Document:

Exhibit 10.29, 2004 Equity Plan RSAA - C. Burzik

Exhibit 10.29

 

KINETIC CONCEPTS, INC.

2004 EQUITY PLAN

RESTRICTED STOCK AWARD AGREEMENT

 

          THIS RESTRICTED STOCK AWARD AGREEMENT (the “Award Agreement”) is made and entered into as of November 6, 2006 (the “Date of
Grant”), by and between Kinetic Concepts, Inc., a Texas corporation (the “Company”), and Catherine M. Burzik (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, subject to the terms and conditions set forth in the Plan and herein, and hereby grants such
Restricted Stock.

          1.     Grant of Restricted Stock.  The Company hereby grants to the Grantee 88,200 shares of Restricted Stock (the "Award") on the terms and conditions set
forth in this 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)    Restrictions.  Restricted Stock and any interest therein, may not be sold,

                           transferred, pledged, hypothecated, assigned or otherwise disposed of,

                           except by will or the laws of descent and distribution, during the

                           Restricted Period.  Any attempt to dispose of any Restricted Stock in

                           contravention of any such restrictions (the "Restrictions") shall be null

                           and void and without effect.

                  (b)    Certificate; Restrictive Legend.  The Grantee agrees that any certificate

                           issued for Restricted Stock prior to the lapse of any outstanding

                           restrictions relating thereto shall be inscribed with the following legend:

                            This certificate and the shares of stock represented

                           hereby are subject to the terms and conditions,

                           including forfeiture provisions and restrictions

                           against transfer (the "Restrictions"), contained in

                           the Kinetic Concepts, Inc. 2004 Equity Plan and

                            the Restricted Stock Award Agreement entered into

                           between the registered owner and the company.

                           Any attempt to dispose of these shares in

                           contravention of the restrictions, including by way

                           of sale, assignment, transfer, pledge, hypothecation

                           or otherwise, shall be null and void and without effect.

                  (c)    Rights as a Shareholder.  Subject to the restrictions set forth in the Plan

                           and this Award Agreement, including the Restrictions set forth in

                           Paragraphs 2(a) and 2(d), during the Restricted Period, the Grantee shall

                           possess all incidents of ownership with respect to the Restricted Stock

                           granted hereunder, including the right to receive dividends with respect

                           to such Restricted Stock (provided however, that any dividends paid in

                           property other than cash shall be subject to the same restrictions that

                           apply to the underlying Restricted Stock) and the right to vote such

                           Restricted Stock.

                  (d)    Lapse of Restrictions.      Except as may otherwise be provided herein,

                           the Restrictions on transfer set forth in Paragraph 2(a) shall lapse in full

                           on the third anniversary of the Date of Grant.

                                 Promptly after the lapse of Restrictions relating to the
Restricted

                           Stock without forfeiture, and provided that the Grantee shall have

                           complied with his or her obligations under Paragraph 2(f) hereof, the

                           Company shall issue to the Grantee or the Grantee's personal

                           representative a stock certificate representing a number of Shares, free of

                           the restrictive legend described in Paragraph 2(b), equal to the number

                           of Shares of Restricted Stock with respect to which such restrictions

                           have lapsed.  If certificates representing such Restricted Stock shall have

                           theretofore been delivered to the Grantee, such certificates shall be

                           returned to the Company, complete with any necessary signatures or

                           instruments of transfer prior to the issuance by the Company of such

                           unlegended Shares.

                  (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 Restrictions on
the

                                  Shares of Restricted Stock have lapsed.  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, any

                                  Subsidiary or affiliate thereof, terminates for any reason
during the

                                  Restricted Period, the Grantee shall immediately forfeit any
rights to

                                  the Shares of Restricted Stock with respect to which the
Restrictions

                                  have not lapsed and shall have no further rights
thereto.

                        (iii)    Upon the occurrence of a Change in Control, Restrictions on all

                                  outstanding Restricted Stock shall immediately
lapse.

                  (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 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.

                                 The Grantee shall promptly notify the Company of any election

                           made pursuant to Section 83(b) of the Code.

          3.     Adjustments.  The Award and all rights and obligations under this 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 which 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) 255-6456

                                                          Fax: 
(210) 255-6125

                  If to the Grantee:            To the address as last set forth

                                                          in
the Company's employment records

                  Either party may change such party’s address for notices by duly giving notice pursuant
hereto.

          5.     Compliance with Laws.

                  (a)    Shares 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 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 this 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 or the Grantee 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 this 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) and the term “Paragraph” shall refer to a provision of this Award
Agreement. 

         10.    Amendments.  This 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 this
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 this 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 Award Agreement on the day and year first above written.

KINETIC CONCEPTS,
INC.                                         

By:                  /s/ Martin J.
Landon                                 

 Name:                  Martin J.
Landon                                 

 Title:                Sr. Vice President, CFO                  
       

GRANTEE                                                                      

Signature:  /s/ Catherine M. Burzik                                  

 Name:            Catherine M. Burzik                          
       

 

	
DATE OF

 GRANT

	
NUMBER OF SHARES OF

 RESTRICTED STOCK

	
November 6, 2006

	
88,200Exhibit 10.30, KCI Comp Policy for Outside Directors, Adopted November 28, 2006

Exhibit 10.30

Kinetic Concepts, Inc. Compensation Policy for Outside Directors

Adopted November 28, 2006

Purpose:  The purpose of the Kinetic Concepts, Inc. Compensation Policy for Outside Directors (the "Policy") is to establish the compensation for Outside Directors, as defined herein, in a manner that aligns their interests with those of the shareholders of
Kinetic Concepts, Inc. (the "Company") and is competitive with comparable companies.  Directors who are not Outside Directors will not  be compensated pursuant to the Policy.

Effective Date:  The Policy was approved by the Board of Directors of the Company (the "Board") on November 28, 2006 and will become effective commencing for the 2007 calendar year, and, at that time, will replace any other policies previously in effect
for this purpose.  The Policy will remain in effect until amended or terminated by the Board.

Components:  Outside Directors' compensation will consist of the components described below.

Annual Retainer:

          An annual retainer in the amount of $35,000 will be paid in cash within 10 days

          following each annual meeting of shareholders.

Additional Retainer for Chairperson and Committee Chairpersons:

          An additional amount will be paid annually within 10 days following each annual

          meeting of shareholders in cash to the following Outside Directors as follows:

                    Chairperson of the
Board                                        $35,000

                    Chairperson of the Audit
Committee                      $20,000

                    Chairperson of the Compensation Committee        $20,000

                    Chairperson of all other
committees                       $10,000

Payment for Meetings:

          Quarterly Meeting Fee:  Each Outside Director will be paid a cash fee of $2,500 for

          each quarterly Board meeting he or she attends (one such Board meeting per year

          may be telephonic).

          Other Meeting Fee:  Each Outside Director will be paid an additional cash fee of

          $1,500 for each Board or committee meeting he or she attends in person or by

          telephone, regardless of whether the meeting is scheduled in conjunction with a

          quarterly Board meeting; provided, that an Outside Director may only be paid for a

          maximum of four meetings on any given day.

Annual Stock Option Grant:

          On the date of each annual meeting of shareholders, commencing with the 2007

          annual meeting of shareholders, each Outside Director (other than the Chairperson

          of the Board) will automatically receive a grant of nonqualified stock options to

          purchase that number of shares of Company common stock with a Black-Scholes

          calculation value approximately equal to $90,000 ($180,000 for the Chairperson of

          the Board) and a per share exercise price equal to the fair market value of the

          Company common stock as of the date of such annual meeting.  The actual number

          of shares subject to the option shall conclusively be determined by the CFO and set

          forth in the stock option award agreement.  The term of the options will be seven

          years and the options will vest at a rate of 1/12th of the grant at every three-month

          anniversary of the date of grant, over a period of three years.  If an Outside

          Director's service with the Board terminates by reason of the Outside Director’s

          death or disability the unvested portion of the options will vest in full and the

          options must be exercised within one year following the date of termination.  If an

          Outside Director's service with the Board terminates by reason of the Outside

          Director’s failure to be renominated or reelected to the Board, then the unvested

          portion of the options will be forfeited at the time of termination, and the vested

          portion of the options must be exercised within one year following the date

          termination.  In the event of termination for any other reason, the unvested portion

          of the options will be forfeited at the time of termination, and the vested portion of

          the options must be exercised within three months of termination.  These and the

          remaining terms of the option grant will be governed by, but shall not supersede,

          the terms of the applicable plan and award agreement pursuant to which it is

          granted.

Initial Stock Option Grant:

          If an Outside Director first becomes an Outside Director at any time other than at

          an annual meeting of shareholders, such director shall receive the annual stock

          option grant described above that an Outside Director is entitled to receive at the

          annual meeting of shareholders.  However, with the unanimous approval of the

          Board, an initial grant (or grants) to an Outside Director may differ from the initial

          grant described herein.

Annual Restricted Stock Award:

          At each annual meeting of shareholders, commencing with the 2007 annual

          meeting of shareholders, each Outside Director (other than the Chairperson of the

          Board) will automatically receive a grant of restricted shares of common stock of

          Company ("Restricted Shares") approximately equal in value to $90,000 ($180,000

          for the Chairperson of the Board) as of the date of grant.  The actual number of

          Restricted Shares shall be determined by the CFO and set forth in the Restricted

          Shares award agreement.  The Restricted Shares granted will vest in full on the

          third anniversary of the date of the grant (the “Vesting Date”), provided that the

          Outside Director has served continuously from the date of grant until the Vesting

          Date.  If an Outside Director's service with the Board terminates by reason of the

          Outside Director’s death, disability or failure to be renominated or reelected to the

          Board, then any unvested Restricted Shares will become vested at the rate of one

          -third of the Restricted Shares vesting for each full year the Outside Director

          served on the Board after the date of grant.  These and the remaining terms of the

          Restricted Shares will be governed by the terms of the applicable plan and award

          agreement.

Stock Ownership Requirement:

In accepting these awards stock options and Restricted Shares, each Outside Director agrees not to sell any shares of Company stock (including shares acquired as a result of the exercise of a stock option) granted hereunder (except to pay the exercise price of
stock options granted hereunder or taxes generated as a result of equity grants under the Policy) until such time as his or her ownership of shares of Company stock equals or exceeds five times the then Annual Retainer, as conclusively determined by the CFO. 
This stock ownership requirement may be waived by the Board, in its sole and absolute discretion, at any time, and from time to time.  In addition, this requirement shall terminate with respect to an Outside Director when such director ceases to serve on the
Board.

Director’s and Officer’s Insurance:

The Company will provide D&O insurance in the amount of $35,000,000 for the Outside Directors, unless such insurance is not available on commercially reasonable terms.

Status as Outside Director:

For purposes of the Policy, an Outside Director is any director:  (i)  who is not employed by the Company, and (ii) who satisfies such other criteria for Outside Directors as established from time to time by the Board.

For purposes of the Policy, annual compensation and equity grants will be based on the date the Outside Director is elected to the Board or, in the case of existing Board members, the date on which the Policy is approved by the Board and becomes effective.  In
the case of an existing Board member who becomes an Outside Director as a result of a change in status, the grants will be as of the date the director's status changes to Outside Director.

Amendment or Termination of the Policy:

The Board reserves the right to amend or terminate the Policy at any time or waive any of the provisions generally or specifically.

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