Document:

Letter Agreement

 Exhibit 10.1 

[Urologix letterhead] 

April 27, 2010 

Mr. Brian J. Smrdel 
 [address]

 [address] 
 Re: Offer of Employment

 Dear Brian: 
 On behalf of
Urologix, Inc. (the “Company”), I am pleased to offer you the position of Chief Financial Officer. In this position, you would also serve as Urologix’ principal financial officer and principal accounting officer as those terms are
defined under the rules of the Securities and Exchange Commission. We would like you to begin serving in this role on May 10, 2010. 
 This
is a full-time position and you will be expected to devote all of your working time and ability to the performance of your duties. From May 10, 2010 to May 25, 2010, you may provide transition services to your former employer provided that
it does not interfere with your responsibilities at the Company. Any outside business activities will require prior authorization by the Chief Executive Officer. You will report to the Company’s Chief Executive Officer. 

You will be paid a base annual salary of $135,000 (less taxes and applicable withholdings) according to the Company’s normal payroll practices and
policies. The statement of annual salary does not imply a guarantee of employment for any specific length of time. If your employment terminates, you will be paid a prorated amount through your actual last day of employment. 

In fiscal year 2010, you will not be eligible for a cash bonus under the Urologix incentive plan. In fiscal year 2011 (which begins July 1, 2010),
you will be eligible for a cash bonus of 30% of your base salary at the target level based on achievement of specific goals to be determined by the Compensation Committee of the Board of Directors. The incentive target will be based upon a
Board-approved Fiscal Year 2010 Plan and appropriate metrics in that Plan. As an executive officer of Urologix, Urologix is willing to enter into an agreement (“Change in Control Agreement”) with you providing that if a “change in
control” occurs and your employment is terminated without “cause,” or by you for “good reason” within twelve months of a change in control, Urologix will pay you a cash severance payment in a single sum within 60 days of the
date of termination equal to 100% of your annual target compensation (base salary and bonus) in effect on such date. A copy of the Change in Control Agreement is attached to this letter. 

I am also pleased to inform you that as part of your employment offer, and following approval by the Compensation Committee of the
Board of Directors, you will be granted an incentive stock option to purchase 65,000 shares of the Company’s common stock at an exercise price determined by the closing market price of the stock on the date of grant. These options shall vest as
follows: 25% of the shares shall vest on the first anniversary of the grant date; and thereafter
1/36th of the shares underlying the option will vest on
the monthly anniversary of the date of 

 Mr. Brian J. Smrdel 

April 27, 2010 
  Page
 2
 
  

 
grant for each of the next 36 months. The stock option grant will be evidenced by an agreement and will be subject in all respects to the terms and conditions of the Urologix, Inc. Amended and
Restated 1991 Stock Option Plan, as amended. 
 You will be eligible for the full range of Company benefits. Urologix offers medical, dental,
life, flexible spending account, 401(k), AD&D, short-term and long-term disability coverage. The costs of benefits will vary depending upon the coverage you elect. You will be eligible to participate in our medical and dental, life, AD&D,
short-term and long-term disability and flexible spending programs on the first of the month following your date of employment. You will be eligible to participate in our 401(k) program following an initial 90-day waiting period. If you have any
questions on benefits, please feel free to contact Melanie Hill at (763) 475-7682. You will be entitled to accrue up to 120 hours of vacation annually. 

All necessary and reasonable business travel expenses you incur will be reimbursed in accordance with the Urologix Business Travel Policy. 

As a condition of your employment and for purposes of federal immigration law, you are required to provide the Company documentary evidence of your
identity and eligibility for employment in the United States. In order to ensure timely processing of your paycheck, such documentation must be provided to us within three business days of your date of employment. 

You will also be required to sign a Urologix, Inc. Agreement Regarding Employment, Inventions, Confidential Information and Non-Competition (copy
attached) as a condition of your employment. This letter, along with the foregoing agreement relating to proprietary rights, confidentiality and non-competition and the Change in Control Agreement, sets forth the terms of your employment with the
Company and supersedes any prior representations or agreements between us, whether written or oral. This letter may not be modified or amended except by a written agreement signed by the Chief Executive Officer and by you. 

This offer of employment will expire April 30, 2010, if not formally accepted. If the provisions of this offer are acceptable to you, please sign
one copy of this offer letter and return it to me at your earliest convenience. The second original copy is for your personal files. I would ask that you sign both, keep one copy and return the other copy to me (along with a signed copy of this
letter, the Urologix, Inc. Agreement Regarding Employment, Inventions, Confidential Information and Non-Competition and the Change in Control Agreement). 

In the meantime, please feel free to contact me if you have any questions. 

Sincerely, 
  

			
	By:	 	 /s/ Stryker Warren, Jr.

		 	 Stryker Warren, Jr.

		 	 Chief Executive Officer

 Mr. Brian J. Smrdel 

April 27, 2010 
  Page
 3
 
  

 I have read and understand the terms of this offer of employment by Urologix, Inc. I accept the offer of
employment by Urologix, Inc. and agree to be bound by these terms of employment. 
  

	
	 /s/ Brian J. Smrdel

	Brian J. Smrdel

  

			
	Dated:	 	 April 29, 2010Letter Agreement Regarding Change In Control Benefits

 Exhibit 10.2 

[Urologix letterhead] 

April 27, 2010 

Mr. Brian J. Smrdel 
 [address]

 [address] 
 Dear Brian: 

Although your employment is “at will” and may be terminated by you or Urologix at any time for any reason, Urologix has agreed to provide you
with a particular severance pay benefit following a Change in Control in the event your employment is terminated without Cause, or by you for Good Reason. Terms not otherwise defined in this letter (the “Letter Agreement”) shall have the
meaning given such terms on Schedule 1, which is incorporated herein by reference. 
 Specifically, we have agreed as follows: 

1. Change in Control. If a Change in Control shall occur and your employment is terminated without Cause, or by you for Good Reason, within twelve
months of a Change in Control, Urologix shall pay you a severance payment in cash in a single sum sixty within (60) days of the date of termination equal to 100% of the sum of your annual target compensation (base salary and bonus) in effect on
such date. For purposes of this Letter Agreement, “termination of employment” shall be interpreted consistent with the term “separation from service” within the meaning of Treas. Reg. §1.409A-1(h). In addition, Urologix
shall continue the health, dental and life insurance benefits substantially similar to those you are receiving or are entitled to receive prior to your termination for a period of twelve (12) months. You shall pay the employee’s share of
the premiums for such benefits. 
 2. Arbitration. All disputes or claims arising out of or in any way related to this Letter Agreement,
including the making of this Letter Agreement, shall be submitted to and determined by final and binding arbitration under the Rules of the American Arbitration Association. Arbitration proceedings may be initiated by either of us upon notice to the
other and to the American Arbitration Association, and shall be conducted by three arbitrators under the Rules of the American Arbitration Association in Minneapolis, Minnesota, unless we agree to have the person or persons to serve as arbitrators
within thirty (30) days of delivery of the list of proposed arbitrators by the American Arbitration Association, then, at the request of either of us, the three arbitrators shall be selected at the discretion of the American Arbitration
Association. 
 3. Entire Agreement. This Letter Agreement constitutes our entire agreement and supersedes all prior discussions,
understandings and agreements with respect to the severance benefits which Urologix has agreed to provide to you. This Letter Agreement shall be governed and construed by the laws of the State of Minnesota and may be amended only in writing signed
by both of us. 

 April 27, 2010 

Page 2 
 4. Successors. This Letter
Agreement shall not be assignable, in whole or in part, by you. This Letter Agreement shall be binding upon and inure to the benefit of Urologix and its successors and assigns and upon any person acquiring, by merger, consolidation, purchase of
assets or otherwise, all or substantially all of the assets and business of Urologix, and the successor shall be substituted for Urologix under this Letter Agreement. 

5. Compliance with Code §409A. It is the intention of the parties that this Letter Agreement be exempt from Code §409A to the greatest
extent possible. Accordingly, all provisions herein shall be construed and interpreted consistent with that intent, but that, to the extent any payment constitutes nonqualified deferred compensation, Urologix shall amend any such provision
pertaining to such payment to comply with Code §409A and the regulations thereunder, in the least restrictive manner necessary without any diminution in the value of the payments to you. Notwithstanding the foregoing, if on the date of your
“separation from service” (within the meaning of Treas. Reg. §1.409A-1(h)), you are a “specified employee” within the meaning of Treas. Reg. §1.409-1(i), then payment of any amount under this Agreement that constitutes
nonqualified deferred compensation shall be delayed until the earlier of (i) the first day of the seventh month following your separation from service, (ii) the first date on which such payment would not be non-deductible as a result of
Section 162(m) of the Code, or (iii) your death. In the event any such payment is so delayed, the amount of the first payment shall be increased for interest earned on the delayed payment based upon interest for the period of delay,
compounded annually, equal to the prime rate (as published in the Wall Street Journal) in effect as of the date the payment should otherwise have been provided. 

If this Letter Agreement accurately sets forth our agreement and understanding in regard to these matters, will you please sign this Letter Agreement
where indicated below and return the executed letter to me for our files. A separate copy is enclosed for your records. 
  

			
	UROLOGIX, INC.
		
	By:	 	 /s/ Stryker Warren, Jr.

		 	 Stryker Warren, Jr.

		 	 Chief Executive Officer

READ AND AGREED: 
  

							
	 /s/ Brian J. Smrdel
	 		 	 April 29, 2010
	 	
	Brian J. Smrdel	 		 	Date	 	

 SCHEDULE 1 

Definition of “Cause”: 
 1. The
failure by you to use your best efforts to perform the material duties and responsibilities of your position or to comply with any material policy or directive Urologix has in effect from time to time. 

2. Any act on your part which is harmful to the reputation or business of Urologix, including, but not limited to, conduct which is inconsistent with
federal or state law respecting harassment of, or discrimination against, any Urologix employee. 
 3. A material breach of your fiduciary
responsibilities to Urologix, such as embezzlement or misappropriation of Urologix funds or properties. 
 4. Your indictment for, conviction
of, or guilty plea or nolo contendere plea to a felony or any crime involving moral turpitude, fraud or misrepresentation. 

Definition of “Change in Control”: 

Change in Control of Urologix shall mean a change in control which would be required to be reported in response to Item 1 of Form 8-K promulgated
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), whether or not Urologix is then subject to such reporting requirement, including without limitation, if: 

 

	 	(a)	any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly of securities of Urologix representing 20% or more of the combined voting power of Urologix’ then outstanding securities; 

 

	 	(b)	there ceases to be a majority of the Board of Directors comprised of (A) individuals who, on the date of this Letter Agreement, constituted the Board of Directors
of Urologix; and (B) any new director who subsequently was elected or nominated for election by a majority of the directors who held such office prior to a Change in Control; or 

 

	 	(c)	Urologix disposes of at least 75% of its assets, other than to an entity owned 50% or greater by Urologix or any of its subsidiaries. 

Definition of “Good Reason”: 

Good Reason shall mean, without your express written consent, any of the following: 

 

	 	(a)	a material diminution of your authority, duties or responsibilities with respect to your position immediately prior to the Change in Control, or

  

	 	(b)	a material reduction in your base compensation as in effect immediately prior to the Change in Control; 

	 	(c)	a material reduction in the authority of the person to whom you report (or a change in your reporting directly to the Board of Directors, if applicable);

  

	 	(d)	a material change in the geographic location at which you must perform services for Urologix; and 

 

	 	(e)	any other action or inaction that constitutes a material violation of this Agreement by Urologix; 

provided that no such termination for Good Reason shall be effective unless: (i) you provide written notice to the Chair of the Board of Directors
of the existence of a condition specified in paragraphs (a) through (e) above within 90 days of the initial existence of the condition; (ii) Urologix does not remedy such condition within 30 days of the date of such notice; and
(iii) you terminate your employment within 90 days following the last day of the remedial period described above.

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