Document:

Exhibit 10.1

Exhibit 10.1

					
	 
	 		 	 
	 
	 	HeartWare International, Inc.
	 	 
	 
	 	Nonstatutory Stock Option Notice	 	Grant No.:________

This Notice evidences the award of nonstatutory stock options (each, an “Option” or
collectively, the “Options”) that have been granted to you, [NAME], subject to the terms of the
attached Nonstatutory Stock Option Agreement (the “Agreement”). The Options entitle you to
purchase shares of common stock, par value US$.001 per share (“Common Stock”), of HeartWare
International, Inc., a Delaware corporation (the “Company”), under the HeartWare International,
Inc. 2008 Stock Incentive Plan (the “Plan”). The number of shares you may purchase and the
exercise price at which you may purchase them are specified below. This Notice constitutes part of
and is subject to the terms and provisions of the Agreement and the Plan, which are incorporated by
reference herein. You must return an executed copy of this Notice to the Company within 30 days of
the date hereof. If you fail to do so, the Options will be null and void.

	 	 	 
	Grant Date: [GRANT DATE]

	 	Number of Shares: [NUMBER]

Exercise Price: [PRICE] per share

Expiration Date: The Options expire at 5:00 p.m. Eastern Time on the last business day
coincident with or prior to the 10th anniversary of the Grant Date (the “Expiration
Date”), unless fully exercised or terminated earlier.

Exercisability Schedule: Subject to the terms and conditions described in the Agreement,
the Options become exercisable in accordance with the schedule below:

	 	(a)	 	25% of the Options become exercisable on the first anniversary of the
Grant Date (the “Initial Vesting Date”), and

	 	(b)	 	25% of the Options become exercisable on each subsequent anniversary of
the Grant Date after the Initial Vesting Date through the fourth anniversary of
the Grant Date.

Acceleration Events: The extent to which you may purchase shares under the Options may be
accelerated in the following circumstances:

	 	•	 	To the extent not already exercisable or previously terminated, your Options
will become 100% exercisable as of the effective date of a Change in Control or
liquidation or dissolution of the Company and as of the date of your death or
your ceasing to be employed by the Company or an Affiliate by reason of
Disability or Retrenchment (as all such foregoing capitalized terms are defined
in the Agreement).

	 	 	 	 	 	 	 
	 	 	HEARTWARE INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Date:
	 	 

	 	 
	 

	 	 	 	 

	 	 

I acknowledge that I have carefully read the attached Agreement and the prospectus for the Plan and
agree to be bound by all of the provisions set forth in those documents. I also consent to
electronic delivery of all notices or other information with respect to the Options or the Company.

	 	 	 	 	 	 	 
	Enclosures:

	 	Nonstatutory Stock Option Agreement
	 	OPTIONEE	 	 
	 

	 	Prospectus for the HeartWare	 	 	 	 
	 

	 	International, Inc. 2008 Stock Incentive Plan	 	 	 	 
	 

	 	Exercise Form	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

Date:
	 	 

 

 

 

Nonstatutory Stock Option Agreement

Under The

HeartWare International, Inc. 2008 Stock Incentive Plan

1. Terminology. Capitalized terms used in this Agreement are defined in the
correlating Stock Option Notice and/or the Glossary at the end of the Agreement.

2. Exercise of Options.

(a) Exercisability. The Options will become exercisable in accordance with the
Exercisability Schedule set forth in the Stock Option Notice, so long as you are in the Service of
the Company from the Grant Date through the applicable exercisability dates. None of the Options
will become exercisable after your Service with the Company ceases, unless the Stock Option Notice
provides otherwise with respect to exercisability that arises as a result of your cessation of
Service.

(b) Right to Exercise. You may exercise the Options, to the extent exercisable, at
any time on or before 5:00 p.m. Eastern Time on the Expiration Date or the earlier termination of
the Options, unless otherwise provided under applicable law. Notwithstanding the foregoing, if at
any time the Administrator determines that the delivery of Shares under the Plan or this Agreement
is or may be unlawful under the laws of any applicable jurisdiction, or Federal, state or foreign
securities laws, the right to exercise the Options or receive Shares pursuant to the Options shall
be suspended until the Administrator determines that such delivery is lawful. Section 3 below
describes certain limitations on exercise of the Options that apply in the event of your death,
Disability, or termination of Service. The Options may be exercised only in multiples of whole
Shares and may not be exercised at any one time as to fewer than one hundred Shares (or such lesser
number of Shares as to which the Options are then exercisable). No fractional Shares will be
issued under the Options.

(c) Exercise Procedure. In order to exercise the Options, you must provide the
following items to the Secretary of the Company or his or her delegate before the expiration or
termination of the Options:

	 	(i)	 	notice, in such manner and form as the
Administrator may require from time to time, specifying the number of
Shares to be purchased under the Options; and

	 	(ii)	 	full payment of the Exercise Price for the
Shares or properly executed, irrevocable instructions, in such manner
and form as the Administrator may require from time to time, to
effectuate a broker-assisted cashless exercise, each in accordance
with Section 2(d) of this Agreement.

An exercise will not be effective until the Secretary of the Company or his or her delegate
receives all of the foregoing items, and such exercise otherwise is permitted under and complies
with all applicable federal, state and foreign securities laws.

(d) Method of Payment. You may pay the Exercise Price by:

	 	(i)	 	delivery of cash, certified or cashier’s
check, money order or other cash equivalent acceptable to the
Administrator in its discretion;

 

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	 	(ii)	 	a broker-assisted cashless exercise in
accordance with Regulation T of the Board of Governors of the Federal
Reserve System through a brokerage firm approved by the
Administrator;

	 	(iii)	 	subject to such limits as the
Administrator may impose from time to time, tender (via actual
delivery or attestation) to the Company of other shares of Common
Stock of the Company which have a Fair Market Value on the date of
tender equal to the Exercise Price;

	 	(iv)	 	subject to such limits as the Administrator
may impose from time to time and applicable legal, regulatory,
listing or other requirements, by authorizing the Company to withhold
a number of Shares to be issued upon exercise of the Options which
Shares have a Fair Market Value equal to the Exercise Price;

	 	(v)	 	any other method approved by the
Administrator; or

	 	(vi)	 	any combination of the foregoing.

(e) Issuance of Shares upon Exercise. The Company shall issue to you the Shares
underlying the Options you exercise as soon as practicable after the exercise date, subject to the
Company’s receipt of the aggregate exercise price and the requisite withholding taxes, if any.
Notwithstanding the foregoing, in the event that (i) you are subject to the Company’s policy
permitting officers and directors to sell shares only during certain “window” periods, in effect
from time to time or you are otherwise prohibited from selling shares of the Company’s Common Stock
in the public market and any Shares issuable to you upon the exercise of your Options are scheduled
to be issued on a day (the “Original Distribution Date”) that does not occur during an open “window
period” applicable to you, as determined by the Company in accordance with such policy, or does not
occur on a date when you are otherwise permitted to sell shares of the Company’s Common Stock in
the open market, (ii) the Shares issuable upon exercise of your Options are not covered by a
contract, instruction or plan that complies with Rule 10b5-1 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), and (iii) the Company elects to satisfy its tax withholding
obligations by any of the methods set forth in clause (iii), (iv) or (v) of Section 6 below, then
such shares shall not be issued and delivered on such Original Distribution Date and shall instead
be issued and delivered on the first business day of the next occurring open “window period”
applicable to you pursuant to such policy (regardless of whether you are still providing continuous
services at such time) or the next business day when you are not prohibited from selling shares of
the Common Stock in the open market, but in no event later than the fifteenth day of the third
calendar month of the calendar year following the calendar year in which the Original Distribution
Date occurs. In all cases, the issuance and delivery of shares under this Agreement is intended to
comply with Treasury Regulation 1.409A-1(b)(4) and shall be construed and administered in such a
manner.

Upon issuance of such Shares, the Company may deliver such Shares on your behalf
electronically to the Company’s designated stock plan administrator or such other broker-dealer as
the Company may choose at its sole discretion, within reason, or may retain such Shares in
uncertificated book-entry form. Any share certificates delivered will, unless the sale of the
Shares is registered or an exemption from registration is available under applicable federal and
state law, bear a legend restricting transferability of such Shares.

3. Termination of Service.

(a) Termination of Unexercisable Options. If your Service with the Company ceases for
any reason, the Options that are then unexercisable, after giving effect to any exercise
acceleration provisions set forth on the Stock Option Notice, will terminate immediately upon such
cessation.

 

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(b) Exercise Period Following Termination of Service. If your Service with the
Company ceases for any reason other than discharge for Cause, the Options that are then
exercisable, after giving effect to any exercise acceleration provisions set forth on the Stock
Option Notice, will terminate upon the earliest of:

(i) the expiration of 30 days following such cessation, if your Service ceases
on account of (1) your termination by the Company other than a discharge for Cause
or Retrenchment, or (2) your voluntary termination other than for Disability or
death;

(ii) the expiration of 6 months following such cessation, if your Service
ceases on account of your Disability, death or Retrenchment;

(iii) the expiration of 6 months following your death, if your death occurs
during the periods described in clauses (i) or (ii) of this Section 3(b), as
applicable; or

(iv) the Expiration Date.

In the event of your death, the exercisable Options may be exercised by your executor, personal
representative, or the person(s) to whom the Options are transferred by will or the laws of descent
and distribution.

(c) Misconduct. The Options will terminate in their entirety, regardless of whether
the Options are then exercisable, immediately upon your discharge from Service for Cause, or upon
your commission of any of the following acts during the exercise period including following your
termination of Service: (i) fraud on or misappropriation of any funds or property of the Company,
or (ii) your breach of any provision of any employment, non-disclosure, non-competition,
non-solicitation, assignment of inventions, or other similar agreement executed by you for the
benefit of the Company, as determined by the Administrator, which determination will be conclusive.

(d) Change in Status. In the event that your Service is with a business, trade or
entity that, after the Grant Date, ceases for any reason to be part or an Affiliate of the Company,
your Service will be deemed to have terminated for purposes of this Section 3 upon such cessation
if your Service does not continue uninterrupted immediately thereafter with the Company or an
Affiliate of the Company.

4. Nontransferability of Options. These Options and, before exercise, the underlying
Shares are nontransferable otherwise than by will or the laws of descent and distribution and,
during your lifetime, the Options may be exercised only by you or, during the period you are under
a legal disability, by your guardian or legal representative. Except as provided above, the
Options and, before exercise, the underlying Shares may not be assigned, transferred, pledged,
hypothecated, subjected to any “put equivalent position,” “call equivalent position” (as each
preceding term is defined by Rule 16(a)-1 under the Securities Exchange Act of 1934), or short
position, or disposed of in any way (whether by operation of law or otherwise) and shall not be
subject to execution, attachment or similar process.

5. Nonqualified Nature of the Options. The Options are not intended to
qualify as incentive stock options within the meaning of Code section 422, and this Agreement shall
be so construed. You hereby acknowledge that, upon exercise of the Options, you will recognize
compensation income in an amount equal to the excess of the then Fair Market Value of the Shares
over the Exercise Price and must comply with the provisions of Section 6 of this Agreement with
respect to any tax withholding obligations that arise as a result of such exercise.

 

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6. Withholding of Taxes. At the time the Options are exercised, in whole or in part,
or at any time thereafter as requested by the Company, you hereby authorize any required
withholding from the Common Stock issuable to you and/or otherwise agree to make adequate provision
in cash for any sums required to satisfy the federal, state, local and foreign tax withholding
obligations of the Company or any Affiliate which arise in connection with your Options (the
“Withholding Taxes”). Additionally, the Company may, in its sole discretion, satisfy all or any
portion of the Withholding Taxes obligation relating to your Options by any of the following means
or by a combination of such means: (i) withholding from any compensation otherwise payable to you
by the Company; (ii) causing you to tender a cash payment; (iii) subject to any applicable law,
committing to deliver to a broker, determined by the Company in its sole discretion, the number of
Shares issued or otherwise issuable to you in connection with the exercise of the Options necessary
to cover the amount of Withholding Taxes and any “usual and customary” brokerage commissions (the
“Sale to Cover Shares”) so that the broker can sell such Shares on your behalf on the Australian
Securities Exchange or the NASDAQ Stock Market and deliver the proceeds of such sale to the Company
to be used to fund the payment of the Withholding Taxes (a “Sale to Cover Election”); (iv)
permitting you to enter into a “same day sale” commitment with a broker-dealer that is a member of
the Financial Industry Regulatory Authority (a “FINRA Dealer”) whereby you irrevocably elect to
sell a portion of the shares to be delivered under the Agreement to satisfy the Withholding Taxes
and whereby the FINRA Dealer irrevocably commits to forward the proceeds necessary to satisfy the
Withholding Taxes directly to the Company; or (v) withholding shares of Common Stock from the
shares of Common Stock issued or otherwise issuable to you in connection with the Options with a
Fair Market Value (measured as of the date shares of Common Stock are issued to you pursuant to
Section 2(e)) equal to the amount of such Withholding Taxes; provided, however, that the number of
such shares of Common Stock so withheld shall not exceed, by more than the Fair Market Value of one
share of Common Stock, the amount necessary to satisfy the Company’s required tax withholding
obligations using the minimum statutory withholding rates for federal, state, local and foreign tax
purposes, including payroll taxes, that are applicable to supplemental taxable income. By
accepting this award of Options, in the event the Company, in its sole discretion, makes a Sale to
Cover Election, you hereby (a) authorize the Company to deliver the Sale to Cover Shares to a
brokerage account opened either in your name, the name of the Company as the nominal holder of the
Sale to Cover Shares for your benefit or in such manner as is suggested by the broker; (b)
authorize the broker to sell, on your behalf, the Sale to Cover Shares on the Australian Securities
Exchange or the NASDAQ Stock at the market price per share at the time of such sale under the same
or similar methods, terms and conditions as the broker has then agreed to sell other shares of the
Common Stock in its capacity as “sales service agent” (or an agent thereof) to the Company and to
deliver the proceeds to the Company to be used to fund the payment of the Withholding Taxes; (c)
grant to the Company an irrevocable limited power of attorney to: execute, on your behalf, any and
all documents that may be required by the broker in connection with the Sale to Cover Election;
prepare, file and execute, on your behalf, any Form 144 filings (a “Form 144 Filing”) or other
documents that it believes may be necessary and/or desirable to demonstrate compliance with the
“safe harbor” provisions of Rule 144 (“Rule 144”) promulgated pursuant to the Securities Act of
1933, as amended (the “Securities Act”); and prepare, execute and file, on your behalf, any
documents that it believes may be necessary or desirable to demonstrate that your sale of the Sale
to Cover Shares satisfies the “safe harbor” provisions of Regulation S promulgated pursuant to the
Securities Act (“Regulation S”); (d) agree to execute as soon as possible upon request any account
opening or other documents required by the Company or the broker to evidence your consent to the
Sale to Cover Election; (e) agree to promptly furnish to the Company any information that the
Company reasonably requests to assist the Company complete any Form 144 Filing; and (f) agree to
promptly furnish to the Company any written representations and/or covenants that the Company
reasonably requests in order to have removed any restrictive legends affixed to the Sale to Cover
Shares. You further agree to take any and all actions required of you by the Company to assist
you, the Company, the sales service agent or the broker to demonstrate that your sale of the Sale
to Cover Shares satisfies the “safe harbor” provisions of Rule 144, Regulation S and/or any other
exemptions from the registration requirements of Section 5 of the Securities Act and

 

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any applicable
U.S. state laws. You further acknowledge that the foregoing written instruction is intended to
constitute a written instruction pursuant to Rule 10b5-1 of the Exchange Act. You shall be
responsible for payment of any brokerage commission relating to the Sale to Cover Shares. By
accepting this award of Options, you hereby expressly agree that the Company shall not be liable to
you and you agree to indemnify and hold the Company harmless from any acts it takes in furtherance
of the consummation of the Sale to Cover Election as generally described above. Unless the tax
withholding obligations of the Company and/or any Affiliate are satisfied, the Company shall have
no obligation to deliver to you any Common Stock. In the event the Company’s obligation to
withhold arises prior to the delivery to you of Common Stock or it is determined after the delivery
of Common Stock to you that the amount of the Company’s withholding obligation was greater than the
amount withheld by the Company, you agree to indemnify and hold the Company harmless from any
failure by the Company to withhold the proper amount.

7. Adjustments. The Administrator may make various adjustments to your Options,
including adjustments to the number and type of securities subject to the Options and the Exercise
Price, in accordance with the terms of the Plan. In the event of any transaction resulting in a
Change in Control of the Company, the outstanding Options will terminate upon the effective time of
such Change in Control unless provision is made in connection with the transaction for the
continuation or assumption of such Options by, or for the substitution of the equivalent awards of,
the surviving or successor entity or a parent thereof. In the event of such termination, you will
be permitted, immediately before the Change in Control, to exercise or convert all portions of such
Options that are then exercisable or which become exercisable upon or prior to the effective time
of the Change in Control.

8. Non-Guarantee of Employment or Service Relationship. Nothing in the Plan or this
Agreement will alter your at-will or other employment status or other service relationship with the
Company, nor be construed as a contract of employment or service relationship between you and the
Company, or as a contractual right for you to continue in the employ of, or in a service
relationship with, the Company for any period of time, or as a limitation of the right of the
Company to discharge you at any time with or without Cause or notice and whether or not such
discharge results in the failure of any of the Options to become exercisable or any other adverse
effect on your interests under the Plan.

9. No Rights as a Stockholder. You shall not have any of the rights of a stockholder
with respect to the Shares until such Shares have been issued to you upon the due exercise of the
Options. No adjustment will be made for dividends or distributions or other rights for which the
record date is prior to the date such Shares are issued.

10. The Company’s Rights. The existence of the Options shall not affect in any way
the right or power of the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issue of bonds, debentures,
preferred or other stocks with preference ahead of or convertible into, or otherwise affecting the
Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale
or transfer of all or any part of the Company’s assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise.

11. Restrictions on Issuance of Shares. The issuance of shares of Common Stock upon
exercise of the Options shall be subject to and in compliance with all applicable requirements of
federal, state, or foreign law with respect to such securities. No shares of Common Stock may be
issued hereunder if the issuance of such shares would constitute a violation of any applicable
federal, state, or foreign securities laws or other law or regulations or the requirements of any
stock exchange or market system upon which the Common Stock may then be listed. The inability of
the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by
the Company’s legal counsel to be necessary to the lawful issuance of any shares subject to the
Options shall relieve the Company of any liability in respect of the failure to issue such shares
as to which such requisite authority shall not have been obtained. As a condition to the exercise
of the Options, the Company may require you to satisfy any qualifications that may be necessary or
appropriate, to evidence compliance with any applicable law or regulation, and to make any
representation or warranty with respect thereto as may be requested by the Company.

 

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12. Notices. All notices and other communications made or given pursuant to this
Agreement shall be given in writing and shall be deemed effectively given upon receipt or, in the
case of notices delivered by the Company to you, five (5) days after deposit in the United States
mail, postage prepaid, addressed to you at the last address you provided to the Company, or in the
case of notices delivered to the Company by you, addressed to the Administrator, care of the
Company for the attention of its Secretary at its principal executive office or, in either case, if
the receiving party consents in advance, transmitted and received via telecopy or via such other
electronic transmission mechanism as may be available to the parties. Notwithstanding the
foregoing, the Company may, in its sole discretion, decide to deliver any documents related to
participation in the Plan and this award of Options by electronic means or to request your consent
to participate in the Plan or accept this award of Options by electronic means. You hereby consent
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.

13. Entire Agreement. This Agreement, together with the correlating Stock Option
Notice and the Plan, contain the entire agreement between you and the Company with respect to the
Options. Any oral or written agreements, representations, warranties, written inducements, or
other communications made prior to the execution of this Agreement with respect to the Options
shall be void and ineffective for all purposes.

14. Amendment. This Agreement may be amended from time to time by the Administrator
in its discretion; provided, however, that this Agreement may not be modified in a
manner that would have a materially adverse effect on the Options or Shares as determined in the
discretion of the Administrator, except as provided in the Plan or in a written document signed by
you and the Company.

15. Conformity with Plan. This Agreement is intended to conform in all respects with,
and is subject to all applicable provisions of, the Plan. Any conflict between the terms of this
Agreement and the Plan shall be resolved in accordance with the terms of the Plan. In the event of
any ambiguity in this Agreement or any matters as to which this Agreement is silent, the Plan shall
govern. A copy of the Plan is available upon request to the Administrator.

16. Section 409A. This Agreement and the Options granted hereunder are intended to
comply with, or otherwise be exempt from, Section 409A of the Code. Nothing in the Plan or this
Agreement shall be construed as including any feature for the deferral of compensation other than
the deferral of recognition of income until the exercise of the Options. Should any provision of
the Plan or this Agreement be found not to comply with, or otherwise be exempt from, the provisions
of Section 409A of the Code, it may be modified and given effect, in the sole discretion of the
Administrator and without requiring your consent, in such manner as the Administrator determines to
be necessary or appropriate to comply with, or to effectuate an exemption from, Section 409A of the
Code. The foregoing, however, shall not be construed as a guarantee by the Company of any
particular tax effect to you.

17. No Obligation to Minimize Taxes. The Company has no duty or obligation to
minimize the tax consequences to you of this award of Options and shall not be liable to you for
any adverse tax consequences to you arising in connection with this award. You are hereby advised
to consult with your own personal tax, financial and/or legal advisors regarding the tax
consequences of this award and by signing the Notice, you have agreed that you have done so or
knowingly and voluntarily declined to do so.

 

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18. Effect on Other Employee Benefit Plans. The value of the Options subject to this
Agreement shall not be included as compensation, earnings, salaries, or other similar terms used
when calculating your benefits under any employee benefit plan sponsored by the Company or any
Affiliate, except as such plan otherwise expressly provides. The Company expressly reserves its
rights to amend, modify, or terminate any of the Company’s or any Affiliate’s employee benefit
plans.

19. Governing Law. The validity, construction, and effect of this Agreement, and of
any determinations or decisions made by the Administrator relating to this Agreement, and the
rights of any and all persons having or claiming to have any interest under this Agreement, shall
be determined exclusively in accordance with the laws of the State of Delaware, without regard to
its provisions concerning the applicability of laws of other jurisdictions. Any suit with respect
hereto will be brought in the federal or state courts in the district which includes the city or
town in which the Company’s principal executive office is located, and you hereby agree and submit
to the personal jurisdiction and venue thereof.

20. Headings. The headings in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

21. Electronic Delivery of Documents. By your signing the Notice, you (i) consent to
the electronic delivery of this Agreement, all information with respect to the Plan and the
Options, and any reports of the Company provided generally to the Company’s stockholders; (ii)
acknowledge that you may receive from the Company a paper copy of any documents delivered
electronically at no cost to you by contacting the Company by telephone or in writing; (iii)
further acknowledge that you may revoke your consent to the electronic delivery of documents at any
time by notifying the Company of such revoked consent by telephone, postal service or electronic
mail; and (iv) further acknowledge that you understand that you are not required to consent to
electronic delivery of documents.

22. No Future Entitlement. By your signing the Notice, you acknowledge and agree
that: (i) the grant of a stock option award is a one-time benefit which does not create any
contractual or other right to receive future grants of stock options, or compensation in lieu of
stock options, even if stock options have been granted repeatedly in the past; (ii) all
determinations with respect to any such future grants and the terms thereof will be at the sole
discretion of the Administrator; (iii) the value of the Options is an extraordinary item of
compensation which is outside the scope of your employment contract, if any; (iv) the value of the
Options is not part of normal or expected compensation or salary for any purpose, including, but
not limited to, calculating any termination, severance, resignation, redundancy, end of service
payments or similar payments, or bonuses, long-service awards, pension or retirement benefits;
(v) the vesting of the Options ceases upon termination of Service with the Company or transfer of
employment from the Company, or other cessation of eligibility for any reason, except as may
otherwise be explicitly provided in this Agreement; (vi) the Company does not guarantee any future
value of the Options; and (vii) no claim or entitlement to compensation or damages arises if the
Options decrease or do not increase in value and you irrevocably release the Company from any such
claim that does arise.

 

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23. Personal Data. For the exclusive purpose of implementing, administering and
managing the Options, you, by execution of the Notice, consent to the collection, receipt, use,
retention and transfer, in electronic or other form, of your personal data by and among the Company
and its third party vendors. You understand that personal data (including but not limited to,
name, home address, telephone number, employee number, employment status, social security number,
tax identification number, date of birth, nationality, job and payroll location, data for tax
withholding purposes and Options awarded, cancelled, vested and unvested) may be transferred to
third parties assisting in the implementation, administration and management of the Options and you
expressly authorize such transfer as well as the retention, use, and the subsequent transfer of the
data by the recipient(s). You understand that these recipients may be located in your country or
elsewhere, and that the recipient’s country may have different data privacy laws and protections
than your country. You understand that data will be held only as long as is necessary to
implement, administer and manage the Options. You understand that you may, at any time, request a
list with the names and addresses of any potential recipients of the personal data, 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 Company’s Secretary. You understand, however, that refusing or
withdrawing your consent may affect your ability to accept a stock option award.

{Glossary begins on next page}

 

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GLOSSARY

(a) “Administrator” means the Board of Directors of HeartWare International, Inc. or such
committee or committees appointed by the Board to administer the Plan.

(b) “Affiliate” means any entity, whether now or hereafter existing, which controls, is
controlled by, or is under common control with, HeartWare International, Inc. For this purpose,
“control” means ownership of 50% or more of the total combined voting power or value of all classes
of stock or interests of the entity.

(c) “Cause” has the meaning ascribed to such term or words of similar import in your written
employment or service contract with the Company as in effect at the time at issue and, in the
absence of such agreement or definition, means your (i) conviction of, or plea of nolo contendere
to, a felony or crime involving moral turpitude; (ii) fraud on or misappropriation of any funds or
property of the Company, any affiliate, customer or vendor; (iii) personal dishonesty,
incompetence, willful misconduct, willful violation of any law, rule or regulation (other than
minor traffic violations or similar offenses) or breach of fiduciary duty which involves personal
profit; (iv) willful misconduct in connection with your duties or willful failure to perform your
responsibilities in the best interests of the Company; (v) illegal use or distribution of drugs;
(vi) violation of any Company rule, regulation, procedure or policy; or (vii) breach of any
provision of any employment, non-disclosure, non-competition, non-solicitation or other similar
agreement executed by you for the benefit of the Company, all as determined by the Administrator,
which determination will be conclusive.

(d) “Change in Control” means: a (i) Change in Ownership of the Company, (ii) Change in
Effective Control of the Company, or (iii) Change in the Ownership of Assets of the Company, all as
described herein and construed in accordance with Code section 409A.

(i) A Change in Ownership of the Company shall occur on the date that any one Person
acquires, or Persons Acting as a Group acquire, ownership of the capital stock of the
Company that, together with the stock held by such Person or Group, constitutes more than
50% of the total fair market value or total voting power of the capital stock of the
Company. However, if any one Person is, or Persons Acting as a Group are, considered to own
more than 50% of the total fair market value or total voting power of the capital stock of
the Company, the acquisition of additional stock by the same Person or Persons Acting as a
Group is not considered to cause a Change in Ownership of the Company or to cause a Change
in Effective Control of the Company (as described below). An increase in the percentage of
capital stock owned by any one Person, or Persons Acting as a Group, as a result of a
transaction in which the Company acquires its stock in exchange for property will be
treated as an acquisition of stock.

(ii) A Change in Effective Control of the Company shall occur on the date a majority
of members of the Company’s Board is replaced during any 12-month period by directors whose
appointment or election is not endorsed by a majority of the members of the Company’s Board
before the date of the appointment or election.

(iii) A Change in the Ownership of Assets of the Company shall occur on the date that
any one Person acquires, or Persons Acting as a Group acquire (or has or have acquired
during the 12-month period ending on the date of the most recent acquisition by such Person
or Persons), assets from the Company that have a total gross fair market value equal to or
more than 51% of the total gross fair market value of all of the assets of the Company
immediately before such acquisition or acquisitions. For this purpose, gross fair market
value means the value of the assets of the Company, or the value of the assets being
disposed of, determined without regard to any liabilities associated with such assets.

 

- 9 -

 

The following rules of construction apply in interpreting the definition of Change in
Control:

(A) A Person means any individual, entity or group within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended, other than
employee benefit plans sponsored or maintained by the Company and by entities controlled by
the Company or an underwriter of the capital stock of the Company in a registered public
offering.

(B) Persons will be considered to be Persons Acting as a Group (or Group) if they are
owners of a corporation that enters into a merger, consolidation, purchase or acquisition
of stock, or similar business transaction with the corporation. If a Person owns stock in
both corporations that enter into a merger, consolidation, purchase or acquisition of
stock, or similar transaction, such shareholder is considered to be acting as a Group with
other shareholders only with respect to the ownership in that corporation before the
transaction giving rise to the change and not with respect to the ownership interest in the
other corporation. Persons will not be considered to be acting as a Group solely because
they purchase assets of the same corporation at the same time or purchase or own stock of
the same corporation at the same time, or as a result of the same public offering.

(C) A Change in Control shall not include a transfer to a related person as described
in Code section 409A or a public offering of capital stock of the Company.

(D) For purposes of this definition of Change in Control, Code section 318(a) applies
to determine stock ownership. Stock underlying a vested option is considered owned by the
individual who holds the vested option (and the stock underlying an unvested option is not
considered owned by the individual who holds the unvested option). For purposes of the
preceding sentence, however, if a vested option is exercisable for stock that is not
substantially vested (as defined by Treasury Regulation section 1.83-3(b) and (j)), the
stock underlying the option is not treated as owned by the individual who holds the option.

(e) “Common Stock” means the common stock, US$.001 par value per share, of HeartWare
International, Inc.

(f) “Company” includes HeartWare International, Inc. and its Affiliates, except where the
context otherwise requires. For purposes of determining whether a Change in Control has occurred,
Company shall mean only HeartWare International, Inc.

(g) “Disability” means your permanent inability, by reason of physical condition, mental
illness or accident, to perform substantially all of the duties of the position in which you have
been employed or appointed (as determined by the Administrator). The Administrator may require
such proof of Total and Permanent Disability as the Administrator in its sole discretion deems
appropriate and the Administrator’s good faith determination as to whether you are totally and
permanently disabled will be final and binding on all parties concerned.

(h) “Fair Market Value” has the meaning set forth in the Plan. The Plan generally defines
Fair Market Value to mean the closing price per share of Common Stock on the relevant date on the
principal exchange or market on which the Common Stock is then listed or admitted to trading or, if
no sale is reported for that date, the last preceding day on which a sale was reported.

 

- 10 -

 

(i) “Good Reason” has the meaning ascribed to such term or words of similar import in your
written employment or service contract with the Company as in effect at the time at issue. In the
absence of such agreement or definition, Good Reason means any requirement that the you relocate,
by more than 30 miles, the principal location from which you perform services for the Company as
compared to such location immediately prior to the occurrence of the Change in Control.

(j) “Plan” means the HeartWare International, Inc. 2008 Stock Incentive Plan, as amended from
time to time.

(k) “Retrenchment” means a termination of your employment where the employer company has made
a definite decision expressly for the purpose of this provision that the employer no longer wishes
the job you have been doing to be done by anyone and this is not due to ordinary or customary
turnover of labour or your performance or any breach of your terms of employment, and includes a
situation where:

(i) you cease to be employed by the Company because the employer company ceases to be
an Affiliate of the Company; or

(ii) the business in which you are engaged is transferred outside the Company and its
Affiliates.

(l) “Service” means your employment, service as a non-executive director, or other service
relationship with the Company and its Affiliates. Your Service will be considered to have ceased
with the Company and its Affiliates if, immediately after a sale, merger, or other corporate
transaction, the trade, business, or entity with which you are employed or otherwise have a service
relationship is not HeartWare International, Inc. or an Affiliate of HeartWare International, Inc.

(m) “Shares” mean the shares of Common Stock underlying the Options.

(n) “Stock Option Notice” means the written notice evidencing the award of the Options that
correlates with and makes up a part of this Agreement.

(o) “You”; “Your”. “You” or “your” means the recipient of the award of Options as reflected
on the Stock Option Notice. Whenever the Agreement refers to “you” under circumstances where the
provision should logically be construed, as determined by the Administrator, to apply to your
estate, personal representative, or beneficiary to whom the Options may be transferred by will or
by the laws of descent and distribution, the word “you” shall be deemed to include such person.

 

- 11 -

 

EXERCISE FORM

Administrator of the HeartWare International, Inc. 2008 Stock Incentive Plan

c/o Office of the Corporate Secretary

HeartWare International, Inc.

Suite 101

205 Newbury Street

Framingham, MA 01701

Gentlemen:

I hereby exercise the Options granted to me on
 _________________, _____, by HeartWare
International, Inc., a Delaware corporation, subject to all the terms and provisions of the
applicable grant agreement and of the HeartWare International, Inc. 2008 Stock Incentive Plan, and
notify you of my desire to purchase
 _____ 
shares of Common Stock of the Company at a price
of $________  per share pursuant to the exercise of said Options.

Total Amount Enclosed: $                    

	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	(Optionee)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Received by HeartWare International, Inc. on	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	_____________________________, ____	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:Exhibit 10.2

Exhibit 10.2

Restricted Stock Units Notice

under the

HeartWare International, Inc.

2008 Stock Incentive Plan

	 	 	 	 	 
	Name of Grantee:
	 	 	 	 
	 

	 	 

	 	 

This Notice evidences the award of restricted stock units (each, an “RSU,” and collectively, the
“RSUs”) of HeartWare International, Inc., a Delaware corporation (the “Company”), that have been
granted to you pursuant to the HeartWare International, Inc. 2008 Stock Incentive Plan (the “Plan”)
and conditioned upon your agreement to the terms of the attached Restricted Stock Units Agreement
(the “Agreement”). This Notice constitutes part of and is subject to the terms and provisions of
the Agreement and the Plan, which are incorporated by reference herein. Each RSU is equivalent in
value to one share of the Company’s Common Stock and represents the Company’s commitment to issue
one share of the Company’s Common Stock at a future date, subject to the terms of the Agreement and
the Plan.

	 	 	 	 	 
	Grant Date:
	 	 	 	 
	 

	 	 

	 	 

					
	Number of RSUs:
	 	 	 	 
	 

	 	 

	 	 

Vesting Schedule: All of the RSUs are nonvested and forfeitable as of the Grant Date. So
long as your Service (as defined in the Agreement) is continuous from the Grant Date through the
applicable date upon which vesting is scheduled to occur:

	 	•	 	33.3% of the RSUs will vest and become nonforfeitable on the first anniversary
of the Grant Date; and

	 	•	 	33.3% of the RSUs will vest and become nonforfeitable on each subsequent
anniversary of the Grant Date through the third anniversary of such date.

To the extent not already vested or previously forfeited, your RSUs will become 100% vested and
nonforfeitable as of the effective date of a Change in Control or liquidation or dissolution of the
Company and as of the date of your death or your ceasing to be employed by the Company or an
Affiliate by reason of Disability or Retrenchment (as all such foregoing capitalized terms are
defined in the Agreement). Except in the case of your cessation of Service in connection with a
Change in Control or your death, Disability or Retrenchment, none of the RSUs will become vested
and nonforfeitable after your Service ceases.

	 	 	 	 	 	 	 
	 

HeartWare International, Inc.

	 	 
	 	 

Date
	 	 

I acknowledge that I have carefully read the Agreement and the prospectus for the Plan. I agree to
be bound by all of the provisions set forth in those documents. I also consent to electronic
delivery of all notices or other information with respect to the RSUs or the Company.

	 	 	 	 	 	 	 
	 

Signature of Grantee

	 	 
	 	 

Date
	 	 

Standard RSU Agreement — US (2009)

 

 

 

Restricted Stock Units Agreement

under the

HeartWare International, Inc.

2008 Stock Incentive Plan

1. Terminology. Unless otherwise provided in this Agreement, capitalized terms used
herein are defined in the Glossary at the end of this Agreement.

2. Vesting. All of the RSUs are nonvested and forfeitable as of the Grant Date. So
long as your Service is continuous from the Grant Date through the applicable date upon which
vesting is scheduled to occur, the RSUs will become vested and nonforfeitable in accordance with
the vesting schedule set forth in the Notice. Vesting upon achievement of performance criteria, if
applicable, requires a declaration by the Company that an RSU has vested, but does not require any
action or election by you. The Company will advise you in writing when any of your RSUs have
vested. Except for the circumstances, if any, described on the Notice, none of the RSUs will
become vested and nonforfeitable after your Service ceases.

3. Termination of Employment or Service. Unless otherwise provided on the Notice, if
your Service with the Company ceases for any reason, all RSUs that are not then vested and
nonforfeitable will be forfeited to the Company immediately and automatically upon such cessation
without payment of any consideration therefore and you will have no further right, title or
interest in or to such RSUs or the underlying shares of Common Stock.

4. Restrictions on Transfer. Neither this Agreement nor any of the RSUs may be
assigned, transferred, pledged, hypothecated or disposed of in any way, whether by operation of law
or otherwise, and the RSUs shall not be subject to execution, attachment or similar process. All
rights with respect to this Agreement and the RSUs shall be exercisable during your lifetime only
by you or your guardian or legal representative. Notwithstanding the foregoing, the RSUs may be
transferred upon your death by last will and testament or under the laws of descent and
distribution.

5. Settlement of RSUs.

(a) Manner of Settlement. You are not required to make any monetary payment (other
than applicable tax withholding, if required) as a condition to settlement of the RSUs. The
Company will issue to you, in settlement of your RSUs and subject to the provisions of Section 6
below, the number of whole shares of Common Stock that equals the number of whole RSUs that become
vested, and such vested RSUs will terminate and cease to be outstanding upon such issuance of the
shares. Upon issuance of such shares, the Company will determine the form of delivery (e.g., a
stock certificate or electronic entry evidencing such shares) and may deliver such shares on your
behalf electronically to the Company’s designated stock plan administrator or such other
broker-dealer as the Company may choose at its sole discretion, within reason. Any share
certificates delivered will, unless the sale of the shares is registered or an exemption from
registration is available under applicable federal and state law, bear a legend restricting
transferability of such shares.

(b) Timing of Settlement. Your RSUs will be settled by the Company, via the issuance
of Common Stock as described herein, on the date that the RSUs become vested and nonforfeitable.
However, if a scheduled issuance date falls on a Saturday, Sunday or federal holiday, such issuance
date shall instead fall on the next following day that the principal executive offices of the
Company are open for business. Notwithstanding the foregoing, in the event that (i) you are
subject to the Company’s policy permitting officers and directors to sell shares only during
certain “window” periods, in effect from time to time or you are otherwise prohibited from selling
shares of the Company’s Common Stock in the public market and any shares covered by your RSUs are
scheduled to be issued on a day (the “Original Distribution Date”) that does not occur during an
open “window period” applicable to you, as determined by the Company in accordance with such
policy, or does not occur on a date when you are otherwise permitted to sell shares of the
Company’s Common Stock in the open market, (ii) the shares covered by your RSUs are not covered by
a contract, instruction or plan that complies with Rule 10b5-1 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), and (iii) the Company elects to satisfy its tax withholding
obligations by any of the

Standard RSU Agreement — US (2009)

 

 

 

methods
set forth in clause (iii), (iv) or (v) of Section 6 below, then such shares shall not be issued and delivered on such Original Distribution Date
and shall instead be issued and delivered on the first business day of the next occurring open
“window period” applicable to you pursuant to such policy (regardless of whether you are still
providing continuous services at such time) or the next business day when you are not prohibited
from selling shares of the Company’s Common Stock in the open market, but in no event later than
the fifteenth day of the third calendar month of the calendar year following the calendar year in
which the Original Distribution Date occurs. In all cases, the issuance and delivery of shares
under this Agreement is intended to comply with Treasury Regulation 1.409A-1(b)(4) and shall be
construed and administered in such a manner.

6. Tax Withholding. On or before the time you receive a distribution of the shares
subject to your RSUs, or at any time thereafter as requested by the Company, you hereby authorize
any required withholding from the Common Stock issuable to you and otherwise agree to make adequate
provision in cash for any sums required to satisfy the federal, state, local and foreign tax
withholding obligations of the Company or any Affiliate which arise in connection with your RSUs
(the “Withholding Taxes”). Additionally, the Company may, in its sole discretion, satisfy all or
any portion of the Withholding Taxes obligation relating to your RSUs by any of the following means
or by a combination of such means: (i) withholding from any compensation otherwise payable to you
by the Company; (ii) causing you to tender a cash payment; (iii) delivering to a broker, determined
by the Company in its sole discretion, the number of shares issued or otherwise issuable to you in
connection with the RSUs necessary to cover the amount of Withholding Taxes and any “usual and
customary” brokerage commissions (the “Sale to Cover Shares”) so that the broker can sell such
shares on your behalf on the Australian Securities Exchange or the NASDAQ Stock Market and deliver
the proceeds of such sale to the Company to be used to fund the payment of the Withholding Taxes (a
“Sale to Cover Election”); (iv) permitting you to enter into a “same day sale” commitment
with a broker-dealer that is a member of the Financial Industry Regulatory Authority (a “FINRA
Dealer”) whereby you irrevocably elect to sell a portion of the shares to be delivered under the
Agreement to satisfy the Withholding Taxes and whereby the FINRA Dealer irrevocably commits to
forward the proceeds necessary to satisfy the Withholding Taxes directly to the Company; or
(v) withholding shares of Common Stock from the shares of Common Stock issued or otherwise issuable
to you in connection with the RSUs with a Fair Market Value (measured as of the date shares of
Common Stock are issued to you pursuant to Section 5) equal to the amount of such Withholding
Taxes; provided, however, that the number of such shares of Common Stock so withheld shall not
exceed, by more than the Fair Market Value of one share of Common Stock, the amount necessary to
satisfy the Company’s required tax withholding obligations using the minimum statutory withholding
rates for federal, state, local and foreign tax purposes, including payroll taxes, that are
applicable to supplemental taxable income. By accepting this award of RSUs, in the event the
Company, in its sole discretion, makes a Sale to Cover Election, you hereby (a) authorize the
Company to deliver the Sale to Cover Shares to a brokerage account opened either in your name, the
name of the Company as the nominal holder of the Sale to Cover Shares for your benefit or in such
manner as is suggested by the broker; (b) authorize the broker to sell, on your behalf, the Sale to
Cover Shares on the Australian Securities Exchange or the NASDAQ Stock at the market price per
share at the time of such sale under the same or similar methods, terms and conditions as the
broker has then agreed to sell other shares of the Common Stock in its capacity as “sales service
agent” (or an agent thereof) to the Company and to deliver the proceeds to the Company to be used
to fund the payment of the Withholding Taxes; (c) grant to the Company an irrevocable limited power
of attorney to: execute, on your behalf, any and all documents that may be required by the broker
in connection with the Sale to Cover Election; prepare, file and execute, on your behalf, any Form
144 filings (a “Form 144 Filing”) or other documents that it believes may be necessary and/or
desirable to demonstrate compliance with the “safe harbor” provisions of Rule 144 (“Rule 144”)
promulgated pursuant to the Securities Act of 1933, as amended (the “Securities Act”); and prepare,
execute and file, on your behalf, any documents that it believes may be necessary or desirable to
demonstrate that your sale of the Sale to Cover Shares satisfies the
“safe harbor” provisions of
Regulation S promulgated pursuant to the Securities Act (“Regulation S”); (d) agree to execute as
soon as possible upon request any account opening or other documents required by the Company or the
broker to evidence your consent to the Sale to Cover Election; (e) agree to promptly furnish to the
Company any information that the Company reasonably requests to assist the Company complete any
Form 144 Filing; and (f) agree to promptly furnish to the Company any written representations
and/or covenants that the Company reasonably requests in order to have removed any restrictive
legends affixed to the Sale to Cover Shares. You further agree to take any and all actions
required of you by the Company to assist you, the Company, the sales service agent or the broker to
demonstrate that your sale of the Sale to Cover Shares

Standard RSU Agreement — US (2009)

 

3

 

satisfies
the “safe harbor” provisions of Rule 144, Regulation S and/or any other exemptions from the
registration requirements of Section 5 of the Securities Act and any applicable U.S. state laws.
You further acknowledge that the foregoing written instruction is intended to constitute a written
instruction pursuant to Rule 10b5-1 of the Exchange Act. You shall be responsible for payment of
any brokerage commission relating to the Sale to Cover Shares. By accepting this award of RSUs,
you hereby expressly agree that the Company shall not be liable to you and you agree to indemnify
and hold the Company harmless from any acts it takes in furtherance of the consummation of the Sale
to Cover Election as generally described above. Unless the tax withholding obligations of the
Company and/or any Affiliate are satisfied, the Company shall have no obligation to deliver to you
any Common Stock. In the event the Company’s obligation to withhold arises prior to the delivery
to you of Common Stock or it is determined after the delivery of Common Stock to you that the
amount of the Company’s withholding obligation was greater than the amount withheld by the Company,
you agree to indemnify and hold the Company harmless from any failure by the Company to withhold
the proper amount.

7. Adjustments for Corporate Transactions and Other Events.

(a) Stock Dividend, Stock Split and Reverse Stock Split. Upon a stock dividend of, or
stock split or reverse stock split affecting, the Common Stock, the number of outstanding RSUs
shall, without further action of the Administrator, be adjusted to reflect such event; provided,
however, that any fractional RSUs resulting from any such adjustment shall be eliminated.
Adjustments under this paragraph will be made by the Administrator, whose determination as to what
adjustments, if any, will be made and the extent thereof will be final, binding and conclusive.

(b) Merger, Consolidation and Other Events. If the Company shall be the surviving or
resulting corporation in any merger or consolidation and the Common Stock shall be converted into
other securities, the RSUs shall pertain to and apply to the securities to which a holder of the
number of shares of Common Stock subject to the RSUs would have been entitled. If the stockholders
of the Company receive by reason of any distribution in total or partial liquidation or pursuant to
any merger of the Company or acquisition of its assets, securities of another entity, or other
property (including cash), then the rights of the Company under this Agreement shall inure to the
benefit of the Company’s successor, and this Agreement shall apply to the securities or other
property (including cash) to which a holder of the number of shares of Common Stock subject to the
RSUs would have been entitled, in the same manner and to the same extent as the RSUs.

8. Non-Guarantee of Employment or Service Relationship. Nothing in the Plan or this
Agreement shall alter your at-will or other employment status or other service relationship with
the Company, nor be construed as a contract of employment or service relationship between the
Company and you, or as a contractual right of you to continue in the employ of, or in a service
relationship with, the Company for any period of time, or as a limitation of the right of the
Company to discharge you at any time with or without cause or notice and whether or not such
discharge results in the forfeiture of any nonvested and forfeitable RSUs or any other adverse
effect on your interests under the Plan.

9. Rights as Stockholder. You shall not have any of the rights of a stockholder with
respect to any shares of Common Stock that may be issued in settlement of the RSUs until such
shares of Common Stock have been issued to you. No adjustment shall be made for dividends,
distributions, or other rights for which the record date is prior to the date such shares are
issued, except as provided in Section 7(d) of the Plan.

10. The Company’s Rights. The existence of the RSUs shall not affect in any way the
right or power of the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations, or other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issue of bonds, debentures,
preferred or other stocks with preference ahead of or convertible into, or otherwise affecting the
Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale
or transfer of all or any part of the Company’s assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise.

Standard RSU Agreement — US (2009)

 

4

 

11. Restrictions on Issuance of Shares. The issuance of shares of Common Stock upon
settlement of the RSUs shall be subject to and in compliance with all applicable requirements of
federal, state, or foreign law with respect to such securities. No shares of Common Stock may be
issued hereunder if the issuance of such shares would constitute a violation of any applicable
federal, state, or foreign securities laws or other law or regulations or the requirements of any
stock exchange or market system upon which the Common Stock may then be listed. The inability of
the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by
the Company’s legal counsel to be necessary to the lawful issuance of any shares subject to the
RSUs shall relieve the Company of any liability in respect of the failure to issue such shares as
to which such requisite authority shall not have been obtained. As a condition to the settlement
of the RSUs, the Company may require you to satisfy any qualifications that may be necessary or
appropriate, to evidence compliance with any applicable law or regulation, and to make any
representation or warranty with respect thereto as may be requested by the Company.

12. Notices. All notices and other communications made or given pursuant to this
Agreement shall be given in writing and shall be deemed effectively given upon receipt or, in the
case of notices delivered by the Company to you, five (5) days after deposit in the United States
mail, postage prepaid, addressed to you at the last address you provided to the Company, or in the
case of notices delivered to the Company by you, addressed to the Administrator, care of the
Company for the attention of its Secretary at its principal executive office or, in either case, if
the receiving party consents in advance, transmitted and received via telecopy or via such other
electronic transmission mechanism as may be available to the parties. Notwithstanding the
foregoing, the Company may, in its sole discretion, decide to deliver any documents related to
participation in the Plan and this award of RSUs by electronic means or to request your consent to
participate in the Plan or accept this award of RSUs by electronic means. You hereby consent 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.

13. Entire Agreement. This Agreement, together with the relevant Notice, contain the
entire agreement between the parties with respect to the RSUs granted hereunder. Any oral or
written agreements, representations, warranties, written inducements, or other communications made
prior to the execution of this Agreement with respect to the RSUs granted hereunder shall be void
and ineffective for all purposes.

14. Amendment. This Agreement may be amended from time to time by the Administrator
in its discretion; provided, however, that this Agreement may not be modified in a
manner that would have a materially adverse effect on the RSUs as determined in the discretion of
the Administrator, except as provided in the Plan or in a written document signed by each of the
parties hereto.

15. 409A Savings Clause. This Agreement and the RSUs granted hereunder are intended
to fit within the “short-term deferral” exemption from Section 409A of the Code as set forth in
Treasury Regulation Section 1.409A-1(b)(4). In administering this Agreement, the Company shall
interpret this Agreement in a manner consistent with such exemption. Notwithstanding the
foregoing, if it is determined that the RSUs fail to satisfy the requirements of the short-term
deferral rule and are otherwise deferred compensation subject to Section 409A, and if you are a
“Specified Employee” (within the meaning set forth Section 409A(a)(2)(B)(i) of the Code) as of the
date of your separation from service (within the meaning of Treasury Regulation
Section 1.409A-1(h)), then the issuance of any shares that would otherwise be made upon the date of
the separation from service or within the first six (6) months thereafter will not be made on the
originally scheduled date(s) and will instead be issued in a lump sum on the date that is six
(6) months and one day after the date of the separation from service, but if and only if such delay
in the issuance of the shares is necessary to avoid the imposition of additional taxation on you in
respect of the shares under Section 409A of the Code. Each installment of shares that vests is
intended to constitute a “separate payment” for purposes of Section 409A of the Code and Treasury
Regulation Section 1.409A-2(b)(2).

Standard RSU Agreement — US (2009)

 

5

 

16. No Obligation to Minimize Taxes. The Company has no duty or obligation to
minimize the tax consequences to you of this award of RSUs and shall not be liable to you for any
adverse tax consequences to you arising in connection with this award. You are hereby advised to
consult with your
own personal tax, financial and/or legal advisors regarding the tax consequences of this award
and by signing the Notice, you have agreed that you have done so or knowingly and voluntarily
declined to do so.

17. Conformity with Plan. This Agreement is intended to conform in all respects with,
and is subject to all applicable provisions of, the Plan. Inconsistencies between this Agreement
and the Plan shall be resolved in accordance with the terms of the Plan. In the event of any
ambiguity in this Agreement or any matters as to which this Agreement is silent, the Plan shall
govern. A copy of the Plan is available upon request to the Administrator.

18. No Funding. This Agreement constitutes an unfunded and unsecured promise by the
Company to issue shares of Common Stock in the future in accordance with its terms. You have the
status of a general unsecured creditor of the Company as a result of receiving the grant of RSUs.

19. Effect on Other Employee Benefit Plans. The value of the RSUs subject to this
Agreement shall not be included as compensation, earnings, salaries, or other similar terms used
when calculating your benefits under any employee benefit plan sponsored by the Company or any
Affiliate, except as such plan otherwise expressly provides. The Company expressly reserves its
rights to amend, modify, or terminate any of the Company’s or any Affiliate’s employee benefit
plans.

20. Governing Law. The validity, construction, and effect of this Agreement, and of
any determinations or decisions made by the Administrator relating to this Agreement, and the
rights of any and all persons having or claiming to have any interest under this Agreement, shall
be determined exclusively in accordance with the laws of the State of Delaware, without regard to
its provisions concerning the applicability of laws of other jurisdictions. Any suit with respect
hereto will be brought in the federal or state courts in the district which includes the city or
town in which the Company’s principal executive office is located, and you hereby agree and submit
to the personal jurisdiction and venue thereof.

21. Headings. The headings in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

22. Electronic Delivery of Documents. By your signing the Notice, you (i) consent to
the electronic delivery of this Agreement, all information with respect to the Plan and the RSUs,
and any reports of the Company provided generally to the Company’s stockholders; (ii) acknowledge
that you may receive from the Company a paper copy of any documents delivered electronically at no
cost to you by contacting the Company by telephone or in writing; (iii) further acknowledge that
you may revoke your consent to the electronic delivery of documents at any time by notifying the
Company of such revoked consent by telephone, postal service or electronic mail; and (iv) further
acknowledge that you understand that you are not required to consent to electronic delivery of
documents.

23. No Future Entitlement. By your signing the Notice, you acknowledge and agree
that: (i) the grant of a restricted stock unit award is a one-time benefit which does not create
any contractual or other right to receive future grants of restricted stock units, or compensation
in lieu of yed stock units, even if restricted stock units have been granted repeatedly in the
past; (ii) all determinations with respect to any such future grants and the terms thereof will be
at the sole discretion of the Committee; (iii) the value of the restricted stock units is an
extraordinary item of compensation which is outside the scope of your employment contract, if any;
(iv) the value of the restricted stock units is not part of normal or expected compensation or
salary for any purpose, including, but not limited to, calculating any termination, severance,
resignation, redundancy, end of service payments or similar payments, or bonuses, long-service
awards, pension or retirement benefits; (v) the vesting of the restricted stock units ceases upon
termination of Service with the Company or transfer of employment from the Company, or other
cessation of eligibility for any reason, except as may otherwise be explicitly provided in this
Agreement; (vi) the Company does not guarantee any future value of the restricted stock units; and
(vii) no claim or entitlement to compensation or damages arises if the restricted stock units
decrease or do not increase in value and you irrevocably release the Company from any such claim
that does arise.

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24. Personal Data. For the exclusive purpose of implementing, administering and
managing the restricted stock units, you, by execution of the Notice, consent to the collection,
receipt, use, retention
and transfer, in electronic or other form, of your personal data by and among the Company and
its third party vendors. You understand that personal data (including but not limited to, name,
home address, telephone number, employee number, employment status, social security number, tax
identification number, date of birth, nationality, job and payroll location, data for tax
withholding purposes and shares awarded, cancelled, vested and unvested) may be transferred to
third parties assisting in the implementation, administration and management of the restricted
stock units and you expressly authorize such transfer as well as the retention, use, and the
subsequent transfer of the data by the recipient(s). You understand that these recipients may be
located in your country or elsewhere, and that the recipient’s country may have different data
privacy laws and protections than your country. You understand that data will be held only as long
as is necessary to implement, administer and manage the restricted stock units. You understand
that you may, at any time, request a list with the names and addresses of any potential recipients
of the personal data, 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 Company’s Secretary. You understand, however, that
refusing or withdrawing your consent may affect your ability to accept a restricted stock unit
award.

{Glossary begins on next page}

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GLOSSARY

(a) “Administrator” means the Board of Directors of HeartWare International, Inc. or such
committee or committees appointed by the Board to administer the Plan.

(b) “Affiliate” means any entity, whether now or hereafter existing, which controls, is
controlled by, or is under common control with HeartWare International, Inc. (including but not
limited to joint ventures, limited liability companies, and partnerships). For this purpose,
“control” means ownership of 50% or more of the total combined voting power or value of all classes
of stock or interests of the entity.

(c) “Agreement” means this document, as amended from time to time, together with the Plan
which is incorporated herein by reference.

(d) “Change in Control” means: a (i) Change in Ownership of the Company, (ii) Change in
Effective Control of the Company, or (iii) Change in the Ownership of Assets of the Company, all as
described herein and construed in accordance with Code section 409A.

(i) A Change in Ownership of the Company shall occur on the date that any one Person
acquires, or Persons Acting as a Group acquire, ownership of the capital stock of the
Company that, together with the stock held by such Person or Group, constitutes more than
50% of the total fair market value or total voting power of the capital stock of the
Company. However, if any one Person is, or Persons Acting as a Group are, considered to own
more than 50% of the total fair market value or total voting power of the capital stock of
the Company, the acquisition of additional stock by the same Person or Persons Acting as a
Group is not considered to cause a Change in Ownership of the Company or to cause a Change
in Effective Control of the Company (as described below). An increase in the percentage of
capital stock owned by any one Person, or Persons Acting as a Group, as a result of a
transaction in which the Company acquires its stock in exchange for property will be treated
as an acquisition of stock.

(ii) A Change in Effective Control of the Company shall occur on the date a majority of
members of the Company’s Board is replaced during any 12-month period by directors whose
appointment or election is not endorsed by a majority of the members of the Company’s Board
before the date of the appointment or election.

(iii) A Change in the Ownership of Assets of the Company shall occur on the date that
any one Person acquires, or Persons Acting as a Group acquire (or has or have acquired
during the 12-month period ending on the date of the most recent acquisition by such Person
or Persons), assets from the Company that have a total gross fair market value equal to or
more than 51% of the total gross fair market value of all of the assets of the Company
immediately before such acquisition or acquisitions. For this purpose, gross fair market
value means the value of the assets of the Company, or the value of the assets being
disposed of, determined without regard to any liabilities associated with such assets.

The following rules of construction apply in interpreting the definition of Change in
Control:

(A) A Person means any individual, entity or group within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended, other than
employee benefit plans sponsored or maintained by the Company and by entities controlled by
the Company or an underwriter of the capital stock of the Company in a registered public
offering.

(B) Persons will be considered to be Persons Acting as a Group (or Group) if they are
owners of a corporation that enters into a merger, consolidation, purchase or acquisition of
stock, or similar business transaction with the corporation. If a Person owns stock in both
corporations that enter into a merger, consolidation, purchase or acquisition of stock, or
similar transaction, such shareholder is considered to be acting as a Group with other
shareholders only
with respect to the ownership in that corporation before the transaction giving rise to
the change and not with respect to the ownership interest in the other corporation. Persons
will not be considered to be acting as a Group solely because they purchase assets of the
same corporation at the same time or purchase or own stock of the same corporation at the
same time, or as a result of the same public offering.

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(C) A Change in Control shall not include a transfer to a related person as described
in Code section 409A or a public offering of capital stock of the Company.

(D) For purposes of this definition of Change in Control, Code section 318(a) applies
to determine stock ownership. Stock underlying a vested option is considered owned by the
individual who holds the vested option (and the stock underlying an unvested option is not
considered owned by the individual who holds the unvested option). For purposes of the
preceding sentence, however, if a vested option is exercisable for stock that is not
substantially vested (as defined by Treasury Regulation section 1.83-3(b) and (j)), the
stock underlying the option is not treated as owned by the individual who holds the option.

(e) “Code” means the Internal Revenue Code of 1986, as amended, and the Treasury regulations
and other guidance promulgated thereunder.

(f) “Common Stock” means the common stock, US$.001 par value per share, of HeartWare
International, Inc.

(g) “Company” means HeartWare International, Inc. and its Affiliates, except where the context
otherwise requires. For purposes of determining whether a Change in Control has occurred, Company
shall mean only HeartWare International, Inc.

(h) “Disability” means your permanent inability, by reason of physical condition, mental
illness or accident, to perform substantially all of the duties of the position in which you have
been employed or appointed (as determined by the Administrator).

(i) “Fair Market Value” has the meaning set forth in the Plan. The Plan generally defines
Fair Market Value to mean the closing price per share of Common Stock on the relevant date on the
principal exchange or market on which the Common Stock is then listed or admitted to trading or, if
no sale is reported for that date, the last preceding Business Day on which a sale was reported.

(j) “Grant Date” means the effective date of a grant of RSUs made to you as set forth in the
relevant Notice.

(k) “Notice” means the statement, letter or other written notification provided to you by the
Company setting forth the terms of a grant of RSUs made to you.

(l) “Plan” means the HeartWare International, Inc. 2008 Stock Incentive Plan, as amended from
time to time.

(m) “Retrenchment” means a termination of your employment where the employer company has made
a definite decision expressly for the purpose of this provision that the employer no longer wishes
the job you have been doing to be done by anyone and this is not due to ordinary or customary
turnover of labour or your performance or any breach of your terms of employment, and includes a
situation where:

(i) you cease to be employed by the Company because the employer company ceases to be
an Affiliate of the Company; or

(ii) the business in which you are engaged is transferred outside the Company and its
Affiliates.

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(n) “RSU” means the Company’s commitment to issue one share of Common Stock at a future date,
subject to the terms of the Agreement and the Plan.

(o) “Service” means your employment, service as a non-executive director, or other service
relationship with the Company and its Affiliates. Your Service will be considered to have ceased
with the Company and its Affiliates if, immediately after a sale, merger, or other corporate
transaction, the trade, business, or entity with which you are employed or otherwise have a service
relationship is not HeartWare International, Inc. or an Affiliate of HeartWare International, Inc.

(p) “You” or “Your” means the recipient of the RSUs as reflected on the applicable Notice.
Whenever the word “you” or “your” is used in any provision of this Agreement under circumstances
where the provision should logically be construed, as determined by the Administrator, to apply to
the estate, personal representative, or beneficiary to whom the RSUs may be transferred by will or
by the laws of descent and distribution, the words “you” and “your” shall be deemed to include such
person.

{End of Agreement}

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