Document:

exhibit10_37.htm

    
      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)  

              	
                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.

                 

              

      

      
        	
                (b)  

              	
                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.

              

      

      

      
        	
                (c)  

              	
                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).

                 

              

      

      
        	
                (d)  

              	
                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.

                 

              

      

      
        	
                (e)  

              	
                Effect
                  of Conduct Constituting Cause; Termination of Employment or Service;
                  or
                  Change in Control.

                 

              

      

      
        	
                (i)
                    

              	
                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. 

                 

              

      

      
        	
                (ii)
                    

              	
                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.
                  

                 

              

      

      
        	
                (iii)
                    

              	
                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.

                 

              

      

      
        	
                (iv)
                    

              	
                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.
                  

                 

              

      

      
        	
                (f)  

              	
                Taxes
                  In Connection With the
                  Grant or Vesting of the Award.

                 

              

      

      
        	
                (i)
                    

              	
                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. 

                 

              

      

      
        	
                (ii)
                    

              	
                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. 

                 

              

      

      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:

              	
                Kinetic
                  Concepts, Inc. 

              

      

      
        	
                 

              	
                Attn.:
                  Chief Financial Officer 

              

      

      
        	
                 

              	
                8023
                  Vantage Drive 

              

      

      
        	
                 

              	
                San
                  Antonio, TX 78230 

              

      

      
        	
                 

              	
                U.S.A.
                  

              

      

      
        	
                 

              	
                Phone:
                  1-(210) 255-6494 

              

      

      
        	
                 

              	
                Fax:
                  1-(210) 255-6997 

                 

              

      

      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)  

              	
                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;

                 

              

      

      
        	
                (b)  

              	
                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;

                 

              

      

      
        	
                (c)  

              	
                All
                  decisions with respect to future grants of Restricted Stock Units,
                  if any,
                  will be at the sole discretion of the Company;

                 

              

      

      
        	
                (d)  

              	
                Participation
                  in the Plan is voluntary;

                 

              

      

      
        	
                (e)  

              	
                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;

                 

              

      

      
        	
                (f)  

              	
                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;

                 

              

      

      
        	
                (g)  

              	
                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

                 

              

      

      
        	
                (h)  

              	
                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.

                 

              

      

      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.

              
	 	 
	 	 
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 
	 	 
	 	 
	
                GRANTEE

              
	 	 
	 	 
	 	 
	
                Signature:

              	 
	
                Name:

              	 
	
                Address:

              	 
	 	 
	
                Telephone:

              	 
	
                Social
                  Security No.:

              	 

      

      

      

      

      

      
        	
                
                

                DATE
                  OF GRANT

                
                

              	
                
                

                NUMBER
                  OF

                RESTRICTED
                  STOCK UNITSexhibit10_38.htm

    
      Exhibit
        10.38

      

      Option
        Number:                                                                                     

      Optionee
        Name:                                                                                     
        

      

      

      KINETIC
        CONCEPTS, INC.

      2004
        EQUITY PLAN

      NONQUALIFIED
        STOCK OPTION AGREEMENT

      

      THIS
        AGREEMENT (the “Option 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
“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
        [_______] Shares (the “Option Shares”) at a price of $[______] 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 surrender to 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 for any reason other than for Cause,
                  death
                  or Disability, 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 and the Option, to the extent not vested and exercisable
                  as of
                  the date of such termination, shall expire as of such date.

                 

              

      

      
        	
                (c)  

              	
                If
                  the Optionee’s employment with or service to the Company, any Subsidiary
                  or any affiliate thereof terminates by reason of the Optionee’s death or
                  Disability, any portion of the Option that is outstanding at such
                  time
                  shall become fully and immediately vested and exercisable, and
                  shall
                  expire 180 days following the date of such termination.  The
                  Option shall not be exercisable after the Expiration Date.

                 

              

      

      
        	
                (d)  

              	
                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.

                 

              

      

      
        	
                (e)  

              	
                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, unless the Option is either assumed or an equitable
                  substitution is made therefore.  In addition, if the Optionee’s
                  employment with or service to the Company, any Subsidiary or affiliate
                  thereof is terminated other than for Cause within 24 months following
                  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) 255-6494 

              

      

      
        	
                 

              	
                Fax:
                  (210) 255-6997 

                 

              

      

      If
        to the
        Optionee:              [Name
        of Optionee]

      [Address]

      ______________________

      Facsimile:
        _____________

      

      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 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 Section 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:

              	 
	
                Name:

              	 
	
                Title:

              	 
	 	 
	 	 
	
                OPTIONEE

              
	 	 
	 	 
	 	 
	
                Signature:

              	 
	
                Name:

              	 
	
                Address:

              	 
	 	 
	
                Telephone:

              	 
	
                Social
                  Security No.:

              	 

      

      

      

      

      
        	
                
                

                DATE
                  OF

                GRANT

              	
                
                

                NUMBER
                  OF

                SHARES
                  SUBJECT

                TO
                  OPTION

              	
                
                

                OPTION

                EXERCISE

                PRICE

                
                

              	
                
                

                EXPIRATION

                DATE

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