Document:

Exhibit
10.2

 

 

NON-QUALIFIED STOCK OPTION AGREEMENT

2003 LONG-TERM INCENTIVE PLAN

 

Optionee’s Name

Optionee’s Address

Grant Date

Number of Options Granted

Option Price

Aggregate Option Price

 

1.                                       The
Option.  Medtronic, Inc., a Minnesota
corporation (the “Company”), hereby grants to the individual named above (the “Optionee”),
as of the above Grant Date, an option (the “Option”) to purchase the above
number of shares of common stock of the Company (the “Common Stock”), for the
above Option Price Per Share, on the terms and conditions set forth in this
Non-Qualified Stock Option Agreement (this “Agreement”) and in the Medtronic,
Inc. 2003 Long-Term Incentive Plan (the “Plan”).  In the event of any inconsistency between the
terms of the Agreement and the Plan, the terms of the Plan shall govern.  Capitalized terms not defined in this
Agreement shall have the meanings ascribed to them in the Plan.

 

2.                                       Exercise
of Option.  The exercise of the
Option is subject to the following conditions and restrictions:

 

(a)                                  Expiration.  The Option may be exercised in whole or in
part, from time to time, during the period commencing on the Grant Date and
ending on the earlier of (i) the above Expiration Date, or (ii) the expiration
of the applicable period following your termination of employment with the
Company or one of its subsidiaries, as provided in Section 2(f) below.

 

(b)                                 Schedule of Exercisability.  The Option shall be 100% vested and
exercisable commencing on the Grant Date.

 

(c)                                  Death.  If your employment with the Company
terminates due to your death, the unexercised portion of the Option will
continue to be exercisable until the Expiration Date, and may be exercised by
your Successor (as defined below) at any time, or from time to time, until such
Expiration Date.  For purposes of this
Agreement, the term “Successor” shall mean the legal representative of your
estate or the person or persons who may, by bequest or inheritance, or valid
beneficiary designation (as provided in Section 15 of the Plan), acquire the right to exercise the Option.

 

(d)                                 Disability or Retirement.  If your employment with the Company
terminates due to your Disability or Retirement (as each such term is defined
below), you may exercise your Option at any time, or from time to time, until
the Expiration Date.  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.

 

(e)                                  Job Elimination.  If your employment terminates by reason of
Job Elimination, the unexercised portion of the Option will continue to be
exercisable until the Expiration Date. 
For purposes of this Section 2(e), “Job Elimination” shall mean
termination of your employment due to facility closure, layoff or other
broad-based termination of employment effected for business purposes.

 

(f)                                    Termination for Any Other Reason.  In the event your employment with
the Company terminates for any reason other than those specified in Sections
2(c),  2(d), and
2(e), you may exercise the unexercised portion of the Option for thirty (30)
days following the date of termination of your employment.  At 11:00 p.m.CT (midnight ET) on the date 30
days after the date of termination of your employment, the Option will expire.

 

(g)                                 Expiration
of Term.  Notwithstanding the
foregoing paragraphs (a)-(f), in no event shall the Option be exercisable after
the Expiration Date.

 

3.                                       Manner of Exercise.  To
exercise your Option, you must deliver notice of exercise (the “Notice”) to UBS
Financial Services.  The Notice must
specify the number of shares of Common Stock (the “Shares”) as to which the
Option is being exercised and must be accompanied by payment of the purchase
price for the Shares in cash, check, or by the 

 

 

delivery of Common Stock already
owned by the Optionee, or by a combination thereof, pursuant to such forms and
subject to such conditions as may be prescribed from time to time by the
Committee.

 

Exercise shall be deemed to occur on the earlier of
the date the Notice and option cost payment are received by UBS Financial
Services or the date you simultaneously exercise the Option and sell the
shares, using the proceeds from such sale to pay the purchase price.

 

4.                                       Withholding Taxes.  You
are responsible for payment of any federal, state, local or other taxes which
must be withheld upon the exercise of the Option, and you must promptly pay to
the Company any such taxes.  The Company
and its subsidiaries are authorized to deduct from any payment owed to you any
taxes required to be withheld with respect to the Shares, including social
security and Medicare (FICA) taxes and federal, state and local income tax with
respect to income arising from the exercise of the Option.  The Company shall have the right to require
the payment of any such taxes before issuing any Shares pursuant to an exercise
of the Option.  In lieu of all or any
part of a cash payment, you may elect to have a portion of the Shares otherwise
issuable upon exercise of the Option withheld by the Company to satisfy all or
part of the withholding tax requirements relating to the Option exercise with
such Shares valued in the same manner as used in computing such withholding
taxes.  Any fractional share amount due
relating to such tax withholding will be rounded up to the nearest whole share
and the additional amount will be added to your federal withholding.

 

5.                                       Transferability.  Upon
prior written approval of the Corporate Secretary of the Company, in his or her
discretion, this Option may be transferred to a member of your “immediate
family” (as such term is defined in Rule 16a-1(e) promulgated under the
Exchange Act, or any successor rule or regulation) or to one or more trusts
whose beneficiaries are members of your “immediate family” or  partnerships in which such family members are
the only partners; provided, however, that (1) you receive no consideration for
the transfer and (2) the transferred Option shall continue to be subject to the
same terms and conditions as were applicable to such Option immediately prior
to its transfer.

 

6.                                       Conversion to Stock-Settled Stock Appreciation Rights.  At any time following the Grant
Date, the Company may convert this Option to a stock-settled Stock Appreciation
Right.  Upon exercise of a Stock
Appreciation Right, you shall receive Common Stock with a value equal to the
excess of the Fair Market Value of the Shares on the date of exercise over the
aggregate of (a) the Option Price Per Share multiplied by the number of Shares
and (b) the amount of any taxes required to be withheld as a result of such
exercise.

 

7.                                       Agreement.  Your
receipt of the Option and this Agreement constitutes your agreement to be bound
by the terms and conditions of this Agreement and the Plan.

 

Shareholder Services, MS LC 310

Medtronic, Inc.

710 Medtronic Parkway

Minneapolis, MN 55432

(763.505.3030)Exhibit 10.3

 

 

RESTRICTED STOCK AWARD AGREEMENT 

2003 LONG-TERM INCENTIVE PLAN

 

Name 

Address

Number of shares of
common stock

Grant Date 

Vesting Date

 

1.                                      Restricted
Stock Award.  Medtronic, Inc., a
Minnesota corporation (the “Company”), hereby awards to the individual named
above shares of Common Stock of the Company, which is subject to the
restrictions, limitations, and conditions contained in this Restricted Stock
Award Agreement (this “Agreement”) and in the Medtronic, Inc. 2003 Long-Term
Incentive Plan (the “Plan”).  In the
event of any inconsistency between the terms of the Agreement and the Plan, the
terms of the Plan will govern. 
Capitalized terms not defined in this Agreement shall have the meanings
ascribed to them in the Plan.

 

2.                                       Restricted Stock Period.  The Restricted Stock Period is
four years, and at the end of this period, if you have been continuously
employed by the Company or any Affiliate and all other conditions and
restrictions are met, the stock under the Award will become yours free of all
restrictions (i.e., will “vest”), on a 100% cliff vesting basis, as of the
Vesting Date indicated above.  During the
Restricted Stock Period, the Restricted Stock is subject to the restrictions,
conditions, and limitations described in this Agreement and the Plan.   In the case of your death, Disability or
Retirement, you shall be entitled to receive that number of shares of
Restricted Stock under the Award that has been pro rated for the portion of the
Restricted Stock Period during which you were employed by the Company or any
Affiliate, and with respect to such shares of Common Stock, all restrictions
shall lapse.  Upon termination of your
employment for any reason other than death, Disability or Retirement, any
shares of Restricted Stock whose restrictions have not lapsed 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.                                       Change in Control.  Upon the occurrence of a Change in Control,
all restrictions with respect to shares of Restricted Stock shall lapse.

 

4.                                       Forfeitures.  If you have received or been entitled to
receive payment in cash, delivery of Common Stock or a combination thereof
pursuant to an Award within the period beginning six months prior to your
termination of employment with the Company or its Affiliates and ending when
the Award terminates or is canceled, the Company, in its sole discretion, may
require you to return or forfeit the cash and/or Common Stock received or
receivable with respect to the Award, in the event you are involved in any of
the following occurrences:  performing
services for or on behalf of a competitor of, or otherwise competing with, the
Company or any Affiliate, unauthorized disclosure of material proprietary
information of the Company or any Affiliate, a violation of applicable business
ethics policies or business policies of the Company or any Affiliate, or any
other occurrence determined by the Committee. 
The Company’s right to require forfeiture must be exercised not later
than 90 days after discovery of such an occurrence but in no event later than
15 months after your termination of employment with the Company and its
Affiliates.  Such right shall be deemed
to be exercised upon the Company’s mailing written notice to you of such
exercise at 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 4 by terminating any Award.  If you fail or refuse to forfeit the cash
and/or Common Stock demanded by the Company (adjusted for any intervening stock
splits), 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 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.

5.                                       Rights
of Shareholders.  As a recipient
of Restricted Stock, you will have the rights of a shareholder of Common Stock,
including the right to receive dividends and to vote such stock, at the time
you are awarded the Restricted Stock. 
Shares representing the Restricted Stock will be issued and held in
custody by the Company for you.  All
rights as a shareholder with respect to the Restricted Stock will cease, and
your Restricted Stock will be forfeited, upon termination of your rights to
such stock as provided in paragraph 2 or 4 above or pursuant to the provisions
of the Plan.  Upon such termination, the
Restricted Stock shares shall be canceled by the Company.

 

6.                                       Restrictive
Legend.   Each certificate
representing shares of the Restricted Stock will contain a statement
substantially as follows:

 

“The
shares represented by this certificate are subject to a risk of forfeiture and
other restrictions, conditions, and limitations, including restrictions on
transferability, as more particularly described in the Medtronic, Inc. 2003
Long-Term Incentive Plan and Restricted Stock Award Agreement covering such
shares.  Such Plan and Agreement are
available for inspection at the principal office of Medtronic, Inc.”

 

Failure to include this statement on any of the Restricted
Stock certificates will not invalidate or waive the restrictions, limitations,
or conditions contained in this Agreement and the Plan.

 

7.                                       Withholding
Taxes.  You are responsible for
any federal, state, local or other taxes due upon vesting of the Restricted
Stock, and you must promptly pay to the Company any such taxes.  The Company and its subsidiaries are
authorized to deduct from any payment to you any taxes required to be withheld
with respect to the Restricted  Stock. As described in Section 4(e) of
the Plan, you may elect to have a portion of the vested Restricted Stock
withheld by the Company to satisfy all or part of the withholding tax
requirements relating to the Restricted Stock. 
Any fractional share amount due relating to such tax withholding will be
rounded up to the nearest whole share and the additional amount will be added
to your federal withholding.

 

8.                                       No
Employment Contract.  Nothing
contained in the Plan or in this Agreement shall create any right to your
continued employment or otherwise affect 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.                                       Agreement.  Your receipt of the Award and this
Agreement constitutes your agreement to be bound by the terms and conditions of
this Agreement and the Plan.

 

Linked to the electronic
Agreement are the Plan and the Plan Summary (prospectus) for your review.  You may also view and print these documents
from UBS’s Internet website, Shareholder Services’ intranet website or request
written copies by contacting Shareholder Services at 763.505.3030.

 

Shareholder Services, LC310

Medtronic, Inc.

710 Medtronic Parkway

Minneapolis, MN  55432-5604

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