UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
(Amendment No. 1)
þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended: June 30, 2013
or
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from: _____________ to _____________
GelTech Solutions, Inc. |
(Exact name of registrant as specified in its charter) |
Delaware |
| 0-52993 |
| 56-2600575 |
(State or Other Jurisdiction |
| (Commission |
| (I.R.S. Employer |
of Incorporation or Organization) |
| File Number) |
| Identification No.) |
Address of Principal Executive Office: 1460 Park Lane South, Suite 1, Jupiter, Florida 33458
Registrants telephone number, including area code: (561) 427-6144
Securities registered pursuant to Section 12(b) of the Act: None |
|
Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.001, par value
|
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ¨ Yes þ No |
|
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ¨ Yes þ No |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes ¨ No |
|
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). þ Yes ¨ No |
|
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ |
|
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. |
Large accelerated filer | ¨ | Accelerated filer | ¨ | Non-accelerated filer | ¨ | Smaller reporting company | þ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ þ No | |
|
|
The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold as of the last business day of the registrants most recently completed second fiscal quarter was approximately $5.7 million based on December 31, 2012 closing price of $0.32 per share. | |
| |
Indicate the number of shares outstanding of each of the registrants classes of common stock, as of the latest practicable date. 35,075,583 shares outstanding as of October 24, 2013. |
GELTECH SOLUTIONS, INC.
FORM 10-K/A
INDEX
|
| Page |
| PART III |
|
|
|
|
Item 10. | Directors, Executive Officers and Corporate Governance. | 1 |
|
|
|
Item 11. | Executive Compensation. | 5 |
|
|
|
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. | 10 |
|
|
|
Item 13. | Certain Relationships and Related Transactions, and Director Independence. | 12 |
|
|
|
Item 14. | Principal Accountants Fees and Services. | 14 |
|
|
|
| PART IV |
|
|
|
|
Item 15. | Exhibits, Financial Statement Schedules. | 15 |
SIGNATURES | 17 |
EXPLANATORY NOTE
This Amendment No. 1 on Form 10-K/A (this Amendment) amends the Annual Report on Form 10-K of GelTech Solutions, Inc., a Delaware corporation (the Company, or GelTech) for the fiscal year ended June 30, 2013 that was originally filed with the Securities and Exchange Commission (SEC) on September 27, 2013 (the Original Filing) and is being filed primarily to provide the information required by Items 10, 11, 12, 13, and 14 of Part III. This information was previously omitted from the Original Filing in reliance on General Instruction G(3) to Form 10-K, which permits the information in the above-referenced items to be incorporated in the Form 10-K by reference from a definitive proxy statement if such statement is filed no later than 120 days after our fiscal year end. We are filing this Amendment to include Part III information in our Form 10-K because we do not expect to file our definitive proxy statement containing this information before that date. Except for the addition of the Part III information, the update to the cover page, and the filing of related certifications and the exhibits, this Amendment does not amend or otherwise update any other information in the Original Filing. Accordingly, this Amendment should be read in conjunction with the Original Filing and with our filings with the SEC subsequent to the Original Filing.
PART III
Item 10. Directors, Executive Officers and Corporate Governance.
Directors
The following table represents our Board of Directors as of October 28, 2013:
Name |
| Age |
| Position |
Michael Cordani |
| 53 |
| Chairman of the Board |
Peter Cordani |
| 52 |
| Director |
Michael Becker |
| 62 |
| Director |
Leonard Mass |
| 72 |
| Director |
Phil OConnell, Jr. |
| 73 |
| Director |
Neil Reger |
| 75 |
| Director |
Director Biographies
Michael Cordani has been our Chief Executive Officer and a director since inception. From June 25, 2007 until September 21, 2012, Mr. Cordani was our Chairman of the Board. In March 2013, Mr. Cordani was re-appointed Chairman of the Board. Mr. Cordani was selected as a director for his 20 years of experience in management. In addition, Mr. Cordani was selected because he is our Chief Executive Officer. Mr. Cordani has been diagnosed with a life threatening disease for which he has been undergoing treatment. Until recently, he continued to be involved in the day to day operations of GelTech. However, Mr. Cordani has taken an indefinite leave of absence. In Mr. Cordanis absence, Mr. Peter Cordani, GelTechs founder, President and Chief Technology Officer, and the inventor of all of its products, is acting in Mr. Cordanis place. The Board has formed a special committee to formulate a succession plan to recommend to the Board in the event that Mr. Michael Cordani is no longer able to fulfill his role as Chief Executive Officer.
Peter Cordani has been our Chief Technology Officer since inception and our President since September 2013. Mr. Cordani has been a director since July 3, 2007. He is the inventor of all of our intellectual property. Mr. Cordani was selected as a director because of his patent experience, he is the inventor of our technologies and because he is our President and Chief Technology Officer.
Michael Becker became a director of GelTech on January 3, 2012. Mr. Becker has been President of the accounting firm Michael C. Becker & Co. since 1979. From 1976 until August 2007, Mr. Becker served on the Miami-Dade Fire Department and retired as the Chief Fire Officer. Mr. Becker is a Certified Public Accountant in Florida. Mr. Becker was selected as a director because of his experience as an accountant, his knowledge of the fire industry and because he is independent.
Leonard Mass has been our director since May 11, 2010. Since September 2005, Mr. Mass has been the Vice President of Land Development in the Real Estate Development division of the Drummond Company, Inc. a company which is principally engaged in the business of mining, purchasing, processing and selling of both thermal and metallurgical coal. Mr. Mass was selected to as a director for his 40 years of experience in executive management and his background in finance and management and because he is independent.
Phil OConnell, Jr. became a director of GelTech on November 15, 2006. Mr. OConnell is an attorney and has been a partner at the law firm of Ciklin Lubitz Martens & OConnell, P.A. and predecessor law firms since 1969. Mr. OConnell was selected as a director because of his experience as a lawyer and because he is independent.
Neil Reger became a director on October 1, 2013. Since his retirement over five years ago, Mr. Reger has been an active investor. Since his son Michael Reger has been an investor in GelTech, Mr. Reger has consulted with management on GelTechs operations (without compensation). Mr. Reger was selected as a director because of his 45 years of business and management experience.
1
Executive Officers
Name |
| Age |
| Position |
Michael Cordani |
| 53 |
| Chief Executive Officer |
Peter Cordani |
| 52 |
| President and Chief Technology Officer |
Michael Reger |
| 50 |
| Chief Operating Officer |
Michael Hull |
| 60 |
| Chief Financial Officer |
See above for Mr. Michael Cordanis biography.
Michael Hull has served as our Chief Financial Officer since March 2008. Until September 1, 2011, Mr. Hull was working for us on a part-time basis. Since then, Mr. Hull has been with us on a full-time basis. From January 2008 until December 2009, Mr. Hull was a Director of CFO Services for WSR Consulting, Inc., which we refer to as WSR, which provides Chief Financial Officer and related services to businesses. Prior to Mr. Hull becoming a full-time employee, WSR provided Chief Financial Officer services to GelTech. See the section titled Certain Relationships and Related Transactions, and Director Independence for further description. Until August 31, 2011, Mr. Hull spent the majority of his time providing accounting services for Ecosphere Technologies, Inc. (OTCBB: ESPH) a diversified water engineering, technology licensing and environmental services company. Previously, Mr. Hull spent 11 years in public accounting with the South Florida audit practice of Price Waterhouse. Mr. Hull is a Certified Public Accountant in Florida.
See above for Mr. Peter Cordanis biography.
Michael Reger has been our Chief Operating Officer since March 25, 2013. For over 20 years, Mr. Reger has been a partner at III Associates, a registered investment advisor, and AVM, L.P., an institutional broker dealer.
Mr. Michael Cordani, our Chief Executive Officer and a director, is the brother of Mr. Peter Cordani, our Chief Technology Officer, President and a director. Mr. Michael Reger, our Chief Operating Officer, is the son of Neil Reger, a director of GelTech. There are no other family relationships between any of the executive officers and directors. Our Bylaws require that each director is elected at our annual meeting of shareholders and holds office until the next annual meeting of shareholders, or until his successor is elected and qualified. See the section titled Related Person Transactions below for further information concerning our employment of Cordani family members.
Corporate Governance
Board Responsibilities
The Board oversees, counsels, and directs management in the long-term interest of GelTech and its shareholders. The Boards responsibilities include establishing broad corporate policies and reviewing the overall performance of GelTech. The Board is not, however, involved in the operating details on a day-to-day basis.
Board Committees and Charters
The Board and its Committees meet throughout the year and act by written consent from time-to-time as appropriate. The Board delegates various responsibilities and authority to different Board Committees. Committees regularly report on their activities and actions to the Board.
The Board currently has and appoints the members of: the Audit Committee, the Compensation Committee, which we refer to as the Committee, the Nominating Committee and the Executive Committee.
2
The following table identifies the independent and non-independent current Board and Committee members:
Name |
|
| Independent |
|
| Audit |
|
| Compensation |
|
| Nominating | Executive |
Michael Cordani |
|
|
|
|
|
|
|
|
|
|
| ü | ü |
Peter Cordani |
|
|
|
|
|
|
|
|
|
|
|
|
|
Michael Becker |
|
| ü |
|
| ü |
|
| ü |
|
|
| ü |
Leonard Mass |
|
| ü |
|
| ü |
|
| ü |
|
|
| ü |
Phil O’Connell, Jr. |
|
| ü |
|
| ü |
|
| ü |
|
| ü | ü |
Neil Reger |
|
|
|
|
|
|
|
|
|
|
|
|
|
The Board held eight meetings in fiscal 2013. Each of the directors attended over 75% of the total number of Board meetings and committee meetings on which such director served. We do not have a policy with regard to directors attendance at the Annual Meeting. GelTech did not hold an Annual Meeting in fiscal 2013.
Director Independence
Our Board has determined that Messrs. Becker, Mass and OConnell are independent in accordance with standards under the Nasdaq Listing Rules. Our Board determined that as a result of being (or having a family member who was) employed as an executive officer, Messrs. Michael Cordani, Peter Cordani and Neil Reger were not independent under the Nasdaq Listing Rules.
Our Board has also determined that Messrs. Becker, Mass and OConnell are independent under the Nasdaq Listing Rules independence standards for Audit Committee members.
Committees of the Board of Directors
Audit Committee
The Audit Committee, which currently consists of Michael Becker, Leonard Mass, and Phil OConnell, Jr., reviews GelTechs financial reporting process on behalf of the Board and administers our engagement of the independent registered public accounting firm. The Audit Committee meets with the independent registered public accounting firm, with and without management present, to discuss the results of its examinations, the evaluations of our internal controls, and the overall quality of our financial reporting. Management has the primary responsibility for the financial statements and the reporting process, including the system of internal controls.
Audit Committee Financial Expert
Our Board has determined that Mr. Michael Becker is qualified as an Audit Committee Financial Expert, as that term is defined by the rules of the SEC and in compliance with the Sarbanes-Oxley Act of 2002.
Compensation Committee
The function of the Committee is to determine the compensation of our executive officers. The Committee has the power to set performance targets for determining periodic bonuses payable to executive officers and may review and make recommendations with respect to shareholder proposals related to compensation matters. Additionally, the Committee is responsible for administering the 2007 Equity Incentive Plan, which we refer to as the Plan.
Nominating Committee
The responsibilities of the Nominating Committee include the identification of individuals qualified to become Board members, the selection of nominees to stand for election as directors, the oversight of the selection and composition of committees of the Board, establish procedures for the nomination process including procedures and the oversight of the evaluations of the Board and management. The Nominating Committee has not established a policy with regard to the consideration of any candidates recommended by shareholders since no shareholders have made any recommendations. If we receive any shareholder recommended nominations, the Nominating Committee will carefully review the recommendation(s) and consider such recommendation(s) in good faith.
3
Executive Committee
Our Executive Committee has the authority during intervals between the meetings of the Board to exercise all powers allowed under Delaware law and authority of the Board in the management of our business and affairs.
Board Diversity
While we do not have a formal policy on diversity, our Board considers diversity to include the skill set, background, reputation, type and length of business experience of our board members as well as a particular nominees contribution to that mix. Although there are many other factors, the board seeks individuals with experience in the fire and utility industries, legal and accounting skills and board experience.
Board Leadership Structure
GelTech has chosen to combine the Chief Executive Officer and Board Chairman positions. We believe that this Board leadership structure is appropriate for GelTech at this time. Because we are a small company, it is more efficient to have the leadership of the Board in the same hands as the Chief Executive Officer of GelTech. GelTech does not have a lead independent director.
Role of Board in Risk Oversight
Our risk management function is overseen by our Board. Our management keeps its Board apprised of material risks and provides its directors access to all information necessary for them to understand and evaluate how these risks interrelate, how they affect us, and how management addresses those risks. Michael Cordani, as our Chief Executive Officer and Chairman of the Board, Peter Cordani, our President and Chief Technology Officer and Michael Hull, our Chief Financial Officer, work closely together with the Board once material risks are identified on how to best address such risks. If the identified risk poses an actual or potential conflict with management, our independent directors may conduct the assessment. Presently, the primary risks affecting us are our ability to grow our business, marketing our products and the commercial acceptance of our technologies.
Code of Ethics
Our Board has adopted a Code of Ethics that applies to all of our employees, including our Chief Executive Officer and Chief Financial Officer. Although not required, the Code of Ethics also applies to our Board. The Code of Ethics provides written standards that we believe are reasonably designed to deter wrongdoing and promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships, full, fair, accurate, timely and understandable disclosure and compliance with laws, rules and regulations, including insider trading, corporate opportunities and whistle-blowing or the prompt reporting of illegal or unethical behavior. We will provide a copy of the Code of Ethics to any person without charge, upon request. The request for a copy can be made in writing to GelTech Solutions, Inc., 1460 Park Lane South, Suite 1, Jupiter, Florida 33458, Attention: Mrs. Darlene Cordani.
Communication with our Board of Directors
Although we do not have a formal policy regarding communications with the Board, shareholders may communicate with the Board by writing to us at GelTech Solutions, Inc., 1460 Park Lane South, Suite 1, Jupiter, Florida 33458, Attention: Mrs. Darlene Cordani, or by facsimile (561) 427-6182. Shareholders who would like their submission directed to a member of the Board may so specify, and the communication will be forwarded, as appropriate.
Section 16(a) Beneficial Ownership Reporting Compliance
Section 16(a) of the Exchange Act requires our directors, executive officers, and persons who own more than 10% of our common stock to file initial reports of ownership and changes in ownership of our common stock and other equity securities with the SEC. These individuals are required by the regulations of the SEC to furnish us with copies of all Section 16(a) forms they file. Based solely on a review of the copies of the forms furnished to us, and written representations from some of the reporting persons that no Forms 5 were required to report delinquent filings, we believe that all filing requirements applicable to our officers, directors and 10% beneficial owners were complied with during fiscal year 2013.
4
Item 11. Executive Compensation.
The following information is related to the compensation paid, distributed or accrued by us for the last two fiscal years to our Chief Executive Officer (principal executive officer) and the two other most highly compensated executive officers serving at the end of the last fiscal year whose compensation exceeded $100,000, which we refer to as our Named Executive Officers.
Fiscal 2013 Summary Compensation Table
Name and Principal Position (a) |
| Year |
| Salary |
| Option |
| All Other |
| Total |
|
|
|
|
|
|
|
|
|
|
|
Michael Cordani |
| 2013 |
| 150,000 |
| 377,628 |
| 5,400 |
| 533,028 |
Chief Executive Officer |
| 2012 |
| 150,000 |
| 106,757 |
| 0 |
| 256,757 |
|
|
|
|
|
|
|
|
|
|
|
Michael Hull |
| 2013 |
| 150,000 |
| 377,628 |
| 5,400 |
| 533,028 |
Chief Financial Officer |
| 2012 |
| 137,666 |
| 148,335 |
| 0 |
| 286,001 |
|
|
|
|
|
|
|
|
|
|
|
Peter Cordani |
| 2013 |
| 150,000 |
| 377,628 |
| 5,400 |
| 533,028 |
President and Chief Technology Officer |
| 2012 |
| 150,000 |
| 106,757 |
| 0 |
| 256,757 |
(1)
The amounts in this column represents the fair value of the award as of the grant date as computed in accordance with FASB Accounting Standards Codification Topic 718. These amounts represent awards that are paid in options to purchase shares of our common stock or SARs and do not reflect the actual amounts that may be realized by the Named Executive Officers.
(2)
Fiscal 2013 includes the following equity grants to each of the Named Executive Officers: (i) 800,000 SARs which are described below and (ii) 125,000 stock options which vest in three equal increments on June 27, 2014, 2015 and 2016.
Named Executive Officer Employment Agreements
The chart below summarizes the terms and conditions of employment agreements with our Named Executive Officers.
Executive |
| Term |
| Base Salary |
| Equity Grants |
Michael Cordani |
| October 1, 2012 through September 30, 2016 |
| $150,000 per year with increases if performance milestones are met (1) |
| 800,000 stock appreciation rights (2) |
|
|
|
|
|
|
|
Michael Hull |
| October 1, 2012 through September 30, 2016 |
| $150,000 per year with increases if performance milestones are met (1) |
| 800,000 stock appreciation rights (2) |
|
|
|
|
|
|
|
Peter Cordani |
| October 1, 2012 through September 30, 2016 |
| $150,000 per year with increases if performance milestones are met (1) |
| 800,000 stock appreciation rights (2) |
(1)
Base salary will increase to: (i) $170,000 upon GelTech generating $3,000,000 in revenue in any 12-month period, (ii) $190,000 upon GelTech generating $5,000,000 in any 12-month period and (iii) $200,000 upon GelTech generating $6,000,000 in any 12-month period. The Committee has the discretion to increase each of the Named Executive Officers base salary. Any such discretionary increase must be based on profitability, positive cash flow or such other factors as the Committee deems important.
5
(2)
Of the securities: (i) 200,000 vested immediately, (ii) 200,000 vest upon GelTech generating $3,000,000 in revenue in any 12-month period, (iii) another 200,000 vest upon GelTech generating $5,000,000 in revenue in any 12-month period and (iv) another 200,000 vest upon GelTech generating $6,000,000 in revenue in any 12-month period. The SAR are exercisable at $0.45 per share over a 10-year period.
The Committee will have the discretion to award each of the Named Executive Officers a bonus based upon job performance or any other factors determined by the Committee. In October 2013, the Committee awarded Mr. Michael Cordani a $37,500 bonus.
Additionally, the Named Executive Officers also receive a $600 car allowance.
On June 4, 2013, we terminated Mr. Jerome Eisenberg, our then Executive Chairman, for cause. Mr. Eisenberg had a four year Employment Agreement with GelTech through September 30, 2016. Under that Employment Agreement, his annual salary was $200,000 and he received 800,000 restricted stock units. We filed suit to rescind the Employment Agreement and our Executive Committee has taken formal action to terminate the Restricted Stock Units and all of the options he received as a director. Prior to being terminated, Mr. Eisenberg was deferring $50,000 per year of salary in recognition of our cash position.
Termination Provisions
The table below describes the severance payments that our Named Executive Officers are entitled to in connection with a termination of their employment upon death, disability, dismissal without cause, or for Good Reason. All of the termination provisions are intended to comply with Section 409A of the Internal Revenue Code of 1986 and the Regulations thereunder.
|
| Michael Cordani |
| Michael Hull |
| Peter Cordani |
|
|
|
|
|
|
|
|
|
Death or Total Disability |
| One year base salary and all equity shall vest |
| One year base salary and all equity shall vest |
| One year base salary and all equity shall vest |
|
|
|
|
|
|
|
|
|
Dismissal Without Cause or Termination by Executive for Good Reason (1) |
| Greater of one year base salary and continuation of base salary through the end of the remaining four year term of the agreement and all equity shall vest |
| Greater of one year base salary and continuation of base salary through the end of the remaining four year term of the agreement and all equity shall vest |
| Greater of one year base salary and continuation of base salary through the end of the remaining four year term of the agreement and all equity shall vest |
|
(1)
Good Reason is generally defined as the material diminution of the Named Executive Officers duties due to no fault of the executive or any other action or inaction that constitutes a material breach by GelTech under the Employment Agreements.
Risk Assessment Regarding Compensation Policies and Practices as they Relate to Risk Management
Our compensation program for employees does not create incentives for excessive risk taking by our employees or involve risks that are reasonably likely to have a material adverse effect on us. Our compensation has the following risk-limiting characteristics:
●
Our base pay programs consist of competitive salary rates that represent a reasonable portion of total compensation and provide a reliable level of income on a regular basis, which decreases incentive on the part of our executives to take unnecessary or imprudent risks;
●
A portion of executive incentive compensation opportunity is tied to long-term incentive compensation that emphasizes sustained performance over time. This reduces any incentive to take risks that might increase short-term compensation at the expense of longer term company results;
●
Awards are not tied to formulas that could focus executives on specific short-term outcomes;
●
Equity awards may be recovered by us should a restatement of earnings occur upon which incentive compensation awards were based, or in the event of other wrongdoing by the recipient; and
6
●
Equity awards, generally, have multi-year vesting which aligns the long-term interests of our executives with those of our shareholders and, again, discourages the taking of short-term risk at the expense of long-term performance.
Outstanding Equity Awards
Listed below is information with respect to unexercised options, stock that has not vested and equity incentive awards for each Named Executive Officer as of June 30, 2013:
Outstanding Equity Awards At Fiscal Year-End
Name (a) |
| Number of Securities Underlying Unexercised Options (#) Exercisable (b) |
| Number of Securities Underlying Unexercised Options (#) Unexercisable (c) |
| Equity Incentive Plan Awards: Number of Securities Underlying Unexercised or Unearned Options (#) (d) |
| Option Exercise Price ($) (e) |
| Option Expiration Date (f) | |||
Michael Cordani |
| 150,000 | (1) |
| 0 |
|
| 0 |
|
| 0.667 |
| March 16, 2018 |
Chief Executive Officer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 650,000 |
|
| 100,000 | (2) |
| 0 |
|
| 1.22 |
| December 7, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 116,667 |
|
| 58,333 | (3) |
| 0 |
|
| 0.81 |
| September 20, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 50,000 |
|
| 0 |
|
| 100,000 | (4) |
| 0.74 |
| June 20, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 200,000 |
|
| 0 |
|
| 600,000 | (5) |
| 0.45 |
| October 1, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 0 |
|
| 125,000 | (6) |
| 0 |
|
| 1.10 |
| June 27, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Michael Hull |
| 116,666 |
|
| 33,334 | (3) |
| 0 |
|
| 0.81 |
| June, 30, 2021 |
Chief Financial Officer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 50,000 |
|
| 0 |
|
| 100,000 | (4) |
| 0.74 |
| June 20, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 200,000 |
|
| 0 |
|
| 600,000 | (5) |
| 0.45 |
| October 1, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 0 |
|
| 125,000 | (6) |
| 0 |
|
| 1.10 |
| June 27, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peter Cordani |
| 185,007 | (1) |
| 0 |
|
| 0 |
|
| 0.667 |
| March 16, 2018 |
Chief Technology Officer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 650,000 |
|
| 100,000 | (2) |
| 0 |
|
| 1.22 |
| December 7, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 116,667 |
|
| 58,333 | (3) |
| 0 |
|
| 0.81 |
| September 20, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 50,000 |
|
| 0 |
|
| 100,000 | (4) |
| 0.74 |
| June 20, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 200,000 |
|
| 0 |
|
| 600,000 | (5) |
| 0.45 |
| October 1, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 0 |
|
| 125,000 | (6) |
| 0 |
|
| 1.10 |
| June 27, 2023 |
(1)
Fully vested.
(2)
The unvested options vest on December 31, 2013.
7
(3)
The unvested options vest in equal increments on December 31, 2013 and June 30, 2014.
(4)
The unvested options vest based upon meeting certain performance milestones. As of June 30, 2013, one of the performance milestones was met. On July 17, 2013, the second of the three milestones was met.
(5)
Of the securities: (i) 200,000 vested immediately, (ii) 200,000 vest upon GelTech generating $3,000,000 in revenue in any 12-month period, (iii) another 200,000 vest upon GelTech generating $5,000,000 in revenue in any 12-month period and (iv) another 200,000 vest upon GelTech generating $6,000,000 in revenue in any 12-month period.
(6)
The unvested options vest in three equal increments on June 27, 2014, 2015 and 2016.
Director Compensation
We do not pay cash compensation to our directors for service on our Board and our employees do not receive compensation for serving as members of our Board. Directors are reimbursed for reasonable expenses incurred in attending meetings and carrying out duties as board and committee members. Under the Plan, our non-employee directors receive automatic grants of stock options as compensation for their services on our Board. Because we do not pay compensation to employee directors, Messrs. Michael Cordani, Joseph Ingarra, Jerome Eisenberg and Peter Cordani were not compensated for their service as directors in fiscal 2013 and are omitted from the following table. Messrs. Ingarra and Eisenberg are former employee directors.
Fiscal 2013 Director Compensation
Name (a) |
|
|
|
|
| Option Awards ($)(d) (1) |
|
|
| Total ($)(j) |
|
Michael Becker |
|
|
|
|
| 133,231 |
|
|
| 133,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Jerome Eisenberg (2) |
|
|
|
|
| 36,069 |
|
|
| 36,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Leonard Mass |
|
|
|
|
| 131,871 |
|
|
| 131,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Phil OConnell, Jr. |
|
|
|
|
| 135,150 |
|
|
| 135,150 |
|
(1)
This represents the fair value of the award as of the grant date in accordance with FASB ASC Topic 718. These amounts represent awards that are paid in shares of common stock or options to purchase shares of our common stock and do not reflect the actual amounts that may be realized by the directors.
(2)
Does not include 800,000 restricted stock units granted to Mr. Eisenberg in connection with his employment agreement. All of the equity granted to Mr. Eisenberg were cancelled. See page 6.
8
Director Equity Awards
The following chart reflects the number of stock options we have awarded our current non-employee directors from the last two completed fiscal years (ended June 30, 2012 and 2013).
Name |
| Number of Options |
|
| Exercise Price per Share ($) |
| Expiration Date |
|
|
|
|
|
|
|
|
Michael Becker (1) |
| 35,000 |
|
| 0.56 |
| January 3, 2022 |
Michael Becker (2) |
| 55,000 |
|
| 0.91 |
| July 1, 2022 |
Michael Becker (1) |
| 5,000 |
|
| 0.36 |
| December 6, 2022 |
Michael Becker (3) |
| 125,000 |
|
| 0.99 |
| March 11, 2023 |
|
|
|
|
|
|
|
|
Leonard Mass (2) |
| 60,000 |
|
| 1.75 |
| July 1, 2021 |
Leonard Mass (2) |
| 60,000 |
|
| 0.91 |
| July 1, 2022 |
Leonard Mass (3) |
| 125,000 |
|
| 0.99 |
| March 11, 2023 |
|
|
|
|
|
|
|
|
Phil OConnell (2) |
| 60,000 |
|
| 1.75 |
| July 1, 2021 |
Phil OConnell (2) |
| 60,000 |
|
| 0.91 |
| July 1, 2022 |
Phil OConnell (3) |
| 125,000 |
|
| 0.99 |
| March 11, 2023 |
(1)
Automatic grant under the Plan in connection with the directors appointment as a director or a committee member.
(2)
Automatic annual grant under the Plan for service on the Board.
(3)
Vests in three equal increments on March 11, 2014, 2015 and 2016, subject to continued service as a director on each applicable vesting date.
On September 21, 2012, Phil OConnell was granted 350,000 five-year warrants exercisable at $0.63 per share.
On July 28, 2013, Mr. OConnell was granted 50,000 fully-vested ten year options exercisable at $1.30 per share. On September 17, 2013, Mr. Leonard Mass was granted 15,000 fully-vested ten year options exercisable at $1.01 per share.
9
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
The following table sets forth the number of shares of our common stock beneficially owned as of October 24, 2013 by (i) those persons known by us to be owners of more than 5% of our common stock, (ii) each director, (iii) our named executive officers and (iv) all of our executive officers and directors of as a group. Unless otherwise specified in the notes to this table, the address for each person is: c/o GelTech Solutions, Inc., 1460 Park Lane South, Suite 1, Jupiter, Florida 33458.
Title of Class |
| Name and Address of Beneficial Owner |
| Amount and Nature of Beneficial Ownership (1) |
|
| Percent of Class (1) | |||
Directors and Named Executive Officers: |
|
|
|
|
|
|
|
| ||
Common Stock |
| Michael Cordani (2) |
|
| 1,629,888 |
|
|
| 4.5 | % |
Common Stock |
| Michael Hull (3) |
|
| 314,833 |
|
|
| * |
|
Common Stock |
| Peter Cordani (4) |
|
| 2,055,011 |
|
|
| 5.7 | % |
Common Stock |
| Michael Becker (5) |
|
| 68,333 |
|
|
| * |
|
Common Stock |
| Leonard Mass (6) |
|
| 327,071 |
|
|
| * |
|
Common Stock |
| Phil OConnell, Jr. (7) |
|
| 1,759,898 |
|
|
| 4.9 | % |
Common Stock |
| Neil Reger (8) |
|
| 1,411,772 |
|
|
| 4.0 | % |
Common Stock |
| All directors and executive officers as a group (8 persons) (9) |
|
| 25,842,646 |
|
|
| 55.4 | % |
|
|
|
|
|
|
|
|
|
|
|
5% Shareholder: |
|
|
|
|
|
|
|
|
|
|
Common Stock |
| Michael Reger (10) |
|
| 18,275,840 |
|
|
| 42.8 | % |
* Less than 1%.
(1)
Applicable percentages are based on 35,075,583 shares outstanding as of October 24, 2013, adjusted as required by rules of the SEC. Beneficial ownership is determined under the rules of the SEC and generally includes voting or investment power with respect to securities. Shares of common stock underlying options, SARs and warrants and convertible notes currently exercisable or convertible, or exercisable or convertible within 60 days are deemed outstanding for computing the percentage of the person holding such securities but are not deemed outstanding for computing the percentage of any other person. Unless otherwise indicated in the footnotes to this table, GelTech believes that each of the shareholders named in the table has sole voting and investment power with respect to the shares of common stock indicated as beneficially owned by them. The table includes only vested options, SARs and warrants or options and warrants that will vest and become exercisable within 60 days.
(2)
Michael Cordani: Mr. Cordani is Chairman of the Board and Chief Executive Officer. Shares are held with Mr. Cordanis wife as tenants by the entirety. Includes 1,017,667 shares of common stock issuable upon exercise of vested options. Also includes 15,000 shares of common stock held by an adult child of Mr. Cordani. Mr. Cordani disclaims beneficial ownership of these securities and this disclosure shall not be deemed an admission that he is the beneficial owner of either the securities held in the trust or shares held by his children.
As of October 21, 2013, GelTechs common stock price was $1.10. Because the 200,000 vested SARs (which may not be exercised with cash) held by Mr. Cordani have an exercise price of $0.45, the table above includes 130,000 shares of common stock underlying the SARs (200,000 multiplied by (the closing stock price minus the exercise price)).
(3)
Hull: Mr. Hull is the Chief Financial Officer. Includes 183,333 shares issuable upon the exercise of vested options.
As of October 21, 2013, GelTechs common stock price was $1.10. Because the 200,000 vested SARs (which may not be exercised with cash) held by Mr. Hull have an exercise price of $0.45, the table above includes 130,000 shares of common stock underlying the SARs (200,000 multiplied by (the closing stock price minus the exercise price)).
(4)
Peter Cordani: Mr. Peter Cordani is a director, President and Chief Technology Officer. Includes shares held by North Carolina River Ridge II LLC, a company managed by Mr. Peter Cordani. It owns 651,987 shares of common stock. Thus, under SEC rules, Mr. Peter Cordani is considered the beneficial owner as explained in Note (1). Also includes 1,001,675 shares issuable upon the exercise of vested options. Mr. Cordani is the trustee of three trusts which own 271,349 shares of GelTech.
10
As of October 21, 2013, GelTechs common stock price was $1.10. Because the 200,000 vested SARs (which may not be exercised with cash) held by Mr. Cordani have an exercise price of $0.45, the table above includes 130,000 shares of common stock underlying the SARs (200,000 multiplied by (the closing stock price minus the exercise price)).
(5)
Becker: Mr. Becker is a director. Includes 36,667 shares issuable upon the exercise of vested options.
(6)
Mass: Mr. Mass is a director. Includes 263,333 shares issuable upon the exercise of vested options.
(7)
OConnell: Mr. OConnell is a director. Includes 350,000 shares issuable upon the exercise of warrants and 345,000 shares issuable upon the exercise of vested options. Also includes: (i) 95,241 shares jointly held by Mr. OConnell and his wife, (ii) 915,407 shares held by the Phil D. OConnell, Jr. Revocable Trust, of which Mr. OConnell is the trustee, (iii) 23,750 shares held by Mr. OConnells wife and (iv) 40,500 shares held in trusts for Mr. OConnells children, of which Mr. OConnell is the trustee. Mr. OConnell disclaims beneficial ownership of the securities held by his wife and this disclosure shall not be deemed an admission that he is the beneficial owner of the securities held by his wife.
(8)
Neil Reger: Mr. Reger is a director. Includes: (i) 542,307 shares of common stock and 200,000 shares issuable upon the exercise of warrants directly held by Mr. Reger and (ii) 469,465 shares of common stock and 200,000 shares issuable upon exercise of warrants held by Mr. Regers wife.
(9)
Total D&O: Includes securities beneficially owned by Michael Reger, our Chief Operating Officer.
(10)
Reger: These shares all also included in the All directors and executive officers as a group beneficial ownership amount. See Note 9 above. Includes 434,681 shares of common stock held in a grantor retained annuity trust of which Mr. Reger is the trustee. Also includes 6,707,094 shares issuable upon the conversion of convertible notes and 912,500 shares issuable upon the exercise of warrants. Address is 777 Yamato Road, Suite 300, Boca Raton, Florida 33431.
Equity Compensation Plan Information Table
The following chart reflects the number of securities granted and the weighted average exercise price for our compensation plans as of June 30, 2013.
Name Of Plan |
| Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) |
|
| Weighted-average exercise price of outstanding options, warrants and rights (b) |
|
| Number of securities remaining available for future issuance under compensation plans (excluding securities reflected in column (a)) (c) |
|
Equity compensation plans approved by security holders |
| - 0 - |
|
|
|
|
| N/A |
|
|
|
|
|
|
|
|
|
|
|
Equity compensation plans not approved by security holders (1)(2) |
| 8,097,840 |
|
| $0.83 |
|
| 6,902,160 |
|
(1) Includes options, SARs and shares of common stock issued under the Plan.
(2) Includes 6,760,840 stock options and SARs issued to directors and executive officers.
Equity Compensation Plan Information
In March 2007, we established the Plan. Initially, we were authorized to issue up to 1,500,000 stock rights. In September 2008, our Board increased the Plan by adding an additional 2,000,000 stock rights. In June 2012, our Board increased the Plan to 4,500,000 stock rights. In June 2013, our Board increased the Plan to 15,000,000 stock rights. As of October 21, 2013, there were 5,127,160 stock rights available for issuance under the Plan.
11
Administration
The Plan is administered by our Board delegated by the Board, or by our Committee, which collectively we refer to as the Administrator. The Board may delegate these the powers to grant stock rights to officers of GelTech to the extent permitted by law.
Eligibility
Awards granted under the Plan may be restricted stock, restricted stock units, options and SARs which are awarded to employees, consultants, officers, directors and director advisors, who, in the opinion of the Administrator, have contributed, or are expected to contribute, materially to our success. In addition, incentive stock options (ISOs) as defined in the Internal Revenue Code of 1986 (the Code), may be granted to individuals who are officers or other employees and contribute to our success. The identification of individuals entitled to receive awards, the terms of the awards, and the number of shares subject to individual awards, are determined by the Administrator, in its sole discretion.
Automatic Grants
Under the Plan, all of our directors who are not employees or 10% shareholders and all director advisors automatically receive an initial and annual grant of stock options with the number of shares based upon the closing price on the day before grant. This automatic grant was placed in the Plan to provide a mechanism for compensating our directors and avoid any appearance of impropriety each time compensation is awarded.
Initial Grants |
| Annual Grants | ||
Chairman of the Board | 50,000 options |
| Chairman of the Board | 70,000 options |
Director | 30,000 options |
| Director | 100,000 options |
Chair of a Committee | 10,000 options |
| Chair of a Committee | 20,000 options |
Member of a Committee | 5,000 options |
| Member of a Committee | 10,000 options |
The initial grants vest over a three-year period each 12 months following the date of grant, subject to service with GelTech in the capacity in which the grant was received on each applicable vesting date. The annual grants vest on June 30th of the following year, subject to service with GelTech in the capacity in which the grant was received. The automatic grants have an exercise period of 10 years.
New Plan Benefits
Because future grants of awards under the Plan are subject to the discretion of the Board and the Committee, the future awards that may be granted to participants cannot be determined at this time.
Item 13. Certain Relationships and Related Transactions, and Director Independence.
In addition to Michael and Peter Cordani, the following related parties are employed at GelTech:
●
Michael Cordani’s wife as a bookkeeper at $1,200 per week,
●
Michael and Peter Cordani’s father is employed as a researcher at $2,123 per week, and
●
Michael and Peter Cordani’s mother as a receptionist at $600 per week.
We believe all of these salaries are at or are below the going rate of what such services would cost on the open market.
Mr. Michael Reger, son of Neil Reger, a director, is employed as Chief Operating Officer. To date, Mr. Reger has been paid no compensation for his employment with GelTech.
12
From August 2008 through May 2009, GelTech and Mr. Michael Reger, GelTechs principal shareholder (and now its Chief Operating Officer), entered into a number of transactions relating to Michael Reger lending GelTech money under a revolving line of credit. On February 18, 2011, GelTech and Michael Reger renegotiated their line of credit and reduced the principal on the line of credit by $1 million. Michael Reger agreed to accept 892,857 shares of GelTechs common stock in consideration for cancelling $1 million of the $2,497,483 line of credit, which was due in May 2011. The remaining $1,497,483 owed under the line of credit was converted into a five-year note which was convertible at $1.12 per share bearing 5% interest per year, or the 2011 Note. In connection with the loan cancellation, GelTech issued Michael Reger 1,000,000 five-year warrants exercisable at $1.25 per share and 300,000 five-year warrants exercisable at $1.75 per share.
On March 29, 2012, Michael Reger was issued a $332,996 six-month convertible note, or the March 2012 Note. The March 2012 Note was issued in consideration for Michael Reger lending GelTech $250,000 as a new investment and $74,874, which was the interest owed as of February 18, 2012 on the 2011 Note. The March 2012 Note was an original issue discount note with interest of 5% per annum convertible into GelTechs common stock at $0.50 per share. On September 28, 2012, Michael Reger converted the March 2012 Note. Additionally, in connection with GelTechs offer of a reduced exercise price to all outstanding warrant holders who exercised as of a certain date. Mr. Michael Reger exercised all of his warrants at $0.50 per share. In December 2012, Michael Reger lent GelTech $250,000 and was issued a $275,000 one-year 10% original issue discount note convertible at $0.35 per share, or the December 2012 Note.
On February 1, 2013, Michael Reger lent GelTech $250,000. In connection with this loan, GelTech consolidated all of the outstanding notes held by Michael Reger and issued him a $1,997,483 note convertible at $0.35 per share due December 31, 2016, or the 2013 Note. Michael Reger cancelled the 2011 Note and the December 2012 Note. The 2013 Note bears an annual interest rate of 7.5% with interest to be paid annually in cash or common stock at $0.35 per share at Michael Regers option. Also on February 1, 2013, GelTech issued Michael Reger 210,226 shares of common stock in lieu of a cash payment for $73,579 of interest owed under the 2011 Note and the December 2012 Note.
Jerome Eisenberg, a former director and Executive Chairman, is an officer of TFISA a company that was specifically formed to distribute FireIce® and SkinArmor.TFSIA and GelTech entered into an agreement in July 2009, prior to Mr. Eisenberg becoming a director. For the term of the Agreement, TFISA had exclusive rights to distribute:
●
FireIce® to governmental agencies worldwide including the U.S. excluding (i) any municipal, state owned or volunteer fire-fighting company or any state fire-fighting instrumentality in the U.S. and (ii) sales of FireIce® Products to the Forest Service.
●
SkinArmor™ worldwide; and
●
Eductors to apply FireIce® together with FireIce® Truck to all of Europe and various other countries throughout the world.
As of the filing date of this 10-K/A, no sales have been made by TFISA. Furthermore, TFISA has not purchased any products from GelTech. In March 2013, GelTech gave TFSIA 180 days notice to terminate the Agreement subject to GelTechs rights under the Agreement. TFSIA's counsel has notified GelTech that it will sue for damages. GelTech's position is that there is no liability and there are no damages since TFSIA never generated any sales over four years as an exclusive sales agent.
On December 20, 2011, Michael Cordani, our Chief Executive Officer and a director, and Joe Ingarra, our former President and director lent GelTech $10,000 and $29,380, respectively. In connection with these loans, GelTech issued Messrs. Cordani and Ingarra promissory notes payable on demand. We have repaid all of these loans.
On December 21, 2011, Michael Hull, our Chief Financial Officer, lent GelTech $50,000 and was issued a 60-day promissory note. In connection with the loan, GelTech re-priced 150,000 of Mr. Hulls options from $1.95 to $0.60. GelTech has repaid this note. Additionally, on December 21, 2011, GelTech issued 441,177 shares of common stock to Phil OConnell, a director of GelTech, in exchange for exercising warrants and as settlement of an outstanding claim for loans (totaling approximately $304,000) made by the director to GelTechs predecessor.
13
On March 9, 2012, Mr. Eisenberg lent GelTech $75,000 and was issued a $76,875 six month original issue discount note with an effective annual interest rate of 5%. The note is convertible into GelTechs common stock $0.50 per share. In September 2012, Mr. Eisenberg exchanged his note for a one year convertible original issue discount note in the amount of $86,100 convertible at $0.50 per share. In September 2013, GelTech pre-paid Mr. Eisenbergs note.
In connection with Mr. Ingarras resignation, GelTech agreed to pay Mr. Ingarra 12 months of severance at the same rate as his current base salary, or $150,000 (plus COBRA reimbursement) payable in accordance with GelTechs standard payroll practices with the first 10 months paid each month and the last four months paid once a month (in one-half of the monthly rate installments). The severance was in lieu of the approximately 45 months due under his Employment Agreement under certain circumstances. Additionally, GelTech granted Mr. Ingarra 112,500 fully-vested stock options exercisable at $0.39 per share, subject to a lockup agreement for the option shares and the other shares he currently owns. All other stock options and stock appreciation rights, or SARs, previously granted to Mr. Ingarra have been cancelled.
In February 2013, GelTech sold 482,758 shares of common stock and received $280,000 from Michael Cordani, our Chief Executive Officer and Peter Cordani, our President and Chief Technology Officer. Additionally, Michael Reger purchased 1,285,714 shares of common stock for $450,000. In June 2013, GelTech sold 250,000 shares of common stock and 125,000 warrants exercisable at $1.25 per share and received $200,000 from Michael Reger. In July 2013, Michael Reger lent GelTech $1,000,000. In connection with this loan, GelTech issued Michael Reger a $1,000,000 note convertible at $1.00 per share due July 11, 2018 and 500,000 five-year warrants exercisable at a $1.30 per share. The note bears an annual interest rate of 7.5%. In October 2013, Michael Reger purchased 200,000 shares of common stock and 100,000 five-year warrants exercisable at $1.00 per share for $150,000. Also in October 2013, Mr. Neil Reger, a director, and his wife each purchased 200,000 shares of common stock and 100,000 five-year warrants exercisable at $1.00 per share for $150,000.
Item 14. Principal Accountants Fees and Services.
All of the services provided and fees charged by Salberg & Company, P.A., or Salberg, were approved by our Audit Committee. The following table shows the fees paid to Salberg, our principal accountant for the fiscal years ended June 30, 2013 and 2012.
|
| Fiscal 2013 ($) |
| Fiscal 2012 ($) | ||
|
|
| ||||
Audit Fees (1) |
|
| 70,400 |
|
| 70,000 |
Audit Related Fees (2) |
|
| 7,600 |
|
| 5,500 |
Tax Fees |
|
| 0 |
|
| 0 |
All Other Fees |
|
| 0 |
|
| 0 |
Total |
|
| 78,000 |
|
| 75,500 |
(1)
Audit fees these fees relate to the audit of our annual financial statements and the review of our interim quarterly financial statements.
(2)
Audit related fees these fees relate primarily to the auditors review of our registration statements and audit related consulting.
Audit Committees Pre-Approval Policy
The Audit Committee pre-approves all audit and permissible non-audit services on a case-by-case basis. In its review of non-audit services, the Audit Committee considers whether the engagement could compromise the independence of our independent registered public accounting firm, and whether the reasons of efficiency or convenience is in our best interest to engage our independent registered public accounting firm to perform the services.
14
PART IV
Item 15. Exhibits, Financial Statement Schedules.
(1) | Financial Statements.
|
(2) | Financial Statements Schedules. All schedules are omitted because they are not applicable or because the required information is contained in the Consolidated Financial Statements or notes included herein.
|
(3) | Exhibits. |
EXHIBIT INDEX
Exhibit |
|
|
| Incorporated by Reference |
| Filed or | ||||
No. |
| Exhibit Description |
| Form |
| Date |
| Number |
| Herewith |
|
|
|
|
|
|
|
|
|
|
|
3.1 |
| Certificate of Incorporation |
| Sb-2 |
| 7/20/07 |
| 3.1 |
|
|
3.2 |
| Amended and Restated Bylaws |
| Sb-2 |
| 7/20/07 |
| 3.2 |
|
|
3.3 |
| Amendment No. 1 to the Amended and Restated Bylaws |
| 10-K |
| 9/28/10 |
| 3.3 |
|
|
3.4 |
| Amendment No. 2 to the Amended and Restated Bylaws |
| 8-K |
| 9/26/11 |
| 3.1 |
|
|
| 2007 Equity Incentive Plan, As Amended |
|
|
|
|
|
|
| Filed | |
10.2 |
| Form of Executive Employment Agreement * |
| 10-Q |
| 2/11/13 |
| 10.4 |
|
|
10.3 |
| Jerome Eisenberg Employment Agreement* |
| 10-Q |
| 2/11/13 |
| 10.5 |
|
|
10.4 |
| Form of Stock Appreciation Rights Agreement* |
| 10-Q |
| 2/11/13 |
| 10.7 |
|
|
10.5 |
| Jerome Eisenberg Restricted Stock Unit Agreement* |
| 10-Q |
| 2/11/13 |
| 10.6 |
|
|
10.6 |
| Credit Enhancement and Financing Security Agreement dated May 29, 2009 |
| 10-K |
| 9/28/09 |
| 10.1 |
|
|
10.7 |
| Revolving Line of Credit Agreement dated May 29, 2009 |
| 10-K |
| 9/28/09 |
| 10.2 |
|
|
10.8 |
| Renewal of Promissory Note dated May 20, 2010 |
| 10-K |
| 9/28/10 |
| 10.7 |
|
|
10.9 |
| Credit Enhancement and Financing Security Agreement dated May 20, 2010 |
| 10-K |
| 9/28/10 |
| 10.8 |
|
|
10.10 |
| Modification of Revolving Line of Credit Agreement dated May 20, 2010 |
| 10-K |
| 9/28/10 |
| 10.9 |
|
|
10.11 |
| Reger Note dated February 18, 2011 |
| 10-Q |
| 5/13/11 |
| 10.11 |
|
|
10.12 |
| Reger Stock Purchase Agreement dated February 18, 2011 |
| 10-K |
| 9/28/11 |
| 10.15 |
|
|
10.13 |
| Reger Note dated March 29, 2012 |
| 10-K |
| 9/28/12 |
| 10.12 |
|
|
10.14 |
| Reger Note dated December 27, 2012 |
| 10-Q |
| 2/11/13 |
| 10.2 |
|
|
10.15 |
| Reger Note dated February 1, 2013 |
| 10-Q |
| 2/11/13 |
| 10.3 |
|
|
10.16 |
| Reger Stock Purchase Agreement dated May 2, 2013 |
| 10-K |
| 9/27/13 |
| 10.16 |
|
|
10.17 |
| Reger Warrant dated May 2, 2013 |
| 10-K |
| 9/27/13 |
| 10.17 |
|
|
10.18 |
| Reger Warrant dated May 31, 2013 |
| 10-K |
| 9/27/13 |
| 10.18 |
|
|
10.19 |
| Reger Convertible Note dated July 11, 2013 |
| S-1A |
| 8/5/13 |
| 10.30 |
|
|
10.20 |
| Reger Warrant dated July 11, 2013 |
| 10-K |
| 9/27/13 |
| 10.20 |
|
|
10.21 |
| Lincoln Park Purchase Agreement dated September 1, 2010 |
| 8-K |
| 9/7/10 |
| 10.1 |
|
|
10.22 |
| Lincoln Park Registration Rights Agreement dated September 1, 2010 |
| 8-K |
| 9/7/10 |
| 10.2 |
|
|
10.23 |
| Lincoln Park Warrant dated September 1, 2010 |
| 8-K |
| 9/7/10 |
| 10.3 |
|
|
10.24 |
| Lincoln Park Purchase Agreement dated January 4, 2012 |
| 8-K |
| 1/6/12 |
| 10.1 |
|
|
15
10.25 |
| Lincoln Park Registration Rights Agreement dated January 4, 2012 |
| 8-K |
| 1/6/12 |
| 10.2 |
|
|
10.26 |
| Lincoln Park Termination Agreement dated January 3, 2012 |
| 8-K |
| 1/6/12 |
| 10.3 |
|
|
10.27 |
| Hull Promissory Note |
| S-1 |
| 1/6/12 |
| 10.21 |
|
|
10.28 |
| TFISA Distribution Agreement** |
| 10-Q |
| 2/14/12 |
| 10.2 |
|
|
10.29 |
| Amendment No.1 to the TFISA Distribution Agreement** |
| 10-Q |
| 2/14/12 |
| 10.3 |
|
|
10.30 |
| Eisenberg Promissory Note |
| S-1/A |
| 3/13/12 |
| 10.24 |
|
|
10.31 |
| Form of Convertible Note Private Placement |
| 10-Q |
| 5/11/12 |
| 10.1 |
|
|
10.32 |
| Ingarra Termination and Release Agreement |
| 10-Q |
| 5/13/13 |
| 10.4 |
|
|
14.1 |
| Code of Ethics |
| 10-K |
| 9/29/08 |
| 14.1 |
|
|
21.1 |
| List of Subsidiaries |
| 10-K |
| 9/28/12 |
| 21.1 |
|
|
23.1 |
| Consent of Salberg & Company, P.A. |
| 10-K |
| 9/27/13 |
| 23.1 |
|
|
| Certification of Principal Executive Officer (Section 302) |
|
|
|
|
|
|
| Filed | |
| Certification of Principal Financial Officer (Section 302) |
|
|
|
|
|
|
| Filed | |
101 INS |
| XBRL Instance Document |
| 10-K |
| 9/27/13 |
| 101*** |
|
|
101 SCH |
| XBRL Taxonomy Extension Schema |
| 10-K |
| 9/27/13 |
| 101*** |
|
|
101 CAL |
| XBRL Taxonomy Extension Calculation Linkbase |
| 10-K |
| 9/27/13 |
| 101*** |
|
|
101 LAB |
| XBRL Taxonomy Extension Label Linkbase |
| 10-K |
| 9/27/13 |
| 101*** |
|
|
101 PRE |
| XBRL Taxonomy Extension Presentation Linkbase |
| 10-K |
| 9/27/13 |
| 101*** |
|
|
101 DEF |
| XBRL Taxonomy Extension Definition Linkbase |
| 10-K |
| 9/27/13 |
| 101*** |
|
|
*
Management compensatory agreement.
**
Filed pursuant to a confidential treatment request. Portions of the exhibit have been omitted pursuant to the request for confidential treatment.
***
Exhibit 101 to the Annual Report on Form 10-K filed on September 27, 2013 are the Companys financial statements for the fiscal year ended June 30, 2013 formatted in XBRL (eXtensible Business Reporting Language). The XBRL-related information in Exhibit 101 to this report shall not be deemed filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act, and is not filed for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of those sections.
Copies of this filing (including the financial statements) and any of the exhibits referred to above will be furnished at no cost to our shareholders who make a written request to GelTech Solutions, Inc., 1460 Park Lane South, Suite 1 Jupiter, Florida 33458, Attention: Corporate Secretary.
16
In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date October 25, 2013
| GelTech Solutions, Inc. | |
|
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|
| By: | /s/ PETER CORDANI |
|
| Peter Cordani President (Principal Executive Officer) |
In accordance with the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
Signatures |
| Title |
| Date |
|
|
|
|
|
/s/ MICHAEL HULL |
| Chief Financial Officer (Principal Financial Officer and Chief Accounting Officer) |
| October 25, 2013 |
Michael Hull |
|
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| |
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|
|
|
|
| Director |
|
|
Michael Cordani |
|
|
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|
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|
|
|
/s/ PETER CORDANI |
| Director |
| October 25, 2013 |
Peter Cordani |
|
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|
|
/s/ MICHAEL BECKER |
| Director |
| October 25, 2013 |
Michael Becker |
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/s/ LEONARD MASS |
| Director |
| October 25, 2013 |
Leonard Mass |
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/s/ PHIL OCONNELL, JR. |
| Director |
| October 25, 2013 |
Phil OConnell, Jr. |
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|
/s/ NEIL REGER |
| Director |
| October 25, 2013 |
Neil Reger |
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|
17
EXHIBIT 10.1
GELTECH SOLUTIONS, INC.
2007 EQUITY INCENTIVE PLAN, AS AMENDED
1.
Scope of Plan; Definitions.
(a)
This 2007 Equity Incentive Plan (the Plan) is intended to advance the interests of GelTech Solutions, Inc. (the Company) and its Related Corporations by enhancing the ability of the Company to attract and retain qualified employees, consultants, Officers, directors and Director Advisors, by creating incentives and rewards for their contributions to the success of the Company and its Related Corporations. This Plan will provide to (a) Officers and other employees of the Company and its Related Corporations opportunities to purchase common stock (Common Stock) of the Company pursuant to Options granted hereunder which qualify as incentive stock options (ISOs) under Section 422(b) of the Internal Revenue Code of 1986 (the Code), (b) directors, Director Advisors, Officers, employees and consultants of the Company and Related Corporations opportunities to purchase Common Stock in the Company pursuant to options granted hereunder which do not qualify as ISOs (Non-Qualified Options); (c) directors, Director Advisors, Officers, employees and consultants of the Company and Related Corporations opportunities to receive shares of Common Stock of the Company which normally are subject to restrictions on sale (Restricted Stock); (d) directors, Director Advisors, Officers, employees and consultants of the Company and Related Corporations opportunities to receive grants of stock appreciation rights (SARs); and (e) directors, Director Advisors, Officers, employees and consultants of the Company and Related Corporations opportunities to receive grants of restricted stock units (RSUs). ISOs, Non-Discretionary Options and Non-Qualified Options are referred to hereafter as Options. Options, Restricted Stock, RSUs and SARs are sometimes referred to hereafter collectively as Stock Rights. Any of the Options and/or Stock Rights may in the Compensation Committees discretion be issued in tandem to one or more other Options and/or Stock Rights to the extent permitted by law.
This Plan is intended to comply in all respects with Rule 16b-3 (Rule 16b-3) and its successor rules as promulgated under Section 16(b) of the Securities Exchange Act of 1934 (the Exchange Act) for participants who are subject to Section 16 of the Exchange Act. To the extent any provision of the Plan or action by the Plan administrators fails to so comply, it shall be deemed null and void to the extent permitted by law and deemed advisable by the Plan administrators. Provided, however, such exercise of discretion by the Plan administrators shall not interfere with the contract rights of any grantee. In the event that any interpretation or construction of the Plan is required, it shall be interpreted and construed in order to ensure, to the maximum extent permissible by law, that such grantee does not violate the short-swing profit provisions of Section 16(b) of the Exchange Act and that any exemption available under Rule 16b-3 or other rule is available.
(b)
For purposes of the Plan, capitalized words and terms shall have the following meaning:
Advisory Board means a board composed of individuals, appointed by the Board, who serve the Companys Board in an advisory capacity but are not directors, Officers or employees of the Company.
Board means the board of directors of the Company.
Bulletin Board shall mean the Over-the-Counter Bulletin Board.
Chairman means the chairman of the Board.
Change of Control means the occurrence of any of the following events: (i) the consummation of the sale or disposition by the Company of all or substantially all of the Companys assets in a transaction which requires shareholder approval under applicable state law; or (ii) the consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least 50% of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.
Code shall have the meaning given to it in Section 1(a).
Common Stock shall have the meaning given to it in Section 1(a).
Company shall have the meaning given to it in Section 1(a).
Compensation Committee means the compensation committee of the Board, if any, which shall consist of two or more members of the Board, each of whom shall be both an outside director within the meaning of Section 162(m) of the Code and a non-employee director within the meaning of Rule 16b-3. All references in this Plan to the Compensation Committee shall mean the Board when (i) there is no Compensation Committee or (ii) the Board has retained the power to administer this Plan.
Director Advisor means a member of the Advisory Board.
Disability means permanent and total disability as defined in Section 22(e)(3) of the Code or successor statute.
Disqualifying Disposition means any disposition (including any sale) of Common Stock underlying an ISO before the later of (i) two years after the date of employee was granted the ISO or (ii) one year after the date the employee acquired Common Stock by exercising the ISO.
Exchange Act shall have the meaning given to it in Section 1(a).
2
Fair Market Value shall be determined as of the last Trading Day before the date a Stock Right is granted and shall mean:
(1)
the closing price on the principal market if the Common Stock is listed on a national securities exchange or the Bulletin Board.
(2)
if the Companys shares are not listed on a national securities exchange or the Bulletin Board, then the closing price if reported or the average bid and asked price for the Companys shares as published by Pink Sheets LLC;
(3)
if there are no prices available under clauses (1) or (2), then Fair Market Value shall be based upon the average closing bid and asked price as determined following a polling of all dealers making a market in the Companys Common Stock; or
(4)
if there is no regularly established trading market for the Companys Common Stock, the Fair Market Value shall be established by the Board or the Compensation Committee taking into consideration all relevant factors including the most recent price at which the Companys Common Stock was sold.
ISO shall have the meaning given to it in Section 1(a).
Non-Discretionary Options shall have the meaning given to it in Section 1(a).
Non-Qualified Options shall have the meaning given to it in Section 1(a).
Officers means a person who is an executive officer of the Company and is required to file ownership reports under Section 16(a) of the Exchange Act.
Options shall have the meaning given to it in Section 1(a).
Plan shall have the meaning given to it in Section 1(a).
Qualifying Committee means the Companys audit committee, Compensation Committee, finance committee or any other committee of the Board that the compensation committee shall determine entitles its members to a grant of Stock Rights, as defined, under Section 3(b)(ii) (each such Committee, a Qualifying Committee).
Related Corporations shall mean a corporation which is a subsidiary corporation with respect to the Company within the meaning of Section 425(f) of the Code.
Restricted Stock shall have the meaning contained in Section 1(a).
RSU shall have the meaning given to it in Section 1(a).
Rule 16b-3 shall have the meaning given to it in Section 1(a).
3
SAR shall have the meaning given to it in Section 1(a).
Securities Act means the Securities Act of 1933.
Stock Rights shall have the meaning given to it in Section 1(a).
Trading Day shall mean a day on which the New York Stock Exchange is open for business
2.
Administration of the Plan.
(a)
The Plan may be administered by the entire Board or by the Compensation Committee. Once appointed, the Compensation Committee shall continue to serve until otherwise directed by the Board. A majority of the members of the Compensation Committee shall constitute a quorum, and all determinations of the Compensation Committee shall be made by the majority of its members present at a meeting. Any determination of the Compensation Committee under the Plan may be made without notice or meeting of the Compensation Committee by a writing signed by all of the Compensation Committee members. Subject to ratification of the grant of each Stock Right by the Board (but only if so required by applicable state law), and subject to the terms of the Plan, the Compensation Committee shall have the authority to (i) determine the employees of the Company and Related Corporations (from among the class of employees eligible under Section 3 to receive ISOs) to whom ISOs may be granted, and to determine (from among the class of individuals and entities eligible under Section 3 to receive Non-Qualified Options, Restricted Stock, RSUs and SARs) to whom Non-Qualified Options, Restricted Stock, RSUs and SARs may be granted; (ii) determine when Stock Rights may be granted; (iii) determine the exercise prices of Stock Rights other than Restricted Stock and RSUs, which shall not be less than the Fair Market Value; (iv) determine whether each Option granted shall be an ISO or a Non-Qualified Option; (v) determine when Stock Rights shall become exercisable, the duration of the exercise period and when each Stock Right shall vest; (vi) determine whether restrictions such as repurchase options are to be imposed on shares subject to or issued in connection with Stock Rights, and the nature of such restrictions, if any, and (vii) interpret the Plan and promulgate and rescind rules and regulations relating to it. The interpretation and construction by the Compensation Committee of any provisions of the Plan or of any Stock Right granted under it shall be final, binding and conclusive unless otherwise determined by the Board. The Compensation Committee may from time to time adopt such rules and regulations for carrying out the Plan as it may deem best.
No members of the Compensation Committee or the Board shall be liable for any action or determination made in good faith with respect to the Plan or any Stock Right granted under it. No member of the Compensation Committee or the Board shall be liable for any act or omission of any other member of the Compensation Committee or the Board or for any act or omission on his own part, including but not limited to the exercise of any power and discretion given to him under the Plan, except those resulting from his own gross negligence or willful misconduct.
4
(b)
The Compensation Committee may select one of its members as its chairman and shall hold meetings at such time and places as it may determine. All references in this Plan to the Compensation Committee shall mean the Board if no Compensation Committee has been appointed. From time to time the Board may increase the size of the Compensation Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies however caused or remove all members of the Compensation Committee and thereafter directly administer the Plan.
(c)
Stock Rights may be granted to members of the Board, whether such grants are in their capacity as directors, Officers or consultants. All grants of Stock Rights to members of the Board shall in all other respects be made in accordance with the provisions of this Plan applicable to other eligible persons. Members of the Board who are either (i) eligible for Stock Rights pursuant to the Plan or (ii) have been granted Stock Rights may vote on any matters affecting the administration of the Plan or the grant of any Stock Rights pursuant to the Plan.
(d)
In addition to such other rights of indemnification as he may have as a member of the Board, and with respect to administration of the Plan and the granting of Stock Rights under it, each member of the Board and of the Compensation Committee shall be entitled without further act on his part to indemnification from the Company for all expenses (including advances of litigation expenses, the amount of judgment and the amount of approved settlements made with a view to the curtailment of costs of litigation) reasonably incurred by him in connection with or arising out of any action, suit or proceeding, including any appeal thereof, with respect to the administration of the Plan or the granting of Stock Rights under it in which he may be involved by reason of his being or having been a member of the Board or the Compensation Committee, whether or not he continues to be such member of the Board or the Compensation Committee at the time of the incurring of such expenses; provided, however, that such indemnity shall be subject to the limitations contained in any Indemnification Agreement between the Company and the Board member or Officer. The foregoing right of indemnification shall inure to the benefit of the heirs, executors or administrators of each such member of the Board or the Compensation Committee and shall be in addition to all other rights to which such member of the Board or the Compensation Committee would be entitled to as a matter of law, contract or otherwise.
(e)
The Board may delegate the powers to grant Stock Rights to Officers to the extent permitted by the laws of the Companys state of incorporation.
3.
Eligible Employees and Others.
(a)
ISOs may be granted to any employee of the Company or any Related Corporation. Those Officers and directors of the Company who are not employees may not be granted ISOs under the Plan. Subject to compliance with Rule 16b-3 and other applicable securities laws, Non-Qualified Options, Restricted Stock, RSUs and SARs may be granted to any director (whether or not an employee), Director Advisors, Officers, employees or consultants of the Company or any Related Corporation. The Compensation Committee may take into consideration a recipients individual circumstances in determining whether to grant an ISO, a
5
Non-Qualified Option, Restricted Stock, RSUs or a SAR. Granting of any Stock Right to any individual or entity shall neither entitle that individual or entity to, nor disqualify him from participation in, any other grant of Stock Rights.
(b)
All directors of the Company who are not employees or 10% shareholders of the Company or Related Corporations and all Director Advisors shall automatically receive the following as appropriate:
(i)
Initial Grants. On the date on which a person is first elected or appointed, whether elected by the shareholders of the Company or appointed by the Board to fill a Board vacancy, he or she shall receive an automatic grant of non qualified options as follows:
| (A) | Chairman of the Board - | 50,000 options; |
| (B) | Director - | 30,000 options; |
| (C) | Chairman of a committee - | 10,000 options; and |
| (D) | Member of a committee - | 5,000 options. |
(ii)
Annual Grants. On July 1st of each year, each non-employee director shall receive an automatic grant of non-qualified options as follows:
| (A) | Director - | 100,000 options; |
| (B) | Chairman of a Qualifying Committee - | 20,000 options; and |
| (C) | Member of a Qualifying Committee - | 10,000 options. |
(iii)
Vesting. All initial grants under this Section 3(b) shall vest over a three-year period each 12 months following the date of the automatic grant, subject to service with the Company in the capacity in which the grant is received on the applicable vesting dates. All annual grants shall vest on June 30th of the following year, subject to service with the Company in the capacity in which the grant is received on the applicable vesting date.
(iv)
All grants of non qualified options under this Section 3(b) are subject to adjustment under Section 14.
(c)
The exercise price of the Options or SARs under Section 3 shall be Fair Market Value or such higher price as may be established by the Compensation Committee, the Board or by the Code.
4.
Common Stock. The Common Stock subject to Stock Rights shall be authorized but unissued shares of Common Stock, par value $0.001, or shares of Common Stock reacquired by the Company in any manner, including purchase, forfeiture or otherwise. The aggregate number of shares of Common Stock which may be issued pursuant to the Plan is 15,000,000, less any Stock Rights previously granted or exercised subject to adjustment as provided in Section 14. Any such shares may be issued under ISOs, Non-Qualified Options, Restricted Stock, RSUs or SARs, so long as the number of shares so issued does not exceed the limitations in this Section. If any Stock Rights granted under the Plan shall expire or terminate for any reason without having been exercised in full or shall cease for any reason to be exercisable in
6
whole or in part, or if the Company shall reacquire any unvested shares, the unpurchased shares subject to such Stock Rights and any unvested shares so reacquired by the Company shall again be available for grants under the Plan.
5.
Granting of Stock Rights.
(a)
The date of grant of a Stock Right under the Plan will be the date specified by the Board or Compensation Committee at the time it grants the Stock Right; provided, however, that such date shall not be prior to the date on which the Board or Compensation Committee acts to approve the grant. The Board or Compensation Committee shall have the right, with the consent of the optionee, to convert an ISO granted under the Plan to a Non-Qualified Option pursuant to Section 17.
(b)
Except for automatic grants under Section 3(b), the Board or Compensation Committee shall grant Stock Rights to participants that it, in its sole discretion, selects. Stock Rights shall be granted on such terms as the Board or Compensation Committee shall determine except that ISOs shall be granted on terms that comply with the Code and regulations thereunder.
(c)
A SAR entitles the holder to receive, as designated by the Board or Compensation Committee, cash or shares of Common Stock, value equal to (or otherwise based on) the excess of: (a) the Fair Market Value of a specified number of shares of Common Stock at the time of exercise over (b) an exercise price established by the Board or Compensation Committee. The exercise price of each SAR granted under this Plan shall be established by the Compensation Committee or shall be determined by a method established by the Board or Compensation Committee at the time the SAR is granted, provided the exercise price shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date of the grant of the SAR, or such higher price as is established by the Board or Compensation Committee. A SAR shall be exercisable in accordance with such terms and conditions and during such periods as may be established by the Board or Compensation Committee. Shares of Common Stock delivered pursuant to the exercise of a SAR shall be subject to such conditions, restrictions and contingencies as the Board or Compensation Committee may establish in the applicable SAR agreement or document, if any. The Board or Compensation Committee, in its discretion, may impose such conditions, restrictions and contingencies with respect to shares of Common Stock acquired pursuant to the exercise of each SAR as the Board or Compensation Committee determines to be desirable. A SAR under the Plan shall be subject to such terms and conditions, not inconsistent with the Plan, as the Board or Compensation Committee shall, in its discretion, prescribe. The terms and conditions of any SAR to any grantee shall be reflected in such form of agreement as is determined by the Board or Compensation Committee. A copy of such document, if any, shall be provided to the grantee, and the Board or Compensation Committee may condition the granting of the SAR on the grantee executing such agreement.
(d)
An RSU gives the grantee the right to receive a number of shares of the Companys Common Stock on applicable vesting or other dates. Delivery of the RSUs may be deferred beyond vesting as determined by the Board or Compensation Committee. RSUs shall be evidenced by an RSU agreement in the form determined by the Board or Compensation
7
Committee. With respect to an RSU, which becomes non-forfeitable due to the lapse of time, the Compensation Committee shall prescribe in the RSU agreement the vesting period. With respect to the granting of the RSU, which becomes non-forfeitable due to the satisfaction of certain pre-established performance-based objectives imposed by the Board or Compensation Committee, the measurement date of whether such performance-based objectives have been satisfied shall be a date no earlier than the first anniversary of the date of the RSU. A recipient who is granted an RSU shall possess no incidents of ownership with respect to such underlying Common Stock, although the RSU agreement may provide for payments in lieu of dividends to such grantee.
(e)
Notwithstanding any provision of this Plan, the Board or Compensation Committee may impose conditions and restrictions on any grant of Stock Rights including forfeiture of vested Options, cancellation of Common Stock acquired in connection with any Stock Right and forfeiture of profits.
(f)
The Options and SARs shall not be exercisable for a period of more than 10 years from the date of grant. All automatic grants to directors and committee members shall be for 10 years.
6.
Sale of Shares. The shares underlying Stock Rights granted to any Officers, director or a beneficial owner of 10% or more of the Companys securities registered under Section 12 of the Exchange Act shall not be sold, assigned or transferred by the grantee until at least six months elapse from the date of the grant thereof.
7.
ISO Minimum Option Price and Other Limitations.
(a)
The exercise price per share relating to all Options granted under the Plan shall not be less than the Fair Market Value per share of Common Stock on the last trading day prior to the date of such grant. For purposes of determining the exercise price, the date of the grant shall be the later of (i) the date of approval by the Board or Compensation Committee or the Board, or (ii) for ISOs, the date the recipient becomes an employee of the Company. In the case of an ISO to be granted to an employee owning Common Stock which represents more than 10 percent of the total combined voting power of all classes of stock of the Company or any Related Corporation, the price per share shall not be less than 110% of the Fair Market Value per share of Common Stock on the date of grant and such ISO shall not be exercisable after the expiration of five years from the date of grant.
(b)
In no event shall the aggregate Fair Market Value (determined at the time an ISO is granted) of Common Stock for which ISOs granted to any employee are exercisable for the first time by such employee during any calendar year (under all stock option plans of the Company and any Related Corporation) exceed $100,000.
8.
Duration of Stock Rights. Subject to earlier termination as provided in Sections 3, 5, 9, 10 and 11, each Option and SAR shall expire on the date specified in the original instrument granting such Stock Right (except with respect to any part of an ISO that is converted into a Non-Qualified Option pursuant to Section 17), provided, however, that such instrument must comply with Section 422 of the Code with regard to ISOs and Rule 16b-3 with regard to all
8
Stock Rights granted pursuant to the Plan to Officers, directors and 10% shareholders of the Company.
9.
Exercise of Options and SARs; Vesting of Stock Rights. Subject to the provisions of Sections 3 and 9 through 13, each Option and SAR granted under the Plan shall be exercisable as follows:
(a)
The Options and SARs shall either be fully vested and exercisable from the date of grant or shall vest and become exercisable in such installments as the Board or Compensation Committee may specify.
(b)
Once an installment becomes exercisable it shall remain exercisable until expiration or termination of the Option and SAR, unless otherwise specified by the Board or Compensation Committee.
(c)
Each Option and SAR or installment, once it becomes exercisable, may be exercised at any time or from time to time, in whole or in part, for up to the total number of shares with respect to which it is then exercisable.
(d)
The Board or Compensation Committee shall have the right to accelerate the vesting date of any installment of any Stock Right; provided that the Board or Compensation Committee shall not accelerate the exercise date of any installment of any Option granted to any employee as an ISO (and not previously converted into a Non-Qualified Option pursuant to Section 17) if such acceleration would violate the annual exercisability limitation contained in Section 422(d) of the Code as described in Section 7(b).
10.
Termination of Employment. Subject to any greater restrictions or limitations as may be imposed by the Board or Compensation Committee upon the granting of any Option, if an ISO optionee ceases to be employed by the Company and all Related Corporations other than by reason of death or Disability, no further installments of his ISOs shall become exercisable, and his ISOs shall terminate as provided for in the grant or on the day three months after the day of the termination of his employment, whichever is earlier, but in no event later than on their specified expiration dates. Employment shall be considered as continuing uninterrupted during any bona fide leave of absence (such as those attributable to illness, military obligations or governmental service) provided that the period of such leave does not exceed 90 days or, if longer, any period during which such optionees right to re-employment is guaranteed by statute. A leave of absence with the written approval of the Board shall not be considered an interruption of employment under the Plan, provided that such written approval contractually obligates the Company or any Related Corporation to continue the employment of the optionee after the approved period of absence. ISOs granted under the Plan shall not be affected by any change of employment within or among the Company and Related Corporations so long as the optionee continues to be an employee of the Company or any Related Corporation.
9
11.
Death; Disability. Subject to any greater restrictions or limitations as may be imposed by the Board or Compensation Committee upon the granting of any Option or SAR:
(a)
If the holder of an Option or SAR ceases to be employed by the Company and all Related Corporations by reason of his death, any Options or SARs of such employee may be exercised to the extent of the number of shares with respect to which he could have exercised it on the date of his death, by his estate, personal representative or beneficiary who has acquired the Options or SARs by will or by the laws of descent and distribution, at any time prior to the earlier of the Options or SARs specified expiration date or three months from the date of the grantees death.
(b)
If the holder of an Option or SAR ceases to be employed by the Company and all Related Corporations, or a director or Director Advisor can no longer perform his duties, by reason of his Disability, he shall have the right to exercise any Option or SARs held by him on the date of termination of employment or ceasing to act as a director or Director Advisor until the earlier of (i) the Options or SARs specified expiration date or (ii) one year from the date of the termination of the persons employment.
12.
Assignment, Transfer or Sale.
(a)
No ISO granted under this Plan shall be assignable or transferable by the grantee except by will or by the laws of descent and distribution, and during the lifetime of the grantee, each ISO shall be exercisable only by him, his guardian or legal representative.
(b)
Except for ISOs, all Stock Rights are transferable subject to compliance with applicable securities laws and Section 6 of this Plan.
13.
Terms and Conditions of Stock Rights. Stock Rights shall be evidenced by instruments (which need not be identical) in such forms as the Board or Compensation Committee may from time to time approve. Such instruments shall conform to the terms and conditions set forth in Sections 5 through 12 hereof and may contain such other provisions as the Board or Compensation Committee deems advisable which are not inconsistent with the Plan. In granting any Stock Rights, the Board or Compensation Committee may specify that Stock Rights shall be subject to the restrictions set forth herein with respect to ISOs, or to such other termination and cancellation provisions as the Board or Compensation Committee may determine. The Board or Compensation Committee may from time to time confer authority and responsibility on one or more of its own members and/or one or more Officers of the Company to execute and deliver such instruments. The proper Officers of the Company are authorized and directed to take any and all action necessary or advisable from time to time to carry out the terms of such instruments.
14.
Adjustments Upon Certain Events.
(a)
Subject to any required action by the shareholders of the Company, the number of shares of Common Stock covered by each outstanding Stock Right, and the number of shares of Common Stock which have been authorized for issuance under the Plan but as to which
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no Stock Rights have yet been granted or which have been returned to the Plan upon cancellation or expiration of a Stock Right, as well as the price per share of Common Stock (or cash, as applicable) covered by each such outstanding Option or SAR, shall be proportionately adjusted for any increases or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company or the voluntary cancellation whether by virtue of a cashless exercise of a derivative security of the Company or otherwise shall not be deemed to have been effected without receipt of consideration. Such adjustment shall be made by the Board or Compensation Committee, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into 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 a Stock Right. No adjustments shall be made for dividends or other distributions paid in cash or in property other than securities of the Company.
(b)
In the event of the proposed dissolution or liquidation of the Company, the Board or Compensation Committee shall notify each participant as soon as practicable prior to the effective date of such proposed transaction. To the extent it has not been previously exercised, a Stock Right will terminate immediately prior to the consummation of such proposed action.
(c)
In the event of a merger of the Company with or into another corporation, or a Change of Control, each outstanding Stock Right shall be assumed (as defined below) or an equivalent option or right substituted by the successor corporation or a parent or subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the Stock Rights, the participants shall fully vest in and have the right to exercise their Stock Rights as to which it would not otherwise be vested or exercisable. If a Stock Right becomes fully vested and exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Board or Compensation Committee shall notify the participant in writing or electronically that the Stock Right shall be fully vested and exercisable for a period of at least 15 days from the date of such notice, and any Options or SARs shall terminate one minute prior to the closing of the merger or sale of assets.
For the purposes of this Section 14(c), the Stock Right shall be considered assumed if, following the merger or Change of Control, the option or right confers the right to purchase or receive, for each share of Common Stock subject to the Stock Right immediately prior to the merger or Change of Control, the consideration (whether stock, cash, or other securities or property) received in the merger or Change of Control by holders of Common Stock for each share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or Change of Control is not solely common stock of the successor corporation or its parent, the Board or Compensation Committee may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Stock Right, for each share of Common
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Stock subject to the Stock Right, to be solely common stock of the successor corporation or its parent equal in Fair Market Value to the per share consideration received by holders of Common Stock in the merger or Change of Control.
(d)
Notwithstanding the foregoing, any adjustments made pursuant to Section 14(a), (b) or (c) with respect to ISOs shall be made only after the Board or Compensation Committee, after consulting with counsel for the Company, determines whether such adjustments would constitute a modification of such ISOs (as that term is defined in Section 425(h) of the Code) or would cause any adverse tax consequences for the holders of such ISOs. If the Board or Compensation Committee determines that such adjustments made with respect to ISOs would constitute a modification of such ISOs it may refrain from making such adjustments.
(e)
No fractional shares shall be issued under the Plan and the optionee shall receive from the Company cash in lieu of such fractional shares.
15.
Means of Exercising Stock Rights.
(a)
An Option or SAR (or any part or installment thereof) shall be exercised by giving written notice to the Company at its principal office address. Such notice shall identify the Stock Right being exercised and specify the number of shares as to which such Stock Right is being exercised, accompanied by full payment of the exercise price therefor (to the extent it is exercisable in cash) either (i) in United States dollars by check or wire transfer; or (ii) at the discretion of the Board or Compensation Committee, through delivery of shares of Common Stock having a Fair Market Value equal as of the date of the exercise to the cash exercise price of the Stock Right; or (iii) at the discretion of the Board or Compensation Committee, by any combination of (i) and (ii) above. If the Board or Compensation Committee exercises its discretion to permit payment of the exercise price of an ISO by means of the methods set forth in clauses (ii) or (iii) of the preceding sentence, such discretion need not be exercised in writing at the time of the grant of the Stock Right in question. The holder of a Stock Right shall not have the rights of a shareholder with respect to the shares covered by his Stock Right until the date of issuance of a stock certificate to him for such shares. Except as expressly provided above in Section 14 with respect to changes in capitalization and stock dividends, no adjustment shall be made for dividends or similar rights for which the record date is before the date such stock certificate is issued.
(b)
Each notice of exercise shall, unless the shares of Common Stock are covered by a then current registration statement under the Securities Act, contain the holders acknowledgment in form and substance satisfactory to the Company that (i) such shares are being purchased for investment and not for distribution or resale (other than a distribution or resale which, in the opinion of counsel satisfactory to the Company, may be made without violating the registration provisions of the Securities Act), (ii) the holder has been advised and understands that (1) the shares have not been registered under the Securities Act and are restricted securities within the meaning of Rule 144 under the Securities Act and are subject to restrictions on transfer and (2) the Company is under no obligation to register the shares under the Securities Act or to take any action which would make available to the holder any exemption from such registration, and (iii) such shares may not be transferred without compliance with all
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applicable federal and state securities laws. Notwithstanding the above, should the Company be advised by counsel that issuance of shares should be delayed pending registration under federal or state securities laws or the receipt of an opinion that an appropriate exemption therefrom is available, the Company may defer exercise of any Stock Right granted hereunder until either such event has occurred.
16.
Term, Termination and Amendment.
(a)
This Plan was adopted by the Board. This Plan may be approved by the Companys shareholders, which approval is required for ISOs.
(b)
The Board may terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on January 31, 2017. No Stock Rights may be granted under the Plan once the Plan is terminated. Termination of the Plan shall not impair rights and obligations under any Stock Right granted while the Plan is in effect, except with the written consent of the grantee.
(c)
The Board at any time, and from time to time, may amend the Plan. Provided, however, except as provided in Section 14 relating to adjustments in Common Stock, no amendment shall be effective unless approved by the shareholders of the Company to the extent (i) shareholder approval is necessary to satisfy the requirements of Section 422 of the Code or (ii) required by the rules of the principal national securities exchange or trading market upon which the Companys Common Stock trades. Rights under any Stock Rights granted before amendment of the Plan shall not be impaired by any amendment of the Plan, except with the written consent of the grantee.
(d)
The Board at any time, and from time to time, may amend the terms of any one or more Stock Rights; provided, however, that the rights under the Stock Right shall not be impaired by any such amendment, except with the written consent of the grantee.
17.
Conversion of ISOs into Non-Qualified Options; Termination of ISOs. The Board or Compensation Committee, at the written request of any optionee, may in its discretion take such actions as may be necessary to convert such optionees ISOs (or any installments or portions of installments thereof) that have not been exercised on the date of conversion into Non-Qualified Options at any time prior to the expiration of such ISOs, regardless of whether the optionee is an employee of the Company or a Related Corporation at the time of such conversion. Provided, however, the Board or Compensation Committee shall not reprice the Options or extend the exercise period or reduce the exercise price of the appropriate installments of such Options without the approval of the Companys shareholders. At the time of such conversion, the Board or Compensation Committee (with the consent of the optionee) may impose such conditions on the exercise of the resulting Non-Qualified Options as the Board or Compensation Committee in its discretion may determine, provided that such conditions shall not be inconsistent with this Plan. Nothing in the Plan shall be deemed to give any optionee the right to have such optionees ISOs converted into Non-Qualified Options, and no such conversion shall occur until and unless the Board or Compensation Committee takes appropriate action. The
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Compensation Committee, with the consent of the optionee, may also terminate any portion of any ISO that has not been exercised at the time of such termination.
18.
Application of Funds. The proceeds received by the Company from the sale of shares pursuant to Options or SARS (if cash settled) granted under the Plan shall be used for general corporate purposes.
19.
Governmental Regulations. The Companys obligation to sell and deliver shares of the Common Stock under this Plan is subject to the approval of any governmental authority required in connection with the authorization, issuance or sale of such shares.
20.
Withholding of Additional Income Taxes. In connection with the granting, exercise or vesting of a Stock Right or the making of a Disqualifying Disposition the Company, in accordance with Section 3402(a) of the Code, may require the optionee to pay additional withholding taxes in respect of the amount that is considered compensation includable in such persons gross income.
To the extent that the Company is required to withhold taxes for federal income tax purposes as provided above, if any optionee may elect to satisfy such withholding requirement by (i) paying the amount of the required withholding tax to the Company; (ii) delivering to the Company shares of its Common Stock (including shares of Restricted Stock) previously owned by the optionee; or (iii) having the Company retain a portion of the shares covered by an Option exercise. The number of shares to be delivered to or withheld by the Company times the Fair Market Value of such shares shall equal the cash required to be withheld.
21.
Notice to Company of Disqualifying Disposition. Each employee who receives an ISO must agree to notify the Company in writing immediately after the employee makes a Disqualifying Disposition of any Common Stock acquired pursuant to the exercise of an ISO. If the employee has died before such stock is sold, the holding periods requirements of the Disqualifying Disposition do not apply and no Disqualifying Disposition can occur thereafter.
22.
Continued Employment. The grant of a Stock Right pursuant to the Plan shall not be construed to imply or to constitute evidence of any agreement, express or implied, on the part of the Company or any Related Corporation to retain the grantee in the employ of the Company or a Related Corporation, as a member of the Companys Board or in any other capacity, whichever the case may be.
23.
Governing Law; Construction. The validity and construction of the Plan and the instruments evidencing Stock Rights shall be governed by the laws of the Companys state of incorporation. In construing this Plan, the singular shall include the plural and the masculine gender shall include the feminine and neuter, unless the context otherwise requires.
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24.
Forfeiture of Stock Rights. Notwithstanding any other provision of this Plan, all vested Stock Rights shall be immediately forfeited at the option of the Board in the event of:
(a) Termination of the relationship with the grantee for cause including, but not limited to, fraud, theft, dishonesty and violation of Company policy;
(b) Purchasing or selling securities of the Company without written authorization in accordance with the Companys inside information guidelines then in effect;
(c) Breaching any duty of confidentiality including that required by the Companys inside information guidelines then in effect;
(d) Competing with the Company;
(e) Failure to execute the Companys standard stock rights agreement; or
(f) A finding by the Board that the grantee has acted against the interests of the Company.
The Board or the Compensation Committee may impose other forfeiture restrictions which are more or less restrictive and require a return of profits from the sale of Common Stock as part of said forfeiture provisions if such forfeiture provisions and/or return of provisions are contained in a Stock Rights agreement.
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Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
I, Peter Cordani, certify that:
1.
I have reviewed this annual report on Form 10-K/A of GelTech Solutions, Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
Date: October 25, 2013
/s/ Peter Cordani |
Peter Cordani President (Principal Executive Officer) |
Exhibit 31.2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
I, Michael Hull, certify that:
1.
I have reviewed this annual report on Form 10-K/A of GelTech Solutions, Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
Date: October 25, 2013
/s/ Michael Hull |
Michael Hull Chief Financial Officer (Principal Financial Officer) |