Document:

Exhibit 10.14

 

MedicalCV, INC.

1997 STOCK OPTION PLAN

(As Approved by Shareholders December 13,
1997)

 

NON-QUALIFIED STOCK OPTION AGREEMENT

 

	
  Option No: N

  	
   

  	
  Date of Grant: D

  

 

THIS
AGREEMENT, entered into as of D (the “Grant Date”), is
by and between X (the “Optionee”) and MedicalCV, Inc. (the “Company”).

 

WHEREAS, the
Company has established and maintains the MedicalCV, Inc.  1997 Stock Option Plan (the “Plan”), which is
incorporated into and forms a part of this Agreement.

 

WHEREAS, the
Company has determined that the Optionee is an Eligible Individual and wishes
to grant the Optionee n Award pursuant to the terms of the Plan.

 

NOW,
THEREFORE, IT IS AGREED, by and between the Company and the
Optionee, as follows:

 

1.                                       Award
of Stock Option.  The Company hereby
grants to the Optionee a non-qualified stock option (the “Option”) to purchase Y
shares of Common Stock of the Company (the “Covered Shares”) at an exercise
price of $P per share (the “Exercise Price”).

 

2.                                       Non-Qualified
Option.  The Option granted hereunder
is a Non-Qualified Option.  It is not
intended to be an “incentive stock option” as that term is described in Section 422(b) of
the Internal Revenue Code.

 

3.                                       Vesting.  The Option shall be 100% vested and fully
exercisable in accordance with the terms of this Agreement and the Plan from
the Grant Date through the Expiration Date.

 

4.                                       Expiration.  Subject to earlier termination as hereinafter
provided, and the provisions of Section 11 of the Plan, this option shall
expire on E.

 

5.                                       Termination.  This Option shall terminate:

 

(a)                                  upon
termination of Optionee’s employment for cause, as determined by the Board of
directors of the Company;

 

(b)                                 three
(3) months following the termination of Optionee’s employment with the
Company; provided, however, that if Optionee shall die within three (3) months
after such termination, this Option may be exercised by the person who is
legally entitled to exercise this Option for a period of nine (9) months
following the earlier of the date of death or the expiration date of the
Option;

 

1

 

(c)                                  the
earlier of the one (1) year following the date of Optionee’s death or the
expiration date of this Option in accordance with the terms of Section 11.2.2
of the Plan; or

 

(d)                                 the
earlier of one (1) year following Optionee’s disability or the expiration
date of the Option, in accordance with the terms of Section 11.2.1 of the
Plan.

 

For all events, Optionee
may only exercise this Option to the extent it was exercisable on the date of termination,
disability or death.

 

6.                                       Exercising
the Option.

 

(a)                                  Notice.
Subject to the terms of this Agreement and the Plan, the Option may be
exercised in while or in part by filing written notice with the Secretary of
the Company at its corporate headquarters prior to the Expiration Date.  Such notice shall specify the number of
Covered Shares which the Optionee elects to purchase, and shall be accompanied
by payment in full of the Exercise Price for such Covered Shares, together with
payment of or provision for any withholding requirements as specified in Section 7.

 

(b)                                 Payment
of Exercise Price.  Payment of the
Exercise Price shall be by cash or by cashier’s check payable to the
Company.  Except as otherwise provided by
the Committee before the Option is exercised: (i) all or a portion of the
Exercise Price may be paid by the Optionee by delivery of shares or by
attestation of Stock owned buy the Optionee and acceptable to the Committee
having an aggregated Fair Market Value (valued as of the date of exercise) that
is equal to the amount if cash that would otherwise be required, and (ii) the
Optionee may pay the Exercise Price by irrevocably authorizing a third party to
sell shares of Stock (or a sufficient portion of the shares) acquired upon
exercise of the Option and remit to the Company a sufficient portion of the
sale proceeds to pay the entire Exercise Price and any tax withholding
resulting from such exercise.

 

(c)                                  Notation
on Schedule I.  Notation of any
partial exercise shall be made by the Company on Schedule I attached
hereto.

 

(d)                                 Compliance
with Securities Laws.  The Option
shall not be exercisable if and to the extent the Company determines that such
exercise would violate applicable state or Federal securities laws or the rules and
regulations of any securities exchange on which the Stock is traded.  If the Company makes such a determination, it
shall use all reasonable efforts to Obtain compliance with such laws, rules or
regulations.  In making any determination
hereunder, the Company may rely on the opinion of counsel for the Company.

 

7.                                       Withholding.  All deliveries and distributions under this
Agreement are subject to withholding of all applicable taxes.  At the election of the Optionee, and subject
to such rules

 

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and limitations as may be
established by the Committee from time to time, such withholding obligations
may be satisfied through cash payment by the Optionee, through the surrender of
shares of Stock which the Optionee already owns, or through the surrender of
shares of Stock to which the Optionee is otherwise entitled pursuant to the
exercise of the Option.

 

8.                                       Transferability.  Except as otherwise provided in this Section 8,
the Option is not transferable other than as designated by the Optionee by will
or by the laws of descent and distribution, and during the Optionee’s life, may
be exercised only by the Optionee.

 

9.                                       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 the Company’s assets
and business.  If any rights exercisable
by the Optionee or benefits deliverable to the Optionee under this Agreement
have not been exercised or delivered, respectively, at the time of the Optionee’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 Optionee in a writing filed with the Committee in such form
and at such time as the Committee shall require.  If a deceased Optionee fails to designate a
beneficiary, or if the designated Beneficiary does not survive the Optionee,
any rights that would have been exercisable by the Optionee and any benefits
distributable to the Optionee shall be exercised by or distributed to the legal
representative of the estate of the Optionee. 
If a deceased Optionee designates a beneficiary but the Designated
Beneficiary 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.

 

10.                                 Administration.The
authority to manage and control the operation and administration of the
Agreement shall be vested in the Committee, and the Committee shall have all
powers with respect to this Agreement as it has with respect to the Plan.  Any interpretation of the Agreement by the
Committee and any decision made by it with respect to the Agreement is final
and binding on all persons.

 

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

 

12.                                 No
Right to Continued Employment. The Option will not confer on the Optionee
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

 

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otherwise have to
terminate or modify the terms of such Optionee’s employment or other service at
any time.

 

13.                                 Notices.  Any written notices provided for in this
Agreement or the Plan shall be in writing and shall be deemed sufficient if
delivered by hand, or sent by fax, overnight courier, or by postage paid first
class mail.  Notices sent by mail shall
be deemed received three business days after mailed but in no event later than
the date of actual receipt.  Notices
shall be directed, if to the Optionee, at the Optionee’s address indicated by
the Company’s records, or if to the Company, at the Company’s principal
executive office.

 

14.                                 Fractional
Shares.  In lieu of issuing a
fraction of a share upon any exercise of the Option, resulting from an adjustment
of the Option pursuant to Section 12.3 of the Plan or otherwise, the
Company will be entitled to pay to the Optionee an amount equal to the Fair
Market Value of such fractional share.

 

15.                                 No
Rights As Shareholder.  The Optionee
shall not have any rights of a shareholder with respect to the shares subject
to the Option, until a stock certificate has been duly issued following
exercise of the Option as provided herein. 
The Optionee shall have no voting rights and shall not receive any
dividends paid or any dividend equivalent payments before the stock certificate
is issued.

 

16.                                 Amendment.  This Agreement may be amended by written
agreement of the Optionee and the Company, without the consent of any other
person.

 

17.                                 Definitions  Defined terms not otherwise set forth and
defined herein shall have the meaning ascribed them in the Plan.

 

IN
WITNESS WHEREOF, the Optionee has executed this Agreement,
and the Company has caused these presents to be executed in its name and on its
behalf, all as of the Grant Date.

 

	
   

  	
  MedicalCV,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Optionee
  (signature)

  	
  President

  	
   

  
	
   

  	
   

  
	
  Name and address
  of Optionee

  	
   

  
					

 

4

 

SCHEDULE I - NOTATIONS AS TO PARTIAL EXERCISE

 

 

	
  Date of Exercise

  	
   

  	
  Number of

  Purchased

  Shares

  	
   

  	
  Balance of Shares

  on Option

  	
   

  	
  Authorized

  Signature

  	
   

  	
  Notation Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

5Exhibit 10.15

 

MEDICALCV, INC.

STOCK OPTION AGREEMENT

PURSUANT TO 1993 DIRECTOR STOCK OPTION PLAN

(As Adopted November 5, 1993, and as Amended December 1, 1997

and November 13, 1999)

 

Option No.: C-        

 

This
AGREEMENT is dated as of             ,
and is entered into by and between MedicalCV, Inc., a Minnesota
corporation (the “Company”) and             
(the “Optionee”).

 

W I T N E S S E T H :

 

1.                                       Grant
of Option.  Pursuant to the
provisions of the MedicalCV, Inc. 1993 Director Stock Option Plan (the “Plan”)
and subject to shareholder approval of the Plan in accordance with the
provisions of Rule 16b-3 under the Securities Exchange Act of 1934
and to the additional conditions set forth herein, the Optionee has been
automatically granted on the date hereof the right and option to purchase from
the Company all or a part of an aggregate of 7,000 shares of Common
Stock ($.01 par value) of the Company (the “Stock”) at the purchase price of             
(the “Option”).  The Option does not
constitute an incentive stock option within the meaning of Section 422 of
the Internal Revenue Code of 1986.

 

2.                                       Terms
and Conditions.  It is understood and
agreed that the option evidenced hereby is subject to the following terms and
conditions and to the terms and conditions of the Plan:

 

(a)                                  Expiration
Date.  Subject to the provisions of Section 5(c) of
the Plan, the option shall expire             .

 

(b)                                 Exercise
of Option.  The Option shall become
exercisable in full beginning on the later of (i) the first anniversary of
the grant of the Option or (ii) the date on which the Plan is first
approved by the shareholders of the Company in accordance with Rule 16b-3
under the Exchange Act provided that the Optionee shall have maintained
Continuous Service as an outside director throughout such 12-month
period.  The Option shall be exercisable
only while the Optionee serves as an outside director of the Company, and for a
period six (6) months after ceasing to be an outside director pursuant to Section 10
hereof.  “Continuous Service” shall mean
the absence of any interruption or termination of service as a director.  Continuous Service as a director shall not be
considered interrupted in the case of sick leave, military leave, or any other
leave approved by the Company’s Board of Directors.

 

Any
exercise shall be accompanied by a written notice to the Company specifying the
number of shares as to which the option is being exercised.  Notation of any partial exercise shall be
made by the Company on Schedule I hereto.

 

1

 

(c)                                  Payment
of Purchase Price Upon Exercise.  At
the time of any exercise, the purchase 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 9(b) of the Plan, the Board of
Directors shall permit payment of the purchase price in another manner.

 

(d)                                 Exercise
Upon Death or Termination of Status as a Director.

 

(i)                                     Termination
of Status as a Director.  If the
Optionee ceases to serve as a director, the Optionee may, but only within six (6) months
after the date the Optionee ceases to be an outside director of the Company,
exercise his or her Option to the extent the Optionee was entitled to exercise
it at the date of such termination.  To
the extent that the Optionee was not entitled to exercise an Option at the date
of such termination, or if the Optionee does not exercise such Option within
the time specified herein, the Option shall terminate.

 

(ii)                                  Death
of Optionee.  In the event of the
death of an Optionee occurring:

 

(A)                              during
the term of the Option, and provided that the Optionee was at the time of death
a Director of the Company and had been in Continuous Service as a Director
since the date of grant of the Option, the Option may be exercised, at any time
within six (6) months following the date of death, by the Optionee’s
estate or by a person who acquired the right to exercise the Option by bequest
or inheritance, but only to the extent of the right to exercise that would have
accrued had the Optionee continued living and remained in Continuous Service a
director for six (6) months after the date of death.

 

(B)                                within
thirty (30) days after the termination of Continuous Service as a director, the
Option may be exercised, at any time within six (6) months following the
date of death, by the Optionee’s estate or by a person who acquired the right
to exercise the Option by bequest or inheritance, but only to the extent of the
right to exercise that had accrued at the date of termination of Continuous
Service as a director.

 

(e)                                  Non-Transferability
of Options.  The Option may not be
sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of the Optionee, only by the Optionee.

 

(f)                                    Adjustments
Upon Changes in Capitalization or Merger. 
The number of shares of Common Stock covered by this Option and the
exercise price shall be proportionately adjusted for any increase or decrease
in the number of issued and outstanding shares of Common Stock resulting from a
stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the
number of issued shares of Common

 

2

 

Stock effected without
receipt of consideration by the Company; provided, however, that conversion of
any convertible securities of the Company shall not be deemed to have been “effected
without receipt of consideration.” Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and
conclusive.  Except as expressly provided
herein or in the Plan, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, or options
or rights to purchase shares of stock of any class shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to this Option.

 

In the
event of the proposed dissolution or liquidation of the Company, the Option
will terminate immediately prior to the consummation of such proposed action,
unless otherwise provided by the Board. 
The Board may, in the exercise of its sole discretion in such instances,
declare that the Option shall terminate as of a date fixed by the Board and
give the Optionee the right to exercise his or her Option as to all or any part
of the Stock.  If the Board makes an Option
fully exercisable in the event of a merger or sale of assets, the Board shall
notify the Optionee that the Option shall be fully exercisable for a period of
ten (10) days from the date of such notice, and the Option will terminate
upon the expiration of such period.

 

(g)                                 No
Rights as Shareholder.  The Optionee
shall have no rights as a shareholder with respect to any shares of Stock
subject to this Option prior to the date of issuance to him or her of a
certificate or certificates for such shares.

 

(h)                                 No
Right to Continued Status as a Director. 
This Option shall not confer upon the Optionee any right with respect to
continued status as a director of the Company, nor shall it interfere in any
way with the right of the Company or the shareholders to terminate his or her
status as a director at any time.

 

(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 federal and state laws, rules and
regulations and to such approvals by any government or regulatory agency as may
be required.  The Company shall not be
required to issue or deliver any certificates for shares of Stock prior to (i) compliance
with the regulations of the NASD or any stock exchange on which the Stock may
then be listed and (ii) 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 hereto would be
contrary to applicable law.

 

3.                                       Investment
Representation.  As a condition to
the exercise of the Option, the Company may require the person exercising the
Option to represent and warrant at the time of exercise that the shares are
being purchased only for investment and without any present intention to sell
or distribute such shares, if, in the opinion of counsel for the Company, such
a representation is required by any relevant provisions of law.  The shares may be issued with

 

3

 

appropriate legends on
stock certificates representing the shares, and the Company may place stop
transfer orders with respect to the shares.

 

4.                                       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.

 

5.                                       Notices.  Any notice hereunder to the Company shall be
addressed to it at its principal executive offices, located at 9605 West
Jefferson Trail, Inver Grove Heights, Minnesota 55077; and any notice hereunder
to the Optionee shall be addressed to him or her at the address set forth
below; subject to the right of either party to designate at any time hereunder
in writing some other address.

 

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

 

IN
WITNESS WHEREOF, MedicalCV, Inc. has caused this Agreement to be executed
by its President or a Vice President and the Optionee has executed this
Agreement, both as of the day and year first above written.

 

 

	
   

  	
  MEDICALCV, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Optionee
  (signature)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name and address
  of Optionee

  	
   

  
				

 

4

 

SCHEDULE I - NOTATIONS AS TO PARTIAL EXERCISE

 

	
  Date of Exercise

  	
   

  	
  Number of

  Purchased

  Shares

  	
   

  	
  Balance of

  Shares on

  Option

  	
   

  	
  Authorized

  Signature

  	
   

  	
  Notation Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

5

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