ESOP

The ESOP was adopted January 1, 1990 and is a retirement plan whereby employees are given shares of KCI stock when eligible to participate. KCI’s ESOP has two components, a cash component and a stock component. KCI may deposit funds into the cash portion of the ESOP account at the end of the calendar year. The cash is used to purchase shares from former employees and then placed into the stock component of the ESOP. Employees vest, or earn their right to the shares with a graduated vesting schedule and become 100% vested after five years of service.