ODYSSEY HEALTH CARE, INC. RESTRICTED STOCK UNIT AWARD AGREEMENT TIME-BASED RSU AWARD
Exhibit 10.1
ODYSSEY HEALTH CARE, INC.
2001 EQUITY-BASED COMPENSATION PLAN
TIME-BASED RSU AWARD
To: _________________ Date of Grant: _________________ Number of Shares: _____
Odyssey Health Care, Inc., a Delaware corporation (the “Company”), is pleased to grant
you an award (the “Award”) to receive ___ Restricted Stock Units (the
“Restricted Stock Units”) whereby each Restricted Stock Unit represents the right to
receive one share of common stock, par value $0.001, of the Company (the “Stock”), plus an
additional amount pursuant to Section 2, subject to certain restrictions and on the terms and
conditions contained in this Restricted Stock Unit Award Agreement (the “Agreement”) and
the Odyssey Health Care, Inc. 2001 Equity-Based Compensation Plan, as amended (the “Plan”).
A copy of the Plan is available upon request. Except as provided below, to the extent that any
provision of this Agreement conflicts with the expressly applicable terms of the Plan, you
acknowledge and agree that those terms of the Plan shall control and, if necessary, the applicable
provisions of this Agreement shall be deemed amended so as to carry out the purpose and intent of
the Plan. Terms that have their initial letters capitalized, but that are not otherwise defined in
this Agreement, shall have the meanings given to them in the Plan in effect as of the date of this
Agreement. The Restricted Stock Units contemplated herein are referred to as Phantom Stock awards
in the Plan. For purposes of this Agreement and the Plan the terms Restricted Stock Units and
Phantom Stock awards are synonymous.
This Agreement sets forth the terms of the agreement between you and the Company with respect
to the Restricted Stock Units. By accepting this Agreement, you agree to be bound by all of the
terms hereof.
1. No Shareholder Rights. The Restricted Stock Units granted pursuant to this
Agreement do not and shall not entitle you to any rights of a shareholder of Stock prior to the
date shares of Stock are issued to you in settlement of the Award. Your rights with respect to
Restricted Stock Units shall remain forfeitable at all times prior to the date on which rights
become vested and the restrictions with respect to the Restricted Stock Units lapse in accordance
with Sections 4, 5 or 6.
2. Dividend Equivalents. As long as you hold the Restricted Stock Units granted
pursuant to this Agreement, the Company shall pay to you on December 31 of each year a cash payment
equal to the cash dividends you would have received if you were the beneficial owner, as of the
dividend declaration date, of the number of shares of Stock related to the portion of your
Restricted Stock Units that have not been settled.
3. Conversion of Restricted Stock Units; Issuance of Stock; Payment of Stock. No
shares of Stock shall be issued to you prior to the date on which the Restricted Stock Units vest
and the restrictions with respect to the Restricted Stock Units lapse, in accordance with Sections
4, 5 or 6. Neither this Section 3 nor any action taken pursuant to or in accordance with this
Section 3 shall be construed to create a trust of any kind. After any Restricted Stock Units vest
pursuant to Sections 4, 5 or 6 the Company shall promptly cause to be issued Stock in book entry
form registered in your name in payment of such vested Restricted Stock Units. The value of any
fractional Restricted Stock Units shall be paid in cash at the time Stock certificates are
delivered to you in connection with the Restricted Stock Units. The value of the fractional
Restricted Stock Units shall equal the percentage of a Restricted Stock Unit represented by a
fractional Restricted Stock Unit multiplied by the Fair Market Value of the Stock. Upon the
applicable payment date, the Company shall cause to be issued and delivered to you or your designee
a certificate representing the number of shares of Stock as to which forfeiture restrictions have
lapsed, free of any restrictive legend relating to the lapsed restrictions, upon receipt by the
Company of any tax withholding as may be requested. The value of such shares of Stock shall not
bear any interest owing to the passage of time.
The payment date or dates of the Stock related to your Restricted Stock Units will be the date or
dates on which the restrictions on such Stock expire as provided in Section 4, 5, or 6 of this
Agreement; provided, however, that the payment of any amount under this Agreement that would be
nondeductible by the Company under section 162(m) of the Code if paid in accordance with this
Section 3 will be automatically deferred to the earliest date on which payment will not result in a
lost deduction.
4. Expiration of Restrictions and Risk of Forfeiture. The Restricted Stock Units
granted pursuant to this Agreement will vest pursuant to the following schedule, provided you have
been an employee of the Company or of a Subsidiary of the Company continuously from the Date of
Grant through the applicable vesting date:
(a) Twenty-five percent (25%) of your Restricted Stock Units will vest on ;
(b) Twenty-five percent (25%) of your Restricted Stock Units will vest on ;
(c) Twenty-five percent (25%) of your Restricted Stock Units will vest on ;
and
(d) The remaining twenty-five percent (25%) of your Restricted Stock Units will vest on
.
5. Change in Control of the Company. In the event of any Change in Control occurring
after the Date of Grant, the restriction period associated with the Restricted Stock Units granted
pursuant to this Agreement shall be immediately accelerated and the forfeiture restrictions shall
expire; provided, however, that the Board or Committee may only effectuate a payment in
satisfaction of the Award if the Change in Control constitutes a change in control for purposes of
Section 409A of the Code or any applicable guidance issued pursuant thereto.
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6. Termination of Employment.
(a) Termination Other Than Due to Death or Disability. If your employment
relationship with the Company or any of its Subsidiaries is terminated for any reason other than
due to your death or Disability, then that portion, if any, of this Award for which forfeiture
restrictions have not lapsed as of the date of termination shall become null and void; provided,
however, that the portion, if any, of this Award for which forfeiture restrictions have expired as
of the date of such termination shall survive such termination.
(b) Death. Upon your death, the restriction period of the Restricted Stock Units
awarded under this Agreement shall immediately be accelerated and the forfeiture restrictions shall
expire.
(c) Disability. If your service relationship with the Company is terminated by reason
of your Disability, the restriction period of the Restricted Stock Units awarded under this
Agreement shall immediately be accelerated and the forfeiture restrictions shall expire.
(d) Effect of Employment Agreement. Notwithstanding any provision herein to the
contrary, in the event of any inconsistency between this Section 6 and any employment agreement
entered into by and between you and the Company, the terms of the employment agreement shall
control.
7. Leave of Absence. With respect to the Award, the Board or Committee may, in its
sole discretion, determine that if you are on leave of absence for any reason you will be
considered to still be in the employ of the Company.
8. Adjustment Provisions. In the event there is any change in the Stock by reason of
any reorganization, recapitalization, stock split, stock dividend, combination of shares or
otherwise, there shall be substituted for or added to each share of Stock theretofore appropriated
or thereafter subject, or which may become subject, to this Award, the number and kind of shares of
stock or other securities into which each outstanding share of Stock shall be so changed or for
which each such share shall be exchanged, or to which each such share shall be entitled, as the
case may be. Adjustment under the preceding provisions of this section will be made by the Board
or Committee, whose determination as to what adjustments will be made and the extent thereof will
be final, binding, and conclusive. No fractional interest will be issued under the Plan on account
of any such adjustment.
9. Restriction on Transfer. The Restricted Stock Units and any rights under this
Agreement may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of by
you other than by will or by the laws of descent and distribution, and any purported sale,
assignment, transfer, pledge, hypothecation, or other disposition shall be void and unenforceable
against the Company. Notwithstanding the foregoing, you may in the manner established by the
Committee, designate a beneficiary or beneficiaries to exercise your rights to receive any property
distributable with respect to the Restricted Stock Units upon your death.
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10. Conditions to Delivery of Stock and Registration. Nothing herein shall require
the Company to issue any shares with respect to the Award if (a) that issuance would, in the
opinion of counsel for the Company, constitute a violation of the Securities Act of 1933 or any
similar or superseding statute or statutes, any other applicable statute or regulation, or the
rules of any applicable securities exchange or securities association, as then in effect or (b) the
withholding obligation as provided in Section 17 has not been satisfied.
From time to time, the Board and appropriate officers of the Company shall and are authorized
to take whatever actions are necessary to file required documents with governmental authorities,
stock exchanges, and other appropriate Persons to make shares of Common Stock available for
issuance.
11. Furnish Information. You agree to furnish to the Company all information
requested by the Company to enable it to comply with any reporting or other requirements imposed
upon the Company by or under any applicable statute or regulation.
12. Remedies. The parties to this Agreement shall be entitled to recover from each
other reasonable attorneys’ fees incurred in connection with the enforcement of the terms and
provisions of this Agreement whether by an action to enforce specific performance or for damages
for its breach or otherwise.
13. Arbitration. All claims, demands, causes of action, disputes, controversies or
other matters in question (“Claims”), whether or not arising out of this Agreement or your service
(or termination from service) with the Company, whether arising in contract, tort or otherwise and
whether provided by statute, equity or common law, that the Company may have against you or that
you may have against the Company or its parents, Subsidiaries or Affiliates, or against each of the
foregoing entities’ respective officers, directors, employees or agents in their capacity as such
or otherwise, shall be submitted to binding arbitration, if such Claim is not resolved by mutual
written agreement between you and the Company, or otherwise, within 30 days after notice of the
dispute is first given. Claims covered by this Section 14 include, without limitation, claims by
you for breach of this Agreement, wrongful termination, discrimination (based on age, race, sex,
disability, national origin, sexual orientation, or any other factor), harassment and retaliation.
Any arbitration shall be conducted in accordance with the Federal Arbitration Act (“FAA”) and, to
the extent an issue is not addressed by the FAA, with the then-current National Rules for the
Resolution of Employment Disputes of the American Arbitration Association (“AAA”) or such other
rules of the AAA as are applicable to the claims asserted. If a party refuses to honor its
obligations under this Section 14, the other party may compel arbitration in either federal or
state court. The arbitrator shall apply the substantive law of Texas (excluding choice-of-law
principles that might call for the application of some other jurisdiction’s law) or federal law, or
both as applicable to the claims asserted. The arbitrator shall have exclusive authority to
resolve any dispute relating to the interpretation, applicability, enforceability or formation of
this Agreement (including this Section 14), including any claim that all or part of the Agreement
is void or voidable and any claim that an issue is not subject to arbitration. The results of
arbitration will be binding and conclusive on the parties hereto. Any arbitrator’s award or
finding or any judgment or verdict thereon will be final and unappealable. All parties agree that
venue for arbitration will be in Dallas, Texas, and that any arbitration commenced in any other
venue will be transferred to Dallas, Texas upon the written request of
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any party to this Agreement. In the event that an arbitration is actually conducted pursuant
to this Section 14, the party in whose favor the arbitrator renders the award shall be entitled to
have and recover from the other party all costs and expenses incurred, including reasonable
attorneys’ fees, reasonable costs and other reasonable expenses pertaining to the arbitration and
the enforcement thereof and such attorneys fees, costs and other expenses shall become a part of
any award, judgment or verdict. Any and all of the arbitrator’s orders, decisions and awards may
be enforceable in, and judgment upon any award rendered by the arbitrator may be confirmed and
entered by any federal or state court having jurisdiction. All privileges under state and federal
law, including attorney-client, work product and party communication privileges, shall be preserved
and protected. The decision of the arbitrator will be binding on all parties. Arbitrations will
be conducted in such a manner that the final decision of the arbitrator will be made and provided
to you and the Company no later than 120 days after a matter is submitted to arbitration. All
proceedings conducted pursuant to this agreement to arbitrate, including any order, decision or
award of the arbitrators, shall be kept confidential by all parties. YOU ACKNOWLEDGE THAT, BY
SIGNING THIS AGREEMENT, YOU ARE WAIVING ANY RIGHT THAT YOU MAY HAVE TO A JURY TRIAL OR A COURT
TRIAL OF ANY SERVICE RELATED CLAIM ALLEGED BY YOU.
14. Information Confidential. As partial consideration for the granting of the Award
hereunder, you hereby agree with the Company that you will keep confidential all information and
knowledge, except that which has been disclosed in any public filings required by law, that you
have relating to the terms and conditions of this Agreement; provided, however, that such
information may be disclosed as required by law and may be given in confidence to your spouse, tax
and financial advisors, or to a financial institution to the extent that such information is
necessary to secure a loan. In the event any breach of this promise comes to the attention of the
Company, it shall take into consideration that breach in determining whether to recommend the grant
of any future similar award to you, as a factor militating against the advisability of granting any
such future award to you.
15. Consideration. No restriction on the Restricted Stock Units shall lapse unless
and until you have performed services for the Company or any of its Subsidiaries that the Company
believes is equal to or greater in value than the par value of the Stock subject to the Award.
16. Payment of Taxes. The Company may from time to time, in its discretion, require
you to pay to the Company (or the Company’s Subsidiary if you are an employee of a Subsidiary of
the Company), the amount that the Company deems necessary to satisfy the Company’s or its
Subsidiary’s current or future obligation to withhold federal, state or local income or other taxes
that you incur as a result of the Award. With respect to any required tax withholding, you may (a)
direct the Company to withhold from the shares of Stock to be issued to you the number of shares
necessary to satisfy the Company’s obligation to withhold taxes, that determination to be based on
the shares’ Fair Market Value, as defined in the Plan, at the time as of which such determination
is made; (b) deliver to the Company sufficient shares of Stock to satisfy the Company’s tax
withholding obligations, based on the shares’ Fair Market Value, as defined in the Plan, at the
time as of which such determination is made; or (c) deliver sufficient cash to the Company to
satisfy its tax withholding obligations. If you elect to use a Stock withholding feature, you must
make the election at the time and in the manner that the Company
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prescribes. The Company may, at its sole option, deny your request to satisfy withholding
obligations through Stock instead of cash. In the event the Company subsequently determines that
the aggregate Fair Market Value, as defined in the Plan, of any shares of Stock withheld as payment
of any tax withholding obligation is insufficient to discharge that tax withholding obligation,
then you shall pay to the Company, immediately upon the Company’s request, the amount of that
deficiency.
17. Right of the Company and Subsidiaries to Terminate Employment. Nothing contained
in this Agreement shall confer upon you the right to continue in the employ of the Company or any
Subsidiary of the Company, or interfere in any way with the rights of the Company or any Subsidiary
of the Company to terminate your employment at any time.
18. No Liability for Good Faith Determinations. Neither the Company nor the members
of the Board and the Committee shall be liable for any act, omission or determination taken or made
in good faith with respect to this Agreement or the Restricted Stock Units granted hereunder.
19. No Guarantee of Interests. The Board and the Company do not guarantee the Stock
of the Company from loss or depreciation.
20. Company Records. Records of the Company or its Subsidiaries regarding your period
of employment, termination of employment and the reason therefor, leaves of absence, re-employment,
and other matters shall be conclusive for all purposes hereunder, unless determined by the Company
to be incorrect.
21. Company Action. Any action required of the Company shall be by resolution of its
Board or Committee or by a person authorized to act by resolution of the Board or Committee.
22. Severability. If any provision of this Agreement is held to be illegal or invalid
for any reason, the illegality or invalidity shall not affect the remaining provisions hereof, but
such provision shall be fully severable and this Agreement shall be construed and enforced as if
the illegal or invalid provision had never been included herein.
23. Notices. Whenever any notice is required or permitted hereunder, such notice must
be in writing and personally delivered or sent by mail. Any such notice required or permitted to
be delivered hereunder shall be deemed to be delivered on the date on which it is personally
delivered, or, whether actually received or not, on the third Business Day after it is deposited in
the United States mail, certified or registered, postage prepaid, addressed to the person who is to
receive it at the address which such person has theretofore specified by written notice delivered
in accordance herewith. The Company or you may change, at any time and from time to time, by
written notice to the other, the address which it or he had previously specified for receiving
notices.
The Company and you agree that any notices shall be given to the Company or to you at the
following addresses:
Company: Odyssey Health Care, Inc.
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▇▇▇ ▇. ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: General Counsel
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: General Counsel
Holder: At your current address as shown in the Company’s records.
24. Waiver of Notice. Any person entitled to notice hereunder may waive such notice
in writing.
25. Successors. This Agreement shall be binding upon you, your legal representatives,
heirs, legatees and distributees, and upon the Company, its successors and assigns.
26. Headings. The titles and headings of Sections are included for convenience of
reference only and are not to be considered in construction of the provisions hereof.
27. Governing Law. All questions arising with respect to the provisions of this
Agreement shall be determined by application of the laws of the State of Texas except to the extent
Texas law is preempted by federal law. The obligation of the Company to sell and deliver Stock
hereunder is subject to applicable laws and to the approval of any governmental authority required
in connection with the authorization, issuance, sale, or delivery of such Stock.
28. Execution of Receipts and Releases. Any payment of cash or any issuance or
transfer of shares of Stock or other property to you, or to your legal representative, heir,
legatee or distributee, in accordance with the provisions hereof, shall, to the extent thereof, be
in full satisfaction of all claims of such Persons hereunder. The Company may require you or your
legal representative, heir, legatee or distributee, as a condition precedent to such payment or
issuance, to execute a release and receipt therefor in such form as it shall determine.
29. Amendment. This Agreement may be amended at any time unilaterally by the Company
provided that such amendment is consistent with all applicable laws, including Section 409A of the
Code, and does not reduce any rights or benefits you have accrued pursuant to this Agreement. This
Agreement may be amended in any manner consistent with all applicable laws, including Section 409A
of the Code, by a written consent executed by you and a duly authorized representative of the
Company.
30. The Plan. This Agreement is subject to all the terms, conditions, limitations and
restrictions contained in the Plan.
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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer to be effective as of the Date of Grant first above written.
| ODYSSEY HEALTH CARE, INC. | ||||||
| By: | ||||||
| Name: | ||||||
| Title: | ||||||
| ACKNOWLEDGED AND AGREED: | ||||
By: |
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Name: |
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