Document:

Exhibit 10.27, KCI 2003 NEDSP, as Amended and Restated, on Nov 28, 2006

Exhibit 10.27

 

KINETIC CONCEPTS, INC.

2003 NON-EMPLOYEE DIRECTORS STOCK PLAN

As Amended and Restated on November 28, 2006

__________________________________________________

ARTICLE I.  DEFINITIONS

               1.1     Affiliate.  A corporate parent, corporate subsidiary, limited liability company, partnership or other business entity that is
wholly-owned, controlled by, or controls the Company through the beneficial ownership of greater than 50% of the outstanding capital stock of the Company, as determined in accordance with Rule 13d-3 under the Exchange Act.

               1.2     Affiliated Participant.  A Participant who is (i) receiving a management fee from the Company, or (ii) a principal of, or a
non-employee Board member appointed by, a shareholder of the Company which is receiving a management fee from the Company.

               1.3     Agreement.  A written agreement (including any amendment or supplement thereto) between the Company or an Affiliate of the Company
and a Participant specifying the terms and conditions of an Option or a Restricted Stock Award, as the case may be, granted to such Participant.

               1.4     Board.  The board of directors of the Company.

               1.5     Code.  The Internal Revenue Code of 1986, as amended.

               1.6     Committee.  A committee that is designated by the Board to serve as the administrator of the Plan.  The Committee shall be
composed of at least two individuals who are members of the Board and are not employees of the Company or an Affiliate, and who are designated by the Board as the "compensation committee" or are otherwise designated to administer the Plan.  In the absence of a
designation of a Committee by the Board, the Board shall be the Committee.

               1.7     Company.  Kinetic Concepts, Inc. and its successors.

               1.8     Date of Exercise.  The date that the Participant tenders the exercise price of an Option.

               1.9     Effective Date.  The effective date of the Plan, which is May 28, 2003.

               1.10   Exchange Act.  The Securities Exchange Act of 1934, as amended.

               1.11   Fair Market Value.  On any given date, Fair Market Value shall be determined by the applicable method described below:

                         (a)     If the Stock is traded on a trading exchange (e.g., the New York Stock Exchange) or
is reported on the NASDAQ National Market System or another NASDAQ automated quotation system or the OTC Bulletin Board System, Fair Market Value shall be the closing selling price of the Stock on such exchange or system with respect to the date for which Fair Market
Value is being determined.  If there is no closing selling price for the Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such a quotation exists.

                         (b)     If the Stock is not traded on a recognized exchange or automated trading system,
Fair Market Value shall be the value determined in good faith by the Committee.

               1.12   Grant Date.  The date set forth herein in Article IV as the date of grant for an Option or Stock Award, notwithstanding that an Agreement with
respect thereto may be executed or delivered thereafter.

               1.13   Non-Affiliated Participant.  A Participant who is not an Affiliated Participant.

               1.14   Option.  The right that is granted hereunder to a Participant to purchase from the Company a stated number of shares of Stock at the price set
forth in an Agreement.

               1.15   Participant.  A member of the Board who is not employed by the Company or an Affiliate of the Company and who otherwise satisfies the criteria
for being a Participant, as established from time to time by the Board.

               1.16   Plan.  The Kinetic Concepts, Inc. 2003 Non-Employee Directors Stock Plan, as amended and restated.

               1.17   Restricted Stock Award.  An award of shares of Stock granted under the Plan and subject to the restrictions set forth herein and in the
Agreement executed in connection therewith.

               1.18   Restriction Period.  The period of time during which restrictions apply to a Restricted Stock Award.

               1.19   Stock.  The common stock, par value $0.001 per share, of the Company or any successor security.

               1.20   Stock Award.  A Restricted Stock Award or an Unrestricted Stock Award granted under the Plan, as applicable.

               1.21   Underwriting Agreement.  The agreement between the Company and the underwriter or underwriters managing the initial public offering of the
Stock.

               1.22   Underwriting Date.  The date on which the Underwriting Agreement is executed and priced in connection with the initial public offering of the
Common Stock.

               1.23   Unrestricted Stock Award.  An award of shares of Stock granted under the Plan which is not subject to vesting requirements or transferability
restrictions (other than those required under Article IX, applicable law and any Company policy restricting the trading of shares of Stock by directors and officers).

ARTICLE II.  PURPOSE OF PLAN

               The purpose of the Plan is to provide an incentive to enable the Company to attract and retain experienced and highly-qualified individuals to serve as directors of the Company,
and to encourage stock ownership by such directors so that their interests are aligned with the interests of the Company and its shareholders.  It is intended that Participants may acquire and maintain equity interests in the Company to align their interests
with the Company's shareholders.

ARTICLE III.  ADMINISTRATION

               3.1     Administration of Plan.  The Plan shall be administered by the Committee.  The express grant in the Plan of any specific power
to the Committee shall not be construed as limiting any power or authority of the Committee.  Any decision made or action taken by the Committee to administer the Plan shall be final and conclusive.  No member of the Committee shall be liable for any act
done in good faith with respect to this Plan or any Agreement, Option or Stock Award.  The Company shall bear all expenses of Plan administration.  In addition to all other authority vested in the Committee under the Plan, the Committee shall have complete
authority to:

                         (a)     Interpret all provisions of the Plan;

                         (b)     Prescribe the form of any Agreement and notice and manner for executing or giving
the same;

                         (c)     Make amendments to all Agreements;

                         (d)     Adopt, amend and rescind rules for Plan administration;

                         (e)     Make all determinations it deems advisable for the administration of the Plan;

                         (f)     Amend the terms of outstanding Options and impose terms and conditions on the shares
of Stock issued pursuant to Stock Awards or upon the exercise of Options;

                         (g)     Either at the time an Option or Stock Award is granted, or by subsequent action, to
impose such restrictions, conditions, or limitations as it determines appropriate as to the timing and manner of any resales including, but not limited to restrictions under an insider trading policy, restrictions designed to delay and/or coordinate the timing and
manner of sales by Participants, and restrictions as to the use of specific brokerage firms for any resales or transfers.  Notwithstanding the foregoing, an amendment, restriction, condition or limitation that would have a material adverse effect on the rights
of a Participant under an outstanding Option or Stock Award shall not be valid with respect to such Option or Stock Award without the Participant’s consent;

                         (h)     Waive conditions to and/or accelerate the exercisability or vesting of an Option or
Stock Award, either automatically or upon the occurrence of specified events or otherwise in its discretion; and

                         (i)     Determine the extent to which a leave of absence for military or government service,
illness, temporary or permanent disability, or other reasons shall be treated as a termination, disability or interruption of service as a member of the Board.

               3.2     Section 16(b).  Notwithstanding anything in the Plan to the contrary, the Committee, in its absolute discretion, may restrict, limit
or condition the use of any provision of the Plan in order to ensure compliance with Section 16(b) of the Exchange Act and the rules promulgated thereunder.

ARTICLE IV.  ELIGIBILITY AND LIMITATIONS ON GRANTS

               4.1     Option Grants.  Options shall be granted automatically as follows:

                         (a)     Number.

                                  (i)     Effective for all periods
prior to January 1, 2005, each Participant shall automatically be granted an Option on a yearly basis to purchase a number of shares of Stock equal to $50,000 divided by the Fair Market Value of the Stock as of the Grant Date.  The initial Grant Date for each
Non-Affiliated Participant shall be on the earlier to occur of (i) the Effective Date, if the Participant is serving as a Board member on such date, or (ii) the first date after the Effective Date that such Participant is elected by the shareholders of the Company to
serve as a Board member.  The initial Grant Date for each Affiliated Participant shall be on the earlier of occur of (x): the Underwriting Date, or (y) the date on which the agreement pursuant to which a management fee is required to be paid, paid by the Company
to the Affiliated Participant or the Affiliated Participant’s employer shall be terminated.  Each year thereafter, each Participant shall be granted an additional Option to purchase a number of shares of Stock equal to $50,000 divided by the Fair Market
Value of the Stock on the date the Board ratifies such grant, provided that he or she is serving as a Board member on each such date.

                                 (ii)    Effective for the period beginning on
January 1, 2006 and ending on December 31, 2006, as of the date of the annual meeting of shareholders, each Participant that is serving as a Board member immediately following the annual meeting of shareholders shall automatically be granted an Option to purchase
4,500 shares of Stock.  In addition to the foregoing, unless the Board unanimously determines otherwise, if an individual first becomes a Participant at any time during this period other than at an annual meeting of shareholders, then that Participant shall
receive an initial Option grant to purchase 4,500 shares of Stock at such time as he or she first becomes a Participant.

                                (iii)   Effective for all periods from and following January
1, 2007, as of the date of each annual meeting of shareholders, commencing with the 2007 annual meeting of shareholders, each Participant (other than the Chairperson of the  Board)_that is serving as a Board member immediately following the annual meeting of
shareholders shall automatically be granted an Option to purchase a number of shares of Stock approximately equal to the Company's then current Black-Scholes calculation value of $90,000 ($180,000 for the Chairperson of the Board).  In addition to the foregoing,
unless the Board unanimously determines otherwise, if an individual first becomes a Participant at any time other than at an annual meeting of shareholders, then that Participant shall receive an initial Option grant to purchase a number of shares of Stock
approximately equal to the Company's then current Black-Scholes calculation value of $90,000 at such time as he or she first becomes a Participant.  The actual number of shares subject to the Option shall conclusively be determined by the Company's Chief
Financial Officer and set forth in the stock option award agreement.

                         (b)     Price.  The exercise price of each share of Stock subject to an Option
shall be the Fair Market Value of Stock on the Grant Date of such Option.

                         (c)     Option Period.  Each Option granted to a Participant will vest and
become exercisable incrementally over a period of three years with one-twelfth (1/12) of the number of the shares of Stock subject to the Option vesting and becoming exercisable on the date which is three calendar months following the Grant Date, provided that the
Participant remains a Board member on each such date.  The right to exercise an Option shall terminate seven (7) years after the Grant Date, unless terminated sooner pursuant to any of the following:

                                   (i)     If a Participant is
terminated as a Board member on account of fraud, dishonesty or other acts detrimental to the interests of the Company, the Option, including any portion of the Option which has vested or is otherwise exercisable by the Participant, shall terminate as of the date of
such termination.

                                  (ii)     Upon the death or disability
(as defined in Section 22(e)(3) of the Code) of a Participant, the Option shall fully vest on the date thereof and may be exercised within twelve (12) months after such death or disability.  In the event a participant fails to be re-elected to serve as a Board
member, the Option may be exercised, to the extent the Option had vested as of the Participant’s last day of service as a member of the Board, within twelve (12) months of such an event.  Thereafter, the Option shall terminate and no longer be
exercisable.

                                 (iii)     If a Participant is terminated as
a Board member for any reason other than the circumstances described in subparagraphs (i) or (ii) above, the Option may be exercised, to the extent the Option had vested as of the date of termination of his directorship, within three (3) months after the effective
date of such termination.  Thereafter, the Option shall terminate and no longer be exercisable.  Notwithstanding the foregoing, if the Participant becomes an employee of the Company or an Affiliate upon the termination of his directorship, the Option shall
expire after the termination of his employment in a manner that is consistent with this subparagraph (iii).

                         (d)     Rights of Participant.  No Participant shall have any rights as a
shareholder of the Company with respect to shares of Stock subject to Options prior to the date of exercise of such Option.

               4.2     Restricted Stock Awards.  Restricted Stock Awards shall be granted automatically as follows:

                          (a)     Number.

                                   (i)     Effective for all
periods prior to January 1, 2005, each Participant shall automatically be granted at no cost to the Participant a Restricted Stock Award with respect to a number of shares of Stock equal to $50,000 divided by the Fair Market Value of the Stock as of the Grant Date on
a yearly basis.  The initial Grant Date for each Non-Affiliated Participant shall be on the earlier to occur of (i) the Effective Date, if the Participant is serving as a Board member on such date, or (ii) the first date after the Effective Date that such
Participant is elected by the shareholders of the Company to serve as a Board member.  The initial Grant Date for each Affiliated Participant shall be in the earlier to occur of: (x) the Underwriting Date or (y) such earlier date on which the management fee paid
to the Participant or the Participant’s employer is terminated.  Each year thereafter, each Participant shall be granted an additional Restricted Stock Award with respect to a number of shares of Stock equal to $50,000 divided by the Fair Market Value of
the Stock on the date the Board ratifies such grant, provided that he or she is serving as a Board member on each such date.

                                  (ii)     Effective for the period
beginning on January 1, 2006 and ending on December 31, 2006, as of the date of the annual meeting of shareholders, each Participant that is serving as a Board member immediately following the annual meeting of shareholders shall automatically be granted at no cost
to the Participant a Restricted Stock Award with respect to 1,600 shares of Stock.  In addition to the foregoing, unless the Board unanimously determines otherwise, if an individual first becomes a Participant at any time during this period other than at an
annual meeting of shareholders, then that Participant shall receive an initial Restricted Stock Award with respect to 1,600 shares of Stock at such time as he or she first becomes a Participant.

                                 (iii)     Effective for all periods from and
following January 1, 2007, as of the date of each annual meeting of shareholders, commencing with the 2007 annual meeting of shareholders, each Participant (other than the Chairperson of the  Board)_that is serving as a Board member immediately following the
annual meeting of shareholders shall automatically be granted at no cost to the Participant a Restricted Stock Award covering a number of shares of Stock approximately equal to $90,000 ($180,000 for the Chairperson of the Board) divided by the Fair Market Value of
the Stock as of the Grant Date.  In addition to the foregoing, unless the Board unanimously determines otherwise, if an individual first becomes a Participant at any time other than at an annual meeting of shareholders, then that Participant shall receive at no
cost to the Participant a Restricted Stock Award covering a number of shares of Stock approximately equal to $90,000 divided by the Fair Market Value of the Stock as of the Grant Date at such time as he or she first becomes a Participant.  The actual number of
shares subject to the Restricted Stock Award shall conclusively be determined by the Company's Chief Financial Officer and set forth in the Restricted Stock award agreement.

                          (b)     Restrictions.  The Restricted Stock Award shall be granted to a
Participant only pursuant to an Agreement, which shall set forth such terms and conditions of the Restricted Stock Award as may be determined by the Committee to be consistent with the Plan, and which may include additional provisions and restrictions that are not
inconsistent with the Plan.  During the Restriction Period, a Participant may not sell, assign, transfer, pledge, or otherwise dispose of the shares of Stock subject to the Restricted Stock Award except in accordance with Article VI hereof.  Except for any
restrictions under applicable law or pursuant to any Company policy restricting the trading of shares of Stock by directors and officers, all restrictions imposed under the Restricted Stock Award shall lapse (i) upon the expiration of the Restriction Period, subject
to the provisions of subparagraph (c) below or (ii) as provided under Section 8.3.

                         (c)     Restriction Period.  The rights of a Participant in respect of a
Restricted Stock Award shall be subject to a Restriction Period commencing on the Grant Date and ending on the third anniversary of the Grant Date provided that:

                                   (i)     If during the
Restriction Period, the Participant is terminated as a Board member by death or disability (as defined in Section 22(e)(3) of the Code), or in the event the Participant fails to be re-elected to serve as a Board member, then for each full year such Participant served
as a Board member during the Restriction Period, one‐third (1/3) of the shares of Stock subject to the applicable Restricted Stock Award shall be deemed fully vested, and the restrictions with respect such vested shares shall lapse on the date of
termination.  Upon any such termination, if any portion of the Restricted Stock Award remains unvested pursuant to this subparagraph (i), Participant shall immediately return the share certificates for the Stock granted under the Restricted Stock Award to the
Company and the Company will re-issue share certificates to Participant representing the vested portion of the Restricted Stock Award.

                                  (ii)     If during the Restriction
Period, a Participant is terminated as a Board member for any reason other than the circumstances described in subparagraph (i) above, the Restricted Stock Award shall terminate and Participant shall immediately return the share certificates for the Stock granted
under the Restricted Stock Award to the Company.

                         (d)     Rights of Participant.  The Participant shall be entitled to delivery of
certificates representing the shares of Stock granted under the Restricted Stock Award.  Upon the grant of a Restricted Stock Award, the Participant receiving the grant shall be entitled to vote the shares of Stock and to receive any dividends paid thereon.

                         (e)     Stock Certificates.  A stock certificate registered in the name of each
Participant receiving a Restricted Stock Award (or in the name of a trustee for the benefit of each Participant) shall be issued in respect of the shares of Stock issuable pursuant to such Restricted Stock Award.  Such certificate shall bear whatever appropriate
legend referring to the terms, conditions, and restrictions applicable to such award as the Board or the Committee shall determine.

               4.3     Unrestricted Stock Awards.  Effective for all periods prior to January 1, 2005, unrestricted Stock Awards shall be granted
automatically as follows:

                         (a)     Number.  Each Participant shall automatically be granted an Unrestricted
Stock Award on a yearly basis with respect to a number of shares of Stock equal to $10,000 divided by the Fair Market Value of the Stock as of the Grant Date.  The initial Grant Date for each Non-Affiliated Participant shall be the earlier to occur of
(i) the Effective Date, if the Participant is serving as a Board member on such date, or (ii) the first date after the Effective Date that such Participant is elected by the shareholders of the Company to serve as a Board member.  The initial Grant Date for
each Affiliated Participant shall be on the earlier to occur of: (x) the Underwriting Date, or (y) the date on which the agreement pursuant to which a management fee is required to be paid by the Company to the Affiliated Participant or the Affiliated
Participant’s employer shall be terminated.  Each year thereafter, each Participant shall automatically be granted an additional Unrestricted Stock Award with respect to a number of shares of Stock equal to $10,000 divided by the Fair Market Value of the
Stock on the anniversary date of the initial Unrestricted Stock Award grant to such Participant, provided he or she is serving as a Board member on such date.

                         (b)     Rights of Participant.  Ownership of shares under an Unrestricted Stock
Award shall vest in the Participant immediately upon the Grant Date.  The Participant shall be entitled to delivery of stock certificates representing the shares of Stock granted under the Unrestricted Stock Award.  Upon the grant of an Unrestricted Stock
Award, the Participant receiving the grant shall be entitled to all the rights of a shareholder of the Company.

ARTICLE V.  STOCK SUBJECT TO PLAN

               5.1     Source of Shares.  Upon the grant of a Stock Award or the exercise of an Option, the Company shall transfer to the Participant
authorized but previously unissued shares of Stock or, if determined by the Board, shares of Stock that are held in treasury.

               5.2     Maximum Number of Shares.  The maximum aggregate number of shares of Stock (including shares issuable upon exercise of all Options)
that may be issued pursuant to this Plan is 400,000 shares, subject to increases and adjustments as provided in Article VIII.  Should the exercise price of an Option under the Plan be paid with shares of Stock or should shares of Stock otherwise issuable under
the Plan be withheld by the Company in satisfaction of the withholding taxes incurred in connection with the exercise of an Option or the grant of a Stock Award, then the number of shares of Stock issuable under the Plan shall be reduced by the gross number of shares
of Stock for which the Option is exercised, and not by the net number of shares of Stock issued to the Participant.  If, on any Grant Date, there are not sufficient shares of Stock that remain available pursuant to this Section 5.2 to provide the grant on such
date, then the number of shares of Stock subject to the grant on that date shall be determined on a pro-rata basis, with fractional shares rounded down to the nearest number of whole shares.  All references to numbers of shares of Stock subject to grants under
Article IV are subject to adjustment in accordance with Article VIII.

               5.3     Forfeitures.  If any Option or Restricted Stock Award granted hereunder is forfeited, expires or terminates for any reason, in part
or whole, the shares of Stock subject thereto which are thus forfeited shall again be available for issuance under the Plan.

ARTICLE VI.  TRANSFERABILITY OF OPTIONS AND

 RESTRICTED STOCK AWARDS

               Any Option or Restricted Stock Award granted under this Plan shall not be transferable except by will or by the laws of descent and distribution, and shall be exercisable during
the lifetime of the Participant only by the Participant; provided, however, that an Option or Restricted Stock Award may be transferable to the extent provided in an Agreement.  No right or interest of a Participant in any Option or Restricted Stock Award shall
subject to any lien, obligation or liability of such Participant.

ARTICLE VII.  METHOD OF EXERCISE OF OPTIONS

               7.1     Exercise.  An Option granted hereunder shall be deemed to have been exercised on the Date of Exercise.  Subject to the
provisions of Articles VI and IX, an Option may be exercised in whole or in compliance with such requirements as the Committee shall determine, but in no event sooner than six months from the date of grant.

               7.2     Payment.  Except as otherwise provided by the Option Agreement, payment of the exercise price of an Option shall be made (i) in
cash, (ii) where the Stock is publicly traded on a recognized exchange or automated trading system, in actual or constructive delivery of Stock that was acquired at least six months prior to the exercise of the Option, or such shorter or longer period, if any, as is
required by the Company’s accountants to avoid a charge to the Company’s earnings for financial reporting purposes, (iii) where the Stock is publicly traded on a recognized exchange or automated trading system, through a special sale and remittance
procedure pursuant to which a Participant shall concurrently provide irrevocable instructions to (a) a Company-designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the
settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased shares plus all applicable income and employment taxes required to be withheld by the Company by reason of such exercise and (b) the Company to deliver the certificates
for the purchased shares directly to such brokerage firm in order to complete the sale, (iv) in other consideration acceptable to the Committee, or (v) in a combination thereof; provided, however, that a form of payment other than cash is only acceptable to the
extent that the same is approved by the Committee. Payment of the exercise price must include payment of tax withholding, as described in Section 7.3, in cash unless the Company consents to alternative arrangements for withholding.

               7.3     Withholding Tax Requirements.  Upon exercise of an Option, the Participant shall, upon notification of the amount due and prior to
or concurrently with the delivery of the certificates representing the shares, pay to the Company amounts necessary to satisfy applicable federal, state and local withholding tax requirements or shall otherwise make arrangements satisfactory to the Company for such
requirements, but only to the extent that the Company is required by law to withhold such amounts or that the Participant voluntarily elects for such withholding.

               7.4     Issuance and Delivery of Shares.  Shares of Stock issued pursuant to the exercise of Options hereunder shall be delivered to
Participants by the Company (or its transfer agent) as soon as administratively feasible after a Participant exercises an Option hereunder and executes any applicable shareholder agreement or agreement described in Section 9.2 that the Company requires at the time of
exercise.

               7.5     Fractional Shares.  Only whole shares of Stock may be issued pursuant to a Stock Award or upon exercise of an Option.  Any
fractional shares resulting from the calculations under Sections 4.1, 4.2 and 4.3 shall be rounded down to the nearest whole share.  Any amounts tendered in the exercise of an Option remaining after the maximum number of whole shares of Stock have been purchased
will be returned to the Participant in the form of cash.

ARTICLE VIII.  ADJUSTMENT UPON CORPORATE CHANGES

               8.1     Adjustments to Shares.  The maximum number of shares of Stock with respect to which Options or Stock Awards hereunder may be
granted, the number of shares of Stock which are the subject of outstanding Options or Stock Awards, and the exercise price of Options, shall be equitably and appropriately adjusted by the Committee, in the event that:

                         (a)     the Company effects one or more Stock dividends, Stock splits, reverse Stock splits,
subdivisions, consolidations or other similar events;

                         (b)     the Company engages in a transaction which is described in section 424(a) of the
Code; or

                         (c)     there occurs any other recapitalization or reorganization event which necessitates
such action; provided, however, adjustments to the limit on Options or Stock Awards specified in Section 5.2 shall be proportionate to the modifications of the Stock that are on account of such corporate changes.  Notwithstanding the foregoing, the Committee may
not modify the Plan or the terms of any Options or Stock Awards then outstanding or to be granted hereunder to provide for the issuance under the Plan of a different class of stock or kind of securities.  If an event described in paragraph (a), (b) or (c)
occurs, the number of shares of Stock subject to each Option grant to be granted following such event pursuant to Section 4.1(a) shall not be adjusted to reflect such event unless the Board (in its sole discretion) determines otherwise.

               8.2     Substitution of Options on Merger or Acquisition.  The Committee may grant Options or Stock Awards in substitution for stock awards,
stock options, stock appreciation rights or similar awards held by an individual who becomes a director of the Company in connection with a transaction to which section 424(a) of the Code applies.  The terms of such substituted Options or Stock Awards shall be
determined by the Committee in its sole discretion, subject only to the limitations of Article V.

               8.3     Effect of Certain Transactions.  The provisions of this Section 8.3 shall apply to the extent that an Agreement does not otherwise
expressly address the matters contained herein.  If the Company experiences an event which results in a "Change in Control," as defined in Section 8.3(a), then, whether or not the vesting requirements set forth in any Agreement have been satisfied, (i) all
Options that are outstanding at the time of the Change in Control shall become fully vested and exercisable immediately prior to the Change in Control event, and (ii) the Restriction Period on an outstanding Restricted Stock Award shall automatically expire and all
restrictions imposed under such Restricted Stock Award shall immediately lapse.

                         (a)     A Change in Control will be deemed to have occurred for purposes hereof if (1) any
"person" as such term is used in Sections 13(d) and 14(d) of the Exchange Act, other than an individual who is a shareholder on the date of the adoption of the Plan by the Board, becomes the "beneficial owner" (as defined in Rule 13d-3 under said 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 (as defined below), or (2) the shareholders of the Company approve a merger or consolidation of the
Company with any other entity, 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) more than 50% 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 (3) the shareholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of its assets. For purposes of this Section 8.3(a), "Voting Securities" of an entity shall mean any securities of the entity which vote generally in the
election of its directors.

                         (b)     In the event of a Change in Control, the Committee may provide, in its discretion
and on such terms and conditions as it deems appropriate, either by the terms of the Agreement or by a resolution adopted prior to the occurrence of the Change in Control, that:

                                   (i)     any outstanding Option
shall be assumed by the surviving corporation or any successor corporation to the Company, or a parent or subsidiary thereof, or other corporation that is a party to the transaction resulting in the Change in Control, in which event, (1) the shares of the Stock
subject to such Option shall be substituted with the number and class of securities of the successor, surviving or other corporation that would have been issued to the Participant in exchange for shares of the Stock pursuant to the Change in Control transaction had
the Option been exercised prior to such transaction, (2) notwithstanding Section 8.3(b)(i)(1) hereof, the number of such securities of the successor, surviving or other corporation that is made subject to such Option shall be adjusted as necessary so that the
aggregate value of such securities shall be equal to the aggregate value of the consideration that would have been paid or issued to the Participant in exchange for the shares of Stock pursuant to the Change in Control transaction had the Option been exercised
immediately prior to such transaction, and (3) the exercise price payable per share of Stock subject to such Option shall be appropriately adjusted provided, however, that the aggregate exercise price for such Option shall remain the same;

                                  (ii)     any outstanding Option shall
be converted into a right to receive cash on or following the closing date or expiration date of the Change in Control transaction in an amount equal to the aggregate value of the consideration that would have been paid or issued to the Participant in exchange for
shares of the Stock pursuant to the Change in Control transaction had the Option been exercised immediately prior to such transaction less the aggregate exercise price of such Option;

                                 (iii)     any outstanding Option cannot be
exercised after such a Change in Control; or

                                 (iv)     any outstanding Option may be dealt
with in any other manner determined in the discretion of the Committee.

                         (c)     Notwithstanding the foregoing, a portion of the acceleration of vesting described in
this Section shall not occur with respect to an Option to the extent such acceleration of vesting would cause the Participant or holder of such Option to realize less income, net of taxes, after deducting the amount of excise taxes that would be imposed pursuant to
section 4999 of the Code, than if accelerated vesting of that portion of the Option did not occur.  This limitation shall not apply (i) to the extent that the Company, an Affiliate or the acquirer are obligated to indemnify the Participant or holder for such
excise tax liability under an enforceable "golden parachute" indemnification agreement, or (ii) to the extent applicable, the shareholder approval described in Q&A 7 of Prop. Treas. Reg. ss. 1.280G-1 issued under section 280G of the Code is obtained to permit the
acceleration of vesting described in this Section (applied as if the shareholder approval date was the date of the Change in Control).

                         (d)     Notwithstanding anything to the contrary contained herein, a change in ownership
that occurs as a result of a public offering of the Company’s equity securities that is approved by the Board shall not constitute a Change in Control.

               8.4     No Adjustment upon Certain Transactions.  The issuance by the Company of shares of stock of any class, or securities convertible
into shares of stock of any class, for cash or property, or for labor or services rendered, either upon direct sale or upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible into such
shares or other securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, outstanding Options or Stock Awards.

ARTICLE IX.  COMPLIANCE WITH LAW AND REGULATORY APPROVAL

               9.1     General.  No Option shall be exercisable, no shares of Stock shall be issued, no certificates for shares of Stock shall be
delivered, and no payment shall be made under this Plan except in compliance with all federal, state and local laws and regulations including, without limitation, withholding tax requirements, federal and state securities laws and regulations and the rules and
regulations of any government or regulatory agency or body and in compliance with the rules of all securities exchanges or self-regulatory organizations on which the Company’s shares may be listed, which the Committee shall, in its discretion, determine to be
necessary or applicable, in all respects. The Company shall have the right to rely on an opinion of its counsel as to such compliance.  Any certificate issued to evidence shares of Stock for which an Option is exercised or a Stock Award is granted may bear such
legends and statements as the Committee upon advice of counsel may deem advisable to assure compliance with federal or state laws and regulations.

               9.2     Representations by Participants.  As a condition to the exercise of an Option or issuance of a Stock Award, the Company may require
a Participant to represent and warrant at the time of any such exercise or grant that the shares are being acquired only for investment and without any present intention to sell or distribute such shares, if, in the opinion of counsel for the Company, such
representation is required by any relevant provision of the laws referred to in Section 9.1.  At the option of the Company, a stop transfer order against any shares of Stock may be placed on the official stock books and records of the Company, and a legend
indicating that the Stock may not be pledged, sold or otherwise transferred unless an opinion of counsel was provided (concurred in by counsel for the Company) and stating that such transfer is not in violation of any applicable law or regulation may be stamped on
the stock certificate in order to assure exemption from registration.  The Committee may also require such other action or agreement by the Participants as may from time to time be necessary to comply with federal or state securities laws.  This provision
shall not obligate the Company or any Affiliate to undertake registration of Options or Stock hereunder.

ARTICLE X.  GENERAL PROVISIONS

              10.1    Unfunded Plan.  The Plan, insofar as it provides for grants, shall be unfunded, and the Company shall not be required to segregate any assets
that may at any time be represented by grants under this Plan.  Any liability of the Company to any person with respect to any grant under this Plan shall be based solely upon contractual obligations that may be created hereunder.  No such obligation of the
Company shall be deemed to be secured by any pledge of, or other encumbrance on, any property of the Company.

              10.2    Rules of Construction.  Headings are given to the articles and sections of this Plan solely as a convenience to facilitate reference.  The
masculine gender when used herein refers to both masculine and feminine.  The reference to any statute, regulation or other provision of law shall be construed to refer to any amendment to or successor of such provision of law.

              10.3    Governing Law.  The internal laws of the State of Texas (without regard to choice of law) shall apply to all matters arising under this Plan,
to the extent that federal law does not apply.

              10.4    Compliance with Section 16 of the Exchange Act.  Transactions under this Plan are intended to comply with all applicable conditions of Rule
16b-3 (or successor provisions) promulgated under the Exchange Act.  To the extent any provision of this Plan or action by Committee fails to so comply, it shall be deemed null and void to the extent permitted by law and deemed advisable by the Committee.

 

              10.5    Amendment.  The Board may amend or terminate this Plan at any time; provided, however, an amendment that would have a material adverse
effect on the rights of a Participant under an outstanding Option or Stock Award is not valid with respect thereto without the Participant’s consent; and provided, further, that the shareholders of the Company must approve, in general meeting, any amendment
that changes the number of shares in the aggregate which may be issued pursuant to Options or Stock Awards granted under the Plan. Such amendment must be approved coincident with or prior to the date Options or Stock Awards are granted with respect to such
shares.

              10.6    Disputes and Dispute Resolution.

                         (a)     Any and all claims arising out of or relating to the Plan, or the Committee’s
administration or interpretation of the Plan with respect to any Participant, shall be resolved by binding arbitration which shall be the sole and exclusive method of resolving such disputes or claims and shall be in lieu of any trial before a court of jury. 
The Committee, in offering an option grant under this Plan, and a Participant, in accepting any option grant under the Plan, expressly waive any and all rights to a trial before a court or jury regarding any disputes and claims which arise from or relate to the Plan,
and any option grant made under the Plan.

                         (b)     Arbitration shall be conducted within Bexar County, Texas before a single neutral
arbitrator selected jointly by the Committee and the Participant in accordance with the rules of the American Arbitration Association ("AAA") rules and applicable law then in effect.  However, the standard of review to be applied by the Arbitrator shall be
whether the Committee’s disputed act, omission or decision with respect to the Participant was contrary to any Plan provision or otherwise arbitrary and capricious.

                         (c)     To the extent that any of the provisions of this Section 10.6 or the AAA Rules
conflicts with applicable law for the arbitration of contract disputes, the provisions or procedures required by applicable law shall govern.Exhibit 10.28, 2004 Equity Plan NSOA - C. Burzik

Exhibit 10.28

 

KINETIC CONCEPTS, INC.

2004 EQUITY PLAN

NONQUALIFIED STOCK OPTION AGREEMENT

 

          THIS AGREEMENT (the “Option Agreement”) is made and entered into as of November 6, 2006 (the “Date of Grant”), by and between Kinetic
Concepts, Inc., a Texas corporation (the “Company”), and Catherine M. Burzik (the “Optionee”).  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 Optionee is to be granted an option (the “Option”) to purchase Shares, subject to the terms and conditions set forth in the Plan
and herein, and hereby grants such Option.

          1.     Number of Shares and Exercise Price.  The Option entitles the Optionee to purchase 332,000 Shares (the “Option Shares”) at a price of $33.99
per share (the “Option Exercise Price”).

          2.     Option Term.  The term of the Option and of the Option Agreement (the “Option Term”) shall commence on the Date of Grant and, unless the
Option is previously terminated pursuant to Paragraph 5 below, shall terminate upon the expiration of ten (10) years from the Date of Grant (the “Expiration Date”).  As of the Expiration Date, all rights of the Optionee hereunder shall terminate.

          3.     Conditions of Exercise.

                  (a)    Subject to Paragraph 5 below, the Option shall become vested and

                           exercisable as to 25% of the Option Shares on the first anniversary of the

                           Date of Grant, and as to an additional 25% of the Option Shares on each

                           of the three succeeding anniversaries of Date of Grant, provided that the

                           Optionee has been continuously employed by or providing services to

                           the Company or any Subsidiary or affiliate through each such date.

                  (b)    Except as otherwise provided herein, the right of the Optionee to

                           purchase Option Shares with respect to which the Option has become

                           exercisable and vested may be exercised in whole or in part at any time

                           or from time to time prior to the Expiration Date; provided, however,

                           that the Option may not be exercised for a fraction of a Share.

          4.     Method of Exercise.  This Option may be exercised, in whole or in part, by means of any online broker-assisted exercise procedure approved by the
Administrator, or by delivery of a written notice of exercise to the Company in such form as may be approved by the Administrator from time to time and which may be obtained from the Company’s Equity Accounting and Administration department, accompanied by
payment in full of the aggregate Option Exercise Price which may be made (i) in cash or by check, (ii) to the extent permitted by applicable law, by means of any cash or cashless exercise procedure through the use of a brokerage arrangement approved by the
Administrator, (iii) in the form of unrestricted Shares already owned by the Optionee for at least six months on the date of surrenderto the extent the unrestricted Shares have a Fair Market Value on the date of surrender equal to the aggregate Option Exercise
Price of the Shares as to which such Option shall be exercised, or (iv) any combination of the foregoing.

          5.     Effect of Conduct Constituting Cause; Termination of Employment or

                  Service; or Change in Control.

                  (a)    If at any time (whether before or after termination of employment or

                           service) the Administrator determines that the Optionee has engaged in

                           conduct that would constitute Cause, the Administrator may provide for

                           the immediate forfeiture of the Option (including any securities, cash or

                           other property issued upon exercise or other settlement of the Option),

                           whether or not vested.  Any such determination by the Administrator

                           shall be final, conclusive and binding on all persons.

                  (b)    If the Optionee’s employment with or service to the Company, any

                           Subsidiary or affiliate thereof, terminates (i) by the Company other than

                           for Cause or (ii) by Optionee for Good Reason (as defined herein), any

                           portion of the Option that is outstanding at such time shall become fully

                           and immediately vested and exercisable for a period of three years from

                           the date of such termination, provided, that the Option shall not be

                           exercisable after the Expiration Date.

                           For purposes of this Option Agreement, "Good Reason" means the

                           occurrence of any of the following without Optionee's prior written

                           consent: (i) a material reduction of Optionee's authorities, duties, or

                           responsibilities as an executive officer or director of the Company;

                           provided, however, that following a Change in Control of the Company,

                           it shall be considered Good Reason if Optionee determines, in good

                           faith, that she cannot continue her duties as CEO of the Company; (ii)

                           the Company’s requiring Optionee to be based at a location in excess of

                           fifty (50) miles from the Company’s headquarters in San Antonio; (iii) a

                           material reduction of Optionee's base salary or target bonus percentage

                           as in effect from time to time; (iv) the failure of the Company to

                           obtain a satisfactory agreement from any successor of the Company to

                           assume and agree to perform the Company’s obligations under letter

                           agreement, dated October 16, 2006, between the Company and the

                           Optionee, and deliver a copy thereof to Optionee; or (v)  the failure of

                           the Board to nominate or re-nominate Optionee to serve on the Board.

                  (c)    If the Optionee’s employment with or service to the Company, any

                           Subsidiary or affiliate thereof, terminates for any reason other than as set

                           forth in Section 5(b) above, the Option, to the extent vested and

                           exercisable as of the date of such termination, shall expire 30 days

                           following the date of such termination (180 days in case of termination

                           of employment or service due to death or Disability) and the Option, to

                           the extent not vested and exercisable as of the date of such termination,

                           shall expire as of such date.  Notwithstanding the foregoing, if the

                            Optionee’s employment with or service to the Company, any

                           Subsidiary or affiliate thereof terminates for Cause, the Option, whether

                           or not vested or exercisable, shall expire as of the date of such

                           termination.  The Option shall not be exercisable after the Expiration

                           Date.

                  (d)    Upon the occurrence of a Change in Control, any portion of the Option

                           that is outstanding at such time shall become fully and immediately

                           vested and exercisable.

          6.     Adjustments.  The Option and all rights and obligations under this Option Agreement are subject to Section 5 of the Plan.

          7.     Nontransferability of Option.  Except by will or under the laws of descent and distribution and as set forth in the following two sentences, the
Optionee may not sell, transfer, pledge or assign the Option, and, during the lifetime of the Optionee, only the Optionee may exercise the Option.  Notwithstanding the foregoing, during the Optionee’s lifetime, the Administrator may, in its sole
discretion, permit the transfer, assignment or other encumbrance of the Option. Additionally, subject to the approval of the Administrator and to any condi­tions that the Administrator may pre­scribe, the Optionee may, upon provid­ing written notice to
the Company, elect to transfer the Option (i) to members of his or her Imme­diate Family, provided that no such trans­fer may be made in exchange for con­sider­ation, (ii) by instru­ment to an inter vivos or testamentary trust in which the
Option is to be passed to beneficiaries upon the death of the Optionee, or (iii) pursuant to a qualified domestic relations order within the meaning of Section 414(p) of the Code or any similar instrument, to the extent permitted by applicable law.  Any
attempted sale, transfer, pledge, assignment, encumbrance or other disposition of the Option contrary to the provisions hereof shall be null and void and without effect.

          8.     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 which it is personally delivered or, whether actually received or not, on the
third business day after mailing or 24 hours after transmission by facsimile to the respective parties named below.

          If to the Company:          Kinetic Concepts, Inc.

                                                  Attn.: 
Chief Financial Officer

                                                   8023
Vantage Drive

                                                  San
Antonio, TX 78230

                                                  Phone: 
(210) 255-6456

                                                  Fax: 
(210) 255-6125

          If to the Optionee:          To the address as last set forth

                                                  in
the Company's employment records

          Either party may change such party’s address for notices by duly giving notice pursuant hereto.

          9.     Withholding Requirements.     Pursuant to Section 14 of the Plan, the Company (or Subsidiary or affiliate, as the case may be) has
the right to require the Optionee to remit to the Company (or Subsidiary or affiliate, as the case may be) in cash an amount sufficient to satisfy any federal, state and local tax withholding requirements related to the exercise of the Option.  With the approval
of the Administrator,  the Optionee may satisfy the foregoing requirement by electing to have the Company withhold from delivery Shares or by delivering Shares, in each case, having a value equal to the aggregate required minimum tax 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.   Fractional share amounts shall be settled in cash.

         10.    Compliance with Laws.

                  (a)    Shares shall not be issued pursuant to the exercise of the Option granted

                           hereunder unless the exercise of such Option and the issuance and

                           delivery of such Shares pursuant thereto shall comply with all relevant

                           provisions of law, including, without limitation, the Securities Act of

                           1933, as amended, the Exchange Act and the requirements of any stock

                           exchange upon which the Shares may then be listed, 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 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 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 Securities and Exchange Commission, any stock exchange upon

                           which the Shares may then be listed, and any applicable federal or state

                           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.

         11.    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 Option Shares by any holder thereof in violation of the provisions of this Option Agreement or the Articles of Incorporation or the Bylaws of the Company, will be
valid, and the Company will not transfer any of such Option Shares on its books nor will any of such Option 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.

         12.    Failure to Enforce Not a Waiver.  The failure of the Company or the Optionee to enforce at any time any provision of the Option Agreement shall in no way be
construed to be a waiver of such provision or of any other provision hereof.

         13.    Governing Law.  The Option 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.

         14.    Incorporation of the Plan.   The Plan, as it exists on the date of the Option Agreement and as amended from time to time, is hereby incorporated by reference
and made a part hereof, and the Option and this Option Agreement shall be subject to all terms and conditions of the Plan.  In the event of any conflict between the provisions of the Option 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; provided, however, the term “Paragraph” shall refer to a provision of this Option Agreement.

         15.    Amendments.  This Option Agreement may be amended or modified at any time, but only by an instrument in writing signed by each of the parties hereto.

         16.    Rights as a Shareholder.  Neither the Optionee nor any of the Optionee’s successors in interest shall have any rights as a shareholder of the Company with
respect to any Option Shares until the Optionee has given written notice of exercise, has paid in full for such Shares, and has satisfied the requirements in Sections 14 and 15(b) of the Plan.

         17.    Agreement Not a Contract of Employment.  Neither the Plan, the granting of the Option, the Option 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 Optionee 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.

         18.    Authority of the Administrator.  The Administrator shall have full authority to interpret and construe the terms of the Plan and the Option Agreement.  The
determination of the Administrator as to any such matter of interpretation or construction shall be final, binding and conclusive.

         19.    Binding Effect.  The Option Agreement shall apply to and bind the Optionee and the Company and their respective permitted assignees or transferees, heirs,
legatees, executors, administrators and legal successors.

         20.    Tax Representation.  The Optionee has reviewed with his or her own tax advisors the Federal, state, local and foreign tax consequences of the transactions
contemplated by this Option Agreement.  The Optionee is relying solely on such advisors and not on any statement or representations of the Company or any of its agents.  The Optionee 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 Option Agreement.

         21.    Acceptance.  The Optionee hereby acknowledges receipt of a copy of the Plan and this Option Agreement.  Optionee has read and understands the terms and
provisions thereof, and accepts the Option subject to all the terms and conditions of the Plan and the Option Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

          IN WITNESS WHEREOF, the parties hereto have executed and delivered the Option Agreement on the day and year first above written.

KINETIC CONCEPTS,
INC.                                         

By:                  /s/ Martin J.
Landon                                 

 Name:                  Martin J.
Landon                                 

 Title:                Sr. Vice President, CFO                  
       

OPTIONEE                                                                     

Signature: /s/ Catherine M. Burzik                                  

 Name:            Catherine M. Burzik                          
       

 

	
DATE OF

 GRANT

	
NUMBER OF

 SHARES SUBJECT

 TO OPTION

	
OPTION

 EXERCISE

 PRICE

	
EXPIRATION

 DATE

	
November 6, 2006

	
332,000

	
$33.99

	
November 6, 2016

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