Document:

Unassociated Document

AMENDMENT NO. 2 TO LOAN DOCUMENTS

 

THIS AMENDMENT NO. 2 TO LOAN DOCUMENTS (this “Amendment”) is made and entered into as of the 31st day of July, 2011, by and among EASYLINK SERVICES INTERNATIONAL CORPORATION, a Delaware corporation (the “Borrower”), the subsidiaries of the Borrower signatory hereto (each subsidiary of Borrower a party hereto shall be collectively known as the “Subsidiary Guarantors”, and individually as a “Subsidiary Guarantor”), the several banks and other financial institutions and lenders from time to time party hereto (the “Lenders”), and SUNTRUST BANK, in its capacity as administrative agent for the Lenders (the “Administrative Agent”), as issuing bank (the “Issuing Bank”) and as swingline lender (the “Swingline Lender”).

 

BACKGROUND STATEMENT

 

WHEREAS, Borrower has entered into that certain Revolving Credit and Term Credit Agreement, dated as of October 21, 2010 (as may be subsequently amended, restated, supplemented or otherwise modified from time-to-time, the “Credit Agreement”; all capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement), with the Administrative Agent, the Lenders, the Issuing Bank and the Swingline Lender; and

 

WHEREAS, certain of Borrower’s Subsidiaries have changed their legal names from the names set forth in the left-hand column of the chart set forth on Exhibit A hereto (the “Prior Names”) to the respective names set forth opposite the Prior Names in the right-hand column of the chart set forth on Exhibit A hereto (the “New Names”) (such name changes referred to herein as the “Name Changes”); and

 

WHEREAS, Borrower, the Subsidiary Guarantors, Administrative Agent, the Lenders, the Issuing Bank and the Swingline Lender have agreed to amend the Credit Agreement and the other Loan Documents to reflect, among other things, the Name Changes.

 

NOW, THEREFORE, for and in consideration of the above premises and other good and valuable consideration, the receipt and sufficiency of which hereby is acknowledged by the parties hereto, Borrower, the Subsidiary Guarantors, Administrative Agent, the Lenders, the Issuing Bank and the Swingline Lender agree as follows:

 

1.           Ratification.  Except as herein expressly modified or amended, all the terms and conditions of the Credit Agreement and the other Loan Documents are hereby ratified, affirmed, and approved.

 

2.           Modification of Credit Agreement.  As of the date hereof, Borrower hereby reaffirms and restates each and every warranty and representation set forth in the Credit Agreement, except to the extent any such warranty and representation is made as of a specific date.  The Credit Agreement is hereby amended, effective as of the date hereof, as follows:

 

(i)           Section 1.1 is hereby amended by deleting the definition of “Excess Cash Flow” and replacing it with the following substitute definition:

 

  

  

  

“ ‘Excess Cash Flow’ shall mean, for any Fiscal Year, (A) Consolidated Adjusted EBITDA for such Fiscal Year (excluding, for purposes of this definition of Excess Cash Flow, the Acquired Adjusted EBITDA of the Xpedite Business), minus (B) the sum of, without duplication (i) Consolidated Interest Expense paid in cash during such Fiscal Year (including any payment of interest due during such Fiscal Year on a day that is not a Business Day but paid on the next succeeding Business Day in the next succeeding Fiscal Year, provided, that such payment shall not be included in the calculation of Excess Cash Flow for such next succeeding Fiscal Year), (ii) scheduled principal payments on, and any voluntary and mandatory prepayments of, Consolidated Total Debt (including any payments or prepayments permitted or required pursuant to Section 2.12 with respect to Term Loan Borrowings and Section 2.13 (other than pursuant to Section 2.13(a)), paid in cash during such Fiscal Year, (including any principal payment due during such Fiscal Year on a day that is not a Business Day but paid on the next succeeding Business Day in the next succeeding Fiscal Year, provided, that such payment shall not be included in the calculation of Excess Cash Flow for such next succeeding Fiscal Year),  (iii) taxes paid in cash during such Fiscal Year, (iv) Capital Expenditures paid in cash during such Fiscal Year to the extent permitted by this Agreement, (v) cash distributions made during such Fiscal Year to the extent permitted hereunder, (vi) cash payments of the Working Capital Adjustment made during such Fiscal Year, (vii) any increases (or minus any decreases) in Consolidated Net Operating Working Capital (specifically excluding (a) the Working Capital Adjustment and (b) cash payments of the purchase price of the assets acquired in connection with the Purchase Transaction) from the first day to the last day of such Fiscal Year, (viii) cash amounts of any transaction fees and expenses arising in connection with the Purchase Transaction (including without limitation this Agreement) paid during such Fiscal Year, (ix) cash amounts for extraordinary non-recurring payments paid during such Fiscal Year and approved by the Administrative Agent for purposes of this definition, and (x) for Fiscal Year 2011, cash amounts paid in the amount of approximately $1,500,000 constituting the settlement payment made in the India.com v. Sandeep Dalal litigation, in each case measured for such Fiscal Year on a consolidated basis for the Borrower and its Subsidiaries in accordance with GAAP, and rounded down to the nearest $100,000.”

 

(ii)           Section 1.1 is hereby amended by adding the following new definition immediately after the definition of “Consolidated Net Income”:

 

“ ‘Consolidated Net Operating Working Capital’ shall mean, as of any date of determination, for the Borrower and its Subsidiaries on a consolidated basis computed in accordance with GAAP, the excess of (a) current assets less cash and cash equivalents over (b) current liabilities less the current portion of notes payable.  For purposes of this Agreement, “current assets”, “current liabilities”, “cash and cash equivalents” and “notes payable” shall have the respective meanings assigned to them by GAAP.”

 

(iii)           Schedule 4.14 is hereby deleted in its entirety and replaced with Schedule 4.14 attached hereto.

 

(iv)           All references therein to the Prior Names shall refer to the New Names.

 

  

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3.           Modification of Other Loan Documents.  As of the date hereof, Borrower and the Subsidiary Guarantors hereby reaffirm and restate each and every warranty and representation set forth in the other Loan Documents, except to the extent any such warranty and representation is made as of a specific date.  Each of the other Loan Documents are hereby amended, effective as of the date hereof, so that all references therein to the Prior Names shall refer to the New Names.  In addition, the terms of the Loan Documents are hereby further amended, effective as of the date hereof, so that all references therein to the Credit Agreement or any other Loan Document shall refer to Credit Agreement and each other Loan Document as amended herein.

 

4.           No Novation.  The parties hereto hereby acknowledge and agree that this Amendment shall not constitute a novation of the indebtedness evidenced by any of the Loan Documents, and further that the terms and provisions of the Loan Documents shall remain valid and in full force and effect except as herein modified and amended.

 

5.           Reaffirmation of Subsidiary Guaranty Agreement.  Borrower and each Subsidiary Guarantor hereby ratifies, confirms, reaffirms and covenants that the Subsidiary Guaranty Agreement which it has executed is validly existing and binding against it under the terms of such Subsidiary Guaranty Agreement.  Borrower and each Subsidiary Guarantor hereby reaffirms and restates, as of the date hereof, all covenants, representations and warranties set forth in the Subsidiary Guaranty Agreement and specifically reaffirms that its obligations under the Subsidiary Guaranty Agreement extend and apply for all purposes to the Credit Agreement and the other Loan Documents as amended hereby.

 

6.           Authority.  Borrower and each Subsidiary Guarantor hereby represents and warrants that the execution, delivery and performance of this Amendment by it has been duly authorized by all necessary actions of Borrower or such Subsidiary Guarantor, and do not and will not violate any provision of law, or any writ, order or decree of any court or governmental authority or agency or any provision of the corporate documents of Borrower or such Subsidiary Guarantor, and do not and will not, with the passage of time or the giving of notice, result in a breach of, or constitute a default or require any consent under, or result in the creation of any Lien upon any property or assets of Borrower or such Subsidiary Guarantor pursuant to, any law, regulation, instrument or agreement to which Borrower or such Subsidiary Guarantor is a party or by which Borrower or such Subsidiary Guarantor or its properties may be subject, bound or affected.

 

7.           No Waiver or Implication.  Except as expressly set forth above, Borrower and each Subsidiary Guarantor hereby agrees that nothing herein shall constitute a waiver by Administrative Agent, any Lender, the Issuing Bank or the Swingline Lender of any default, whether known or unknown, which may exist under the Credit Agreement, the Subsidiary Guaranty Agreement, the Stock Pledge Agreement or any of the other Loan Documents.  Borrower and each Subsidiary Guarantor hereby further agrees that no action, inaction or agreement by Administrative Agent, any Lender, the Issuing Bank or the Swingline Lender, including, without limitation, any extension, indulgence, waiver, consent or agreement of modification which may have occurred or have been granted or entered into (or which may be occurring or be granted or entered into hereunder or otherwise) with respect to nonpayment of the Loans or any portion thereof, or with respect to matters involving security for the Loans, or with respect to any other matter relating to the Loans, shall require or imply any future extension, indulgence, waiver, consent or agreement by Administrative Agent, any Lender, the Issuing Bank or the Swingline Lender.  Borrower and each Subsidiary Guarantor hereby acknowledges and agrees that none of Administrative Agent, any Lender, the Issuing Bank or the Swingline Lender has made any agreement, or is in any way obligated, to grant any future extension, indulgence, waiver or consent with respect to the Loans or any matter relating to the Loans.

 

  

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8.           No Defenses; Release.  For purposes of this Paragraph 8, the term “Borrower Parties” shall mean Borrower and the Subsidiary Guarantors collectively, and the term “Lender Parties” shall mean Administrative Agent, the Lenders, the Issuing Bank and the Swingline Lender, and shall include each of their respective predecessors, successors and assigns, and each past and present, direct and indirect, parent, subsidiary and affiliated entity of each of the foregoing, and each past and present employee, agent, attorney-in-fact, attorney-at-law, representative, officer, director, shareholder, partner and joint venturer of each of the foregoing, and each heir, executor, administrator, successor and assign of each of the foregoing; references in this paragraph to “any” of such parties shall be deemed to mean “any one or more” of such parties; and references in this sentence to “each of the foregoing” shall mean and refer cumulatively to each party referred to in this sentence up to the point of such reference.  Borrower and each Subsidiary Guarantor hereby acknowledges, represents and agrees: that neither Borrower nor any Subsidiary Guarantor has any defense, setoff, claim, counterclaim or cause of action of any kind or nature whatsoever with respect to the Credit Agreement, the other Loan Documents or the Obligations, or with respect to any other documents or instruments now or heretofore evidencing, securing or in any way relating to the Obligations or with respect to any other transaction, matter or occurrence between any of the Borrower Parties and any Lender Parties or with respect to any acts or omissions of any Lender Parties (all of said defenses, setoffs, claims, counterclaims or causes of action being hereinafter referred to as “Loan Related Claims”); that, to the extent that any Borrower Party may be deemed to have any Loan Related Claims, each Borrower Party does hereby expressly waive, release and relinquish any and all such Loan Related Claims, whether or not known to or suspected by a Borrower Party; that no Borrower Party shall institute or cause to be instituted any legal action or proceeding of any kind based upon any Loan Related Claims; and that each Borrower Party, jointly and severally, shall indemnify, hold harmless and defend all Lender Parties from and against any and all Loan Related Claims and any and all losses, damages, liabilities, costs and expenses suffered or incurred by any Lender Parties as a result of any assertion or allegation by any Borrower Parties of any Loan Related Claims or as a result of any legal action related thereto.

 

9.           No Release of Collateral.  Borrower and the Subsidiary Guarantors further acknowledge and agree that this Amendment shall in no way occasion a release of any collateral held by Administrative Agent as security to or for the Loans, and that all collateral held by Administrative Agent as security to or for the Loans shall continue to secure the Loans.

 

10.           Fees and Expenses.  In consideration of Administrative Agent, the Lenders, the Issuing Bank and the Swingline Lender agreeing to this Amendment, Borrower agrees to pay all reasonable fees and expenses incurred in connection with this Amendment.  Borrower acknowledges and agrees that once paid, such fees and expenses shall be fully earned and shall not be refundable or rebatable in whole or in part.

 

11.           Headings.  The headings of the paragraphs and other provisions hereof are provided for convenience only and shall not in any way affect the meaning or construction of any provision of this Amendment.

 

  

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12.           Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be deemed an original hereof and submissible into evidence and all of which together shall constitute one instrument.

 

13.           Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of Borrower, each Subsidiary Guarantor, Administrative Agent, each Lender, the Issuing Bank and the Swingline Lender and their respective heirs, successors and assigns, whether voluntary by act of the parties or involuntary by operation of law.

 

(Signatures on following page)

 

  

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IN WITNESS WHEREOF, this Amendment has been duly executed under seal by each of the undersigned as of the day and year first above written.

	  	
EASYLINK SERVICES INTERNATIONAL CORPORATION, a Delaware corporation

	  	  	  
	  	  	  
	  	  	  
	  	
By

	   
	  	
Name:

	   
	  	
Title:

	   
	 	 	 
	 	 	

[CORPORATE SEAL]

	  	

EASYLINK SERVICES CORPORATION, a Delaware corporation

	  	  	  
	  	  	  
	  	  	  
	  	
By

	   
	  	
Name:

	   
	  	
Title:

	   
	 	 	 
	 	 	

[CORPORATE SEAL]

	  	

EASYLINK SERVICES USA, INC., a Delaware corporation

	  	  	  
	  	  	  
	  	  	  
	  	
By

	   
	  	
Name:

	   
	  	
Title:

	   
	 	 	 
	 	 	

[CORPORATE SEAL]

 

  

  

  

 

	  	

XPEDITE SYSTEMS, LLC, a Delaware limited liability company

	 	 	 
	 	

By:

	

EasyLink Services International Corporation, a Delaware corporation, its Sole Member

	  	  	  
	  	  	  
	  	  	  
	  	
By

	   
	  	
Name:

	   
	  	
Title:

	   
	 	 	 
	 	 	

[CORPORATE SEAL]

	  	

XPEDITE SYSTEMS WORLDWIDE, INC., a Delaware corporation

	  	  	  
	  	  	  
	  	  	  
	  	
By

	   
	  	
Name:

	   
	  	
Title:

	   
	 	 	 
	 	 	

[CORPORATE SEAL]

	  	

XPEDITE NETWORK SERVICES, INC., a Georgia corporation

	  	  	  
	  	  	  
	  	  	  
	  	
By

	   
	  	
Name:

	   
	  	
Title:

	   
	 	 	 
	 	 	

[CORPORATE SEAL]

 

  

  

  

	  	

XPEDITE SYSTEMS HOLDINGS, INC., a Delaware corporation, formerly known as PTEK Services, Inc.

	  	  	  
	  	  	  
	  	  	  
	  	
By

	   
	  	
Name:

	   
	  	
Title:

	   
	 	 	 
	 	 	

[CORPORATE SEAL]

 

  

  

  

 

	  	

SUNTRUST BANK, as Administrative Agent, as Issuing Bank, as Swingline Lender and as a Lender

	  	  	  
	  	  	  
	  	  	  
	  	
By

	   
	  	
Name:

	Sherry D. Harris
	  	
Title:

	Senior Vice President
	 	 	 

  

  

  

	  	

FIFTH THIRD BANK, an Ohio Banking Corporation, as Syndication Agent and as a Lender

	  	  	  
	  	  	  
	  	  	  
	  	
By

	   
	  	
Name:

	   
	  	
Title:

	   
	 	 	 

  

  

  

 

	  	

BANK OF NORTH GEORGIA, a division of Synovus Bank, as a co-Documentation Agent and as a Lender

	  	  	  
	  	  	  
	  	  	  
	  	
By

	   
	  	
Name:

	   
	  	
Title:

	   
	 	 	 

 

  

  

  

	  	

THE PRIVATEBANK & TRUST COMPANY, as a co-Documentation Agent and as a Lender

	  	  	  
	  	  	  
	  	  	  
	  	
By

	   
	  	
Name:

	   
	  	
Title:

	   
	 	 	 

  

  

  

	  	

ATLANTIC CAPITAL BANK, as a Lender

	  	  	  
	  	  	  
	  	  	  
	  	
By

	   
	  	
Name:

	   
	  	
Title:

	   
	 	 	 

  

  

  

	  	

HSBC BANK USA, NA, as a Lender

	  	  	  
	  	  	  
	  	  	  
	  	
By

	   
	  	
Name:

	   
	  	
Title:

	   
	 	 	 

  

  

  

EXHIBIT A

NAME CHANGES

	
Prior Names

	
New Names

	  	  
	
GN Comtext (Deutschland) GmbH

	
EasyLink Services (Deutschland) GmbHGN

	
GN Comtext (Hong Kong) Limited

	
EasyLink Services (Hong Kong) LimitedEXHIBIT 10.1

Agreement by and between the Company and Partizipant, LLC dated July 31, 2011

AGREEMENT

THIS AGREEMENT dated July 31, 2011 (Effective Date"), by and between Vycor Medical, Inc., a
Delaware corporation, (the "Company") with an address located at 3651 FAU Blvd., Suite 300, Boca Raton, FL 33434, and Partizipant, LLC, a Delaware
limited liability company, (the "Consultant"), with an address located at P.O. Box 540304, Houston, TX 77254.  Each of the parties to
this Agreement is individually referred to herein as a "Party" and collectively as the "Parties."

WHEREAS:

A .

The Company is in the business of designing, developing, and marketing devices for use
in neurosurgery and in neuro-stimulation therapy.

B.

The Consultant has the investor relations expertise and experience to assist the
Company. Specifically, the Consultant will assist the Company with its financial market awareness. 

C.

The Consultant is offering its services as a consultant to the Company;

D.

The Company desires to retain the Consultant as an independent consultant and to
memorialize the

Consultant's work for the Company by entering into this written Agreement; and,

E.

The Parties agree that this Agreement reflects the entire understanding and
agreements between the Parties hereto.

AGREEMENT:

NOW, THEREFORE, in consideration of the foregoing recitals and the covenants and conditions
hereinafter set forth, the Parties hereto agree as follows:

1. TERM  & APPOINTMENT. 

(a)

The Company hereby appoints Consultant to render those services as more specifically
described in Section 2 hereof for the term of this Agreement.

(b)

Unless terminated at an earlier date or otherwise extended by agreement of the Parties,
the term of the Consultant's engagement hereunder shall be for a period of twelve (12) months (the "Term"), commencing on the Effective Date.
The period of engagement may be extended by written agreement or e-mail between the

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Parties, provided that certain provisions relating to compensation may change upon commencement of any
extension hereto.

2. SERVICES.

(a)

The Consultant shall provide the Company with a broad range of investor relations and
public relations services which shall include but not be limited to the following: (i) preparing a company awareness profile for use in the financial markets;
(ii) providing introductions to financial market professionals who can aid in increasing public awareness of the Company and (iii) assisting the Company a
variety of programs and activities which will serve to improve awareness of the Company in the financial marketplace in general, including but not limited to
organizing analyst meetings, news releases, interviews, appearances and promotional literature.

(b)

The Company hereby engages the Consultant and the Consultant hereby accepts
engagement as a consultant. It is understood and agreed, and it is the express intention of the Parties to this Agreement, that the Consultant is an
independent contractor, and not an employee or agent of the Company's for any purpose whatsoever. It is understood, however, that the Consultant will maintain
 Consultant's own business in addition to providing services to the Company. The Consultant agrees to
promptly perform all services required of the Consultant hereunder in an efficient, professional, trustworthy and businesslike manner. In such capacity,
Consultant will utilize only materials, reports, financial information or other documentation that is approved in writing in advance by the Company.

(c)

The Consultant agrees to serve the Company faithfully and to the best of Consultant's
ability and to devote a reasonable amount of time, attention and efforts to the business and affairs of the Company during Consultant's engagement by the
Company.

(d)

Consultant will pay all costs incident to performing its services.

3.

FEES.

(a)

As consideration for Consultant's Services, within five (5) business days of the
execution of this agreement, Consultant shall be paid a one-time payment of three hundred thousand dollars ($300,000). There will be no other expenses born by
the Company in the satisfaction of the Services. 

4.

INDEPENDENT CONTRACTOR STATUS.

Consultant understands that since the Consultant is not an employee of the Company, the Company will not
withhold income taxes or pay any employee taxes on its behalf, nor will it receive any fringe benefits. The Consultant shall not have any authority to assume
or create any obligations, express or implied, on behalf of the Company and shall have no authority to represent the Company as agent, employee or in any other
capacity than as herein provided. The Consultant does hereby indemnify and hold harmless the Company from and against any and all

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claims, liabilities, demands, losses or expenses incurred by the Company if the Consultant fails to
pay any applicable income and/or employment taxes (including interest or penalties of whatever nature), in any amount, relating to the Consultant's rendering of
consulting services to the Company, including any attorney's fees or costs to the prevailing Party to enforce this indemnity. The Consultant shall be
responsible for obtaining workers' compensation insurance coverage and agrees to indemnify, defend and hold the Company harmless of an from any and all claims
arising out of any injury, disability or death of the Consultant.

5. CONFIDENTIAL INFORMATION 

Except as permitted or directed by the Company's Board of Directors, during the term of Consultant's
engagement or at any time thereafter, the Consultant shall not divulge, furnish or make accessible to anyone or use in any way (other than in the ordinary
course of the business of the Company) any confidential or secret knowledge or information of the Company that the Consultant has acquired or become acquainted
with or will acquire or become acquainted with prior to the termination of the period of Consultant's engagement by the Company (including engagement by the
Company or any affiliated companies prior to the date of this Agreement) whether developed by Consultant self/herself or by others, concerning any trade
secrets, confidential or secret designs, processes, formulae, plans, devices or material (whether or not patented or patentable) directly or indirectly useful
in any aspect of the business of the Company, any customer or supplier lists of the Company, any confidential or secret development or research work of the
Company, or any other confidential information or secret aspects of the business of the Company. The Consultant acknowledges that the above-described knowledge
or information constitutes a unique and valuable asset of the Company and represents a substantial investment of time and expense by the Company, and that any
disclosure or other use of such knowledge or information other than for the sole benefit of the Company would be wrongful and would cause irreparable harm to
the Company. Both during and after the term of Consultant's engagement, the Consultant will refrain from any acts or omissions that would reduce the value of
such knowledge or information to the Company. The foregoing obligations of confidentiality shall not apply to any knowledge or information that is now
published and publicly available or which subsequently becomes generally publicly known in the form in which it was obtained from the Company, other than as
a direct or indirect result of the breach of this Agreement by the Consultant.

6. MISCELLANEOUS 

(a)

Facsimile Certification. A facsimile copy of this Agreement signed by any and/or all Parties
 shall have the same binding and legal effect as an original of the same.

(b)

Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one in the same instrument. Regardless of whether this Agreement

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is executed in one or more counterparts, each such counterpart may be executed by actual or facsimile
signature(s).

(c)

Entire Agreement. This Agreement contains the entire understanding and agreement
between the Parties hereto with respect to its subject matter and supersedes any prior or contemporaneous written or oral agreements, representations or
warranties between them respecting the subject matter hereof.

(d)

Severability. If any provision of this Agreement, as applied to either Party or to
any circumstances, shall be adjudged by a court to be void or unenforceable, the same shall be deemed stricken from this Agreement and shall in no way affect
any other provision of this Agreement or the validity or enforceability of this Agreement. In the event any such provision (the "Applicable
Provision") is so adjudged void or unenforceable, Consultant and Company shall take the following actions in the
following order: (i) seek judicial reformation of the Applicable Provision; (ii) negotiate in good faith with each other to replace the Applicable Provision
with a lawful provision; and (iii) have an arbitration as provided in Paragraph 6(i) hereof determine a lawful replacement provision for the Applicable
Provision; provided, however, that no such action pursuant to either of clauses (i) or (iii) above shall increase in any respect the Company's or the
Consultant's obligations pursuant to the Applicable Provision.

(e)

Rights Cumulative. The rights and remedies provided by this Agreement are
cumulative, and the exercise of any right or remedy by either Party hereto (or by its successors), whether pursuant to this Agreement, to any other
agreement, or to law, shall not preclude or waive its right to exercise any or all other rights and remedies.

(f)

Non-waiver. No failure or neglect of either Party hereto in any instance to exercise
any right, power or privilege hereunder or under law shall constitute a waiver of any other right, power or privilege or of the same right, power or privilege
in any other instance. All waivers by either Party hereto must be contained in a written instrument signed by the Party to be charged and, in the case of the
Company, by an executive officer of the Company or other person duly authorized by the Company.

(g)

No Implied Contract. The Parties intend to be bound only up on execution of this
Agreement and no negotiation, exchange or draft or partial performance shall be deemed to imply an agreement. Neither the continuation of work by Consultant nor
any other conduct shall be deemed to imply a continuing agreement upon the expiration of this Agreement.

(h) 

Execution of the Agreement. Company and the Party executing this Agreement on behalf
of the Company has the requisite corporate power and authority to enter into and carry out the terms and conditions of this Agreement, as well as all
transactions contemplated hereunder. All corporate proceedings have been taken and all corporate authorizations and approvals have been secured which are
necessary to authorize the execution, delivery and performance by Company of

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this Agreement. This Agreement has been duly and validly executed and delivered by Company and
constitutes the valid and binding obligations of Company, enforceable in accordance with the respective terms. Upon delivery of this Agreement to Consultant,
this Agreement, and the other agreements referred to herein, will constitute the valid and binding obligations of Company, and will be enforceable in accordance
with their respective terms.

(i)

Mediation or Arbitration of Disputes.

 (i)

If a dispute arises out of or relates to this contract, or the
breach thereof, and if the dispute cannot be settled through negotiation, the parties agree first to try in good faith to settle the dispute by mediation
administered by the American Arbitration Association under its Commercial Mediation Procedures before resorting to arbitration, litigation, or some other
dispute resolution procedure. 

(ii) Any controversy or claim arising out of or relating to this contract, or the
breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the
award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

(j)

Non-Disclosure. Except as may be required by law, neither Consultant nor the Company
shall disclose the terms of this Agreement to persons not involved in the operation of the Company, and the Parties shall disclose the financial terms of the
Agreement to those involved in the operation of the Company only as needed to implement the terms of the Agreement or carry out the operations of the Company. The
above notwithstanding, the financial terms of the Agreement may be disclosed to: (i) either Party's accountants, financial or tax advisors, and any potential
investors in the Company, provided such persons agree not to disclose such terms of the Agreement further; and (ii) members of Consultant's immediate family,
provided such family members agree not to reveal the terms of the Agreement further.

(k)

Agreement to Perform Necessary Acts. Consultant and the Company agree to perform any
further acts and execute and deliver any documents that may be reasonably necessary to carry out the provisions of this Agreement.

(l )

Taxes. Consultant agrees to pay all taxes that may be imposed upon Consultant with
respect to the Payment paid to Consultant hereunder.

(m)

Governing Law. This Agreement and the rights and remedies of each Party arising out
of or relating to this Agreement (including, without limitation, equitable remedies) shall (with the exception of any applicable federal laws) be solely
governed by, interpreted under, and construed and enforced in accordance with the laws (without regard to the conflicts of law principles) of the State of
California, as if this Agreement were made, and as if its obligations are to be performed, wholly within the State of California.

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(n)

Successors & Assigns. This Agreement shall be binding upon and inure to the
benefit of the Parties hereto and their respective heirs, personal representatives and, to the extent permitted by subsection (o), successors and assigns.

(o)

Assignability. Neither this Agreement nor any right, remedy, obligation or liability
arising hereunder or by reason hereof shall be assignable (including by operation of law) by either Party without the prior written consent of the other Party
to this Agreement, except that the Company may, without the consent of the Consultant, assign its rights and obligations under this Agreement to any
corporation, firm or other business entity with or into which the Company may merge or consolidate, or to which the Company may sell or transfer all or
substantially all of its assets, or of which 50% or more of the equity investment and of the voting control is owned, directly or indirectly, by, or is under
common ownership with, the Company. Provided such assignee explicitly assumes such responsibilities, after any such assignment by the Company, the Company
shall be discharged from all further liability hereunder and such assignee shall thereafter be deemed to be the Company for the purposes of all provisions of
this Agreement including this Section 6. Compensation under this Agreement is assignable at the discretion of the Consultant.

(p)

Modification, Amendment, Waiver or Termination. No provision of this Agreement may be
modified, amended, waived or terminated except by an instrument in writing signed by the Parties to this Agreement. No course of dealing between the Parties
will modify, amend, waive or terminate any provision of this Agreement or any rights or obligations of any Party under or by reason of this Agreement.

(q)

Notices. All notices, consents, requests, instructions, approvals or other
communications provided for herein shall be in writing and delivered by personal delivery, overnight courier, mail, electronic facsimile or e-mail addressed to
the receiving Party at the address set forth herein. All such communications shall be effective when received.

If to the Company:

Vycor Medical, Inc.

3651 FAD Blvd., Suite 300

Boca Raton, FL 33434

With a copy to: 

Robert Diener

Law Offices of Robert Diener

56 Laenani Street

Haiku, HI 96708

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If to the Consultant:

 

Partizipant, LLC

P.O. Box 540304

Houston, TX 77254

Any Party may change the address set forth above by notice to the other Party given as provided
herein. 

(r)

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

(s)

Third-Party Benefit. Nothing in this Agreement, express or implied, is intended to
confer upon any other person any rights, remedies, obligations or liabilities of any nature whatsoever.

(t)

Preparation of Agreement. The Parties have participated jointly in the negotiation
and drafting of this Agreement and each provision hereof. In the event any ambiguity, conflict, omission or other question of intent or interpretation arises,
this Agreement shall be construed as if jointly drafted by the Parties, and no presumption or burden of proof shall be presumed, implied or otherwise
construed favoring or disfavoring any Party by virtue of the authorship of this Agreement or of any provision hereof.

(u)

Absence of Warranties and Representations. Each Party hereto acknowledges that they
have signed this Agreement without having relied upon or being induced by any agreement, warranty or representation of fact or opinion of any person not
expressly set forth herein or in the Disclosure Materials. All representations and warranties of either Party contained herein shall survive its signing and
delivery.

SIGNATURE PAGE FOLLOWS

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IN WITNESS WHEREOF, this Consulting Agreement has been executed by the Parties as of the date
first above written.

		
	Vycor Medical, Inc.:

	Consultant: Partizipant, LLC

	

/s/ Peter Zachariou

	

      /s/ Joseph Kowal

	By:_____________________________

	By:_______________________________

	Name: Peter C. Zachariou

	Name: Joseph D. Kowal

	Title: Executive Vice President

	Title: Principal

	 
	 

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