Document:

EX-10.27 SEVERANCE AGREEMENT / MARINELLI

 

Exhibit 10.27

SEVERANCE AGREEMENT AND FULL RELEASE

     This Severance Agreement and Full Release (“Release Agreement” or “Agreement”) is made and
entered into this 11th day of July 2007 (“Execution Date”) by and between Joseph V. Marinelli
(“Employee,” a term which includes Employee, Employee’s spouse, and all assigns, heirs, and
successors in interest) and Allied Automotive Group, Inc., a Georgia corporation (“Company,” a term
which includes Company, its parent, subsidiary and affiliated organizations, their successors in
interest, and their respective agents, Employees, officers, directors and attorney ).

     WHEREAS Employee and Company are parties to an employment agreement under which Employee
is entitled to receive certain severance benefits under certain conditions, including the
execution of this Release Agreement, and

     WHEREAS Employee and Company have mutually agreed that Employee is entitled to receive the
severance benefits described in Employee’s employment agreement in consideration for the execution
of this Release Agreement, it is hereby

AGREED AS FOLLOWS:

     1. TERMINATION OF EMPLOYMENT. Employee agrees that his employment relationship with
Company will terminate on July 10, 2007, whereupon all benefits, privileges and authorities related
thereto ceased, except as set forth herein. Effective as of the Execution Date, Employee resigns as
a member of the Board of Directors and as an officer of all subsidiaries and affiliates of Company,
including, but not limited to, Haul Insurance, Ltd.

     2. NO ADMISSION BY COMPANY. Company and Employee agree that the entry of the parties
into this Release Agreement is not and shall not be construed to be an admission of liability or
wrongdoing on the part of Company.

     3. FUTURE COOPERATION. Employee AGREES that, notwithstanding Employee’s termination on
the date specified above, Employee will make himself available upon reasonable notice to Company or
its designated representatives for the purposes of; (1) Providing information regarding the
projects, files and/or clients with whom Employee worked for the purpose of transitioning such
projects, files and/or clients to other Company Employees as the result of Employee’s termination;
(2) Providing information and/or testimony regarding any other matter, file, project and or client
with whom Employee was involved while employed by Company.

     4. CONSIDERATION. Within ten days following the expiration of the revocation period
described in Section 17 below, Company shall pay Employee Two Hundred Twenty-Five Thousand Dollars
($225,000.00), subject to ordinary and lawful deductions, in one lump sum payment in consideration
for Employee signing this Release Agreement and agreeing to its terms. Employee agrees and
acknowledges that this is consideration to which Employee would not otherwise be entitled absent
execution of this Release Agreement.

 

 

     In addition, Employer shall continue to provide to Employee and Employee’s immediate family,
for a period of twelve (12) months from termination, medical and dental coverage by making payments
on behalf of Employee to extend medical and dental insurance subject to Employee’s COBRA rights.
Employee must exercise his COBRA rights by providing written notice thereof. Employee releases
Employer from any further obligation to make any payments on behalf of Employee in regard to his
COBRA rights.

     5. OTHER BENEFITS. Nothing in this Release Agreement shall:

(a) alter or reduce any vested, accrued benefits (if any) Employee may have to
any pension benefits to which Employee may be entitled under any retirement or
401(k) plan established by Company;

(b) affect Employee’s right (if any) to elect and pay for continuation of Employee’s
health insurance coverage under the Health Benefit Plan pursuant to the Consolidated
Omnibus Budget Reconciliation Act of 1985 (C.O.B.R.A.); or

(c) affect Employee’s right to receive any “Stay Bonus” (as defined in the Allied
Holdings, Inc. Amended Severance Pay and Retention and Emergence Bonus Plan for Key
Employees, as in effect from time to time (hereinafter the “KERP”) in accordance
with the terms and conditions of the KERP. The Company shall pay to Employee
Fifty-Five Thousand One Hundred Twenty-Five Dollars ($55,125.00), subject to
ordinary and lawful deductions, constituting the final amount of his Stay Bonus due
to Employee under the KERP, on or before August 8, 2007.

          Employee shall receive his final paycheck for services rendered through July 10, 2007, in the
ordinary course of business according to the payroll policies and procedures of Company and subject
to ordinary and lawful deductions. Employee waives any claim to any further compensation or
benefits other than those expressly set forth in this Release Agreement.

     6. EMPLOYEE’S FULL RELEASE OF ALL CLAIMS AGAINST COMPANY. In
consideration for the undertakings and promises of Company set forth in this Release
Agreement, Employee unconditionally releases, discharges, and holds harmless Company, its
corporate affiliates, officers, directors, shareholders, employees, agents, insurers and
attorneys as
individuals; and the successors and assigns of each (collectively referred to as “Releasees”),
from
each and every claim, cause of action, right, liability or demand of any kind and nature, and
from
any claims which may be derived therefrom (collectively referred to as “claims”), that
Employee
had, has, or might claim to have against Releasees at the time Employee executes this Release
Agreement, including but not limited to any and all claims:

(a) arising from Employee’s employment, pay, bonuses, amounts due under the
KERP, vacation or any other Employee benefits, and other terms and conditions of
employment or employment practices of Company;

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(b) relating to the termination of Employee’s employment with Company or
the surrounding circumstances thereof;

(c) relating to payment of any attorney’s fees for Employee;

(d) based on discrimination on the basis of race, color, religion, sex, national
origin, handicap, disability, age or any other category protected by law under Title
VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, Executive Order
11246, the Age Discrimination in Employment Act, the Older Workers Benefits
Protection Act, the Equal Pay Act, the Americans With Disabilities Act, the
Rehabilitation Act of 1973, the Consolidated Omnibus Budget Reconciliation Act of
1985, (as any of these laws may have been amended) or any other similar labor,
employment or anti-discrimination law under state, federal or local law;

(e) based on any contract, tort, whistleblower, personal injury, wrongful
discharge theory or other common law theory.

     7. Covenants of Employee

     As conditions to the payments and benefits to be made and provided by Company to Employee
as provided herein, Employee agrees as follows:

(a) Use of Information. For a period of two (2) years following the
Execution Date, Employee shall not, directly or indirectly, divulge or make use of
any Confidential Information without prior written consent of the Company. Employee
further agrees that throughout the period of time during which information remains a
Trade Secret under applicable law, Employee shall not, directly or indirectly,
divulge or make use of any Trade Secret without prior written consent of Company.
Employee further agrees that if Employee is questioned about information subject to
this agreement by anyone not authorized to receive such information, Employee will
promptly notify Employee’s supervisor(s) or an officer of the Company. This
Agreement does not limit the remedies available under common or statutory law or in
equity, which may impose longer duties of non-disclosure.

(b) Return of Property and Information. Employee shall return to Company as
of the Execution Date any and all property which may have been purchased by Employee
with Company funds or issued by the Company, including, but not limited to,
computers, cell phones, pagers, personal digital assistants, Company credit cards
and airport gold parking card. Employee warrants and covenants that he does not have
any documents or information relating to Company in his possession, either in hard
copy or electronic form. Should Employee subsequently discover that he does possess
such information, he will promptly return it to the company.

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(c) Non-Solicitation Covenant. Employee agrees that for a period of 12
months following the Execution Date, Employee will not directly or indirectly solicit
or attempt to solicit any business in competition with the Business of Company from
any of the Company’s customers, vendors, or suppliers with whom Employee had Material
Contact during the last year of Employee’s employment with the Company.

d) Non-Recruitment of Company Employees. Employee agrees that for a
period of 12 months following the Execution Date, Employee will not directly or
indirectly solicit or attempt to solicit any employee of the Company with whom
Employee had Material Contact during the last year of Employee’s employment with the
Company for the purpose of encouraging, enticing, or causing said employee to
terminate employment with the Company.

(e) Covenant Not to Sue. Employee covenants not to sue Company or any party
released herein on account of any claim released hereby, or to encite, assist or
encourage others to bring claims against Company. Employee further covenants not to
accept, recover or receive any monetary damages or any other form of relief which
may arise out of or in connection with any administrative remedies which may be
filed with or pursued independently by any governmental agency or agencies, whether
federal, state or local.

(f) Consulting Services. Employee agrees that for the period beginning on
the date following the Execution Date and ending thirty (30) calendar days
thereafter, Employee will make himself available for consultation as required and
deemed necessary by the President and Chief Executive Officer or the Senior
Vice-President Terminal Operations of the Company, to provide information,
explanation, review or support, or to serve in any other consulting capacity to the
Company. In consideration for making himself readily available to the Company during
such thirty (30) day period, the Company agrees to pay Employee a consulting fee in
an amount equal to Ten Thousand Dollars ($10,000.00), subject to ordinary and lawful
deductions, with Five Thousand Dollars ($5,000,00) to be paid fifteen (15) days
after the Execution Date and Five Thousand Dollars ($5,000.00) to be paid on the
thirtieth (30th) day following the Execution Date; provided that this
consulting fee and the services contemplated hereunder shall only be due and payable
in the event the Revocation Period described in Section 17 below has expired and
this Release Agreement is in effect. Employee and the Company agree that Employee
shall only be a consultant for the Company during the thirty (30) day period
following the Execution Date and that Employee shall have no authority to bind the
Company during this period.

     8. NO INTEREST IN REINSTATEMENT. Employee hereby acknowledges that Employee has
no interest in reinstatement, reemployment or employment with Company, and Employee forever waives
any interest in or claim of right to any future employment by Company. Employee further covenants
not to apply for future employment with Company.

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     9. CONFIDENTIALITY. Except as otherwise expressly provided in this paragraph,
Employee agrees that the terms, amount of consideration, conditions of this Release Agreement are
and shall be deemed to be confidential and hereafter shall not be disclosed by Employee to any
other person or entity. The only disclosures excepted by this paragraph are (a) as may be required
by law; (b) Employee may tell prospective employers the dates of Employee’s employment, positions
held, evaluations received, Employee’s duties and responsibilities and salary history with Company;
(c) Employee may disclose the terms and conditions of this Release Agreement to Employee’s
attorneys and tax advisers; and (d) Employee may disclose the terms and conditions of this Release
Agreement to Employee’s spouse (if any); provided, however, that Employee makes Employee’s spouse,
attorneys and/or tax advisers aware of the confidentiality provisions of this paragraph, and
further provided that Employee will be responsible for any breaches of this confidentiality
paragraph by his spouse, attorneys or tax advisers to the same extent as if Employee had directly
breached this paragraph.

     10. NO HARASSING CONDUCT. Employee further agrees and promises that Employee will not
induce or incite claims of discrimination, wrongful discharge, breach of contract, tortious acts,
or any other claims against Company by any other person or entity, that Employee shall not
undertake any harassing or disparaging conduct directed at any of the parties, and that Employee
shall refrain from making any negative or derogatory statements concerning Company at any time in
the future. Provided, however, this provision may not be used to restrict the exercise of
Employee’s rights under local, state or federal law.

     11. CONSTRUCTION OF RELEASE AGREEMENT AND VENUE FOR DISPUTES. This Release Agreement
shall be deemed to have been jointly drafted by the parties, and shall not be construed against any
party. It shall be governed by the law of the State of Georgia, and the parties agree that any
actions arising out of or relating to the interpretation or enforcement of this Release Agreement
must be brought exclusively in either the Superior Court of DeKalb County, Georgia or the United
States District Court for the Northern District of Georgia. The parties consent to the personal
jurisdiction and venue of such courts and waive all possible objections thereto.

     12. SEVERABILITY. The parties agree that the provisions of this Release Agreement
shall be construed in favor of their reasonable nature, legality, and enforceability, in that any
reading causing unenforceability shall yield to a construction permitting enforceability. If any
single provision or clause shall be found unenforceable, it shall be severed and the remaining
covenants and clauses enforced in accordance with the tenor of the Release Agreement.

     13. NO RELIANCE UPON OTHER STATEMENTS. This Release Agreement is entered into without
reliance upon any statement or representation of any party hereto or parties hereby released other
than the statements and representations contained in writing in this Release Agreement.

     14. ENTIRE UNDERSTANDING. The parties acknowledge that this Release Agreement contains
the entire understanding of the parties with respect to the subject matter contained herein, and
that it may not be modified other than in a writing signed by the parties

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hereto. Any provisions of any employment agreement between Employee and Company which survive
termination or cessation of Employee’s employment by their terms, including, without limitation,
restrictive covenants, shall be unaffected by this Release Agreement.

     15. NO WAIVER. Any failure by any party to enforce any of their rights and privileges
under this Release Agreement shall not be deemed to constitute waiver of any rights and privileges
contained herein.

     16. FULL AND KNOWING RELEASE. By signing this Release Agreement, Employee
certifies that:

(a) Employee has carefully read and fully understands the provisions of this Release
Agreement;

(b) Employee was advised by Company in writing, via this Release Agreement, to
consult with an attorney before signing this Release Agreement;

(c) Company hereby allows Employee a reasonable period of time from its initial
presentation to Employee (at least 21 days) to consider this Release Agreement
before signing it, should Employee so desire; and,

(d) Employee agrees to its terms knowingly, voluntarily and without
intimidation, coercion or pressure.

     17. REVOCATION OF RELEASE AGREEMENT. Employee certifies that he has
fully read, has received an explanation of, and completely understands the provisions of this
Agreement, and that he has been advised by Company that he should consult with an attorney
before signing this Agreement. He further certifies that he has had adequate time to review
and consider the provisions of this Agreement and that he is signing this Agreement knowingly,
freely and voluntarily, without duress, coercion or undue influence. Employee understands and
acknowledges that he has twenty-one (21) days from the receipt of this agreement to consider
whether he wishes to sign it. Should he choose to sign, he has an additional seven (7) calendar
days following his execution of this Agreement to revoke his acceptance of this Agreement (the
“Revocation Period”). This Agreement shall not become effective or enforceable until the
Revocation Period has expired. Revocation of this Agreement must be made by delivering a
written notice of revocation to Brenda Ragsdale, Senior Vice President of Human Resources,
Allied Automotive Group, Inc., of Company. For the revocation to be effective, written notice
must be received no later than the close of business on the seventh day after Employee signs this
Agreement. Revocation can be made by hand delivery, telegram, facsimile, or postmarking
before the expiration of this seven (7) days period. On the eighth day after Employee signs this
Agreement, the Agreement becomes binding and effective. In addition, Employee understands
and acknowledges notwithstanding anything contained herein to the contrary, that no monies will
be paid under the terms of this Agreement until the end of the Revocation Period.

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     18. Definitions

(a) “Confidential Information” means information (whether in print or otherwise)
about the Company and its employees, customers and/or suppliers which is not
generally known outside of the Company, which employee learns of in connection with
employee’s employment with the Company, and which would be useful to competitors,
customers and/or suppliers of the Company. Confidential Information includes, but is
not limited to: (1) business and employment policies, marketing methods and the
targets of those methods, finances, business plans, promotional materials and price
lists; (2) the terms upon which the Company obtains products from its vendors and
sells them to customers; (3) the nature, origin, composition and development of the
company’s products; (4) the manner in which the Company provides products and
services to its customers.

(b) “Trade Secrets” means Confidential Information which meets the additional
requirements of the Uniform Trade Secrets Act or similar state or other law, and
specifically includes, but is not limited to, prices, rates, and related information
regarding pricing, and computer software programs owned or developed by Company, its
parent, subsidiaries or affiliates.

(c) “Business of Company” means the provision of logistics and distribution services
to the new and used vehicle distribution market and other segments of the automotive
industry.

(d) “Material Contact” means direct personal contact or the supervision of efforts of
those who have personal contact on behalf of Company, with a customer, supplier, or
vendor of Company.

     IN WITNESS WHEREOF the undersigned hereunto set their hands to this Release Agreement on
the dates written below.

     Executed this 11th day of July, 2007.

	 	 	 	 	 	 	 	 	 
	EMPLOYEE

	 	 
	 	ALLIED AUTOMOTIVE GROUP, INC.
	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 		 	 
	 

	 	 	 	 	 	 	 	 
	JOSEPH V. MARINELLI

	 	 	 	By:
	 	Thomas King	 	 
	 

	 	 	 	 	 	Executive Vice President and CFO	 	 

7EX-10.29 Loan Guarantee, Payment and Security Agre

 

EXHIBIT 10.29

Loan Agreement No:                               

Guarantor Name: HOWARD AND BRENDA LEONHARDT

Guarantee Amount: $2,200,000.00

LOAN GUARANTEE, PAYMENT AND SECURITY AGREEMENT

     This Agreement (the “Agreement”) is made as of October 10, 2007 (the “Effective
Date”), by and between BIOHEART, INC., a Florida corporation (the “Company”), and
Howard and Brenda Leonhardt (the “Guarantor”).

WITNESSETH:

     WHEREAS, on June 1, 2007, the Company obtained a term loan (the “Loan”), in the
principal amount of $5,000,000, from Bank of America, N.A. (the “Bank”) pursuant to a
certain loan agreement between the Company and the Bank (the “Loan Agreement”) and related
promissory note (the “Note”);

     WHEREAS, as security for the Company’s obligations relating to the Loan, the Guarantor (i)
will pledge and assign to the Bank (the “Pledge”) and grant to the Bank a first-priority
security interest in, a investment management account with the Bank having assets of at least
$2,200,000 in value deposited in such account (the “Collateral Account”) and/or (ii)
execute and deliver a guaranty agreement (the “Personal Guaranty”) in favor of the Bank
with a maximum liability to the bank of $2,200,000;

     WHEREAS, the Pledge and Personal Guaranty are in addition to, and not in replacement of, the
pledge and personal guaranty in the amount of $1,100,000 previously made by the Guarantor to secure
the Loan on June 1, 2007;

     WHEREAS, the Pledge and/or the Personal Guaranty is being provided as replacement of $2.2
million of collateral pledged by Magellan Group Investments, LLC to secure the Loan;

     WHEREAS, in accordance with the terms of this Agreement, the Guarantor has agreed to make
payments to the Company equal to 40% (the “Guaranteed Percentage”) of the interest and
principal payable by the Company to the Bank in connection with the Loan, which amounts shall be
used by the Company solely to pay interest and principal on the Loan;

     WHEREAS, as consideration for the Guarantor’s agreement to make the payments described above
and to grant, in favor of the Bank, the Pledge and/or the Personal Guaranty, the Company has
agreed, upon the terms and conditions set forth herein, to (i) issue the Guarantor a warrant or
warrants to purchase shares of the Company’s common stock, par value $.001 per share (the
“Common Stock”), and (ii) pay certain fees to the Guarantor;

     NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged by the parties hereto,
the Company and the Guarantor agree as follows:

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1. CONSIDERATION.

     1.1 GUARANTEE DOCUMENTS AND PAYMENTS FOR THE BENEFIT OF THE
COMPANY.

     In consideration of the Company’s issuance of the Warrant (as defined in Section 1.2 below)
and payment of the Guarantee Fee (as defined in Section 1.2 below), the Guarantor hereby agrees
that it shall:

          (a) At Closing (as defined in Section 2.1 below), execute and deliver, in favor of the Bank,
whatever documentation (such documentation, the “Guarantee Documents”) the Bank reasonably
requires in connection with the Personal Guaranty and/or the Pledge.

          (b) During the period commencing on the Effective Date and terminating on the date that the
Company’s payment obligations under the Loan are satisfied and/or discharged in full, at least ten
(10) business days prior to the due date for any payment of interest (“Interest Payment”)
or payment of principal (“Principal Payment”) or other payment required to be made by the
Company to the Bank under the Loan, pay the Company or the Bank an amount equal to the product
obtained by multiplying (x) the total amount of the payment then due and (y) the Guaranteed
Percentage (each such payment, a “Guarantor Payment”) provided, that the aggregate
amount of Guarantor Payments shall not exceed $2,200,000. The Guarantor may, at its option, elect
to make Guarantor Payments by drawing, or authorizing the Bank to draw, on the Collateral Account,
if approved by the Bank. The Company shall apply the Guarantor Payment towards an Interest
Payment, Principal Payment or other payment due in connection with the Loan, and shall either
notify the Guarantor in writing of the due date for any such payment, or shall promptly forward to
the Guarantor any correspondence received by the Company from the Bank regarding the amount and due
date of such Interest Payment, Principal Payment or other payment (as applicable). All payments
hereunder shall be made to a specified account of the Company maintained at the Bank.

          (c) The Guarantor hereby authorizes the Company to notify the Bank in the event that the
Guarantor fails to make a Guarantor Payment when due.

     1.2 ISSUANCE OF WARRANTS AND PAYMENT OF MONTHLY FEES

     In consideration of the Guarantor’s issuing the Personal Guaranty and/or the Pledge in favor
of the Bank the Company hereby agrees that it shall:

          (a) At Closing (as defined in Section 2.1 below), issue to the Guarantor a warrant to purchase
an aggregate of 81,547 shares (the “Subject Shares”) of the Common Stock, with an exercise price of
$7.69 per share, in the form attached hereto as Exhibit A (the “Warrant”). The
Warrant will provide that the number of Subject Shares will increase to 101,934, 135,912 and
203,868, respectively, in the event the Company has not satisfied and/or discharged all of its
payment obligations under this Agreement and the Loan by the June 1, 2008, 2009 and 2010,
respectively.

          (b) Pay the Guarantor a cash fee (the “Guarantee Fee”) in the amount determined by
multiplying $2,200,000 by 5.0% and multiplying the resulting amount by a fraction, the numerator of
which is the number of days elapsed between the date hereof and the earlier of (i) the date the
Company has satisfied and/or discharged all of its payment obligations under the Loan (a “Loan
Satisfaction”) and (ii) February 1, 2008 (or such later date to which the maturity date of the
Note may be extended), and the denominator of which is 365 in accordance with the terms of this
Section 1.2(b). The Company shall pay the Guarantee Fee within five (5) business days of the
Trigger Date (as defined below). For purposes of this Agreement, the “Trigger Date” shall
mean the earliest to occur of: (i) the closing date of an initial public offering of the Company’s
Common Stock generating at least $30 million of net proceeds to the Company occurring on or before
January 31, 2008 (a “Qualified Offering”), and (ii) the date the Company satisfies and/or
discharges all of its payment obligations (a “BlueCrest Loan Satisfaction”)

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under that certain Loan and Security Agreement, dated as of May 31, 2007 by and between the Company
and BlueCrest Capital Finance, L.P. (the “BlueCrest Loan”).

          (c) If on or before the first business day of the 36th full calendar month after
the date of the BlueCrest Loan (the “Outside Payment Date”), the Company has not
effectuated a BlueCrest Loan Satisfaction or a Qualified Offering:

               (A) the Company shall use its best efforts to effectuate a BlueCrest Loan Satisfaction as soon
as possible following the Outside Payment Date; and

               (B) the Company shall pay the Guarantee Fee no later than five (5) business days following a
BlueCrest Loan Satisfaction.

2. THE CLOSING.

     2.1. CLOSING DATE. The parties agree to effect the transactions contemplated hereby (the
“Closing”) contemporaneously with the execution of this Agreement.

     2.2 CLOSING DELIVERABLES.

          (a) At the Closing, the Company shall deliver or cause to be delivered to the Guarantor:

               (i) an executed copy of this Agreement; and

               (ii) an executed copy of the Warrant.

          (b) At the Closing, the Guarantor shall deliver or cause to be delivered to the Company an
executed copy of this Agreement.

          (c) At the Closing, the Guarantor shall deliver to the Bank duly executed copies of the
Guarantee Documents.

3. RESTRICTIONS ON TRANSFER OF THE WARRANT

     No transfer of all or any portion of the Warrant shall be made except in accordance with the
applicable provisions of this Agreement and/or the Warrant.

4. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY.

     The Company hereby represents, warrants and covenants to the Guarantor and agrees as set forth
below; provided, however, that the Guarantor shall not be able to rely on any representation and/or
warranty made by the Company if Mr. Leonhardt, who is the Executive Chairman and Chief Technology
Officer of the Company, has actual knowledge as of the Effective Date that such representation is
inaccurate:

     4.1. CORPORATE POWER. The Company is a corporation duly organized, validly existing, and in
good standing under the laws of the State of Florida and is duly qualified to do business as a
foreign corporation and is in good standing in each jurisdiction in which the failure to so qualify
would have a material adverse effect on the Company’s business, properties, or financial condition
(a “Material Adverse Effect”). The Company has all requisite corporate power and authority
to execute and

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deliver this Agreement, the Warrant and the agreements related to the Loan and to carry out and
perform its obligations hereunder and thereunder. The Company has all requisite corporate power
and authority to issue and deliver the shares of Common Stock issuable upon valid exercise of the
Warrant.

     4.2 AUTHORIZATION. This Agreement has been duly authorized, executed and delivered by the
Company. All corporate action on the part of the Company and its shareholders, directors and
officers necessary for the authorization, execution and delivery of this Agreement, the execution
of the agreements related to the Loan, the issuance of the Warrant and the shares of Common Stock
issuable upon conversion of the Warrant, the consummation of the other transactions contemplated
hereby and the performance of all the Company’s obligations hereunder has been taken. This
Agreement constitutes the legal, valid and binding obligation of the Company, enforceable against
the Company in accordance with its terms, subject to (i) laws of general application relating to
bankruptcy, insolvency and the relief of debtors, (ii) rules of law governing specific performance,
injunctive relief and other equitable remedies, and (iii) the limitations imposed by applicable
federal or state securities laws on the indemnification provisions contained in this Agreement. The
shares of Common Stock issuable upon exercise of the Warrant have been duly authorized (the
“Warrant Shares”). When the Warrant Shares have been delivered against payment in
accordance with the terms of the Warrant, such Conversion Shares will have been, validly issued,
fully paid and nonassessable.

     4.3. GOVERNMENTAL CONSENTS. All consents, approvals, orders, or authorizations of, or
registrations, qualifications, designations, declarations, or filings with, any governmental
authority, required on the part of the Company in connection with the valid execution and delivery
of this Agreement, the offer, sale and issuance of the Warrant have been obtained and will be
effective at the Closing, except for notices required or permitted to be filed thereafter with
certain state and federal securities commissions, which notices shall be filed on a timely basis.

     4.4. OFFERING. Assuming the accuracy of the representations and warranties of the Guarantor
contained in Section 5 below, the offer, sale and issuance of the Warrant is exempt from the
registration and prospectus delivery requirements of the Securities Act and has been registered or
qualified (or is exempt from registration and qualification) under the registration, permit, or
qualification requirements of all applicable state securities laws.

     4.5. CAPITALIZATION. The authorized capital of the Company consists of 50,000,000 shares of
Common Stock and 5,000,000 shares of Preferred Stock. As of June 30, 2007, 13,332,295 shares of
Common Stock and no shares of Preferred Stock were issued and outstanding.

     4.5 USE OF PROCEEDS FROM GUARANTOR CASH PAYMENTS. The Company shall use the proceeds of any
Guarantor Payment solely to pay amounts due or payable under the Loan.

     4.6 LITIGATION. Except as referenced on Exhibit 3(d) to the Loan Agreement, there is no
proceeding involving the Company pending or, to the knowledge of the Company, threatened before
any court or governmental authority, agency or arbitration authority.

     4.7 NO CONFLICTING AGREEMENTS. There is no charter, bylaw, stock provision, partnership
agreement or other document pertaining to the organization, power or authority of the Company and
no provision of any existing agreement (including, without limitation, the Loan Agreement with
Bank of America (the “Loan Agreement”) or the Senior Loan Agreement [as defined in the
Loan Agreement]), mortgage, indenture or contract binding on the Company or affecting its
property, which would conflict with or in any way prevent the execution, delivery or carrying out
of the terms of this Agreement.

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     4.8 OWNERSHIP OF ASSETS. The Company has good title to its assets, and its assets are free
and clear of liens, except for the security interest of BlueCrest (as defined in the Loan
Agreement). For purposes of this Section 4.8, a sublicense of any of the Company’s intellectual
property is not deemed to be a “lien”.

     4.9 TAXES. All taxes and assessments due and payable by the Company have been paid or are
being contested in good faith by appropriate proceedings and the Company has filed all tax returns
which it is required to file.

     4.10 FINANCIAL STATEMENTS. The financial statements of Company heretofore delivered to the
Guarantor have been prepared in accordance with GAAP applied on a consistent basis throughout the
period involved and fairly present the Company’s financial condition as of the date or dates
thereof, and there has been no material adverse change in Company’s financial condition or
operations since the date of the financial statements. All factual information furnished by the
Company to the Guarantor in connection with this Agreement is and will be accurate on the date as
of which such information is delivered to the Guarantor.

     4.11 ENVIRONMENTAL. The conduct of the Company’s business operations and the condition of the
Company’s property does not and will not violate any federal laws, rules or ordinances for
environmental protection, regulations of the Environmental Protection Agency, any applicable local
or state law, rule, regulation or rule of common law or any judicial interpretation thereof
relating primarily to the environment or Hazardous Materials (as defined in the Loan Agreement).

     4.12 AFFIRMATIVE COVENANTS. Until full payment and performance of all obligations of the
Company to the Guarantor hereunder, the Company will, unless Guarantor consents otherwise in
writing:

          (a) Existence and Compliance. Maintain its existence, good standing and qualification to do
business, where required, and comply with all laws, regulations and governmental requirements
including, without limitation, environmental laws applicable to it or to any of its property,
business operations and transactions.

          (b) Adverse Conditions or Events. Promptly advise the Guarantor orally or in writing of (i)
any condition, event or act which comes to its attention that would or might materially adversely
affect the Guarantor’s rights under this Agreement or the Warrant, and (ii) any litigation in
excess of $500,000 is filed by or against Company, or (iii) any event that has occurred that would
constitute an event of default under the Loan Agreement.

          (c) Taxes and Other Obligations. Pay all of its taxes, assessments and other obligations,
including, but not limited to, taxes, costs or other expenses arising out of this transaction, as
the same become due and payable, except to the extent the same are being contested in good faith by
appropriate proceedings in a diligent manner.

     4.13 NEGATIVE COVENANTS. Until full payment and performance of all obligations of the Company
to the Guarantor hereunder, the Company will not, unless the Guarantor consents otherwise in
writing:

          (a) Character of Business. Change the general character of business as conducted at the date
hereof, or engage in any type of business not reasonably related to its business as presently
conducted.

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5. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE GUARANTOR.

     The Guarantor hereby represents and warrants to the Company and agrees as follows:

     5.1 RELIANCE. The Guarantor understands that the Company has relied on the information and
representations with respect to the Guarantor set forth in this Section 5 in determining, among
other things, whether an investment in the Warrant is suitable for the Guarantor, and the Guarantor
represents and warrants that all such information is true and correct as of the date hereof.

     5.2 POWER AND AUTHORITY. The Guarantor has all requisite power and authority to execute and
deliver this Agreement and the Guarantee Documents and to carry out and perform its obligations
hereunder and thereunder.

     5.3 EXPERIENCE. The Guarantor is an “accredited investor” within the meaning of Regulation D
under the Securities Act and such Guarantor has no ability to acquire the Warrant Shares until at
least one year after the date the Warrants are issued.

     5.4. INFORMATION AND SOPHISTICATION. The Guarantor has received all the information it has
requested from the Company that it considers necessary or appropriate for deciding whether to
acquire the Warrant. The Guarantor has had an opportunity to ask questions and receive answers from
the Company regarding the terms and conditions of the Warrant and to obtain any additional
information necessary to verify the accuracy of the information given to the Guarantor. The
Guarantor further represents that it has such knowledge and experience in financial and business
matters that it is capable of evaluating the merits and risk of the investment in the Warrant and
the Warrant Shares (collectively, the “Securities”).

     5.5 DUE DILIGENCE. The Guarantor has consulted with its own legal, regulatory, tax, business,
investment, financial and accounting advisers in connection with its determination to enter into
this Agreement. The Guarantor has made its own decisions based upon its own judgment, due
diligence and advice from such advisers as it has deemed necessary and, except for the
representations and warranties expressly set forth herein, is not relying upon any information,
representation or warranty by the Company or any agent of the Company in determining to enter into
this Agreement.

     5.6. ABILITY TO BEAR ECONOMIC RISK. The Guarantor acknowledges that investment in the
Securities involves a high degree of risk. The Guarantor is able, without materially impairing its
financial condition, to hold the Securities for an indefinite period of time and to suffer a
complete loss of its investment. Neither the Securities and Exchange Commission nor any state
securities commission has approved any of the Securities or passed upon or endorsed the merits of
the offering of the Securities by the Company.

     5.7 LOCK-UP AGREEMENT. The Guarantor hereby agrees that, during the period of duration (not
to exceed one hundred eighty (180) days) specified by the Company and an underwriter of Common
Stock or other securities of the Company in an agreement in connection with any initial public
offering of the Company’s securities, following the effective date of the registration statement
for a public offering of the Company’s securities filed under the Securities Act, it shall not, to
the extent requested by the Company and such underwriter, directly or indirectly sell, offer to
sell, contract to sell (including, without limitation, any short sale), grant any option to
purchase or otherwise transfer or dispose of (other than to donees who agree to be similarly bound)
any securities of the Company held by it at any time during such period, except Common Stock, if
any, included in such registration.

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     5.8 The Guarantor hereby acknowledges that:

IN THE EVENT THAT SALES OF THE SECURITIES OFFERED HEREBY ARE MADE TO FIVE (5) OR
MORE PERSONS IN FLORIDA, ALL PURCHASERS IN FLORIDA HAVE THE RIGHT TO VOID THE SALE
OF THE SECURITIES OFFERED HEREBY WITHIN THREE (3) DAYS AFTER THE PAYMENT OF THE
PURCHASE PRICE IS MADE TO THE COMPANY, AN AGENT OF THE COMPANY, OR AN ESCROW
AGENT, OR WITHIN THREE (3) DAYS AFTER THE AVAILABILITY OF THAT PRIVILEGE IS
COMMUNICATED TO SUCH PURCHASER, WHICHEVER OCCURS LATER. PAYMENTS FOR TERMINATED
SUBSCRIPTIONS VOIDED BY PURCHASERS AS PROVIDED FOR IN THIS PARAGRAPH WILL BE
PROMPTLY REFUNDED WITHOUT INTEREST.

     5.9 The Guarantor shall, at all times from the date hereof until the date the Company
effectuates a Loan Satisfaction, maintain, as security for the Loan, Eligible Collateral (as
defined in that certain Pledge Agreement dated of even date herewith between the Guarantor and the
Bank (the “Pledge Agreement”)) with an Adjusted Collateral Value (as defined in the Pledge
Agreement) in excess of the Guaranty Minimum (as defined in the Pledge Agreement).

6. REIMBURSEMENT OF PAYMENTS IN CONNECTION WITH GUARANTEE DOCUMENTS.

     (a) The Company hereby agrees to pay to the Guarantor (i) all reasonable and documented costs
and expenses (including court costs and reasonable legal expenses) incurred or expended by the
Guarantor in connection with (x) the Guarantor’s negotiation, drafting and execution of this
Agreement, the Guarantee Documents and any agreements with Magellan Group Investments, LLC, the
Guarantor’s review of all documents in connection with the Loan and the Guarantor’s establishment
of the Collateral Account (the “Initial Expenses”) and (y) the Bank’s taking any action
against the Guarantor to enforce the Bank’s rights under the Guarantee Documents (together with the
Initial Expenses, the “Expenses”) and (ii) to repay to Guarantor the Guarantor Payments.
Notwithstanding the foregoing or anything else to the contrary in this Agreement, the Company shall
not be required to reimburse the Guarantor for Expenses that the Guarantor would not have incurred
but for the Guarantor’s failure to satisfy the terms and conditions of this Agreement or the
Guarantee Documents.

     (b) Each payment to be made by the Company hereunder shall be due within thirty (30) days of
the receipt by the Company of a request for reimbursement from Guarantor; provided,
however, that if the date of any reimbursement request occurs prior to the Trigger Date, such
payment shall be made within thirty (30) days after the Trigger Date or on the same date the
Company is required to pay the Guarantee Fee in accordance with Section 1.2(c) hereof, whichever
occurs first. Notwithstanding the foregoing, the Company shall reimburse the Guarantor for the
Initial Expenses within ten (10) business days of the Closing.

     (c) All payments payable by the Company hereunder shall be made in immediately available funds
to an account that the Guarantor shall designate from time to time in writing to the Company.
Except for any Collection Expenses (which shall not bear any interest), payments due shall be made
with interest thereon from the due date (or, in the case of the Guarantor Payments, from the date
that the Guarantor made such payment) until payment thereof by the Company, at the Prime Rate
offered by the Bank, plus 5%, and in effect as such due date. For the avoidance of doubt, the due
date for any reimbursement request shall be thirty (30) days after the date of a written
reimbursement request made by the Guarantor.

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     (d) The
Company shall make the payments specified above even if there is a dispute about whether the Bank is or was entitled to take any action to enforce its rights under the
Guarantee Documents. In no event shall the Company be liable to Guarantor for any special,
indirect or consequential damages incurred by Guarantor.

7. DEFAULT; REMEDIES UPON DEFAULT.

     7.1 GUARANTOR DEFAULT.

          (a) The failure by the Guarantor to: (x) pay any Guarantor Payment (whether in cash or by the
Bank drawing on, taking control of or foreclosing the assets deposited into the Collateral Account)
which failure is not cured within two (2) business days of the Guarantor’s receipt of written
notice from the Company of such failure or (y) comply with the covenant set forth in Section 5.9
hereto shall constitute a “Key Default” hereunder.

          (b) Upon any Key Default by the Guarantor, the following shall occur immediately and
automatically, provided that the Company shall provide Guarantor with written notice promptly upon
learning of any such default: (a) the Warrant shall be cancelled; (b) the Company’s obligations to
make payments to the Guarantor under Section 1.2(b) of this Agreement shall be terminated; and (c)
the Company’s obligations under Section 6 to reimburse the Guarantor for Expenses shall be
terminated.

          (c) Notwithstanding anything to the contrary in this Agreement, the Guarantor shall indemnify,
defend and hold the Company harmless from and against all losses (including, without limitation,
reasonable attorneys fees and court costs) incurred by the Company as a result of the Guarantor’s
breach of any of its material obligations under this Agreement, including, but not limited to, a
breach that results in a Key Default; provided, however, (z) in no event shall the
Guarantor be liable to the Company for (A) any special, indirect or consequential damages; or (B)
an amount in excess of $2.2 million (the “Damages Cap”); provided, however, that if the
Bank liquidates all or any portion of the Collateral Account, the amount liquidated by the Bank
shall reduce the Damages Cap on a dollar for dollar basis.

     7.2 COMPANY DEFAULT. The failure by the Company to pay or perform any material obligation
hereunder (including, without limitation, a breach of its obligations under Section 8 below) which
failure is not cured within two (2) business days of the Company’s receipt of written notice from
the Guarantor of such failure shall constitute a default hereunder. Upon any such default by the
Company, the Guarantor’s obligations to pay the Guarantor Payments shall be terminated.
Notwithstanding anything to the contrary in this Agreement, the Company shall indemnify, defend and
hold the Guarantor harmless from and against all losses (including, without limitation, reasonable
attorneys fees and court costs) incurred by the Guarantor as a result of the Company’s failure to
comply with its obligations hereunder; provided that Company’s maximum liability to the Guarantor
under this Agreement shall not exceed $2.2 million.

8. MISCELLANEOUS.

     8.1. BINDING AGREEMENT; NON-ASSIGNMENT. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective successors. This Agreement is not assignable
without the express written consent of both parties, which consent may be withheld for any reason.
Nothing in this Agreement, express or implied, is intended to confer upon any third party any
rights, remedies, obligations, or liabilities under or by reason of this Agreement except as
expressly otherwise provided in this Agreement. If the Guarantor secures the consent of a third
party to indemnify it for certain costs and expenses it may incur hereunder or in connection with
the Guaranty Documents, the Guarantor agrees that is shall provide the Company notice of such
agreement, including the contact

8

 

information of the subject third party.

     8.2. GOVERNING LAW. This Agreement shall be governed by and construed under the laws of the
State of Florida, irrespective of any contrary result otherwise required under the conflict or
choice of law rules of Florida.

     8.3. COUNTERPARTS. This Agreement may be executed in counterparts, each of which shall be
deemed an original, but both of which together shall constitute one and the same instrument.

     8.4. TITLES AND SUBTITLES. The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement.

     8.5. NOTICES. Any notice required or permitted under this Agreement must be given in writing
and shall be deemed effectively given upon personal delivery or upon overnight mail, postage
prepaid, if to the Company, addressed to William H. Kline, Chief Financial Officer, Bioheart, Inc.
13794 NW 4th Street, Suite 212, Sunrise, Florida 33325, with a copy to David E. Wells,
Esq., Hunton & Williams, LLP, 1111 Brickell Avenue, Suite 2500, Miami, Florida 33131, or to the
Guarantor at Mr. Howard J. Leonhardt, [insert address], with a copy to Tobin & Reyes, P. A., Attn:
David S. Tobin, The Plaza, 5355 Town Center Road, Suite 204, Boca Raton, FL 33486 and Mrs. Brenda
Leonhardt, [insert address] with a copy to Sherman Law Offices, Attn: Craig B. Sherman, 1000
Corporate Drive, Suite 310, Fort Lauderdale, Florida 33334 or at such other address as a party may
designate by ten days’ advance written notice to the other party.

     8.6. MODIFICATION; WAIVER. No modification or waiver of any provision of this Agreement or
consent to departure therefrom shall be effective unless in writing and approved by the Company and
the Guarantor.

     8.7. FURTHER ASSURANCES. The parties shall take such further actions, and execute, deliver and
file such documents, as may be necessary or appropriate to effectuate the intent of this Agreement.

     8.8. CONSTRUCTION. The language used in this Agreement shall be deemed to be the language
chosen by the parties to express their mutual intent, and no rule of strict construction shall be
applied against any party. Any references to any federal, state, local or foreign statute or law
shall also refer to all rules and regulations promulgated thereunder, unless the context otherwise
requires. Unless the context otherwise requires: (a) a term has the meaning assigned to it by this
Agreement; (b) forms of the word “include” mean that the inclusion is not limited to the items
listed; (c) “or” is disjunctive but not exclusive; (d) words in the singular include the plural,
and in the plural include the singular; (e) provisions apply to successive events and transactions;
(f) “hereof”, “hereunder”, “herein” and “hereto” refer to the entire Agreement and not any section
or subsection; and (g) “$” means the currency of the United States.

     8.9. ENTIRE AGREEMENT. This Agreement and the Exhibits hereto constitute the full and entire
understanding and agreement between the parties with regard to the subjects hereof and no party
will be liable or bound to the other in any manner by any representations, warranties, covenants
and agreements other than those specifically set forth herein.

     8.10 VENUE. The parties irrevocably submit to the exclusive jurisdiction of the courts of
State of Florida located in Broward County and federal courts of the United States for the Southern
District of Florida in respect of the interpretation and of the provisions of this Agreement and in
respect of the transactions contemplated hereby.

9

 

     8.11 WAIVER OF JURY TRIAL. THE COMPANY AND THE GUARANTOR HEREBY WAIVE THEIR RESPECTIVE RIGHTS
TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT MATTER OF
THIS AGREEMENT. THIS WAIVER IS KNOWINGLY, INTENTIONALLY AND VOLUNTARILY MADE BY THE GUARANTOR AND
THE COMPANY.

     8.12 SPECIFIC PERFORMANCE. The parties hereto acknowledge and agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. Accordingly, it is agreed that
they shall be entitled to an injunction or injunctions to prevent breaches of the provisions of
this Agreement and to enforce specifically the terms and provisions hereof in any court of
competent jurisdiction in the United States or any state thereof, in addition to any other remedy
to which they may be entitled at law or equity.

     8.13 ATTORNEYS’ FEES. In the event of any litigation, including appeals, with regard to this
Agreement, the prevailing party shall be entitled to recover from the non-prevailing party all
reasonable fees, costs, and expenses of counsel (at pre-trial, trial and appellate levels).

10

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	BIOHEART, INC.

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	     /s/
 	 
	 	Howard Leonhardt 	 
	 	 	 
	 
	 	 	 
	 	     /s/
 	 
	 	Brenda Leonhardt 	 
	 	 	 
	 

11

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