Document:

exv10w17

 

Exhibit 10.17

Stock Option Agreement between Uroplasty, Inc. and Executive Advisory Group (“EAG”)

dated April 1, 2003.

UROPLASTY, INC.

1995 PLAN STOCK OPTION AGREEMENT

No: 95-77-NQ

          THIS STOCK OPTION AGREEMENT by and between Executive Advisory Group (the
“Optionee”) and Uroplasty, Inc., a Minnesota corporation having a place of
business at 2718 Summer Street NE, Minneapolis, MN 55413 (the “Company”), is
dated April 1, 2003.

WITNESSETH:

          WHEREAS, the Company has adopted the Uroplasty, Inc. 1995 Stock Option
Plan as amended December 7, 1999 (the “Plan”), and

          WHEREAS, the Optionee and the Company wish to enter into this Agreement
for the granting of stock options effective April 1, 2003, and

          WHEREAS the Board of Directors has granted a stock option subject to the
execution of this Stock Option Agreement.

          NOW, THEREFORE, it is agreed as follows:

          Plan. The terms and conditions of the Plan, a copy of which has been
delivered to the Optionee, are hereby incorporated herein and made a part
hereof by reference as if set forth in full. In the event of any conflict or
inconsistency between the provisions of this Agreement and those of the Plan,
the provisions of the Plan shall govern and control.

          Number of Shares/Exercise Price. The number of shares of Common Stock of
the Company subject to the stock option provided for by this Agreement is fifty
thousand (50,000) and the purchase price of each such share is two dollars and
eighty cents ($2.80).

          Expiration. No stock option provided for by this Agreement is exercisable
after the earlier to occur of:

          the expiration of five (5) years from the date of this Agreement;

          the expiration of twelve (12) months from the date of termination of the
service of Optionee’s President, Sam B. Humphries, as a board member or, if
later, termination of the service of Optionee as a consultant to the Company
(other than a termination described in subparagraph (c) or (d) below);
provided that if the Optionee’s President shall die during such twelve-month
period, the time of termination of the unexercised portion of this Option shall
be determined pursuant to subparagraph (c) below;

          the expiration of one year from the date of termination of Mr. Humphries’
service as a board member if Mr. Humphries’ tenure as a director terminates as
a result of his permanent and total disability or death (other than a
termination described in subparagraph (d) below) ; or

          the termination of Mr. Humphries’ service as a board member or Optionee’s
service as a consultant by the Company if such termination constitutes or is
attributable to a breach by Mr. Humphries or the Optionee of this Agreement,
any Confidentiality, Inventions and Non-Compete and Non-Solicitation Agreement
or any similar agreement between the Optionee and the Company or between Mr.
Humphries and the Company having an equivalent purpose or effect or if either
Mr. Humphries or the Optionee is discharged for cause. The Company’s Board of
Directors shall have the right to determine whether Mr. Humphries or the
Optionee has been discharged for cause and the date of such discharge, and such
determination of the Board shall be final and conclusive.

4.     Vesting. All shares under this option shall become vested and exercisable
on the date of grant.

5.     Exercise Upon Termination. Upon termination of Mr. Humphries’ service as a
board member or the Optionee’s service as a consultant by reason of Mr.
Humphries’ non re-election to the board, disability, normal retirement, death
or otherwise, the stock option provided for by this Agreement is exercisable
only to the extent the same was exercisable immediately prior to such
termination.

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6.     Changes in Capitalization. In the event of any change in the outstanding
shares of Stock in the Company by reason of any stock dividend, split,
recapitalization, reorganization, merger, consolidation, combination, exchange
of shares or rights offering to purchase stock at a price substantially below
fair market value or other similar corporate change, the aggregate number of
shares which may be subject to Options under the Plan and the terms of any
outstanding Option, including the number and kind of shares subject to such
Options and the purchase price per share thereof, shall be appropriately
adjusted by the Board, consistent with such change and in such manner as the
Board, in its sole discretion, may deem equitable to prevent substantial
dilution or enlargement of the rights granted to or available for Optionee.
Notwithstanding the preceding sentence, in no event shall any fraction of a
share of stock be issued upon the exercise of an Option.

7.     Restriction on Transferability. The Plan provides that no stock option
granted thereunder shall be transferable other than by will or the laws of
decent and distribution and a stock option may be exercised during the lifetime
of Mr. Humphries thereof only by the Optionee. In the event of Mr. Humphries’
death, this stock option shall thereafter be exercisable during the period
specified in paragraph 3 hereof by Optionee.

8.     Manner of Exercise. Subject to the terms and conditions of this Agreement
and the Plan, the stock option may be exercised by giving written notice of
exercise signed by the Optionee to the Secretary of the Company at its
principal office and specifying the number of shares to be purchased and by
paying in full the purchase price of the number of shares of stock with respect
to which the stock option is exercised, in cash or in such other manner as may
be authorized from time to time by the Company’s Board of Directors. In
addition, the Optionee shall be solely responsible for the timely payment of an
amount sufficient to satisfy applicable federal, state or local tax
requirements, if any, resulting from the exercise any portion of this stock
option. In the event the stock option shall be exercised by any person other
than the Optionee, such notice to the Company shall be accompanied by
appropriate proof of the right of such person to exercise the stock option, if
any.

9.     Transfer of Shares by Company. The Company has no obligation to deliver
shares or cash upon exercise of any stock option until qualified for delivery
under such laws and regulations as may be deemed by the Company applicable
thereto. At such time, the Company shall effect the transfer to the Optionee
(or such other person exercising this stock option pursuant to paragraph 8
hereof) of the shares purchased pursuant hereto and within a reasonable time
thereafter such transfer shall be evidenced on the books of the Company. No
Optionee or other person exercising this stock option shall have any of the
rights of a shareholder of the Company with respect to shares subject to this
stock option until certificates for such shares shall have been issued
following the exercise of this stock option pursuant to the provisions thereof.

10.     Investment Representation. The Optionee, by its acceptance hereof,
represents and warrants to the Company that the purchase of shares of Common
Stock upon the exercise hereof shall be for investment and not with a view to
distribution, provided that this representation and warranty shall be
inoperative, if, in the opinion of counsel to the Company, a proposed sale or
distribution of such shares is pursuant to an applicable effective registration
statement under the Securities Act of 1933, as amended (the “Securities Act”)
or is exempt from registration under the Securities Act. The Optionee further
represents that all of equity interests are owned by Mr. Humphries, who is an
“accredited investor” within the meaning of the Securities Act.

11.     Tax Consequences. Optionee agrees that Optionee is solely responsible for
his tax liability that may arise as a result of the grant or exercise of the
stock option granted hereby, has consulted with its own tax advisors regarding
the federal, state and local tax consequences of this Agreement and is not
relying on any statement or representation of the Company or its employees or
agents.

     No Third Party Beneficiaries. Nothing herein expressed or implied is
intended or shall be construed as conferring upon or giving to any person, firm
or corporation other than the parties hereto any rights or benefits under or by
reason of this Agreement.

13.     Further Assurances. Each party hereto agrees to execute such further
papers, agreements, assignments or documents of title as may be necessary or
desirable to effect the purposes of this Agreement and carry out its
provisions.

14.     Entire Agreement. This Agreement embodies the entire agreement made
between the parties hereto with respect to the matters covered herein and shall
not be modified except by a writing signed by the party to be charged.

15.     Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, but all of which shall constitute
but one and the same agreement.

16.     Governing Law. This Agreement, in its interpretation and effect, shall be
governed by the laws of the State of Minnesota applicable to contracts executed
and to be performed therein.

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IN WITNESS WHEREOF, the undersigned have hereunto affixed their signatures.

	 	 	 
	UROPLASTY, INC	 	
EXECUTIVE ADVISORY GROUP

	 	 	 	 	 	 	 
	By	 	 	By	 	 
	 	

	 	

	 	
Daniel G. Holman, President and

        Chief Executive Officer
	 	Sam B. Humphries, President

Page 50exv10w18

 

Exhibit 10.18

Consulting Agreement between Uroplasty, Inc. and C.C.R.I. Corporation

dated April 1, 2003.

UROPLASTY, INC.

UPST

CONSULTING AGREEMENT

This Consulting Agreement is made and entered into this 1st day of April 2003,
by and between C.C.R.I. Corporation, a Colorado corporation (“Consultant”) and
Uroplasty, Inc., a Minnesota corporation (UPST), (the
“Company”).

It is agreed as follows:

     1.     Consultant Services. Consultant hereby agrees to perform and provide
investor relations and development services for the Company. Consultant will
perform the Services with the assistance and full participation of Mr. Malcolm
McGuire and his associates. The services will include, but not be limited to,
the following:

               (a)     Preparation of the Corporate Profile, suitable for use with brokers
and investors (research, write, design, print and distribute).

               (b)     Design and implement a Plan for both the short and long term
encouragement of investor interest in the company.

               (c)     Interface with the investment community on behalf of the Company,
and work to generate investor interest in the Company in this setting.

               (d)     Assist the Company in preparing press releases, upon request, and
introduce the Company to appropriate financial writers and media persons.

               (e)     Prepare and distribute at Consultant’s expense, and in accordance
with applicable laws, rules and regulation, FAX pieces designed specifically to
encourage interest in the Company (utilizing C.C.R.I.’s broker and investor FAX
NETWORK). A similar e-mail distribution is sent to our International network.
FaxNet goes out each Monday morning.

               (f)     Enlist additional quality brokerage houses to follow the
Company’s
stock and to be market makers.

               (g)     Introduce Company personnel to key persons in the investment
community and to C.C.R.I.’s network of brokers, financial planners, money
managers, analysts, and investors. This will include due diligence meetings in
select cities.

               (h)     Include information about the Company in a national distribution
that will target selected appropriate institutions, brokers, investment firms,
analysts and individual investors.

               (i)     Develop a database of key brokers that can be educated on behalf of
the Company and its stock, and seek to enhance the interest of these brokers in
the Company.

               (j)     Assist, when requested, in the preparation of presentations to
broker and investor groups.

               (k)     Provide quality Internet exposure via C.C.R.I.’s Web Site.

               (l)     Work with Company’s Officers to develop an ongoing in-house
program for investor relations.

               (m)     Interact with the market makers on behalf of the Company.

               (n)     Give such strength and liquidity to the stock at to facilitate
Company objectives.

               (o)     Work with management to achieve a more senior stock listing.

     2.     Payment. Subject to the provisions of the Agreement, the Company
shall pay Consultant the following as full compensation for the Services for
the term hereof:

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          (a)     Monthly Fee. The company shall pay consultant a monthly fee in the
amount of $4,000. Said fee shall compensate Consultants for general overseeing
of market activity of the stock and the activities detailed under Consultant
Services. The first $4,000 is due at the signing of this Contract.

          (b)     Monthly Expenses. Normal monthly expenses will be covered in
monthly retainer.

          (c)     Stock Compensation. Consultant shall receive payment of 35,000
shares of restricted common stock of Uroplasty, Inc. Consultant represents
that it is acquiring these shares for investment and not with a view to any
sales, transfer or other distribution. Consultant understands that the resale
of these shares is restricted within the meaning of the Securities Act of 1933,
as amended, and that the certificate representing the shares will contain an
appropriate legend to such effect. Consultant represents that it is an
“accredited investor” within the meaning of Regulation D of the Securities Act
because and each equity owner of Consultant is, individually, and accredited
investor under the Securities Act.

          (d)     Warrant Compensation. Consultant shall initially receive 50,000
warrants to purchase UPST common stock at a price of $3.00 price per share, and
50,000 warrants to purchase UPST common stock at $5.00 price per share on
November 2, 2003 unless this Agreement is sooner terminated. Said warrants to
have a 5 year life, exercisable at any time, with piggyback registration rights
only on first available SEC Registration.

          (e)     Financing Activities. If CCRI directly introduces sources of
capital to Uroplasty which sources were not previously known to UPST, CCRI
shall be entitled to a fee equal to 1% of funds received by Uroplasty as a
result of said introduction. The right will terminate upon termination of the
consulting agreement.

     3.     Project Expenses. The Company shall pay consultant project fees for
special promotional events and materials, such fees to be approved in advance
by the Company, and to be payable upon submission by Consultant to the Company
of itemized statements accounting for such expenses. In certain circumstances,
the Company will prepay the Consultant’s airfare or hotels costs directly as
agreed to in advance by the parties. Such projects will include but not be
limited to the following: All projects to be approved in advance by company
and a detailed, agreed upon project list to be attached to the final agreement
at signing, covering the first twelve months. Associated expenses need to be
approved in advance.

          (a)     Corporate Profile. Consultant agrees to produce an in-house
Corporate Profile on UPST. to be used with brokers and their investors.
This will be a six page, full color, “magazine quality” profile. Cost
shall be $10,000, with $5,000 to be paid upon inception of contract and
$5,000 upon approval for printing.

          (b)     Promotional Events. The Company agrees to reimburse Consultant for
travel, meal and lodging expenses incurred in co-hosting with the Company
promotional meetings for prospective investors, such meetings to be approved in
advance and at the discretion of the Company. The Company also agrees to pay
all room rental and catering expenses incurred in hosting any such meetings.
The Company will also cover costs of broker conference calls initiated with
prior consent of the Company.

          (c)     Mailing. The Consultant shall cause to be mailed certain
pre-printed materials over the course of the contract. Company will cover
costs of said mailing(s) subject to prior consent of the Company.

     4.     Prior Approval of Published Materials. Consultant shall provide the
Company for its review and comment copies of any tangible communications,
whether written or recorded on audio, video or film media, which Consultant may
give to any person in providing the Services. Consultant shall provide such
copies to the Company a minimum of two (2) business days prior to Consultant’s
first proposed use of such material, or more than five (5) business days prior
if necessary, to provide the Company the opportunity to make any revisions it
deems appropriate and necessary to such materials. Consultant shall not use
materials in performing the Services which contain any statement which is false
or misleading, and it shall include in all such materials all information
necessary to make the statements contained therein not misleading; provided
that Consultant shall not be responsible for the accuracy or completeness of
information furnished to it in writing by the Company.

     5.     Compliance with SEC Regulation FD. All communications and their
content, timing, method of communication and recipients shall in all instances
be made in total compliance with SEC Regulation FD and any failure to so comply
by CCRI shall be grounds for among other rights available at law or in equity)
immediate cancellation of this Agreement and all previously issued warrants and
return of all previously issued stock.

     6.     Nondisclosure of Confidential or Insider Information.

          (a)     In the course of performance of Consultant’s duties, Consultant may
receive information which is considered material inside information within the
meaning and intent of the United States federal securities law, rules and

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regulations. Consultant will not disclose this information to others, except
as expressly authorized by the Company and will not use this information
directly or indirectly for the benefit of Consultant or as a basis for advice
to any other party concerning any decision to buy, sell, or otherwise deal in
the Company’s securities or those of any of its affiliated companies.

          (b)     The provisions of this Section 6 shall survive the termination or
expiration of this agreement.

     7.     Scope of Engagement. Consultant shall retain the legal status of an
independent contractor. In no event shall Consultant be or be deemed to be an
employee or agent of the Company, or to qualify for benefits afforded such
persons as Company employees. Consultant has no power or authority to act for,
represent or bind the Company. Should CCRI become subject to the new SEC
Regulation AC and fail to become certified or otherwise comply with such
regulation, this Agreement shall be immediately cancelable by Company.

     8.     Term. This agreement shall commence on the date first written above,
and shall terminate on the one-year anniversary of such date, unless earlier
terminated by either party pursuant to the terms hereof. The Agreement will
automatically renew for a second year upon written consent of the Company.

     9.     Termination. Either party may terminate this Agreement at any time
upon thirty (30) business days’ notice after the six month anniversary of this
Agreement. In the event that this Agreement is terminated by either party
prior to the end of the one-year term, the Consultant shall be entitled to
reimbursement of expenses of unpaid expenses incurred to the date of
termination pursuant to the terms set forth herein. Termination of the
Agreement shall not affect the rights of the Consultant under any Warrants
previously granted.

     10.     Assignment. This Agreement shall be binding upon the parties’
respective successors and permitted assigns. Neither party may assign this
Agreement or any of its rights or obligations hereunder without the prior
written consent of the other party.

     11.     Notices. All notices and other official communications under this
Agreement shall be in writing and deemed sufficiently given if delivered
personally or mailed by first class mail, postage prepaid, to (if to the
company) UROPLASTY INC., Daniel G. Holman, President, 2718 Summer Street NE,
Minneapolis, Minnesota 55413 and (if to Consultant) CCRI CORPORATION 3104 East
Camelback Road,. #539, Phoenix, Arizona 85016, Attention: Malcolm McGuire.
Notices shall be effective upon delivery if delivered personally, and on the
third business day after mailing if mailed.

     12.     Severability. In the event any one or more of the provisions of this
Agreement is determined to be invalid, illegal or unenforceable, the remaining
provisions of the Agreement shall remain in full force and effect, unless the
removal of the provisions of the Agreement so nullified would render
meaningless either party’s performance hereunder.

     13.     Headings. The headings used in the Agreement are for the convenience
of the parties only and shall not in any way limit or affect the meaning or
interpretation of any of the terms hereof.

     14.     Entire Agreement. This Agreement constitutes the entire agreement
between the parties with respect to the subject matter embraced hereunder and
except as expressly incorporated herein, supersedes all prior agreements,
promises, proposals, representation, understanding and negotiations, whether
written or oral, between the parties. No modifications, amendments,
supplements to or waivers of the Agreement or any of the terms or conditions
hereof shall be binding upon the parties or of any effect unless made in
writing and duly sighed by both parties. In the event of any conflict between
the Agreement and any Warrant Agreement entered into by and between the
parties, this Agreement shall control.

     15.     Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Minnesota, exclusive of its conflict
of laws rules. Any legal action arising out of the interpretation or
performance of this Agreement shall be commenced in the Hennepin County
District Court, State of Minnesota. The parties agree to submit to the
jurisdiction of the district courts of the State of Minnesota for the purpose
of this Agreement.

	 	 	 
	Accepted by:	 	 
	 	 	 
	C.C.R.I. Corporation	 	
Uroplasty, Inc.

Page 53

 

 

	 	 	 	 	 	 	 
	By: 	 	 	 	By: 	 	 
	 	

	 	 	

	 	
Malcolm McGuire
	 	 	Daniel G. Holman, President
	 
	Date: 	 	 	 	Date: 	 	 
	 	

	 	 	

Page 54

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