FORM OF HEARUSA, INC. STOCK UNIT AWARD AGREEMENT (Time Vesting) ____________, 20___
Exhibit 10.29
FORM OF
2002 Flexible Stock Plan
THIS AGREEMENT is effective ____________, 20___, between HearUSA, Inc. (the “Company”) and
_____________________ (the “Participant”).
WHEREAS, the Company has adopted and maintains the HearUSA, Inc. 2002 Flexible Stock Plan (the
“Plan”) to promote the interests of the Company and its stockholders by providing the directors,
officers and employees of the Company and its Affiliates with an appropriate incentive to encourage
them to continue in the service and employ of the Company or Affiliate and to improve the growth
and profitability of the Company;
WHEREAS, the Plan permits the grant to Participants in the Plan of restricted stock units (the
“Stock Unit Awards”); and the Company wishes to grant Stock Unit Awards to the Participant in
consideration of his/her employment with the Company.
NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement, the
parties hereto hereby agree as follows:
1. Grant of Stock Unit Awards. Subject to the terms and conditions contained herein and in
the Plan, the Company hereby grants to the Participant ______ Stock Unit Awards. Each Stock Unit
Award represents the obligation of the Company to transfer one share of common
stock (“Common Stock”) of the Company to the Participant at the time provided in this Agreement,
provided such Stock Unit Award is vested at such time.
2. Incorporation of Plan. All terms, conditions and restrictions of the Plan are
incorporated herein and made part hereof as if stated herein. If there is any conflict between the
terms and conditions of the Plan and this Agreement, the terms and conditions of the Plan, as
interpreted by the Company’s Compensation Committee (the “Committee”), shall govern. All
capitalized terms used herein shall have the meaning given to such terms in the Plan.
3. Bookkeeping Account. The Company shall record the number of Stock Unit Awards granted
hereunder to a bookkeeping account for the Participant (the “Stock Unit Account”). The
Participant’s Stock Unit Account shall be debited by the number of Stock Unit Awards, if any,
forfeited in accordance with this Agreement and by the number of shares of Common Stock transferred
to the Participant with respect to such Stock Unit Awards. The Participant’s Stock Unit Account
also shall be adjusted from time to time for stock dividends, stock splits and other such
transactions in accordance with the Plan.
4. Terms and Conditions of Stock Unit Awards. The Stock Unit Awards evidenced hereby are
subject to the following terms and conditions:
| (a) | Vesting. ______ percent (___%) of the Stock Unit Awards granted to the Participant hereby shall become vested as of [date], and the remaining ______ percent (___%) of the Stock Unit Awards granted to the Participant hereby shall become vested as of [date]. | |
| (b) | Forfeiture Upon Termination of Service. Except as otherwise provided in (a) above, upon cessation of the Participant’s employment with the Company for any reason before [date], the number of shares of Stock Unit Awards subject to this Agreement that have not become vested shall be forfeited, except as the Committee may otherwise determine in its sole discretion. |
5. Distribution of Common Stock. Subject to the provisions below, as soon as practical after
each vesting date, the Company shall transfer shares of Common Stock to the Participant equal in
number to the Stock Unit Awards credited to the Participant’s Stock Unit Account that have vested
and were not previously transferred to Participant. Such transfer shall be made within 30 days
following each vesting date or, if not so practicable, as soon thereafter as practicable.
6. Source of Payment. Shares of Common Stock transferable to the Participant, or upon death
to his or her beneficiary, under this Agreement shall be authorized but unissued shares. The
Company shall have no duties to segregate or set aside any assets to secure the Participant’s right
to receive shares of Common Stock under this Agreement. The Participant shall not have any rights
with respect to transfer of shares of Common Stock under this Agreement other than the unsecured
right to receive shares of Common Stock from the Company.
7. Units Non-Transferable. Stock Unit Awards awarded hereunder shall not be transferable by
the Participant. Except as may be required by the federal income tax withholding
provisions of the Code or by the tax laws of any State, the interests of the Participant and
his or her beneficiaries under this Agreement are not subject to the claims of their creditors and
may not be voluntarily or involuntarily sold, transferred, alienated, assigned, pledged,
anticipated, or encumbered. Any attempt by the Participant or a beneficiary to sell, transfer,
alienate, assign, pledge, anticipate, encumber, charge or otherwise dispose of any right to
benefits payable hereunder shall be void.
8. Shareholder Rights. The Participant shall not have any of the rights of a shareholder of
the Company with respect to Stock Unit Awards, such as the right to vote.
9. Death Benefits. In the event of the death of the Participant, the Company shall transfer
shares of Common Stock equal in number to the vested Stock Unit Awards, if any, credited to the
Participant’s Stock Unit Account to the Participant’s legal representative or beneficiaries. Such
transfer shall be made within 30 days following death or, if not so practicable, as soon thereafter
as practicable.
The Participant may designate a beneficiary or beneficiaries (contingently, consecutively, or
successively) of such death benefit and, from time to time, may change his or her designated
beneficiary. A beneficiary may be a trust. A beneficiary designation shall be made in writing in
a form prescribed by the Company and delivered to the Company while the Participant is alive. If
there is no designated beneficiary surviving at the death of the Participant, payment of any death
benefit of the Participant shall be made to the surviving spouse of the Participant, if any, and if
no such surviving spouse to the estate of the Participant.
10. Integration. This Agreement, and the other documents referred to herein or delivered
pursuant hereto which form a part hereof contain the entire understanding of the parties with
respect to its subject matter. There are no restrictions, agreements, promises, representations,
warranties, covenants or undertakings with respect to the subject matter hereof other than those
expressly set forth herein. This Agreement, including without limitation the Plan, supersedes all
prior agreements and understandings between the parties with respect to its subject matter.
11. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware, without regard to the provisions governing
conflict of laws.
12. Amendment. This Agreement may be amended by mutual consent of the parties hereto by
written agreement.
13. Participant Acknowledgment. By accepting this grant, the Participant acknowledges
receipt of a copy of the Plan, and acknowledges that all decisions, determinations and
interpretations of the Committee in respect of the Plan, this Agreement and the Stock Unit Awards
granted hereunder shall be final and conclusive.
| HEARUSA, Inc. |
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| By: | ||||
| Title: | ||||
