Document:

EXHIBIT 10.2.4

 

THE DOE RUN RESOURCES CORPORATION

1801 PARK 270 DRIVE

ST. LOUIS, MISSOURI  63146

 

July 1, 2005

 

David
Chaput

c/o The Doe Run Resources
Corporation

1801 Park 270 Drive

St. Louis, Missouri  63146

 

Re:                               Amended
and Restated Net Worth Appreciation Agreement

 

Dear Mr. Chaput:

 

This letter, sets forth the
amended and restated agreement between you and The Doe Run Resources
Corporation, (the “Company”) with respect to
your Net Worth Appreciation Benefit, intended to constitute additional
incentive compensation to you as an employee of the Company.  Upon your execution of this letter, any prior
Net Worth Appreciation Agreement or amendments thereto
between you and DR Acquisition Corp or the Company (including the agreement
dated November 1, 2002) shall terminate and all obligations pursuant to
such agreement as amended shall cease. 
The base date of this Amended and Restated Net Worth
Appreciation Agreement shall be November 1 (the “Base Date”), 2004 (the “Base
Year”).

 

1.     Vesting.  On the Base Date in 2005, provided that you
have been continuously in the employ of the Company from the Base Date in 2002
through such date, you shall receive a Net Worth Appreciation Credit of .3% and
on the Base Date in each of the years 2006 and 2007 you shall receive an
additional Net Worth Appreciation Credit of .1%, provided that you have been
continuously in the employ of the Company from the Base Date in 2002 to the
applicable Base Date, up to a maximum credit, if you remain in the employ of
the Company continuously through the Base Date in 2007, of .5% (the “Maximum
Credit”).  The aggregate number of Net Worth Appreciation Credits received on or prior to a given
date shall be hereinafter referred to as “Vested Credits”.  You shall not receive any credit unless you
have remained in the employ of the Company from the Base Date in 2002
continually until the Base Date in 2005, and thereafter you shall not receive
credit for any partial year, provided that (a) if your employment
terminates due to death or Disability (as defined below) preventing you from
performing your usual employment functions and duties prior to the Base Date in
2005, you shall receive a credit of .2%, and (b) if your employment
terminates after the Base Date in 2005 and before the Base Date in 2007, due to
death or Disability (as defined below), you shall receive a credit of .1% for
the partial year in which the termination takes place (in addition to all
credits previously accrued).  For
purposes of this agreement, “Disability” shall mean a physical or mental
impairment that can be expected to result in death or to last for at least 12
months, and the impairment either: (1) prevents the employee from engaging
in any substantial gainful activity; or (2) entitles the employee to
receive income replacement benefits for at least 3
months under an accident and health plan sponsored by the Company.

 

 

2.     Treatment of Matters in Calculation of
Benefits.

 

(a)   For the purposes of calculating the benefits
payable under this Agreement, the Company will continue to calculate Federal
corporate income taxes and the corporate income taxes for those jurisdictions
in which the Company and its subsidiaries do business, for the fiscal periods
or portions thereof beginning on or after the Base Date in 2004, as if the Company
had commenced operations on the Base Date in 2004 and as if the Company and its
subsidiaries had continued to have C corporation status under the Federal
Internal Revenue Code and under state and local tax laws, in accordance with
the provisions of generally accepted accounting principles and the Internal
Revenue Code and regulations thereunder and under state and local tax laws
applicable to C corporations as from time to time in effect (“C Status”).  Such tax calculations will include
calculations of current and deferred tax expense or benefit and current and
non-current tax assets and liabilities (“C Taxes”) and the differences (“Tax
Differences”) between the C Taxes and the taxes as recorded by the Company
and its subsidiaries while being designated a qualified subchapter
S subsidiary (“S Taxes”).  For
clarity, the tax basis of the Company’s assets and liabilities will be deemed
to be the tax basis as of the Base Date in 2004, except that no net operating
loss carryforward will be deemed to exist as of such date.

 

(b)   Cumulative Income Statement Tax Difference
shall be the cumulative difference in income tax expenses or benefit between
the calculation of the C Taxes and S Taxes, in each case calculated
for the tax periods or portions thereof beginning on or after the Base Date in
2004, and through the end of the calculation period.  Cumulative Cash Flow Tax Difference shall be
the cumulative difference in income tax payments, net of refunds, between the
calculation of the C Taxes and S Taxes in each case made after the
Base Date in 2004 and applicable to earnings of the Company on and after the
Base Date in 2004, or which would be in the case of C Taxes, or are in the
case of S Taxes, immediately due and payable, contemporaneously with the
payment of any Distributions, as defined below. A “Distribution” for purposes
of this Agreement shall mean a dividend, management fee, or any other form of
distribution to The Renco Group, Inc. (“Renco”) or an affiliate of Renco
other than a subsidiary of the Company 
(including a transfer to Renco of assets in any form whether as cash or
other form of value which shall have the effect of reducing the net worth of
the Company), in excess of the Renco Amount (as defined herein), provided that
payments made in respect of any debt to Renco, including, but not limited to,
principal interest and fees thereon, or the preferred stock of the Company,
including, but not limited to, dividends thereon and redemptions thereof, shall
not be a Distribution.  The “Renco Amount”
shall be equal to $2,400,000 per annum, calculated cumulatively from the Base
Date in 2002 so that unused portions shall carry over to succeeding years.

 

(c)   In connection with the annual audit of the
financial statements of the Company, the Company’s Board of Directors will
require that the independent public accountants issue a special report
indicating their agreement with the Tax Differences.

 

3.     Net Worth
Appreciation Benefit.  Upon the
termination of your employment by the Company, other than for cause, you shall
be entitled to a net worth appreciation payment 

 

2

 

(“Payment”) equal to (A) the product
of the Vested Credits and the Net Worth Increment, as defined below, less (B) the
product of the Vested Credits and the Cumulative Income Statement Tax
Difference (the calculation period shall end at the end of the Company’s fiscal
quarter immediately preceding your date of termination) and excluding such
Cumulative Income Statement Tax Difference to the extent equal to Cumulative
Cash Flow Tax Difference utilized in calculating amounts payable under
Paragraph 5(a). The “Net Worth Increment” is the amount, if any, by which
the consolidated net worth of the Company and its subsidiaries, as at the end
of its fiscal quarter immediately preceding the date of your termination,
exceeds its consolidated net worth as of the Base Date in the Base Year,
provided, however, that any increase in consolidated net worth resulting from a
capital contribution to the Company or the sale of stock of the Company shall
be disregarded in calculating Net Worth Increment, and further provided that
preferred stock of the Company and cash payments of dividends and payments in
kind thereon shall be treated as debt of the Company for purposes of calculating
consolidated net worth.  For clarity, it
is understood that the Net Worth Increment will not
include charges for interest on the restructured debt of the Company to the
extent not included as interest expense under GAAP as accounted for under FAS
15, nor will the Tax Differences include any benefit for such interest on such
restructured debt. The determination of the independent public accountants for
the Company as to the Net Worth Increment, made in
accordance with generally accepted accounting principles, consistently applied,
shall be conclusive on each of us. If there is no Net Worth
Increment, no amount shall be payable. 
If your employment is terminated for cause, you shall not be entitled to
receive any Payment.  Any termination
referred to in this agreement shall mean separation from service from all
members of The Renco Group, Inc. corporate controlled group (within the
meaning of Internal Revenue Code sections 414(b), (c), (m), and (o)).

 

4.     Payment.  The Payment shall be payable to you (or your
designee or estate) in 40 equal quarterly installments, without interest,
commencing three months after the termination of your employment, and at 3
month intervals thereafter. 
Notwithstanding any provision in this Agreement, the Company shall not
be required to pay you (i) any Payment, where the making of such Payment
would violate any agreement between the Company and any lender of the Company,
or (ii) in the event that any agreement between the Company and any lender
of the Company limits the aggregate amount that the Company may pay as bonuses,
net worth appreciation payments, profit sharing payments or other payments of
similar nature (“Restricted Payments”) during any period, any Payment in excess
of your pro rata portion of the aggregate amount of applicable Restricted
Payments which the Company is permitted to pay. 
In the event that the Company is unable to make a Payment due to the
preceding sentence, the Company’s obligation to make such Payment shall be
deferred until such time that the Company is permitted to make such Payment
pursuant to the preceding sentence.

 

5.     Dividends; Sale of Substantially All of
the Company’s Stock or Assets.

 

(a)   If and in the event that the Company shall
make a Distribution while you shall be employed by the Company, then you shall
be entitled to receive, as additional compensation, (“Additional Compensation
Benefit”) an amount equal to (A) the excess of  (i) the product of the Maximum Credit
and the cumulative Distributions paid by the Company subsequent to the Base
Date in the Base Year over (ii) the product of the Maximum Credit and any
positive Cumulative Cash Flow Tax Difference less (B) the amount of
Additional Compensation Benefit previously paid to you subsequent to the 

 

3

 

Base Date in the Base
Year.  This
provision shall not apply to intercompany payments among the Company and its
own wholly-owned subsidiaries or among two wholly-owned subsidiaries of the
Company, or to reimbursement to Renco for a proportionate part of costs, such
as audit charges and insurance premiums, paid by Renco on behalf of itself and
its subsidiaries, including the Company;

 

(b)   If, while you shall be employed by the
Company (and whether before or after the Base Date in 2007), all or
substantially all the stock or assets of the Company shall be sold to a person
who is not an affiliate of Ira Leon Rennert, or if The Renco Group, Inc.
sells a controlling interest in the Company, then, upon the closing of such
sale, your full Maximum Credit shall be deemed to be vested, and you shall be
entitled to receive, in kind and on the same terms and conditions as the
Company or its shareholder is being paid as payment in full of your
participation, an amount equal to (A) the product of the Maximum Credit
and any Net Proceeds (as defined below) of the sale, plus (B) the product
of the Maximum Credit and the cumulative Distributions paid by the Company
subsequent to the Base Date in the Base Year, less (C) the product of the
Maximum Credit and the Cumulative Income Statement Tax Difference through the
date of sale, and less (D) the amount of any Additional Compensation
Benefit previously paid to you subsequent to the Base Date in the Base
Year.  “Net Proceeds”, for purposes
hereof, shall be equal to the amount, if any, of  the proceeds of the sale after deducting all
expenses of the sale, all applicable federal, state and local taxes, all
liabilities retained by the seller, and all amounts paid or due to holders of
the Company’s preferred stock. Except for such payment, neither you nor the
Company shall have any further rights or liabilities hereunder.

 

6.     Condition Precedent. The Company’s
obligation to make the Payment to you shall be conditioned on your faithful
adherence to your employment arrangements with the Company and on your
refraining from engaging, during the period over which such payments are to be
made to you, directly or indirectly in any activity which is competitive with
the business engaged in by the Company at the date of termination of your
employment.  If you do engage in any such
competitive activities, then we shall no longer be obligated to make any
payments to you hereunder.

 

7.     Notice.  Any
notices to be sent pursuant hereto shall be sent by hand, certified or
registered mail or overnight service to you, at the address indicated above and
a copy to The Renco Group, Inc. at 30 Rockefeller Plaza, New York, NY 10112, 42nd
floor, to the attention of Ira Leon Rennert, or to any other address which the
Company or Renco may designate by notice in writing.

 

4

 

Please confirm that the foregoing correctly sets forth
our full agreement with respect to your net worth appreciation benefit by
signing and returning the enclosed copy of this letter.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  The Doe Run
  Resources Corporation.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Ira Leon Rennert

  	
   

  
	
   

  	
  Ira Leon Rennert

  
	
   

  	
  Chairman of the Board

  

 

Accepted and Agreed to:

 

 

	
  /s/ David Chaput

  	
   

  
	
  David Chaput

  

 

5EXHIBIT 10.1

 

MEDICALCV, INC.

 

NON-QUALIFIED STOCK OPTION AGREEMENT

PURSUANT TO 2001 EQUITY INCENTIVE PLAN

 

	
  No. of
  shares subject to option: 68,584

  	
   

  	
  Option No.: F-033v2

  

Date of grant: November 18,
2004

 

THIS OPTION AGREEMENT is entered into by and between MedicalCV, Inc.,
a Minnesota corporation (the “Company”), and John H. Jungbauer (the “Optionee”)
pursuant to the Company’s 2001 Equity Incentive Plan, as amended to date (the “Plan”).  Unless otherwise defined herein, certain
capitalized terms shall have the meaning set forth in the Plan.

 

W I T N E S S E T H:

 

1.                         Nature
of the Option.  This Option is not
intended to qualify as an Incentive Stock Option within the meaning of Section 422
of the United States Internal Revenue Code of 1986, as amended.

 

2.                         Grant
of Option.  Pursuant to the
provisions of the Plan, the Company grants to the Optionee, subject to the
terms and conditions of the Plan and to the terms and conditions herein set
forth, the right and option to purchase from the Company all or a part of an
aggregate of 68,584 (sixty-eight thousand, five hundred eighty-four) shares of
Stock (the “Shares”) at the purchase price of $2.16 per share, such Option to
be exercised as hereinafter provided.

 

3.                         Terms
and Conditions.  It is understood and
agreed that the Option evidenced hereby is subject to the following terms and
conditions:

 

(a)                    Expiration
Date.  This Option shall expire ten
years after the date of grant specified above. 
Notwithstanding the foregoing, if the Optionee’s employment or
relationship with the Company or Related Company is terminated by reason of
death, Disability or Retirement, this Option shall expire on the one-year
anniversary of the termination date.  If
the Optionee’s employment or relationship with the Company or Related Company
is terminated by reasons for other than death, Disability or Retirement, this
Option shall, subject to Section 4 of the Plan, expire on the three-month
anniversary of the termination date. 
Except as otherwise provided by the Board, an Optionee shall be considered
to have a “Disability” if the Optionee is unable, by reason of a medically
determinable physical or mental impairment, to substantially perform the
principal duties of employment with the Company, which condition, in the
opinion of a physician selected by the Board, is expected to have a duration of
not less than 120 days.

 

(b)                   Exercise
of Option.  Subject to the Plan and
the other terms of this Agreement regarding the exercisability of this Option,
this Option shall be exercisable cumulatively, to the extent it is vested, as
set forth in Exhibit A.  Any
exercise shall be accompanied by a written notice to the Company specifying the
number of shares of Stock as to which the Option is being exercised.  Notation of any partial exercise shall be
made by the Company on Schedule I hereto. 
This Option may not be exercised for a fraction of a Share, and must be
exercised for no fewer than one hundred (100) shares of Stock, or such lesser
number of shares as may be vested.

 

(c)                    Payment
of Purchase Price Upon Exercise.  At the time of any exercise, the Exercise
Price of the Shares as to which this Option is exercised shall be paid in cash
to the Company, unless, in accordance with the provisions of Section 4.2(c) of
the Plan, the Board shall permit or require payment of the purchase price in
another manner set forth in the Plan.

 

(d)                   Nontransferability.  This Option shall not be transferable other
than by will or by the laws of descent and distribution.  During the lifetime of the Optionee, this
Option shall be exercisable only by the Optionee or by the Optionee’s guardian
or legal representative.  No transfer of
this Option by the Optionee by will or by the laws of descent and distribution
shall be effective to bind the Company unless the Company is furnished with
written notice thereof and a copy of the will and/or such other evidence as the
Board may determine necessary to establish the validity of the transfer.

 

(e)                    Acceleration
of Option Upon Change in Control.  In the event of a Change in Control, as defined
in Section 1.3 of the Plan, the provisions of Section 3(b) and Exhibit A
hereof pertaining to vesting shall cease to apply and this Option shall become
immediately vested and fully exercisable with respect to all Shares; provided,
however, that the

 

 

provisions
of this Subsection 3(e) shall not apply unless the Optionee has been
employed by the Company for a period equal to or exceeding one calendar
year.  No acceleration of vesting shall
occur under this Subsection 3(e) in the event a surviving corporation
or its parent assumes this Option or in the event the surviving corporation or
its parent substitutes an option agreement with substantially the same terms as
provided in this Agreement.  Nothing in
this Subsection 3(e) shall limit the Committee’s authority to cancel
this Option in accordance with Section 9 of the Plan.

 

(f)                      Subject
to Lock Up.  Optionee understands
that the Company at a future date may file a registration or offering statement
(the “Registration Statement”) with the Securities and Exchange Commission to
facilitate an underwritten public offering of its securities.  The Optionee agrees, for the benefit of the
Company, that should such an underwritten public offering be made and should
the managing underwriter of such offering require, the undersigned will not,
without the prior written consent of the Company and such underwriter, during
the Lock Up Period as defined herein: sell, transfer or otherwise dispose of,
or agree to sell, transfer or otherwise dispose of this Option or any of the
Shares acquired upon exercise of this Option during the Lock Up Period; or sell
or grant, or agree to sell or grant, options, rights or warrants with respect
to any of the Shares acquired upon exercise of this Option.  The foregoing does not prohibit gifts to
donees or transfers by will or the laws of descent to heirs or beneficiaries
provided that such donees, heirs and beneficiaries shall be bound by the
restrictions set forth herein.  The term “Lock
Up Period” shall mean the lesser of (x) 180 days or
(y) the period during which Company officers and directors are restricted by
the managing underwriter from effecting any sales or transfers of the
Shares.  The Lock Up
Period shall commence on the effective date of the Registration Statement.

 

(g)                   Not
An Employment Contract.  The Option will not confer on the Participant
any right with respect to continuance of employment or other service with the
Company or any Subsidiary, nor will it interfere in any way with any right the
Company or any Subsidiary would otherwise have to terminate or modify the terms
of such Participant’s employment or other service at any time.

 

(h)                   No
Rights as Shareholder.  The Optionee
shall have no rights as a shareholder of the Company with respect to any Shares
prior to the date of issuance to the Optionee of a certificate for such Shares.

 

(i)                       Compliance
with Law and Regulations.  This
Option and the obligation of the Company to sell and deliver Shares hereunder
shall be subject to all applicable laws, rules and regulations (including,
but not limited to, federal securities laws) and to such approvals by any
government or regulatory agency as may be required.  This Option shall not be exercisable, and the
Company shall not be required to issue or deliver any certificates for Shares
of Stock prior to the completion of any registration or qualification of such
Shares under any federal or state law, or any rule or regulation of any
government body which the Company shall, in its sole discretion, determine to
be necessary or advisable.  Moreover,
this Option may not be exercised if its exercise or the receipt of Shares of
Stock pursuant thereto would be contrary to applicable law.

 

(j)                       Withholding.  All deliveries and distributions under this
Agreement are subject to withholding of all applicable taxes.  At the election of the Participant, and
subject to such rules and limitations as may be established by the
Committee from time to time, such withholding obligations may be satisfied
through the surrender of shares of Stock which the Participant already owns, or
to which the Participant is otherwise entitled under the Plan.

 

4.                         Termination
of Employment. Upon the termination of the employment of Optionee prior to
the expiration of the Option, the following provisions shall apply:

 

(a)                    Upon
the Involuntary Termination of Optionee’s employment or the voluntary
termination or resignation of Optionee’s employment, the Optionee may exercise
the Option to the extent the Optionee was vested in and entitled to exercise
the Option at the date of such employment termination for a period of three (3) months
after the date of such employment termination, or until the term of the Option
has expired, whichever date is earlier. 
To the extent the Optionee was not entitled to exercise this Option at
the date of such employment termination, or if Optionee does not exercise this
Option within the time specified herein, this Option shall terminate.

 

(b)                   If
the employment of an Optionee is terminated by the Company for cause, then the
Board or the Committee shall have the right to cancel any Options granted to
the Optionee under the Plan.

 

5.                         Death,
Disability or Retirement of Optionee. 
Upon the death, Disability or Retirement, as defined herein, of Optionee
prior to the expiration of the Option, the following provisions shall apply:

 

(a)                    If
the Optionee is at the time of his or her Disability employed by the Company or
a Subsidiary and has been in continuous employment (as determined by the
Committee in its sole discretion) since the Date of Grant of

 

 

the
Option, then the Option may be exercised by the Optionee for one (1) year
following the date of such Disability or until the expiration date of the
Option, whichever date is earlier, but only to the extent the Optionee was
vested in and entitled to exercise the Option at the time of his or her
Disability.  For purposes of this Section 5,
the term “Disability” shall mean that the Optionee is unable, by reason of a
medically determinable physical or mental impairment, to substantially perform
the principal duties of employment with the Company, which condition, in the
opinion of a physician selected by the Board, is expected to have a duration of
not less than 120 days, unless the Optionee is employed by the Company, a
Parent, a Subsidiary or an Affiliate, pursuant to an employment agreement which
contains a definition of “Disability,” in which case such definition shall
control.  The Committee, in its sole
discretion, shall determine whether an Optionee has a Disability and the date
of such Disability.

 

(b)                   If
the Optionee is at the time of his or her death employed by the Company or a
Subsidiary and has been in continuous employment (as determined by the
Committee in its sole discretion) since the Date of Grant of the Option, then
the Option may be exercised by the Optionee’s estate or by a person who
acquired the right to exercise the Option by will or the laws of descent and
distribution, for one (1) year following the date of the Optionee’s death
or until the expiration date of the Option, whichever date is earlier, but only
to the extent the Optionee was vested in and entitled to exercise the Option at
the time of death.

 

(c)                    If
the Optionee is at the time of his or her Retirement employed by the Company or
a Subsidiary and has been in continuous employment (as determined by the
Committee in its sole discretion) since the Date of Grant of the Option, then
the Option may be exercised by the Optionee for one (1) year following the
date of the Optionee’s Retirement or until the expiration date of the Option,
whichever date is earlier, but only to the extent the Optionee was vested in
and entitled to exercise the Option at the time of Retirement.  For purposes of this Section 5,
Retirement of the Participant shall mean, with the approval of the Committee,
the occurrence of the Participant’s Date of Termination on or after the date
the Participant attains age 55.

 

(d)                   If
the Optionee dies within three (3) months after Termination of Optionee’s
employment with the Company or a Subsidiary the Option may be exercised for nine
(9) months following the date of Optionee’s death or the expiration date
of the Option, whichever date is earlier, by the Optionee’s estate or by a
person who acquires the right to exercise the Option by will or the laws of
descent or distribution, but only to the extent the Optionee was vested in and
entitled to exercise the Option at the time of Termination.

 

6.                         Termination
of Relationship for Misconduct.  If
the Board or the Committee reasonably believes that the Optionee has committed
an act of misconduct, it may suspend the Optionee’s right to exercise this
option pending a determination by the Board or the Committee.  If the Board or the Committee determines that
the Optionee has committed an act of misconduct, neither the Optionee nor the
Optionee’s estate shall be entitled to exercise any option whatsoever. For
purposes of this Section 6, an act of misconduct shall include
embezzlement, fraud, dishonesty, nonpayment of an obligation owed to the
Company, breach of fiduciary duty or deliberate disregard of the Company’s rules resulting
in loss, damage or injury to the Company, or if the Optionee makes an
unauthorized disclosure of any Company trade secret or confidential
information, engages in any conduct constituting unfair competition with
respect to the Company, or induces any party to breach a contract with the
Company,   In making such determination,
the Board or the Committee shall act fairly and shall give the Optionee an
opportunity to appear and present evidence on the Optionee’s behalf at a
hearing before the Board or the Committee.

 

7.                         Optionee
Bound by Plan.  The Optionee hereby
acknowledges receipt of a copy of the Plan and agrees to be bound by all the
terms and provisions thereof.  In the
event of any question or inconsistency between this Agreement and the Plan, the
terms and conditions of the Plan shall govern.

 

8.                         Heirs
and Successors.  This Agreement shall
be binding upon, and inure to the benefit of, the Company and its successors
and assigns, and upon any person acquiring, whether by merger, consolidation,
purchase of assets or otherwise, all or substantially all of the Company’s
assets and business.  If any rights
exercisable by the Participant or benefits deliverable to the Participant under
this Agreement have not been exercised or delivered, respectively, at the time
of the Participant’s death, such rights shall be exercisable by the Designated
Beneficiary, and such benefits shall be delivered to the Designated
Beneficiary, in accordance with the provisions of this agreement and the
Plan.  The “Designated Beneficiary” shall
be the beneficiary or beneficiaries designated by the Participant in a writing
filed with the Committee in such form and at such time as the Committee shall
require.  If a deceased Participant fails
to designate a beneficiary, or if the Designated Beneficiary does not survive
the Participant, any rights that would have been exercisable by the Participant
and any benefits distributable to the Participant shall be exercised by or
distributed to the legal representative of the estate of the Participant.  If a deceased Participant designates a
beneficiary and the Designated Beneficiary survives the Participant but dies
before the Designated Beneficiary’s

 

 

exercise of all rights under this Agreement or before
the complete distribution of benefits to the Designated Beneficiary under this
Agreement, then any rights that would have been exercisable by the Designated
Beneficiary shall be exercised by the legal representative of the estate of the
Designated Beneficiary, and any benefits distributable to the Designated
Beneficiary shall be distributed to the legal representative of the estate of
the Designated Beneficiary.

 

9.                         Plan
Governs.  Notwithstanding anything in
this Agreement to the contrary, the terms of this Agreement shall be subject to
the terms of the Plan, a copy of which may be obtained by the Participant from
the office of the Secretary of the Company; and this Agreement is subject to
all interpretations, amendments, rules and regulations promulgated by the Committee
from time to time pursuant to the Plan.

 

10.                   Notices.  Any notice hereunder to the Company shall be
addressed to it at its principal executive offices, located at 9725 South
Robert Trail, Inver Grove Heights, Minnesota 55077, Attention: Chief Executive
Officer; and any notice hereunder to the Optionee shall be addressed to the
Optionee at the address last appearing in the employment records of the
Company; subject to the right of either party to designate at any time
hereunder in writing some other address.

 

11.                   Counterparts.  This Agreement may be executed in two
counterparts each of which shall constitute one and the same instrument.

 

12.                   Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of
Minnesota, except to the extent preempted by federal law, without regard to the
principles of comity or the conflicts of law provisions of any other
jurisdiction.

 

 

IN WITNESS WHEREOF, MedicalCV, Inc. has caused this Agreement to
be executed by its Chief Executive Officer and the Optionee has executed this
Agreement, both as of the day and year first above written.

 

	
   

  	
  MedicalCV, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Marc P. Flores

  	
   

  
	
   

  	
  By Marc P. Flores

  
	
   

  	
  Its President and CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OPTIONEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ John H. Jungbauer

  	
   

  
	
   

  	
  John H. Jungbauer

  
	
   

  	
  12122 Everton Avenue North

  
	
   

  	
  White Bear Lake, MN 
  55110

  
				

 

 

EXHIBIT A

 

OPTION AND VESTING DATA

 

	
  Name of Optionee:

  	
   

  	
  John H. Jungbauer

  
	
   

  	
   

  	
   

  
	
  Number of Shares Subject to Option:

  	
   

  	
  68,584

  
	
   

  	
   

  	
   

  
	
  Date of Grant:

  	
   

  	
  November 18, 2004

  

 

OPTION VESTING SCHEDULE

 

	
   

  	
   

  	
  NO. OF SHARES

  	
   

  
	
  DATE

  	
   

  	
  EXERCISABLE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  November 18, 2005

  	
   

  	
  17,146

  	
   

  
	
  November 18, 2006

  	
   

  	
  17,146

  	
   

  
	
  November 18, 2007

  	
   

  	
  17,146

  	
   

  
	
  November 18, 2008

  	
   

  	
  17,146

  	
   

  

 

The above vesting schedule assumes an ongoing relationship with
the Company.  Your rights to exercise the
unvested portion of your option will cease upon termination of relationship
with the Company, subject to Change in Control provisions set forth in Section 9
of the Plan.  Reference is made to the
Plan and to relevant sections of the Agreement between you and the Company for
your rights to exercise the vested portion of your option in the event of
termination of your relationship with the Company during lifetime or upon
death.  The above vesting schedule is
in all respects subject to the terms of those documents.

 

	
  OPTIONEE

  	
   

  	
  MEDICALCV, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ John H. Jungbauer

  	
   

  	
   

  	
  /s/ Marc P. Flores

  	
   

  
	
  John H. Jungbauer

  12122 Everton Avenue North

  White Bear Lake, MN  55110

  	
   

  	
  By Marc P. Flores

  Its President and CEO

  
					

 

 

SCHEDULE I - NOTATIONS AS
TO PARTIAL EXERCISE

 

	
   

  	
   

  	
  Number of

  	
   

  	
  Balance of

  	
   

  	
   

  	
   

  	
   

  
	
  Date of

  	
   

  	
  Purchased

  	
   

  	
  Shares on

  	
   

  	
  Authorized

  	
   

  	
  Notation

  
	
  Exercise

  	
   

  	
  Shares

  	
   

  	
  Option

  	
   

  	
  Signature

  	
   

  	
  Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]