0001494413-14-000003.txt : 20140626
0001494413-14-000003.hdr.sgml : 20140626
20140620092401
ACCESSION NUMBER: 0001494413-14-000003
CONFORMED SUBMISSION TYPE: S-8
PUBLIC DOCUMENT COUNT: 4
FILED AS OF DATE: 20140620
DATE AS OF CHANGE: 20140620
EFFECTIVENESS DATE: 20140620
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: Innovative Product Opportunities Inc.
CENTRAL INDEX KEY: 0001494413
STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389]
IRS NUMBER: 421770123
STATE OF INCORPORATION: DE
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: S-8
SEC ACT: 1933 Act
SEC FILE NUMBER: 333-196917
FILM NUMBER: 14931743
BUSINESS ADDRESS:
STREET 1: 8400 EDINGER AVE SUITE #202R
CITY: HUNTINGTON BEACH
STATE: CA
ZIP: 92647
BUSINESS PHONE: 347-789-7131
MAIL ADDRESS:
STREET 1: 8400 EDINGER AVE SUITE #202R
CITY: HUNTINGTON BEACH
STATE: CA
ZIP: 92647
S-8
1
ipru_s8june202014.txt
INNOVATIVE PRODUCTS S8 STOCK PLAN
As filed with the Securities and Exchange Commission on June 20, 2014
Registration No. 333-________
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT
Under
THE SECURITIES ACT OF 1933
INNOVATIVE PRODUCT OPPORTUNITIES, INC.
(Exact name of registrant as specified in its charter)
Delaware 42-1770123
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7235-88077 Belshire Gate L5N 8M1
Mississauga Ontario, Canada (Zip Code)
(Address of principal executive offices)
Innovative Product Opportunities, Inc.
June 2014 Stock Option Plan
(Full title of the plans)
Doug Clark Copy to:
Principal Executive Officer Jaak Olesk, Esq.
Innovative Product Opportunities, Inc. 9107 Wilshire Boulevard
7235-88077 Belshire Gate Suite 450
Mississauga Ontario, Canada L5N 8M1 Beverly Hills, CA 90210
(347) 789-7131 310 272 7190
(Name, address and telephone
number of agent for service)
Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company.
See the definitions of "large accelerated filer," "accelerated filer" and
"smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer [] Non-accelerated filer []
Accelerated filer [] Smaller reporting company [X]
CALCULATION OF REGISTRATION FEE
Title of Amount Proposed Maximum Proposed Maximum Amount of
Securities to to be Offering Price Registered Aggregate Registration
be Registered Registered(1) per Share(2) Offering Price (1) Fee
-------------- ----------- --------------- -------------------- ----------
Common Stock,
$0.0001 par
value 200,000,000 $ 0.05 $ 10,000,000 $ 1288.00
Total
Registration
Fee 200,000,000 $ 0.05 $ 10,000,000 $ 1288.00
(1) Pursuant to Rule 416(a) of the Securities Act of 1933, as amended (the
"Act"), this registration statement shall be deemed to cover additional
securities that may be offered and sold as a result of anti-dilution provisions
described in the above-referenced plan.
(2) Estimated solely for the purpose of calculating the registration fee
pursuant to Rule 457(C) on the basis of the closing price of the common stock
of the Registrant as traded in the over-the-counter market and reported on the
OTC Pink.on June 19, 2014.
----------------------------------------
TABLE OF CONTENTS
PART I
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
Item 1. Plan Information.......................................3
Item 2. Registrant Information and Employee
Program Annual Information.............................3
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3. Incorporation of Documents by Reference................4
Item 4. Description of Securities..............................4
Item 5. Interests of Named Experts and Counsel.................4
Item 6. Indemnification of Directors and Officers..............5
Item 7. Exemption from Registration Claimed....................5
Item 8. Exhibits...............................................5
Item 9. Undertakings...........................................5
SIGNATURES ............................................................7
INDEX TO EXHIBITS
Exhibit 4.1 Innovative Product Opportunities, Inc. June 2014 Stock
Option Plan, dated June 20, 2014 (filed herewith).
Exhibit 5.1 Opinion of Jaak Olesk (filed herewith).
Exhibit 23.1 Consent of Silberstein Ungar, PLLC (filed herewith)..
Exhibit 23.2 Consent of Jaak Olesk (included in Exhibit 5.1 hereto)
________________________________________
PART I
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
Item 1. Plan Information.
In accordance with the Instructional Note to Part I of Form S-8 as promulgated
by the Securities and Exchange Commission, the information specified by
Part I of Form S-8 has been omitted from this registration statement on
Form S-8.
Item 2. Registrant Information and Employee Program Annual Information.
The registrant will provide without charge to each person to whom a copy of a
Section 10(a) prospectus hereunder is delivered, upon the oral or written
request of such person, a copy of any document incorporated in this
registration statement by reference. The registrant will also make available
without charge, upon oral or written request, other documents required to be
delivered pursuant to Rule 428(b). Requests for such information should be
directed to: Innovative Product Opportunities, Inc. 7235-88077 Belshire Gate,
Mississauga Ontario, Canada L5N 8M1 (347) 789-7131.
3
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3. Incorporation of Certain Documents by Reference.
The following documents are hereby incorporated by reference:
(a) The registrant's annual report on Form 10-K for the fiscal year
ended December 31, 2013, filed on April 15, 2014, pursuant to Section
13(a)or 15(d) of the Securities Exchange Act of 1934, as amended
(the "Exchange Act").
(b) The registrant's quarterly report on Form 10Q filed on May 15, 2014.
(c) All other reports filed pursuant to Section 13(a) or 15(d) of the
Exchange Act since the end of the fiscal year covered by the financial
statements in the Form 10-K referred to in (a) above, except current reports
on Form 8-K to the extent they contain information furnished pursuant to either
Item 2.02, Item 7.01 or Item 9.01 thereof.
In addition to the forgoing, all documents subsequently filed by the registrant
pursuant to Sections 13(a), 13(c), 14, and 15(d) of the Exchange Act, prior to
the filing of a post-effective amendment which indicates that all securities
offered have been sold or which deregisters all securities then remaining
unsold shall be deemed to be incorporated in this registration statement by
reference and to be a part hereof from the date of filing of such documents.
Any statement contained in this registration statement, in a supplement to this
registration statement or in a document incorporated by reference herein,
shall be deemed to be modified or superseded for purposes of this registration
statement to the extent that a statement contained herein or in any
subsequently filed supplement to this registration statement or in any
document that is subsequently incorporated by reference herein modifies or
supersedes such statement. Any statement so modified or superseded shall not
be deemed, except as so modified or superseded, to constitute a part of this
registration statement. All information appearing in this registration
statement is qualified in its entirety by the information and financial
statements (including notes thereto) appearing in the documents incorporated
herein by reference, except to the extent set forth in the immediately
preceding statement.
Item 4. Description of Securities.
Not Applicable.
Item 5. Interests of Named Experts and Counsel.
Jaak Olesk, Esq. of Beverly Hills, CA will pass on the validity of the
issuance of common stock registered hereby.
4
Item 6. Indemnification of Directors and Officers.
Section 145 of the Delaware General Corporation Law, as amended, authorizes
the registrant to indemnify any director or officer, under certain prescribed
circumstances, and subject to certain limitations against certain costs and
expenses, including attorneys' fees actually and reasonably incurred in
connection with any action, suit or proceeding, whether civil, criminal,
administrative or investigative, to which a person is a party by reason of
being a director or officer of the registrant if it is determined that
such person acted in accordance with the applicable standard of conduct set
forth in such statutory provisions. The registrant's Amended and Restated
Certificate of Incorporation, as amended, contains provisions relating to
the indemnification of directors and officers and its By-Laws extends such
indemnities to the full extent permitted by Delaware law.
Insofar as indemnification for liabilities arising under the Act, may be
permitted to directors, officers or persons controlling the Company pursuant
to the foregoing provisions, the Company has been informed that in the opinion
of the Securities and Exchange Commission (the "SEC") such indemnification is
against public policy as expressed in the Securities Act and is therefore
unenforceable.
The registrant may also purchase and maintain insurance for the benefit of
any director or officer, which may cover claims for which it could not
indemnify such persons.
Item 7. Exemption From Registration Claimed.
Not Applicable.
Item 8. Exhibits.
The following exhibits are filed as part of this registration statement.
Exhibit No. Description
4.1 Innovative Product Opportunities, Inc. June 2014 Stock Option
Plan, dated June 19, 2014 (filed herewith).
5.1 Opinion of Jaak Olesk
23.1 Consent of Silberstein Ungar, PLLC.
23.2 Consent of Jaak Olesk (included in Exhibit 5.1 hereto)
Item 9. Undertakings.
(a) The undersigned registrant hereby undertakes:
1. To file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:
(i) to include any prospectus required by Section 10(a)(3) of the
Securities Act.
(ii) to reflect in the prospectus any facts or events arising after the
effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a
fundamental change in the information set forth in the registration statement.
Notwithstanding the foregoing, any increase or decrease in volume of securities
offered (if the total dollar value of the securities offered would not exceed
that which was registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of prospectus
filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the "Calculation of Registration Fee"
table in the effective registration statement
(iii) to include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or any
material change to such information in the registration statement; provided,
however, that (a)(1)(i) and (a)(1)(ii) above do not apply if the information
required to be included in a post-effective amendment by those paragraphs is
contained in the periodic reports filed with or furnished to the Commission
by the Registrant pursuant to Section 13 or Section 15(d) of the Exchange Act
that are incorporated by reference into this registration statement.
2. That, for the purpose of determining any liability under the Securities
Act of 1933, each such post-effective amendment shall be deemed to be a
new registration statement relating to the securities offered herein,
and the offering of such securities at that time shall be deemed to
be the initial bona fide offering thereof.
3. To remove from registration by means of a post-effective amendment any
of the securities being registered which remain unsold at the
termination of the offering.
(b) The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing
of the registrant's annual report pursuant to section 13(a) or
section 15(d) of the Securities Act of 1933 (and, where applicable,
each filing of an employee benefit plan's annual report pursuant to
section 15(d) of the Securities Exchange Act of 1934) that is
incorporated by reference in the registration statement shall be
deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against
public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities
(other than the payment by the registrant of expenses incurred or paid
by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the opinion
of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question of whether
such indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such issue.
6
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Mississauga, Province of Ontario, Country of Canada,
on the 20th day of June, 2014.
INNOVATIVE PRODUCT OPPORTUNITIES INC.
By /s/Doug Clark
---------------------------
Doug Clark
Principal Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.
NAME TITLE DATE
By:/s/Doug Clark Chief Executive Officer June 20, 2014
----------------- Chairman and Director
Doug Clark
By:/s/Robert McLean Chief Financial Officer June 20, 2014
-------------------
Robert McLean
By:/s/Grant Stummer Director June 20, 2014
-------------------
Grant Stummer
EX-4
2
ipru_s8june202014ex41.txt
INNOVATIVE PRODUCT OPPORTUNITIES INC. STOCK OPTION PLAN
Exhibit 4.1
Innovative Product Opportunities Inc.
June 2014 Stock Option Plan
Article I. Purposes of the Plan
The purposes of this June 2014 Stock Option Plan are to attract and retain
the best available personnel, to provide additional incentive to Employees,
Directors and Consultants, and to promote the success of the Company's
business.
Article II. Definitions
As used herein, the following definitions shall apply:
2.01 "Administrator" means the Board or any of the Committees appointed to
administer the Plan.
2.03 "Applicable Laws" means the legal requirements relating to the
administration of share incentive plans, if any, under applicable
provisions of the U.S. federal securities laws, the U.S. state
corporate and securities laws, the Code, the rules of any applicable
stock exchange or national market system, and the laws and rules of any
jurisdiction outside the U.S. applicable to Options including Canadian
laws, SARs or Restricted Shares granted to residents therein.
2.03 "Board" means the Board of Directors of the Company.
2.04 "Code" means the U.S. Internal Revenue Code of 1986, as amended.
2.05 "Committee" means any committee appointed by the Board to administer
the Plan, provided that the Committee shall consist of not fewer than
two (2) members of the Board, and shall, following the Registration
Date and, solely to the extent required to comply with Applicable Laws,
be composed of "non-employee" directors within the meaning of Rule
16b-3 as promulgated under the Exchange Act and "outside directors"
within the meaning of the Code. To the extent the Plan is administered
by the Board, the term "Committee" shall refer to the Board.
2.06 "Common Share" means a share of US $0.0001 par value of the Company.
2.07 "Company" means Innovative Product Opportunities Inc., a company
incorporated under the laws of Delaware.
2.08 "Consultant" means any person (other than an Employee or a Director)
who is engaged by the Company or any Related Entity to render
consulting or advisory services to the Company or such Related Entity
or any other selective persons the Administrator determines provides,
directly or indirectly, bona fide value to the Company or any Related
Entity.
2.09 "Continuous Service" means that the provision of services to the
Company or a Related Entity in any capacity of Employee, Director, or
Consultant, is not interrupted or terminated. Continuous Service shall
not be considered interrupted in the case of:
(i) any approved leave of absence;
(ii) transfers among the Company, any Related Entity, or any
successor, in any capacity of Employee, Director, or
Consultant; or
(iii) any change in status as long as the individual remains in the
service of the Company or a Related Entity in any capacity of
Employee, Director, or Consultant (except as otherwise provided
in the Option Agreement).
An approved leave of absence shall include sick leave, maternity
leave, or any other authorized personal leave.
2.10 "Corporate Transaction" means any of the following transactions to
which the Company is a party:
(i) a merger or consolidation or reorganization in which the Company
is not the surviving entity; or the sale, transfer or other
disposition of all or substantially all of the assets of the
Company (including the share capital of the Company's
Subsidiaries).
2.11 "Director" means a member of the Board or the board of directors of
any Related Entity.
2.12 "Disability" means that an Optionee is permanently unable to carry out
the responsibilities and functions of the position held by the Optionee
by reason of any medically determinable physical or mental impairment
as determined by the Administrator. An Optionee will not be considered
to have incurred a Disability unless he or she furnishes proof of such
impairment sufficient to satisfy the Administrator in its discretion.
2.13 "Effective Date" means the date on which a Grant of Options and/or
SARs and/or Restricted Shares shall take effect in accordance with
Option Agreement.
2.14 "Employee" means any person, including an Officer or Director, who is
an employee of the Company or any Related Entity. The payment of an
independent director's fee by the Company or a Related Entity shall not
be sufficient to constitute "employment" of such person by the Company.
2.15 "Exchange Act" means the U.S. Securities Exchange Act of 1934, as
amended.
2.16 "Fair Market Value" means, as of any date, the value of Common Shares
as follows:
(a) Where there exists a public market for the Common Shares, the Fair
Market Value shall be:
(i) the closing price for a Share for the last market trading day
prior to the time of the determination (or, if no closing price
was reported on that date, on the last trading date on which
a closing price was reported) on the stock exchange determined
by the Administrator to be the primary market for the Common
Shares or the Nasdaq National Market, whichever is applicable;
or
(ii) if the Common Shares are not traded on any such exchange, or
national market system, the average of the closing bid and
asked prices of a Share on the Nasdaq Small Cap Market for
the day prior to the time of the determination (or, if no such
prices were reported on that date, on the last date on which
such prices were reported), in each case, as reported in The
Wall Street Journal or such other source as the Administrator
deems reliable.
(b) In the absence of an established market for the Common Shares of
the type described in (a), above, the Fair Market Value thereof
shall be determined by the Administrator in good faith by
reference to:
(i) the valuation price made by an independent appraiser appointed
by the Administrator;
(ii) the placing price of the latest private placement of the
Shares; and
(iii) the development of the Company's business operations since
such latest private placement.
2.17 "Grant" means the number of Options and/or Stock Appreciation Rights
and/or Restricted Shares and/or Restricted Share Units granted to an
Optionee at any time in accordance with Article VI hereof.
2.18 "Immediate Family" means any child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships,
any person sharing the Optionee's household (other than a tenant or
employee), a trust in which these persons (or the Optionee) have more
than fifty percent (50%) of the beneficial interest, a foundation in
which these persons (or the Optionee) control the management of
assets, and any other entity in which these persons (or the Optionee)
own more than fifty percent (50%) of the voting interests.
2.19 "Liquidation Event" means a complete dissolution or liquidation of the
Company.
2.20 "Non-Statutory Stock Option" means an Option not intended to qualify
as an Incentive Stock Option within the meaning of Section 422 of the
Code.
2.21 "Officer" means a person who is an officer of the Company or a Related
Entity within the meaning of Section 16 of the Exchange Act and the
rules and regulations promulgated thereunder or, to the extent
applicable, other Applicable Laws.
2.22 "Option" means an option to purchase Shares pursuant to an Option
Agreement granted under the Plan.
2.23 "Optionee" means an Employee, Director, or Consultant who receives a
Grant under the Plan.
2.24 "Option Agreement" means the written agreement evidencing the grant of
an option and/or SARs and/or Restricted Shares executed by the Company
and the Optionee, including any amendments thereto.
2.25 "Option Period" means the period commencing on the Effective Date of
a Grant and ending no later than on the day prior to the tenth
anniversary of such Effective Date.
2.26 "Parent" means a "parent corporation", whether now or hereafter
existing, as defined in Section 424(e) of the Code or, to the extent
applicable, other Applicable Laws.
2.27 "Plan" means this June 2014 Stock Option Plan of Innovative Product
Opportunities Inc., dated June 19, 2014, as set forth herein and as
may be amended from time to time.
2.28 "Registration Date" means the first to occur of:
(a) the closing of the first sale to the general public of:
(i) the Common Shares; or
(ii) the same class of securities of a successor corporation
(or its Parent) issued pursuant to a Corporate Transaction
in exchange for or in substitution of the Common Shares,
pursuant to a registration statement filed with and declared
effective by the Securities and Exchange Commission under the
Securities Act or an equivalent thereof in a jurisdiction
outside the U.S.;
and
(b) in the event of a Corporate Transaction, the date of the
consummation of the Corporate Transaction if the same class of
securities of the successor corporation (or its Parent) issuable
in such Corporate Transaction shall have been sold to the general
public pursuant to a registration statement filed with and declared
effective by the Securities and Exchange Commission under the
Securities Act or an equivalent thereof in a jurisdiction outside
the U.S., on or prior to the date of consummation of such Corporate
Transaction.
2.29 "Related Entity" means any Parent, Subsidiary and any other
corporation, partnership, limited liability company or other business
entity in which the Company, its Parent or a Subsidiary holds a
substantial ownership interest, directly or indirectly.
2.30 "Securities Act" means the U.S. Securities Act of 1933, as amended.
2.31 "SAR" means a Stock Appreciation Right granted to an Optionee under
this Plan.
2.32 "Shares" mean Common Shares of the Company.
2.33 "Subsidiary" means a "subsidiary corporation", whether now or hereafter
existing, as defined in Section 424(f) of the Code or, to the extent
applicable, other Applicable Laws.
Article III. Shares Subject to the Plan
3.01 Subject to the provisions of Section 10.01 below, the maximum aggregate
number of Shares with respect to which Grants may be made under the
Plan shall not exceed 200,000,000 shares.
3.02 Any Shares covered by a Grant (or portion of a Grant) which is
forfeited or cancelled, expires or is settled in cash or otherwise,
shall be deemed not to have been issued for purposes of determining
the maximum aggregate number of Shares which may be issued under the
Plan. If any unissued Shares are retained by the Company upon exercise
of a Grant in order to satisfy the exercise price for such Grant or
any withholding taxes due with respect to such Grant, such retained
Shares subject to such Grant shall become available for future issuance
under the Plan (unless the Plan has terminated). Shares that actually
have been issued under the Plan pursuant to a Grant shall not be
returned to the Plan and shall not become available for future issuance
under the Plan.
Article IV. Administration of the Plan
4.01 Plan Administrator. The Committee shall administer the Plan in
accordance with its terms.
4.02 Powers of the Administrator. Subject to Applicable Laws and the
provisions of the Plan (including any other powers given to the
Administrator hereunder), and except as otherwise provided by the
Board, the Administrator shall have the authority, in its discretion:
(i) to determine the eligibility of Grants, and to authorize the Chief
Executive Officer and Chief Financial Officer to determine number
of shares of each Grant;
(i) to approve forms of Option Agreements for use under the Plan;
(i) to determine to grant Options with or without SARs;
(i) to determine the Exercise Price applicable to the Share covered by
each Option;
(i) to determine the Option Period applicable thereto;
(i) to establish additional terms, conditions, rules or procedures to
accommodate the rules or laws of applicable foreign jurisdictions
and to afford Optionees favorable treatment under such rules or
laws; provided, however, that no Grant shall be granted under any
such additional terms, conditions, rules or procedures with terms
or conditions which are inconsistent with the provisions of the
Plan;
(i) to amend the terms of any outstanding Grant granted under the
Plan, and to reduce the exercise price of any Option or SAR to the
then current Fair Market Value if the Fair Market Value of the
Shares covered by such Grant shall have declined since the date
the Grant was granted and to make any other amendments or
adjustments to any Grant that the Administrator determines, in
its discretion and under the authority granted to it under this
Plan, to be necessary or advisable, provided that the exercise
price shall never fall below the nominal or par value of the
Shares, and that any such amendment or adjustment that would
adversely affect the Optionee's rights under an outstanding Grant
shall not be made without the Optionee's written consent;
(i) to construe and interpret the terms of the Plan and Grants,
including without limitation, any notice of Grant or Option
Agreement granted pursuant to the Plan; and
(i) to take such other action, not inconsistent with the terms of
the Plan, as the Administrator deems appropriate.
Article V. Eligibility
Options may be granted to Employees, Directors, and Consultants. An Employee,
Director, or Consultant who has been granted a Grant may, if otherwise
eligible, be granted additional Grants. Grants may be granted to such
Employees, Directors, or Consultants who are residing in foreign jurisdictions
as the Administrator may determine from time to time.
Article VI. Type of Grants; Terms and Conditions of Grants
Grants under the Plan may consist of one or more of the following: Options,
SARs, or Restricted Shares (which may be granted as Restricted Share units).
Restricted Stock may be registered on a Form S-8 prior or subsequent to any
grants. Awards of Restricted Shares may provide the Optionee with dividends
or dividend equivalents and voting rights prior to vesting. Additionally,
shares of common stock may be granted as free-trading shares if the shares of
common stock are registered on a Form S-8. Each Grant shall be designated in
the Option Agreement.
6.01 Options
(a) Option Designation. Options shall be designated as Non-Statutory
Stock Option.
(b) Option Exercise Price. The exercise price of an Option shall be
as follows:
(i) granted to a person who, at the time of the grant of such
Non-Statutory Stock Option owns shares representing more than
ten percent (10%) of the voting power of all classes of shares
of the Company or any Parent or Subsidiary, the per Share
exercise price shall be not less than one hundred percent
(100%) of the Fair Market Value per Share on the date of
grant; or
(ii) granted to a person other than a person described in the
preceding paragraph, the per Share exercise price shall be not
less than seventy percent (70%) of the Fair Market Value
per Share on the date of grant.
(c) Consideration. In addition to any other types of consideration
the Administrator may determine, the Administrator is authorized
to accept as consideration for Shares issued under the Plan the
following:
(i) cash or check
(ii) cancellation of indebtedness owed by the Company to the
Optionee;
(iii) promissory note;
(iv) Shares previously acquired by the Optionee valued at the Fair
Market Value at the time of the exercise;
(v) withholding from delivery to the Optionee that number of whole
Shares having a Fair Market Value at the time of the exercise
equal to the exercise price payable to the Company upon
exercise of the Option; or
(vi) any combination of the foregoing methods of payment.
(d) Easy-Sale Exercise.
(i) Exercise/Sale. An Option Agreement may, but need not, provide
that, if Shares are publicly traded, all or part of the
exercise price of an Option and any withholding taxes may be
paid by the delivery (on a form prescribed by the Company) of
an irrevocable direction to a securities broker approved by the
Company to sell Shares and to deliver all or part of the sales
proceeds to the Company.
(ii) Exercise/Pledge. An Option Agreement may, but need not, provide
that, if Shares are publicly traded, all or part of the exercise
price of an Option and any withholding taxes may be paid by the
delivery (on a form prescribed by the Company) of an irrevocable
direction to pledge Shares to a securities broker or lender
approved by the Company, as security for a loan, and to deliver
all or part of the loan proceeds to the Company.
6.02 SARs.
(a) Grant. SARs may be granted in tandem with an Option, in addition to
an Option, or may be freestanding and unrelated to an Option. SARs
granted in tandem or in addition to an Option may be granted either
at the same time as the Option or at a later time. SARs shall vest
and become exercisable at a rate determined by the Administrator,
and shall remain exercisable for such period as specified by the
Administrator. A SAR shall entitle the Optionee to receive from
the Company an amount equal to the excess of the Fair Market Value
of a Share on the exercise of the SAR over the Fair Market Value of
a Share on the date of grant or, in the case of a SAR granted in
tandem with an Option, the per Share exercise price applicable to
such Option.
(b) Settlement. The Administrator shall determine, in its sole
Discretion, whether the SAR shall be settled in cash, Shares, or a
combination of cash and Shares. In no event may any Optionee
receive grants of SARs with respect to more than 250,000 Shares
in any calendar year.
6.03 Restricted Shares.
(a) Grant. Restricted Shares may be granted in the form of Shares or
share units having a value equal to an identical number of Shares.
The employment conditions and the length of the period for vesting
of Restricted Shares shall be established by the Administrator at
time of grant. In the event that a share certificate is issued in
respect of Restricted Shares, such certificate shall be registered
in the name of the Optionee but shall be held by the Company until
the end of the restricted period. During the restricted period,
Restricted Shares may not be sold, assigned, transferred or
otherwise disposed of, or pledged or hypothecated as collateral
for a loan or as security for the performance of any obligation
or for any other purpose as the Administrator shall determine.
(b) Settlement. The Administrator shall determine, in its sole
Discretion, whether Restricted Shares granted in the form of share
units shall be paid in cash, Shares, or a combination of cash and
Shares.
6.04 Conditions of Grants; Vesting, and Repurchase Rights. Subject to the
terms of the Plan, the Administrator shall determine the provisions,
terms, and conditions of each Grant including, but not limited to,
the Grant vesting schedule, repurchase provisions, rights of first
refusal, forfeiture provisions, form of payment (cash, Shares, or
other consideration) upon settlement of the Grant, payment
contingencies, and satisfaction of any performance criteria, provided,
however, unless specifically provided otherwise in the relevant Option
Agreement, one fourth (1/4th) of the Grant shall vest at each of 1st,
2nd, 3rd, and 4th anniversaries following the issuance of such Grant
so long as the Optionee provides Continuous Service to the Company.
6.05 Acquisitions and Other Transactions. The Administrator may issue
Grants under the Plan in settlement, assumption or substitution for,
outstanding Grants or obligations to grant future Grants in connection
with the Company or a Related Entity acquiring another entity, an
interest in another entity or an additional interest in a Related
Entity whether by merger, share purchase, asset purchase, or other
form of transaction.
6.06 Deferral of Grant Payment. The Administrator may establish one or
more programs under the Plan to permit selected Optionees the
opportunity to elect to defer receipt of consideration upon exercise
of a Grant, satisfaction of performance criteria, or other event that
absent the election would entitle the Optionee to payment or receipt
of Shares or other consideration under a Grant. The Administrator
may establish the election procedures, the timing of such elections,
the mechanisms for payments of, and accrual of interest or other
earnings, if any, on amounts, Shares or other consideration so
deferred, and such other terms, conditions, rules and procedures
that the Administrator deems advisable for the administration of
any such deferral program.
6.07 Award Exchange Programs. The Administrator may establish one or more
programs under the Plan to permit selected Optionees to exchange a
Grant under the Plan for one or more other types of Grants under the
Plan on such terms and conditions as determined by the Administrator
from time to time.
6.08 Separate Programs. The Administrator may establish one or more
separate programs under the Plan for the purpose of issuing particular
forms of Grants to one or more classes of Optionees on such terms and
conditions as determined by the Administrator from time to time.
6.09 Early Exercise. The Option Agreement may, but need not, include a
provision whereby the Optionee may elect, at any time while being an
Employee, Director, or Consultant, to exercise any part or all of
the Grant prior to full vesting of the Grant. Any unvested Shares
received pursuant to such exercise may be subject to a repurchase
right in favor of the Company or a Related Entity or to any other
restriction the Administrator determines to be appropriate.
6.10 Option Period. The Option Period shall be the term stated in the
Option Agreement up to ten (10) years from the Effective Date of
Grant thereof.
6.11 Transferability of Grants. No Grant may be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than
by will or by the laws of descent or distribution and may be exercised,
during the lifetime of the Optionee, only by the Optionee; provided,
however, during the lifetime of the Optionee, SARs may be transferred
by gift to members of the Optionee's Immediate Family to the extent
and manner determined by the Administrator.
6.12 Time of Grants. The date of grant of a Grant shall, for all
purposes, be the date on which the Administrator makes the
determination to grant such Grant, or such other date as is
determined by the Administrator. Notice of the grant determination
shall be given to each Employee, Director, or Consultant to whom a
Grant is so granted within a reasonable time after the date of such
grant.
6.13 Buyout Provisions. The Administrator may at any time offer to buy
out for a payment in cash or Shares or other consideration, any Grant
previously granted based on such terms and conditions as the
Administrator shall establish and communicate to the Optionee at
the time such offer is made.
Article VII. Withholding
The Company shall have the right to deduct from any payment to be made pursuant
to the Plan the amount of any taxes required by law to be withheld therefrom,
or to require an Optionee to pay to the Company such amount required to be
withheld prior to the issuance or delivery of any Shares or the payment of cash
under the Plan. The Administrator may, in its discretion, permit an Optionee
to elect to satisfy such withholding obligation by having the Company retain
the number of Shares whose Fair Market Value equals the amount required to be
withheld. Any fraction of a Share required to satisfy such obligation shall
be disregarded and the amount due shall instead be paid in cash by the
Optionee.
Article VIII. Exercise of Grant
8.01 Procedure for Exercise; Rights as a Shareholder.
(a) Any Grant granted hereunder shall be exercisable at such times and
under such conditions as determined by the Administrator under the
terms of the Plan and specified in the Option Agreement.
(b) A Grant shall be deemed to be exercised when written notice of such
exercise has been given to the Company, as in a form required under
the applicable Option Agreement, in accordance with the terms of
the Grant by the person entitled to exercise the Grant and full
payment for the Shares is made with respect to which the Grant is
exercised. Until the issuance (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the share certificate evidencing such
Shares, no right to vote or receive dividends or any other rights
as a shareholder shall exist with respect to Shares subject to a
Grant, notwithstanding the exercise of an Option or other Grant.
The Company shall issue (or cause to be issued) such share
certificate as soon as practicable following the exercise of the
Grant. No adjustment will be made for a dividend or other right
for which the record date is prior to the date the share
certificate is issued, except as provided in the Option Agreement
or Article X, below.
8.02 Exercise of Option or SAR Following Termination of Continuous Service.
If the Optionee's Continuous Service is terminated for any reason other
than death or Disability, such Optionee shall have the right to
exercise the Option or SAR at any time within thirty (30) days (or
such other period of time not exceeding three (3) months as is
determined by the Administrator at the time of granting the Option),
following the date such Optionee ceases his or her Continuous Service
to the extent that such Optionee was entitled to exercise the Option
or SAR at the date of such termination; provided, however, that no
Option or SAR shall be exercisable after the expiration of the term
set forth in the applicable Option Agreement. To the extent that such
Optionee was not entitled to exercise the Option or SAR at the date of
such termination, or if such Optionee does not exercise such Option or
SAR (which such Optionee was entitled to exercise) within the time
specified herein, the Option or SAR shall terminate.
8.03 Death or Disability of Optionee. If an Optionee's Continuous Service
is terminated due to death or Disability, the Option or SAR may be
exercised at any time within six (6) months following the date of death
or termination of employment due to Disability, in the case of death,
by the Optionee's estate or by a person who acquired the right to
exercise the Option or SAR by bequest or inheritance, or, in the case
of Disability, by the Optionee, but in any case only to the extent the
Optionee was entitled to exercise the Option or SAR at the date of his
or her termination of Continuous Service by death or Disability;
provided, however, that no Option or SAR shall be exercisable after
the expiration of the term set forth in the Option Agreement. To the
extent that such Optionee was not entitled to exercise such Option or
SAR at the date of his or her termination of employment by death or
Disability or if such Option or SAR is not exercised (to the extent it
could be exercised) within the time specified herein, the Option or SAR
shall terminate.
8.04 Extension of Time to Exercise. Notwithstanding anything to the
contrary in this Article VIII, the Administrator may at any time and
from time to time prior to the termination of a Non-statutory Stock
Option, with the consent of the Optionee, extend the period of time
during which the Optionee may exercise his or her Non-statutory Stock
Option following the date the Optionee ceases Continuous Services;
provided, however, that:
(a) the maximum period of time during which a Non-statutory Stock
Option shall be exercisable following such termination date shall
not exceed an aggregate of six (6) months;
(b) the Non-statutory Stock Option shall not become exercisable after
the expiration of the term of such Option as set forth in the
Option Agreement as a result of such extension; and
(c) notwithstanding any extension of time during which the
Non-statutory Stock Option may be exercised, such Option, unless
otherwise amended by the Administrator, shall only be exercisable
to the extent to which the Optionee was entitled to exercise it on
the date the Optionee ceased Continuous Services.
To the extent that such Optionee was not entitled to exercise the Option at
the date of such termination, or if such Optionee does not exercise an Option
which the Optionee was entitled to exercise within the time specified herein,
the Option shall terminate.
Article IX. Conditions Upon Issuance of Shares
9.01 No Violation of Law. Shares shall not be issued pursuant to a Grant or
the exercise of a Grant unless the exercise of such Grant and the
issuance and delivery of such Shares pursuant thereto shall comply with
all Applicable Laws, and the Administrator may further subject any
issuance of Shares to the approval of counsel for the Company with
respect to such compliance.
9.02 Execution of Documents. As a condition to the exercise of a Grant, the
Administrator may require the person exercising such Grant to execute an
investment representation statement acceptable to the Company or a share
purchase agreement acceptable to the Company, each in forms approved by
the Administrator from time to time, in addition to any other instrument
the Administrator deems necessary or advisable.
Article X. Adjustments Upon Changes in Capitalization or Corporate Transaction
10.01 Adjustments upon Changes in Capitalization. Subject to any required
action by the shareholders of the Company, the number of Shares covered
by each outstanding Grant, and the number of Shares which have been
authorized for issuance under the Plan but as to which no Grants have
yet been granted or which have been returned to the Plan, the exercise
or purchase price of each such outstanding Grant, as well as any other
terms that the Administrator determines require adjustment shall be
proportionately adjusted for:
(a) any increase or decrease in the number of issued Shares resulting
from a share split, reverse share split, share dividend,
combination or reclassification of the Shares, or similar
transaction affecting the Shares;
(b) any other increase or decrease in the number of issued Shares
effected without receipt of consideration by the Company; or
(c) as the Administrator may determine in its discretion, any other
transaction with respect to Shares to which Section 424(a) of the
Code applies or a similar transaction; provided, however, that
conversion of any convertible securities of the Company shall not
be deemed to have been "effected without receipt of consideration."
Such adjustment shall be made by the Administrator and its determination shall
be final, binding and conclusive. Except as the Administrator determines, no
issuance by the Company of shares of any class, or securities convertible into
shares of any class, shall affect, and no adjustment by reason hereof shall be
made with respect to, the number or price of Shares subject to a Grant.
10.02 Corporate Transaction. In the event of a proposed Corporate
Transaction, subject to the actual consummation of the proposed
transaction, each outstanding Grant shall automatically become fully
vested and exercisable, unless the Grant is assumed or substituted
with an equivalent option or right by the successor corporation or the
Parent or Subsidiary thereof. If the successor corporation refuses to
assume or substitute for the Grant, the Administrator shall notify the
Optionee that the Grant shall be fully vested and exercisable with
respect to all of the Shares underlying the Grant (including Shares as
to which it would not otherwise be vested or exercisable) for a period
of fifteen (15) days from the date of such notice. If the Grant thus
becomes fully vested and exercisable but is not exercised during this
fifteen (15) day period, it shall terminate immediately prior to the
effective time of such Corporate Transaction. For the purposes of this
Section 10.02, the Grant shall be considered assumed or substituted
with an equivalent option or right if, in connection with the Corporate
Transaction, the Grant is replaced with a comparable option or right
with respect to shares of the successor corporation or Parent or
Subsidiary thereof or is replaced with a cash incentive program of the
successor corporation or Parent or Subsidiary thereof which preserves
the compensation element of such Grant existing at the time of the
Corporate Transaction and provides for subsequent payout in accordance
with the same vesting schedule applicable to such Grant. The
determination of Grant comparability above shall be made by the
Administrator and its determination shall be final, binding and
conclusive.
10.03 Liquidation Event. In the event of a proposed Liquidation Event, the
Administrator shall notify each Optionee of the proposed event at least
twenty (20) days prior to the proposed effective date of the
Liquidation Event. The Administrator in its discretion may provide
for an Optionee to have the right to exercise his or her Grant until
ten (10) days prior to the proposed effective date for the Liquidation
Event with respect to all Shares underlying the Grant (including Shares
as to which it would not otherwise be vested or exercisable), subject
to the actual completion of the Liquidation Event at the time and in
the manner contemplated. In addition, the Administrator may provide
that any Company repurchase option applicable to any Shares issued upon
grant or an exercise of a Grant shall lapse as to all Shares, subject
to the actual completion of the Liquidation Event at the time and in
the manner contemplated. Any unexercised Grant shall terminate
immediately prior to effective time of the Liquidation Event.
Article XI. Effective Date and Term of Plan
The Plan, and any amendments to the Plan, shall become effective upon its
adoption by the Board. It shall continue in effect until June 14, 2020,
unless sooner terminated. Subject to Applicable Laws, Grants may be granted
under the Plan upon its becoming effective.
Article XII. Amendment, Suspension or Termination of the Plan
The Board may at any time amend, suspend or terminate the Plan. No Grant may
be granted during any suspension of the Plan or after termination of the Plan.
Any amendment, suspension or termination of the Plan (including termination
of the Plan pursuant to this Article XII) shall not affect Grants already
granted, and such Grants shall remain in full force and effect as if the Plan
had not been amended, suspended or terminated, unless mutually agreed otherwise
between the Optionee and the Administrator, which agreement must be in writing
and signed by the Optionee and the Company.
Article XIII. Availability of Shares; No Issuance in Violation of Law
13.01 Availability of Shares. The Company, during the term of the Plan,
will at all times keep available such number of unissued Shares as
shall be sufficient to satisfy the requirements of the Plan.
13.02 No Issuance in Violation of Law. The inability of the Company to
obtain authority from any regulatory body having jurisdiction under
Applicable Law, which authority is deemed by the Company's counsel
to be necessary to the lawful issuance and sale of any Shares
hereunder, relieve the Company of any liability in respect of the
failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.
Article XIV. No Effect on Terms of Employment/Consulting Relationship
The Plan shall not confer upon any Optionee any right with respect to the
Optionee's Continuous Service, nor shall it interfere in any way with his or
her right or the Company's or a Related Entity's right to terminate the
Optionee's Continuous Service at any time, with or without cause.
Article XV. No Effect on Retirement and Other Benefit Plans
Except as specifically required by law or provided in a retirement or other
benefit plan of the Company or a Related Entity, Grants shall not be deemed
compensation for purposes of computing benefits or contributions under any
retirement plan of the Company or a Related Entity, and shall not affect any
benefits under any other benefit plan of any kind or any benefit plan
subsequently instituted under which the availability or amount of benefits is
related to level of compensation.
Article XVI. Liability of the Company; Consents
16.01 Consents. Optionee shall be responsible for obtaining any governmental
or other official consent that may be required by any country or jurisdiction
in order to permit the grant or exercise of any Grant. Neither the Company nor
any Related Entity shall be responsible for any failure by an Optionee to
obtain such consent or for any tax or other liability to which an Optionee may
become subject to as a result of his or her participation in the Plan.
EX-5
3
ipru_s8june202014ex51.txt
OPINION OF COUNSEL JAAK OLESK, ESQ.
Exhibit 5.1
Jaak Olesk
Law Offices of Jaak Olesk
9107 Wilshire Boulevard Suite 450
Beverly Hills, CA 90210
310 272 7190
June 19, 2014
Innovative Product Opportunities Inc.
7235-88077 Belshire Gate,
Mississauga Ontario, Canada
L5N 8M1
Re: Registration Statement on Form S-8
Gentlemen:
We have acted as counsel to Innovative Product Opportunities Inc, a Delaware
corporation (the "Company"), in connection with the preparation and filing with
the Securities and Exchange Commission of a Registration Statement on Form S-8
(the "Registration Statement"), pursuant to which the Company is registering
the issuance under the Securities Act of 1933, as amended, of a total of
200,000,000 shares (the "Shares") of its common stock, par value $0.0001
(the "Common Stock"). This opinion is being rendered in connection with
the filing of the Registration Statement. All capitalized terms used herein
and not otherwise defined shall have the respective meanings given to them
in the Registration Statement.
In connection with this opinion, we have examined the Company's Amended and
Restated Certificate of Incorporation, as amended, and By-laws, both as
currently in effect and such other records of the corporate proceedings of
the Company and certificates of the Company's officers as we deemed relevant;
and the Registration Statement and the exhibits thereto.
We have assumed the genuineness of all signatures, the legal
capacity of natural persons, the authenticity of all documents submitted to
me as originals, the conformity to original documents of all documents
submitted to me as certified or photostatic copies and the authenticity of
the originals of such copies.
Based upon the foregoing, we are of the opinion that (i) the Shares have
been duly and validly authorized by the Company and (ii) the Shares, when
issued as described in the Registration Statement, will be duly and validly
issued,fully paid and non-assessable shares of Common Stock.
Our opinion is limited to the Delaware General Corporation Law and federal
securities laws of the United States and we express no opinion with respect
to the laws of any other jurisdiction. No opinion is expressed herein with
respect to the qualification of the Shares under the securities or blue sky
laws of any state or any foreign jurisdiction. This opinion is limited to
the matters stated herein. We disavow any obligation to update this opinion
or advise you of any changes in my opinion in the event of changes in the
applicable laws or facts or if additional or newly discovered information is
brought to my attention.
We hereby consent to the use of this opinion as Exhibit 5.1 to the Registration
Statement. In giving this consent, we do not thereby concede that we come
within the categories of persons whose consent is required by the Act or the
general rules and regulations promulgated thereunder.
Very truly yours,
/s/Jaak Olesk
-----------------------
Jaak Olesk
EX-23
4
ipru_s8june202014ex231.txt
CONSENT OF SILBERSTEIN UNGAR PLLC
Exhibit 23.1
Silberstein Ungar, PLLC CPAs and Business Advisors
Phone (248) 203-0080
Fax (248) 281-0940
30600 Telegraph Road, Suite 2175
Bingham Farms, MI 48025-4586
www.sucpas.com
June 18, 2014
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of Directors
Innovative Product Opportunities, Inc.
Mississauga, Ontario, Canada
To Whom It May Concern:
Silberstein Ungar, PLLC hereby consents to incorporation by reference in the
Form S-8, Registration Report under the Securities Act of 1933, filed by
Innovative Product Opportunities Inc. of our report dated April 12, 2014,
relating to the financial statements of Innovative Product Opportunities Inc.
as of and for the year ending December 31, 2013 and for the period from
April 3, 2009 (inception) to December 31, 2013..
Sincerely,
/s/Silberstein Ungar, PLLC
Silberstein Ungar, PLLC