement shall be paid in an equivalent number
      of
      shares of Common Stock promptly after the vesting of such Stock Units in
      accordance with the terms hereof; provided, however, that the Committee may
      provide for all or a portion of such vested Stock Units to be paid in cash.
      Such
      payment shall be subject to the tax withholding provisions of Section 9 hereof
      and Section 17 of the Plan and subject to adjustment as provided in Section
      12
      of the Plan and shall be in complete satisfaction of such vested Stock Units.
      The Grantee or any other person entitled under the Plan to receive a payment
      of
      shares of Common Stock shall deliver to the Corporation any representations
      or
      other documents or assurances required pursuant to Section 18 of the
      Plan.

     

    Notwithstanding
      the foregoing paragraph, the Grantee may elect, prior to the year in which
      a
      Stock Unit may vest and in accordance with rules prescribed the Committee,
      not
      to receive payment upon the vesting of such Stock Unit and instead have the
      Corporation continue to maintain such Stock Unit on its books of account.
      Subject to approval by the Committee, the value of any such deferred Stock
      Unit
      shall be payable as elected by the Grantee at the time of the
      deferral.

     

    7. Effect
      of Termination of Employment or Services.
      The
      Grantee’s Stock Units shall be forfeited to the extent such units have not
      become vested upon the first date the Grantee is no longer employed by or
      providing services to the Corporation or one of its Subsidiaries, regardless
      of
      the reason for the termination of such employment or services, whether with
      or
      without cause, voluntarily or involuntarily. If the Grantee is employed by
      a
      Subsidiary and that entity ceases to be a Subsidiary, such event shall be deemed
      to be a termination of employment of the Grantee for purposes of this Award
      Agreement, unless the Grantee otherwise continues to be employed by the
      Corporation or another of its Subsidiaries following such event. If the Grantee
      is not an employee or director of the Corporation or a Subsidiary, the Committee
      shall be the sole judge for purposes of this Award Agreement whether the Grantee
      continues to render services to the Corporation or a Subsidiary and the date,
      if
      any, upon which such services shall be deemed to have terminated.

     

    8. Adjustments
      Upon Specified Events.
      Upon
      the occurrence of certain events relating to the Corporation’s stock
      contemplated by Section 12 of the Plan, the Committee will

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    make
      adjustments if appropriate in the number of Stock Units contemplated hereby
      and
      the number and kind of securities that may be issued in respect of the
      Award.

     

    9. Tax
      Withholding.
      The
      Corporation shall reasonably determine the amount of any federal, state, local
      or other income, employment, or other taxes which the Corporation or any of
      its
      affiliates may reasonably be obligated to withhold with respect to the grant,
      vesting, or other event with respect to the Stock Units. The Corporation may,
      in
      its sole discretion, withhold a sufficient number of shares of Common Stock
      in
      connection with the vesting of the Stock Units at the then Fair Market Value
      of
      the Common Stock (determined either as of the date of such withholding or as
      of
      the immediately preceding trading day, as determined by the Corporation in
      its
      discretion) to satisfy the amount of any such withholding obligations that
      arise
      with respect to the vesting of such Stock Units. The Corporation may take such
      action(s) without notice to the Grantee and shall remit to the Grantee the
      balance of any proceeds from withholding such shares in excess of the amount
      reasonably determined to be necessary to satisfy such withholding obligations.
      The Grantee shall have no discretion as to the satisfaction of tax withholding
      obligations in such manner. If, however, any withholding event occurs with
      respect to the Stock Units other than the vesting of such units, or if the
      Corporation for any reason does not satisfy the withholding obligations with
      respect to the vesting of the Stock Units as provided above in this Section
      9,
      the Corporation shall be entitled to require a cash payment by or on behalf
      of
      the Grantee and/or to deduct from other compensation payable to the Grantee
      the
      amount of any such withholding obligations.

     

    10. Notices.
      Any
      notice to be given under the terms of this Award Agreement shall be in writing
      and addressed to the Corporation at its principal office to the attention of
      the
      Secretary, and to the Grantee at the Grantee’s last address reflected on the
      Corporation’s records, or at such other address as either party may hereafter
      designate in writing to the other. Any such notice shall be given only when
      received, but if the Grantee is no longer an employee of the Corporation or
      one
      of its Subsidiaries, shall be deemed to have been duly given by the Corporation
      when enclosed in a properly sealed envelope addressed as aforesaid, registered
      or certified, and deposited (postage and registry or certification fee prepaid)
      in a post office or branch post office regularly maintained by the United States
      Government.

     

    11. Plan.
      The
      Award and all rights of the Grantee under this Award Agreement are subject
      to,
      and the Grantee agrees to be bound by, all of the terms and conditions of the
      provisions of the Plan, incorporated herein by this reference. In the event
      of a
      conflict or inconsistency between the terms and conditions of this Award
      Agreement and of the Plan, the terms and conditions of the Plan shall govern.
      The Grantee agrees to be bound by the terms of the Plan and of this Award
      Agreement. The Grantee acknowledges reading and understanding the Plan, the
      Prospectus for the Plan, and this Award Agreement. Unless otherwise expressly
      provided in other sections of this Award Agreement, provisions of the Plan
      that
      confer discretionary authority on the Corporation’s Board of Directors (the
“Board”)
      or the
      Committee do not (and shall not be deemed to) create any rights in the Grantee
      unless such rights are expressly set forth herein or are otherwise in the sole
      discretion of the Board or the Committee so conferred by appropriate action
      of
      the Board or the Committee under the Plan after
      the date
      hereof.

     

    12. Entire
      Agreement.
      This
      Award Agreement and the Plan together constitute the entire agreement and
      supersede all prior understandings and agreements, written or oral, of the
      parties hereto with respect to the subject matter hereof. The Plan and this
      Award Agreement may be amended pursuant to Section 22 of the Plan. Such
      amendment must be in writing and signed by the Corporation. The Corporation
      may,
      however, unilaterally waive any provision hereof in

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    writing
      to the extent such waiver does not adversely affect the interests of the Grantee
      hereunder, but no such waiver shall operate as or be construed to be a
      subsequent waiver of the same provision or a waiver of any other provision
      hereof.

     

    13. Counterparts.
      This
      Award Agreement may be executed simultaneously in any number of counterparts,
      each of which shall be deemed an original but all of which together shall
      constitute one and the same instrument. 

     

    14. Section
      Headings.
      The
      section headings of this Award Agreement are for convenience of reference only
      and shall not be deemed to alter or affect any provision hereof.

     

    15. Governing
      Law.
      This
      Award Agreement and the rights of the parties hereunder with respect to the
      Award shall be governed by and construed and enforced in accordance with the
      laws of the State of Delaware without regard to conflict of law principles
      thereunder.

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