Document:

Common Stock Purchase Agreement, dated March 24, 2006

 EXHIBIT 10.2 
 COMMON STOCK PURCHASE AGREEMENT 
 This COMMON STOCK PURCHASE AGREEMENT (this
“Agreement”) is made as of March 24, 2006 by and between EP MedSystems, Inc., a New Jersey corporation with its principal office at 575 Route 73 North, Building D, West Berlin, New Jersey 08091-9293 (the
“Company”), and each of the several purchasers named in Exhibit A attached hereto (each, a “Purchaser” and collectively, the “Purchasers”). 
 WHEREAS, the Company desires to issue and sell to the Purchasers an aggregate of (i) up to 4,444,500 shares (the “Shares”)
of the authorized but unissued shares of the Company’s common stock, no par value, stated value $0.001 per share (the “Common Stock”); and 
 WHEREAS, each Purchaser, severally, wishes to purchase the number of Shares shown next to its name on Exhibit A hereto, all upon the terms and subject to the conditions set forth in this Agreement. 

NOW THEREFORE, in consideration of the mutual agreements, representations, warranties and covenants herein contained, the parties hereto agree as
follows: 
 1. Definitions. As used in this Agreement, the following terms shall have the following respective meanings: 
 “Affiliate” of a party means any other Person controlling, controlled by or under common control with the specified Person. For
the purposes of this definition, “control” means the power to direct the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and all of the rules and regulations
promulgated thereunder. 
 “GAAP” means United States generally accepted accounting principles.

 “Majority Purchasers” shall mean Purchasers which, at any given time, hold greater than fifty
percent (50%) of the outstanding Shares. 
 “Material Adverse Effect” shall mean a material
adverse effect on the prospects, condition (financial or other), business, operations, assets, liabilities, or results of operations of the Company and its subsidiaries, taken as a whole. 
 “NASD” means the National Association of Securities Dealers, Inc. 
 “Person” shall mean an individual, corporation, company, partnership, firm, association, joint venture, trust,
unincorporated organization, government, governmental body, agency, political subdivision or other entity. 

 “Registration Rights Agreement” shall mean that certain
Registration Rights Agreement, dated as of the Closing Date, among the Company and the Purchasers. 
 “SEC”
shall mean the Securities and Exchange Commission. 
 “Securities Act” shall mean the Securities
Act of 1933, as amended, and all of the rules and regulations promulgated thereunder. 
 2. Purchase and Sale of Shares. 
 2.1 Purchase and Sale. Subject to and upon the terms and conditions set forth in this Agreement, the Company agrees to issue, sell and
deliver to each Purchaser, and each Purchaser, severally, hereby agrees to purchase from the Company, at the Closing, (i) the number of shares of Common Stock set forth opposite the name of such Purchaser under the heading “Number of
Shares to be Purchased” on Exhibit A hereto, at a purchase price of $2.43 per share. The total purchase price payable by each Purchaser for the number of shares of Common Stock that such Purchaser is hereby agreeing to purchase is
set forth opposite the name of such Purchaser under the heading “Purchase Price” on Exhibit A hereto. The Company shall be obligated to register the Shares pursuant to the terms and conditions set forth in the Registration
Rights Agreement. 
 2.2 Closing. The closing of the transactions contemplated under this Agreement (the
“Closing”) shall take place at 10:00 a.m. at the offices of Mayer, Brown, Rowe & Maw LLP in New York, New York on March 27, 2006, or at such other location, date and time as may be agreed upon between the
Majority Purchasers and the Company (the “Closing Date”). At the Closing, the Company shall authorize its transfer agent to issue to each Purchaser, against delivery of payment for the Shares by wire transfer of immediate
available funds in accordance with the Company’s instructions, one or more stock certificates registered in the name of each Purchaser, representing the number of shares set forth opposite the appropriate Purchaser’s name on
Exhibit A hereto, and bearing the legend set forth in Section 6.2 hereof. Closing documents may be delivered by facsimile with original signature pages sent by overnight courier. 
 2.3 Independent Purchasers. The Company acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an
arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby and that each Purchaser has separately negotiated the terms of this Agreement. Nothing contained herein or in any agreement or document relating to
this transaction, and no action taken by any Purchaser, shall be deemed to constitute the Purchasers as, or to create any presumption that the Purchasers are in any way acting in concert or as, a group with respect to the obligations or transaction
hereunder. No Purchaser has relied upon any other Purchaser for advice in entering into the transactions contemplated hereby. 
 3.
Representations and Warranties of the Company. The Company hereby represents and warrants to each of the Purchasers as follows: 
 3.1 Organization and Good Standing. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of New Jersey and has all requisite power and authority, and all necessary
licenses and permits, to own and lease its properties and assets and to conduct its business as now conducted. Each subsidiary as referred 

  

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to in the SEC Documents (as hereinafter defined) or the Draft 10-KSB (as hereinafter defined) is a corporation duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation and has all requisite power and authority, and all necessary licenses and permits, to own and lease its properties and assets and to conduct its business as now conducted. The Company
and its subsidiaries are each qualified to do business as a foreign corporation and are in good standing in all states where the conduct of their respective businesses or their ownership or leasing of property requires such qualification, except
where the failure to so qualify would not have a Material Adverse Effect. The Company does not own or control, directly or indirectly, any interest in any other corporation, partnership, limited liability company, unincorporated business
organization, association, trust or other business entity. 
 3.2 Capitalization. 
 (a) The authorized capital stock of the Company consists of: (i) 5,000,000 shares of preferred stock of the Company, no par value per
share, of which no shares are issued and outstanding; and (ii) 40,000,000 shares of Common Stock, no par value, $.001 stated value per share, of which, immediately prior to the consummation of the transactions contemplated hereby,
(A) 25,970,176 shares are issued and outstanding and all such outstanding shares are validly issued, fully paid and nonassessable; (B) 50,000 shares of Common Stock are held in treasury; (C) 801,708 shares of Common Stock reserved for
issuance pursuant to the Company’s 1995 Long Term Incentive Plan; (D) 180,000 shares of Common Stock reserved for issuance pursuant to the Company’s 1995 Director Option Plan; (E) 990,000 shares of Common Stock reserved for
issuance pursuant to the Company’s 2002 Stock Option Plan; (F) 1,000,000 shares of Common Stock reserved for issuance under the Company’s 2006 Stock Option Plan; (G) 1,000,0000 shares of Common Stock reserved for issuance under
the Company’s 2006 Director Plan; (H) 477,327 shares of Common Stock reserved for issuance upon conversion of the Company’s outstanding Secured Convertible Note issued to Laurus Master Fund, Ltd.; (I) 1,250,050 shares of Common
Stock reserved for issuance upon exercise of outstanding warrants; and (J) 255,000 shares of Common Stock reserved for issuance upon the exercise of outstanding non-plan options. With respect to the 1995 Long Term Incentive Plan, the 1995
Director Option Plan, the 2002 Stock Option Plan, the 2006 Stock Option Plan, the 2006 Director Plan and other non-plan stock options and warrants, an aggregate of 4,016,585 options and warrants have been granted or issued and are outstanding as of
the Closing Date. 
 (b) There are no preemptive or similar rights to purchase or otherwise acquire shares of capital stock of
the Company pursuant to any provision of law or the Amended and Restated Certificate of Incorporation or By-Laws of the Company or by agreement or otherwise. Except as set forth in this Section 3.2 and except as set forth in the SEC
Documents or the Draft 10-KSB, there are no outstanding subscriptions, warrants, options or other rights or commitments of any character to subscribe for or purchase from the Company, or obligating the Company to issue, any shares of capital stock
of the Company or any securities convertible into or exchangeable for such shares. 
 (c) There are no stockholder agreements,
voting agreements, or similar agreements with respect to the Common Stock to which the Company is a party, or to the knowledge of the Company, by or between any stockholders of the Company or any of its Affiliates. 
  

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 3.3 Authorization. The Company has all requisite corporate power to enter into this
Agreement and the Registration Rights Agreement, to issue the Shares and to carry out and perform its obligations under the terms of this Agreement and the Registration Rights Agreement (including, without limitation, the issuance of the Shares).
All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution, delivery and performance of this Agreement and the Registration Rights Agreement and the consummation of the
transactions contemplated herein and therein has been taken or will be taken prior to the Closing Date. When executed and delivered by the Company, each of this Agreement and the Registration Rights Agreement shall constitute the legal, valid and
binding obligation of the Company, enforceable against the Company in accordance with their respective terms, except as such may be limited by bankruptcy, insolvency, reorganization or other laws affecting creditors’ rights generally and by
general equitable principles. 
 3.4 Valid Issuance of the Shares. The Shares being purchased by the Purchasers hereunder will,
upon issuance pursuant to the terms hereof, be validly issued, fully paid and nonassessable, free from all liens, claims, encumbrances with respect to the issuance of such Shares and will not be subject to any preemptive or similar rights. Except
for blue sky filing fees, if any, there are no state or city taxes, fees or other charges payable in connection with the execution or delivery of this Agreement, the Registration Rights Agreement and the Shares. 
 3.5 Financial Statements. The Company has furnished to each Purchaser its audited Statements of Income, Stockholders’ Equity and Cash
Flows for the fiscal year ended December 31, 2004, its audited Balance Sheet as of December 31, 2004, its unaudited Statements of Income, Stockholders’ Equity and Cash Flows for the period from December 31, 2004 through
September 30, 2005 and its unaudited Balance Sheet as of September 30, 2005. All such financial statements are hereinafter referred to collectively as the “Financial Statements.” The Financial Statements have
been prepared in accordance with U.S. generally accepted accounting principles applied on a consistent basis during the periods involved, and fairly present, in all material respects, the financial position of the Company and the results of its
operations as of the date and for the periods indicated thereon, except that the unaudited financial statements may not be in accordance with U.S. generally accepted accounting principles because of the absence of footnotes and are subject to normal
year-end audit adjustments which, individually, and in the aggregate, will not be have a Material Adverse Effect. Since September 30, 2005, to the Company’s knowledge, (i) there has been no development or change (actual or
threatened), individually or in the aggregate, having a Material Adverse Effect, (ii) except as set forth in an SEC Document (as defined below) or the Draft 10-KSB (as defined below), there does not exist any condition reasonably likely to
result in a Material Adverse Effect and (iii) the Company has conducted its business only in the ordinary course consistent with past practice. The Company has no indebtedness, obligations or liabilities of any kind (whether accrued, absolute,
contingent or otherwise, and whether due or to become due) which were not fully reflected in, reserved against or otherwise described in the Financial Statements or the notes thereto, or incurred in the ordinary course of business consistent with
the Company’s past practices, all of which individually and in the aggregate do not or would not have a Material Adverse Effect. 
 3.6
SEC Documents. The Company has made available to each Purchaser, a true and complete copy of the Company’s Annual Report on Form 10-KSB for the year ended December 31, 2004, the Company’s Quarterly Reports on Form 10-QSB
for the three months 

  

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ended March 31, 2005, June 30, 2005 and September 30, 2005 and any other statement, report, registration statement (other than
registration statements on Form S-8) or definitive proxy statement filed by the Company with the SEC during the period commencing on December 31, 2004 and ending on the date hereof. The Company will, promptly upon the filing thereof, also make
available to each Purchaser all statements, reports (including, without limitation, Quarterly Reports on Form 10-QSB and Current Reports on Form 8-K), registration statements and definitive proxy statements filed by the Company with the SEC during
the period commencing on the date hereof and ending on the Closing Date (all such materials required to be furnished to each Purchaser pursuant to this sentence or pursuant to the next preceding sentence of this Section 3.6 being called,
collectively, including any amendments thereto, the “SEC Documents”). The Company has made available to each Purchaser a draft (dated March 23, 2006) of the Company’s Annual Report on Form 10-KSB for
the year ended December 31, 2005 (the “Draft 10-KSB”). Since January 1, 2005, the Company has timely made all filings required to be made by it under the Exchange Act and the securities laws of any state, and any
rules and regulations promulgated thereunder. The SEC Documents comply in all material respects with the requirements of the Exchange Act or the Securities Act, as applicable, and none of the SEC Documents contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading, as of their respective filing dates,
except to the extent corrected by a subsequently filed SEC Document filed prior to the date hereof; provided, that, it is hereby acknowledged and agreed that the Company is not making any representation or warranty pursuant to this sentence in
respect of the Draft 10-KSB. The Company is eligible to use a registration statement on Form S-3 with respect to the registration of Registrable Securities (as such term is defined in the Registration Rights Agreement) pursuant to the Registration
Rights Agreement. 
 3.7 Consents. Except for filings under federal and applicable state securities laws and except for Permits
(as defined below), the absence of which either individually or in the aggregate would not have a Material Adverse Effect, all permits, consents, approvals, orders, authorizations of, or declarations to (collectively,
“Permits”) or filings with any federal, state, local or foreign court, governmental or regulatory authority, or other person (including third party consents) required on the part of the Company in connection with the
execution, delivery or performance of this Agreement and the Registration Rights Agreement and the consummation of the transactions contemplated herein and therein have been obtained or will be obtained prior to the Closing Date, and will be
effective as of the Closing Date. 
 3.8 No Conflict. The execution and delivery of this Agreement and the Registration Rights
Agreement by the Company and the consummation of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Shares) will not (x) conflict with or result in any violation of or default (with or without
notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation or to a loss of a material benefit under (i) any provision of the Amended and Restated Certificate of Incorporation
or bylaws of the Company or (ii) any agreement or instrument, Permit, franchise, license, judgment, order, statute, law, ordinance, rule or regulations, applicable to the Company, any of its subsidiaries or their respective properties or assets
or (y) result in the creation of any lien, security interest, charge or encumbrance upon the Company’s or any of its subsidiaries’ assets, properties or outstanding capital stock. 
  

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 3.9 Brokers or Finders. Except for C.E. Unterberg, Towbin LLC, a Delaware limited liability
company (the “Placement Agent”), the Company has not dealt with any broker or finder in connection with the transactions contemplated by this Agreement, and, except for certain fees and expenses payable by the Company to the
Placement Agent, the Company has not incurred, and shall not incur, directly or indirectly, any liability for any brokerage or finders’ fees or agents commissions or any similar charges in connection with this Agreement or any transaction
contemplated hereby. 
 3.10 Nasdaq Capital Market. The Common Stock is listed on The Nasdaq Capital Market, and there are no
proceedings to revoke or suspend such listing. The issuance of the Shares will not contravene any NASDAQ Marketplace Rule. The Common Stock is registered pursuant to Section 12(g) of the Exchange Act. The Company has taken no action
designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act, delisting the Common Stock from The Nasdaq Capital Market. The Company has not received any notification
that, and has no knowledge that, the SEC or the NASD is contemplating terminating such listing or registration. The issuance of the Shares does not require stockholder approval, including, without limitation, as may be required pursuant to the
Nasdaq Marketplace Rules. 
 3.11 Absence of Litigation. Except as set forth in the SEC Documents or the Draft 10-KSB, there is
no action, suit or proceeding or, to the Company’s knowledge, any investigation, pending, or to the Company’s knowledge, threatened by or before any governmental body against the Company, its subsidiaries, its activities, properties or
assets or any officer, director, or employee of the Company in connection with such officer’s, director’s or employee’s relationship with, or actions taken on behalf of the Company and in which an unfavorable outcome, ruling or
finding in any said matter, or for all matters taken as a whole, might have a Material Adverse Effect. The foregoing includes, without limitation, any such action, suit, proceeding or investigation that questions this Agreement or the Registration
Rights Agreement or the right of the Company to execute, deliver and perform under same. The Company is not a party to, or subject to the provisions of any order, writ or injunction, judgment or decree of any court or government agency or
instrumentality. 
 3.12 Fiduciary Duties. The Company represents and warrants that, to the best of its knowledge, none of its
directors or officers is or has been the subject of, or a defendant in: (i) an enforcement action or prosecution (or settlement in lieu thereof) brought by a governmental authority relating to a violation of securities, fiduciary or criminal
laws, or (ii) a civil action (or settlement in lieu thereof) brought by stockholders or investors for violation of duties owed to the stockholders or investors. 
 3.13 Title to Property and Assets. Except as disclosed in the SEC Documents or the Draft 10-KSB, each of the Company and its subsidiaries owns its property and assets free and clear of all mortgages,
liens, loans, claims, charges and encumbrances, and except such encumbrances and liens that arise in the ordinary course of business and do not materially impair their respective ownership or use of such property or assets. With respect to property
and assets it leases, the Company is in material compliance with such leases and, to the best of its knowledge, holds a valid leasehold interest free of any liens, charges, claims or encumbrances, 

  

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except to the extent any such lien, charge, claim or encumbrance would not have a Material Adverse Effect. 
 3.14 Patents. Trademarks. Proprietary Rights. 
 (a) To the Company’s knowledge, each of the Company and its subsidiaries owns or has the right to use all of the Intellectual Property Rights (as defined below), except where such failure would not have a
Material Adverse Effect on the business, properties or assets of the Company and its subsidiaries, taken as a whole. For purposes of this Agreement, “Intellectual Property Rights” means all patents, copyrights, trademarks,
service marks, trade names, permits, trade secrets, computer programs, software designs and related materials and other intellectual property that are used by the Company or a subsidiary and are material to the conduct of the Company’s or a
subsidiary’s business. 
 (b) To the Company’s knowledge, the Company’s and each subsidiary’s use and
enjoyment of the Intellectual Property Rights do not violate any license or conflict with or infringe the intellectual property rights of others in a manner which would materially and adversely affect the business, assets, properties, operations or
condition (financial or otherwise) of the Company and its subsidiaries, taken as a whole. 
 3.15 Environmental Matters. Except
as set forth in the SEC Documents or the Draft 10-KSB, to the Company’s knowledge, neither the Company nor any of its subsidiaries is in violation of any applicable statute, law or regulation relating to the environment or occupational health
and safety, which violation could reasonably be expected to result in a Material Adverse Effect, and to the best of its knowledge, no expenditures are required in order to comply with any such existing statute, law or regulation, which expenditures
could reasonably be expected to result in a Material Adverse Effect. 
 3.16 Permits. Each of the Company and its subsidiaries
possesses all Permits or similar authority necessary to conduct its business as described in the SEC Documents and the Draft 10-KSB, except where the failure to possess such Permits would not, individually or in the aggregate, have a Material
Adverse Effect on the Company or its subsidiaries (“Material Permits”), and neither the Company nor any such subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit.

 3.17 Employees. To the Company’s knowledge, no strike, labor dispute or union organizing activities are pending or
threatened against the Company or any of its subsidiaries by its employees. No employees belong to a union or collective bargaining unit. To the Company’s knowledge, neither the Company nor any of its subsidiaries has any workers’
compensation liabilities. 
 3.18 Tax Matters. The Company has filed all tax returns and reports as required by federal, state,
local, and foreign law and has paid all taxes shown thereon that have become due and payable. Such returns and reports were materially accurate and complete when filed and reflect all taxes and other assessments due thereunder to be paid by the
Company, except those contested by it in good faith. The provision for taxes of the Company included in the provision for accrued liabilities in the Company’s Financial Statements is adequate for taxes due or 

  

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accrued as of the dates thereof. The Company has never had any material tax deficiency proposed or assessed against it. 
 3.19 Compliance with Certificate of Incorporation and By-laws; Compliance with Laws. The Company is not in violation or default of any
provisions of its Amended and Restated Certificate of Incorporation or Bylaws. The business and operations of the Company and each of its subsidiaries have been conducted in accordance with all applicable laws, rules and regulations of all
governmental agencies, authorities and instrumentalities (including, without limitation, under the Employee Retirement Income Security Act of 1974, as amended, laws and regulations administered by the Food and Drug Administration, and all laws
relating to the employment of labor), except for such violations which would not, individually or in the aggregate, have a Material Adverse Effect. 
 3.20 Insurance. The Company and each of its subsidiaries maintains insurance of the type and in the amount reasonably adequate for its business, including, but not limited to, insurance covering all real and personal property
owned or leased by the Company against theft, damage, destruction, acts of vandalism, and all other risks customarily insured against by similarly situated companies, all of which insurance is in full force and effect. 
 3.21 Investment Company Act. The Company is not an “investment company” within the meaning of the Investment Company Act
of 1940, as amended (the “Investment Company Act”), and the Company is not directly or indirectly controlled by or acting on behalf of any person that is an “investment company” within the meaning of the
Investment Company Act. 
 3.22 Compliance With Securities Laws. Assuming the accuracy of the representations and warranties of
the Purchasers set forth in Section 4 hereof, the offer and sale by the Company of the Shares are exempt from the registration and prospectus delivery requirements of the Securities Act. Other than pursuant to an effective registration
statement under the Securities Act, the Company has not issued, offered or sold any shares of Common Stock (including for this purpose any securities of the same or a similar class as the Common Stock) within the six (6) month period preceding
the date hereof or taken any other action, or failed to take any action, that, in any such case, would (i) eliminate the availability of the exemption from registration under Regulation D under the Securities Act in connection with the offer
and sale of the Shares as contemplated hereby or (ii) cause the offering of the Shares pursuant to this Agreement to be integrated with prior offerings by the Company for purposes of the Securities Act or any applicable stockholder approval
provisions, including, without limitation, under the rules and regulations of the NASD, as applicable. The Company shall not directly or indirectly take, and shall not permit any of its directors, officers or Affiliates directly or indirectly to
take, any action (including, without limitation, any offering or sale to any Person of the Shares or any Common Stock) that will make unavailable the exemption from registration under the Securities Act being relied upon by the Company for the offer
and sale to the Purchasers of the Shares as contemplated by this Agreement, including, without limitation, the filing of a registration statement under the Securities Act. No form of general solicitation or advertising within the meaning of Rule
502(c) under the Securities Act has been used or authorized by the Company or any of its officers, directors or Affiliates in connection with the 

  

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offer or sale of the Shares as contemplated by this Agreement or any other agreement to which the Company is a party. 
 3.23 Registration Rights. Except as set forth in the SEC Documents or the Draft 10-KSB, there are no Persons (except the Purchasers and
their permitted transferors hereunder) with registration or other similar rights to have any securities registered pursuant to the Registration Statement or otherwise registered by the Company under the Securities Act which have not been satisfied.

 3.24 Related Party Transactions. Except as set forth in the SEC Documents or the Draft 10-KSB, neither the Company nor any
of its officers, directors or Affiliates nor any family member of any officer, director or Affiliate of the Company has borrowed any moneys from or has outstanding any indebtedness or other similar obligations to the Company. Except as set forth in
the SEC Documents or the Draft 10-KSB, no director or Affiliate nor any family member of any officer, director or Affiliate of the Company (i) owns any direct or indirect interest constituting more than a 1% equity (or similar profit
participation) interest in, or controls or is a director, officer, partner, member or employee of, or consultant or lender to or borrower from, or has the right to participate in the profits of, any person or entity which is a participant in any
transaction to which the Company or any subsidiary is a party or (ii) is a party to any contract, agreement, commitment or other arrangement with the Company or any subsidiary or (iii) has entered into any transaction with the Company or
any subsidiary that would be required to be disclosed under Item 404 of Regulation S-K. 
 3.25 Contracts. All contracts
and agreements filed or required to be filed as exhibits to the SEC Documents filed prior to the date hereof, except such contracts and agreements that have expired by their own terms (collectively, “Contracts”) are in full
force and effect and constitute legal, valid and binding obligations of the Company and, to the best knowledge of the Company, the other parties thereto; the Company and, to the best knowledge of the Company, each other party thereto, have performed
in all material respects all obligations required to be performed by them under the Contracts, and no material violation or default exists in respect thereof, nor any event that with notice or lapse of time, or both, would constitute a default
thereof, on the part of the Company or, to the best knowledge of the Company, any other party thereto; none of the Contracts is currently being renegotiated; and the validity, effectiveness and continuation of all Contracts will not be materially
adversely affected by the transactions contemplated by this Agreement. 
 3.26 Disclosure. Neither this Agreement nor the SEC
Documents nor the Draft 10-KSB taken together contain any untrue statement of a material fact nor omit to state a material fact necessary in order to make the statements contained herein or therein, in light of the circumstances under which they
were made, not misleading. To the Company’s knowledge, neither it nor, any Person on its behalf, has provided any of the Purchasers or their agents or counsel with any information that constitutes, or might reasonably be expected to constitute,
material, non-public information except for (x) the existence of this transaction and the terms and conditions hereof, and (y) such material non-public information as is contained in the Draft 10-KSB. The Company intends to file the
Company’s Annual Report on Form 10-KSB for the year ended December 31, 2005 with the SEC on or prior to March 31, 2006, which Annual Report on Form 10-KSB shall be in a form substantially similar to the Draft 10-KSB. The Company

  

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understands and confirms that each of such Purchasers will rely on the foregoing representations in effecting transactions in securities of the Company.

 3.27 Sarbanes-Oxley. The Chief Executive Officer and the Chief Financial Officer of the Company have signed, and the Company
has furnished to the SEC, all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002. Such certifications contain no qualifications or exceptions to the matters certified therein and have not been modified or withdrawn;
and neither the Company nor any of its officers has received notice from any governmental entity questioning or challenging the accuracy, completeness, form or manner of filing or submission of such certifications. 
 3.28 Disclosure Controls and Procedures. The Company and its subsidiaries maintain a system of disclosure controls and procedures (as
defined in Rules 13a-15 and 15d-15 of the Exchange Act). To the Company’s knowledge, the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in reports that it files
or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms. 
 4.
Representations, Warranties and Agreements of the Purchasers. Each Purchaser severally for itself, and not jointly with the other Purchasers, represents and warrants to, and agrees with, the Company as follows: 
 4.1 Authorization. Such Purchaser has all requisite power under its constituent documents to enter into each of this Agreement and the
Registration Rights Agreement and to carry out and perform its obligations under the terms of this Agreement and the Registration Rights Agreement. All action on the part of such Purchaser and, if applicable, its officers, directors, stockholders,
managers, members and equityholders necessary for the authorization, execution, delivery and performance of this Agreement and the Registration Rights Agreement and the consummation of the transactions contemplated herein and therein has been taken.
When executed and delivered, each of this Agreement and the Registration Rights Agreement will constitute the legal, valid and binding obligation of such Purchaser, enforceable against such Purchaser in accordance with its terms, except as such may
be limited by bankruptcy, insolvency, reorganization or other laws affecting creditors’ rights generally and by general equitable principles. 
 4.2 Purchase Entirely for Own Account. Such Purchaser is acquiring the Shares being purchased by it hereunder for investment, for its own account, and not for resale or with a view to distribution thereof in violation of the
Securities Act. 
 4.3 Investor Status; Etc. Such Purchaser certifies and represents to the Company that at the time such
Purchaser acquires any of the Shares, such Purchaser will be an “Accredited Investor” as defined in Rule 501 of Regulation D promulgated under the Securities Act and was not organized for the purpose of
acquiring the Shares. Such Purchaser’s financial condition is such that it is able to bear the risk of holding the Shares for an indefinite period of time and the risk of loss of its entire investment. Such Purchaser has sufficient knowledge
and experience in investing in companies similar to the Company in terms of the Company’s stage of development so as to be able to evaluate the risks and merits of its investment in the Company. Such 

  

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Purchaser has received and carefully reviewed descriptive materials relating to the Company and any other materials relating thereto that such Purchaser has
requested. Such Purchaser has had an opportunity to ask questions of and receive answers from the authorized representatives of the Company, and to review any relevant documents and records concerning the business of the Company and the terms and
conditions of this investment, and that any such questions have been answered to such Purchaser’s full satisfaction. No Person other than the Company or its authorized representatives, has offered the securities to the Purchaser. Such Purchaser
is acquiring the Shares in the ordinary course of business for such Purchaser’s own account as principal (and not as a nominee or agent), for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization
thereof, in whole or in part, in any manner in violation of applicable United States federal or state securities laws or the rules or regulations promulgated thereunder. Such Purchaser has made no agreement, direct or indirect, with any other Person
regarding any sale, transfer, assignment or other disposition of any interest in the Shares. Such Purchaser is aware that, in the view of the SEC and certain state securities commissions, a purchase of the Shares now with an intent to resell by
reason of any foreseeable specific contingency or anticipated change in market values or any change in the condition of the Company, or in connection with a contemplated liquidation or settlement of any loan obtained for the acquisition of the
Shares and for which the Shares were pledged as security, would represent an intent inconsistent with this representation. Such Purchaser further represents and agrees that if, contrary to the foregoing intentions, such Purchaser should later desire
to dispose of or transfer any of the Shares in any manner, such Purchaser shall not do so without first complying with the provisions of Section 6.1. Such Purchaser understands that no federal or state agency has passed upon or made any
recommendation or endorsement of an investment in the Shares. The foregoing shall in no way limit or modify the representations of the Company set forth in Section 3 hereof. 
 4.4 Shares Not Registered. Such Purchaser understands that the Shares have not been registered under the Securities Act, by reason of their
issuance by the Company in a transaction exempt from the registration requirements of the Securities Act, and that the Shares must continue to be held by such Purchaser unless a subsequent disposition thereof is registered under the Securities Act
or is exempt from such registration. The Purchaser understands that the exemptions from registration afforded by Rule 144 (the provisions of which are known to it) promulgated under the Securities Act depend on the satisfaction of various
conditions, and that, if applicable, Rule 144 may afford the basis for sales only in limited amounts. 
 4.5 No Conflict. The
execution and delivery of this Agreement and the Registration Rights Agreement by such Purchaser and the consummation by it of the transactions contemplated hereby and thereby will not conflict with or result in any violation of or default by such
Purchaser (with or without notice or lapse of time, or both) under (i) any provision of the organizational documents of such Purchaser or (ii) any judgment, Order, statute, law, ordinance, rule or regulations, applicable to such Purchaser
or its respective properties or assets. 
 4.6 Brokers. Such Purchaser has not retained, utilized or been represented by any
broker or finder in connection with the transactions contemplated by this Agreement. 
 4.7 Consents. All consents, approvals,
orders and authorizations required on the part of such Purchaser in connection with the execution, delivery or performance of this Agreement 

  

 11 

 
and the Registration Rights Agreement and the consummation of the transactions contemplated herein have been obtained and are effective as of the Closing
Date. 
 4.8 Agreement with Respect to Short Sales. Neither the Purchasers nor any of their respective Affiliates nor any
person acting on their behalf has engaged in, or its otherwise subject to, any “short sale” (as such term is defined in Rule 3b-3 under the Securities Exchange Act of 1934, as amended) or any other hedging transaction in respect of the
Common Stock that has established, as of the date hereof, a net short position with respect to the Common Stock. Since the time that the Purchaser was first contacted by the Company or any other person or entity regarding the investment in the
Company contemplated by this Agreement, neither such Purchaser nor any of its Affiliates nor any person acting on their behalf has entered into any “short sale” (as such term is defined in Rule 3b-3 under the Securities Exchange Act of
1934, as amended) in respect of the Company’s Common Stock and none of the Purchaser nor any of its Affiliates nor any person acting on their behalf will enter into any such “short sale” at any time prior to the Closing Date.

 4.9 Material Non-Public Information. Such Purchaser acknowledges that the United States securities laws prohibit any person
who has received any material non-public information from an issuer or any affiliate thereof from purchasing or selling securities of such issuer or from communicating such information to any other person under circumstances in which it is
reasonably foreseeable that such person is likely to purchase or sell such securities. Such Purchaser shall abide by such prohibitions, and will comply in all respects with all other laws and regulations implicated by the receipt, production or use
of any material non-public information regarding the Company. 
 5. Conditions Precedent. 
 5.1 Conditions to the Obligation of the Purchasers to Consummate the Closing. The obligation of each Purchaser to consummate the Closing
and to purchase and pay for the Shares being purchased by it pursuant to this Agreement is subject to the satisfaction of the following conditions precedent (or waiver by such Purchaser): 
 (a) The representations and warranties contained herein of the Company that are qualified as to “materiality” shall be true and
correct, and the representations and warranties contained herein of the Company that are not so qualified shall be true and correct in all material respects, in each case, as of the date of this Agreement and as of the Closing Date (except for such
representations and warranties which are made expressly as of a specified date or period, which shall be true and correct or true and correct in all material respects, as herein above required, as of such specified date or period). 
 (b) The Company shall have performed all covenants, agreements, obligations and conditions herein required to be performed or observed by
the Company on or prior to the Closing Date. 
 (c) Prior to the Closing Date, no event shall have occurred which has had a
Material Adverse Effect shall have occurred. 
  

 12 

 (d) No suit, action, or other proceeding challenging this Agreement or the transactions
contemplated hereby, or seeking to prohibit, alter, prevent or materially delay the Closing, shall have been instituted before any court, arbitrator or governmental body, agency or official and shall be pending. 
 (e) The purchase of and payment for the Shares by such Purchasers shall not be prohibited by any law or governmental order or regulation.
All necessary consents, approvals, licenses, Permits, orders and authorizations of, or registrations, declarations and filings with, any governmental or administrative agency or of any other person with respect to any of the transactions
contemplated hereby (including, without limitation, the issuance of the Shares) shall have been duly obtained or made and shall be in full force and effect. 
 (f) The Company shall have complied with all applicable requirements of federal and state securities or “blue sky” laws
with respect to the issuance of the Shares, and each Purchaser, at such Purchaser’s request, shall have been provided reasonable evidence thereof. 
 (g) The Common Stock of the Company (i) shall be designated for quotation or listed on The Nasdaq Capital Market and (ii) shall not have been suspended from trading on The Nasdaq Capital Market. 

(h) The Registration Rights Agreement shall have been executed and delivered by the Company. 
 (i) A certificate shall have been delivered by the Company, signed by its President, Chief Executive Officer or Chief Financial Officer,
dated as of the Closing Date, certifying as to the fulfillment of the conditions specified in Sections 5.1(a), (b), (c), (d), (e), (f), (g) and (m). 
 (j) The Company shall have delivered to each Purchaser an opinion of counsel for the Company, dated the Closing Date, in substantially the
form of Exhibit B attached hereto. 
 (k) A stock certificate shall have been delivered by the Company, registered in
the name of such Purchaser or nominee as designated by such Purchaser in writing, representing the number of shares of Common Stock purchased by such Purchaser, free of all restrictive and other legends (except as provided in Section 6.2
hereof), against payment of the purchase price therefor by wire transfer of immediately available funds to such account or accounts as the Company shall designate in writing. 
 (l) All instruments and corporate proceedings in connection with the transactions contemplated by this Agreement to be consummated at the
Closing shall be satisfactory in form and substance to such Purchaser, and such Purchaser shall have received copies (executed or certified, as may be appropriate) of all documents which such Purchaser may have reasonably requested in connection
with such transactions. 
 (m) No proceeding challenging this Agreement or the transactions contemplated hereby, or seeking to
prohibit, alter, prevent or materially delay the Closing, shall 

  

 13 

 
have been instituted before any court, arbitrator or governmental body, agency or official and shall be pending. 
 (n) The Company shall have delivered to the Purchasers a certificate of the Company executed by the Company’s Secretary attaching and
certifying to the truth and correctness of (i) the Company’s Amended and Restated Certificate of Incorporation, (ii) the Company’s Bylaws and (iii) the resolutions adopted by the Company’s Board of Directors in
connection with the transactions contemplated by this Agreement. 
 5.2 Conditions to the Obligation of the Company to Consummate the
Closing. The obligation of the Company to consummate the Closing, to issue and sell to each Purchaser the Shares to be purchased by it at the Closing is subject to the satisfaction of the following conditions precedent (or waiver by the
Company): 
 (a) The representations and warranties contained herein of such Purchaser shall be true and correct on and as of
the Closing Date with the same force and effect as though made on and as of the Closing Date (it being understood and agreed by the Company that, in the case of any representation and warranty of each Purchaser contained herein which is not
hereinabove qualified by application thereto of a materiality standard, such representation and warranty need be true and correct only in all material respects in order to satisfy as to such representation or warranty the condition precedent set
forth in the foregoing provisions of this Section 5.2(a)). 
 (b) The Registration Rights Agreement shall have
been executed and delivered by each Purchaser. 
 (c) Such Purchaser shall have performed all obligations and conditions
herein required to be performed or observed by it on or prior to the Closing Date. 
 (d) No proceeding challenging this
Agreement or the transactions contemplated hereby, or seeking to prohibit, alter, prevent or materially delay the Closing, shall have been instituted before any court, arbitrator or governmental body, agency or official and shall be pending.

 (e) The sale of the Shares by the Company shall not be prohibited by any law or governmental order or regulation. All
necessary consents, approvals, licenses, Permits, orders and authorizations of, or registrations, declarations and filings with, any governmental or administrative agency or of any other person with respect to any of the transactions contemplated
hereby shall have been duly obtained or made and shall be in full force and effect. 
 (f) Such Purchaser shall have executed
and delivered to the Company an executed Investor Questionnaire, in substantially the form attached hereto as Exhibit C, pursuant to which each such Purchaser shall provide information necessary to confirm each such Purchaser’s status as
an “accredited investor” (as such term is defined in Rule 501 promulgated under the Securities Act). 
 (g)
The Company shall have received executed agreements (which may be a counterpart signature to this Agreement) from each of the Purchasers to purchase, in accordance 

  

 14 

 
with this Agreement, the number of shares of Common Stock set forth on Exhibit A opposite its name under the heading “Number of Shares to
be Purchased.” 
 (h) All instruments and corporate proceedings in connection with the transactions contemplated
by this Agreement to be consummated at the Closing shall be satisfactory in form and substance to the Company, and the Company shall have received counterpart originals, or certified or other copies of all documents, including, without limitation,
records of corporate or other proceedings, which it may have reasonably requested in connection therewith. 
 (i) No Purchaser
nor any of its Affiliates nor any person acting on behalf of such Persons will have entered into for a period of five (5) days prior to the Closing Date, any “short sale” (as such term is defined in Rule 3b-3 under the Securities
Exchange Act of 1934, as amended). 
 (j) Purchasers and other investors shall have committed, pursuant to the terms hereof
and pursuant to any other agreement to purchase Shares in connection with the offering contemplated hereby, to purchase an aggregate of at least 4,000,000 Shares. 
 6. Transfer; Legends. 
 6.1 Securities Law Transfer Restrictions. No Purchaser shall sell,
assign, pledge, transfer or otherwise dispose or encumber any of the Shares being purchased by it hereunder, except: (i) pursuant to an effective registration statement under the Securities Act or (ii) pursuant to an available exemption
from registration under the Securities Act and applicable state securities laws and, if reasonably requested by the Company, upon delivery by such Purchaser of an opinion of counsel reasonably satisfactory to the Company to the effect that the
proposed transfer is exempt from registration under the Securities Act and applicable state securities laws. Any transfer or purported transfer of the Shares in violation of this Section 6.1 shall be voidable by the Company; provided,
however, that no opinion will be required in connection with (1) a public sale or transfer of Shares pursuant to an effective registration statement in connection with which such Purchaser represents in writing to the Company that such
Shares have been or are being sold pursuant to such registration statement; (2) a public sale of Shares pursuant to Rule 144 under the Securities Act if such Purchaser has delivered to the Company a customary and accurate Rule 144 broker’s
and seller’s representation letter; or (3) a sale of shares pursuant to Rule 144(k) under the Securities Act if such Purchaser has delivered to the Company a customary and accurate Rule 144 seller’s representation letter. The Company
shall not register any transfer of the Shares in violation of this Section 6.1. The Company may, and may instruct any transfer agent for the Company, to place such stop transfer orders as may be required on the transfer books of the
Company in order to ensure compliance with the provisions of this Section 6.1. 
  

 15 

 6.2 Legends. Each certificate representing any of the Shares shall be endorsed with a
legend in substantially the form set forth below, and each Purchaser covenants that, except to the extent such restrictions are waived by the Company, it shall not transfer the shares represented by any such certificate without complying with the
restrictions on transfer described in this Agreement and the legends endorsed on such certificate: 
 THE SHARES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY ONLY BE OFFERED, SOLD, ASSIGNED, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF
PURSUANT TO (I) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND SUCH LAWS OR (II) AN EXEMPTION FROM REGISTRATION UNDER SAID ACT, AND TO THE EXTENT PERMITTED BY SECTION 6.1 OF THE COMMON STOCK PURCHASE AGREEMENT PURSUANT TO WHICH
THE SHARES REPRESENTED HEREBY WERE ACQUIRED, UPON DELIVERY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT THE PROPOSED TRANSFER IS EXEMPT FROM THE ACT AND SUCH LAWS. 
 6.3 Removal of Legends. Upon the earlier of (i) the effectiveness of the Registration Statement (as defined in the Registration Rights
Agreement) covering resale of the Shares under the Securities Act or (ii) the Shares becoming eligible for resale under Rule 144(k) promulgated under the Securities Act, the Company shall (A) deliver to the transfer agent for the Common
Stock (the “Transfer Agent”) irrevocable instructions that the Transfer Agent shall reissue a certificate representing the Shares without legends upon receipt by such Transfer Agent of the legended certificates for such
Shares, together with either (1) a customary representation by the applicable Purchaser that Rule 144(k) promulgated under the Securities Act applies to the Shares represented thereby or (2) a statement by the Purchaser that such Purchaser
has sold the Shares represented thereby in accordance with the Plan of Distribution contained in the Registration Statement, and (B) cause its counsel to deliver to the Transfer Agent one or more blanket opinions to the effect that the removal
of such legends in such circumstances may be effected under the Securities Act. From and after the earlier of such dates, upon a Purchaser’s written request, the Company shall promptly cause certificates evidencing the Purchaser’s Shares
to be replaced with certificates which do not bear such restrictive legends. When the Company is required to cause unlegended certificates to replace previously issued legended certificates, if unlegended certificates are not delivered to a
Purchaser within five (5) business days of submission by that Purchaser of legended certificate(s) to the Transfer Agent as provided above, the Company shall be liable to the Purchaser for liquidated damages in an amount equal to 1.0% of the
aggregate purchase price of the Shares evidenced by such certificate(s) for each thirty (30) day period (pro rated for any period of less than 30 days) beyond such five (5) business days that the unlegended certificates have not been so
delivered. 
 7. Termination; Liabilities Consequent Thereon. This Agreement may be terminated and the transactions contemplated
hereunder abandoned at any time prior to the Closing only as follows: 
 (a) with respect to a Purchaser, by such Purchaser,
upon notice to the Company if the conditions set forth in Section 5.1 shall not have been satisfied on or prior to March 27, 2006; or 
  

 16 

 (b) with respect to a Purchaser, by the Company, upon notice to such Purchaser if the
conditions set forth in Section 5.2 to be satisfied by such Purchaser shall not have been satisfied on or prior to March 27, 2006; or 
 (c) at any time by mutual agreement of the Company and Purchasers who represent at least fifty percent (50%) of the Shares being sold hereunder; or 
 (d) with respect to a Purchaser, by such Purchaser, if there has been any breach of any representation or warranty or any material breach
of any covenant of the Company contained herein and the same has not been cured within 15 days after notice thereof (it being understood and agreed by each Purchaser that, in the case of any representation or warranty of the Company contained herein
which is not hereinabove qualified by application thereto of a materiality standard, such representation or warranty will be deemed to have been breached for purposes of this Section 7.1(d) only if such representation or warranty was not
true and correct in all material respects at the time such representation or warranty was made by the Company); or 
 (e) by
the Company with respect to a Purchaser, if there has been any breach of any representation, warranty or any material breach of any covenant of such Purchaser contained herein and the same has not been cured within 15 days after notice thereof (it
being understood and agreed by the Company that, in the case of any representation and warranty of the Purchaser contained herein which is not hereinabove qualified by application thereto of a materiality standard, such representation or warranty
will be deemed to have been breached for purposes of this Section 7.1(e) only if such representation or warranty was not true and correct in all material respects at the time such representation or warranty was made by such Purchaser).

 Any termination pursuant to this Section 7 shall be without liability on the part of any party, unless such
termination is the result of a material breach of this Agreement by a party to this Agreement in which case such breaching party shall remain liable for such breach notwithstanding any termination of this Agreement. 
 8. Miscellaneous Provisions. 
 8.1
Use of Proceeds. The Company shall use the net proceeds from the sale of the Shares for general corporate and working capital purposes and may use a portion of such proceeds to retire certain debt obligations of the Company.

 8.2 Filings. The Company shall make all necessary filings with the SEC and “blue sky” filings required to
be made by the Company in connection with the sale of the Shares to the Purchasers as required by all applicable laws, and shall provide a copy thereof to the Purchasers promptly after such filing. 
 8.3 Public Statements or Releases. Each of the parties to this Agreement agrees that it shall not make, issue, or release any announcement,
whether to the public generally, or to any of its suppliers or customers, with respect to this Agreement or the transactions provided for herein, or make any statement or acknowledgment of the existence of, or reveal the status of, this Agreement or
the transactions provided for herein, without the prior consent of the other parties, which shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, nothing in this Section 8.3 shall prevent any party hereto from
making such public announcements or filings 

  

 17 

 
as it may consider necessary in order to satisfy its legal obligations, or from releasing a public statement acceptable to each of the parties hereto upon
the completion of the offering contemplated hereby. By 8:30 a.m. (New York time) on the first business day following the date hereof, the Company will issue a press release acceptable to each of the parties hereto describing the transactions
contemplated by this Agreement. As soon as possible but not later than the first business day following the Closing Date, the Company will issue a press release acceptable to each of the parties hereto describing the closing of the transactions
contemplated by this Agreement, and promptly thereafter file a Current Report on Form 8-K with the SEC, attaching such press release. 
 8.4
Further Assurances. The parties agree to cooperate fully to execute such further instruments, documents and agreements and to give such further written assurances, as may be reasonably requested by any party to better evidence and
reflect the transactions described herein and contemplated hereby, and to carry into effect the intents and purposes of this Agreement. 
 8.5 Notification of Effectiveness of Registration Statement. The Company covenants that it will provide written notice to each Purchaser (which notice may be in electronic form) that the Company’s registration statement
on Form S-3 registering the Shares sold hereunder to the Purchasers has been declared effective by the SEC, which notice shall be given promptly after the Company has received notice of such effectiveness from the SEC. 
 8.6 Rights Cumulative. Each and all of the various rights, powers and remedies of the parties hereto shall be considered to be cumulative
with and in addition to any other rights, powers and remedies which such parties may have at law or in equity in the event of the breach of any of the terms of this Agreement. The exercise or partial exercise of any right, power or remedy shall
neither constitute the exclusive election thereof nor the waiver of any other right, power or remedy available to such party. 
 8.7
Pronouns. All pronouns or any variation thereof shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as the identity of the person, persons, entity or entities may require. 
 8.8 Notices. 
 (a) Any notices, reports or other correspondence (hereinafter collectively referred to as “correspondence”) required or permitted to be given hereunder shall be sent by postage prepaid first class mail, courier or facsimile
or delivered by hand to the party to whom such correspondence is required 
 or permitted to be given hereunder. The date of giving any notice shall be the
date of its actual receipt. 
 (b) All correspondence to the Company shall be addressed as follows: 
 EP MedSystems, Inc. 
 575 Route 73 North

 Building D 
 West Berlin, New
Jersey 08091-9293 
  

 18 

 Attention: President and Chief Executive Officer 
 Facsimile: (856) 753-8544 
 with a copy
to: 
 Mayer, Brown, Rowe & Maw LLP 
 1675 Broadway 
 New York, NY 10019 
 Attention: Thomas M. Vitale, Esq. 
 Facsimile: (212) 262-1910 
 (c) All correspondence to any Purchaser shall be sent to such Purchaser at the
address set forth in Exhibit A. 
 (d) Any Person may change the address to which correspondence to it is to be
addressed by notification as provided for herein. 
 8.9 Captions. The captions and paragraph headings of this Agreement are
solely for the convenience of reference and shall not affect its interpretation. 
 8.10 Severability. Should any part or
provision of this Agreement be held unenforceable or in conflict with the applicable laws or regulations of any jurisdiction, the invalid or unenforceable part or provisions shall be replaced with a provision which accomplishes, to the extent
possible, the original business purpose of such part or provision in a valid and enforceable manner, and the remainder of this Agreement shall remain binding upon the parties hereto. 
 8.11 Governing Law; Injunctive Relief. 
 (a) This Agreement shall be governed by and construed and enforced in accordance with the internal and substantive laws of the State of New York and without regard to any conflicts of laws concepts that would apply
the substantive law of any other jurisdiction. 
 (b) Each of the parties hereto acknowledges and agrees that damages will not
be an adequate remedy for any material breach or violation of this Agreement if such material breach or violation would cause immediate and irreparable harm (an “Irreparable Breach”). Accordingly, in the event of a threatened
or ongoing Irreparable Breach, each party hereto shall be entitled to seek, in any state or federal court in the State of New York, equitable relief of a kind appropriate in light of the nature of the ongoing or threatened Irreparable Breach, which
relief may include, without limitation, specific performance or injunctive relief; provided, however, that if the party bringing such action is unsuccessful in obtaining the relief sought, the moving party shall pay the non-moving party’s
costs, including actual attorney’s fees, incurred in connection with defending such action. Such remedies shall not be the parties’ exclusive remedies, but shall be in addition to all other remedies provided in this Agreement. 

8.12 Waiver. No waiver of any term, provision or condition of this Agreement, whether by conduct or otherwise, in any one or more
instances, shall be deemed to be, or be 

  

 19 

 
construed as, a further or continuing waiver of any such term, provision or condition or as a waiver of any other term, provision or condition of this
Agreement. 
 8.13 Fees, Costs and Expenses. All fees, costs and expenses (including attorneys’ fees and expenses)
incurred by any party hereto in connection with the preparation, negotiation and execution of this Agreement and the exhibits hereto and the consummation of the transactions contemplated hereby and thereby (including the costs associated with any
filings with, or compliance with any of the requirements of, any governmental authorities), shall be the sole and exclusive responsibility of such party. 
 8.14 Assignment. The rights and obligations of the parties hereto shall inure to the benefit of and shall be binding upon the authorized successors and permitted assigns of each party. The Company shall
not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Majority Purchasers. Any Purchaser may assign its rights under this Agreement to any person to whom the Purchaser assigns or transfers any
Shares, provided that such transferee agrees in writing to be bound by the terms and provisions of this Agreement, and such transfer is in compliance with the terms and provisions of this Agreement and permitted, with the approval of counsel to the
Company, by federal and state securities laws. 
 8.15 Survival. The respective representations and warranties given by the
parties hereto, and the other covenants and agreements contained herein, shall survive the Closing Date and the consummation of the transactions contemplated herein for a period of two years, without regard to any investigation made by any party.

 8.16 Entire Agreement. This Agreement and exhibits attached hereto and incorporated herewith constitute the entire agreement
between the parties hereto respecting the subject matter hereof and supersedes all prior agreements, negotiations, understandings, representations and statements respecting the subject matter hereof, whether written or oral. 
 8.17 Amendments. No modification, alteration, waiver or change in any of the terms of this Agreement shall be valid or binding upon the
parties hereto unless made in writing and duly executed by the Company and (a) prior to Closing, Purchasers who represent at least 66 2/3% of the Shares being sold hereunder or (b) following Closing, Purchasers holding at least 66 2/3% of the Shares; provided, however, that, in each case, no such amendment shall increase the obligations of any Purchaser without such Purchaser’s written consent. 
 8.18 Confidential Information. Each of the Company and each Purchaser agrees to keep confidential, and not to disclose to or use for the
benefit of any third party, the terms of this Agreement or any other information which at any time is communicated by the other party as being confidential, without the prior written approval of the other party; provided, however, that this
provision shall not apply to information which, at the time of disclosure, is already part of the public domain (except by breach of this Agreement) and information which is required to be disclosed by law (including, without limitation, pursuant to
Item 601(b)(10) of Regulation S-K under the Securities Act and the Exchange Act) and provided further the Company will not furnish confidential information to a Purchaser without (i) informing such Purchaser regarding the nature of such
information and (ii) receiving the prior express written agreement of such 

  

 20 

 
Purchaser. Notwithstanding anything herein to the contrary, any party to this Agreement (and any employee, representative, or other agent of any party to
this Agreement) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses) that
are provided to it relating to such tax treatment and tax structure. However, any such information relating to the tax treatment or tax structure is required to be kept confidential to the extent necessary to comply with any applicable federal or
state securities laws. 
 8.19 Stock Splits, Dividends and other Similar Events. The provisions of this Agreement shall be
appropriately adjusted to reflect any stock split, stock dividend, reorganization or other similar event that may occur with respect to the Company after the date hereof. 
 8.19 Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. 
 [The remainder of this page has been intentionally left blank; signature page follows.] 
  

 21 

 IN WITNESS WHEREOF, the parties hereto have executed this Common Stock Purchase Agreement as of the day
and year first above written. 
  

			
	EP MEDSYSTEMS, INC.
		
	By:	 	 /s/ Matthew C. Hill

		 	 Name: Matthew C. Hill
 Title: Chief Financial Officer

 THE PURCHASER’S SIGNATURE TO THE INVESTOR QUESTIONNAIRE DATED EVEN DATE HEREWITH SHALL CONSTITUTE
THE PURCHASER’S SIGNATURE TO THIS COMMON STOCK PURCHASE AGREEMENT. 
  

 22 

 Exhibit A 
  

								
	 PURCHASER
	  	 ADDRESS
	  	 NUMBER
 OF SHARES
TO BE
PURCHASED
	  	AGGREGATE
PURCHASE
PRICE ($)
	FatBoy Capital, L.P.	  	 9611 North U.S. Highway 1, Box 390
 Sebastan, FL
32958
	  	617,284	  	$	1,500,000.12

 Exhibit B 
 Form of Mayer, Brown, Rowe & Maw LLP Opinion 
 See attached. 

 Exhibit C 
 Form of Investor QuestionnaireRegistration Rights Agreement, dated March 24, 2006

 EXHIBIT 10.3 
 REGISTRATION RIGHTS AGREEMENT 
 This REGISTRATION RIGHTS AGREEMENT (this
“Agreement”) is made as of March 24 2006 by and among (i) EP MedSystems, Inc., a New Jersey corporation (the “Company”), (ii) each purchaser of Common Stock (as defined below) pursuant
to the Stock Purchase Agreement (as defined below) (collectively, the “Investors” and each individually, an “Investor”), and (iii) each person or entity that subsequently becomes a party to this
Agreement pursuant to, and in accordance with, the provisions of Section 12 hereof (each an “Investor Permitted Transferee” and collectively, the “Investor Permitted Transferees”);

 WHEREAS, the Company has agreed to issue and sell to the Investors, and the Investors have agreed to purchase from the Company up to an
aggregate of 4,444,500 shares (the “Purchased Shares”) of the Company’s common stock, no par value, $0.001 stated value per share (the “Common Stock”), all upon the terms and conditions set forth
in that certain Common Stock Purchase Agreement, dated of even date herewith, between the Company and the Investors (the “Stock Purchase Agreement”); and 
 WHEREAS, the terms of the Stock Purchase Agreement provide that it shall be a condition precedent to the closing of the transactions thereunder, for the
Company and the Investors to execute and deliver this Agreement. 
 NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein, the parties hereto hereby agree as follows: 
 1. Definitions. The following terms shall have the meanings provided
therefor below or elsewhere in this Agreement as described below: 
 “Affiliate” of a party means any
other Person controlling, controlled by or under common control with the specified Person. For the purposes of this definition, “control” means the power to direct the management and policies of such Person, whether through
the ownership of voting securities, by contract or otherwise. 
 “Board” shall mean the board of
directors of the Company. 
 “Closing” shall have the meaning ascribed to such term in the Stock
Purchase Agreement. 
 “Closing Date” shall have the meaning ascribed to such term in the Stock
Purchase Agreement. 
 “Effectiveness Deadline” shall be the earlier of (i) five business days
after the SEC shall have communicated to the Company in writing that Registration Statement will not be reviewed or is no longer subject to further review and comments and (ii) ninety (90) days after the Closing Date or, in the event of a
review of the Registration Statement by the SEC, one hundred twenty (120) days after the Closing Date. 
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and all of the rules and regulations promulgated thereunder. 

 “Filing Date Deadline” shall be thirty (30) days after the
Closing Date. 
 “Investors” shall mean, collectively, the Investors and the Investor Permitted
Transferees; provided, however, that the term “Investors” shall not include any of the Investors or any of the Investor Permitted Transferees that ceases to own or hold any Purchased Shares. 
 “Majority Holders” shall mean, at the relevant time of reference thereto, those Investors holding more than sixty
six and two-thirds (66 2/3%) of the Registrable Shares held by all of the Investors. 
 “NASD” shall
mean the National Association of Securities Dealers, Inc. 
 “Person” shall mean an individual,
corporation, company, partnership, firm, association, joint venture, trust, unincorporated organization, government, governmental body, agency, political subdivision or other entity. 
 “Qualifying Holder” shall have the meaning ascribed thereto in Section 12 hereof. 
 “Registrable Shares” shall mean (i) the Purchased Shares, (ii) any shares of Common Stock issued
pursuant to Section 3(e) or Section 3(f) hereof and (iii) any shares of Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right or other security that is issued as) a dividend or other
distribution (including a stock split or reverse stock split) with respect to, or in exchange for, or in replacement of, the shares of Common Stock referred to in clause (i) or (ii) of this definition. 
 “Rule 144” shall mean Rule 144 promulgated under the Securities Act and any successor or substitute rule, law or
provision. 
 “SEC” shall mean the Securities and Exchange Commission. 
 “Securities Act” shall mean the Securities Act of 1933, as amended, and all of the rules and regulations
promulgated thereunder. 
 2. Effectiveness; Termination. This Agreement shall become effective and legally binding only if the
Closing occurs. This Agreement shall terminate and be of no further force or effect, automatically and without any action being required of any party hereto, upon the termination of the Stock Purchase Agreement pursuant to Section 7
thereof. Nothing contained herein or in any agreement or document relating to this transaction, and no action taken by any Investor, shall be deemed to constitute the Investors as, or to create any presumption that the Investors are in any way
acting in concert or as, a group with respect to the obligations or transaction hereunder. Each Investor shall be entitled to independently protect and enforce its rights hereunder. 
 3. Registration. 
 (a) As soon as practicable, but in no event later than the Filing Date Deadline, the Company shall prepare and file with the SEC a registration statement on Form S-3 for the 

  

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purpose of registering under the Securities Act all of the Registrable Shares for resale by, and for the account of, the Investors as selling stockholders
thereunder (the “Registration Statement”, which term, for purposes of Section 5 hereof, shall include each Piggyback Registration Statement (as defined below)). The Registration Statement shall permit the
Investors to offer and sell, on a delayed or continuous basis pursuant to Rule 415 under the Securities Act, any or all of the Registrable Shares. The Company shall use all commercially reasonable efforts to cause the Registration Statement to be
declared effective after 5:00 p.m. as promptly as possible after filing, but in no event later than the Effectiveness Deadline, and shall be required to keep the Registration Statement effective until such date that is the earlier of (i) the
second anniversary of the effective date of such Registration Statement; and (ii) the date on which the Shares can be sold by non-affiliates of the Company without registration under Rule 144(k) promulgated under the Securities Act (the
“Mandatory Registration Termination Date”). Thereafter, the Company shall be entitled to withdraw the Registration Statement and the Investors shall have no further right to offer or sell any of the Registrable Shares
pursuant to the Registration Statement (or any Prospectus relating thereto). The Company will timely file a Form D in accordance with the provisions of Regulation D promulgated by the SEC under the Securities Act with respect to the transactions
contemplated by Stock Purchase Agreement and this Agreement. 
 (b) Unless otherwise agreed to by the Company and the
Investors, the offer and sale of the Registrable Shares pursuant to the Registration Statement shall not be underwritten. 
 (c) The Company represents and warrants that, as of the date of this Agreement, it meets the requirements for the use of Form S-3 for registration of the resale by the Investors of the Registrable Shares, and it will use its commercially
reasonable efforts to continue to meet such requirements during the period in which it takes to have the Registration Statement declared effective. 
 (d) The Company shall cause all of the Registrable Shares to be listed on the Nasdaq Capital Market. 
 (e) This Section 3(e) shall apply to the Company’s obligation under Section 3(a) hereof to file the Registration Statement with the SEC and to cause such Registration Statement to become effective. Subject to
the provisions below, the Company and Investors agree that the Investors will suffer damages if the Registration Statement is not declared effective by the SEC, subject to receipt of the necessary information from the Investors, on or prior to the
Effectiveness Deadline. The Company and the Investors further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if (i) the Registration Statement is not filed on or prior to the Filing Date
Deadline; or (ii) the Registration Statement is not declared effective prior to the Effectiveness Deadline (unless, in each case, an Event results, directly or indirectly, from any act of war or terrorism) (each of the events listed in
(i)-(ii) above being referred to as an “Event”), then the Company shall pay to each Investor as liquidated damages for any such failure and not as a penalty an amount equal to 1.0% of the purchase price for the Shares
purchased by such Investor pursuant to the Stock Purchase Agreement for each full thirty (30) day period (or pro rata for any portion thereof) following an Event until such Event has been cured. Such Liquidated Damages (as defined below) shall
be 

  

 3 

 
payable monthly, at the election of the Company, in (x) cash by wire transfer of immediately available funds or (y) that number of shares of Common
Stock equal to (A) the amount owed to such Investor in Liquidated Damages pursuant to this Section 3(f) divided by (B) $2.25 (rounding down to the nearest whole share). If the Company is required to issue any additional shares of
Common Stock pursuant to the foregoing, the Company shall include those shares in the Registration Statement; provided, however, that the Company shall not have the right to issue shares of Common Stock in payment of Liquidated Damages
if the number of shares issuable on account of the occurrence of Events and/or a lapse in the effectiveness of the Registration Statement as provided herein, plus the shares issued to Investors pursuant to the Stock Purchase Agreement, would exceed
19.99% of the Company’s issued and outstanding stock as of the date hereof. 
 (f) Subject to the provisions below, and
except for time periods during which the effectiveness of the Registration Statement may be suspended as provided in Section 11 hereof, should the effectiveness of the Registration Statement or the Prospectus included therein (the
“Prospectus”) lapse for any reason while the Company has any obligation to maintain such Registration Statement and Prospectus or the Registration Statement or Prospectus ceases to be usable for any reason, and the Company
does not cure such lapse in effectiveness or other reason, within fifteen (15) business days (the “Cure Period”) by a post-effective amendment to the Registration Statement, a supplement to the Prospectus or a report
filed pursuant to the Exchange Act that cures such lapse, the Company shall pay each Investor damages from the period from and including the first day following the expiration of the Cure Period until, but excluding, the earlier of (1) the date
in which such failure is cured and (2) the date which is fifteen (15) months following the Closing Date, at a rate equal to 1% per annum (pro rata on a 360 day basis) of the total purchase price for the Purchased Shares purchased by
each Investor pursuant to the Stock Purchase Agreement. Such Liquidated Damages (as defined below) shall be payable monthly, at the election of the Company, in (x) cash by wire transfer of immediately available funds or (y) that number of
shares of Common Stock equal to (A) the amount owed to such Investor in Liquidated Damages pursuant to this Section 3(f) divided by (B) $2.25 (rounding down to the nearest whole share). 
 (g) For purposes of Section 3(e) and Section 3(f), the amounts payable by the Company under this Agreement are
referred to collectively herein as “Liquidated Damages”. In any event, no Liquidated Damages shall accrue after the twenty four (24) month anniversary of the Closing Date. The parties agree that the Liquidated Damages
represent a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount of damages that may be incurred by the Investors if the Registration Statement is not filed on or prior to the Filing Date Deadline or has
not been declared effective by the SEC on or prior to the Effectiveness Deadline or if there is a lapse in the effectiveness of the Registration Statement or Prospectus or if the Registration Statement or Prospectus ceases to be usable. 

4. “Piggyback” Registration Rights. 
 (a) If, at any time after the Mandatory Registration Termination Date, the Company proposes to register any of its Common Stock under the
Securities Act, whether as a result of a primary or secondary offering of Common Stock or pursuant to registration rights granted to holders of other securities of the Company (but excluding in all cases any registrations 

  

 4 

 
to be effected on Forms S-4 or S-8 or other applicable successor forms), the Company shall, each such time, give to the Investors holding Registrable Shares
written notice of its intent to do so. Upon the written request of any such Investor given within 20 days after the giving of any such notice by the Company, the Company shall use reasonable efforts to cause to be included in such registration the
Registrable Shares of such Investor, to the extent requested to be registered; provided that (1) the number of Registrable Shares proposed to be sold by such Investor is equal to at least twenty-five percent (25%) of the total number of
Registrable Shares then held by such participating Investor, (ii) such Investor agrees to sell those of its Registrable Shares to be included in such registration in the same manner and on the same terms and conditions as the other shares of
Common Stock which the Company proposes to register and (iii) if the registration is to include shares of Common Stock to be sold for the account of the Company or any party exercising demand registration rights pursuant to any other agreement
with the Company in an underwritten offering, the proposed managing underwriter does not advise the Company that in its opinion the inclusion of such Investor’s Registrable Shares (without any reduction in the number of shares to be sold for
the account of the Company or such party exercising demand registration rights) is likely to materially and adversely affect the success of the offering or the price that would be received for any shares of Common Stock offered, in which case the
rights of such Investor shall be as provided in Section 4(b) hereof. 
 (b) If a registration pursuant to
Section 4(a) hereof involves an underwritten offering and the managing underwriter shall advise the Company in writing that, in its opinion, the number of shares of Common Stock requested by the Investors to be included in such
registration is likely to materially and adversely affect the success of the offering or the price that would be received for any shares of Common Stock offered in such offering, then, notwithstanding anything in Section 4(a) to the
contrary, the Company shall only be required to include in such registration, to the extent of the number of shares of Common Stock which the Company is so advised can be sold in such offering, (i) first, the number of shares of Common Stock
proposed to be included in such registration for the account of the Company and/or any stockholders of the Company (other than the Investors) that have exercised demand registration rights, in accordance with the priorities, if any, then existing
among the Company and/or such stockholders of the Company with registration rights (other than the Investors), and (ii) second, the shares of Common Stock requested to be included in such registration by all other stockholders of the Company
who have piggyback registration rights (including, without limitation, the Investors), pro rata among such other stockholders (including, without limitation, the Investors) on the basis of the number of shares of Common Stock that each of them
requested to be included in such registration. 
 (c) In connection with any offering involving an underwriting of shares
under this Section 4, the Company shall not be required under this Section 4 or otherwise to include the Registrable Shares of any Investor therein unless such Investor accepts and agrees to the terms of the underwriting,
which shall be reasonable and customary, as agreed upon between the Company and the underwriters selected by the Company. 
  

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 5. Obligations of the Company. In connection with the Company’s obligation under
Sections 3 and 4, the Company shall, as expeditiously as reasonably possible: 
 (a) Prepare and file with the SEC such
amendments and supplements to the Registration Statement and the Prospectus as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Shares covered by the Registration Statement;
provided, however, that before filing a registration statement or Prospectus or any amendments or supplements thereto, or comparable statements under securities or blue sky laws of any jurisdiction, the Company will furnish to one
counsel to be designated by Investors participating in the planned offering and/or to one additional counsel designated by each Investor (each, a “Designated Counsel”), copies of the “Selling
Securityholder” and “Plan of Distribution” sections of such filings, or, at the request of an Investor, of all such documents proposed to be filed (including all exhibits thereto), which documents will be subject
to the reasonable review and reasonable comment of such counsel. 
 (b) Furnish to the Investors such number of copies of the
Prospectus, including a preliminary Prospectus, in conformity with the requirements of the Securities Act, and such other documents (including, without limitation, Prospectus amendments and supplements as are prepared by the Company in accordance
with Section 5(a) above) as the Investors may reasonably request in order to facilitate the disposition of such Investors’ Registrable Shares. 
 (c) Promptly notify the Investors, at any time when the Prospectus relating to the Registration Statement is required to be delivered
under the Securities Act, of the happening of any event (without disclosing the nature or substance of such event) as a result of which the Prospectus included in or relating to the Registration Statement contains an untrue statement of a material
fact or omits any fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and, thereafter, the Company will promptly prepare (and, when completed, give notice to each Investor) a
supplement or amendment to such Prospectus so that, as thereafter delivered to the purchasers of such Registrable Shares pursuant to the Registration Statement, such Prospectus will not contain an untrue statement of a material fact or omit to state
any fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided that upon such notification by the Company of the foregoing and instructing each Investor to cease to offer and
sell Registrable Shares, each Investor will use commercially reasonable efforts to cease its offer and sale of Registrable Shares until the Company has notified the Investors that it has prepared a supplement or amendment to such Prospectus and
delivered copies of such supplement or amendment to the Investors (it being understood and agreed by the Company that the foregoing proviso shall in no way diminish or otherwise impair the Company’s obligation to promptly prepare a Prospectus
amendment or supplement as above provided in this Section 5(c) and deliver copies of same as above provided in Section 5(b) hereof). 
 (d) Use commercially reasonable efforts to register and qualify the Registrable Shares covered by the Registration Statement under such
other securities or blue sky laws of such jurisdictions as shall be reasonably appropriate in the opinion of the Company and the managing underwriters, if any, or if reasonably requested by the Investors; provided that, or unless requested by an
Investor and consented to by the Company (which consent shall not be unreasonably withheld), the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of
process in any such states or jurisdictions; and provided further that (notwithstanding anything in this 

  

 6 

 
Agreement to the contrary with respect to the bearing of expenses) if any jurisdiction in which any of such Registrable Shares shall be qualified shall
require that expenses incurred in connection with the qualification therein of any such Registrable Shares be borne by the Investors, then the Investors shall, to the extent required by such jurisdiction, pay their pro rata share of such
qualification expenses. 
 (e) Promptly notify (i) each Investor (A) any time when the Registration Statement, the
Prospectus or any Prospectus supplement related thereto or post effective amendment has been filed, and with respect to the Registration Statement or any post-effective amendment, when the same has become effective, and with respect to the
Registration Statement, provide each Investor who has provided its current e-mail address to Counsel to the Company, a copy of the Prospectus by electronic mail prior to the opening of trading of the Company’s Common Stock on the first business
day following the date on which the Registration Statement has become effective, (B) of the issuance of any stop order by the SEC suspending the effectiveness of such Registration Statement or the initiation of any proceedings by any person to
such effect, and promptly use all commercially reasonable efforts to obtain the release of such suspension, (C) of the receipt by the Company of any notification with respect to the suspension of the qualification of any Registrable Shares for
sale under the securities or blue sky laws of any jurisdiction or the initiation of any proceeding for such purpose, (D) when a Prospectus relating to the registration of the Registrable Shares is required to be delivered under the Securities
Act, or (E) of the happening of any event as a result of which the Prospectus included, as then in effect, includes any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances then existing; and (ii) Designated Counsel of any request by the SEC for amendments or supplements to the Registration Statement or Prospectus or for additional information. If
the notification relates to an event described in Section 5(c), the Company shall in accordance with Section 5(a), promptly prepare and furnish to each Investor, if any, selling Registrable Shares covered by such registration
statement, a reasonable number of copies of a Prospectus supplemented or amended so that, as thereafter delivered to the purchasers of such Registrable Shares, such Prospectus shall not include an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the statements therein in the light of the circumstances under which they were made not misleading. 
 (f) Cause all such Registrable Shares registered pursuant to this Agreement to be listed on each securities exchange on which similar
securities issued by the Company are then listed, if the listing of such Registrable Shares is then permitted under the rules of such exchange, or if no similar securities are then so listed, to either cause all such Registrable Shares to be listed
on a national securities exchange or to secure designation of all such Registrable Shares as a NASDAQ “national market system security” within the meaning of Rule 11Aa2-1 of the Exchange Act, or failing that, secure NASDAQ
authorization for such Registrable Shares. 
 (g) Provide a transfer agent and registrar for all Registrable Shares registered
pursuant to this Agreement and a CUSIP number for all such Registrable Shares, in each case not later than the effective date of registration and, at the time of the sale of the Registrable Shares pursuant to an effective Registration Statement or
in accordance with Section 6.3 of the Stock Purchase Agreement, use commercially reasonable efforts to cause the transfer agent to remove restrictive legends on the securities covered by such Registration Statement. 
  

 7 

 (h) Promptly deliver to Designated Counsel copies of all correspondence between the SEC
and the Company, its counsel or auditors and all memoranda relating to discussions with the SEC or its staff with respect to the registration statement, other than those portions of any such memoranda that contain information subject to attorney
client privilege with respect to the Company, and, upon receipt of such confidentiality agreements as the Company may reasonably request, make reasonably available for inspection by Designated Counsel participating in any disposition to be effected
pursuant to the Registration Statement, all pertinent financial and other records, pertinent corporate documents and properties of the Company, and cause all of the Company’s officers, directors and employees to supply all information
reasonably requested by Designated Counsel in connection with such Registration Statement. 
 (i) Use commercially reasonable
best efforts to obtain the withdrawal of any order suspending the effectiveness of the Registration Statement. 
 (j) Upon
written request, furnish to each Investor participating in the offering, without charge, at least one (1) conformed copy of the Registration Statement and any post-effective amendments thereto, including financial statements, all documents
incorporated therein by reference and all exhibits (including those incorporated by reference). 
 (k) Comply with all
applicable rules and regulations of the SEC, and make generally available to its security holders, as soon as reasonably practicable after the effective date of the Registration Statement (and in any event within sixteen (16) months
thereafter), an earnings statement (which need not be audited) covering the period of at least twelve (12) consecutive months beginning with the first day of the Company’s first calendar quarter after the effective date of the Registration
Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder. 
 (l) The Company will notify each Investor that the Registration Statement has been declared effective by 8:30 a.m. on the first business day following the date on which the Registration Statement is declared effective
by the SEC. 
 6. Furnish Information. It shall be a condition precedent to the obligations of the Company to take any action
pursuant to this Agreement (including, without limitation, to maintain the accuracy of any information previously furnished by Investors for use in the Registration Statement) that the Investors shall furnish to the Company such information
regarding them and the securities held by them as the Company shall reasonably request and as shall be required by applicable securities laws in order to effect any registration by the Company pursuant to this Agreement. 
 7. Expenses of Registration. All of the expenses incurred by the Company in connection with the registration of the Registrable Shares
pursuant to this Agreement (excluding underwriting, brokerage and other selling commissions and discounts), including without limitation, all registration, qualification and filing fees, printing fees and fees and disbursements of its counsel and
one counsel to the Investors, shall be borne by the Company, whether or not such Registration Statement becomes effective or remains effective for the period contemplated hereby. 
  

 8 

 8. Delay of Registration. No Investor shall take any action to restrain, enjoin or
otherwise delay any registration as the result of any controversy which might arise with respect to the interpretation or implementation of this Agreement. 
 9. Indemnification. For the purposes of this Section 9 and Section 11, the term “Registration Statement” shall include any preliminary or final Prospectus, exhibit, supplement or
amendment included in or relating to, as the case may be, the Registration Statement referred to in Section 3(a). 
 (a)
To the extent permitted by law, the Company will indemnify and hold harmless each Investor, its directors, officers, employees, fiduciaries, members, managers, or general or limited partners (and the directors, officers, employees and stockholders
thereof), any broker/dealer acting on behalf of any Investor and each officer and director of such Investor or broker/dealer and each Person, if any, who controls such Investor or broker/dealer within the meaning of the Securities Act (each, an
“Investor Indemnified Person”), against any losses, claims, damages or liabilities, joint or several, and expenses (including reasonable counsel fees and disbursements, any amounts paid in any settlement effected with the
Company’s prior written consent) to which they may become subject under the Securities Act, the Exchange Act, state securities laws or otherwise, insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect
thereof) arise out of or are based upon (i) any untrue or alleged untrue statement of any material fact contained in the Registration Statement or in any amendments or supplements to the Registration Statement or any registration statement
pursuant to which Registrable Shares are registered pursuant to Section 4 hereof (including any preliminary prospectus or final prospectus relating thereto, any amendments or supplements thereto and any exhibits thereto, a
“Piggyback Registration Statement”) or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein in light of
the circumstance under which they were made not misleading or any violation or alleged violation by the Company of the Securities Act, the Exchange Act, state securities laws or any rule or regulation promulgated under the Securities Act, the
Exchange Act, state securities laws or NASDAQ or (ii) any failure of the Company to fulfill any undertaking included in the Registration Statement, or any Piggyback Registration Statement; and will reimburse such Investor Indemnified Person for
any expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action (including reasonable expenses of legal counsel); provided, however, that the indemnity agreement
contained in this Section 9(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably
withheld), nor shall the Company be liable in any such case for any such loss, damage, liability or action to the extent that it arises out of or is based upon an untrue statement or alleged untrue statement or omission made in connection with the
Registration Statement or any Piggyback Registration Statement in reliance upon and in conformity with written information furnished expressly for use in connection with the Registration Statement or any Piggyback Registration Statement by the
Investors. Such indemnity and reimbursement of expenses shall remain in full force and effect regardless of any investigation made by or on behalf of such Investor Indemnified Person and shall survive the sale of such Registrable Shares by such
Investor. 
  

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 (b) To the extent permitted by law, each Investor will severally, and not jointly,
indemnify and hold harmless the Company, each of its directors, each of its officers who have signed the Registration Statement, or any Piggyback Registration Statement, each person, if any, who controls the Company within the meaning of the
Securities Act, or any broker/dealer acting on behalf of the Company (a “Company Indemnified Person”) against any losses, claims, damages or liabilities to which the Company or any such director, officer, controlling person,
or broker/dealer may become subject to, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any untrue or alleged untrue statement of any
material fact contained in the Registration Statement or any Piggyback Registration Statement or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading, in each case to the extent and only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in the
Registration Statement or any Piggyback Registration Statement, in reliance upon and in conformity with written information furnished by such Investor expressly for use in connection with the Registration Statement or any Piggyback Registration
Statement; and such Investor will reimburse any expenses reasonably incurred by a Company Indemnified Person in connection with investigating or defending any such loss, claim, damage, liability or action (including reasonable counsel fees and
disbursements); provided, however, that the liability of each Investor hereunder shall be limited to the proceeds (net of underwriting discounts and commissions, if any) received by such Investor from the sale of Registrable Shares
covered by the Registration Statement or Piggyback Registration Statement; as the case may be; and provided, further, however, that the indemnity agreement contained in this Section 9(b) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of those Investor(s) against which the request for indemnity is being made (which consent shall not be unreasonably withheld).
Such indemnity and reimbursement of expenses shall remain in full force and effect regardless of any investigation made by or on behalf of such Company Indemnified Person and, as relevant, shall survive the sale of such Registrable Shares by any
Investor. 
 (c) Promptly after receipt by an indemnified party under this Section 9 of notice of the commencement
of any action, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 9, notify the indemnifying party in writing of the commencement thereof and the indemnifying party
shall have the right to participate in and, to the extent the indemnifying party desires, jointly with any other indemnifying party similarly noticed, to assume at its expense the defense thereof with counsel mutually satisfactory to the
indemnifying parties with the consent of the indemnified party (which consent will not be unreasonably withheld, conditioned or delayed). In the event that the indemnifying party assumes any such defense, the indemnified party may participate in
such defense with its own counsel and at its own expense; provided, however, that the counsel for the indemnifying party shall act as lead counsel in all matters pertaining to such defense or settlement of such claim and the
indemnifying party shall only pay for such indemnified party’s expenses for the period prior to the date of its participation on such defense. 
 (d) If the indemnification provided for in this Section 9 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, claim, 

  

 10 

 
damage, liability or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to
the amount paid or payable by such indemnified party as a result of such loss, claim, or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other
in connection with the statements or omissions that resulted in such loss, claim, damage, liability or expense as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the
parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. If, however, the allocation provided in the first sentence of this paragraph is not permitted by applicable law, then
each indemnifying party shall contribute to the amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative faults but also the relative benefits of the indemnifying party and the
indemnified party as well as any other relevant equitable considerations. The parties hereto agree that it would not be just and equitable if contributions pursuant to this Section 9(d) were to be determined by pro rata allocation or by
any other method of allocation which does not take account of the equitable considerations referred to in the preceding sentences of this Section 9(d). The amount paid or payable in respect of any claim shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending such loss, claim, damage or liability. No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. Notwithstanding anything in this Section 9(d) to the contrary, no Investor shall
be required pursuant to this Section 9(d) to contribute any amount in excess of the net proceeds received by such Investor from the sale of Registrable Shares in the offering to which the loss, claims, damage or liability relates, less
the amount of any indemnification payment previously made by such indemnifying party pursuant to Section 9(b). 
 (e) The obligations of the Company and the Investors under this Section 9 shall survive the completion of any offering of Registrable Shares pursuant to a Registration Statement or any Piggyback Registration Statement.

 (f) Notwithstanding anything to the contrary herein, the indemnifying party shall not be entitled to settle any claim, suit
or proceeding unless in connection with such settlement the indemnified party receives an unconditional release with respect to the subject matter of such claim, suit or proceeding and such settlement does not contain any admission of fault by the
indemnified party. 
 10. Reports under the Exchange Act. With a view to making available to the Investors the benefits of Rule
144 and any other rule or regulation of the SEC that may at any time permit the Investors to sell the Purchased Shares to the public without registration, the Company agrees to use commercially reasonable efforts: (i) to make and keep public
information available, as those terms are understood and defined in the General Instructions to Form S-3, or any successor or substitute form, and in Rule 144; (ii) to file with the SEC in a timely manner all reports and other documents
required to be filed by an issuer of securities registered under the 

  

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Securities Act or the Exchange Act; (iii) as long as any Investor owns any Purchased Shares, to furnish in writing upon such Investor’s request a
written statement by the Company that it has complied with the reporting requirements of Rule 144 and of the Securities Act and the Exchange Act, and to furnish to such Investor a copy of the most recent annual or quarterly report of the Company,
and such other reports and documents so filed by the Company as may be reasonably requested in availing such Investor of any rule or regulation of the SEC permitting the selling of any such Purchased Shares without registration; and
(iv) undertake any additional actions reasonably necessary to maintain the availability of the Registration Statement or the use of Rule 144. 
 11. Deferral and Lock-up. Notwithstanding anything in this Agreement to the contrary, if the Company shall furnish to the Investors a certificate signed by the President or Chief Executive Officer of the Company stating that
the Board of Directors of the Company has made the good faith determination (i) that continued use by the Investors of the Registration Statement, or any Piggyback Registration Statement, for purposes of effecting offers or sales of Registrable
Shares pursuant thereto would require, under the Securities Act, premature disclosure in the Registration Statement, or any Piggyback Registration Statement of material, nonpublic information concerning the Company, its business or prospects or any
proposed material transaction involving the Company, (ii) that such premature disclosure would be materially adverse to the Company, its business or prospects or any such proposed material transaction or would make the successful consummation
by the Company of any such material transaction significantly less likely and (iii) that it is therefore essential to suspend the use by the Investors of such Registration Statement, or any Piggyback Registration Statement for purposes of
effecting offers or sales of Registrable Shares pursuant thereto, then the right of the Investors to use the Registration Statement, or any Piggyback Registration Statement for purposes of effecting offers or sales of Registrable Shares pursuant
thereto shall be suspended for not more than thirty (30) days at one time and on no more than two occasions in the aggregate (the “Suspension Period(s)”) after delivery by the Company of the certificate referred to above
in this Section 11. Such 30-day periods shall be at least two business days apart. In no event, however, will any suspension be any longer than is reasonably necessary to avoid the adverse effect. During any Suspension Period, none of
the Investors shall offer or sell any Registrable Shares publicly pursuant to or in reliance upon the Registration Statement, or the Prospectus, or any Piggyback Registration Statement (or the prospectus relating thereto). 
 12. Transfer of Registration Rights. None of the rights of any Investor under this Agreement shall be transferred or assigned to any person
unless (i) such person is a Qualifying Holder (as defined below), and (ii) such person agrees to become a party to, and bound by, all of the terms and conditions of, this Agreement by duly executing and delivering to the Company an
Instrument of Adherence in the form attached as Exhibit B hereto. For purposes of this Section 12, the term “Qualifying Holder” shall mean, with respect to any Investor, (i) any Affiliate of an
Investor, or (ii) any other direct transferee of Purchaser Shares of an Investor. None of the rights of any Investor under this Agreement shall be transferred or assigned to any person (including, without limitation, a Qualifying Holder) that
acquires Registrable Shares in the event that and to the extent that such person is eligible to resell such Registrable Shares pursuant to Rule 144(k) of the Securities Act or may otherwise resell such Registrable Shares pursuant to an exemption
from the registration provisions of the Securities Act. 
  

 12 

 13. Limitations on Subsequent Registration Rights. From and after the date of this
Agreement, the Company shall not, without the prior written consent of the Majority Holders, enter into any agreement with any holder or prospective holder of any securities of the Company that would allow such holder or prospective holder to
include such securities in any Piggyback Registration Statement unless under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that the inclusion of the securities
of such holder or prospective holder will not reduce the amount of the Registrable Shares which the Investors wish to include in such Registration Statement. 
 14. No Required Sale. Nothing in this Agreement shall be deemed to create an independent obligation on the part of any Investor to sell any Registrable Shares pursuant to any effective registration
statement. 
 15. Nominees for Beneficial Owners. If Registrable Shares are held by a nominee for the beneficial owner thereof,
the beneficial owner thereof may, at its option, be treated as the holder of such Registrable Shares for purposes of any request or other action by any Investor pursuant to this Agreement (or any determination of any number or percentage of shares
constituting Registrable Shares held by any Investor contemplated by this Agreement); provided that the Company shall have received assurances reasonably satisfactory to it of such beneficial ownership. 
 16. Entire Agreement. This Agreement and exhibits attached hereto and incorporated herewith constitute and contain the entire agreement and
understanding of the parties with respect to the subject matter hereof, and supersedes any and all prior negotiations, correspondence, agreements or understandings with respect to the subject matter hereof and supercedes all prior agreements,
negotiations, understandings, representations and statements respecting the subject matter hereof, whether oral or written. 
 17.
Agreement with Respect to Sales of Common Stock. Each Investor will not, and will cause each of its affiliates and any person acting on its or their behalf not to, directly or indirectly, offer, sell, pledge, transfer or otherwise
dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of the shares of Common Stock, except in compliance with the Securities Act, applicable state securities laws and the respective rules and regulations
promulgated thereunder. 
 18. Miscellaneous. 
 (a) Amendment. No amendment, modification, alteration, waiver or change in any of the terms of this Agreement shall be valid or
binding upon the parties hereto unless made in writing and duly executed by the Company and the holders of at least 66 2/3% of the Registrable Shares held by all of the Investors; provided, however, that in each case, no such amendment
shall increase the obligations of any Investor without such Investor’s written consent. 
 (b) Governing Law. This
Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to any conflicts of laws concepts that would apply the laws of another jurisdiction. 
  

 13 

 (c) Assignment. The rights and obligations of the parties hereto shall inure to
the benefit of, and shall be binding upon the authorized successors and permitted assigns of each party; provided that the terms and conditions of Section 12 hereof are satisfied. This Agreement shall also be binding upon and inure to
the benefit of any transferee ‘of any of the Purchased Shares; provided the terms and conditions of Section 12 hereof are satisfied. Notwithstanding anything in this Agreement to the contrary, if at any time any Investor shall cease
to own any Registrable Shares, all of such Investor’s rights under this Agreement shall immediately terminate; provided, however, that if such Investor ceases to own Registrable Shares because all or a portion of such shares were
sold pursuant to the Registration Statement or a Piggyback Registration Statement, then such Investor shall continue to have the rights and obligations set forth in Section 9 hereof, as provided in Section 9(e) hereof. In the
event of any assignment by an Investor in accordance with the terms of this Agreement, the assignee shall specifically assume and be bound by the provisions of the Agreement by executing the Instrument of Adherence attached hereto as Exhibit
B. 
 (d) Specific Performance. Each of the parties hereto acknowledges and agrees that damages will not be an
adequate remedy for any material breach or violation of this Agreement if such material breach or violation would cause immediate and irreparable harm (an “Irreparable Breach”). Accordingly, in the event of a threatened or
ongoing Irreparable Breach, each party hereto shall be entitled to seek, in any state or federal court in the State of New York, equitable relief of a kind appropriate in light of the nature of the ongoing or threatened Irreparable Breach, which
relief may include, without limitation, specific performance or injunctive relief; provided, however, that if the party bringing such action is unsuccessful in obtaining the relief sought, the moving party shall pay the non-moving
party’s costs, including actual attorney’s fees, incurred in connection with defending such action. Such remedies shall not be the parties’ exclusive remedies, but shall be in addition to all other remedies provided in this Agreement.

 (e) Notice. Any notices, reports or other correspondence (hereinafter collectively referred to as
“Correspondence”) required or permitted to be given hereunder shall be sent by courier (overnight or same day) or facsimile or delivered by hand to the party to whom such correspondence is required or permitted to be given
hereunder. The date of giving any notice shall be the date of its actual receipt. 
 (i) All Correspondence to the Company
shall be addressed as follows: 
 EP MedSystems, Inc. 
 575 Route 73 North 
 Building D 
 West Berlin, New Jersey 08091-9293 
 Attention: President and Chief Executive Officer 
 Facsimile: (856) 753-8544 
  

 14 

 with a copy to: 
 Mayer, Brown, Rowe & Maw LLP 
 1675 Broadway 
 New York, NY 10019 
 Attention: Thomas M. Vitale, Esq. 
 Facsimile: (212) 262-1910 
 (ii) All Correspondence to any Investor shall be sent to
such Investor at the address set forth in Exhibit A. 
 (iii) Any Person may change the address to which correspondence
to it is to be addressed by notification as provided for herein. 
 (f) Waiver. No waiver of any term, provision or
condition of this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or be construed as, a further or continuing waiver of any such term, provision or condition or as a waiver of any other term,
provision or condition of this Agreement. 
 (g) Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 (The
remainder of this page has been intentionally left blank; signature page follows) 
  

 15 

 IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement as of the date
and year first above written. 
  

					
	EP MEDSYSTEMS, INC.
		
	By:	 	/s/ Matthew C. Hill
		 	 Name:
	 	 Matthew C. Hill

		 	 Title:
	 	 Chief Financial Officer

 THE INVESTOR’S SIGNATURE TO THE INVESTOR QUESTIONNAIRE DATED EVEN DATE HEREWITH SHALL CONSTITUTE THE
INVESTOR’S SIGNATURE TO THIS REGISTRATION RIGHTS AGREEMENT. 
  

 16 

 Exhibit A 
 Investors 
  

					
	 INVESTOR
	  	 ADDRESS
	  	 NUMBER
 OF SHARES
PURCHASED

	SRB Greenway Capital QP, L.P.	  	 300 Crescent Court, Suite 1111
 Dallas, Texas
75201
	  	468,000
			
	SRB Greenway Offshore Operating Fund, L.P.	  	 300 Crescent Court, Suite 1111
 Dallas, Texas
75201
	  	28,000
			
	SRB Greenway Capital, L.P.	  	 300 Crescent Court, Suite 1111
 Dallas, Texas
75201
	  	59,555
			
	Walker Smith Capital (Q.P.), L.P.	  	 300 Crescent Court, Suite 1111
 Dallas, Texas
75201
	  	171,200
			
	Walker Smith Capital, L.P.	  	 300 Crescent Court, Suite 1111
 Dallas, Texas
75201
	  	20,000
			
	Walker Smith International Fund, Ltd.	  	 300 Crescent Court, Suite 1111
 Dallas, Texas
75201
	  	258,055
			
	HHMI Investments, L.P.	  	 300 Crescent Court, Suite 1111
 Dallas, Texas
75201
	  	96,300
			
	SF Capital Partners Ltd.	  	 3600 South Lake Drive
 St. Francis, WI
53235
	  	1,000,000
			
	Shea Ventures, LLC	  	 655 Brea Canyon Road
 Walnut, CA 91789
	  	666,667
			
	Pat L. Gordon	  	 2009 Sharon Lane
 Austin, Texas 78703
	  	466,667
			
	CE Unterberg Towbin Capital Partners I, L.P.	  	 350 Madison Avenue
 New York, NY 10017
	  	121,112
			
	Thomas I. Unterberg Trustee, Ellen U. Celli Family Trust U/A/ 3/25/93	  	 c/o CE Unterberg Towbin
 350 Madison Avenue

New York, NY 10017
	  	22,222
			
	Ellen U. Celli	  	 c/o CE Unterberg Towbin
 350 Madison Avenue

New York, NY 10017
	  	22,222
			
	Emily U. Satloff	  	 c/o CE Unterberg Towbin
 350 Madison Avenue

New York, NY 10017
	  	22,222
			
	NFS/FMTC IRA FBO Thomas I. Unterberg	  	 c/o CE Unterberg Towbin
 350 Madison Avenue

New York, NY 10017
	  	22,222
			
	Thomas I. Unterberg	  	 c/o CE Unterberg Towbin
 350 Madison Avenue

New York, NY 10017
	  	66,666
			
	Marjorie & Clarence E. Unterberg Foundation Inc.	  	 c/o CE Unterberg Towbin
 350 Madison Avenue

New York, NY 10017
	  	44,444
			
	Declaration of Trust by Thomas I. Unterberg U/A 8/7/96	  	 c/o CE Unterberg Towbin
 350 Madison Avenue

New York, NY 10017
	  	22,222
			
	2001 Candice N. Pell Trust	  	 40 Ramland Road South, Suite 10
 Orangeburg, NY
10962
	  	100,000
			
	2001 Jessica N. Pell Trust	  	 40 Ramland Road South, Suite 10
 Orangeburg, NY
10962
	  	100,000
			
	FatBoy Capital, L.P.	  	 9611 North U.S. Highway 1, Box 390
 Sebastan, FL
32958
	  	617,284

  

 17 

 Exhibit B 
 Instrument of Adherence 
 Reference is hereby made to that certain Registration Rights Agreement,
dated as of March 24, 2006, among EP MedSystems, Inc., a New Jersey corporation (the “Company”), the Investors and the Investor Permitted Transferees, as amended and in effect from time to time (the
“Registration Rights Agreement”). Capitalized terms used herein without definition shall have the respective meanings ascribed thereto in the Registration Rights Agreement. 
 The undersigned, in order to become the owner or holder of
                     shares of Company common stock, no par value, $0.001 stated value per share (the “Common Stock”),
hereby agrees that, from and after the date hereof, the undersigned has become a party to the Registration Rights Agreement in the capacity of an Investor Permitted Transferee, and is entitled to all of the benefits under, and is subject to all of
the obligations, restrictions and limitations set forth in, the Registration Rights Agreement that are applicable to Investor Permitted Transferees. This Instrument of Adherence shall take effect and shall become a part of the Registration Rights
Agreement immediately upon execution. 
 Executed under seal as of the date set forth below under the laws of the State of New York.

  

					
		
	 Signature: 
	 	  
		 	 Name:
	 	  
		 	 Title:
	 	  

  

					
	 Accepted:

	
	EP MedSystems, Inc.
		
	 By:
	 	  
		 	 Name:
	 	  
		 	 Title:
	 	  
		
	 Date:
	 	  

  

 18 

 TABLE OF CONTENTS 
  

					
	 	  	  	  	Page
			
	 1.
	  	 Definitions
	  	1
			
	 2.
	  	 Effectiveness; Termination
	  	2
			
	 3.
	  	 Registration
	  	2
			
	 4.
	  	 “Piggyback” Registration Rights
	  	4
			
	 5.
	  	 Obligations of the Company
	  	6
			
	 6.
	  	 Furnish Information
	  	8
			
	 7.
	  	 Expenses of Registration
	  	8
			
	 8.
	  	 Delay of Registration
	  	9
			
	 9.
	  	 Indemnification
	  	9
			
	 10.
	  	 Reports under the Exchange Act
	  	11
			
	 11.
	  	 Deferral and Lock-up
	  	12
			
	 12.
	  	 Transfer of Registration Rights
	  	12
			
	 13.
	  	 Limitations on Subsequent Registration Rights
	  	13
			
	 14.
	  	 No Required Sale
	  	13
			
	 15.
	  	 Nominees for Beneficial Owners
	  	13
			
	 16.
	  	 Entire Agreement
	  	13
			
	 17.
	  	 Agreement with Respect to Sales of Common Stock
	  	13
			
	 18.
	  	 Miscellaneous
	  	13
		
	 Exhibit A
	  	17
		
	 Exhibit B
	  	18

  

 -i-

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