Document:

SSRG-EX10.7_2014 Q4

EXHIBIT 10.7

RESTRICTED STOCK AND CASH INCENTIVE
AGREEMENT - EXECUTIVE OFFICER 
 
THIS RESTRICTED STOCK AND CASH INCENTIVE AGREEMENT (the “Agreement”) is made on this 2nd day of January, 2015 ("Grant Date") between Symmetry Surgical Inc., a Delaware corporation (the “Company”), and _______________ (“Grantee”).
 
WHEREAS, the Grantee is a senior member of the Company’s executive team, whose employment and high achievement have the ability to impact the Company’s performance; and
 
WHEREAS, the grant of shares of restricted stock and cash bonus opportunities pursuant to the Company’s 2014 Equity Incentive Plan (the “Plan”) to the Grantee under the terms hereof has been approved by the Company’s Compensation Committee (the “Committee”) and Board of Directors.
 
NOW, THEREFORE, pursuant to the Plan, the Company hereby grants to Grantee a number of shares of Common Stock, par value $.0001, (“Common Stock”) of the Company (this grant in whole or in part is collectively referred to herein as the “Restricted Shares”), and cash payment (“Cash Award”) calculated pursuant to and subject to the terms and conditions of the Plan and this Agreement.  

		
	1)
	Definitions.  All capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Plan.  

		
	2)
	Grant of Restricted Shares.  Subject to performance, vesting, transferability and other restriction and limitations contained herein and in Plan, the Company hereby grants Grantee ____________________ Restricted Shares and opportunity to earn $ ____________ in Cash.  

		
	3)
	Performance Criteria.  

(a)  The Restricted Shares and Cash Award shall be earned, if at all, in three tranches in accordance with the following table, based on the Company’s revenue and EBITDA during any trailing twelve month period beginning on or after the Grant Date and ending on or before the third anniversary of the Grant Date (collectively the “Performance Criteria”):  

	
		
	Criteria:
	Portion of Restricted Shares Earned

	Revenue: $____; EBITDA: $______
	 

	Revenue: $_____; EBITDA: $______
	 

	Revenue: $_____; EBITDA: $______
	 

(b)  Should the Performance Criteria not be satisfied, in whole or in part, and/or should one or more of the Restricted Shares or Cash Award not be earned by the third anniversary of the Grant Date (per the table above), the Board of Directors shall project the Company's then-current As-Adjusted Earnings Per Share on a full pro-forma basis to account for the impact, if any, on As-Adjusted Earnings Per Share, of any mergers or acquisitions completed by the Company in the prior twelve month period immediately preceding the third anniversary of the Grant Date, including the impact of such acquisition in the review of the prior twelve months as if it were acquired at the beginning of such period.  Should the Board's analysis result in a projected accretion in the As-Adjusted Earnings Per Share in the prior twelve month period such that it would have otherwise caused the achievement of any of the foregoing Performance Criteria, then such additional Restricted Shares and/or Cash Award that would have been earned for the achievement of some or all of the Performance Criteria shall be deemed to be earned.  For example, if the Company acquires a company six months prior to the third anniversary of the Grant Date (and as of such time, no portion of the Restricted 

Shares or Cash had previously been earned), and the Board projects the financial results for the prior twelve months as having included the acquisition for that entire period of time and finds that those projected results meet two of the Performance Criteria, then the first two tranches of the Restricted Shares and Cash Award shall be earned and the third tranche shall be forfeited.  
 
(c)  In the event of a "qualifying termination" (as defined in the Executive Benefit Agreement into which you entered with the Company), you will be entitled to accelerated vesting with respect to the Restricted Stock Grant (including any Cash Award), as follows: 
		
	•
	any portion of the Restricted Stock or Cash Award that has not been earned via satisfying the Performance Metrics shall be earned and vested at the “qualifying termination" based on a run rate of actual performance through the date of such termination (as compared to the performance target) and further subject to the pro rata time you have worked for the company following the grant during the three (3) year term of the program; for example if termination occurs in the second year and performance equals 90% of the first criteria, 50% of the second and 15% of the third, then corresponding amounts of each tranche will be earned and vested further based on the pro rata time you have worked for the company following the grant during the three (3) year term of the program, and 

		
	•
	Any Restricted Stock Award or Cash Award that has been earned and is in its vesting period will become fully vested.  

In the event of a "change in control" (as defined in the Plan and as determined by the Board of Directors), the entire Award will become fully vested with respect to both performance (as if the 3-year actual performance achieved the target level of performance) and time-based vesting purposes.  
(d)  Except as otherwise specifically provided herein, any portion of the Restricted Shares or Cash Award not then earned as of the third anniversary of the Grant Date shall be forfeited to the Company.  Any Restricted Shares or Cash Award that are earned in accordance with this Section 3 will remain subject to a substantial risk of forfeiture unless or until they become vested in accordance with Section 5, below.
4)    Restrictions on Transfer of Shares. 

(a)    The Restricted Shares and Cash Award may not be sold, assigned, transferred, conveyed, pledged, exchanged or otherwise encumbered or disposed of (each, a “Transfer”), by the Grantee, except to the Company, unless and until they have become nonforfeitable as provided herein. Any purported encumbrance or disposition in violation of the provisions of this Section 4 shall be void AB INITIO, and the recipient of any Restricted Shares or Cash Award transferred or pledged in contravention hereof shall not obtain any rights to or interest in the Restricted Shares or Cash Award.  Notwithstanding the foregoing, Grantee may not Transfer Restricted Shares which have become nonforfeitable as provided in Sections 5 and 6 hereof unless and until the Restricted Shares are registered pursuant to the Securities Act of 1933 (the “Securities Act”), are sold under Rule 144 promulgated under the Securities Act or unless the Restricted Shares are not required to be registered under the Securities Act or the Transfer of the Restricted Shares is not subject to Rule 144.
        
(b)    Any Grantee who is also an Executive Officer of the Company, and who is included in the Summary Compensation Table of the Company’s Proxy Statement for the annual meeting of shareholders immediately preceding the Vesting Date, agrees not to Transfer the Restricted Shares for six (6) months following the Vesting Date.  Any purported Transfer in violation of the provisions of this Section shall be void AB INITIO, and the recipient of any Restricted Shares transferred in contravention hereof shall not obtain any rights to or interest in the Restricted Shares.

(c)    The Restricted Shares, Cash Award, the Plan and this Agreement are not intended to be, nor shall they be construed as an “incentive plan” or other similar plan as that term is used or otherwise referenced in any Severance Agreement and it is not intended that the Restricted Shares be a component (in whole or in part) of any severance payment or obligation except as specifically set forth herein.

 

5)    Vesting of Shares.
 
(a)    Subject to Section 6 hereof, and except as provided otherwise herein, the Restricted Shares shall vest and become nonforfeitable on the third anniversary of the date on which they were earned in accordance with Section 3, above.  

(b)    Notwithstanding the provisions of Section 5(a), any Restricted Shares which are earned pursuant to the Board’s evaluation under Section 3(b) above shall vest on the second anniversary of the date on which they were earned in accordance with Section 3(b) above. 

6)    Forfeiture of Shares. 

(a)    If the Grantee ceases to be an employee of the Company due to death or Disability during any period of restriction, any previously earned but non-vested Restricted Shares shall immediately vest.  

(b)    Notwithstanding the provisions of Section 6(a) above, in the event of a Change in Control, all outstanding Restricted Shares whether earned or unearned or vested or unvested, shall be deemed to be fully earned and fully vested.

(c)     Notwithstanding the provisions of Section 6(a) above, if the Grantee ceases to be an employee of the Company as a result of a "qualifying termination" (as defined in the Executive Benefit Agreement into which Company entered with Grantee), then Grantee will be entitled to accelerated vesting with respect to the Restricted Shares and Cash Awards, as follows: 

		
	•
	any portion of the Restricted Shares or Cash Award that have not been earned via satisfying the Performance Metrics shall be earned and vested at the “qualifying termination" based on a run rate of actual performance through the date of such termination (as compared to the performance target) and further subject to the pro rata time Grantee worked for the Company following the Grant Date and during the three (3) year term of the program; for example if termination occurs in the second year and performance equals 90% of the first criteria, 50% of the second and 15% of the third, then corresponding amounts of each tranche will be earned and vested further based on the pro rata time Grantee worked for the Company following the Grant Date during the three (3) year term of the program, and 

		
	•
	Any Restricted Stock Award that has been earned and is in its vesting period will become fully vested.  

If the Grantee ceases to be an employee of the Company for any other reason, any unearned and/or non-vested Restricted Shares and Cash Award shall be forfeited by the Grantee and the certificate(s) representing the non-vested portion of the Restricted Shares so forfeited shall be canceled.
 
7)    Dividend, Voting and Other Rights. Except as otherwise provided in this Agreement, the Grantee shall have all of the rights of a stockholder with respect to the Restricted Shares, including the right to vote the Restricted Shares and receive any dividends that may be paid thereto (to the extent specifically provided herein), provided, however, that any additional Common Stock or other securities that the Grantee may become entitled to receive as a result of his/her ownership of the Restricted Shares pursuant to a stock dividend, stock split, recapitalization, combination of shares, merger, consolidation, separation or reorganization or any other change in the capital structure of the Company shall be subject to the same risk of forfeiture, certificate delivery provisions and restrictions on transfer as the Restricted Shares in respect of which they are issued or transferred and shall become Restricted Shares for the purposes of this Agreement.  Cash dividends declared shall accumulate unpaid and be subject to the same risk of forfeiture, certificate delivery provisions and restrictions on transfer as the forfeitable Restricted Shares as set forth in Sections 4, 5 and 6 until such time as the Restricted Shares vest.  Such dividends are not intended to be subject to IRS Code Section 409A and are intended to meet the short term deferral rule.  Cash dividends will be paid to Grantee at the date of the Restricted Shares’ vesting pursuant to Sections 5 and 6.
 
8)    Retention of Stock Certificate(s) by the Company. The certificate(s) representing the Restricted Shares shall be held in custody by the Company or in book format by its transfer agent until such shares have become nonforfeitable in accordance with Sections 5 and 6.

 
9)    Compliance with Laws. The Company shall make reasonable efforts to comply with all applicable federal and state securities laws, provided, however, notwithstanding any other provision of this Agreement, the Company shall not be obligated to issue or release from restrictions on transfer any Restricted Shares pursuant to this Agreement if such issuance or release would result in a violation of any such law.
 
10)     Withholding Taxes. If the Company shall be required to withhold any federal, state, local or foreign tax in connection with any issuance or vesting of Restricted Shares and Cash Awards pursuant to this Agreement, the Grantee shall provide the Company with full and complete payment for any such obligations or estimated obligations, as calculated by Company in its sole discretion.  The Grantee may elect to satisfy all or any part of any such withholding obligation by surrendering to the Company a portion of the Restricted Shares and Cash Awards that become nonforfeitable hereunder, and the Restricted Shares so surrendered by the Grantee shall be credited against any such withholding obligation at the average of the Fair Market Value of the Restricted Shares on the trading day immediately preceding the date they are tendered to the Company to satisfy any withholding obligations.  All withholding obligations shall be satisfied prior to or on the Vesting Date.

11)    Restrictive Covenants.  In consideration for the Restricted Shares, the Grantee acknowledges the applicability of, and his agreement to be bound by, the confidentiality, non-solicitation, and noncompetition covenants and other restrictive covenants set forth in the Grantee’s Executive Benefit Agreement (and any amendments thereto).
12)    Conformity with Plan. This Agreement and the Restricted Shares granted pursuant hereto are intended to conform in all respects with, and are subject to all applicable provisions of, the Plan (which is incorporated herein by reference).  Inconsistencies between this Agreement and the Plan shall be resolved in accordance with the terms of the Plan.  By executing this Agreement, Grantee acknowledges and agrees to be bound by all of the terms of this Agreement and the Plan.  The Plan is administered by the Committee, and determinations and interpretations of the Committee on all matters relating to the Plan and this Agreement, shall be in compliance with the Plan and shall be conclusive and binding on the Grantee and the Company.
 
13)    Amendments. The provisions of this Agreement may be amended and waived only with the prior written consent of the Company, Committee and the Grantee.
 
14)    Severability. In the event that one or more of the provisions of this Agreement shall be invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable.
 
15)    Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, administrators, heirs, legal representatives and assigns of the Grantee and the successors and assigns of the Company.
16)    Notices. Any notice to the Company provided for herein shall be in writing to the attention of the Secretary of the Company at Symmetry Surgical, Inc., 3034 Owen Drive, Antioch, TN 37013, and any notice to the Grantee shall be addressed to the Grantee at the address currently on file with the Company.  Except as otherwise provided herein, any written notice shall be deemed to be duly given if and when hand delivered, or five business days after having been mailed by United States registered or certified mail, return receipt requested, postage prepaid, or three business days after having been sent by a nationally recognized overnight courier service, addressed as aforesaid. Any party may change the address to which notices are to be given hereunder by written notice to the other party as herein specified, except that notices of changes of address shall be effective only upon receipt.
17)    Governing Law. The laws of the State of Tennessee, without giving effect to the principles of conflict of laws thereof, shall govern the interpretation, performance and enforcement of this Agreement.  The parties hereby submit to the exclusive venue in and jurisdiction of the state or federal courts located in Davidson County, Tennessee over any dispute related to this Agreement.

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above.
  
	
				
	 
	SYMMETRY SURGICAL, INC.

	 
	 

	 
	By:
	 
	 

	 
	David C. Milne, Chief Administration Officer, General Counsel & Corporate Secretary

	ACKNOWLEDGED AND AGREED:
	 

	 
	 

	 
	 

	Executive’s SignatureSSRG-EX10.8_2014 Q4

EXHIBIT 10.8

INDEMNITY AGREEMENT

This AGREEMENT is made as of ____________ ____, 2015 by and between Symmetry Surgical Inc., a Delaware corporation (the "Corporation"), and _________________ (the "Indemnitee"), a director and/or executive officer of the Corporation and/or its subsidiaries or related corporate entities.

WHEREAS, it is essential to the Corporation to retain and attract as directors and/or executive officers of the Corporation or its subsidiaries the most capable persons available and persons who have significant experience in business, corporate and financial matters; and

WHEREAS, the Corporation has identified the Indemnitee as a person possessing the background and abilities desired by the Corporation and desires the Indemnitee to continue to serve as a director and/or an executive officer of its subsidiaries; and

WHEREAS, the Corporation and the Indemnitee recognize that serving as a director and/or executive officer of a corporation or its subsidiaries at times calls for subjective evaluations and judgments upon which reasonable men may differ and that the good faith exercise of their corporate duties and responsibilities may subject them to burdensome litigation; and

WHEREAS, it is now the express policy of the Corporation to indemnify its directors and/or executive officers and those of its subsidiaries to the fullest extent not prohibited by law; and

WHEREAS, the Corporation’s Amended and Restated Certificate of Incorporation, a copy of which is attached hereto as Exhibit A (the “Certificate”), requires indemnification of the directors and/or executive officers of the Corporation, as well as officers and directors of subsidiaries who are also directors or executive officers of the Corporation, pursuant to a broad and detailed procedure; and

WHEREAS, the Corporation and the Indemnitee desire to articulate clearly in contractual form their respective rights and obligations with regard to the Indemnitee's service on behalf of the Corporation as a director and/or officer of its subsidiaries and related corporate entities (the “Service”) and with regard to claims for loss, liability, expense or damage which, directly or indirectly, may arise out of or relate to the Service.

NOW THEREFORE, the Corporation and the Indemnitee agree as follows:

1.    Agreement to Serve.  The Indemnitee shall serve as a director and/or executive officer of the Corporation for so long as the Indemnitee is duly elected or appointed or until the Indemnitee resigns or is removed from such offices.

2.    Confirmation of Service on behalf of the Corporation.  It is confirmed that Indemnitee’s service as an officer and/or director of any or all of the Corporation’s subsidiaries, related corporate entities, as a manager of an LLC or partner of a partnership in which the Corporation has any ownership interest, either directly or indirectly through another entity(ies) in which it has an ownership interest is, has always been and, unless notified in writing hereafter otherwise, shall remain at the Corporation’s specific request and for the Corporation’s benefit.  Should the Corporation desire Indemnitee not to serve at its request in any capacity at any time in the future the Corporation shall provide no less than thirty (30) days’ written notice to Indemnitee and shall indemnify Indemnitee for all Expenses incurred by Indemnitee in resigning from or ceasing to serve in such capacity and shall use its best efforts to assist Indemnitee in legal 

proceedings, filings, documents, or otherwise in assisting Indemnitee in resigning from or ceasing to serve in such capacity.

3.    Definitions.  All terms used herein which are defined in the Certificate shall have the same meaning as set forth therein unless specifically defined otherwise herein.

4.    Indemnity. The Corporation shall indemnify the Indemnitee in accordance with the provisions of the Certificate, and to the fullest extent provided thereby, if the Indemnitee is made a party to any Proceeding.   Should the Certificate be amended or altered, through action of the shareholders or Board of Directors or otherwise by operation of law to make the indemnification provided under the Certificate more favorable in any respect for Indemnitee then Indemnitee shall be entitled to the benefit of any such provisions.  Under no circumstances shall Indemnitee be entitled to any indemnification under the Certificate as it exists now or as amended in the future which shall be less favorable in any respect than provided thereunder as of the date of this Agreement.

5.    Additional Indemnification.   

(a)    Notwithstanding any limitation in the Certificate, the Corporation shall indemnify the Indemnitee to the fullest extent not prohibited by law with respect to any Proceeding against all Expenses, judgments, fines and amounts paid in settlement, actually and reasona-bly incurred by the Indemnitee in connection with such Proceeding.

(b)    For purposes of this Agreement, the meaning of the phrase "to the fullest extent not prohibited by law" shall include, but not be limited to:

(i)    to the fullest extent authorized or not prohibited by any changes in the law, including but not limited to any amendments to or replacements of the Delaware Corporation Law (“DCL”) adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers or directors; and

(ii)     to the fullest extent authorized by the provision of the DCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DCL.

6.    Exclusions.  Notwithstanding any provision in this Agreement, the Corporation shall not be obligated under this Agreement to make any indemnification:

(a)    for which payment is made to or on behalf of the Indemnitee under any insurance policy, except with respect to any excess amount to which the Indemnitee is entitled under this Agree-ment beyond the amount of payment under such insurance policy;

(b)    for any liability for profits made from the purchase and sale by the Indemnitee of securities of the Corporation, which liability arises under Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar provision of any state statutory or common law;

(c)    if a court having jurisdiction in the matter shall finally determine that such indemni-fication is not lawful under any applicable statute or public policy; or

(d)    in connection with any Proceeding (or part of any Proceeding) initiated by the Indemnitee, or any Proceeding by the Indemnitee against the Corporation or its directors, officers, employees or other persons entitled to be indemnified by the Corporation, unless (i) the Corporation is expressly required by 

law to make the indemnification, (ii) the Proceeding was autho-rized by the Board of Directors of the Corporation, or (iii) the Indemnitee initiated the Proceeding pursuant to Section 10 of this Agreement and the Indemnitee is successful in whole or in part in the Proceeding.

7.    Advancement of Expenses.  The Corporation shall pay the Expenses incurred by the Indemnitee in any Proceeding in advance of the final disposition of the Proceeding at the written request of the Indemnitee, if the Indemnitee:

(a)    furnishes the Corporation a written affirmation of the Indemnitee's good faith belief that the Indemnitee is entitled to be indemnified under this Agreement; and

(b)    furnishes the Corporation a written undertaking to repay the advance to the extent that it is ultimately determined that the Indemnitee is not entitled to be indemnified by the Corporation.  Such undertaking shall be an unlimited general obligation of the Indemnitee but need not be secured.

Advances pursuant to this Section 7 shall be made no later than 10 days after receipt by the Corporation of the affirmation and undertaking described in Sections 7(a) and 7(b) above, and shall be made without regard to the Indemnitee's ability to repay the amount advanced and without regard to the Indemnitee's ultimate entitlement to indemnification under this Agreement.  

8.    Nonexclusivity and Continuity of Rights.  The indemnification and advancement of Expenses provided by this Agreement shall not be deemed exclusive of any other rights to which the Indemnitee may be entitled under the Certificate, any other agreement, any vote of shareholders or directors, the DCL, or otherwise, both as to action in the Indemnitee's official capacity and as to action in another capacity while holding such office.  The indemnification under this Agreement shall continue as to the Indemnitee even though the Indemnitee may have ceased to be a director and/or executive officer of the Corporation or a director, officer, employee or agent of an enterprise related to the Corporation and shall inure to the benefit of the heirs, executors, administrators and personal representatives of the Indemnitee.

9.    Enforcement.  The Indemnitee may enforce any right to indemnification or advances pro-vided by this Agreement in any court of competent jurisdiction if (a) the Corporation denies the claim for indemnification or advances of Expenses, in whole or in part, or if the Corporation does not dispose of such claim within the time period required by this Agreement or the Certificate.  It shall be a defense to any such enforcement action (other than an action brought to enforce a claim for advancement of Expenses pursuant to, and in compliance with, Section 8 of this Agreement) that the Indemnitee is not entitled to indemnification under this Agreement.  The termination of any Proceeding by judgment, order of court, settlement, conviction or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the Indemnitee is not entitled to indemnification under Sections 3, 4 or 6 of this Agreement.

10.    Partial Indemnification.  If the Indemnitee is entitled under any provisions of this Agreement to indemnification by the Corporation for some or a portion of the Expenses, judgments, fines or amounts paid in settlement, actually and reasonably incurred by the Indemnitee in connection with such Proceeding, but not, however, for the total amount thereof, the Corporation shall nevertheless indemnify the Indemnitee for the portion of such Expenses, judgments, fines or amounts paid in settlement to which the Indemnitee is entitled.

11.    Severability.  If this Agreement or any portion thereof shall be invalidated on any ground by any court of competent jurisdiction, then the remainder of this Agreement shall continue to be valid and the Corporation shall nevertheless indemnify the Indemnitee as to Expenses, judgments, fines and 

amounts paid in settlement, with respect to any Proceeding, to the fullest extent permit-ted by any applicable portion of this Agreement that shall not have been invalidated or by any other applicable law.

12.    Subrogation.  In the event of payment under this Agreement, the Corporation shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee.  The Indemnitee shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Corporation effectively to bring suit to enforce such rights.

13.    Notices.  All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given (a) upon delivering by hand to the party to whom the notice or other communication shall have been directed, or (b) on the third business day after the date on which it is mailed by certified or registered mail with postage prepaid, addressed as follows:

(i)    If to the Indemnitee, to the address indicated on the signature page of this Agreement.

(ii)    If to the Corporation, to:

Symmetry Surgical Inc.
3034 Owen Dr.
Antioch, TN 37013
Attention:      Chairman of the Board of Directors
		
	Copy to:
	Chief Administrative Officer, General Counsel, Corporate Secretary & Chief Compliance Officer

or to any other address as either party may designate to the other in writing.

14.    Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall constitute the original.

15.    Applicable Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without regard to the principles of conflict of laws.

16.    Successors and Assigns.  This Agreement shall be binding upon the Corporation and its successors and assigns.

IN WITNESS WHEREOF, the parties hereby have caused this Agreement to be duly executed and signed as of the day and year first above written.

SYMMETRY SURGICAL INC.:            INDEMNITEE:

By _______________________________        By ________________________________

__________________________________        ___________________________________
Title                            Address
___________________________________

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