Document:

Form of Restricted Stock Award Notice

 Exhibit 10.4 
  
 HEALTH MANAGEMENT ASSOCIATES, INC. 
 1996 EXECUTIVE INCENTIVE COMPENSATION PLAN 
 AWARD NOTICE 
  

							
	 	 	Grantee:	 	[Name of Grantee]	 	 
				
	 	 	Type of Award:	 	Restricted Stock Award	 	 
				
	 	 	Number of Shares:	 	[No. of Shares]	 	 
				
	 	 	Date of Grant:	 	[Grant Date]	 	 

  
 1. Grant of
Restricted Stock. This Award Notice serves to notify you that the Compensation Committee (the “Committee”) of the Board of Directors of Health Management Associates, Inc. (“HMA”) hereby grants to you, under HMA’s 1996
Executive Incentive Compensation Plan (the “Plan”), a restricted stock award (the “Award”), on the terms and conditions set forth in this Award Notice and the Plan, for the number of shares of HMA’s Class A Common
Stock, par value $.01 per share (the “Common Stock”) set forth above. The Plan is incorporated herein by reference and made a part of this Award Notice. A copy of the Plan is available from HMA’s Human Resources Department upon
request. You should review the terms of this Award Notice and the Plan carefully. The capitalized terms used and not defined in this Award Notice are defined in the Plan. 
  
 2. Restrictions and Vesting. Subject to the terms set forth in this Award Notice and the Plan, provided you are still
an Eligible Person at that time, this Award will vest as follows: 
  

	 	(a)	A maximum of one-fourth of the total number of shares of Common Stock represented by this Award Notice (the “Maximum Annual Eligible Shares”) will be eligible to vest as
of the conclusion of each Grant Year based upon the achievement by the Company of the Performance Requirements described below. Any fractional share resulting from such pro-ration shall vest as of the conclusion of the fourth Grant Year.

  

	 	(b)	As of the conclusion of each Grant Year, 25% of the Maximum Annual Eligible Shares will vest upon the achievement by HMA during such concluded Grant Year of each of the Performance
Requirements. In the event that all or any portion of the Maximum Annual Eligible Shares do not vest because one or more of the Performance Requirements are not met for a Grant Year, the unvested portion shall be forfeited and shall not carry over
to any subsequent Grant Year. By way of example only, if an Award relates to a total of 40,000 shares of Common Stock, the Maximum Annual Eligible Shares for each Grant Year is 10,000 shares of Common Stock. If HMA achieves two of the four
Performance Requirements in the second Grant Year, a total of 5,000 Maximum Annual Eligible Shares will vest as of the conclusion of the second Grant Year, and the remaining 5,000 Maximum Annual Eligible Shares that do not vest upon the conclusion
of the second Grant Year will be forfeited. 

	 	(c)	In the event of your death, the termination of your employment with HMA or any subsidiary prior to the conclusion of the third Grant Year, or if you are otherwise not an Eligible
Person prior to the conclusion of the third Grant Year, the unvested portion of the Award as of the date of your death or such termination, or upon you otherwise failing to be an Eligible Person, shall be forfeited. 

  

	 	(d)	The following terms have the meanings set forth in this Section 2(d): 

  

	 	  	“Average Stock Price” means, with respect to any Grant Year, the average of the Sales Prices of the Common Stock of HMA for the 30 consecutive trading days immediately
prior to the last day of such Grant Year. 

  
 “First Grant Year” means the fiscal year of HMA during which the Date of Grant occurs. 
  
 “Grant Year” means each of the First Grant Year and each Subsequent Grant Year. 
  
 “Performance Requirements” means collectively, the Pre-Tax Earnings Requirement, the Return on Equity Requirement,
the Revenue Requirement and the Stock Price Requirement. 
  
 “Pre-Tax Earnings Requirement” means (i) with respect to the First Grant Year, an increase of [    ]% in HMA’s income before income taxes for such First Grant Year over HMA’s income before income
taxes for the immediately preceding fiscal year, as reflected on the audited financial statements of HMA for the First Grant Year, and (ii) with respect to each Subsequent Grant Year, a percentage increase (in an amount determined as described
below) in HMA’s income before income taxes for such Subsequent Grant Year over HMA’s income before income taxes for the immediately preceding fiscal year, as reflected on the financial statements of HMA for the relevant Subsequent Grant
Year. With respect to each Subsequent Grant Year, the percentage increase in HMA’s income before income taxes necessary to satisfy the Pre-Tax Earnings Requirement in any Subsequent Grant Year shall be determined by the Committee and
communicated to you in writing within ninety (90) days following the commencement of the relevant Subsequent Grant Year and, if not so determined and communicated within such ninety (90) day period, shall equal the percentage increase
applicable for the most recently completed Grant Year. 
  
 “Return on Equity” means a fraction, the numerator of which is the net income of HMA for the relevant Grant Year and the denominator of which is the average of the stockholders’ equity of HMA on the first and last days of
such Grant Year, each as reflected on the audited financial statements of HMA for the relevant Grant Year. 
  
 “Return on Equity Requirement” means (i) with respect to the First Grant Year, an increase of [    ]% in HMA’s
Return on Equity for such First Grant Year over HMA’s Return on Equity for the immediately preceding fiscal year, as determined by the Committee based upon the audited financial statements of HMA for the First Grant 
  

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 Year, and (ii) with respect to each Subsequent Grant Year, a percentage increase (in an amount
determined as described below) in HMA’s Return on Equity for such Subsequent Grant Year over HMA’s Return on Equity for the immediately preceding fiscal year, as reflected on the financial statements of HMA for the relevant Subsequent
Grant Year. With respect to each Subsequent Grant Year, the percentage increase in HMA’s Return on Equity necessary to satisfy the Return on Equity Requirement in any Subsequent Grant Year shall be determined by the Committee and communicated
to you in writing within ninety (90) days following the commencement of the relevant Grant Year and, if not so determined and communicated within such ninety (90) day period, shall equal the percentage increase applicable for the most
recently completed Grant Year. 
  
 “Revenue
Requirement” means (i) with respect to the First Grant Year, an increase of [    ]% in HMA’s net patient service revenue for such First Grant Year over HMA’s net patient service revenue for the immediately
preceding fiscal year, as reflected on the audited financial statements of HMA for the First Grant Year, and (ii) with respect to each Subsequent Grant Year, a percentage increase (in an amount determined as described below) in HMA’s net
patient service revenue for such Subsequent Grant Year over HMA’s net patient service revenue for the immediately preceding fiscal year, as reflected on the financial statements of HMA for the relevant Subsequent Grant Year. With respect to
each Subsequent Grant Year, the percentage increase in HMA’s net patient service revenue necessary to satisfy the Revenue Requirement in any Subsequent Grant Year shall be determined by the Committee and communicated to you in writing within
ninety (90) days following the commencement of the relevant Subsequent Grant Year and, if not so determined and communicated within such ninety (90) day period, shall equal the percentage increase applicable for the most recently completed
Grant Year. 
  
 “Sales Price” of the Common Stock on
any date means the closing per share sale price (or, if no closing sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the average bid and average ask prices) on such date as reported in
the composite transactions for the principal United States securities exchange on which the Common Stock is traded or, if the Common Stock is not listed on a United States national or regional securities exchange, as reported by the National
Association of Securities Dealers Automated Quotation System. In the absence of such quotations, the Committee shall be entitled to determine the Sales Price on the basis of such quotations as it considers appropriate. 
  
 “Stock Price Requirement” means (i) with respect to the First
Grant Year, an increase of [    ]% in HMA’s Average Stock Price for such First Grant Year over HMA’s Average Stock Price for the immediately preceding fiscal year, as determined by the Committee, and (ii) with
respect to each Subsequent Grant Year, a percentage increase (in an amount determined as described below) in HMA’s Average Stock Price for such Subsequent Grant Year over HMA’s Average Stock Price for the immediately preceding fiscal year,
as determined by the Committee. With respect to each Subsequent Grant Year, the percentage increase in HMA’s Average Stock Price necessary to satisfy the Stock Price 
  

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 Requirement in any Subsequent Grant Year shall be determined by the Committee and communicated to you in
writing within ninety (90) days following the commencement of the relevant Subsequent Grant Year and, if not so determined and communicated within such ninety (90) day period, shall equal the percentage increase applicable for the most
recently completed Grant Year. 
  
 “Subsequent Grant
Year” means each of the first, second and third fiscal years of HMA following the conclusion of First Grant Year. 
  
 3. Effect of Change In Control. Upon the occurrence of a Change In Control of HMA, your rights will be determined in accordance with Section 9
of the Plan. 
  
 4. Nature of Award. The Award will
initially be evidenced by book-entry registration only, without the issuance of a certificate representing the shares of Common Stock underlying the Award. This Award is intended to constitute a Performance Award under Article 8 of the Plan and
shall be interpreted and administered by the Committee consistent with this intention. 
  
 5. Book Entry Registration; Issuance of Shares. Subject to Section 9 of this Award Notice, upon the written determination by the Committee of the achievement of Performance Requirements and the vesting of
any shares subject to this Award pursuant to this Award Notice, HMA shall issue a certificate representing such vested shares of Common Stock as promptly as practicable following the date of vesting and written determination by the Committee of the
achievement of Performance Requirements. The shares of Common Stock may be issued during your lifetime only to you, or after your death to your designated beneficiary, or, in the absence of such beneficiary, to your duly qualified personal
representative. 
  
 6. Nonassignability. The shares of
Common Stock underlying the Award may not, except as otherwise provided in the Plan, be sold, assigned, transferred, pledged, hypothecated, margined or otherwise encumbered in any way prior to the vesting of such shares, whether by operation of law
or otherwise, except by will or the laws of descent and distribution. After vesting, the sale or other transfer of the shares of Common Stock shall be subject to applicable laws and regulations under the Securities Act of 1933. 
  
 7. Rights as a Stockholder. Prior to the vesting of the shares of
Common Stock awarded under this Award Notice, you will have all of the other rights of a stockholder with respect to the shares of Common Stock so awarded, including, but not limited to, the right to receive such dividends, if any, as may be
declared on such shares from time to time and the right to vote (in person or by proxy) such shares at any meeting of HMA’s stockholders. Notwithstanding the foregoing, dividends paid with respect to those shares of Common Stock awarded under
this Award Notice that have not vested at the time of such dividend payment shall be held in the custody of HMA (pursuant to a rabbi trust, escrow or similar arrangement) and shall be subject to the same restrictions that apply to the shares of
Common Stock subject to an Award with respect to which the dividends are issued. Any such dividends will be paid to you, with interest, only when, and if, such shares of Common Stock subject to an Award shall become vested in accordance with this
Award Notice. 
  

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 8. Rights of HMA and Subsidiaries. This Award Notice does not affect the right of HMA or any of
its Subsidiaries to take any corporate action whatsoever, including without limitation its right to recapitalize, reorganize or make other changes in its capital structure or business, merge or consolidate, issue bonds, notes, shares of Common Stock
or other securities, including preferred stock, or options therefor, dissolve or liquidate, or sell or transfer any part of its assets or business. 
  
 9. Restrictions on Issuance of Shares. If at any time HMA determines that the listing, registration or qualification of the shares of Common Stock
underlying the Award upon any securities exchange or under any state or federal law, or the approval of any governmental agency, is necessary or advisable as a condition to the issuance of a certificate representing any vested shares of Common Stock
under this Award Notice, such issuance may not be made in whole or in part unless and until such listing, registration, qualification or approval shall have been effected or obtained free of any conditions not acceptable to HMA. 
  
 10. Plan Controls. The Award is subject to all of the provisions of
the Plan, which is hereby incorporated by reference, and is further subject to all the interpretations, amendments, rules and regulations that may from time to time be promulgated and adopted by the Committee pursuant to the Plan. In the event of
any conflict among the provisions of the Plan and this Award Notice, the provisions of the Plan will be controlling and determinative. 
  
 11. Amendment. Except as otherwise provided by the Plan, HMA may only alter, amend or terminate the Award with your consent. 
  
 12. Governing Law. This Award Notice shall be governed by and
construed in accordance with the laws of the State of Delaware, except as superseded by applicable federal law, without giving effect to its conflicts of law provisions. 
  

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 ACKNOWLEDGEMENT 
  
 The undersigned acknowledges receipt of, and understands and agrees to be bound by, this Award Notice and the Plan. The undersigned further acknowledges
(i) that this Award Notice and the Plan set forth the entire understanding between him or her and HMA regarding the restricted stock award granted by this Award Notice, (ii) that this Award Notice and the Plan supercede all prior oral and
written agreements on that subject, and (iii) that cash dividends paid with respect to the shares of Common Stock subject to Awards will be held in the custody of the Company in the manner set forth in Section 7 hereof. 
  

			
	Dated:	 	  

	
	  

	Name: [Name of Grantee]

  

 6Form of Trust Agreement

 Exhibit 10.5 
  
 TRUST UNDER 
 HEALTH MANAGEMENT ASSOCIATES, INC. 
 1996 EXECUTIVE INCENTIVE COMPENSATION PLAN 
  
 This Trust Agreement (this “Agreement”) is made this [date], by
Health Management Associates, Inc. (the “Company” and the “Trustee”), on behalf of itself and as trustee of the trust established by this Agreement. 
  
 WHEREAS, the Company has adopted the 1996 Executive Incentive Compensation Plan, and has granted awards of restricted stock
thereunder (the “Awards”); and 
  
 WHEREAS, the Awards
provide that any dividends paid by the Company on the shares of stock underlying such Awards during the applicable restriction period thereunder shall be held in escrow or trust and subject to the same restrictions as the underlying shares of the
Awards; and 
  
 WHEREAS, the Company wishes to establish a trust
(the “Trust”) and to contribute to the Trust assets that shall be held therein, subject to the claims of the Company’s creditors in the event of the Company’s Insolvency (as herein defined) until paid to Award participants or
their beneficiaries in such manner and at such times as specified in the Awards; and 
  
 WHEREAS, it is the intention of the parties that this Trust shall constitute an unfunded arrangement and shall not affect the status of the escrow of dividends under the Awards as an unfunded plan maintained for the
purpose of providing deferred compensation for a select group of management or highly compensated employees for purposes of Title I of the Employee Retirement Income Security Act of 1974; and 
  
 WHEREAS, it is the intention of the Company to make contributions to the
Trust to provide itself with a source of funds to assist it in the meeting of its liabilities under the Awards; 
  
 NOW, THEREFORE, the parties do hereby establish the Trust and agree that the Trust shall be comprised, held and disposed of as follows: 
  
 Section 1. Establishment of Trust. 
  
 (a) The Company hereby deposits with the Trustee in trust $100, which shall
become the principal of the Trust to be held, administered and disposed of by the Trustee as provided in this Agreement. 
  
 (b) The Trust hereby established shall be revocable by the Company. 
  
 (c) The Trust is intended to be a grantor trust, of which the Company is the grantor, within the meaning of subpart E, part
I, subchapter J, chapter 1, subtitle A of the Internal Revenue Code of 1986, as amended, and shall be construed accordingly. 
  
 (d) The principal of the Trust, and any earnings thereon shall be held separate and apart from other funds of the Company and shall be used exclusively
for the uses and 

 
purposes of Award participants and general creditors as herein set forth. Award participants and their beneficiaries shall have no preferred claim on, or any
beneficial ownership interest in, any assets of the Trust. Any rights created under the Awards or this Agreement shall be mere unsecured contractual rights of Award participants and their beneficiaries against the Company. Any assets held by the
Trust will be subject to the claims of the Company’s general creditors under federal and state law in the event of Insolvency, as defined in Section 3(a) hereof. 
  
 (e) The Company, in its sole discretion, may at any time, or from time to time, make additional deposits of cash or other
property in trust with the Trustee to augment the principal to be held, administered and disposed of by the Trustee as provided in this Agreement. Except as otherwise provided by the Awards, neither the Trustee, nor any Award participant or his or
her beneficiaries shall have any right to compel such additional deposits. 
  
 Section 2. Payments to Award Participants and Their Beneficiaries. 
  
 (a) The Company shall deliver to the Trustee a schedule (the “Payment Schedule”) that indicates the amounts payable in respect of each Award
participant (and his or her beneficiaries), or other instructions acceptable to the Trustee for determining the amounts so payable, the form in which such amount is to be paid (as provided for or available under the Awards), and the time for payment
of such amounts. Except as otherwise provided herein, the Trustee shall make payments to the Award participants and their beneficiaries in accordance with such Payment Schedule. The Trustee shall make provision for the reporting and withholding of
any federal, state or local taxes that may be required to be withheld with respect to the payment of benefits pursuant to the terms of the Awards and shall pay amounts withheld to the appropriate taxing authorities or determine that such amounts
have been reported, withheld and paid by the Company. 
  
 (b) The
entitlement of an Award participant or his or her beneficiaries to benefits under the Awards shall be determined by the Company or such party as it shall designate under the Awards. 
  
 (c) The Company may make payment of benefits directly to Award participants or their beneficiaries as they become due under
the terms of the Awards. The Company shall notify the Trustee of its decision to make payment of benefits directly prior to the time amounts are payable to participants or their beneficiaries. In addition, if the principal of the Trust, and any
earnings thereon, are not sufficient to make payments of benefits in accordance with the terms of the Awards, the Company shall make the balance of each such payment as it falls due. The Trustee shall notify the Company where principal and earnings
are not sufficient. 
  
 Section 3. Trustee Responsibility When
Company Insolvent. 
  
 (a) The Trustee shall cease payment of
benefits to Award participants and their beneficiaries if the Company is Insolvent. The Company shall be considered “Insolvent” for purposes of this Agreement if (i) the Company is unable to pay its debts as they become due, or
(ii) the Company is subject to a pending proceeding as a debtor under the United States Bankruptcy Code. 
  

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 (b) At all times during the continuance of this Trust, as provided in Section 1(d) hereof, the
principal and income of the Trust shall be subject to claims of general creditors of the Company under federal and state law as set forth below. 
  
 (1) The Board of Directors of the Company shall have the duty to inform the Trustee in writing of the Company’s Insolvency. If a person claiming to
be a creditor of the Company alleges in writing to the Trustee that the Company has become Insolvent, the Trustee shall determine whether the Company is Insolvent and, pending such determination, the Trustee shall discontinue payment of benefits to
Award participants or their beneficiaries. 
  
 (2) Unless the
Trustee has actual knowledge of the Company’s Insolvency, or has received notice from the Company or a person claiming to be a creditor alleging that the Company is Insolvent, the Trustee shall have no duty to inquire whether the Company is
Insolvent. The Trustee may in all events rely on such evidence concerning the Company’s solvency as may be furnished to the Trustee and that provides the Trustee with a reasonable basis for making a determination concerning the Company’s
solvency. 
  
 (3) If at any time the Trustee has determined that
the Company is Insolvent, the Trustee shall discontinue payments to Award participants or their beneficiaries and shall hold the assets of the Trust for the benefit of the Company’s general creditors. Nothing in this Agreement shall in any way
diminish any rights of Award participants or their beneficiaries to pursue their rights as general creditors of the Company with respect to benefits due under the Awards or otherwise. 
  
 (4) The Trustee shall resume the payment of benefits to Award participants or their beneficiaries in accordance with
Section 2 hereof only after the Trustee has determined that the Company is not Insolvent (or is no longer Insolvent). 
  
 (c) Provided that there are sufficient assets, if the Trustee discontinues the payment of benefits from the Trust pursuant to Section 3(b) hereof and
subsequently resumes such payments, the first payment following such discontinuance shall include the aggregate amount of all payments due to Award participants or their beneficiaries under the terms of the Awards for the period of such
discontinuance, less the aggregate amount of any payments made to Award participants or their beneficiaries by the Company in lieu of the payments provided for hereunder during any such period of discontinuance. 
  
 Section 4. Investment Authority. The Trustee may invest in securities
(including stock or rights to acquire stock) or obligations issued by the Company. All rights associated with assets of the Trust shall be exercised by the Trustee or the person designated by the Trustee, and shall in no event be exercisable by or
rest with Award participants. The Company shall have the right at anytime, and from time to time in its sole discretion, to substitute assets of equal fair market value for any asset held by the Trust. This right is exercisable by the Company in a
nonfiduciary capacity without the approval or consent of any person in a fiduciary capacity. 
  
 Section 5. Disposition of Income. During the term of this Trust, all income received by the Trust, net of expenses and taxes, shall be accumulated and reinvested. 
  

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 Section 6. Responsibility of Trustee. 
  
 (a) The Trustee shall have, without exclusion, all powers conferred on
trustees by applicable law, unless expressly provided otherwise herein, provided, however, that if an insurance policy is held as an asset of the Trust, the Trustee shall have no power to name a beneficiary of the policy other than the Trust, to
assign the policy (as distinct from conversion of the policy to a different form) other than to a successor Trustee, or to loan to any person the proceeds of any borrowing against such policy. 
  
 (b) Notwithstanding any powers granted to the Trustee pursuant to this
Agreement or to applicable law, the Trustee shall not have any power that could give this Trust the objective of carrying on a business and dividing the gains therefrom, within the meaning of Section 301.7701–2 of the Treasury Regulations.

  
 Section 7. Resignation and Removal of Trustee.

  
 (a) The Trustee may resign at any time by written notice to
the Company, which shall be effective 30 days after receipt of such notice unless the Company and the Trustee agree otherwise. 
  
 (b) Upon resignation of the Trustee and appointment of a successor Trustee, all assets shall subsequently be transferred to the successor Trustee. The
transfer shall be completed within 30 days after receipt of notice of resignation unless the Company extends the time limit. 
  
 (c) If the Trustee resigns, a successor shall be appointed by the effective date of resignation under Section 6(a) hereof. If no such appointment has
been made, the Trustee may apply to a court of competent jurisdiction for appointment of a successor or for instructions. All expenses of the Trustee in connection with the proceeding shall be allowed as administrative expenses of the Trust.

  
 Section 8. Amendment or Termination. 
  
 (a) This Agreement may be amended by a written instrument executed by the
Trustee and the Company. 
  
 (b) The Trust shall not terminate
until the date on which Award participants and their beneficiaries are no longer entitled to benefits pursuant to the terms of the Awards, unless sooner revoked in accordance with Section 1(b) hereof. Upon termination of the Trust any assets
remaining in the Trust shall be returned to the Company. 
  
 (c)
Upon written approval of participants or beneficiaries entitled to payment of benefits pursuant to the terms of the Awards, the Company may terminate the Trust prior to the time all benefit payments under the Awards have been made. All assets in the
Trust at termination shall be returned to the Company. 
  

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 Section 9. Miscellaneous. 
  
 (a) Any provision of this Agreement prohibited by law shall be ineffective to the extent of any such prohibition, without
invalidating the remaining provisions hereof. 
  
 (b) Benefits
payable to Award participants and their beneficiaries under this Agreement may not be anticipated, assigned (either at law or in equity), alienated, pledged, encumbered or subjected to attachment, garnishment, levy, execution or other legal or
equitable process. 
  
 (c) This Agreement shall be governed by and
construed in accordance with the laws of the State of New York. 
  
 Section 10. Effective Date. The effective date of this Agreement shall be [date]. 
  
 IN WITNESS WHEREOF, this Agreement has been duly executed by the party hereto as of the day and year first above written. 
  

			
	HEALTH MANAGEMENT ASSOCIATES, INC.
	as the Company and as the Trustee
		
	By:	 	  

	Name:	 	 
	Its:	 	 

  

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