Document:

Exhibit 10.4 to Medtronic, Inc. Form 10-Q for period ended October 26, 2007

Exhibit 10.4

 

 

RESTRICTED STOCK UNIT AWARD AGREEMENT

2003 LONG-TERM INCENTIVE PLAN

 

1.         Restricted Stock Units Award. Medtronic, Inc., a Minnesota corporation (the "Company"), hereby awards to the individual named above Restricted Stock Units, in the number and at the Grant Date set forth above.  The Restricted Stock Units represent the right to receive shares of common stock of the Company (the “Shares”), subject to the restrictions, limitations, and conditions contained in this Restricted Stock Unit Award Agreement (the "Agreement") and in the Medtronic, Inc. 2003 Long-term Incentive Plan (the "Plan").  Unless otherwise defined in the Agreement, a capitalized term in the Agreement will have the same meaning as in the Plan.
  In the event of any inconsistency between the terms of the Agreement and the Plan, the terms of the Plan will govern.

 

2.         Vesting
and Distribution. The Restricted Stock Units will vest
                                                                       . The Company will issue to you a
number of Shares equal to the number of your vested Restricted Stock Units (including any dividend equivalents described in
Section 5, below) within six weeks following such vesting date, provided that you have been continuously employed by the Company
and all other conditions and restrictions are met during the period beginning on the Grant Date and ending on the vesting date
(the “Restricted Period”). [Notwithstanding the preceding sentence,] if you terminate employment during the Restricted
Period due to death, Disability or Retirement, and all other conditions and restrictions are met during the Restricted Period,
your Restricted Stock Units will vest
                                                                       , and the Company will issue you a
number of Shares equal to the number of your vested Restricted Stock Units (including any dividend equivalents described in Section 5, below) within six weeks following such vesting date. Upon
termination of your employment during the Restricted Period for any reason other than death, Disability or Retirement, the
Restricted Stock Units will automatically be forfeited in full and canceled by the Company as of 11:00 p.m. CT (midnight ET) on
the date of such termination of employment. For purposes of this Agreement, the terms “Disability” and
“Retirement” shall have the meanings ascribed to those terms under any retirement plan of the Company which is qualified
under Section 401 of the Code (which currently provides for retirement on or after age 55, provided you have been employed by the
Company and/or one or more Affiliates for at least ten years, or retirement on or after age 62), or under any disability or
retirement plan of the Company or any Affiliate applicable to you due to employment by a non-U.S. Affiliate or employment in a
non-U.S. location, or as otherwise determined by the Committee.

 

3.         Forfeitures. If you have received or are entitled to receive delivery of Shares as a result of this Restricted Stock Units  award within the period beginning six months prior to termination of your employment with the Company or any Affiliate and ending when the Restricted Stock Units award terminates or is canceled, the Company, in its sole discretion, may require you to return or forfeit the cash and/or Shares received or receivable with respect to this Restricted Stock Units award, in the event that you engage in any of the following activities:  

 

	
             
 	
            a.
 	
            performing services for or on behalf of any competitor of, or competing with, the Company or any Affiliate, within six months of the date of your termination of employment with the Company or any Affiliate;
 

	
             
 	
            b.
 	
            unauthorized disclosure of material proprietary information of the Company or any Affiliate; 
 

	
             
 	
            c.
 	
            a violation of applicable business ethics policies or business policies of the Company or any Affiliate; or 
 

	
             
 	
            d.
 	
            any other occurrence determined by the Committee.  
 

 

The Company’s right to require forfeiture must be exercised not later than 90 days after the Company acquires actual knowledge of such an activity, but in no event later than 12 months after your termination of employment with the Company or any Affiliate.  Such right shall be deemed to be exercised upon the Company’s mailing written notice of such exercise to your most recent home address as shown on the personnel records of the Company.  In addition to requiring forfeiture as described herein, the Company may exercise its rights under this Section 3 by terminating this Restricted Stock Units award.  

 

 

If you fail or refuse to forfeit the cash and/or shares of Common Stock demanded by the Company (adjusted for any events described in Section 11(a) of the Plan), you shall be liable to the Company for damages equal to the number of Shares demanded times the highest closing price per share of the Common Stock during the period between the date of termination of your employment with the Company or any Affiliate and the date of any judgment or award to the Company, together with all costs and attorneys' fees incurred by the Company to enforce this provision.  

 

4.         Change in Control. Notwithstanding anything in Section 2 to the contrary, if a Change in Control of the Company, within the meaning of both the Plan and Section 409A of the Code, occurs during the Restricted Period, and all other conditions and restrictions are met during the Restricted Period, then the Restricted Stock Units will become 100% vested upon such Change in Control and, the Company will issue to you a number of Shares equal to the number of your Restricted Stock Units (including any dividend equivalents described in Section 5, below) within six weeks following the Change in Control.      

 

5.         Dividend Equivalents. You are entitled to receive dividend equivalents on the Restricted Stock Units generally in the same manner and at the same time as if each Restricted Stock Unit were a Share. These dividend equivalents will be credited to you in the form of additional Restricted Stock Units.  The additional Restricted Stock Units will be subject to the terms of this Agreement.

 

6.         Withholding Taxes. You are responsible to promptly pay any Social Security and Medicare taxes (together, “FICA”) due upon vesting of the Restricted Stock Units, and any Federal, State, and local taxes due upon distribution of the Shares.  The Company and its subsidiaries are authorized to deduct from any payment to you any such taxes required to be withheld and will withhold a portion of the Shares issued upon conversion of the Restricted Stock Units to satisfy all or part of the withholding or employment tax requirements.  

 

7.         Limitation of Rights. Except as set forth in the Agreement, until the Shares are issued to you in settlement of your Restricted Stock Units, you do not have any right in, or with respect to, any Shares (including any voting rights) by reason of the Agreement.  Further, you may not transfer or assign your rights under the Agreement and you do not have any rights in the Company’s assets that are superior to a general, unsecured creditor of the Company by reason of the Agreement.

 

8.         No Employment Contract. Nothing contained in the Plan or Agreement creates any right to your continued employment or otherwise affects your status as an employee at will.  You hereby acknowledge that Medtronic and you each have the right to terminate your employment at any time for any reason or for no reason at all.

 

9.         Amendments to Agreement Under Section 409A of the Code. You acknowledge that the Agreement and the Plan, or portions thereof, may be subject to Section 409A of the Internal Revenue Code; that it is anticipated that comprehensive rules interpreting this Code section will be issued; and that changes may need to be made to the Agreement to avoid adverse tax consequences to you under Section 409A.  You agree that following the issuance of such rules, the Company may amend the Agreement as it deems necessary or desirable to avoid such adverse tax consequences; provided, however, that the Company shall accomplish such amendments in a manner that preserves your intended benefits under the Agreement to the greatest extent possible.

 

10.       Agreement. You agree to be bound by the terms and conditions of this Agreement and the Plan.  Your signature is not required in order to make this Agreement effective.

 

Accompanying this Agreement are instructions for accessing the Plan and the Plan Summary (prospectus) from UBS’s Internet website or HROC – Stock Administration’s intranet website.  You may also request written copies by contacting HROC – Stock Administration at 763.514.1500.

 

HROC – Stock Administration, MS V235

Medtronic, Inc.

3850 Victoria Street North

Shoreview, MN  55126-2978employmentletter.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.1                             

STRICTLY PRIVATE & CONFIDENTIAL 

VIA FEDERAL EXPRESS

	November 30, 2007

	Mr. James W. Hall

Journal Register Company

790 Township Line Road

Yardley, PA 19317

	Dear Jim:

As the Chairman of the Compensation Committee (the “Compensation Committee”) of the Board of Directors of Journal Register Company (the "Company"), I am pleased to present you with this Employment Letter outlining your compensation arrangements as the Company’s Chairman and Chief Executive Officer. This Letter is presented with the authorization of the Compensation Committee and cancels and replaces all previous employment terms, whether written or oral, between you and the Company.

	1.     	Your annual base salary will be US$675,000 effective as of November 1, 2007.
	 
	2.     	Your 2008 potential annual incentive bonus will be based on quantitative and qualitative performance criteria that will be set by the Compensation Committee with a target incentive of 100% of base salary and a potential bonus of up to 200% of your base salary. For the remainder of 2007, your incentive bonus will be determined by the Compensation Committee based on subjective performance assessments.
	 
	3.     	On each of November 30, 2007 and on or about June 1, 2008 you will be granted a stock option to purchase 250,000 shares of the Company's Common Stock, in each case, at an exercise price equal to the closing sale price of the Company's Common Stock, as quoted on New York Stock Exchange, on the date of the grant (the "Options"). Subject to the accelerated vesting provisions set forth in the Amended and Restated 1997 Stock Incentive Plan (the “Plan”), the Options will vest in two successive equal annual installments measured from the date of grant (the “Vesting Period”), subject to your continued service to the Company as an officer, director or consultant on the relevant vesting dates during the Vesting Period. The Options will each have five (5) year terms from the date of grant. The Options will be subject to the terms, definitions and provisions of the Plan.
	 
	4.     	To compensate you for certain fees and income that you would have earned as a trustee and advisor to certain boards, trusts and other entities, the Company will
	 

	Mr. James W. Hall

Page 2 of 3

12/3/2007

pay you $33,333 per month for the first twelve (12) months following the termination of your employment with the Company and $25,000 per month for the next succeeding twelve (12) months following such twelve (12) month period, provided, however, that you will be obligated to provide consulting services of up to fifteen (15) hours per month to the Company (at such times as are reasonably requested by the Company) during such two-year period at no additional cost to the Company. If you are a “specified employee” (within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code (the “Code”)) as of the date of such termination, no such payments will be made to you until the six-month anniversary of your separation from service (within the meaning of Section 409A(a)(2)(A)(i) of the Code) with the Company, at which point all payments that would otherwise have previously been made to you shall be aggregated and paid to you in a lump sum. Notwithstanding the foregoing provisions of this paragraph, this paragraph shall have no effect and shall be null and void in the event that your employment is terminated prior to June 30, 2008 due to a voluntary termination by you or a termination by the Company for cause (as defined in the Plan).

	5.     	The Company will also enter into a Change of Control Employment Agreement with you, which will be in substantially the form of the Change of Control Employment Agreement provided to certain other current executive officers of the Company.
	 
	6.     	Beginning with the 2007 taxation year, you will be given an annual tax equalization payment to compensate for the tax differential on your base salary, annual incentive bonus and the Options between the taxes you are required to pay in the United States and the hypothetical taxes you would pay in Canada, but in no event shall the tax equalization payment exceed US$37,500 per annum. You will be reimbursed for up to US$12,500 per annum for the services of an accounting firm for tax planning and to prepare your tax returns in the United States and Canada.
	 
	7.     	You will be entitled to four (4) weeks of paid vacation in accordance with the Company’s vacation policy.
	 
	8.     	You will be provided a Company owned 2007 Chevrolet Envoy or comparable vehicle for your use while employed by the Company. The Company will also provide you with leased living accommodations in proximity to the corporate headquarters not to exceed US$5,500 per month. The Company will reimburse you for travel expenses to and from your home in the Toronto area in an amount not to exceed the greater of US$6,000 per month or the standard published commercial airfare rate. From time to time it will be beneficial to the Company that your spouse travel with you to attend business functions and events. Reasonable travel expenses will be reimbursed for such occasions.
	 
	 

	 	Mr. James W. Hall

Page 3 of 3

12/3/2007

	9.     	Your period of employment shall, unless sooner terminated by the Board of Directors, be a period of one year commencing as of November 1, 2007 and ending at the close of business on the day prior to the first anniversary thereof (the “Initial Term”). The period of employment will be automatically renewed for additional consecutive one year periods (the “Extended Term”) unless you or the Company provides written notice to the other party not less than 60 days before such anniversary. In the event that your employment is terminated by the Company without cause (as defined in the Plan) prior to the end of the Initial Term or the Extended Term, as the case may be, you will be entitled to the payment of your base salary and bonus through the end of such Initial Term or Extended Term, as the case may be. If you are a “specified employee” (within the meaning of Section 409A(a)(2)(B)(i) of the Code) as of the date of such termination, the amounts payable to you prior to the six-month anniversary of your separation from service (within the meaning of Section 409A(a)(2)(A)(i) of the Code) with the Company shall be limited to the maximum amount that can be paid prior to such anniversary without triggering taxation under Section 409A of the Code, and all additional amounts that would otherwise have been paid to you prior to such anniversary shall be aggregated and paid to you in a lump sum following such anniversary.
	 

	 	 	Sincerely, 
	 
	 	 	/s/ JOSEPH A. LAWRENCE 
	 
	 	 	Joseph A. Lawrence 
	 	 	Chairman of the Compensation 
	 	 	Committee 
	 
	 
	Agreed and Accepted: 	 	 
	 
	 
	/s/ JAMES W. HALL 	 	 
	

		
	James W. Hall 	 	 
	November 30, 2007

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