Document:

exhibit10_35.htm

    
      Exhibit
        10.35

      

      Option
        Number:                                                                                     

                     
        Optionee Name:                                                                                     
        

      

      

      

      KINETIC
        CONCEPTS, INC.

      2004
        EQUITY PLAN

      INTERNATIONAL
        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 US$[______] 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 actively 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 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 in U.S. dollars which
        may
        be made (i) in cash or by check, (ii) to the extent
        permitted
        by applicable law, by means of any cashless exercise procedure through the
        use
        of a brokerage arrangement approved by the Administrator, or (iii) 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, consistent with local law and regulations,
                  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, consistent
                  with
                  local law and regulations.  Any such determination by the
                  Administrator shall be final, conclusive and binding on all
                  persons.

                 

              

      

      
        	
                (b)  

              	
                If
                  the Optionee’s active 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.  Notwithstanding the foregoing, if the Optionee’s
                  active 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.

                 

              

      

      
        	
                (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)  

              	
                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.

                 

              

      

      
        	
                (e)  

              	
                If
                  Optionee 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 and exercisability of the Option and the expiration of
                  the Option,
                  unless otherwise determined by the Administrator.

                 

              

      

      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 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 fifth 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 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 in
        Connection With Option Exercises.

       

      
        	
                (a)  

              	
                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 Optionee’s income tax, social insurance, payroll
                  tax, payment on account or other tax-related withholding (“Tax-Related
                  Items”) related to the Option.  Regardless of any action the
                  Company (or Subsidiary or affiliate) takes with respect to any
                  or all
                  Tax-Related Items, the Optionee has the ultimate liability for
                  all
                  Tax-Related Items legally due by the Optionee 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 Option,
                  including
                  the grant, vesting or exercise of the Option, the subsequent sale
                  of
                  Shares acquired pursuant to such exercise and the receipt of any
                  dividends; and (2) does not commit to structure the terms of the
                  grant or
                  any aspect of the Option to reduce or eliminate the Optionee’s liability
                  for Tax-Related Items.

                 

              

      

      
        	
                (b)  

              	
                The
                  Optionee 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 Optionee 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 Optionee agrees to allow the Company and/or the
                  Subsidiary (or affiliate) to withhold all applicable Tax-Related
                  Items
                  legally payable by the Optionee from the Optionee’s wages or other cash
                  compensation paid to the Optionee 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
                  Optionee is not able to otherwise pay the Tax-Related Items withholding,
                  the Optionee agrees that the Company may sell or arrange for the
                  sale of
                  Shares that the Optionee acquires to meet the withholding obligation
                  for
                  Tax-Related Items; and/or withhold from delivery Shares having
                  a value
                  equal to the aggregate required minimum Tax-Related Items
                  withholding.  Finally, the Optionee 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 Optionee’s participation in the Plan or the Optionee’s
                  purchase of Shares that cannot be satisfied by the means previously
                  described.  The Company may refuse to honor the exercise and
                  refuse to deliver the Shares if the Optionee fails to comply with
                  the
                  Optionee’s obligations in connection with the Tax-Related Items as
                  described in this paragraph.

                 

              

      

      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 U.S. Securities Act
                  of 1933, as
                  amended, the U.S. Exchange Act, the requirements of any stock exchange
                  upon which the Shares may then be listed, and the 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
                  or local
                  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 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.

                 

              

      

      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. Nature
        of
        Grant.

       

      
        	
                (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 Option
                  Agreement;

                 

              

      

      
        	
                (b)  

              	
                The
                  grant of the Options is voluntary and occasional and does not create
                  any
                  contractual or other right to receive future grants of Options,
                  or
                  benefits in lieu of Options, even if Options have been granted
                  repeatedly
                  in the past;

                 

              

      

      
        	
                (c)  

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

                 

              

      

      
        	
                (d)  

              	
                Participation
                  in the Plan is voluntary;

                 

              

      

      
        	
                (e)  

              	
                The
                  Option 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
                  Optionee’s employment contract, if any;

                 

              

      

      
        	
                (f)  

              	
                The
                  Option 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)  

              	
                The
                  future value of the underlying Shares is unknown and cannot be
                  predicted
                  with certainty;

                 

              

      

      
        	
                (h)  

              	
                If
                  the underlying Shares do not increase in value, the Options will
                  have no
                  value;

                 

              

      

      
        	
                (i)  

              	
                If
                  the Optionee exercises the Option and obtains Shares, the value
                  of those
                  Shares acquired upon exercise may increase or decrease in value,
                  even
                  below the Option Exercise Price;

                 

              

      

      
        	
                (j)  

              	
                In
                  consideration of the grant of the Option, no claim or entitlement
                  to
                  compensation or damages shall arise from termination of the Option
                  or
                  diminution in value of the Option or Shares purchased through the
                  exercise
                  of the Option resulting from termination of the Optionee’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
                  Optionee hereby releases 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 Option Agreement, the Optionee shall be deemed
                  irrevocably to have waived the Optionee’s entitlement to pursue such
                  claim; and

                 

              

      

      
        	
                (k)  

              	
                Notwithstanding
                  any terms or conditions of the Plan to the contrary, in the event
                  of
                  involuntary termination of the Optionee’s employment (whether or not in
                  breach of local labor laws), the Optionee’s right to receive the Option
                  and vest in Options under the Plan, if any, will terminate effective
                  as of
                  the date that the Optionee 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
                  Optionee’s
                  right to exercise the Option after termination of employment, if
                  any, will
                  be measured by the date of termination of the Optionee’s active employment
                  and will not be extended by any notice period mandated under local
                  law.

                 

              

      

      13. Data
        Privacy.  The Optionee explicitly and unambiguously consents to
        the collection, use and transfer, in electronic or other form, of the Optionee’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 Optionee’s participation in the
        Plan.

       

      The
        Optionee hereby understands that
        the Company and the Subsidiary (or affiliates) hold certain personal information
        about the Optionee, including, but not limited to, the Optionee’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 Optionee’s favor, for the purpose of implementing,
        administering and managing the Plan (“Data”).  The Optionee 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 Optionee’s country or elsewhere, and that the recipient’s
        country may have different data privacy laws and protections than the Optionee’s
        country.  The Optionee hereby understands that the Optionee may
        request a list with the names and addresses of any potential recipients of
        the
        Data by contacting the Optionee’s local human resources
        representative.  The Optionee 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 Optionee’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 Optionee may elect
        to
        deposit any Shares acquired upon exercise of the option.  The Optionee
        hereby understands that Data will be held only as long as is necessary to
        implement, administer and manage the Optionee’s participation in the
        Plan.  The Optionee hereby understands that the Optionee 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
        Optionee’s local human resources representative.  The Optionee hereby
        understands, however, that refusing or withdrawing the Optionee’s consent may
        affect the Optionee’s ability to participate in the Plan.  For more
        information on the consequences of the Optionee’s refusal to consent or
        withdrawal of consent, the Optionee hereby understands that the Optionee
        may
        contact the human resources representative responsible for the Optionee’s
        country at the local or regional level.

      

      14. 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.

       

      15. 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
        conflicts of laws as provided in the Plan.  For purposes of litigating
        any dispute that arises under this Option or the Option 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 Option grant is made and/or performed.

       

      16. 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.

       

      17. 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.

       

      18. 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.

       

      19. 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.

       

      20. Authority
        of the
        Administrator.  The Administrator shall have full authority to
        interpret and construe the terms of the Plan and the Option
        Agreement.  The Administrator shall have the exclusive discretion to
        determine when the Optionee is no longer actively employed for purposes of
        the
        Option.  The determination of the Administrator as to any such matter
        of interpretation or construction shall be final, binding and
        conclusive.

       

      21. 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.

       

      22. Tax
        Representation.  The Optionee has reviewed with his or her own
        tax advisors the federal, state, local and worldwide 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.

       

      23. Language.  If
        the Optionee 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.

       

      24. Electronic
        Delivery.  The Company may, in its sole discretion, decide to
        deliver any documents related to the Option granted under and participation
        in
        the Plan or future options that may be granted under the Plan by electronic
        means or to request the Optionee’s consent to participate in the Plan by
        electronic means.  The Optionee 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.

       

      25. 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.

       

      26. Severability.  The
        provisions of this Option 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.

      

      [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
                    No.:

                	 
	
                  Identification
                    No.:

                	 

        
                                                           
        

      

       

      

      
        	
                
                

                DATE
                  OF

                GRANT

              	
                
                

                NUMBER
                  OF

                SHARES
                  SUBJECT

                TO
                  OPTION

              	
                
                

                OPTION

                EXERCISE

                PRICE

                
                

              	
                
                

                EXPIRATION

                DATEexhibit10_36.htm

    
      Exhibit
10.36

      

      Award
Number:                                                                                     

      Grantee
Name:                                                                                     

      

      KINETIC
CONCEPTS, INC.

      2004
EQUITY PLAN

      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 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 Exhibit 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, 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. Any such determination by the
      Administrator shall be final, conclusive and binding on all persons.
      

                 

              

      

      
        	
                (ii)
        

              	
                If
      the Grantee’s employment with or service to the Company and any Subsidiary
      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 ceases to be a Subsidiary of the Company, then, as of such date
      of cessation, the Grantee's employment with or service to the Subsidiary
      shall be deemed to have terminated. 

                 

              

      

      
        	
                (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 Restrictions that lapse
      based on the passage on time, the Restrictions on all outstanding
      Restricted Stock with respect to which the Restrictions have not lapsed
      shall immediately lapse and, with respect to Restrictions that lapse based
      on attainment of specified performance conditions, the Restrictions on all
      outstanding Restricted Stock with respect to which the Restrictions have
      not lapsed shall immediately lapse 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.  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 any federal, state and local tax withholding
      requirements related to the Award.  With the approval of the
      Administrator, the Grantee may satisfy the foregoing requirement by
      electing to have the Company withhold from delivery Shares (to the extent
      applicable) 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.

                 

              

      

      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 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
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 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 (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 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. 

       

      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. 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.

       

      8. 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.

       

      9. 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.

       

      10. 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.

       

      11. 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.

       

      12. Authority of the
Administrator.  The Administrator shall have full authority to
interpret and construe the terms of the Plan and the Award
Agreement.  The determination of the Administrator as to any such
matter of interpretation or construction shall be final, binding and
conclusive.

       

      13. 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.

       

      14. Tax
Representation.  The Grantee has reviewed with his or her own
tax advisors the federal, state, local and foreign 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.

       

      15. 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.

       

      
 

      [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:

                  	 
	 	 
	 	 
	
                    GRANTEE

                  
	 	 
	 	 
	 	 
	
                    Signature:

                  	 
	
                    Name:

                  	 
	
                    Address:

                  	 
	 	 
	
                    Telephone
      No.:

                  	 
	
                    Social
      Security No.:

                  	 

          

      

      

      
        	
                
                

                DATE OF GRANT

                
                

              	
                
                

                NUMBER OF

                RESTRICTED STOCK UNITS

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