Document:

Exhibit 10.6

	 	 	 	 	 

Exhibit 10.6

SELECT MEDICAL HOLDINGS CORPORATION

RESTRICTED STOCK AWARD AGREEMENT UNDER THE

2005 EQUITY INCENTIVE PLAN FOR NON-EMPLOYEE DIRECTORS

This Restricted Stock Award Agreement (this “Agreement”) is made as of August 11, 2010
(the “Effective Date”), between SELECT MEDICAL HOLDINGS CORPORATION, a Delaware corporation
(the “Company”), and LEOPOLD SWERGOLD, an individual (the “Participant”).

WHEREAS, the Company has adopted the 2005 Equity Incentive Plan for Non-Employee Directors,
amended and restated as of August 12, 2009 (the “Plan”), all of the terms and provisions of
which are incorporated herein by reference and made a part hereof;

WHEREAS, the Participant serves as an independent member of the Board of Directors of the
Company;

WHEREAS, in order to provide an incentive to the Participant to serve as an independent member
of the Board of Directors of the Company, the Company has approved and authorized the issuance of
certain shares of the Common Stock of the Company, par value $.001 per share (the “Stock”),
to the Participant, subject to the terms of the Plan and this Agreement; and

WHEREAS, all capitalized terms used but not defined herein shall have the meanings set forth
in the Plan.

NOW, THEREFORE, in consideration of the services to be rendered by the Participant as an
independent member of the Board of Directors of the Company, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the
Participant agree to the terms and conditions set forth herein.

1. Award of Restricted Stock. The Company hereby awards and issues to the
Participant, effective as of the date hereof, 5,000 shares of Stock (the “Restricted
Stock”).

2. Vesting Schedule. Subject to the further provisions of this Agreement, and the
Participant’s continued service as an independent member of the Board of Directors of the Company,
on the applicable vesting date, commencing on August 11, 2011 and on August 11 of each year
thereafter, 20% of the shares of Restricted Stock shall vest, so that the following number of
shares of Restricted Stock shall have vested:

	 	 	 	 	 
	 	 	Cumulative Shares of	 
	Vesting Dates	 	Restricted Stock Vested	 
	 
	 	 	 	 
	August 11, 2011
	 	 	1,000	 
	 
	 	 	 
	August 11, 2012
	 	 	2,000	 
	 
	 	 	 
	August 11, 2013
	 	 	3,000	 
	 
	 	 	 
	August 11, 2014
	 	 	4,000	 
	 
	 	 	 
	August 11, 2015
	 	 	5,000	 
	 
	 	 	 

 

 

 

Subject to Section 5 hereof, the period beginning on the date hereof through and including
the vesting date for any shares of Restricted Stock shall be referred to herein as the
“Restricted Period” with respect to such shares of Restricted Stock.

3. Transferability. Shares of Restricted Stock which have not vested may not be sold,
assigned, transferred, pledged, or otherwise disposed of under any circumstances during the
applicable Restricted Period, except that such shares may be transferred to a Permitted Transferee
who agrees in writing (in a form satisfactory to the Company and its counsel) to be bound by this
Agreement to the same extent as the Participant, and any such transferred shares shall continue to
be subject to forfeiture upon the Participant’s termination of service as an independent member of
the Board of Directors of the Company as provided herein. The Restricted Stock shall not be
subject to execution, attachment or similar process during the applicable Restricted Period. Upon
any attempt to transfer, assign, pledge, or otherwise dispose of the Restricted Stock during the
applicable Restricted Period contrary to the provisions of the Plan or this Agreement, or upon the
levy of any attachment or similar process upon the Restricted Stock during the applicable
Restricted Period, the Restricted Stock shall immediately be forfeited to the Company and cease to
be outstanding.

4. Forfeiture of Restricted Stock. All unvested shares of Restricted Stock shall
immediately be forfeited to the Company and cease to be outstanding upon the termination of the
Participant’s service as an independent member of the Board of Directors of the Company. The
Participant acknowledges that neither the Participant nor the Participant’s estate will have any
claim whatsoever against the Company or any Subsidiary related to any forfeiture of the Restricted
Stock.

5. Acceleration of Vesting Upon Change of Control. Upon a Change of Control all
Restricted Periods shall terminate and all outstanding shares of Restricted Stock shall be vested
in full and all limitations on such Restricted Stock set forth in this Agreement shall
automatically lapse.

6. Plan Governing. The Participant hereby acknowledges receipt of a copy of the Plan
and accepts and agrees to be bound by all of the terms and conditions of the Plan as if set out
verbatim in this Agreement. In the event of a conflict between the terms of the Plan and the terms
of this Agreement, the terms of the Plan shall control.

7. Miscellaneous. This Agreement may be amended only by written agreement of the
Participant and the Company and may be amended without the consent of any other person. The
provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors, representatives, heirs, descendants, distributees and permitted
assigns. This Agreement may be executed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.

IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the Effective
Date.

 

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	 	SELECT MEDICAL HOLDINGS CORPORATION

 	 
	 	By:  	/s/    Robert A. Ortenzio
 	 
	 	 	Name:  	Robert A. Ortenzio 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	PARTICIPANT:

 	 
	 	/s/   Leopold Swergold
 	 
	 	Leopold Swergold 	 

 

3Exhibit 4.1

EXHIBIT 4.1

CAREY
WATERMARK INVESTORS INCORPORATED

DISTRIBUTION REINVESTMENT PLAN

1. Participation; Agent. Carey Watermark Investors Incorporated Distribution
Reinvestment Plan (“Plan”) is available to stockholders of record of the common stock
(“Common Stock”) of Carey Watermark Investors Incorporated (“CWI” or the
“Company”). Phoenix American Financial Services Inc. (“Phoenix American”) acting as agent
for each participant in the Plan, will apply cash distributions which become payable to such
participant on shares of CWI Common Stock (including shares held in the participant’s name and
shares accumulated under the Plan), to the purchase of additional whole and fractional shares of
CWI Common Stock for such participant.

2. Eligibility. Participation in the Plan is limited to registered owners of CWI
Common Stock. Shares held by a broker-dealer or nominee must be transferred to ownership in the
name of the stockholder in order to be eligible for this Plan. Further, a stockholder who wishes to
participate in the Plan may purchase shares through the Plan only after receipt of a prospectus
relating to the Plan, which prospectus may also relate to a concurrent public offering of shares by
CWI. CWI’s board of directors’ (the “Board”) reserves the right to amend the Plan in the
future to permit voluntary cash investments in Common Stock pursuant to the Plan. A participating
stockholder is not required to include all of the shares owned by such stockholder in the Plan, but
all of the distributions paid on enrolled shares will be reinvested.

3. Stock Purchases. In making purchases for the accounts of participants, Phoenix
American may commingle the funds of one participant with those of other participants in the Plan.
All shares purchased under the Plan will be held in the name of each participant. Purchase will be
made directly from CWI at 95% of the estimated net asset value (“NAV”) per share of CWI’s
Common Stock, as estimated by Carey Lodging Advisors, LLC (the “Advisor”) or another firm
CWI chooses for that purpose. During the offering and until the first annual valuation of CWI’s
assets is received, the purchase price will be $9.50 per share. Subsequent to the time that we
begin to receive annual valuations, the per share purchase price will be 95% of the then current
NAV. NAV is determined by adding the most recent appraised value of the real estate owned by CWI to
the value of CWI’s other assets, subtracting the total amount of all liabilities and dividing the
difference by the total number of outstanding shares. Phoenix American shall have no responsibility
with respect to the market value of the CWI Common Stock acquired for participants under the Plan.

4. Timing of Purchases. Phoenix American will make every reasonable effort to reinvest
all distributions on the day the cash distribution is paid (except where necessary to comply with
applicable securities laws) by CWI. If, for any reason beyond the control of Phoenix American,
reinvestment of the distributions cannot be completed within 30 days after the applicable
distribution payment date, participants’ funds held by Phoenix American will be distributed to the
participant.

5. Account Statements. Following the completion of the purchase of shares after each
distribution, Phoenix American will provide to each participant an account statement showing the
cash distribution, the number of shares purchased with the cash distribution and the year-to-date
and cumulative cash distributions paid.

6. Expenses and Commissions. There will be no direct expenses to participants for the
administration of the Plan. Administrative fees associated with the Plan will be paid by CWI. In no
event will any discounts (including, without limitation, any discounts attributable to CWI’s
payment of brokerage commissions on behalf of the participants) on shares exceed 5% of the fair
market value of such purchased shares.

7. Taxation of Distributions. The reinvestment of distributions does not relieve the
participant of any taxes which may be payable on such distributions.

8. Stock Certificates. No stock certificates will be issued to a participant.

 

 

 

9. Voting of Shares. In connection with any matter requiring the vote of CWI
stockholders, each participant will be entitled to vote all of the whole shares held by the
participant in the Plan. Fractional shares will not be voted.

10. Absence of Liability. Neither CWI nor Phoenix American shall have any
responsibility or liability as to the value of CWI’s shares, any change in the value of, the shares
acquired for any participant’s account, or the rate of return earned on, or the value of, the
interest-bearing accounts, if any, in which distributions are invested. Neither CWI nor Phoenix
American shall be liable for any act done in good faith, or for any good faith omission to act,
including, without limitation, any claims of liability: (a) arising out of the failure to terminate
a participant’s participation in the Plan upon such participant’s death prior to the date of
receipt of such notice, and (b) with respect to the time and prices at which shares are purchased
for a participant. NOTWITHSTANDING THE FOREGOING, LIABILITY UNDER THE U.S. FEDERAL SECURITIES LAWS
CANNOT BE WAIVED. Similarly, CWI and Phoenix American have been advised that in the opinion of
certain state securities commissioners, indemnification is also considered contrary to public
policy and therefore unenforceable.

11. Termination of Participation. A participant may terminate participation in the
Plan at any time by written instructions to that effect to Phoenix American. To be effective on a
distribution payment date, the notice of termination and termination fee must be received by
Phoenix American at least 15 days before that distribution payment date. Upon receipt of notice of
termination from the participant, Phoenix American may also terminate any participant’s account at
any time in its discretion by notice in writing mailed to the participant.

12. Amendment, Supplement, Termination and Suspension of Plan. This Plan may be
amended, supplemented or terminated by CWI at any time by the delivery of written notice to each
participant at least 10 days prior to the effective date of the amendment, supplement or
termination. Any amendment or supplement shall be effective as to the participant unless, prior to
its effective date, Phoenix American receives written notice of termination of the participant’s
account. Amendment may include an appointment by CWI or Phoenix American with the approval of CWI
of a successor agent, in which event such successor shall have all of the rights and obligations of
Phoenix American under this Plan. CWI may suspend the Plan at any time without notice to the
participants.

13. Governing Law. This Plan and the authorization card signed by the participant
(which is deemed a part of this Plan) and the participant’s account shall be governed by and
construed in accordance with the laws of the State of Maryland provided that the foregoing choice
of law shall not restrict the application of any state’s securities laws to the sale of shares to
its residents or within such state. This Agreement cannot be changed orally.

 

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