Document:

exv10w3

Exhibit 10.3

AGREEMENT

This AGREEMENT (this “Agreement”) is made and entered into, effective as of the 4th day of
April, 2011 (the “Effective Date”), by Prides Capital Fund I, L.P., a limited partnership organized
and existing under the laws of the State of Massachusetts (“Prides Capital”) and SANUWAVE Health,
Inc., a Nevada corporation (the “Company”).

WHEREAS, as of the Effective Date, the Company is indebted to Prides Capital, for amounts
payable with respect to certain loans evidenced by amended senior notes (the “Notes”), as more
particularly described on Exhibit A attached hereto;

WHEREAS, Prides is willing to cancel US$4,305,349 of the debt evidenced by the Notes (the
“Indebtedness”) in exchange for the issuance by the Company to Prides Capital of 1,324,723 shares
of common stock, $.001 par value (“Common Stock”) of the Company and 662,362 Class E Warrants (the
“Warrants”) to acquire Common Stock of the Company; and

WHEREAS, the Company is willing to issue the shares of Common Stock and the Warrants in
exchange for the cancellation of the Indebtedness pursuant to an exemption from registration under
the Securities Act of 1933, as amended (the “Securities Act”).

NOW, THEREFORE, in consideration of the mutual covenants herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

1. Cancellation of Indebtedness. Upon delivery of the Common Stock and the Warrants
pursuant to Section 2 of this Agreement, the Company and Prides Capital hereby acknowledge
and agree that all of the Indebtedness represented by the Notes shall be extinguished and
cancelled, and shall cease to be outstanding thereafter. At such time, the Notes shall be returned
by Prides Capital to the Company and stamped as cancelled or destroyed.

2. Issuance of Common Stock and Warrants. In consideration for the cancellation of
indebtedness effected by Section 1 of this Agreement, the Company hereby issues the
following to Prides Capital

(a) 1,324,723 shares of Common Stock (the “Issued Shares”); and

(b) 662,362 Warrants to purchase Common Stock at an exercise price of $4.00 per
Warrant. Such Warrants shall become fully vested and irrevocable upon issuance and shall
expire five (5) years from the date of issuance. The Warrants shall be evidenced by a Class
E Warrant, the form of which is attached to this Agreement as Exhibit B.

 

 

 

3. Additional Representations and Covenants.

(a) The Company agrees to deliver a share certificate to Prides Capital, at the
direction of Prides Capital, evidencing ownership of the Issued Shares by Prides Capital.

(b) Prides Capital represents and warrants to the Company that it is an “accredited
investor” as that term is defined in Rule 501 of the Securities and Exchange Commission’s
Regulation D.

(c) Prides Capital represents and warrants that it has acquired the Issued Shares and
the Warrants for investment purposes and not with an intent to distribute the securities of
the Company in violation of the Securities Act and the rules and regulations promulgated
thereunder.

(d) Prides Capital understands and acknowledges that the Issued Shares and the
Warrants are being issued in reliance upon one or more exemptions from registration under
the Securities Act, and applicable state securities laws, and that, therefore, the Issued
Shares and the Warrants will be considered restricted securities under the terms of the
Securities Act and that the certificate representing the Issued Shares, and the Warrants,
will bear a restrictive legend in the following form:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE
ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, OR (B) AN
OPINION OF COUNSEL, IN A REASONABLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS, OR (II) UNLESS SOLD
PURSUANT TO RULE 144 UNDER SAID ACT.

 

-2-

 

4. Satisfaction of Obligation. Prides Capital hereby acknowledges full satisfaction
of the Indebtedness. Prides Capital and its officers, directors, shareholders, employees, agents,
parents, predecessors, successors and assigns do hereby release and discharge the Company and its
officers, directors, employees, agents, predecessors, successors and assigns from any and all
claims, causes of action, damages, demands or claims whatsoever arising out of, or in any way
directly or indirectly relating to the Indebtedness. Prides Capital represents and warrants that it
has not pledged, assigned, negotiated or otherwise transferred to any third party any of Prides
Capital’s rights or interest with respect to the Indebtedness.

5. Miscellaneous. This Agreement may be executed in two or more counterparts, all of
which taken together shall constitute one and the same instrument. This Agreement, including all
exhibits attached hereto, contains the entire understanding of the parties hereto with respect to
the subject matter contained herein or therein. This Agreement may not be changed orally, but only
by an agreement in writing signed by the Company and Prides Capital. In case any provision in this
Agreement shall be held invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions hereof will not in any way be affected
or impaired thereby. This Agreement shall be governed by the internal laws of the State of Nevada.

[Signatures Appear on Following Page]

 

-3-

 

IN WITNESS WHEREOF, Prides Capital and the Company have executed this Agreement, which shall
be effective as of the Effective Date.

	 	 	 	 	 	 	 
	 	 	“PRIDES CAPITAL”

Prides Capital Fund I, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	“COMPANY”

SANUWAVE Health, Inc.	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Agreement (2011)

 

 

 

EXHIBIT A

INDEBTEDNESS TO BE CONVERTED

	 	 	 	 	 
	 	 	Amount at date of	 
	 	 	Original Issuance in	 
	Prides Capital Fund I, LP	 	Dollars	 
	 
	 	 	 	 
	October, 2008
	 	$	375,000	 
	 
	 	 	 	 
	November, 2008
	 	$	200,000	 
	 
	 	 	 	 
	December, 2008
	 	$	500,000	 
	 
	 	 	 	 
	January, 2009
	 	$	450,000	 
	 
	 	 	 	 
	February, 2009
	 	$	500,000	 
	 
	 	 	 	 
	March, 2009
	 	$	625,000	 
	 
	 	 	 	 
	April, 2009
	 	$	450,000	 
	 
	 	 	 	 
	May, 2009
	 	$	100,000	 
	 
	 	 	 
	 
	 	 	 	 
	Total at issuance
	 	$	3,200,000	 
	 
	 	 	 

 

 

 

EXHIBIT B

FORM OF CLASS E WARRANT

See Attached.exv10w4

Exhibit 10.4

AGREEMENT

This AGREEMENT (this “Agreement”) is made and entered into, effective as of the 4th day of
April, 2011 (the “Effective Date”), by NightWatch Capital Partners II L.P., a limited partnership
organized and existing under the laws of the State of Utah (“NightWatch Capital”) and SANUWAVE
Health, Inc., a Nevada corporation (the “Company”).

WHEREAS, as of the Effective Date, the Company is indebted to NightWatch Capital, for amounts
payable with respect to a certain loan evidenced by an amended senior note (the “Note”), as more
particularly described on Exhibit A attached hereto;

WHEREAS, NightWatch is willing to cancel US$108,559 of the debt evidenced by the Note (the
“Indebtedness”) in exchange for the issuance by the Company to NightWatch Capital of 33,403 shares
of common stock, $.001 par value (“Common Stock”) of the Company and 16,702 Class E Warrants (the
“Warrants”) to acquire Common Stock of the Company; and

WHEREAS, the Company is willing to issue the shares of Common Stock and the Warrants in
exchange for the cancellation of the Indebtedness pursuant to an exemption from registration under
the Securities Act of 1933, as amended (the “Securities Act”).

NOW, THEREFORE, in consideration of the mutual covenants herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

1. Cancellation of Indebtedness. Upon delivery of the Common Stock and the Warrants
pursuant to Section 2 of this Agreement, the Company and NightWatch Capital hereby
acknowledge and agree that all of the Indebtedness represented by the Note shall be extinguished
and cancelled, and shall cease to be outstanding thereafter. At such time, the Note shall be
returned by NightWatch Capital to the Company and stamped as cancelled or destroyed.

2. Issuance of Common Stock and Warrants. In consideration for the cancellation of
indebtedness effected by Section 1 of this Agreement, the Company hereby issues the
following to NightWatch Capital

(a) 33,403 shares of Common Stock (the “Issued Shares”); and

(b) 16,702 Warrants to purchase Common Stock at an exercise price of $4.00 per Warrant.
Such Warrants shall become fully vested and irrevocable upon issuance and shall expire five
(5) years from the date of issuance. The Warrants shall be evidenced by a Class E Warrant,
the form of which is attached to this Agreement as Exhibit B.

 

 

 

3. Additional Representations and Covenants.

(a) The Company agrees to deliver a share certificate to NightWatch Capital, at the
direction of NightWatch Capital, evidencing ownership of the Issued Shares by NightWatch
Capital.

(b) NightWatch Capital represents and warrants to the Company that it is an
“accredited investor” as that term is defined in Rule 501 of the Securities and Exchange
Commission’s Regulation D.

(c) NightWatch Capital represents and warrants that it has acquired the Issued Shares
and the Warrants for investment purposes and not with an intent to distribute the securities
of the Company in violation of the Securities Act and the rules and regulations promulgated
thereunder.

(d) NightWatch Capital understands and acknowledges that the Issued Shares and the
Warrants are being issued in reliance upon one or more exemptions from registration under
the Securities Act, and applicable state securities laws, and that, therefore, the Issued
Shares and the Warrants will be considered restricted securities under the terms of the
Securities Act and that the certificate representing the Issued Shares, and the Warrants,
will bear a restrictive legend in the following form:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE
ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, OR (B) AN
OPINION OF COUNSEL, IN A REASONABLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS, OR (II) UNLESS SOLD
PURSUANT TO RULE 144 UNDER SAID ACT.

 

-2-

 

4. Satisfaction of Obligation. NightWatch Capital hereby acknowledges full
satisfaction of the Indebtedness. NightWatch Capital and its officers, directors, shareholders,
employees, agents, parents, predecessors, successors and assigns do hereby release and discharge
the Company and its officers, directors, employees, agents, predecessors, successors and assigns
from any and all claims, causes of action, damages, demands or claims whatsoever arising out of, or
in any way directly or indirectly relating to the Indebtedness. NightWatch Capital represents and
warrants that it has not pledged, assigned, negotiated or otherwise transferred to any third party
any of NightWatch Capital’s rights or interest with respect to the Indebtedness.

5. Miscellaneous. This Agreement may be executed in two or more counterparts, all of
which taken together shall constitute one and the same instrument. This Agreement, including all
exhibits attached hereto, contains the entire understanding of the parties hereto with respect to
the subject matter contained herein or therein. This Agreement may not be changed
orally, but only by an agreement in writing signed by the Company and NightWatch Capital. In
case any provision in this Agreement shall be held invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions hereof will not in any way be affected or
impaired thereby. This Agreement shall be governed by the internal laws of the State of Nevada.

[Signatures Appear on Following Page]

 

-3-

 

IN WITNESS WHEREOF, NightWatch Capital and the Company have executed this Agreement, which
shall be effective as of the Effective Date.

	 	 	 	 	 	 	 
	 	 	“NIGHTWATCH CAPITAL

NightWatch Capital Partners II, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	“COMPANY”

SANUWAVE Health, Inc.	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Agreement (2011)

 

 

 

EXHIBIT A

INDEBTEDNESS TO BE CONVERTED

	 	 	 	 	 
	 	 	Amount at date of	 
	 	 	Original Issuance in	 
	NightWatch Capital Partners II, LP	 	Dollars	 
	 
	 	 	 	 
	October, 2008
	 	$	75,000	 
	 
	 	 	 

 

 

 

EXHIBIT B

FORM OF CLASS E WARRANT

See Attached.

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