X0201 4 2003-12-31 0 0000875296 URECOATS INDUSTRIES INC urt 0001168337 KURTZ RICHARD C/O URECOATS INDUSTRIES INC. 718 SOUTH MILITARY TRAIL DEERFIELD BEACH FL 33442 1 0 1 1 Chairman of the Board Common Stock, PV $.01 2004-01-01 4 M 0 10684800 0 A 16827217 D Series C Preferred Option (Right to Buy) 20 2003-12-31 4 M 0 71752 0 D 2003-12-31 2004-01-04 Preferred Stock, Series C, PV $1.00 71752 39755 D Preferred Stock, Series C, PV $1.00 0 2003-12-31 4 M 0 71752 0 A 2003-12-31 2003-12-31 Common Stock, PV $.01 2870080 460245 D Series C Preferred Option (Right to Buy) 20 2003-12-31 4 E 0 39755 0 D 2003-12-31 2003-12-31 Preferred Stock, Series C, PV $1.00 0 0 D Preferred Stock, Series C, PV $1.00 2004-01-01 4 M 0 460245 0 D 2003-12-31 2003-12-31 Common Stock, PV $.01 10684800 0 D On January 8, 2002, the Company and I agreed to a 250,000 Series C Preferred Stock Option Agreement to fund the operating requirements in 2002 ("First Series C Option"). The options were exercisable at $20.00 each for each share of Series C Convertible Preferred Stock and convertible into restricted common stock after a six month waiting period from the date of each exercise or on the mandatory date of conversion as set forth in the Certificate of Designation of Series C Convertible Preferred Stock. The Mandatory Conversion Date was January 1, 2004. The conversion ratio price (for determing the ratio for converting the Series C Preferred Stock into restricted shares of common stock) was fixed, as adjusted for the reverse split and share consolidation in 2002, at $2.20 per share or 9.1 shares of restricted common stock for each share of Series C Preferred Stock. The 250,000 shares of Series C Preferred Stock converted into 2,275,000 shares of restricted common stock. On March 21, 2003, the Company and I agreed to a 250,000 Second Series C Preferred Stock Option Agreement to fund the operating requirements in 2003 ("Second Series C Option"). The options were exercisable at $20.00 each for each share of Series C Convertible Preferred Stock and convertible into restricted common stock after a six month waiting period from the date of each exercise or on the mandatory date of conversion as set forth in the Certificate of Designation of Series C Convertible Preferred Stock. The Mandatory Conversion Date was January 1, 2004. The conversion ratio price (for determing the ratio for converting the Series C Preferred Stock into restricted shares of common stock) was fixed at $.50 per share or 40 shares of restricted common stock for each share of Series C Preferred Stock. The 210,245 shares of Series C Preferred Stock converted into 8,409,800 shares of restricted common stock. This transaction represents the cancellation of the remaining number of the unexercised options under the Second Series C Preferred Stock Option Agreement, which expired on December 31, 2003. Refer to Footnote 2. For Richard J. Kurtz by Michael T. Adams, AS/POA 2004-01-05