Document:

Exhibit 10.2

 

UROPLASTY, INC.

 NON-QUALIFIED STOCK OPTION AGREEMENT

 

	
 

AWARDED TO

	
Grant No.

	
 

Grant Date

	
Number of Shares

	
Exercise Price

	
NAME

	
NQXXX

	
MM/DD/YY

	
XX,XXX

	
$X.XX

This NON-QUALIFIED STOCK OPTION AGREEMENT (the “Agreement”) is made as of the date set forth in the box above labeled “Grant Date” (the “Grant Date”) by and between Uroplasty, Inc., a Minnesota corporation (the “Company”), and the individual named in the box above labeled “Awarded To” (the “Participant”).

 

1.       Grant of Option.  The Company hereby grants Participant the option (the “Option”) to purchase all or any part of an aggregate of the number of shares of the Company’s Common Stock set forth in the box above labeled “Number of Shares” (the “Shares”) at the exercise price, which is the closing price of the Company’s common stock on the Grant Date, set forth in the box above labeled “Exercise Price” according to the terms and conditions set forth in this Agreement and in the Uroplasty, Inc. 2006 Stock and Incentive Plan (the “Plan”).  The Option will not be treated as an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).  The Option is issued under the Plan and is subject to its terms and conditions.  A copy of the Plan will be furnished upon request of Participant.

 

The Option shall terminate at the close of business seven years from the Grant Date.

 

2.       Vesting of Option Rights.

 

(a)           Except as otherwise provided in this Agreement or the Plan, the Option may not be exercised by Participant until the Vesting Date on XXXX, XX, XXXX, the first anniversary of your Grant Date.

 

(b)          During the lifetime of Participant, the Option shall be exercisable only by Participant and shall not be assignable or transferable by Participant, other than by will or the laws of descent and distribution.

 

3.        Expiration Date.  You may exercise the Option only to the extent you are vested in it.  You may exercise that portion of your exercisable Option at any time and from time to time until 5:00 pm central time on XXXX, XX, XXXX after which time your Option expires.

 

4.        Exercise of Option after Death or Termination.  The Option shall terminate and may no longer be exercised if Participant ceases to be a member of the Board of Directors of the Company, except that:

 

(a)         If Participant ceases to be a member of the Board of Directors of the Company for any reason, voluntary or involuntary, other than for “Cause” (as defined in the Plan) or Participant’s death or disability (as defined in the Plan), Participant may at any time within a period of 3 months after such termination exercise the Option to the extent the Option was exercisable by Participant on the date of the termination of Participant as a Director.

 

(b)         If Participant ceases to be a member of the Board of Directors of the Company for Cause, the Option shall be terminated as of the date of the act giving rise to such termination.

 

(c)         If Participant shall die while the Option is still exercisable according to its terms or if terminated because Participant has become disabled (as defined in the Plan) while a member of the Board of Directors of the Company and Participant shall not have fully exercised the Option, such Option may be exercised at any time within 12 months after Participant’s death or date of termination as a Director for disability by Participant, personal representatives or administrators or guardians of Participant, as applicable or by any person or persons to whom the Option is transferred by will or the applicable laws of descent and distribution, to the extent of the full number of Shares Participant was entitled to purchase under the Option on (i) the earlier of the date of death or termination as a Director or (ii) the date of termination for such disability, as applicable.

 

(d)        Notwithstanding the above, in no case may the Option be exercised to any extent by anyone after the termination date of the Option.

 

5.       Method of Exercise of Option.  Subject to the foregoing, the Option may be exercised in whole or in part from time to time by serving written notice of exercise to the Company at its principal office within the Option period.  The notice shall state the number of Shares as to which the Option is being exercised and shall be accompanied by payment of the exercise price.  Payment of the exercise price shall be made (i) in cash (including bank check, personal check or money order payable to the Company), (ii) with the approval of the Company (which may be given in its sole discretion), by tendering to the Company a number of shares of the Company’s Common Stock already owned by Participant having a Fair Market Value (as defined in the Plan) equal to the full exercise price of the Shares being acquired.

 

6.       Miscellaneous.

 

(a)           Plan Provisions Control.  In the event that any provision of the Agreement conflicts with or is inconsistent in any respect with the terms of the Plan, the terms of the Plan shall control.

 

(b)          No Rights of Stockholders.  Neither Participant, Participant’s legal representative nor a permissible assignee of this Option shall have any of the rights and privileges of a stockholder of the Company with respect to the Shares, unless and until such Shares have been issued in the name of Participant, Participant’s legal representative or permissible assignee, as applicable.

 

(c)           No Right to Employment or Membership.  The grant of the Option shall not be construed as giving Participant the right to be retained in the employ of, or as giving a Director of the Company the right to continue as a Member of the Board of Directors of the Company or an Affiliate (as defined in the Plan), nor will it affect in any way the right of the Company or an Affiliate to terminate such position at any time, with or without cause.  In addition, the Company may at any time terminate Participant’s term as a member of the Board of a Directors of the Company, free from any liability or any claim under the Plan or the Agreement.  Nothing in the Agreement shall confer on any person any legal or equitable right against the Company or any Affiliate, directly or indirectly, or give rise to any cause of action at law or in equity against the Company or an Affiliate.  The Option granted hereunder shall not form any part of the wages, salary or retainer of Participant for purposes of severance pay or termination indemnities, irrespective of the reason for termination.  Under no circumstances shall any person ceasing to be a Participant of the Company or any Affiliate be entitled to any compensation for any loss of any right or benefit under the Agreement or Plan which such Participant might otherwise have enjoyed but for termination, whether such compensation is claimed by way of damages for wrongful or unfair dismissal, breach of contract or otherwise.  By participating in the Plan, Participant shall be deemed to have accepted all the conditions of the Plan and the Agreement and the terms and conditions of any rules and regulations adopted by the Committee and shall be fully bound thereby.

 

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(d)            Governing Law.  The validity, construction and effect of the Plan and the Agreement, and any rules and regulations relating to the Plan and the Agreement, shall be determined in accordance with the internal laws, and not the law of conflicts, of the State of Minnesota.

 

(e)           Severability.  If any provision of the Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or would disqualify the Agreement under any law deemed applicable by the Committee (as defined in the Plan), such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the purpose or intent of the Plan or the Agreement, such provision shall be stricken as to such jurisdiction or the Agreement, and the remainder of the Agreement shall remain in full force and effect.

 

(f)            No Trust or Fund Created.  Neither the Plan nor the Agreement shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and Participant or any other person.

 

(g)          Headings.  Headings are given to the Sections and subsections of the Agreement solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Agreement or any provision thereof.

 

(h)          Conditions Precedent to Issuance of Shares.  Shares shall not be issued pursuant to the exercise of the Option unless such exercise and the issuance and delivery of the applicable Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, the requirements of any applicable Stock Exchange and the Minnesota Business Corporation Act.  As a condition to the exercise of the purchase price relating to the Option, the Company may require that the person exercising or paying the purchase price represent and warrant 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 and warranty is required by law.

 

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(i)            Income Tax.  Participant is responsible for payment of all applicable taxes with respect to the exercise of this grant.

 

IN WITNESS WHEREOF, the Company and Participant have executed this Agreement on the date set forth in the first paragraph.

 

	 	UROPLASTY, INC.
	 		
		By:	
 

		Name:  Rob Kill
		Its:  Title; President and CEO

 

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Return to UROPLASTY, Inc., Chief Financial Officer,

 5420 Feltl Road, Minnetonka, MN 55343

ACKNOWLEDGMENT OF RECEIPT

 

	
 

AWARDED TO

	
 

Grant Date

	
Number of Shares

	
Exercise Price

	
NAME

	
NQXXX

	
MM/DD/YY

	
XX,XXX

I hereby acknowledge receipt of the Non-Qualified Stock Option granted on the Grant Date under the terms and conditions of the Plan and this Agreement and agree to the provisions set forth therein and herein.

	 	
	
Signature of Participant

	
Date

 

 

5Exhibit 10.3

 

UROPLASTY, INC.

RESTRICTED STOCK AWARD AGREEMENT

 

	
 

AWARDED TO

	
 

Award Date

	
 

Award No.

	
Number of 

UROPLASTY, Inc. 

Common Shares

	
 

 

Social Security Number

	
NAME

	
MM/DD/YY

	
RSAXXX

	
XX,XXX

	
XXX-XX-XXXX

 

THIS AGREEMENT is made as of the date set forth in the box above labeled “Award Date” (the “Award Date”) by and between Uroplasty, Inc., a Minnesota corporation (the “Company”), and the individual named in the box above labeled “Awarded To” (the “Participant”).

 

WHEREAS, the Company pursuant to its 2006 Amended Stock and Incentive Plan (the “Plan”) wishes to award to Participant shares of Common Stock of the Company, $.01 par value (the “Common Stock”), subject to certain restrictions and on the terms and conditions contained in this Agreement and the Plan;

 

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, the parties hereto hereby agree as follows:

 

1.       Award

 

The Company, effective as of the date of this Agreement, hereby grants to Participant a restricted stock award of the number of shares of the Company’s Common Stock set forth in the box above labeled “Number of Uroplasty, Inc. Common Shares” (the “Shares”) subject to the terms and conditions set forth herein.

 

2.       Vesting

 

Subject to the terms and conditions of this Agreement, one third (1/3) of the Shares shall vest on the first anniversary of the Award Date, an additional one third (1/3) the Shares shall vest on the second anniversary of the Award Date and a final one third (1/3) the Shares shall vest on the third anniversary of the Award Date (the “Final Vesting Date”).

 

3.       Restriction on Transfer

 

Until the Shares vest pursuant to Section 2 or 4 hereof, none of the Shares may be pledged, alienated, attached or otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance thereof shall be void and unenforceable against the Company, and no attempt to transfer the Shares, whether voluntary or involuntary, by operation of law or otherwise, shall vest the purported transferee with any interest or right in or with respect to the Shares.

 

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4.       Forfeiture; Early Vesting

 

If Participant ceases to be an employee of the Company or its subsidiaries prior to vesting of the Shares pursuant to Section 2 hereof or Section 12 of the Plan, all of Participant’s rights to all of the unvested Shares shall be immediately and irrevocably forfeited, except that (i) if Participant ceases to be an employee by reason of Disability (as defined below) prior to the vesting of Shares under Section 2 hereof or Section 12 of the Plan, Participant, in addition to Shares previously vested under this Agreement, shall become immediately vested, as of the date of such Disability, in all previously unvested Shares granted hereunder; and (ii) if Participant ceases to be an employee by reason of death prior to the vesting of Shares under Section 2 hereof or Section 12 of the Plan, Participant or his or her estate, in addition to Shares previously vested under this Agreement, shall become immediately vested, as of the date of death, in all previously unvested Shares granted hereunder.  Upon forfeiture, Participant will no longer have any rights relating to the unvested Shares, including the right to vote the Shares and the right to receive cash dividends.  For purposes of this Agreement, “Disability” has the meaning given to such term in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”).

 

5.        Issuance and Custody of Certificate

 

(a)            The Company shall cause to be issued one or more stock certificates, registered in the name of Participant, evidencing the Shares.  Each such certificate shall bear the following legend:

 

“The shares of common stock represented by this certificate are subject to forfeiture, and the transferability of this certificate and the shares of stock represented hereby are subject to the restrictions, terms and conditions (including restrictions against transfer) contained in the Uroplasty, Inc. 2006 Stock and Incentive Plan and a Restricted Stock Award Agreement entered into between Uroplasty, Inc. and the registered owner of such shares.  Copies of the Plan and the Agreement are on file in the office of the Chief Financial Officer of Uroplasty, Inc., 5420 Feltl Road, Minnetonka, MN 55343.”

 

(b)          Each certificate issued pursuant to Section 5(a) hereof shall be deposited by the Company with the Chief Financial Officer of the Company or a custodian designated by the Chief Financial Officer.

 

(c)           After any Shares vest pursuant to Section 2 or 4 hereof, or Section 12 of the Plan, the Company shall promptly cause to be issued a certificate or certificates evidencing such vested Shares, free of the legend set forth in Section 5(a) hereof, and shall cause such certificate or certificates to be delivered to Participant or Participant’s legal representatives, beneficiaries or heirs, as the case may be.

 

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6.       Securities Law Compliance

 

(a)            The delivery of all or any of the Shares shall only be effective at such time that the issuance of such Shares will not violate any state or federal securities or other laws.  The Company may, in its sole discretion, delay the delivery of the Shares or place restrictive legends on such Shares in order to ensure that the issuance of any Shares will be in compliance with federal or state securities laws, rules or regulations or other laws or rules (including the rules of any securities exchange) as may be determined by the Company to be applicable.

 

7.       Distributions and Adjustments

 

(a)          If there shall be a change in the shares of Common Stock of the Company through merger, consolidation, reorganization, recapitalization, dividend in the form of stock (of whatever amount), stock split or other change in the corporate structure of the Company, and any Shares shall remain unvested at such time, then appropriate adjustments in the unvested Shares shall be made by the Company, in order to prevent dilution or enlargement of rights hereunder.  Such adjustments shall include, where appropriate, changes in the number of shares of Common Stock that are unvested and subject to this Agreement.

 

(b)         Any additional shares of Common Stock, any other securities of the Company and any other property (except for cash dividends) distributed with respect to the Shares prior to the date the Shares vest shall be subject to the same restrictions, terms and conditions as the Shares.  Any cash dividends payable with respect to the Shares shall be distributed to Participant at the same time cash dividends are distributed to stockholders of the Company generally.

 

(c)          Any additional shares of Common Stock, any securities and any other property (except for cash dividends) distributed with respect to the Shares prior to the date such Shares vest shall be promptly deposited with the Chief Financial Officer or the custodian designated by the Chief Financial Officer to be held in custody in accordance with Section 5(b) hereof.

 

8.        Income Tax Withholding

 

In order to comply with all applicable federal or state income tax laws or regulations, the Company may take such action as it deems appropriate to ensure that all applicable federal or state payroll, withholding, income or other taxes, which are the sole and absolute responsibility of Participant, are withheld or collected from Participant.  Participant may, at Participant’s election, satisfy applicable tax withholding obligations arising from the receipt of, or lapse of restrictions relating to, the Shares by electing to have the Company withhold a portion of the Shares otherwise to be delivered with a Fair Market Value (as such term is defined in the Plan) equal to the amount of such taxes.  The election must be made on or before the date that the amount of tax to be withheld is determined.

 

9.       Miscellaneous

 

(a)          This Agreement is issued pursuant to the Plan and is subject to its terms.  Participant hereby acknowledges receipt of a copy of the Plan.  The Plan is also available for inspection during business hours at the principal office of the Company.

 

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(b)          This Agreement shall not confer on Participant any right with respect to continuance of employment with the Company or any of its subsidiaries, or to continue as a director, consultant or other person providing Services to the Company, nor will it interfere in any way with the right of the Company or any of its subsidiaries to terminate such employment, position or Services at any time.

 

(c)           Until the Shares shall have been issued to Participant as provided herein, Participant shall have only the right to receive cash dividends and vote the Shares, but shall have no other rights of a stockholder with respect to the Shares.  Subject to the restrictions and terms of this Agreement, after such issuance, Participant shall have all of the rights of a stockholder with respect to the Shares.

 

(d)         Participant may designate, upon forms to be furnished by and filed with the Company, one or more primary beneficiaries or alternative beneficiaries to receive all or a specified part of Participant’s Shares in the event of Participant’s death.  Participant may change or revoke any such designation from time to time without notice to or consent from any beneficiary or spouse.  No such designation, change or revocation shall be effective unless executed by Participant and received by the Company during Participant’s lifetime.  If Participant fails to designate a beneficiary, designates a beneficiary and thereafter such designation is revoked without another beneficiary being named, or designates one or more beneficiaries and all such beneficiaries so designated fail to survive Participant, then Participant’s Shares, or the part thereof as to which Participant’s designation fails, as the case may be, shall be payable to the representative of Participant’s estate.

 

(e)          This Agreement and the Plan evidence the entire understanding and agreement of the parties hereto relative to the matters discussed herein.  This Agreement supersedes any and all other agreements and understandings, whether written or oral, relative to the matters discussed herein.  This Agreement may only be amended by a written document signed by both of the parties hereto.

 

(f)            This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.

 

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

 

	 	UROPLASTY, INC.
	 		
		By:	
 

	 	Its:	 
		Its:  Title; President and CEO

 

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Return by mail (or fax: 952-426-6171) to UROPLASTY, Inc., Chief Financial Officer,

 5420 Feltl Road, Minnetonka, MN 55343

ACKNOWLEDGMENT OF RECEIPT

 

	
 

AWARDED TO

	
 

Award Date

	
 

Award No.

	
Number of UROPLASTY, Inc. Common Shares

	
Social Security Number

	
NAME

	
MM/DD/YY

	
RSAXXX

	
XX,XXX

	
XXX-XX-XXXX

I hereby acknowledge receipt of the Restricted Stock Award granted on the Award Date under the terms and conditions of the Plan and this Agreement and agree to the provisions set forth therein and herein.

 

	 	
	
Signature of Participant

	
Date

 

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