Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On June 16, 2022, the Board of Directors of United Health Products, Inc. (the
"Company") approved the following compensatory arrangements for certain of its
officers and directors:
In recognition of his agreement to accept stock in lieu of cash salary since his
appointment in December 2020, his financial support for the Company through
approximately $500,000 of cash loans during the period when the ongoing
Securities and Exchange Commission ("SEC") investigation of the Company
restricted its ability to access external capital, and his efforts to
successfully negotiate a settlement with the SEC, the Company has amended the
Restricted Stock Unit Agreement of Brian Thom, the Company's Chief Executive
Officer and Chairman Pro Tempore (the "Thom RSU Agreement"), to increase the RSU
grant by 15% to 13.225 million from 11.50 million RSUs, and to increase the
portion of such grant that would vest upon the receipt of a Premarket approval
from the Food and Drug Administration to 20% from 5%. All other terms of the
Thom RSU Agreement remain unchanged.
In recognition of his expanded duties as Independent Director and his
contribution to the resolution and settlement of the SEC investigation, the
Company has entered into a Restricted Stock Unit Agreement with Robert Denser
wherein he has received a grant of 1.0 million RSUs which shall vest upon the
earlier of the Company generating $30,000,000 of cumulative revenue starting in
January 2022 or the occurrence a Trigger Event which generally represents a
change of control transaction by the Company. Mr. Denser has received no other
compensation for his service to the Company since 2019.
Item 8.01. Other Events.
On June 15, 2022, the SEC's investigation of the Company, initially reported in
the Company's Annual Report on Form 10-K for the year ended December 31, 2021,
was settled through the filing of a consent judgment on the terms which were
previously described in the Company's Form 8-K filed on April 29, 2022, without
the Company admitting or denying the SEC's allegations.
In a separate settlement agreement between the SEC and Mr. Douglas Beplate, the
Company's former Chief Executive Officer and a Director, Mr. Beplate will, among
other things, make disgorgement payments to the Company totaling $1,020,000 over
the next six months.
The Company issued a press release on June 16, 2022, providing an update on its
settlement with the SEC. A copy of the press release is being furnished herewith
as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number Description
10.1 Brian Thom Restricted Stock Unit Agreement dated November 24, 2020
(Incorporated by reference to the Form 8-K dated December 2, 2020)
10.2 Amendment to Brian Thom November 24, 2020 RSU Agreement
10.3 Robert Denser Restricted Stock Unit Agreement dated June 17, 2022
99.1 Press release, dated June 16, 2022
104 Cover Page Interactive Data File (formatted as Inline XBRL)
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