Document:

exv10w15

 

EXHIBIT 10.15

US BIOENERGY CORPORATION

2006 EMPLOYEE STOCK PURCHASE PLAN

     1. Purpose. The purpose of the Plan is to provide employees of the Company and its
Designated Subsidiaries with an opportunity to purchase common stock of the Company.

     2. Definitions.

          a. “Board” shall mean the Board of Directors of the Company.

          b. “Change in Capitalization” shall mean any dividend or other distribution (whether in the
form of cash, Common Stock, or other property), recapitalization, stock split, reverse split,
reorganization, merger, consolidation, spin-off, combination, repurchase, or share exchange, or
other similar corporate transaction or event.

          c. “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and the
rules and regulations promulgated thereunder.

          d. “Committee” shall mean the Board, the Compensation Committee of the Board, or such other
committee appointed by the Board to administer the Plan and to perform the functions set forth
herein.

          e. “Common Stock” shall mean shares of common stock, par value $.01 per share, of the Company.

          f. “Company” shall mean US BioEnergy Corporation, a South Dakota corporation.

          g. “Compensation” shall mean the pre-tax fixed salary or base wage paid by the Company to an
Employee as reported by the Company to the United States government (or other applicable
government) for income tax purposes, including an Employee’s portion of salary deferral
contributions pursuant to Section 401(k) of the Code and any amount excludable pursuant to Section
125 of the Code, but excluding any bonus, fee, overtime pay, severance pay, expenses, stock option
or other equity incentive income, or other special emolument or any credit or benefit under any
employee plan maintained by the Company.

          h. “Continuous Status as an Employee” shall mean the absence of any interruption or
termination of service as an Employee. Continuous Status as an Employee shall not be considered
interrupted in the case of a leave of absence agreed to in writing by the Company (including, but
not limited to, military or sick leave), provided that

 

 

such leave is for a period of not more than 90 days or reemployment upon the expiration of
such leave is guaranteed by contract or statute.

          i. “Designated Subsidiaries” shall mean the subsidiaries of the Company which have been
designated by the Company from time to time in its sole discretion as eligible to participate in
the Plan.

          j. “Effective Date” shall mean the date on which the Company’s Registration Statement on Form
S-8 filed with respect to the Plan becomes effective.

          k. “Employee” shall mean any person, including an officer, who is regularly employed by the
Company or one of its Designated Subsidiaries.

          l. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to
time, and the rules and regulations promulgated thereunder.

          m. “Exercise Date” shall mean the last business day of each Offering Period.

          n. “Fair Market Value” per share as of a particular date shall mean (i) the closing sales
price per share of Common Stock on the national securities exchange on which the Common Stock is
principally traded, on such date or on the last preceding date on which there was a sale of such
Common Stock on such exchange, or (ii) if the shares of Common Stock are not then listed on a
national securities exchange or traded in an over-the-counter market, such value as the Committee,
in its sole discretion, shall determine.

          o. “Offering Date” shall mean June 1 and December 1 of each Plan Year during the effectiveness
of the Plan, or such other date or dates determined by the Committee.

          p. “Offering Period” shall mean each six month period commencing on any Offering Date on or
after the Effective Date during the effectiveness of the Plan, or such other date or dates
determined by the Committee; provided, however, that unless otherwise determined by the Committee,
the first Offering Period under the Plan shall commence on January 1, 2007 and end on May 31, 2007.
Notwithstanding the foregoing, an Offering Period may be for a shorter or longer duration, as
determined in the sole discretion of the Committee, but in no event may an Offering Period exceed
24 months in duration.

          q. “Participant” shall mean an Employee who participates in the Plan.

          r. “Plan” shall mean this US BioEnergy Corporation 2006 Employee Stock Purchase Plan, as may
be amended from time to time.

          s. “Plan Year” shall mean the calendar year, or such other period or periods determined by the
Committee.

2

 

          t. “Registration Statement” shall mean the registration statement on Form S-8 filed with the
Securities and Exchange Commission for the Plan.

     3. Eligibility.

     Subject to the requirements of Section 4b hereof, any person who is (i) not, immediately after
the option is granted, an owner of stock possessing five percent (5%) or more of the total combined
voting power or value of all classes of stock of the Company, a parent or a subsidiary (as
determined under Section 423(b)(3) of the Code); (ii) an Employee as of an Offering Date and (iii)
regularly scheduled to work for the Company or any Designated Subsidiary at least 20 hours per week
and at least five months per year shall be eligible to participate in the Plan and be granted an
option for the Offering Period commencing on such Offering Date if at the commencement of such
Offering Period such person has maintained Continuous Status as an Employee for at least three
months; provided, however, that the Company shall have the right to exclude from
eligibility and participation any person who is an officer of the Company or any subsidiary.

     4. Grant of Option; Participation.

          a. On each Offering Date, the Company shall commence an offer by granting each eligible
Employee an option to purchase shares of Common Stock, subject to the limitations set forth in
Sections 3 and 10 hereof; provided, however, that in no event shall an eligible Employee be
permitted to purchase during any Offering Period more than 10,000 shares of Common Stock (subject
to any adjustment pursuant to Section 16); and provided, further, that such purchase shall be
subject to the limitations set forth in Sections 3, 4(d) and 10 hereof. The Committee may, for
future Offering Periods, increase or decrease, in its absolute discretion, the maximum number of
shares of Common Stock a participant may purchase during each Offering Period.

          b. Each eligible Employee may elect to become a Participant in the Plan with respect to an
Offering Period, only by filing an agreement with the Company authorizing payroll deductions (as
set forth in Section 5 hereof). Such authorization will remain in effect for all subsequent
Offering Periods during which the Participant is an Employee eligible to participate in the Plan,
until modified or terminated by the Participant.

          c. The option price per share of the Common Stock subject to an offering shall be 90% of the
lesser of (i) the Fair Market Value of a share of Common Stock as of the Offering Date or (ii) the
Fair Market Value of a share of Common Stock as of the Exercise Date.

          d. No eligible Employee shall be granted an option under the Plan that permits his rights to
purchase Common Stock under the Plan, together with other options to purchase Common Stock or other
stock under all other employee stock purchase plans of the Company, any parent corporation or any
subsidiary subject to Section 423 of the Code, to accrue at a rate which exceeds $25,000 of fair
market value of such Common Stock or other stock (determined at the time the option is granted) for
each calendar year in which the

3

 

option is outstanding at any time. For purpose of the limitation imposed by this subsection,
(i) the right to purchase Common Stock or other stock under an option accrues when the option (or
any portion thereof) first becomes exercisable during the calendar year, (ii) the right to purchase
Common Stock or other stock under an option accrues at the rate provided in the option, but in no
case may such rate exceed $25,000 of the fair market value of such Common Stock or other stock
(determined at the time such option is granted) for any one calendar year, and (iii) a right to
purchase Common Stock which has accrued under an option may not be carried over to any other
option. This limitation shall be applied in accordance with Section 423(b)(8) of the Code and the
Treasury Regulations promulgated thereunder.

     5. Payroll Deductions.

          a. A Participant may, in accordance with rules adopted by the Committee, authorize a payroll
deduction (or such other method of payment determined by the Committee) of any whole percentage
from 1% to 10% of such Participant’s Compensation for each pay period. A Participant may increase
or decrease such payroll deduction (including a cessation of payroll deductions) at any time but
not more frequently than once per Offering Period, by filing a new authorization form with the
Committee. For purposes of the Plan, any reference to contributions by payroll deduction is deemed
to also include any other method of contribution determined by the Committee from time to time.

          b. All payroll deductions made by a Participant shall be credited to such Participant’s
account under the Plan. A Participant may not make any additional payments into such account.

     6. Exercise of Option.

          a. Unless a Participant withdraws from the Plan as provided in Section 8 hereof, such
Participant’s option to purchase Common Stock will be exercised automatically on the Exercise Date,
and the maximum number of shares subject to such option will be purchased for such Participant at
the applicable option price with the accumulated payroll deductions in such Participant’s account.
During a Participant’s lifetime, a Participant’s option to purchase shares hereunder is exercisable
only by such Participant.

          b. If applicable, any cash balance remaining in a Participant’s account after the termination
of an Offering Period that is not sufficient to purchase one share of Common Stock will be carried
forward to the Participant’s account for the purchase of Common Stock during the next Offering
Period, subject to earlier withdrawal by the Participant as provided under Section 8 hereof, in
which case the Participant will receive a cash payment equal to the balance of his or her account.
Any additional amounts remaining in a Participant’s account following the purchase of shares of
Common Stock on any Exercise Date that are equal to, or in excess of, the amount required under
this Section 6(b) to purchase at least one full share of Common Stock shall be returned to the
Participant as soon as reasonably practicable following the Exercise Date.

4

 

          c. The shares of Common Stock purchased upon exercise of an option hereunder shall be credited
to the Participant’s account under the Plan and shall be deemed to be transferred to the
Participant on the Exercise Date and, except as otherwise provided herein, the Participant shall
have all rights of a stockholder with respect to such shares.

     7. Delivery of Common Stock.

     As promptly as practicable after receipt by the Committee of a written request for withdrawal
of Common Stock from any Participant, the Company shall arrange the delivery to such Participant of
a stock certificate representing the shares of Common Stock which the Participant requests to
withdraw. Withdrawals may not occur prior to 30 days after the Exercise Date on which such shares
of Common Stock were purchased. Shares of Common Stock received upon stock dividends or stock
splits shall be treated as having been purchased on the Exercise Date of the shares to which they
relate.

     8. Withdrawal; Termination of Employment.

          a. A Participant may withdraw all, but not less than all, the payroll deductions and cash
dividends credited to such Participant’s account (that have not been used to purchase shares of
Common Stock) under the Plan at any time by giving written notice to the Company, provided
that such notice is received prior to the immediately upcoming Exercise Date. All such payroll
deductions credited to such Participant’s account will be paid to such Participant promptly after
receipt of such Participant’s notice of withdrawal, and such Participant’s option for the Offering
Period in which the withdrawal occurs will be automatically terminated. No further payroll
deductions for the purchase of shares of Common Stock will be made for such Participant during such
Offering Period or during following the Offering Period, and any additional cash dividends made
during the Offering Period will be distributed to the Participant.

          b. Upon termination of a Participant’s Continuous Status as an Employee during the Offering
Period for any reason, including voluntary termination, retirement or death, the payroll deductions
and cash dividends credited to such Participant’s account (that have not been used to purchase
shares of Common Stock) will be returned (and any future cash dividends will be distributed) to
such Participant or, in the case of such Participant’s death, to the person or persons entitled
thereto under Section 12 hereof, and such Participant’s option will be automatically terminated.

     9. Dividends and Interest.

          a. Cash dividends paid on Common Stock held in a Participant’s account shall be distributed to
the Participant in cash, less the cost of administrative and mailing expenses. Dividends paid in
Common Stock, or stock splits of the Common Stock, shall be credited to the accounts of
Participants. Dividends paid in property other than cash or Common Stock shall be distributed to
Participants as soon as practicable.

5

 

          b. No interest shall accrue on or be payable with respect to the payroll deductions or
credited cash dividends of a Participant in the Plan.

     10. Stock.

          a. The maximum number of shares of Common Stock which shall be reserved for sale under the
Plan shall be 3,280,472, subject to adjustment upon
Changes in Capitalization of the Company as provided in Section 16 hereof. Such shares of Common
Stock may be authorized or unissued shares or treasury shares. If the total number of shares which
would otherwise be subject to options granted pursuant to Section 4a hereof on an Offering Date
exceeds the number of shares then available under the Plan (after deduction of all shares for which
options have been exercised or are then outstanding), the Committee shall make a pro rata
allocation of the shares remaining available for option grant in as uniform a manner as shall be
practicable and as it shall determine to be equitable, in its sole discretion. In such event, the
Committee shall give written notice to each Participant of such reduction of the number of option
shares affected thereby and shall similarly reduce the rate of payroll deductions, if necessary.

          b. Shares of Common Stock to be delivered to a Participant under the Plan will be registered
in the name of the Participant or, at the election of the Participant, in the name of the
Participant and another person as joint tenants with rights of survivorship.

     11. Administration. The Plan shall be administered by the Committee, and the
Committee may select an administrator to whom its duties and responsibilities hereunder may be
delegated. The Committee shall have full power and authority, subject to the provisions of the
Plan, to promulgate such rules and regulations as it deems necessary for the proper administration
of the Plan, to interpret the provisions and supervise the administration of the Plan, and to take
all actions in connection therewith or in relation thereto as it deems necessary or advisable. Any
decision reduced to writing and signed by a majority of the members of the Committee shall be fully
effective as if it had been made at a meeting duly held and shall be binding on all parties. The
Company will pay all expenses incurred in the administration of the Plan. No member of the
Committee shall be personally liable for any action, determination, or interpretation made in good
faith with respect to the Plan, and all members of the Committee shall be fully indemnified by the
Company with respect to any such action, determination or interpretation.

     12. Designation of Beneficiary.

          a. A Participant may file, on forms supplied by and delivered to the Company, a written
designation of a beneficiary who is to receive any shares and cash remaining in such Participant’s
account under the Plan in the event of the Participant’s death.

6

 

          b. Such designation of beneficiary may be changed by the Participant at any time by written
notice. In the event of the death of a Participant and in the absence of a beneficiary validly
designated under the Plan who is living at the time of such Participant’s death, the Company shall
deliver shares of Common Stock and/or cash to the executor or administrator of the estate of the
Participant or, if no such executor or administrator has been appointed (to the knowledge of the
Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to
any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative
is known to the Company, then to such other person as the Company may designate.

     13. Transferability. Neither payroll deductions credited to a Participant’s account
nor any rights with regard to the exercise of an option or to receive shares under the Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of
descent and distribution or as provided in Section 12 hereof) by the Participant. Any such attempt
at assignment, transfer, pledge or other disposition shall be without effect, except that the
Company may treat such act as an election to withdraw funds in accordance with Section 8 hereof.

     14. Use of Funds. All payroll deductions received or held by the Company under the
Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated
to segregate such payroll deductions.

     15. Reports. Individual accounts will be maintained for each Participant. Statements
of account will be given to Participants as soon as practicable following each Offering Period,
which statements will set forth the amounts of payroll deductions, the per share purchase price,
the number of shares of Common Stock purchased, the aggregate shares in the Participant’s account
and the remaining cash balance, if any.

     16. Changes in Capitalization; Adjustment of Options.

          a. Subject to Section 16(c) below, in the event that the Committee, in its sole discretion,
determines that any Change in Capitalization affects the Common Stock such that an adjustment is
appropriate in order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan or with respect to an option, then the Committee
shall, in such manner as it may deem equitable, adjust any or all of: (i) the number and kind of
shares of Common Stock (or other securities or property) with respect to which options may be
granted (including, but not limited to, adjustments of the limitation in Section 10 on the maximum
number of shares of Common Stock which may be purchased and the per Participant limitation in
Section 4(a)), (ii) the number and kind of shares of Common Stock (or other securities or property)
subject to outstanding options, and (iii) the exercise price with respect to any option.

          b. Subject to Section 16(c) below, in the event of any Change in Capitalization or any unusual
or nonrecurring transactions or events affecting the Company, any affiliate of the Company, or the
financial statements of the Company or any affiliate of the Company, or of changes in applicable
laws, regulations, or accounting principles, the

7

 

Committee, in its sole discretion, and on such terms and conditions as it deems appropriate,
either by the terms of the option or by action taken prior to the occurrence of such transaction or
event and either automatically or upon the Employee’s request, is hereby authorized to take any one
or more of the following actions whenever the Committee determines that such action is appropriate
in order to prevent dilution or enlargement of the benefits or potential benefits intended to be
made available under the Plan or with respect to any option granted under the Plan, to facilitate
such transactions or events or to give effect to such changes in laws, regulations or principles:

	 	(i)	 	To provide that all options outstanding shall terminate
without being exercised on such date as the Committee determines in its sole
discretion;
	 
	 	(ii)	 	To provide that all options outstanding shall be exercised
prior to the end of the Offering Period for such options on such date as the
Committee determines in its sole discretion, and such options shall terminate
immediately after such exercises;
	 
	 	(iii)	 	To provide for either the purchase of any option outstanding
for an amount of cash equal to the amount that could have been obtained upon
the exercise of such option had such option been currently exercisable, or the
replacement of such option with other rights or property selected by the
Committee in its sole discretion;
	 
	 	(iv)	 	To provide that such option be assumed by the successor or
survivor corporation, or a parent or subsidiary thereof, or shall be
substituted for by similar options, covering the stock of the successor or
survivor corporation, or a parent or subsidiary thereof, with appropriate
adjustments as to the number and kind of shares and prices; and
	 
	 	(v)	 	To make adjustments in the number and type of shares of
Common Stock (or other securities or property) subject to outstanding options,
or in the terms and conditions of outstanding options, or options that may be
granted in the future.

          c. No adjustment or action described in this Section 16 or in any other provision of the Plan
shall be authorized to the extent that such adjustment or action would cause the Plan to fail to
satisfy the requirements of Section 423 of the Code. Furthermore, no such adjustment or action
shall be authorized to the extent such adjustment or action would result in short-swing profits
liability under Section 16 of the Securities and Exchange Act of 1934, as amended, or violate the
exemptive conditions of Rule 16b-3 unless the Committee determines, in its discretion, that the
option is not required to comply with such exemptive conditions. The number of shares of Common
Stock subject to any option shall always be rounded to the next whole number.

8

 

          d. The existence of the Plan and the options granted hereunder shall not affect or restrict in
any way the right or power of the Company or the stockholders of the Company to make or authorize
any adjustment, recapitalization, reorganization or other change in the Company’s capital structure
or its business, any merger or consolidation of the Company, any issue of stock or of options,
warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks
whose rights are superior to or affect the Common Stock or the rights thereof of which are
convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets or business, or any other
corporate act or proceeding, whether of a similar character or otherwise.

     17. Amendment or Termination. The Board may terminate or amend the Plan at any time
and for any reason or no reason. Except as provided in Section 16 hereof, no such termination can
adversely affect options previously granted and no amendment may make any change in any option
theretofore granted which adversely affects the rights of any Participant. No amendment shall be
effective unless approved by the stockholders of the Company if stockholder approval of such
amendment is required to comply with Section 423 of the Code, Rule 16b-3 under the Exchange Act or
to comply with any other law, regulation or stock exchange rule.

     18. Notices. All notices or other communications by a Participant to the Company
under or in connection with the Plan shall be deemed to have been duly given when received in the
form specified by the Company at the location, or by the person, designated by the Company for the
receipt thereof.

     19. Regulations and Other Approvals; Governing Law.

          a. The Plan and the rights of all persons claiming hereunder shall be construed and determined
in accordance with the laws of the State of South Dakota without giving effect to the choice of law
principles thereof, except to the extent that such law is preempted by federal law.

          b. The obligation of the Company to sell or deliver shares of Common Stock with respect to
options granted under the Plan shall be subject to all applicable laws, rules and regulations,
including all applicable federal and state securities laws, and the obtaining of all such approvals
by governmental agencies as may be deemed necessary or appropriate by the Committee.

          c. The Plan is intended to comply with Section 423 of the Code and Rule 16b-3 under the
Exchange Act, and the Committee shall interpret and administer the provisions of the Plan in a
manner consistent therewith. Any provisions inconsistent with such Code section or Rule shall be
inoperative and shall not affect the validity of the Plan.

     20. Withholding of Taxes. If the Participant makes a disposition, within the meaning
of Section 424(c) of the Code and regulations promulgated thereunder, of any share or shares issued
to such Participant pursuant to such Participant’s exercise of an option,

9

 

and such disposition occurs within the two-year period commencing on the day after the
Offering Date or within the one-year period commencing on the day after the Exercise Date, such
Participant shall, within ten (10) days of such disposition, notify the Company thereof and
thereafter immediately deliver to the Company any amount of Federal, state or local income taxes
and other amounts which the Company informs the Participant the Company is required to withhold.

     21. Effective Date. The Plan was adopted by the Board as of
November 17, 2006,
subject to the approval of the Company’s stockholders, which must be obtained within 12 months
prior to or following such date in order for the Plan to become effective. No options may be
granted under the Plan prior to the later to occur of the date of the Plan’s adoption or the date
on which such stockholder approval is obtained. The Plan shall be in effect until November 17,
2016, unless sooner terminated in accordance with Section 17 hereof. No option may be
granted during any period of suspension of the Plan or after termination of the Plan.

10exv4w3

 

Exhibit 4.3

AGENT’S WARRANT AGREEMENT

          WARRANT AGREEMENT dated as of                      between Uroplasty, Inc., a Minnesota corporation
(“Company”), and Craig-Hallum Capital Group LLC (“Agent”).

Recitals:

          The Company proposes to issue to the Agent warrants (the “Warrants”) to purchase up to
an aggregate of                      [five percent of the shares sold in the offering] (as such number may be
adjusted from time to time pursuant to Article 7 of this Warrant Agreement) shares (the
“Shares”) of common stock, $0.01 par value per share (the “Common Stock”), of the
Company; and

          The Agent has agreed, pursuant to the Agency Agreement (the “Agency Agreement”) dated
                                         between the Agent and the Company, to act as agent in connection with the
Company’s proposed public offering (the “Public Offering”) of                                         shares of
Common Stock (the “Public Shares”) at an public offering price of $                    per Public Share
(“Share Price”); and

          The Warrants issued pursuant to this Agreement are being issued by the Company to the Agent or
to its designees who are officers or partners of Agent (collectively, the “Designees”), in
consideration for, and as part of Agent’s compensation in services performed pursuant to the Agency
Agreement;

NOW, THEREFORE, in consideration of the premises, the payment by the Agent to the Company of the
aggregate amount of $50.00, the agreements herein set forth and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

          1. Grant. The Agent or the Designees are hereby granted the right to purchase up to
an aggregate of                      fully-paid and non-assessable Shares at an initial exercise price (subject
to adjustment as provided in Article 6 hereof) of $                     [120 percent of Share Price] at any
time from [one year after closing] until 5:00 P.M., Minneapolis, Minnesota time, [five years after
closing] (the “Agent’s Underlying Share Warrant Term”). The Shares are in all respects
identical to the Public Shares being sold to the public pursuant to the terms of the Agency
Agreement.

          2. Exercise of Warrant.

               2.1 Cash Exercise. The Warrants initially are exercisable at a price of $                    per
Share, payable in cash or by check to the order of the Company, or any combination thereof, subject
to adjustment as provided in Article 7 hereof.

               2.2 Cashless Exercise. If an Exercise Notice is delivered at a time when a
registration statement permitting the Holder to resell the Shares is not then effective or the
prospectus forming a part thereof is not then available to the Holder for the resale of the Shares,
then the Holder may notify the Company in an Exercise Notice of its election to use cashless
exercise, in which event the Company must issue to the Holder the number of Shares determined as
follows:

     X = Y [(A-B)/A]

     where:

     X = the number of Shares to be issued to the Holder.

     Y = the number of Shares with respect to which this Warrant is being exercised.

     A = the average of the closing prices for the five Trading Days immediately prior to
(but not including) the Exercise Date.

     B = the Exercise Price.

 

 

For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and
acknowledged that the Shares issued in a cashless exercise transaction will be deemed to have been
acquired by the Holder, and the holding period for the Shares will be deemed to have commenced, on
the date this Warrant was originally issued.

               2.3 Issuance of Shares. Upon surrender of the Warrant Certificate(s) with the annexed
Form of Election to Purchase duly executed, together with payment of the Exercise Price (as
hereinafter defined) for the Shares, at the Company’s principal office (located at 5420 Feltl Road,
Minnetonka, Minnesota 55343), the registered holder of a Warrant Certificate (“Holder” or
“Holders”) will be entitled to receive a certificate or certificates for the Shares so
purchased. The purchase rights represented by the Warrant Certificate are exercisable at the
option of the Holder hereof, in whole or in part. In the case of the purchase of less than all of
the Shares purchasable under any Warrant Certificate, the Company will cancel the Warrant
Certificate upon surrender and execute and deliver a new Warrant Certificate of like tenor for the
balance of the Shares.

               2.4 Call of Warrant. If at any time following the one-year anniversary of the date of
issaunce,

                    (a) The
average of the closing prices of the Common Stock for each of the 20 consecutive
Trading Days immediately prior to delivery of a Call Notice (the
“Call Condition Period”) is greater than $___[150 % of the
Exercise Price](subject to equitable adjustment as a result of the events set forth in Section 9),
and

                    (b) the Warrant Shares are either

                         (A) registered for resale pursuant to an effective registration statement naming the Holder as
a selling shareholder thereunder (and the prospectus thereunder is available for use by the Holder
as to all Warrant Shares) or

                         (B) freely transferable without volume restrictions pursuant to Rule 144(k) under the
Securities Act, as a result of cashless exercise or otherwise as determined by counsel to the
Company pursuant to a written opinion letter addressed and in form and substance reasonably
acceptable to the Holder and the transfer agent for the Common Stock, and

                    (c) the Common Stock is listed or quoted on the American Stock Exchange during the entire Call
Condition Period,

then the Company may in its sole discretion, elect to require the exercise of all (but not less
than all) of the then unexercised portion of this Warrant at the Exercise Price, on the date that
is the 10th day after written notice thereof (a “Call Notice”) is received by the Holder (the “Call
Date”) at the address last shown on the records of the Company for the Holder or given by the
Holder to the Company for the purpose of notice; provided, that the conditions to giving such
notice must be in effect at all times during the Call Condition Period or any Call Notice will be
null and void.

                    2.5 Automatic Exercise of Warrant on Expiration Date

     If the price of the Common Stock on the Expiration Date is equal to or greater than the
Exercise Price, then, without any action on the part of the Holder, the Warrant will automatically
be exercised using the cashless exercise provisions of Section 2.2.

          3. Issuance of Certificates.

          Upon the exercise of the Warrants, the issuance of certificates for the Shares purchased will
be made no later than three business days thereafter without charge to the Holder thereof
including, without limitation, any tax that may be payable in respect of the issuance thereof, and
the certificates will (subject to the provisions of Article 4 hereof) be issued in the name of, or
in such names as may be directed by, the Holder thereof;

          The certificates representing the Shares will be executed on behalf of the Company by the
manual or facsimile signature of the present or any future Chief Executive Officer or President of
the Company under its corporate seal (if any) reproduced thereon, attested to by the manual or
facsimile signature of the present or any future Secretary or Assistant Secretary of the Company.
Warrant Certificates will be dated the date of execution by the Company upon initial issuance,
division, exchange, substitution or transfer.

-2-

 

          Upon exercise, in part or in whole, of the Warrants, certificates representing the Shares
purchased (the “Warrant Securities”), will bear a legend substantially similar to the
following:

“The securities represented by this certificate and the other securities
issuable upon exercise thereof have not been registered for purposes of public
distribution under the Securities Act of 1933, as amended (the “Act”),
and may not be offered or sold except (i) pursuant to an effective registration
statement under the Act or (ii) upon the delivery by the holder to the Company
of an opinion of counsel, reasonably satisfactory to counsel to the Company,
stating that an exemption from registration under such Act is available.”

          4. Restriction on Transfer of Warrants. The Holder of a Warrant Certificate, by the Holder’s
acceptance thereof, covenants and agrees that the Warrants may not be sold during the Public
Offering, or sold, transferred, assigned, pledged or hypothecated, or be the subject of any
hedging, short sale, derivative, put or call transaction that would result in the effective
economic disposition of the Warrants for a period of one year from
December ___, 2006, except to the
Agent or the Designees, and that any portion of the Warrant so transferred will remain subject to
the above restriction for the remainder of the restriction period.

          5. Price.

               5.1 Initial and Adjusted Exercise Price. The initial exercise price of each Warrant
will be $  per Share. The adjusted Exercise Price per Share will be the prices that will
result from time to time from any and all adjustments of the initial Exercise Price per Share in
accordance with the provisions of Article 7 hereof.

               5.2 Exercise Price. The term “Exercise Price” herein will mean the initial
exercise price or the adjusted exercise price, depending upon the context.

          6. Registration Rights.

               6.1 Registrable Securities. As used herein, the term “Registrable Security”
means each of the Warrants, the Shares, and any shares of Common Stock issued upon any stock split
or stock dividend in respect of such Shares. Any particular Registrable Security, will cease to be
a Registrable Security when, as of the date of determination:

                    (a) it has been effectively registered under the Act and disposed of pursuant thereto,

                    (b) registration under the Act is no longer required for the Holder for subsequent public
distribution of such security under Rule 144(k) promulgated under the Act or otherwise, or

                    (c) it has ceased to be outstanding.

The term “Registrable Securities” means any or all of the securities falling within the
foregoing definition of a “Registrable Security.” In the event of any merger,
reorganization, consolidation, recapitalization or other change in corporate structure affecting
the Common Stock, such adjustment will be made in the definition of “Registrable Security”
as is appropriate in order to prevent any dilution or enlargement of the rights granted pursuant to
this Article 6.

               6.2 Piggyback Registration. If, within seven years following the effective date of
the Public Offering, the Company proposes to prepare and file one or more post-effective amendments
to the registration statement filed in connection with the Public Offering or any new registration
statement or post-effective amendments thereto covering equity or debt securities of the Company,
or any such securities of the Company held by its shareholders (in any such case, other than in
connection with a merger, acquisition or pursuant to Form S-8 or successor form)(for purposes of
this Article 6, collectively, the “Registration Statement”), it will give written notice of
its intention to do so by certified mail, return receipt requested (“Notice”), at least
thirty days prior to the filing of each such Registration Statement, to all Holders of the
Registrable Securities. Upon the written request of such a Holder (a “Requesting Holder”),
made within twenty days after receipt by the Holder of the Notice, that the Company include any of
the Requesting Holder’s Registrable Securities in the proposed Registration Statement, the Company
will, as to each such Requesting Holder, use its best efforts to effect the registration under the
Act of the

-3-

 

Registrable Securities that it has been so requested to register (“Piggyback
Registration”), at the Company’s sole cost and expense and at no cost or expense to the
Requesting Holders (except as provided in Section 6.5(b) hereof).

               Notwithstanding the provisions of this Section 6.2, the Company will have the right at any
time after it will have given written notice pursuant to this Section 6.2 (irrespective of whether
any written request for inclusion of Registrable Securities will have already been made) to elect
not to file any such proposed Registration Statement, or to withdraw the same after the filing but
prior to the effective date thereof, without incurring any liability to any holder of Registrable
Securities.

               6.3 Demand Registration.

                    (a) At any time within five years following the effective date of the Public Offering, any
“Majority Holder” (as such term is defined in Section 6.3(c) below) of the Registrable
Securities will have the right (which right is in addition to the piggyback registration rights
provided for under Section 6.2 hereof), exercisable by written notice to the Company (the
“Demand Registration Request”), to have the Company prepare and file with the Securities
and Exchange Commission (the “Commission”) on one occasion, at the sole expense of the
Company, a Registration Statement and such other documents, including a prospectus, as may be
necessary (in the opinion of both counsel for the Company and counsel for such Majority Holder) in
order to comply with the provisions of the Act, so as to permit a public offering and sale of the
Registrable Securities by the Holders thereof. The Company will use its best efforts to cause the
Registration Statement to become effective under the Act so as to permit a public offering and sale
of the Registrable Securities by the Holders thereof. Once effective, the Company will use its
best efforts to maintain the effectiveness of the Registration Statement until the earlier of (i)
the date that all of the Registrable Securities have been sold or (ii) the date the Holders thereof
receive an opinion of counsel to the Company that all of the Registrable Securities may be freely
traded without registration under the Act under Rule 144(k) promulgated under the Act or otherwise.

                    (b) The Company covenants and agrees to give written notice of any Demand Registration Request
to all Holders of the Registrable Securities within 10 business days from the date of the Company’s
receipt of any such Demand Registration Request. After receiving notice from the Company as
provided in this Section 6.3(b), holders of Registrable Securities may request the Company to
include their Registrable Securities in the Registration Statement to be filed pursuant to Section
6.3(a) hereof by notifying the Company of their decision to have such securities included within 15
business days of their receipt of the Company’s notice.

                    (c) The term “Majority Holder” as used in Section 6.3 hereof will mean any Holder or
any combination of Holders of Registrable Securities, if included in such Holders’ Registrable
Securities, that hold an aggregate number of shares of Common Stock (including Shares already
issued, Shares issuable pursuant to the exercise of outstanding Warrants) as would constitute a
majority of the aggregate number of shares of Common Stock outstanding (including Shares already
issued and Shares issuable pursuant to the exercise of outstanding Warrants) that are Registrable
Securities.

               6.4 Covenants of the Company With Respect to Registration. The Company covenants and
agrees as follows:

                    (a) In connection with any registration under Section 6.3 hereof, the Company will file the
Registration Statement as expeditiously as possible, but in any event no later than 30 days
following receipt of any demand therefor, will use its best efforts to have any such Registration
Statement declared effective at the earliest possible time, and will furnish each Holder of
Registrable Securities such number of prospectuses as will reasonably be requested.

                    (b) The Company will pay all costs, fees and expenses (other than underwriting fees, discounts
and nonaccountable expense allowance applicable to the Registrable Securities and fees and expenses
of counsel retained by the Holders of Registrable Securities) in connection with all Registration
Statements filed pursuant to Sections 6.2 and 6.3 hereof including, without limitation, the
Company’s legal and accounting fees, printing expenses, and blue sky fees and expenses and any fees
due to the National Association of Securities Dealers, Inc (“NASD”) related to such registration or
sale of any of the Registrable Securities.

-4-

 

                    (c) The Company will take all necessary action that may be required in qualifying or
registering the Registrable Securities included in the Registration Statement for offering and sale
under the securities or blue sky laws of such states as are requested by the Holders of such
securities and for obtaining the clearance of NASD member firms to participate in the distribution
of such Registrable Securities.

                    (d) The Company will indemnify any Holder of the Registrable Securities to be sold pursuant to
any Registration Statement and any Agent or person deemed to be an underwriter under the Act and
each person, if any, who controls such Holder or underwriter or person deemed to be an underwriter
within the meaning of Section 15 of the Act or Section 20(a) of the Securities Exchange Act of
1934, as amended (“Exchange Act”), against all loss, claim, damage, expense or liability
(including all expenses reasonably incurred in investigating, preparing or defending against any
claim whatsoever) to which any of them may become subject under the Act, the Exchange Act or
otherwise, arising from such registration statement to the same extent and with the same effect as
the provisions pursuant to which the Company has agreed to indemnify the Underwriter as set forth
in Section 8 of the Underwriting Agreement and to provide for just and equitable contribution as
set forth in Section 9 of the Underwriting Agreement.

                    (e) Any Holder of Registrable Securities to be sold pursuant to a registration statement, and
such Holder’s successors and assigns, will severally, and not jointly, indemnify the Company, its
officers and directors and each person, if any, who controls the Company within the meaning of
Section 15 of the Act or Section 20(a) of the Exchange Act, against all loss, claim, damage,
expense or liability (including all expenses reasonably incurred in investigating, preparing or
defending against any claim whatsoever) to which any of them may become subject under the Act, the
Exchange Act or otherwise, arising from information furnished by or on behalf of such Holder, or
such Holder’s successors or assigns, for specific inclusion in such Registration Statement to the
same extent and with the same effect as the provisions pursuant to which the Underwriters have
agreed to indemnify the Company as set forth in the Agency Agreement and to provide for just and
equitable contribution as set forth in the Agency Agreement.

                    (f) Nothing contained in this Agreement may be construed as requiring any Holder to exercise
the Warrants held by the Holder prior to the initial filing of any registration statement or the
effectiveness thereof.

                    (g) If the Company fails to comply with the provisions of this Article 6, the Company will, in
addition to any other equitable or other relief available to the Holders of Registrable Securities,
be liable for any or all incidental, special and consequential damages sustained by the Holders of
Registrable Securities requesting registration of their Registrable Securities.

                    (h) The Company will not permit the inclusion of any securities other than the Registrable
Securities to be included in any Registration Statement filed pursuant to Section 6.3 hereof,
without the prior written consent of the Majority Holders, which consent may not be unreasonably
withheld.

-5-

 

                    (i) The Company will promptly deliver copies of all correspondence between the Commission and
the Company, its counsel or its auditors with respect to the Registration Statement to each Holder
of Registrable Securities included for registration in such Registration Statement pursuant to
Section 6.2 hereof or Section 6.3 hereof requesting such correspondence and to the managing
underwriter, if any, of the offering in connection with which such Holder’s Registrable Securities
are being registered and will permit each Holder of Registrable Securities and such underwriter to
do such reasonable investigation, upon reasonable advance notice, with respect to information
contained in or omitted from the Registration Statement as it deems reasonably necessary to comply
with applicable securities laws or rules of the NASD. This investigation will include access to
books, records and properties and opportunities necessary or helpful to discuss the business of the
Company with its officers and independent auditors, all to such reasonable extent and at such
reasonable times and as often as any such Holder of Registrable Securities or underwriter may
reasonably request. The Company may require each Holder or underwriter to enter into reasonable
confidentiality and non-disclosure agreements with respect to the information contained in or
derived from the investigations.

          6.5
Termination of Registration Rights. All registration rights
under this warrant terminate if in the reasoned opinion of counsel to
the Company, Agent and all other Holders have the ability to sell all
shares issuable under the warrant under Rule 144(k), through
cashless exercise or otherwise.

          7. Adjustments of Exercise Price and Number of Securities. The following adjustments
apply to the Exercise Price of the Warrants with respect to the Shares and the number of Shares
purchasable upon exercise of the Warrants.

               7.1 Computation of Adjusted Price. In case the Company at any time after the date
hereof pays a dividend in shares of Common Stock or makes a distribution in shares of Common Stock,
then upon such dividend or distribution, the Exercise Price in effect immediately prior to such
dividend or distribution will forthwith be reduced to a price determined by dividing:

                    (a) an amount equal to the total number of shares of Common Stock outstanding immediately
prior to such dividend or distribution multiplied by the Exercise Price in effect immediately prior
to such dividend or distribution, by

                    (b) the total number of shares of Common Stock outstanding immediately after such issuance or
sale.

                    For the purposes of any computation to be made in accordance with the provisions of this
Section 8.1, the Common Stock issuable by way of dividend or other distribution on any stock of the
Company will be deemed to have been issued immediately after the opening of business on the date
following the date fixed for the determination of shareholders entitled to receive the dividend or
other distribution.

               7.2 Subdivision and Combination. In case the Company at any time subdivides or
combines the outstanding shares of Common Stock, the Exercise Price will forthwith be
proportionately decreased in the case of subdivision or proportionately increased in the case of
combination.

               7.3 Adjustment in Number of Securities. Upon each adjustment of the Exercise Price
pursuant to the provisions of this Article 7, the number of Shares issuable upon the exercise of
each Warrant will be adjusted to the nearest full number by multiplying a number equal to the
Exercise Price in effect immediately prior to such adjustment by the number of Shares issuable upon
exercise of the Warrants immediately prior to such adjustment and dividing the product so obtained
by the adjusted Exercise Price.

               7.4 Reclassification, Consolidation, Merger. In case of any reclassification or
change of the outstanding shares of Common Stock (other than a change in par value to no par value,
or from no par value to par value, or as a result of a subdivision or combination), or in the case
of any consolidation of the Company with, or merger of the Company into, another corporation (other
than a consolidation or merger in which the Company is the surviving corporation and that does not
result in any reclassification or change of the outstanding shares of Common Stock, except a change
as a result of a subdivision or combination of such shares or a change in par value, as aforesaid),
or in the case of a sale or conveyance to another corporation of all or substantially all of the
assets of the Company, the Holders will thereafter have the right to purchase the kind and number
of shares of stock and other securities and property receivable upon such reclassification, change,
consolidation, merger, sale or conveyance as if the Holders were the owners of the Shares
immediately prior to any such events, at a price equal to the product of (x) the number of shares
of Common Stock issuable upon exercise of the Holders’ Warrants and (y) the exercise prices for the
Warrants in effect immediately prior to the record date for such reclassification, change,
consolidation,

-6-

 

merger, sale or conveyance as if such Holders had exercised the Warrants.

               7.5 Determination of Outstanding Common Shares. The number of Common Shares at any
one time outstanding shall include the aggregate number of shares issued and the aggregate number
of shares issuable upon the exercise of options, rights, warrants and upon the conversion or
exchange of convertible or exchangeable securities.

               7.6
[Intentionally Omitted]

               7.7 Subscription Rights for Shares of Common Stock or Other Securities. In the case
that the Company or an affiliate of the Company at any time after the date hereof and prior to the
exercise of all the Warrants issue any rights, warrants or options to subscribe for shares of
Common Stock or any other securities of the Company or of such affiliate to all the shareholders of
the Company, the Holders of unexercised Warrants on the record date set by the Company or affiliate
in connection with such issuance of rights, warrants or options will be entitled, in addition to
the shares of Common Stock or other securities receivable upon the exercise of the Warrants, to
receive such rights, warrants or options that such Holders would have been entitled to receive had
they been, on such record date, the holders of record of the number of whole shares of Common Stock
then issuable upon exercise of their outstanding Warrants (assuming for purposes of this Section
7.7, that the exercise of the Warrants is permissible immediately upon issuance).

          8. Exchange and Replacement of Warrant Certificates.

     Each Warrant Certificate is exchangeable without expense, upon the surrender thereof by the
registered Holder at the principal executive office of the Company, for a new Warrant Certificate
of like tenor and date representing in the aggregate the right to purchase the same number of
securities in such denominations as may be designated by the Holder thereof at the time of such
surrender.

          Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of any Warrant Certificate and, in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to it, and reimbursement to the Company of all
reasonable expenses incidental thereto, and upon surrender and cancellation of the Warrant
Certificate, if mutilated, the Company will make and deliver a new Warrant Certificate of like
tenor in lieu thereof.

          9. Elimination of Fractional Interests.

          The Company will not be required to issue certificates representing fractions of Shares upon
the exercise of the Warrants, nor will it be required to issue scrip or pay cash in lieu of
fractional interests, it being the intent of the parties that all fractional interests shall be
eliminated by rounding any fraction up to the nearest whole number of Shares.

          10. Reservation and Listing of Securities.

          The Company will at all times reserve and keep available out of its authorized shares of
Common Stock, solely for the purpose of issuance upon the exercise of the Warrants, that number of
shares of Common Stock as are issuable upon the exercise thereof. The Company covenants and agrees
that, upon exercise of the Warrants and payment of the Exercise Price therefor, all Shares issuable
upon such exercise will be duly and validly issued, fully paid, non-assessable and not subject to
the preemptive rights of any shareholder. As long as the Warrants are

-7-

 

outstanding, the Company will use its best efforts to cause all shares of Common Stock
issuable upon the exercise of the Warrants to be listed on the American Stock Exchange, or any
successor trading market on which the Common Stock may be listed.

          11. Notices to Warrant Holders.

          Nothing contained in this Agreement may be construed as conferring upon the Holder or Holders
the right to vote or to consent or to receive notice as a shareholder in respect of any meetings of
shareholders for the election of directors or any other matter, or as having any rights whatsoever
as a shareholder of the Company. If, however, at any time prior to the expiration of the Warrants
and their exercise, any of the following events occur:

                    (a) the Company takes a record of the holders of its shares of Common Stock for the purpose of
entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash
dividend or distribution payable otherwise than out of current or retained earnings, as indicated
by the accounting treatment of such dividend or distribution on the books of the Company; or

                    (b) the Company offers to all the holders of its Common Stock any additional shares of capital
stock of the Company or securities convertible into or exchangeable for shares of capital stock of
the Company, or any option, right or warrant to subscribe therefor; or

                    (c) a dissolution, liquidation or winding up of the Company (other than in connection with a
consolidation or merger) or a sale of all or substantially all of its property, assets and business
as an entirety is proposed; or

                    (d) reclassification or change of the outstanding shares of Common Stock (other than a change
in par value to no par value, or from no par value to par value, or as a result of a subdivision or
combination), consolidation of the Company with, or merger of the Company into, another corporation
(other than a consolidation or merger in which the Company is the surviving corporation and which
does not result in any reclassification or change of the outstanding shares of Common Stock, except
a change as a result of a subdivision or combination of such shares or a change in par value, as
aforesaid), or a sale or conveyance to another corporation of the property of the Company as an
entirety is proposed; or

                    (e) The Company or an affiliate of the Company proposes to issue any rights to subscribe for
shares of Common Stock or any other securities of the Company or of such affiliate to all the
shareholders of the Company;

               then, in any one or more of said events, the Company must give written notice to the Holder or
Holders of such event at least 15 business days prior to the date fixed as a record date or the
date of closing the transfer books for the determination of the shareholders entitled to such
dividend, distribution, convertible or exchangeable securities or subscription rights, options or
warrants, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. The
notice must specify the record date or the date of closing the transfer books, as the case may be.
Failure to give such notice or any defect therein will not affect the validity of any action taken
in connection with the declaration or payment of any dividend or distribution, or the issuance of
any convertible or exchangeable securities or subscription rights, options or warrants, or any
proposed dissolution, liquidation, winding up or sale.

          12. Notices.

          All notices, requests, consents and other communications hereunder must be in writing and will
be deemed to have been duly made when delivered, or mailed by registered or certified mail, return
receipt requested:

                    (a) If to a registered Holder of the Warrants, to the address of such Holder as shown on the
books of the Company; or

                    (b) If to the Company, to the address set forth in Section 3 of this Agreement or to such
other address as the Company may designate by notice to the Holders given pursuant to this section.

-8-

 

          13. Supplements and Amendments.

          The Company and the Agent may from time to time supplement or amend this Agreement without the
approval of any Holders of the Warrants or Warrant Securities in order to cure any ambiguity, to
correct or supplement any provision contained herein that may be defective or inconsistent with any
other provisions herein, or to make any other provisions in regard to matters or questions arising
hereunder which the Company and the Agent may deem mutually necessary or desirable and which the
Company and the Agent mutually deem not to adversely affect the interests of the Holders of Warrant
Certificates.

          14. Successors.

          All the covenants and provisions of this Agreement by or for the benefit of the Company and
the Holders inure to the benefit of their respective successors and assigns hereunder.

          15. Governing Law.

          This Agreement and each Warrant Certificate issued hereunder will be deemed to be a contract
made under the laws of the State of Minnesota and for all purposes shall be construed in accordance
with the laws of said State, other than its conflicts of laws provisions.

          16. Benefits of this Agreement.

          Nothing in this Agreement may be construed to give to any person or corporation other than the
Company and the Agent and any other registered Holder or Holders of the Warrant Certificates or
Warrant Securities any legal or equitable right, remedy or claim under this Agreement. This
Agreement is for the sole and exclusive benefit of the Company and the Agent and any other Holder
or Holders of the Warrant Certificates or Warrant Securities.

          17. Counterparts.

          This Agreement may be executed in any number of counterparts, and each of such counterparts
will for all purposes be deemed to be an original, and such counterparts will together constitute
but one and the same instrument.

-9-

 

               IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the day and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	UROPLASTY, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Its:	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	CRAIG-HALLUM CAPITAL GROUP LLC
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Director of Capital Markets
	 	 

-10-

 

EXHIBIT A

THE TRANSFER OR EXCHANGE OF THE WARRANTS REPRESENTED BY THIS CERTIFICATE IS RESTRICTED IN
ACCORDANCE WITH THE WARRANT AGREEMENT REFERRED TO HEREIN.

EXERCISABLE ON OR BEFORE

5:00 P.M., MINNEAPOLIS TIME,                     

	 	 	 	 	 	 	 	 	 
	 

	 	No. W-1
	 	 	 	                     Warrants
	 	 

A-1

 

WARRANT CERTIFICATE

          This Warrant Certificate certifies that Craig-Hallum Capital Group LLP or his, her or its
registered assigns, is the registered holder of                      Warrants to purchase, at any time from
                     until 5:00 P.M. Minneapolis, Minnesota time on                      (“Expiration Date”), up to
                     fully-paid and non-assessable shares (the “Shares”) of the common stock, $.01 par value
per share (the “Common Stock”), of Uroplasty, Inc., a Minnesota corporation (the
“Company”), at an initial exercise price, subject to adjustment in certain events (the
“Exercise Price”), of $                      per Share, upon surrender of this Warrant Certificate and
payment of the Exercise Price at an office or agency of the Company, but subject to the conditions
set forth herein and in the Agent’s Warrant Agreement dated as of                      between the Company
and Craig-Hallum Capital Group LLP (the “Warrant Agreement”). Payment of the Exercise
Price may be made in cash or by check payable to the order of the Company, or any combination
thereof.

          No Warrant may be exercised after 5:00 P.M., Minneapolis, Minnesota time, on the Expiration
Date, at which time all Warrants evidenced hereby, unless exercised prior thereto, will thereafter
be void.

          The Warrants evidenced by this Warrant Certificate are part of a duly authorized issue of
Warrants issued pursuant to the Warrant Agreement, which is hereby incorporated by reference in and
made a part of this instrument and is hereby referred to for a description of the rights,
limitation of rights, obligations, duties and immunities thereunder of the Company and the holders
(the words “holders” or “holder” means the registered holders or registered holder)
of the Warrants.

          The Warrant Agreement provides that upon the occurrence of certain events, the Exercise Price
and the type and number of the Company’s securities issuable thereupon may, subject to certain
conditions, be adjusted. In such event, the Company will, at the request of the holder, issue a
new Warrant Certificate evidencing the adjustment in the Exercise Price and the number and type of
securities issuable upon the exercise of the Warrants. The failure of the Company to issue such
new Warrant Certificates will not, however, in any way change, alter, or otherwise impair the
rights of the holder as set forth in the Warrant Agreement.

          Upon due presentment for registration of transfer of this Warrant Certificate at an office or
agency of the Company, a new Warrant Certificate or Warrant Certificates of like tenor and
evidencing in the aggregate a like number of Warrants must be issued to the transferee(s) in
exchange for this Warrant Certificate, subject to the limitations provided herein and in the
Warrant Agreement, without any charge except for any tax or other governmental charge imposed in
connection therewith.

          Upon the exercise of less than all of the Warrants evidenced by this Certificate, the Company
will forthwith issue to the holder hereof a new Warrant Certificate representing such number of
unexercised Warrants.

          The Company may deem and treat the registered holder(s) hereof as the absolute owner(s) of
this Warrant Certificate (notwithstanding any notation of ownership or other writing hereon made by
anyone), for the purpose of any exercise hereof, and of any distribution to the holder(s) hereof,
and for all other purposes, and the Company will not be affected by any notice to the contrary.

          All terms used in this Warrant Certificate which are defined in the Warrant Agreement have the
meanings assigned to them in the Warrant Agreement.

          IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly executed.

	 	 	 	 	 	 	 	 	 
	Dated:                     	 	UROPLASTY, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

A-2

 

[FORM OF ELECTION TO PURCHASE]

     The undersigned hereby irrevocably elects to exercise the right, represented by this Warrant
Certificate, to purchase                      Shares of Common Stock and herewith tenders in payment for such
securities, cash or check payable to the order of Uroplasty, Inc. in the amount of $                    , all
in accordance with the terms hereof. The undersigned requests that a certificate for such
securities be registered in the name of                                                             , whose address is
                                        , and that such Certificate be delivered to
                                                            ,
 whose address is                                                                                 .

	 	 	 	 	 
	Dated:                                                            

	 	 	 	Signature:                                                             
	 

	 	 	 	(Signature must conform in all respects
to the name of holder as specified on the
face of the Warrant Certificate or with
the name of the assignee appearing in the
assignment form, if any.)
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	(Insert Social Security or Tax
Identification Number of Holder)

 

 

[FORM OF ASSIGNMENT]

(To be executed by the registered holder if such holder

desires to transfer the Warrant Certificate.)

                    FOR VALUE RECEIVED,                                             
               
               
               
           hereby sells, assigns and transfers unto                                                             
                                                                                   
                                                                                                                                                                                                                                                                                    

(Please print name, address and social security or tax identification number of assignee)

this Warrant Certificate, together with all right, title and interest therein, and does hereby
irrevocably constitute and appoint                     , Attorney, to transfer the within Warrant
Certificate on the books of the within-named Company, with full power of substitution.

	 	 	 	 	 
	 

	 	 	 	Signature:                                                             
	Dated:                                        

	 	 	 	(Signature must conform in all respects to the name of holder as
specified on the face of the Warrant Certificate or with the name
of the assignee appearing in the assignment form, if any.)
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	(Insert Social Security or Tax Identification Number of Holder)

 

 

[CASHLESS EXERCISE FORM]

(To be executed upon exercise of Warrant
pursuant to Section 2.2 )

To:      UROPLASTY, INC.

     The undersigned hereby irrevocably elects a cashless exercise of the right to purchase
represented by the attached Warrant Certificate for, and to purchase thereunder,                     
Shares, as provided for in Section 2.2 therein.

     Please issue a certificate or certificates for such Shares in the names of:

	 	 	 	 	 	 	 	 	 
	Name

	 	 	 	 	 	Address	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	(Please print name)	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

     and deliver such certificate or certificates to (if different from above):

	 	 	 	 	 	 	 	 	 
	Name

	 	 	 	 	 	Address	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	(Please print name)	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	Signature	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Insert Social Security or Tax Identification Number
of Holder)

NOTE: The above signature should correspond exactly with the name on the first page of this Warrant
Certificate or with the name of the assignee appearing in the assignment form, if any.

     And if said number of shares shall not be all the shares purchasable under the attached
Warrant Certificate, a new Warrant Certificate is to be issued in the name of the undersigned for
the remaining balance of the shares purchasable thereunder.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]