KINETIC CONCEPTS, INC. INTERNATIONAL RESTRICTED STOCK UNIT AWARD AGREEMENT
Exhibit
10.37
Award
Number:
Grantee
Name:
KINETIC
CONCEPTS, INC.
2004
EQUITY PLAN
INTERNATIONAL
RESTRICTED STOCK UNIT AWARD AGREEMENT
THIS
RESTRICTED STOCK UNIT AWARD AGREEMENT (the “Award Agreement”) is made and
entered into as of _______________, 200__ (the “Date of Grant”), by and between
Kinetic Concepts, Inc., a Texas corporation (the “Company”), and
[_________________________] (the “Grantee”). Capitalized terms not
defined herein shall have the meaning ascribed to them in the Company’s 2004
Equity Plan (the “Plan”). Where the context permits, references to
the Company or any of its Subsidiaries or affiliates shall include the
successors to the foregoing.
Pursuant
to the Plan, the Administrator has determined that the Grantee is to be granted
Restricted Stock Units, subject to the terms and conditions set forth in
the
Plan and herein, and hereby grants such Restricted Stock Units. Each
Restricted Stock Unit represents a hypothetical Common Share and will, at
all
times as the Award Agreement is in effect, be equal in value to one Common
Share.
1. Grant
of Restricted Stock
Units. The Company hereby grants to the Grantee [_______]
Restricted Stock Units (the "Award") on the terms and conditions set forth
in
the Award Agreement and as otherwise provided in the Plan.
2. Terms
and Conditions of
Award. The Award shall be subject to the following terms,
conditions and restrictions:
(a)
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Vesting. The
Restricted Stock Units shall vest at such time or times, and/or
upon the
occurrence of such events as are set forth in Appendix
A
hereto.
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(b)
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Nontransferability. Restricted
Stock Units and any interest therein, may not be sold, transferred,
pledged, hypothecated, assigned or otherwise encumbered or disposed
of,
except by will or the laws of descent and distribution, to the
extent
applicable. Any attempt to dispose of any Restricted Stock
Units in contravention of any such restrictions shall be null and
void and
without effect.
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(c)
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Rights
as a
Shareholder. Restricted Stock Units represent only
hypothetical shares; therefore, the Grantee is not entitled to
any of the
rights or benefits generally accorded to stockholders with respect
thereto, except upon vesting, to the extent provided in Paragraph
2(d).
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(d)
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Benefit
Upon
Vesting. Upon the vesting of a Restricted Stock Unit,
the Grantee shall be entitled to receive, within 30 days of the
date on
which such Restricted Stock Unit vests, an amount in cash, Shares
or a
combination of the foregoing, as determined by the Administrator
in its
sole discretion equal, per Restricted Stock Unit, to the sum of
(1) the
Fair Market Value of a Share on the date on which such Restricted
Stock
Unit vests and (2) the aggregate amount of cash dividends paid
with
respect to a Share during the period commencing on the Date of
Grant and
terminating on the date on which such unit vests.
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(e)
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Effect
of Conduct Constituting Cause; Termination of Employment or Service;
or
Change in Control.
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(i)
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If
at any time (whether before or after termination of employment
or service)
the Administrator determines that the Grantee has engaged in conduct
that
would constitute Cause for termination, consistent with local law
and
regulations, the Administrator may provide for the immediate forfeiture
of
the Award (including any securities, cash or other property issued
upon
settlement of the Award), whether or not the Restricted Stock Units
have
vested, consistent with local law and regulations. Any such determination
by the Administrator shall be final, conclusive and binding on
all
persons.
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(ii)
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If
the Grantee’s active employment with or service to the Company and any
Subsidiary or affiliate terminates for any reason, other than by
reason of
the Grantee’s death or Disability, then the Grantee shall immediately
forfeit any rights to the Restricted Stock Units that have not
vested as
of the date of termination, if any, the Grantee shall have no further
rights thereto and such Restricted Stock Units shall immediately
terminate; provided that if a Subsidiary or affiliate ceases to
be a
Subsidiary or affiliate of the Company, then, as of such date of
cessation, the Grantee's employment with or service to the Subsidiary
or
affiliate shall be deemed to have terminated; and further provided
that if
Grantee transfers from the Company to its Subsidiary or affiliate
or from
one of the Company’s Subsidiaries or affiliates to another, such transfer
shall not constitute a termination of employment for purposes of
the
vesting of the Award, unless otherwise determined by the Administrator.
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(iii)
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If
the Grantee’s employment with or service to the Company, any Subsidiary or
affiliate thereof terminates by reason of Grantee’s death or Disability
during the Restricted Period, with respect to Restricted Stock
Units that
vest based on the passage of time, all outstanding unvested Restricted
Stock Units shall immediately vest and, with respect to Restricted
Stock
Units that vest based on the attainment of specified performance
conditions, all outstanding unvested Restricted Stock Units shall
immediately vest as if the target performance goals were met.
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(iv)
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Upon
the occurrence of a Change in Control, all unvested Restricted
Stock Units
shall immediately vest, unless the Award is either assumed or an
equitable
substitution is made therefor. In addition, if the Grantee’s employment
with or service to the Company and any Subsidiary thereof is terminated
other than for Cause within 24 months following a Change in Control,
all
outstanding unvested Restricted Stock Units shall immediately vest.
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(f)
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Taxes
In Connection With the
Grant or Vesting of the Award.
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(i)
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Pursuant
to Section 14 of the Plan, the Company (or Subsidiary or affiliate,
as the
case may be) has the right to require the Grantee to remit to the
Company
(or Subsidiary or affiliate, as the case may be) in cash an amount
sufficient to satisfy Grantee’s income tax, social insurance, payroll tax,
payment on account or other tax-related withholding (“Tax-Related Items”)
related to the Award. Regardless of any action the Company (or
Subsidiary or affiliate) takes with respect to any or all Tax-Related
Items, the Grantee has the ultimate liability for all Tax-Related
Items
legally due by the Grantee and remains responsible for payment
of
same. The Company or Subsidiary (or affiliate): (1) makes no
representations or undertakings regarding the treatment of any
Tax-Related
Items in connection with any aspect of the Award, including the
grant and
vesting of the Restricted Stock Unit, and the subsequent sale of
Shares
acquired pursuant to the Award and the receipt of any dividends
or
dividend equivalents; and (2) does not commit to structure the
terms of
the grant or any aspect of the Award to reduce or eliminate the
Grantee’s
liability for Tax-Related Items.
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(ii)
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In
the event that the Company or Subsidiary (or affiliate) is required
to
withhold any Tax-Related Item as a result of the grant or vesting
of the
Restricted Stock Units, or subsequent sale of Shares or receipt
of
dividends or dividend equivalents, the Grantee shall pay or make
adequate
arrangements satisfactory to the Company and/or the Subsidiary
(or
affiliate) to satisfy all withholding and payment on account obligations
of the Company and/or the Subsidiary (or affiliate). With the approval
of
the Administrator and if permissible under local law, the Grantee
may
elect to have the Company withhold from delivery Shares or deliver
Shares,
in each case, having a value equal to the aggregate required minimum
Tax-Related Items withholding to be collected by the Company or
any
Subsidiary or affiliate thereof. Such Shares shall be valued at
their Fair
Market Value on the date on which the amount of tax to be withheld
is
determined. The Grantee agrees to allow the Company and/or the
Subsidiary
(or affiliate) to withhold all applicable Tax-Related Items legally
payable by the Grantee from the Grantee’s wages or other cash compensation
paid to the Grantee by the Company and/or the Subsidiary (or affiliate)
or
from the proceeds of the sale of the Shares. Alternatively, or
in addition, with the approval of the Administrator and if permissible
under local law, to the extent that Grantee is not able to otherwise
pay
the Tax-Related Items withholding, the Grantee agrees that, the
Company
may sell or arrange for the sale of Shares that the Grantee acquires
to
meet the withholding obligation for Tax-Related Items; and/or withhold
Shares, provided that the Company withholds only the amount of
Shares
necessary to satisfy the minimum withholding amount. Finally,
the Grantee shall pay to the Company or the Subsidiary (or affiliate)
any
amount of Tax-Related Items that the Company or the Subsidiary
(or
affiliate) may be required to withhold as a result of the Grantee’s
participation in the Plan or the Grantee’s Award that cannot be satisfied
by the means previously described. The Company may refuse to
deliver the Shares if the Grantee fails to comply with the Grantee’s
obligations in connection with the Tax-Related Items as described
in this
paragraph.
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3. Adjustments. The
Award and all rights and obligations under the Award Agreement are subject
to
Section 5 of the Plan.
4. Notice. Whenever
any notice is required or permitted hereunder, such notice shall be in writing
and shall be given by personal delivery, facsimile, first class mail, certified
or registered with return receipt requested. Any notice required or
permitted to be delivered hereunder shall be deemed to have been duly given
on
the date that it is personally delivered or, whether actually received or
not,
on the fifth business day after depositing in the post or 24 hours after
transmission by facsimile to the respective parties named below.
If
to the Company:
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Kinetic
Concepts, Inc.
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Attn.:
Chief Financial Officer
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0000
Xxxxxxx Xxxxx
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Xxx
Xxxxxxx, XX 00000
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U.S.A.
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Phone:
0-(000) 000-0000
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Fax:
0-(000) 000-0000
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If
to the
Grantee: [Name
of Grantee]
[Address]
______________________
Facsimile: _____________
Either
party may change such party’s address for notices by duly giving notice pursuant
hereto.
5. Compliance
with
Laws.
(a)
Shares
(to the extent payable hereunder) shall not be issued pursuant to the Award
granted hereunder unless the issuance and delivery of such Shares pursuant
thereto shall comply with all relevant provisions of law, including, without
limitation, the U.S. Securities Act of 1933, as amended, the U.S. Exchange
Act
and the requirements of any stock exchange upon which the Shares may then
be
listed, and any applicable local laws, and shall be further subject to the
approval of counsel for the Company with respect to such compliance. The
Company
shall be under no obligation to effect the registration pursuant to the U.S.
Securities Act of 1933, as amended, of any interests in the Plan or any Shares
to be issued hereunder or to effect similar compliance under any state laws.
(b)
All
certificates for Shares delivered under the Plan (to the extent applicable)
shall be subject to such stock-transfer orders and other restrictions as
the
Administrator may deem advisable under the rules, regulations, and other
requirements of the U.S. Securities and Exchange Commission, any stock exchange
upon which the Shares may then be listed, and any applicable federal, state
or
local securities law, and the Administrator may cause a legend or legends
to be
placed on any such certificates to make appropriate reference to such
restrictions. The Administrator may require, as a condition of the issuance
and
delivery of certificates evidencing Shares pursuant to the terms hereof,
that
the recipient of such Shares make such agreements and representations as
the
Administrator, in its sole discretion, deems necessary or desirable.
6. Protections
Against
Violations of Agreement. No purported sale, assignment,
mortgage, hypothecation, transfer, pledge, encumbrance, gift, transfer in
trust
(voting or other) or other disposition of, or creation of a security interest
in
or lien on, any of the Shares underlying the Award by any holder thereof
in
violation of the provisions of the Award Agreement, the Plan or the Articles
of
Incorporation or the Bylaws of the Company, will be valid, and the Company
will
not transfer any such Shares on its books nor will any such Shares be entitled
to vote, nor will any dividends be paid thereon, unless and until there has
been
full compliance with such provisions to the satisfaction of the
Company. The foregoing restrictions are in addition to and not in
lieu of any other remedies, legal or equitable, available to enforce said
provisions.
7. Nature
of
Award.
(a)
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The
Plan is established voluntarily by the Company, it is discretionary
in
nature and it may be modified, amended, suspended or terminated
by the
Company at any time, unless otherwise provided in the Plan and
this Award
Agreement;
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(b)
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The
grant of the Award is voluntary and occasional and does not create
any
contractual or other right to receive future grants of Restricted
Stock
Units, or benefits in lieu of Restricted Stock Units, even if Restricted
Stock Units have been granted repeatedly in the past;
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(c)
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All
decisions with respect to future grants of Restricted Stock Units,
if any,
will be at the sole discretion of the Company;
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(d)
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Participation
in the Plan is voluntary;
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(e)
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The
Award is an extraordinary item that does not constitute compensation
of
any kind for services of any kind rendered to the Company or the
Subsidiary (or affiliate), and which is outside the scope of the
Grantee’s
employment contract, if any;
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(f)
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The
Award is not a part of normal or expected compensation or salary
for any
purposes, including, but not limited to, calculating any severance,
resignation, termination, redundancy, end of service payments,
bonuses,
long-service awards, pension or retirement benefits or similar
payments;
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(g)
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In
consideration of the grant of the Award, no claim or entitlement
to
compensation or damages shall arise from termination of the Award
or
diminution in value of the Award resulting from termination of
the
Grantee’s active employment by the Company or the Subsidiary (or
affiliate) (for any reason whatsoever and whether or not in breach
of
local labor laws) and the Grantee shall release the Company and
the
Subsidiary (or affiliate) from any such claim that may arise; if,
notwithstanding the foregoing, any such claim is found by a court
of
competent jurisdiction to have arisen, then, by signing this Award
Agreement, the Grantee shall be deemed irrevocably to have waived
the
Grantee’s entitlement to pursue such claim; and
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(h)
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Notwithstanding
any terms or conditions of the Plan to the contrary, in the event
of
involuntary termination of the Grantee’s employment (whether or not in
breach of local labor laws), the Grantee’s right to receive the Award and
vest in Restricted Stock Units under the Plan, if any, will terminate
effective as of the date that the Grantee is no longer actively
employed
and will not be extended by any notice period mandated under local
law
(e.g., active
employment would not include a period of “garden leave” or similar period
pursuant to local law); furthermore, in the event of involuntary
termination of employment (whether or not in breach of local labor
laws),
the Grantee’s right to vest in Restricted Stock Unit after termination of
employment, if any, will be measured by the date of termination
of the
Grantee’s active employment and will not be extended by any notice period
mandated under local law.
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8. Data
Privacy: The
Grantee explicitly and unambiguously consents to the collection, use and
transfer, in electronic or other form, of the Grantee’s personal data as
described in this document by and among, as applicable, the Company and the
Subsidiary and affiliates for the exclusive purpose of implementing,
administering and managing the Grantee’s participation in the Plan.
The
Grantee hereby understands that the Company and the Subsidiary (or affiliates)
hold certain personal information about the Grantee, including, but not limited
to, the Grantee’s name, home address and telephone number, date of birth, social
insurance number or other identification number, salary, nationality, job
title,
any shares of stock or directorships held in the Company, details of all
options
or any other entitlement to shares of stock awarded, canceled, exercised,
vested, unvested or outstanding in the Grantee’s favor, for the purpose of
implementing, administering and managing the Plan (“Data”). The
Grantee hereby understands that Data may be transferred to any third parties
assisting in the implementation, administration and management of the Plan,
that
these recipients may be located in the Grantee’s country or elsewhere, and that
the recipient’s country may have different data privacy laws and protections
than the Grantee’s country. The Grantee hereby understands that the
Grantee may request a list with the names and addresses of any potential
recipients of the Data by contacting the Grantee’s local human resources
representative. The Grantee authorizes the recipients to receive,
possess, use, retain and transfer the Data, in electronic or other form,
for the
purposes of implementing, administering and managing the Grantee’s participation
in the Plan, including any requisite transfer of such Data as may be required
to
a broker or other third party with whom the Grantee may elect to deposit
any
Shares acquired upon vesting of the Award. The Grantee hereby
understands that Data will be held only as long as is necessary to implement,
administer and manage the Grantee’s participation in the Plan. The
Grantee hereby understands that the Grantee may, at any time, view Data,
request
additional information about the storage and processing of Data, require
any
necessary amendments to Data or refuse or withdraw the consents herein, in
any
case without cost, by contacting in writing the Grantee’s local human resources
representative. The Grantee hereby understands, however, that
refusing or withdrawing the Grantee’s consent may affect the Grantee’s ability
to participate in the Plan. For more information on the consequences
of the Grantee’s refusal to consent or withdrawal of consent, the Grantee hereby
understands that the Grantee may contact the appropriate human resources
representative responsible for Grantee’s country at the local or regional
level.
9. Failure
to Enforce Not a
Waiver. The failure of the Company to enforce at any time any
provision of the Award Agreement shall in no way be construed to be a waiver
of
such provision or of any other provision hereof.
10. Governing
Law. The Award Agreement shall be governed by and construed
according to the laws of the State of Texas without regard to its principles
of
conflict of laws. For purposes of litigating any dispute that arises
under this Award or Award Agreement, the parties hereby submit to and consent
to
the jurisdiction of the State of Texas, agree that such litigation shall
be
conducted in the courts of San Antonio, Texas, or the federal courts for
the
United States for the Western District of Texas, and no other courts, where
this
Award grant is made and/or performed.
11. Incorporation
of the
Plan. The Plan, as it exists on the date of the Award
Agreement and as amended from time to time, is hereby incorporated by reference
and made a part hereof, and the Award and the Award Agreement shall be subject
to all terms and conditions of the Plan. In the event of any conflict
between the provisions of the Award Agreement and the provisions of the Plan,
the terms of the Plan shall control, except as expressly stated
otherwise. The term “Section” generally refers to provisions within
the Plan (except where denoted otherwise); provided, however, the term
“Paragraph” shall refer to a provision of the Award Agreement.
12. Amendments. The
Award Agreement may be amended or modified at any time, but only by an
instrument in writing signed by each of the parties hereto.
13. Agreement
Not a Contract of
Employment. Neither the Plan, the granting of the Award, the
Award Agreement nor any other action taken pursuant to the Plan shall constitute
or be evidence of any agreement or understanding, express or implied, that
the
Grantee has a right to continue to be employed by, or to provide services
as a
director, consultant or advisor to, the Company, any Subsidiary or affiliate
thereof for any period of time or at any specific rate of
compensation.
14. Authority
of the
Administrator. The Administrator shall have full authority to
interpret and construe the terms of the Plan and the Award
Agreement. The Administrator shall have the exclusive discretion to
determine where the Grantee is no longer actively employed for purposes of
the
Award. The determination of the Administrator as to any such matter
of interpretation or construction shall be final, binding and
conclusive.
15. Binding
Effect. The Award Agreement shall apply to and bind the
Grantee and the Company and their respective permitted assignees or transferees,
heirs, legatees, executors, administrators and legal successors.
16. Tax
Representation. The Grantee has reviewed with his or her own
tax advisors the federal, state, local and worldwide tax consequences of
the
transactions contemplated by the Award Agreement. The Grantee is
relying solely on such advisors and not on any statement or representations
of
the Company or any of its agents. The Grantee understands that he or
she (and not the Company) shall be responsible for any tax liability that
may
arise as a result of the transactions contemplated by the Award
Agreement.
17. Language. If
the Grantee has received this or any other document related to the Plan
translated into a language other than English and if the translated version
is
different than the English version, the English version will
control.
18. Electronic
Delivery. The Company may, in its sole discretion, decide to
deliver any documents related to the Award granted under and participation
in
the Plan or future awards that may be granted under the Plan by electronic
means
or to request the Grantee’s consent to participate in the Plan by electronic
means. The Grantee hereby consents to receive such documents by
electronic delivery and, if requested, to agree to participate in the Plan
through an on-line or electronic system established and maintained by the
Company or another third party designated by the Company.
19. Acceptance. The
Grantee hereby acknowledges receipt of a copy of the Plan and the Award
Agreement. Grantee has read and understands the terms and provisions
thereof, and accepts the Award subject to all the terms and conditions of
the
Plan and the Award Agreement.
20. Severability. The
provisions of this Award Agreement are severable and if any one or more
provisions are determined to be illegal or otherwise unenforceable, in whole
or
in part, the remaining provisions shall nevertheless be binding and
enforceable.
Special
Notice for Canadian
Grantees: You understand and agree that by accepting this
Award, the benefit you will receive upon the vesting of the Restricted Stock
Unit will be settled in Shares only, and not in cash, not withstanding the
terms
of paragraph 2(d) above.
Special
Notice for Italian
Grantees: You understand and agree that by accepting this
Award, the benefit you will receive upon the vesting of the Restricted Stock
Unit will be settled in cash only, and not in Shares, notwithstanding the
terms
of paragraph 2(d) above.
[SIGNATURE
PAGE FOLLOWS]
IN
WITNESS WHEREOF, the parties hereto have executed and delivered the Award
Agreement on the day and year first above written.
KINETIC
CONCEPTS, INC.
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By:
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Name:
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Title:
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GRANTEE
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Signature:
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Name:
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Address:
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Telephone:
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Social
Security No.:
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DATE
OF GRANT
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NUMBER
OF
RESTRICTED
STOCK UNITS
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