Document:

exhibit-10_21.htm

    Exhibit
10.21

     

     

    AMENDMENT
NUMBER ONE

    TO
THE

    EMPLOYMENT
AGREEMENT

    BY
AND BETWEEN

    KINETIC
CONCEPTS, INC. AND

    CATHERINE
M. BURZIK

     

     

    
 

    Amendment
is made this 22nd  day
of December, 2008, to the Employment Letter issued to Catherine M. Burzik by
Kinetic Concepts, Inc. (“Company”).

    

    WITNESSETH:

    

          WHEREAS, the Company
and Catherine M. Burzik (“Executive”) entered into an Employment Agreement dated
October 16, 2006 (“Employment Agreement”); and

    

    WHEREAS, it is necessary to
amend the Employment Agreement to bring it into compliance with Internal Revenue
Code section 409A and the final Treasury Regulations (collectively, “Section
409A”)  issued thereunder; and

    

    WHEREAS, the Company and
Executive believe it is in the best interest of the Company and Executive to
adopt this Amendment Number One.

          

          NOW, THEREFORE, BE IT
RESOLVED, that effective as of December 31, 2008, the Employment
Agreement is amended as follows:

    

    
      	
              1.  

            	
              The
      Termination Section of the Employment Agreement is amended by adding the
      following to the end thereof:

            

    

    

    “In the event your employment
is terminated by the Company at any time other than for Cause (as defined in the
Equity Plan) or is terminated by you for Good Reason (as defined herein), any
severance payments to which you are entitled shall be delayed and paid on the
earlier to occur of (x) the date that is one day after the date that is six
months after the date of your termination of employment or (y) the date of your
death following such termination of employment.  However,
notwithstanding the foregoing to the contrary, in the event that (i) your
employment is terminated due to your death or (ii) you incur a disability (as
disability is defined within Section 409A), any benefits payable to you shall be
paid immediately, but in no event later than 21⁄2 months following the end of the
taxable year in which occurs your death or disability.”

    

    
      	
              2.  

            	
              The
      Benefits Upon a Change in Control Section of the Employment Agreement is
      amended by adding the following to the end
  thereof:

            

    

    

    “The
payment of any applicable Gross-Up Payment shall be made immediately after you
become entitled to such Gross-Up Payment hereunder, but in no event later than
21⁄2 months following the end of the taxable year in which you remit payment of
the excise tax that is the subject of such Gross-Up Payment.”

     

    

    IN WITNESS WHEREOF, this
Amendment Number One has been executed the day and year first above
written.

     

     

    

     

    
      	
               KINETIC CONCEPTS,
      INC.

               

            	 	 CATHERINE M.
      BURZIK
	
               By:  /s/  Jim
      Cravens

               

            	 	 /s/ Catherine M.
      Burzik
	 Its: 
      Sr. V.P.,
      HRexhibit-10_27.htm

    Exhibit
10.27

    

      ADDENDUM
TO

      EXECUTIVE
RETENTION AGREEMENT

      

      In
connection with that Executive Retention Agreement (“Agreement”) executed
between Kinetic Concepts, Inc. (the “Company”) and Steve Seidel (“Executive”)
and dated as of  February 2007, the Company and Executive have
agreed that in order for the Agreement to comply with the provisions of Section
409A ("Section 409A") of the Internal Revenue Code of 1986, as amended (the
"Code") and the regulations and guidance promulgated thereunder so as not to
subject Executive to the payment of additional taxes and interest under Section
409A, the following changes to the Agreement (in bold) have been made effective
as of December 31, 2008:

      

      Good
Reason.  "Good Reason" shall mean one or more of the
following:  (i) the material reduction of Executive’s duties and/or
responsibilities, which is not cured within 30 days after the Executive provides
written notice to the Company; provided, however, it
shall not be considered Good Reason if, upon or following a Change in Control,
the Executive’s duties and responsibilities remain the same as those prior to
the Change in Control but the Executive’s title and/or reporting relationship is
changed; (ii) the material reduction of Executive’s base salary (which is not cured within 30 days
after the Executive provides written notice), other than across-the-board
decreases in base salary applicable to all executive officers of the Company; or
(iii) the relocation of the Executive to a business location in excess of fifty
(50) miles from the Company’s headquarters in San Antonio (which is not cured within 30 days
after the Executive provides written notice). To be considered a resignation from
employment on account of Good Reason, the Executive must provide written notice
to the Company (stating that Executive believes one or more of the Good Reason
conditions described above exists) within 30 days of the initial existence of
such condition, and must resign within 30 days of the Company’s failure to cure
such condition.

      

      
        	
                6.  

              	
                Conditions to
      Severance Benefits.

              

      

      

             (a)  No
severance benefits shall be made under Sections 4(a) and (b) unless and until
the Executive shall, in consideration of such benefits, execute a full waiver
and release of all claims in a form provided by the Company which waiver and release shall be
delivered to the Company within 45 days following termination of
employment.

       

      

      
        	
                 
      

              	
                In Witness
      Whereof, each of the Parties has executed this Addendum, in the
      case of the Company by its duly authorized
  officer:

              

      

       

      

       

      
        	
                COMPANY

              	
                Kinetic
      Concepts, Inc.

                 

                By:      /s/  Catherine M.
      Burzik

                 

                Title:  President and Chief Executive
      Officer

                 

                 

                 

                 

              
	
                EXECUTIVE

              	
                Steve
      Seidel

                 

                /s/  Steve
      D. Seidelexhibit-10_30.htm

    Exhibit
10.30

     

     

    
      ADDENDUM
TO

      EXECUTIVE
RETENTION AGREEMENT

    

    
 

    In
connection with that Executive Retention Agreement (“Agreement”) executed
between Kinetic Concepts, Inc. (the “Company”) and T.L.V. Kumar (“Executive”)
and dated as of  December 2007, the Company and Executive have
agreed that in order for the Agreement to comply with the provisions of Section
409A ("Section 409A") of the Internal Revenue Code of 1986, as amended (the
"Code") and the regulations and guidance promulgated thereunder so as not to
subject Executive to the payment of additional taxes and interest under Section
409A, the following changes to the Agreement (in bold) have been made effective
as of December 31, 2008:

     

    Good
Reason.  "Good Reason" shall mean one or more of the
following:  (i) the material reduction of Executive’s duties and/or
responsibilities, which is not cured within 30 days after the Executive provides
written notice to the Company; provided, however, it
shall not be considered Good Reason if, upon or following a Change in Control,
the Executive’s duties and responsibilities remain the same as those prior to
the Change in Control but the Executive’s title and/or reporting relationship is
changed; (ii) the material reduction of Executive’s base salary (which is not cured within 30 days
after the Executive provides written notice), other than across-the-board
decreases in base salary applicable to all executive officers of the Company; or
(iii) the relocation of the Executive to a business location in excess of fifty
(50) miles from the Company’s headquarters in San Antonio (which is not cured within 30 days
after the Executive provides written notice). To be considered a resignation from
employment on account of Good Reason, the Executive must provide written notice
to the Company (stating that Executive believes one or more of the Good Reason
conditions described above exists) within 30 days of the initial existence of
such condition, and must resign within 30 days of the Company’s failure to cure
such condition.

    

    
      	
              6.  

            	
              Conditions to
      Severance Benefits.

            

    

    

            (a)  No
severance benefits shall be made under Sections 4(a) and (b) unless and until
the Executive shall, in consideration of such benefits, execute a full waiver
and release of all claims in a form provided by the Company which waiver and release shall be
delivered to the Company within 45 days following termination of
employment.

     

    

    
      	
               
      

            	
              In Witness
      Whereof, each of the Parties has executed this Addendum, in the
      case of the Company by its duly authorized
  officer:

            

    

     

    
      
 

       

      
        

         

        
          	
                  COMPANY

                	
                  Kinetic
      Concepts, Inc.

                   

                  By:      /s/  Catherine M.
      Burzik

                   

                  Title:  President and Chief Executive
      Officer

                   

                   

                   

                   

                
	
                  EXECUTIVE

                	
                  TLV
      Kumar

                   

                  /s/  TLV Kumarexhibit-10_48.htm

    Exhibit 10.48

    

    

    June 26,
2009

    

    Michael
C. Genau

    94 Colony
Crossing

    Edgewater,
Maryland 21037

    

    Dear
Mike,

    

    On behalf
of KCI, it is a pleasure to confirm the employment offer we recently discussed.
The specific terms and conditions of your new position will be as
follows:

     

    
      
        	
                Position
      Title:

              	 
      	
                President,
      Advanced Wound Care Division

              
	
                Employment
      Status:

              	 
      	
                Regular
      Full-Time, Exempt

              
	
                Annual
      Base Salary:

              	 
      	
                $490,000  ($20,416.66
      paid on

              
	 
      	 
      	
                the
      15th and last day of the month)

              
	
                Immediate
      Supervisor:

              	 
      	
                Catherine
      Burzik, President & CEO

              
	
                Location:

              	 
      	
                8023
      Vantage Drive

              
	 
      	 
      	
                San
      Antonio, TX 78230

              
	
                Start
      Date:

              	 
      	
                July
      15, 2009 or as mutually agreed

              
	
                Group
      Health Plan Effective Date:

              	 
      	
                Upon
      start date

              
	 
      	 
      	
                (Pending
      receipt of enrollment forms)

              
	 
      	 
      	 
      

      

    

          

    In
addition to your base salary, you will be eligible for an incentive bonus
opportunity with a target bonus value equal to 80% of your annual base salary as
part of the Annual Incentive Bonus (AIB program).  AIB awards will be
determined on both individual and corporate performance and will require that
you remain in a bonus eligible position through December 31 of the year in
question, except as otherwise set forth herein. For 2009, your target bonus
opportunity will be pro-rated based on your start date. This is a discretionary
incentive award, subject to change or termination at the Company’s sole
discretion.

    

    You will
receive a new hire equity grant consisting of 165,000 non-qualified stock
options (which vest ratably over 4 years) and 33,000 shares of restricted stock.
The option exercise price will be set as the closing price of KCI shares on your
start date (or the next subsequent closing price if your start date is a date on
which the market is closed). The restricted shares will vest 100% on the third
anniversary of your start date.  Your position is also eligible for
consideration for future annual grants. All future equity grant recommendations
are subject to CEO and Board of Directors approval, and all grants are governed
by the KCI 2008 Omnibus Stock Incentive Plan (the “Equity Plan”), which is
subject to change.

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Michael
C. Genau

    June 26,
2009

    Page
2

     

     

    To assist
you with your pending relocation from Maryland to San Antonio, Texas, the
Company will provide the following: (Please contact our relocation coordinator,
Deborah Allen, at 210-255-6476.)

     

    
      	
              1.  

            	
              You
      will receive a one-time relocation allowance of $30,000 (less applicable
      withholding taxes).

               

            

    

    
      	
              2.  

            	
              The
      Company will arrange for packing, transport and delivery and unpacking of
      your household goods by a national freight carrier. These services will be
      direct billed to the Company.

               

            

    

    
      	
              3.  

            	
              The
      Company will arrange for transport of one personal vehicle by a contracted
      van line/open air carrier if distance is over 500 miles; three vehicles if
      distance is over 1000 miles or you will be reimbursed $.35 per mile for
      driving your vehicle(s) from Maryland to San Antonio. You will also be
      reimbursed reasonable meals and lodging expenses en route based on travel
      by the most direct route.

               

            

    

    
      	
              4.  

            	
              The
      Company will arrange for temporary housing for up to 90 days from your
      start date, which will be covered at 100% of the cost.

               

            

    

    
      	
              5.  

            	
              You
      will be reimbursed for a house-hunting trip to San Antonio for you and
      your spouse for up to 6 nights.

               

            

    

    
      	
              6.  

            	
              The
      company will pay for a final move trip for you and your eligible
      dependents of one-way airfare (if your cars have been shipped) arranged
      through our Corporate Travel Department.

               

            

    

    
      	
              7.  

            	
              The
      Company will reimburse you reasonable and customary real estate closing
      costs for the sale of your Maryland home (including realtor’s commission
      up to 6%), excluding seller paid points, prorated taxes, prorated interest
      and seller’s allowances. This reimbursement will be grossed up for tax
      purposes.

               

            

    

    
      	
              8.  

            	
              The
      Company will reimburse you normal closing costs for the purchase of your
      San Antonio residence, with a maximum of 1% for a loan origination fee and
      excluding discount points, prepaids and homeowner association fees. This
      reimbursement will be grossed up for tax purposes.

               

            

    

    
      	
              9.  

            	
              During
      your first 90 days of employment the Company will pay for one round-trip
      (first-class ticket) every other weekend for you to return to Maryland (or
      as otherwise agreed).

               

            

    

    
      	
              10.  

            	
              It
      is anticipated that you and your family will relocate to San Antonio as
      soon as possible with an expectation that your children will start school
      in San Antonio at the end of August.  To assist with this move,
      the Company has agreed that in the event your Maryland home is sold for
      less than $850,000 (with the approval of the Company), you will be
      reimbursed (on a grossed-up basis) for the difference between the sale
      price and $850,000.  Until your home in Maryland is sold, the
      Company will also provide you $3,000 per month (on a grossed-up basis) for
      up to 12 months to assist in covering your current mortgage, property
      taxes and other costs of your Maryland home.  The Company will
      also reimburse you for reasonable expenses related to the cost of staging
      your home for sale in Maryland.

            

    

    

    Any other
move related expenses will be discussed and reimbursed based on mutual
agreement. All accommodations should be arranged through our Corporate Travel
Department. Should you voluntarily resign your position with KCI within one year
of your start date, you will be required to reimburse the Company all
relocation-related expenses and the signing bonus described below.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Michael
C. Genau

    June 26,
2009

    Page
3

     

     

    You will
also be provided with a one-time signing bonus of $100,000 (subject to
applicable withholding). This bonus will be paid as soon as practical following
your start date.

    

    As an
Executive Committee member, you will be entitled to tax planning assistance (up
to $1,500 annually) and an executive physical exam (up to $1,800
annually).

    

    As a
senior leader of the Company, you will not be provided a specific vacation
benefit – we would anticipate that you would take approximately four weeks of
vacation a year but you will accrue no vacation balances and no vacation will be
banked, accrued or paid out.

    

    You will
be asked to sign the attached Executive Retention Agreement which generally
provides that in the event your employment is terminated by the Company other
than for Cause (as that term is defined in the Equity Plan), you will receive
(subject to your execution of a release and waiver in the form provided by the
Company) a severance payment equal to one years’ base salary and one year’s
target bonus (or two years base salary and two years’ target bonus if your
termination is other than for Cause within 24 months of a change
in-control).

    

    This
letter serves to establish the entirety of your employment relationship with KCI
and its subsidiaries, and supersedes any previous understanding that may have
been implied or expressed, either verbally or in writing, by any representative
of the Company.

    

    This
offer is contingent upon satisfactory completion of our pre-employment
screening, including a test for the use of illegal drugs, a criminal background
check and professional references. In addition, by your first day of employment,
you will be required to complete a Form 1-9 establishing your right to work in
the United States. Employment relationships with KCI and its subsidiaries are
at-will and may be terminated by notification from either party at any time,
with or without cause.

    

    If you
find the above terms and conditions of employment acceptable, please sign below
and return the original to me, with a fax copy of this signature page to me at
210-255-6756. Our offer is also contingent upon your signing and returning to me
a copy of a confidentiality and non-disclosure agreement (attached
separately).   This offer will expire on July 3, 2009 unless
otherwise agreed.

    

    Mike, it
is my sincere hope you will find your experience with KCI to be personally and
professionally rewarding. I look forward to a mutually prosperous working
relationship.

     

    Sincerely,

     

     

    
       

      
        	
                KCI

              	
                UNDERSTOOD
      AND AGREED:

                 

                 

              
	
                 /s/  R.
      James Cravens

                 

                R. James
      Cravens 

                Senior
      Vice President

                Human Resources and Corporate
Communications

                 

              	
                /s/  Michael C.
      Genau

                 

                Michael C.
      Genau 

                 

                Date: 
      June 30,
    2009

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