SECURITIES PURCHASE
AGREEMENT


 


THIS SECURITIES
PURCHASE AGREEMENT (this “Agreement”) is made as of the later date set forth on the signature pages hereto,
by and among BioDrain Medical, Inc., a Minnesota corporation (the “Company”), and the purchaser whose name and
address are set forth on the signature page annexed hereto (the “Purchaser”). The foregoing parties are sometimes
referred to hereinafter individually as a “Party” or collectively as the “Parties.”


 


RECITALS


 


WHEREAS, pursuant
to the Subscription Application of the Purchaser of even date herewith (each a “Subscription Application”),
and pursuant to Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506
promulgated thereunder, the Company desires to sell to the Purchaser and the Purchaser desires to acquire from the Company that
number of units of the Company’s securities (the “Units”) as are set forth on the Purchaser’s signature
page annexed hereto, at a price of $0.07 per Unit, subject to the terms and conditions of this Agreement and the other documents
or instruments contemplated hereby; and


 


WHEREAS, each
Unit consists of: (i) one share of the Company’s $0.01 par value common stock (the “Common Stock”), and
(ii) a five-year warrant, in the form of Exhibit A attached hereto, to purchase one (1) share of Common Stock at an exercise
price of $0.15 per share (collectively, “Warrants”).


 


NOW, THEREFORE,
in consideration of the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties do hereby covenant and agree as follows:


 


AGREEMENT


 


Section 1.              Sale
and Issuance of Units.


 


1.1           Subject
to the terms and conditions of this Agreement, the Company’s board of directors has authorized the sale and issuance of up
to 7,142,858 Units (the “Offering”). At the Closing (as defined below), the Company shall sell and issue to
the Purchaser, and the Purchaser shall purchase from the Company, the number of Units set forth on the Purchaser’s signature
page hereto. The Company intends to enter into this same form of purchase agreement with certain other purchasers (collectively,
the “Other Purchasers”, and collectively with the Purchaser, the “Purchasers”) and expects
to complete sales of Units to them. The maximum number of Units that the Company may sell to the Purchasers is 7,142,858, unless
a higher amount is authorized by the Company’s board of directors in its sole discretion. The Purchaser’s obligations
hereunder are expressly not subject to or conditioned on the purchase of Units by any or all of such Other Purchasers.


 


1.2           The
aggregate purchase price for the Units to be purchased by the Purchaser (the “Purchase Price”) shall be the
amount set forth on the Purchaser’s signature page hereto.


 



    	 



    	 



    

 


Section 2.              The
Closing.


 


2.1           The
closing of the sale and issuance to the Purchaser (the “Closing”) shall take place on the date when the Company’s
legal counsel, Richardson & Patel, LLP (the “Escrow Agent”), receives all of the materials required pursuant
to the Escrow Agreement annexed hereto as Exhibit B (the “Escrow Agreement”), including, without limitation,
immediately available funds via wire transfer or a certified check equal to the subscription amount set forth on the Purchaser’s
signature page hereto.


 


2.2           At
the Closing, the Company shall instruct its transfer agent to issue and deliver to the Purchaser a certificate representing the
Common Stock, against receipt by the Escrow Agent of a certified bank check or wire transfer in an aggregate amount equal to the
Purchase Price for the Units set forth on the Purchaser’s signature page hereto.


 


Section 3.              Representations
and Warranties of the Company.


 


The Company hereby
represents and warrants to the Purchaser as follows:


 


3.1           Organization.


 


The Company is duly
organized, validly existing and in good standing under the laws of the State of Minnesota and is qualified to conduct its business
as a foreign corporation in each jurisdiction where the failure to be so qualified would have a material adverse effect on the
Company.


 


3.2           Authorization
of Agreement, Etc.


 


The execution, delivery,
and performance by the Company of its obligations under this Agreement, the Escrow Agreement, the Subscription Application, the
Warrants and each other document or instrument contemplated hereby or thereby (collectively, the “Transaction Documents”)
has been duly authorized by all requisite corporate action on the part of the Company; and this Agreement and the Transaction Documents
have been duly executed and delivered by the Company. Each of the Transaction Documents, when executed and delivered by the Company,
constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium, or other similar laws affecting creditors’
rights and remedies generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement
is sought in a proceeding at law or in equity).


 


3.3           Issuance
of Common Stock and Warrants.


 


The Units are
duly authorized and, when paid for and issued in accordance with the Transaction Documents, will be duly and validly issued, fully
paid, and nonassessable, free and clear of all liens.


 


Section 4.          Representations
and Warranties of the Purchaser.


 


The Purchaser hereby
represents and warrants to the Company as follows:


 



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4.1           Authorization
of the Documents.


 


The Purchaser has all
requisite power and authority (corporate or otherwise) to execute, deliver, and perform its obligations under the Transaction Documents,
and the execution, delivery, and performance by the Purchaser of its obligations under the Transaction Documents has been duly
authorized by all requisite action on the part of the Purchaser and each such Transaction Document, when executed and delivered
by the Purchaser, shall constitute the valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar
laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding at law or in equity).


 


4.2           Investment
Representations.


 


All of the representations,
warranties, and information of the Purchaser as set forth in the Purchaser’s Subscription Application are incorporated by
reference herein, shall be deemed to be a part hereof, and shall be true and correct at the Closing with the same force and effect
as if made by the Purchaser as of the date thereof.


 


4.3           Access
to Company Information.


 


The Purchaser acknowledges
that it has been afforded access and the opportunity to obtain all financial and other information concerning the Company that
such Purchaser desires (including the opportunity to meet with the Company’s executive officers, either in person or telephonically).
The Purchaser has reviewed copies of all reports filed by the Company (the “Filings”) with the Securities and
Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), since December 31, 2009, all of which are available for review at www.sec.gov. The Purchaser further acknowledges
that it is familiar with the contents of the Filings and that there is no further information about the Company that the Purchaser
desires in determining whether to acquire the Units in the Offering.


 


4.4           Risk
Factors


 


The Purchaser acknowledges
that the Company is a development stage company with limited revenues and currently not operating with positive cash-flow from
operations, and there can be no assurances that the Company will ever develop its operations as currently contemplated. The Purchaser
acknowledges that an investment in the Units is extremely speculative and that there is a substantial likelihood that the investor
will lose their entire investment.


 


Section 5.             Brokers
and Finders.


 


The Company shall not
be obligated to pay any commission, brokerage fee, or finder’s fee based on any alleged agreement or understanding between
the Purchaser and a third person in respect of the transactions contemplated hereby. The Purchaser hereby agrees to indemnify the
Company against any claim by any third person for any commission, brokerage fee, finder’s fee, or other payment with respect
to this Agreement or the transactions contemplated hereby based on any alleged agreement or understanding between the Purchaser
and any such third person, whether express or implied from the actions of the Purchaser or anyone acting or purporting to act on
behalf of the Purchaser.


 



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Section 6.              Indemnification
by the Purchaser.


 


The Purchaser hereby
agrees to indemnify and defend (with counsel acceptable to the Company) the Company and its officers, directors, employees, and
agents and hold them harmless from and against any and all liability, loss, damage, cost, or expense, including costs and reasonable
attorneys’ fees, incurred on account of or arising from:


 


(a)          any
breach of or inaccuracy in any of the Purchaser’s representations, warranties, or agreements made herein, in any of the Transaction
Documents, or in any document or instrument contemplated hereby or thereby; and


 


(b)          any
action, suit, or proceeding based on a claim that the Purchaser’s representations, warranties or agreements made herein,
in any of the Transaction Documents, or in any document or instrument contemplated hereby or thereby, were inaccurate or misleading,
or otherwise cause for obtaining damages or redress from the Company or any current or former officer, director, employee, or agent
of the Company under the Securities Act.


 


Section 7.              Successors
and Assigns.


 


This Agreement shall
bind and inure to the benefit of the Company, the Purchaser, and their respective successors and assigns.


 


Section 8.              Entire
Agreement.


 


This Agreement and
the other writings and agreements referred to in this Agreement or delivered pursuant to this Agreement contain the entire understanding
of the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings, whether written
or verbal, among the Parties with respect thereto.


 


Section 9.              Notices.


 


All notices, demands
and requests of any kind to be delivered to any Party in connection with this Agreement shall be in writing and shall be deemed
to have been duly given if personally delivered or if sent by internationally-recognized overnight courier or by registered or
certified mail, return receipt requested and postage prepaid, addressed as follows:


 


if to the Company, to:


 


BioDrain Medical, Inc.


2915 Commers Drive, Suite 900


Eagan, MN 55121


Attention: Bob Myers, Acting Chief
Financial Officer


 



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with a copy to:


 


Richardson & Patel LLP


750 Third Avenue


9th Floor


New York, NY 10017


Attention: Kevin Friedmann


 


if to the Purchaser, to:


 


at the address of the Purchaser
set forth on the Purchaser’s signature page hereto;


 


or to such other address
as the Party to whom notice is to be given may have furnished to the other Parties to this Agreement in writing in accordance with
the provisions of this Section. Any such notice or communication shall be deemed to have been received (i) in the case of personal
delivery, on the date of such delivery, (ii) in the case of internationally-recognized overnight courier, on the next business
day after the date when sent and (iii) in the case of mailing, on the third business day following that on which the piece of mail
containing such communication is posted.


 


Section 10.            Amendments.


 


This Agreement may
not be modified or amended, nor may any provision of this Agreement be waived, except as evidenced by a written agreement duly
executed by Purchasers who hold a majority of the Common Stock and shares of Common Stock underlying Warrants acquired in the Offering.


 


Section 11.            Governing
Law; Waiver of Jury Trial.


 


All questions concerning
the construction, interpretation, and validity of this Agreement shall be governed by and construed and enforced in accordance
with the domestic laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether
in the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than
the State of New York. In furtherance of the foregoing, the internal law of the State of New York will control the interpretation
and construction of this Agreement, even if under such jurisdiction’s choice of law or conflict of law analysis, the substantive
law of some other jurisdiction would ordinarily or necessarily apply.


 


Section 12.             Submission
to Jurisdiction.


 


Any legal action or
proceeding with respect to this Agreement may be brought in the courts of the State of New York and the United States of America
located in the Borough of Manhattan in the City of New York, New York, and, by execution and delivery of this Agreement, the Company
hereby accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction of the aforesaid courts.
The Purchaser hereby irrevocably waives, in connection with any such action or proceeding, any objection, including, without limitation,
any objection to the venue or based on the grounds of forum non conveniens, which it may now or hereafter have to the bringing
of any such action or proceeding in such respective jurisdictions. The Purchaser hereby irrevocably consents to the service of
process of any of the aforementioned courts in any such action or proceeding by the mailing of copies thereof by registered or
certified mail, postage prepaid, to it at its address as set forth herein.


 



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Section 13.            Severability.


 


It is the desire and
intent of the Parties that the provisions of this Agreement be enforced to the fullest extent permissible under the law and public
policies applied in each jurisdiction in which enforcement is sought. Accordingly, in the event that any provision of this Agreement
would be held in any jurisdiction to be invalid, prohibited, or unenforceable for any reason, such provision, as to such jurisdiction,
shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability
of such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as
not to be invalid, prohibited, or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn,
without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in
any other jurisdiction.


 


Section 14.            Independence
of Agreements, Covenants, Representations and Warranties.


 


All agreements and
covenants hereunder shall be given independent effect so that if a certain action or condition constitutes a default under a certain
agreement or covenant, the fact that such action or condition is permitted by another agreement or covenant shall not affect the
occurrence of such default, unless expressly permitted under an exception to such covenant. In addition, all representations and
warranties hereunder shall be given independent effect so that if a particular representation or warranty proves to be incorrect
or is breached, the fact that another representation or warranty concerning the same or similar subject matter is correct or is
not breached will not affect the incorrectness of or a breach of a representation and warranty hereunder. The exhibits and any
schedules annexed hereto are hereby made part of this Agreement in all respects.


 


Section 15.            Counterparts.


 


This Agreement may
be executed in any number of counterparts, and each such counterpart of this Agreement shall be deemed to be an original instrument,
but all such counterparts together shall constitute but one agreement. Facsimile or PDF counterpart signatures to this Agreement
shall be acceptable and binding.


 


Section 16.            Headings.


 


The section and paragraph
headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement.


 



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Section 17.            Expenses.


 


Each Party shall pay
its own fees and expenses incurred in connection with the negotiation, execution, delivery and performance of this Agreement, the
Transaction Documents and any document or instrument contemplated hereby or thereby.


 


Section 18.            Preparation
of Agreement.


 


The Company prepared
this Agreement and the Transaction Documents solely on its behalf. Each Party to this Agreement acknowledges that: (i) the Party
had the advice of, or sufficient opportunity to obtain the advice of, legal counsel separate and independent of legal counsel for
any other Party hereto; (ii) the terms of the transactions contemplated by this Agreement are fair and reasonable to such Party;
and (iii) such Party has voluntarily entered into the transactions contemplated by this Agreement without duress or coercion. Each
Party further acknowledges that such Party was not represented by the legal counsel of any other Party hereto in connection with
the transactions contemplated by this Agreement, nor was he or it under any belief or understanding that such legal counsel was
representing his or its interests. Each Party agrees that no conflict, omission, or ambiguity in this Agreement, or the interpretation
thereof, shall be presumed, implied, or otherwise construed against any other Party to this Agreement on the basis that such Party
was responsible for drafting this Agreement.


 


Section 19.            Use
of Proceeds.


 


The Company shall use
the net proceeds from the Offering for general working capital and general corporate purposes and debt service obligations.


 


Section 20.            Signature
Page.


 


It is hereby agreed
that the execution by the Purchaser of this Subscription Agreement, in the place set forth herein, will constitute agreement by
the Purchaser to be bound by the terms and conditions of (1) this Subscription Agreement and (2) the Warrant, in the form attached
hereto as Exhibit A.


 


[signature
pages follow]


 



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IN WITNESS WHEREOF,
each of the undersigned has duly executed this Securities Purchase Agreement as of the later date set forth on the signature pages
below.


 


	 	 	COMPANY:
	 	 	 
	Date: _______________, 2012	 	BioDrain Medical, Inc.
	 	 	 
	 	By:	 
	 	 	Name: Joshua Kornberg
	 	 	Title:   Chief Executive Officer


 


[Purchaser’s
Signature Page FollowS]


 



    	 



    	 



    

 


Purchaser
Signature Page to BioDrain Medical, Inc. 


Securities
Purchase Agreement


 


	PURCHASER:	 	 
	 	 	 
	 	 	 
	Name of Purchaser (Individual or	 	Name of Individual representing
	  Institution)	 	Purchaser (if an Institution)
	 	 	 
	 	 	 
	Title of Individual representing	 	Signature of Individual Purchaser or
	  Purchaser (if an Institution)	 	Individual representing Purchaser
	 	 	 
	Address:	 	 
	 	 	 
	Telephone:	 	 
	 	 	 
	Facsimile:	 	 
	 	 	 
	 	 	 
	Number of Units	 	 
	 	 	 
	 	 	 
	Aggregate Purchase Price	 	 
	 	 	 
	 	 	 
	Date