Document:

Ex-10.33 Form of Common Stock Purchase Warrant

 

EXHIBIT 10.33

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY OTHER SECURITIES LAWS AND MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF (1) AN EFFECTIVE
REGISTRATION STATEMENT COVERING SUCH SECURITIES UNDER THE SECURITIES ACT AND ANY OTHER APPLICABLE
SECURITIES LAWS, OR (2) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED.

EXCEPT FOR TRANSFERS MADE IN ACCORDANCE WITH FINRA RULE 2710(G)(2), THIS WARRANT AND THE SECURITIES
ISSUABLE UPON EXERCISE HEREOF MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED, OR
BE THE SUBJECT OF ANY HEDGING, SHORT SALE, DERIVATIVE, PUT, OR CALL TRANSACTION THAT WOULD RESULT
IN THE EFFECTIVE ECONOMIC DISPOSITION OF SUCH SECURITIES BY ANY PERSON FOR A PERIOD OF THREE
HUNDRED AND SIXTY-SIX DAYS IMMEDIATELY FOLLOWING THE DATE OF THE FINAL PROSPECTUS WITH RESPECT TO THE PUBLIC OFFERING OF THE
COMPANY’S SECURITIES PURSUANT TO REGISTRATION STATEMENT NO. 333-140672 AS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION.

BIOHEART, INC.

REPRESENTATIVE’S WARRANT

[          ] shares of Common Stock

November [          ], 2007

This REPRESENTATIVE’S WARRANT (this “Warrant”) of Bioheart, Inc., a Florida corporation (the
“Company”), is being issued pursuant to that certain Underwriting Agreement, dated as of November
[          ], 2007 (the “Underwriting Agreement”), by and between the Company and Merriman Curhan Ford &
Co. and Dawson James Securities, Inc., as representatives of the underwriters named in Schedule
I thereto (the “Representatives”), relating to the initial public offering (the “Offering”) of
[          _] shares of common stock, $0.001 par value per share, of the Company (the “Common Stock”)
underwritten by the Representatives and the underwriters named in the Underwriting Agreement.

FOR VALUE RECEIVED, the Company hereby grants to [          ] and its permitted successors and assigns
(collectively, the “Holder”) the right to purchase from the Company up to [          ] shares [7% of the
shares sold in the offering by the Holder] of the Common Stock (such shares underlying this
Warrant, the “Warrant Shares”), at a per share purchase price equal to $[          ] [125% of the per
share public offering price] (the “Exercise Price”), subject to the terms, conditions and
adjustments set forth below in this Warrant.

1. Date of Warrant Exercise. This Warrant shall become exercisable on the date that is
three hundred and sixty-six (366) days following the Base Date (the “Initial Exercise Date”). As
used in this Warrant, the term “Base Date” shall mean January [          ], 2008, the date of the final prospectus with respect to the Offering. Except as otherwise
provided for herein or as permitted by applicable rules of the Financial Industry Regulatory
Authority (“FINRA”), this Warrant shall not be sold, transferred, assigned, pledged or hypothecated
prior to the Initial Exercise Date.

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2. Expiration of Warrant. This Warrant shall expire at 5:00 PM, prevailing Eastern time,
on October 1, 2012, the date immediately preceding the fifth (5th) year anniversary of the initial date of effectiveness of the Registration Statement (No. 333-140672) relating to the Offering (the “Expiration
Date”).

3. Exercise of Warrant. This Warrant shall be exercisable pursuant to the terms of this
Section 3.

     3.1 Manner of Exercise.

          (a) This Warrant may only be exercised by the Holder hereof on or after the Initial Exercise
Date and on or prior to the Expiration Date, in accordance with the terms and conditions hereof, in
whole or in part (but not as to fractional shares), during the Company’s normal business hours on
any day other than a Saturday or a Sunday or a day on which commercial banking institutions in New
York, New York are authorized by law to be closed (a “Business Day”), by surrender of this Warrant
to the Company at its office maintained pursuant to Section 10.2(a) hereof, accompanied by a
written exercise notice in the form attached as Exhibit A hereto (or a reasonable facsimile
thereof) duly executed by the Holder, together with the payment of the aggregate Exercise Price for
the number of Warrant Shares purchased upon exercise of this Warrant. Upon surrender of this
Warrant, the Company shall cancel this Warrant document and shall, in the event of partial
exercise, replace it with a new Warrant document in accordance with Section 3.3. Notwithstanding
the foregoing, the Company shall not be required to issue a Warrant covering less than 1,000 shares
of Common Stock.

          (b) Except as provided for in Section 3.1(c) below, each exercise of this Warrant must be
accompanied by payment in full of the aggregate Exercise Price in cash, by cashier’s check or wire
transfer of immediately available funds for the number of Warrant Shares being purchased by the
Holder upon such exercise.

          (c) The aggregate Exercise Price for the number of Warrant Shares being purchased may also, in
the sole discretion of the Holder, be paid in full or in part on a “cashless basis” at the election
of the Holder:

               (i) in the form of Common Stock owned by the Holder (based on the Fair Market Value (as
defined below) of such Common Stock on the date of exercise);

               (ii) in the form of Warrant Shares withheld by the Company from the Warrant Shares otherwise
to be received upon exercise of this Warrant having an aggregate Fair Market Value on the date of
exercise equal to the aggregate Exercise Price of the Warrant Shares being purchased by the Holder;
or

               (iii) by a combination of the foregoing, provided that the combined value of all cash and the
Fair Market Value of any shares surrendered to the Company is at least equal to the aggregate
Exercise Price for the number of Warrant Shares being purchased by the Holder.

For purposes of this Warrant, the term “Fair Market Value” means with respect to a particular date,
the volume weighted average trading price of the Common Stock on and as reported by the principal
securities exchange on which the Common Stock is then listed or admitted to trading for the ten
(10) trading days immediately preceding such date, or, if the Common Stock is not listed or
admitted to trading on any securities exchange, as determined in good faith by resolution of the
Board of Directors of the Company, based on the best information available to it.

For purposes of illustration of a cashless exercise of this Warrant under Section 3.1(c)(ii) (or
for a portion thereof for which cashless exercise treatment is requested as contemplated by Section
3.1(c)(iii) hereof),

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the calculation of such exercise shall be as follows:

X = Y (A-B)/A

          where:

          X = the number of Warrant Shares to be issued to the Holder (rounded to the nearest whole
share).

          Y = the number of Warrant Shares with respect to which this Warrant is being exercised.

          A = the Fair Market Value of the Common Stock.

          B = the Exercise Price.

          (d) For purposes of Rule 144 and sub-section (d)(3)(ii) thereof, it is intended, understood,
and acknowledged that such amount of Common Stock that is issued in exchange for non-cash
consideration upon exercise of this Warrant and in accordance with Section 3.1(c) above shall be
deemed to have been acquired at the time this Warrant was issued.

     3.2 When Exercise Effective. Each exercise of this Warrant shall be deemed to have
been effected immediately prior to the close of business on the Business Day on which this Warrant
shall have been duly surrendered to the Company as provided in Sections 3.1 and 12 hereof, and, at
such time, the Holder in whose name any certificate or certificates for Warrant Shares shall be
issuable upon exercise as provided in Section 3.3 hereof shall be deemed to have become the holder
or holders of record thereof of the number of Warrant Shares purchased upon exercise of this
Warrant.

     3.3 Delivery of Common Stock Certificates and New Warrant. As soon as reasonably
practicable after each exercise of this Warrant, in whole or in part, and in any event within ten
(10) Business Days thereafter, the Company, at its expense (including the payment by it of any
applicable issue taxes), will cause to be issued in the name of and delivered to the Holder hereof
or, subject to Sections 9 and 10 hereof, as the Holder (upon payment by the Holder of any
applicable transfer taxes) may direct:

          (a) a certificate or certificates (with appropriate restrictive legends, as applicable) for
the number of duly authorized, validly issued, fully paid and nonassessable Warrant Shares to which
the Holder shall be entitled upon exercise; and

          (b) in case exercise is in part only, a new Warrant document of like tenor, dated the date
hereof, for the remaining number of Warrant Shares issuable upon exercise of this Warrant after
giving effect to the partial exercise of this Warrant (including the delivery of any Warrant Shares
as payment of the Exercise Price for such partial exercise of this Warrant).

4. Certain Adjustments. For so long as this Warrant is outstanding:

     4.1 Mergers or Consolidations. If at any time after the Base Date, there shall be a
capital reorganization (other than a combination or subdivision of Common Stock otherwise provided
for herein) resulting in a reclassification to or change in the terms of securities issuable upon
exercise of this Warrant (a “Reorganization”), or a merger or consolidation of the Company with
another corporation, association, partnership, organization, business, individual, government or
political subdivision thereof or

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a governmental agency (a “Person” or the “Persons”) (other than a merger with another Person in
which the Company is a continuing corporation and which does not result in any reclassification or
change in the terms of securities issuable upon exercise of this Warrant or a merger effected
exclusively for the purpose of changing the domicile of the Company) (a “Merger”), then, as a part
of such Reorganization or Merger, lawful provision and adjustment shall be made so that the Holder
shall thereafter be entitled to receive, upon exercise of this Warrant, the number of shares of
stock or any other equity or debt securities or property receivable upon such Reorganization or
Merger by a holder of the number of shares of Common Stock which might have been purchased upon
exercise of this Warrant immediately prior to such Reorganization or Merger. In any such case,
appropriate adjustment shall be made in the application of the provisions of this Warrant with
respect to the rights and interests of the Holder after the Reorganization or Merger to the end
that the provisions of this Warrant (including adjustment of the Exercise Price then in effect and
the number of Warrant Shares) shall be applicable after that event, as near as reasonably may be,
in relation to any shares of stock, securities, property or other assets thereafter deliverable
upon exercise of this Warrant. The provisions of this Section 4.1 shall similarly apply to
successive Reorganizations and/or Mergers.

     4.2 Splits and Subdivisions; Dividends. In the event the Company should at any time or
from time to time effectuate a split or subdivision of the outstanding shares of Common Stock or
pay a dividend in or make a distribution payable in additional shares of Common Stock or other
securities that are convertible or exchangeable or exercisable into shares of Common Stock (“Common
Stock Equivalents”) without payment of any consideration by such holder for the additional shares
of Common Stock or Common Stock Equivalents (including the additional shares of Common Stock
issuable upon conversion or exercise thereof), then, as of the applicable record date (or the date
of such distribution, split or subdivision if no record date is fixed), the per share Exercise
Price shall be appropriately decreased and the number of Warrant Shares shall be appropriately
increased in proportion to such increase (or potential increase) of outstanding shares; provided,
however, that no adjustment shall be made in the event the split, subdivision, dividend or
distribution is not effectuated.

     4.3 Combination of Shares. If the number of shares of Common Stock outstanding at any
time after the date hereof is decreased by a combination of the outstanding shares of Common Stock,
the per share Exercise Price shall be appropriately increased and the number of shares of Warrant
Shares shall be appropriately decreased in proportion to such decrease in outstanding shares.

     4.4 Adjustments for Other Distributions. In the event the Company shall declare a
distribution payable in securities of other Persons, evidences of indebtedness issued by the
Company or other Persons, assets (excluding cash dividends or distributions to the holders of
Common Stock paid out of current or retained earnings and declared by the Company’s board of
directors) or options or rights not referred to in Sections 4.2, 4.3 or 4.4, then, in each such
case for the purpose of this Section 4.5, upon exercise of this Warrant, the Holder shall be
entitled to a proportionate share of any such distribution as though the Holder was the actual
record holder of the number of Warrant Shares as of the record date fixed for the determination of
the holders of Common Stock of the Company entitled to receive such distribution.

     4.5 Notices of Record Date, Etc. In case:

          (a) the Company shall take a record of the holders of its Common Stock (or other securities at
the time receivable upon the exercise of the Warrant) for the purpose of entitling them to receive
any dividend or other distribution, or any right to subscribe for, purchase or otherwise acquire
any shares of stock of any class or any other securities, or to receive any other right; or

          (b) of any Reorganization of the Company, any Merger of the Company with or into

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another corporation, or any conveyance of all or substantially all of the assets of the
Company to another corporation; or

(c) of any voluntary or involuntary dissolution, liquidation or winding up of the Company,

then, and in each such case, the Company shall mail or cause to be mailed to the Holder specifying,
as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend,
distribution or right, and stating the amount and character of such dividend, distribution or
right, or (ii) the date on which such Reorganization, Merger, conveyance, dissolution, liquidation
or winding up is to take place, and the time, if any, which is to be fixed, as to which the holders
of record of Common Stock (or such other securities at the time receivable upon the exercise of the
Warrant) shall be entitled to exchange their shares of Common Stock (or such other securities) for
securities or other property deliverable upon such Reorganization, Merger, conveyance, dissolution,
liquidation or winding up. Such notice shall be mailed at least ten (10) days prior to the date
therein specified and the Warrant may be exercised prior to said date during the term of the
Warrant.

5. No Impairment. The Company will not, by amendment of its Articles of Incorporation or
Bylaws or through any consolidation, merger, reorganization, transfer of assets, dissolution, issue
or sale of securities or any other voluntary action, seek to avoid the observance or performance of
any of the terms of this Warrant.

6. Chief Financial Officer’s Report as to Adjustments. With respect to each adjustment
pursuant to Section 4 of this Warrant, the Company, at its expense, will promptly compute the
adjustment or re-adjustment in accordance with the terms of this Warrant and cause its Chief
Financial Officer to certify the computation (other than any computation of the fair value of
property of the Company, as the case may be) and prepare a report setting forth, in reasonable
detail, the event requiring the adjustment or re-adjustment and the amount of such adjustment or
re-adjustment, the method of calculation thereof and the facts upon which the adjustment or
re-adjustment is based, and the Exercise Price and the number of Warrant Shares or other securities
purchasable hereunder after giving effect to such adjustment or re-adjustment, which report shall
be mailed by first class mail, postage prepaid to the Holder. The Company will also keep copies of
all reports at its office maintained pursuant to Section 10.2(a) hereof and will cause them to be
available for inspection at the office during normal business hours upon reasonable notice by the
Holder or any prospective purchaser of the Warrant designated by the Holder thereof.

7. Reservation of Shares. The Company shall, solely for the purpose of effecting the
exercise of this Warrant, at all times during the term of this Warrant, reserve and keep available
out of its authorized shares of Common Stock, such number of its shares of Common Stock as shall
from time to time be sufficient to effect in full the exercise of this Warrant. If at any time the
number of authorized but unissued shares of Common Stock shall not be sufficient to effect in full
the exercise of this Warrant, the Company will promptly take such corporate action as may be
necessary to increase the number of authorized but unissued shares of Common Stock to such number
of shares as shall be sufficient for such purposes, including without limitation, using its
reasonable best efforts to obtain the requisite shareholder approval necessary to increase the
number of authorized shares of Common Stock. The Company hereby represents and warrants that all
shares of Common Stock issuable upon exercise of this Warrant shall be duly authorized and, when
issued and paid for upon exercise in accordance with the terms of this Warrant, shall be validly
issued, fully paid and nonassessable.

8. Registration and Listing.

     8.1
Definitions. As used in this Section 8, the term “Registrable
Securities”

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means any shares of Common Stock issuable upon the exercise of this Warrant, until the date (if
any) on which such shares may be sold immediately without registration pursuant to Rule 144
promulgated pursuant to the Securities Act. As used in this Section 8, the term “Best Efforts” means the efforts that a prudent person desirous
of achieving a result would use in similar circumstances to ensure that such result is achieved as
expeditiously as possible, but shall not be deemed to mean that the Company shall be required to
endanger its financial viability or take any act or omission which would be likely to result in a
material adverse effect on the Company’s financial condition.

     8.2 Registration.

          (a) The Company shall prepare and file with the United States Securities and Exchange
Commission (the “SEC”), on or before the fifteenth calendar day following the Initial Exercise Date
(the “Filing Due Date”), a Registration Statement for an offering to be made on a continuous shelf
basis following the date of effectiveness covering the resale of the Registrable Securities by the
Holder (the “Registration Statement”). The Registration Statement shall be on Form S-3 under the
Securities Act or another appropriate form selected by the Company permitting registration of the
resale of the Registrable Securities by the Holder from time to time.
The Company shall use its “Best Efforts” to cause the Registration Statement to become effective pursuant to the
Securities Act as soon as practicable. Notwithstanding the foregoing, if the Company shall furnish
to the Holder a certificate signed by the Chief Executive Officer or Chief Financial Officer of the
Company stating that, in the good faith judgment of the Company’s Board of Directors, it would be
seriously detrimental to the Company and its shareholders for such Registration Statement to be
filed and it is therefore essential to defer the filing of such Registration Statement, the Company
shall have the right to defer taking action with respect to such filing for a period of not more
than 90 days after the Filing Due Date.

          (b) The Registration Statement shall not be deemed to have become effective under the
Securities Act (i) unless it has been filed and has been declared effective under the Securities
Act by the SEC and remains effective pursuant to the Securities Act with respect to the disposition
of all Registrable Securities on a continuous shelf basis until all such Registrable Securities are
sold or cease to be Registrable Securities, or (ii) if the offering of the Registrable Securities
pursuant to such Registration Statement is interfered with by any stop order, cease trade order,
injunction or other order or requirement of the SEC or any other governmental agency, court or
stock exchange, other than by reason of some act or omission by the Holder.

     8.3 Registration Procedures. At its expense, the Company will use its “Best Efforts” to:

          (a) promptly notify the Holder of the effectiveness of the Registration Statement filed in
accordance with this Section 8 and prepare and file with the SEC such amendments and supplements to
such Registration Statement and the prospectus used in connection therewith as may be necessary to
(i) keep such registration statement effective and the prospectus included therein usable for a
period commencing on the date that such Registration Statement is initially declared effective by
the SEC and ending on the date when all Registrable Securities covered by such registration
statement have been sold pursuant to the registration statement or cease to be Registrable
Securities, and (ii) comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by such registration statement during such period in
accordance with the intended methods of disposition by the sellers thereof set forth in such
registration statement;

          (b) furnish to the Holder such number of copies of the Registration Statement, each amendment
and supplement thereto, the prospectus included in such registration statement (including each
preliminary prospectus) and such other documents as such seller may reasonably request in order to
facilitate the disposition of the Registrable Securities owned by the Holder;

          (c) register or qualify such Registrable Securities under such other securities or blue sky
laws of such jurisdictions as the Holder reasonably request and do any and all other acts and
things

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which may be reasonably necessary or advisable to enable the Holder to consummate the disposition
in such jurisdictions of the Registrable Securities owned by the Holder; provided, however, that
the Company shall not be required to: (i) qualify generally to do business in any jurisdiction
where it would not otherwise be required to qualify but for this subparagraph; (ii) subject itself
to taxation in any such jurisdiction; or (iii) consent to general service of process in any such
jurisdiction;

          (d) notify the Holder at any time when a prospectus relating to the Registration Statement is
required to be delivered under the Securities Act of the happening of any event as a result of
which the prospectus included in such Registration Statement, as then in effect, (i) no longer
meets the requirements of Section 10(a)(3) of the Securities Act, or (ii) includes an 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 or incomplete in the light of the
circumstances then existing, and that offers and sales of Registrable Securities in reliance on the
prospectus included in the Registration Statement must cease. At the request of the Holder, the
Company shall prepare and furnish to such seller a reasonable number of copies of a supplement to
or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such shares, such prospectus used shall meet the requirements of Section 10(a)(3) of
the Securities Act, or 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 not
misleading or incomplete in the light of the circumstances then existing;

          (e) cause all such Registrable Securities registered pursuant to the Registration Statement to
be listed on each securities exchange on which similar securities issued by the Company are then
listed;

          (f) cause any Registrable Securities covered by such registration statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to enable
the sellers thereof to consummate the disposition of such Registrable Securities; and

          (g) comply with all applicable rules and regulations of the SEC.

     8.4 Expenses. The Company shall pay all Registration Expenses (as defined below)
relating to the registration and listing obligations set forth in this Section 8. For purposes of
this Warrant, the term “Registration Expenses” means: (a) all registration, filing and NASD fees,
(b) all reasonable fees and expenses of complying with securities or blue sky laws, (c) all
printing expenses, (d) the fees and disbursements of counsel for the Company and of its independent
public accountants, including the expenses of any special audits or “cold comfort” letters required
by or incident to such performance and compliance, (e) premiums and other costs of policies of
insurance (if any) against liabilities arising out of the public offering of the Registrable
Securities being registered if the Company desires such insurance, if any, and (f) reasonable fees
and disbursements, not to exceed $7,500, of one counsel for the selling holders of Registrable
Securities.

     8.5 Information Provided by Holders. The Holder shall furnish to the Company such
information as the Company may reasonably request in writing to enable the Company to comply with
the provisions hereof in connection with any registration referred to in this Warrant.

     8.6 FINRA CobraDesk Filings. In the event that the filing of the Registration
Statement for review by the FINRA via the FINRA’s CobraDesk filing system (“CobraDesk Filing”) is
required pursuant to the rules and regulations of FINRA, within one (1) Business Day of the filing
of such registration statement, the Company will prepare and make a CobraDesk Filing of the selling
stockholder resale offering described in the Registration Statement for review by FINRA for the
purpose of having the prospectus contained within such registration statement treated as a “base
prospectus” in connection with

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such resale offering. If the CobraDesk Filing is required, the Company will use its “Best Efforts” to have the CobraDesk Filing approved by FINRA within thirty (30) days of such filing date.
The Company shall bear all expenses of the CobraDesk Filing, if any, including fees and expenses of
counsel or other advisors to the Holder (not to exceed $5,000). In all circumstances, the Company
shall pay for all FINRA filing fees associated with any CobraDesk Filing.

     8.7 Effectiveness Period. The Company shall use its “Best Efforts” to keep
the Registration Statement effective under the Securities Act until the date which is the earlier
date of when (i) all Registrable Securities covered by such Registration Statement have been sold
or (ii) all Registrable Securities covered by such Registration Statement may be sold immediately
without registration under the Securities Act and without volume restrictions pursuant to Rule
144(k) under the Securities Act, as determined by the counsel to the Company pursuant to a written
opinion letter to such effect, addressed and reasonably acceptable to the Company’s transfer agent
and the affected holders of Registrable Securities.

     8.8 Net Cash Settlement. Notwithstanding anything herein to the contrary, in no event
will the Holder be entitled to receive a net-cash settlement as liquidated damages in lieu of
physical settlement in shares of Common Stock, regardless of whether the Common Stock underlying
this Warrant is registered pursuant to an effective registration statement; provided, however, that
the foregoing will not preclude the Holder from seeking other remedies at law or equity for
breaches by the Company of its registration obligations hereunder.

9. Restrictions on Transfer.

     9.1 Transfer Restrictions Prior to Initial Exercise Date. Notwithstanding any other
provision of this Section 9, prior to the Initial Exercise Date, this Warrant may not be
transferred or assigned to except in accordance with FINRA Rule 2710(g)(2).

     9.2 Notice of Proposed Transfer. Subject to the transfer restrictions set forth in
Section 9.1, prior to any transfer of any securities which are not registered under an effective
registration statement under the Securities Act (“Restricted Securities”), which transfer may only
occur if there is an exemption from the registration provisions of the Securities Act and all other
applicable securities laws, the Holder shall give written notice to the Company of the Holder’s
intention to effect a transfer (and shall describe the manner and circumstances of the proposed
transfer). The following provisions shall apply to any proposed transfer of Restricted Securities:

          (i) If in the opinion of counsel for the Holder reasonably satisfactory to the Company the
proposed transfer may be effected without registration of the Restricted Securities under the
Securities Act (which opinion shall state in detail the basis of the legal conclusions reached
therein), the Holder shall thereupon be entitled to transfer the Restricted Securities in
accordance with the terms of the notice delivered by the Holder to the Company. Each certificate
representing the Restricted Securities issued upon or in connection with any transfer shall bear
the restrictive legends required by Section 9.1 hereof.

          (ii) If the opinion called for in (i) above is not delivered, the Holder shall not be entitled
to transfer the Restricted Securities until either: (x) receipt by the Company of a further notice
from such Holder pursuant to the foregoing provisions of this Section 9.2 and fulfillment of the
provisions of clause (i) above, or (y) such Restricted Securities have been effectively registered
under the Securities Act.

Notwithstanding the foregoing provisions of this Section 9.2, no opinion of counsel shall be
necessary for

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a transfer of Restricted Securities by the Holder to any Person employed by or owning equity in the
Holder, if the transferee agrees in writing to be subject to the terms hereof to the same extent as
if the transferee were the original purchaser hereof and such transfer is permitted under
applicable securities laws.

     9.3 Restrictive Legends. This Warrant, each Warrant issued upon transfer or in
substitution for this Warrant pursuant to Section 10 hereof, each certificate for Common Stock
issued upon the exercise of the Warrant and each certificate issued upon the transfer of any such
Common Stock shall be (i) transferable only upon satisfaction of the conditions specified above and
(ii) stamped or otherwise imprinted with a legend reflecting the restrictions on transfer set forth
in Sections 9.1 and 9.2 above and any restrictions required under the Securities Act or other
applicable securities laws.

     9.4 Termination of Restrictions. Except as set forth in Section 9.1 hereof, the
restrictions imposed by this Section 9 upon the transferability of Restricted Securities shall
cease and terminate as to any particular Restricted Securities: (a) which shall have been
effectively registered under the Securities Act, or (b) when, in the opinions of both counsel for
the Holder and counsel for the Company, such restrictions are no longer required in order to insure
compliance with the Securities Act or Section 10 hereof. Whenever such restrictions shall cease
and terminate as to any Restricted Securities, the Holder thereof shall be entitled to receive from
the Company, without expense (other than applicable transfer taxes, if any), new securities of like
tenor not bearing the applicable legends required by Section 9.1 hereof.

10. Ownership, Transfer, Sale and Substitution of Warrant.

     10.1 Ownership of Warrant. The Company may treat any Person in whose name this Warrant
is registered in the Warrant Register maintained pursuant to Section 10.2(b) hereof as the owner
and holder thereof for all purposes, notwithstanding any notice to the contrary, except that, if
and when any Warrant is properly assigned in blank, the Company may (but shall not be obligated to)
treat the bearer thereof as the owner of such Warrant for all purposes, notwithstanding any notice
to the contrary. Subject to Sections 9 and 10 hereof, this Warrant, if properly assigned, may be
exercised by a new holder without a new Warrant first having been issued.

     10.2 Office; Exchange of Warrant.

          (a) The Company will maintain its principal office at the location identified in the
prospectus relating to the Offering or at such other offices as set forth in the Company’s most
current filing (as of the date notice is to be given) under the Exchange Act or as the Company
otherwise notifies the Holder.

          (b) The Company shall cause to be kept at its office maintained pursuant to Section 10.2(a)
hereof a Warrant Register for the registration and transfer of the Warrant. The name and address of
the holder of the Warrant, the transfers thereof and the name and address of the transferee of the
Warrant shall be registered in such Warrant Register. The Person in whose name the Warrant shall be
so registered shall be deemed and treated as the owner and holder thereof for all purposes of this
Warrant, and the Company shall not be affected by any notice or knowledge to the contrary.

          (c) Upon the surrender of this Warrant, properly endorsed, for registration of transfer or for
exchange at the office of the Company maintained pursuant to Section 10.2(a) hereof, the Company at
its expense will (subject to compliance with Section 9 hereof, if applicable) execute and deliver
to or upon the order of the Holder thereof a new Warrant of like tenor, in the name of such holder
or as such holder (upon payment by such holder of any applicable transfer taxes) may direct,
calling in the aggregate

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on the face thereof for the number of shares of Common Stock called for on the face of the Warrant
so surrendered (after giving effect to any previous adjustment(s) to the number of Warrant Shares).

     10.3 Replacement of Warrant. Upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such
loss, theft or destruction of this Warrant, upon delivery of indemnity reasonably satisfactory to
the Company in form and amount or, in the case of any mutilation, upon surrender of this Warrant
for cancellation at the office of the Company maintained pursuant to Section 10.2(a) hereof, the
Company, at its expense, will execute and deliver, in lieu thereof, a new Warrant of like tenor and
dated the date hereof.

     10.4 Opinions. In connection with the sale of the Warrant Shares by the Holder, the
Company agrees to cooperate with the Holder, and at the Company’s expense, have its counsel provide
any legal opinions required to remove the restrictive legends from the Warrant Shares in connection
with a sale, transfer or legend removal request of Holder.

11. No Rights or Liabilities as Shareholder. No Holder shall be entitled to vote or receive
dividends or be deemed the holder of any shares of Common Stock or any other securities of the
Company which may at any time be issuable on the exercise hereof for any purpose, nor shall
anything contained herein be construed to confer upon the Holder, as such, any of the rights of a
shareholder of the Company or any right to vote for the election of directors or upon any matter
submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate
action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of
par value, consolidation, merger, conveyance, or otherwise) or to receive notice of meetings, or to
receive dividends or subscription rights or otherwise until the Warrant shall have been exercised
and the shares of Common Stock purchasable upon the exercise hereof shall have become deliverable,
as provided herein. The Holder will not be entitled to share in the assets of the Company in the
event of a liquidation, dissolution or the winding up of the Company.

12. Notices. Any notice or other communication in connection with this Warrant shall be
given in writing and directed to the parties hereto as follows: (a) if to the Holder, c/o
[                                                  ]; or (b) if to the Company, to the attention of its Chief Executive Officer
at its office maintained pursuant to Section 10.2(a) hereof; provided, that the exercise of the
Warrant shall also be effected in the manner provided in Section 3 hereof. Notices shall be deemed
properly delivered and received when delivered to the notice party (i) if personally delivered,
upon receipt or refusal to accept delivery, (ii) if sent via facsimile, upon mechanical
confirmation of successful transmission thereof generated by the sending telecopy machine, (iii) if
sent by a commercial overnight courier for delivery on the next Business Day, on the first Business
Day after deposit with such courier service, or (iv) if sent by registered or certified mail, five
(5) Business Days after deposit thereof in the U.S. mail.

13. Payment of Taxes. The Company will pay all documentary stamp taxes attributable to the
issuance of shares of Common Stock underlying this Warrant upon exercise of this Warrant; provided,
however, that the Company shall not be required to pay any tax which may be payable in respect of
any transfer involved in the transfer or registration of this Warrant or any certificate for shares
of Common Stock underlying this Warrant in a name other that of the Holder. The Holder is
responsible for all other tax liability that may arise as a result of holding or transferring this
Warrant or receiving shares of Common Stock underlying this Warrant upon exercise hereof.

14. Miscellaneous. This Warrant and any term hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the party against which enforcement of the
change, waiver, discharge or termination is sought. This Warrant shall be construed and enforced in
accordance with and governed by the laws of the State of Florida. The section headings in this
Warrant are for purposes of convenience only and shall not constitute a part hereof.

10

 

[Signature Page Follows]

11

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of the date
first above written.

	 	 	 	 	 
	 	BIOHEART, INC. 

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

12

 

	 	 	 	 	 

EXHIBIT A

FORM OF EXERCISE NOTICE

[To be executed only upon exercise of Warrant]

To BIOHEART, INC.:

The undersigned registered holder of the within Warrant hereby irrevocably exercises the Warrant
pursuant to Section 3.1 of the Warrant with respect to                               
Warrant Shares, at
an exercise price per share of $[          ], and requests that the certificates for such Warrant Shares
be issued, subject to Sections 9 and 10, in the name of, and delivered to:

 

 

 

 

The undersigned is hereby making payment for the Warrant Shares in the following manner: [check
one]

o    by cash in accordance with Section 3.1(b) of the Warrant

o    via cashless exercise in accordance with Section 3.1(c) of the Warrant in the following manner:

 

 

 

The undersigned hereby represents and warrants that it is, and has been since its acquisition of
the Warrant, the record and beneficial owner of the Warrant.

Dated:                                         

 

Print or Type Name

 

(Signature must conform in all respects to name of holder as specified on the face of Warrant)

 

(Street Address)

 

(City) (State) (Zip Code)

13

 

EXHIBIT B

FORM OF ASSIGNMENT

[To be executed only upon transfer of Warrant]

     For value received, the undersigned registered holder of the within Warrant hereby sells, assigns
and transfers unto                                          [include name and addresses] the rights represented by the
Warrant to purchase
                     shares of Common Stock of BIOHEART, INC. to which the Warrant
relates, and appoints                                Attorney to make such transfer on the books of
BIOHEART, INC. maintained for the purpose, with full power of substitution in the premises.

Dated:                               

(Signature must conform in all respects

to name of holder as specified on the

face of Warrant)

 

(Street Address)

 

(City) (State) (Zip Code)

Signed in the presence of:

 

(Signature of Transferee)

 

(Street Address)

 

(City) (State) (Zip Code)

Signed in the presence of:

14EX-10.1

 

	 	 	 	 	 

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (hereinafter referred to as this “AGREEMENT”), entered into as of
the 18th day of December, 2007, by and among Greenville Federal Financial Corporation, a federally
chartered mid-tier savings and loan holding company (hereinafter referred to as “HOLDING COMPANY”),
Greenville Federal, a federally chartered savings bank and a wholly-owned subsidiary of HOLDING
COMPANY (hereinafter referred to as “BANK”), and David M. Kepler, an individual (hereinafter
referred to as the “EMPLOYEE”);

WITNESSETH:

     WHEREAS, the EMPLOYEE is currently employed as President and Chief Executive Officer of
HOLDING COMPANY and BANK (hereinafter collectively referred to as the “EMPLOYERS”);

     WHEREAS, as a result of the skill, knowledge and experience of the EMPLOYEE, the Boards of
Directors of the EMPLOYERS desire to retain the services of the EMPLOYEE as the President and Chief
Executive Officer of BANK and of HOLDING COMPANY;

     WHEREAS, the EMPLOYEE desires to continue to serve as the President and Chief Executive
Officer of BANK and of HOLDING COMPANY; and

     WHEREAS, the EMPLOYEE and the EMPLOYERS desire to enter into this Agreement to set forth the
terms and conditions of the employment relationship between the EMPLOYERS and the EMPLOYEE;

     NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the
EMPLOYERS and the EMPLOYEE hereby agree as follows:

Section l. Employment and Term.

(a) Term. Upon the terms and subject to the conditions of this AGREEMENT, the
EMPLOYERS hereby employ the EMPLOYEE, and the EMPLOYEE hereby accepts employment, as the
President and Chief Executive Officer of BANK and of HOLDING COMPANY. The term of this
AGREEMENT shall commence on July 1, 2007, and shall end on June 30, 2010, subject to
extension pursuant to subsection (b) of this Section 1 (hereinafter, including any such
extensions, referred to as the “TERM’’), and to earlier termination as provided herein.

(b) Extension. Prior to each anniversary of the date of this AGREEMENT, the Board
of Directors of the EMPLOYERS shall review the performance of the EMPLOYEE and this
AGREEMENT and document the results of the review in the board minutes. In connection with
such annual review, the TERM shall be extended for a one-year period beyond the
then-effective expiration date, provided that the Boards of Directors of the

 

 

EMPLOYERS
determine in a duly adopted resolution that this AGREEMENT should be extended. Any such
extension shall be subject to the written consent of the EMPLOYEE.

Section 2. Duties of EMPLOYEE.

     (a) General Duties and Responsibilities. As an officer of each of the EMPLOYERS, the
EMPLOYEE shall perform the duties and responsibilities customary for such offices to the best of
his ability and in accordance with the policies established by the Boards of Directors of the
EMPLOYERS and all applicable laws and regulations. The EMPLOYEE shall perform such other duties
not inconsistent with his position as may be assigned to him from time to time by the Boards of
Directors of the EMPLOYERS; provided, however, that the EMPLOYERS shall employ the EMPLOYEE during
the TERM in a senior executive capacity without diminishment of the importance or prestige of his
position.

     (b) Devotion of Entire Time to the Business of the EMPLOYERS. The EMPLOYEE shall
devote his entire productive time, ability and attention during normal business hours throughout
the TERM to the faithful performance of his duties under this AGREEMENT. The EMPLOYEE shall not
directly or indirectly render any services of a business, commercial or professional nature to any
person or organization without the prior written consent of the Boards of Directors of the
EMPLOYERS; provided, however, that the EMPLOYEE shall not be precluded from (i) vacations and other
leave time in accordance with Section 3(e) hereof; (ii) reasonable participation in community,
civic, charitable or similar organizations; or (iii) the pursuit of personal investments which do
not interfere or conflict with the performance of the EMPLOYEE’S duties to the EMPLOYERS.

     Section 3. Compensation, Benefits and Reimbursements.

     (a) Salary. The EMPLOYEE shall receive during the TERM an annual salary payable in
equal installments not less often than monthly. The amount of such annual salary shall be $162,000
until changed by the Boards of Directors of the EMPLOYERS in accordance with Section 3(b) of this
AGREEMENT or otherwise.

     (b) Annual Salary Review. Each year throughout the TERM, the annual salary of the
EMPLOYEE shall be reviewed by the Compensation Committee of the Board of Directors of BANK and
shall be set, effective for the next year, at a total amount of not less than $162,000, based upon
the EMPLOYEE’S individual performance and the overall profitability and financial condition of the
EMPLOYERS (hereinafter referred to as the “ANNUAL REVIEW”). The results of the ANNUAL REVIEW shall
be reflected in the minutes of the Compensation Committee.

     (c) Expenses. In addition to any compensation received under Section 3(a) or (b) of
this AGREEMENT, the EMPLOYERS shall pay or reimburse the EMPLOYEE for all reasonable travel,
entertainment and miscellaneous expenses incurred in connection with the performance of his duties
under this AGREEMENT. Such reimbursement shall be made in accordance with the existing policies
and procedures of the EMPLOYERS pertaining to reimbursement of expenses to senior management
officials.

 

 

     (d) Employee Benefit Program. During the TERM, the EMPLOYEE shall be entitled to
participate in all formally established employee benefit, bonus, pension and profit-sharing plans
and similar programs that are maintained by the EMPLOYERS from time to time, including programs in
respect of group health, disability or life insurance, reimbursement of membership fees in civic,
social and professional organizations and all employee benefit plans or programs hereafter adopted
in writing by the Boards of Directors of the EMPLOYERS, for which senior management personnel are
eligible, including any employee stock ownership plan, stock option plan or other stock benefit
plan (hereinafter collectively referred to as the “BENEFIT PLANS”). Notwithstanding the foregoing
sentence, the EMPLOYERS may discontinue or terminate at any time any such BENEFIT PLANS, now
existing or hereafter adopted, to the extent permitted by the terms of such plans and shall not be
required to compensate the EMPLOYEE for such discontinuance or termination.

     (e) Vacation and Sick Leave. The EMPLOYEE shall be entitled, without loss of pay, to
be absent voluntarily from the performance of his duties under this AGREEMENT, subject to the
following conditions:

     (i) The EMPLOYEE shall be entitled to an annual vacation in accordance with the
policies periodically established by the Boards of Directors of the EMPLOYERS for senior
management officials of the EMPLOYERS, the duration of which shall not be less than 5 weeks
each calendar year;

     (ii) Vacation time shall be scheduled by the EMPLOYEE in a reasonable manner and shall
be subject to approval by the Boards of Directors of the EMPLOYERS. The EMPLOYEE shall not
be entitled to receive any additional compensation from the EMPLOYERS in the event of his
failure to take the full allotment of vacation time in any calendar year; and

     (iii) The EMPLOYEE shall be entitled to annual sick leave as established by the Boards
of Directors of the EMPLOYERS for senior management officials of the EMPLOYERS. In the
event that any sick leave time shall not have been used during any calendar year, such leave
shall accrue to subsequent calendar years only to the extent authorized by the Boards of
Directors of the EMPLOYERS. Upon termination of employment, the EMPLOYEE shall not be
entitled to receive any additional compensation from the EMPLOYERS for unused sick leave.

     Section 4. Termination of Employment.

     (a) General. For purposes of this AGREEMENT, (i) a termination of employment shall
mean the EMPLOYEE’S separation from service, as that phrase is defined in Section 409A of the
Internal Revenue Code of 1986, as amended (the “CODE”) and Treasury Regulation (“REG.”) §
1.409A-1(h); and (ii) any reference to a termination by or from the EMPLOYERS shall include a
termination by or from the EMPLOYERS, and any other entity that, along with the EMPLOYERS, would be
considered a “service recipient” within the meaning of Section 409A of the CODE and REG. §
1.409A-1(g). The following subsections (A), (B) and (C) of this Section 4(a) shall govern the
obligations of the EMPLOYERS to the EMPLOYEE upon the occurrence of the events described in such
subsections:

 

 

     (A) Termination for JUST CAUSE. In the event that the EMPLOYERS terminate the
employment of the EMPLOYEE during the TERM because of the EMPLOYEE’S personal dishonesty,
willful misconduct, breach of fiduciary duty involving personal profit, intentional failure
or refusal to perform the duties and responsibilities assigned in this AGREEMENT, willful
violation of any law, rule, regulation or final cease-and-desist order (other than traffic
violations or similar offenses), conviction or plea of guilty or nolo contendere of a felony
or for fraud or embezzlement, or material breach of any provision of this AGREEMENT
(collectively, “JUST CAUSE”), the EMPLOYEE shall not receive, and shall have no right to
receive, any compensation or other benefits for any period after such termination and this
AGREEMENT shall terminate at that time. No act, or failure to act, on the EMPLOYEE’S part
shall be considered “willful” if he has acted or failed to act with good faith and with a
reasonable belief that his action or failure to act was in the best interests of the
EMPLOYERS.

     (B) Termination in connection with CHANGE OF CONTROL.

     (1) In the event that the EMPLOYERS terminate the employment of the EMPLOYEE
before the expiration of the TERM without JUST CAUSE and within six
months before the occurrence of a CHANGE OF CONTROL (as defined hereinafter) or
within one year following the occurrence of a CHANGE OF CONTROL, and if the EMPLOYEE
signs a general release as required by Section 4(d) of this AGREEMENT, then the
following shall occur:

     (a) The EMPLOYERS shall promptly pay to the EMPLOYEE, or to his
dependents, beneficiaries or estate, an amount equal to three times the
EMPLOYEE’S COMPENSATION (as defined below) in a lump sum without reduction
for time value of money or other discount. This payment shall be made as
promptly as practicable, but in no event later than the 15th day of the
third month following the end of the taxable year of the EMPLOYEE in which
the termination occurred or, if later, the end of the taxable year of the
HOLDING COMPANY in which the termination occurred. For purposes of this
section, “EMPLOYEE’S COMPENSATION” shall mean: (I) the higher of the
EMPLOYEE’S annual base salary immediately prior to occurrence of the CHANGE
OF CONTROL or termination of the EMPLOYEE’S employment; plus (II) the annual
highest bonus paid to the EMPLOYEE by the EMPLOYERS during the five years
preceding his termination or such shorter period of time as the EMPLOYEE has
been employed by the EMPLOYERS;

     (b) Provided the EMPLOYEE and/or any eligible dependents properly elect
COBRA (as defined herein) coverage, the EMPLOYERS or their successors,
survivors or assigns shall pay one hundred percent (100%) of all applicable
premiums for continuation coverage for the EMPLOYEE and/or his dependents
under the group health plan of the EMPLOYERS in which the EMPLOYEE was a
participant at the time of the termination of his employment until the date
on which the

 

 

EMPLOYEE is eligible to participate in a group health plan of
another employer as a full-time employee; provided, however, that in no
event shall this period extend beyond the period of time during which the
EMPLOYEE would be entitled to continuation coverage under the group health
plan of the BANK under Section 4980B (COBRA) of the CODE;

     (c) The EMPLOYERS or their successors, survivors or assigns shall
reimburse the EMPLOYEE for one hundred percent (100%) of all applicable
premiums paid by the EMPLOYEE and not otherwise reimbursed or compensated
for by insurance for disability and life insurance policies not to exceed,
in scope or benefit, any group disability and/or life insurance plan of the
EMPLOYERS in which the EMPLOYEE was a participant at the time of the
termination of his employment until the earlier of eighteen (18) months
after the EMPLOYEE’S termination of employment or the date on which the
EMPLOYEE is eligible to participate in a similar disability or life
insurance plan of another employer as a full-time employee. Any
reimbursement made pursuant to this Section 4(a)(B)(1)(c) shall (I) be
limited to the amount the EMPLOYERS pay for each such disability and life
insurance policies for their then current employees; (II) not affect the
expenses eligible for reimbursement in any other taxable year of the
EMPLOYEE; (III) be made on or before the last day of the taxable year of the
EMPLOYEE following the taxable year of the EMPLOYEE in which the expense was
incurred; and (IV) not be subject to liquidation or exchange for another
benefit; and

     (d) The EMPLOYEE shall not be required to mitigate the amount of any
payment provided for in this AGREEMENT by seeking other employment or
otherwise, nor shall any amounts received from other employment or otherwise
by the EMPLOYEE offset in any manner the obligations of the EMPLOYERS
hereunder, except as specifically stated in subsections (b) and (c).

     (2) The EMPLOYEE may terminate his employment with the EMPLOYERS for GOOD
REASON (as defined below) during the one-year period following the occurrence of a
CHANGE OF CONTROL and, if EMPLOYEE signs a general release as required by Section
4(d) of this AGREEMENT, shall be entitled to the compensation and benefits as set
forth in Section 4(a)(B)(1) of this AGREEMENT. For purposes of this subsection, the
term “GOOD REASON” shall mean the occurrence of any of the following during the
one-year period following the occurrence of a CHANGE OF CONTROL:

     (a) a material diminution in the EMPLOYEE’S base compensation;

     (b) a material diminution in the EMPLOYEE’S authority, duties, or
responsibilities (for this purpose and without limiting the foregoing, a
material diminution shall be deemed to occur if the

 

 

EMPLOYEE is no longer
the President or Chief Executive Officer of the EMPLOYERS);

     (c) a requirement that the EMPLOYEE report to a corporate officer or
employee instead of reporting directly to the Board of Directors of the
EMPLOYERS or any of their successors, survivors or assigns;

     (d) a material diminution in the budget over which the EMPLOYEE retains
authority;

     (e) a material change in the geographic location at which the EMPLOYEE
is required to perform services; or

     (f) the EMPLOYERS or any of their successors, survivors or assigns
otherwise breaches this AGREEMENT in any material respect.

The EMPLOYEE shall be required to provide written notice to the EMPLOYERS or their
successors, survivors or assigns within ninety (90) days of the initial existence of
the condition constituting GOOD REASON, and the EMPLOYERS shall have thirty (30)
days from the giving of this written notice in which to remedy the condition
constituting GOOD REASON and not be required to pay the compensation and benefits
described in Section 4(a)(B)(1). If the EMPLOYEE shall fail to provide such written
notice to the EMPLOYERS within the period described above, then he will be deemed to
have consented to such condition and the EMPLOYERS shall have no obligation to pay
the compensation and benefits described in Section 4(a)(B)(1) with respect to such
condition.

     (3) Definition of “CHANGE OF CONTROL”. A “CHANGE OF CONTROL” shall
mean any one of the following events: (a) the acquisition, directly or indirectly,
of ownership or power to vote more than 50% of the voting stock of either of the
EMPLOYERS; (b) the merger of either of the EMPLOYERS into, or the
consolidation of either of the EMPLOYERS with, another corporation, or the merger of
another corporation into either of the EMPLOYERS, on a basis whereby less than fifty
percent of the total voting power of the surviving corporation is represented by
shares held by former shareholders of HOLDING COMPANY prior to such merger or
consolidation; (c) the acquisition of the ability to control the election of a
majority of the directors of either of the EMPLOYERS; (d) during any period of two
consecutive years, individuals who at the beginning of such period constitute the
Board of Directors of HOLDING COMPANY or BANK cease for any reason to constitute at
least a majority thereof; provided, however, that any individual whose election or
nomination for election as a member of the Board of Directors of HOLDING COMPANY or
BANK was approved by a vote of at least two-thirds of the directors then in office
shall be considered to have continued to be a member of the Board of Directors of
HOLDING COMPANY or BANK; (e) the acquisition by any person or entity of the power to
direct either of BANK’s management or policies, if the Board of Directors has made a
determination that such acquisition constitutes or will constitute an acquisition of
control of either of the EMPLOYERS for the purpose

 

 

of the Bank Holding Company Act
or the Change in Bank Control Act and the regulations thereunder; or (f) BANK shall
have sold substantially all of its assets. For purposes of this paragraph, the term
“person” refers to an individual or corporation, partnership, trust, association,
joint venture, pool, syndicate or other organization or entity.

Notwithstanding the foregoing, in no event shall (I) the ownership of stock of BANK
by HOLDING COMPANY or the ownership of stock of HOLDING COMPANY by Greenville
Federal MHC, or (II) the conversion of the EMPLOYERS or Greenville Federal MHC from
the mutual holding company form of organization to the full stock form of
organization, constitute a CHANGE OF CONTROL.

     (C) Termination Without CHANGE OF CONTROL. In the event that the employment of
the EMPLOYEE is terminated by the EMPLOYERS before the end of the TERM for any reason other
than death, the inability to perform his duties because of a medically diagnosable condition
as provided in Section 4(c) of this AGREEMENT, JUST CAUSE or in connection with or within
six months before or one year after a CHANGE IN CONTROL, or in the event that the employment
of the EMPLOYEE is terminated by the EMPLOYEE for GOOD REASON, and if the EMPLOYEE signs a
general release as required by Section 4(d) of this AGREEMENT, the EMPLOYERS shall be
obligated (1) to make a lump sum payment to the EMPLOYEE within two weeks after the
EMPLOYEE’S termination of employment in the amount equal to the annual salary that would
have been paid to the EMPLOYEE pursuant to Section 3(a) or (b) of this AGREEMENT for the
remainder of the TERM; and (2) provided the EMPLOYEE and/or any eligible dependents properly
elect COBRA coverage, until the earlier of the EMPLOYEE and his spouse both becoming 65
years of age or the EMPLOYEE’S becoming employed full-time by another employer, to provide
to the EMPLOYEE and/or his dependents at the EMPLOYEE’S expense, health, life and disability
benefits substantially equal to those being provided to the EMPLOYEE at the date of
termination of his employment. The EMPLOYERS’ obligation to provide life and disability
benefits shall be contingent on the EMPLOYEE and/or his dependents being insurable in the
EMPLOYERS’ group insurance plans. Notwithstanding the foregoing provisions, the EMLOYEE and
his spouse may only participate in a health insurance program for as long as the EMPLOYERS
make available an employee group health insurance program which permits the EMPLOYERS to
make coverage available for similarly situated former employees; provided further, that if
the EMPLOYERS make available an employee group health insurance program that would permit
terminated employees and their spouses to continue to be covered past age 65, the EMPLOYEE
and his spouse shall be permitted to participate in such program,
with all premiums paid by the EMPOYEE and/or his spouse, for so long as the EMLOYERS
maintain such a program; and provided further, however, that the EMPLOYERS shall not be
required to provide or maintain any employee group insurance program.

     (b) Death of the EMPLOYEE. The TERM automatically terminates upon the death of the
EMPLOYEE, unless the employment of EMPLOYEE has been terminated prior to EMPLOYEE’S death pursuant
to Section 4(a) of this AGREEMENT. In the event of such death, the EMPLOYEE’S estate shall be
entitled to receive the compensation due the EMPLOYEE

 

 

through the last day of the calendar month in
which the death occurred, except as otherwise specified herein.

     (c) Medically Diagnosable Condition: Inability of the EMPLOYEE to Perform Duties. If
the EMPLOYEE is unable to perform his duties as set forth in Section 2 of this AGREEMENT because of
a medically diagnosable physical or mental condition for a period of one hundred eighty (180)
consecutive days or more, the EMPLOYERS shall have the right to terminate the employment of the
EMPLOYEE by giving him written notice. In the event that the employment of the EMPLOYEE is
terminated by the EMPLOYERS before the end of the TERM as provided in this Section 4(c), and if the
EMPLOYEE signs a general release as required by Section 4(d) of this AGREEMENT, the EMPLOYERS shall
be obligated to make a lump sum payment to the EMPLOYEE within two weeks after the EMPLOYEE’S
termination of employment in the amount equal to one-half of the amount of the EMPLOYEE’S annual
salary provided pursuant to Sections 3(a) and 3(b) of this AGREEMENT.

     (d) Payments Conditioned on General Release. As a condition precedent to the payment
by the EMPLOYERS to the EMPLOYEE of any amounts and/or the providing to the EMPLOYEE and/or his
dependents any benefits provided in Sections 4(a)(B), 4(a)(C) and/or 4(c) of this AGREEMENT, the
EMPLOYEE shall execute a valid general release of any and all claims against the EMPLOYERS in a
form prescribed by the EMPLOYERS. If such release is not executed and returned to the EMPLOYERS
within one hundred fifty days after the Participant’s termination, the Participant shall forfeit
all rights under Sections 4(a)(B), 4(a)(C) and 4(c) of this AGREEMENT.

     (e) “Golden Parachute” Provision.

     (i) Any payments made to the EMPLOYEE pursuant to this AGREEMENT, or otherwise, are
subject to and conditioned upon their compliance with 12 U.S.C. §1828(k) and FDIC regulation
12 C.F.R. Part 359, Golden Parachute and Indemnification Payments.

     (ii) In the event that payments pursuant to Section 4(a), alone or in combination with
any other compensation, would result in the imposition of a penalty tax pursuant to Sections
280G and 4999 of the CODE and the regulations promulgated thereunder (collectively, “SECTION
280G”), such payments shall be reduced to the maximum amount that may be paid under SECTION
280G without resulting in the imposition of a penalty tax. For purposes of this Section,
any determination that a payment is subject to SECTION 280G shall be made in writing by the
principal certified public accounting firm or other professional selected by the EMPLOYERS
in their sole discretion. In the event a reduction in payments is necessary in order to
comply with the requirements of this AGREEMENT relating to SECTION 280G or applicable
regulatory limits, the EMPLOYEE may determine, in his sole discretion, which categories of
payments are to be reduced or eliminated.

     (f) Termination of Agreement. This AGREEMENT shall terminate, as follows:

     (i) If the EMPLOYEE signs a general release as required by Section 4(d) of this
AGREEMENT on or before the one hundred eightieth (180th) day after the termination

 

 

of his
employment, when the EMPLOYERS have satisfied any obligations to the EMPLOYEE under
Sections 4(a)(B), 4(a)(C) and/or 4(c) of this AGREEMENT.

     (ii) If the EMPLOYEE does not sign a binding general release as required by Section
4(d) of this AGREEMENT, on or before the one hundred eightieth (180th) day after the
termination of his employment, at the end of that one-hundred-eighty-day period.

     Section 5. Special Regulatory Events. Notwithstanding Section 4 of this AGREEMENT,
the obligations of the EMPLOYERS to the EMPLOYEE shall be as follows in the event of the following
circumstances:

     (a) If the EMPLOYEE is suspended and/or temporarily prohibited from participating in the
conduct of the EMPLOYERS’ affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal
Deposit Insurance Act (hereinafter referred to as the “FDIA”), the EMPLOYERS’ obligations under
this AGREEMENT shall be suspended as of the date of service of such notice, unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, the EMPLOYERS may, in their
discretion, pay the EMPLOYEE all or part of the compensation withheld while the obligations in this
AGREEMENT were suspended and reinstate, in whole or in part, any of the obligations that were
suspended.

     (b) If the EMPLOYEE is removed and/or permanently prohibited from participating in the conduct
of the EMPLOYERS’ affairs by an order issued under Section 8(e)(4) or (g)(l) of the FDIA, all
obligations of the EMPLOYERS under this AGREEMENT shall terminate as of the effective date of such
order; provided, however, that vested rights of the EMPLOYEE shall not be affected by such
termination.

     (c) If the EMPLOYERS are in default, as defined in Section 3(x)(1) of the FDIA, all
obligations under this AGREEMENT shall terminate as of the date of default; provided, however, that
vested rights of the EMPLOYEE shall not be affected.

     (d) All obligations under this AGREEMENT shall be terminated, except to the extent of a
determination that the continuation of this AGREEMENT is necessary for the continued operation of
the EMPLOYERS, (i) by the Director of the Office of Thrift Supervision (hereinafter referred to as
the “OTS”), or his or her designee, at the time that the Federal Deposit Insurance Corporation
enters into an agreement to provide assistance to or on behalf of the EMPLOYERS under the authority
contained in Section 13(c) of the FDIA; or (ii) by the Director of the OTS, or his or her designee,
at any time the Director of the OTS, or his or her designee, approves a supervisory merger to
resolve problems related to the operation of the EMPLOYERS or when the EMPLOYERS are determined by
the Director of the OTS to be in an unsafe or unsound condition. No vested rights of the EMPLOYEE
shall be affected by any such action.

     Section 6. Consolidation, Merger or Sale of Assets. Nothing in this AGREEMENT shall
preclude the EMPLOYERS from consolidating with, merging into, or transferring all, or substantially
all, of their assets to another corporation that assumes all of the EMPLOYERS’ obligations and
undertakings hereunder. Upon such a consolidation, merger or transfer of assets, the term
“EMPLOYERS” as used herein shall mean such other corporation or entity and this AGREEMENT shall
continue in full force and effect; provided, however, that the assumption of the EMPLOYERS’
obligations and undertakings hereunder shall not affect the
EMPLOYEE’S

 

 

right to payments pursuant
to Section 4(a)(B) of this AGREEMENT in connection with such consolidation, merger or transfer of
assets.

     Section 7. Confidential Information. The EMPLOYEE acknowledges that during his
employment he will learn and have access to confidential information regarding the EMPLOYERS and
their customers and businesses. The EMPLOYEE agrees and covenants not to disclose or use for his
own benefit, or the benefit of any other person or entity, any confidential information, unless or
until the EMPLOYERS’ consent to such disclosure or use or such information becomes common knowledge
in the industry or is otherwise legally in the public domain. The EMPLOYEE shall not knowingly
disclose or reveal to any unauthorized person any confidential information relating to the
EMPLOYERS, their subsidiaries or affiliates, or to any of the businesses operated by them, and the
EMPLOYEE confirms that such information constitutes the exclusive property of the EMPLOYERS. The
EMPLOYEE shall not otherwise knowingly act or conduct himself (a) to the material detriment of the
EMPLOYERS, their subsidiaries, or affiliates, or (b) in a manner which is inimical or contrary to
the interests of the EMPLOYERS.

     Section 8. Nonassignability. Neither this AGREEMENT nor any right or interest
hereunder shall be assignable by the EMPLOYEE, his beneficiaries, or legal representatives without
the EMPLOYERS’ prior written consent; provided, however, that nothing in this Section 8 shall
preclude (a) the EMPLOYEE from designating a beneficiary to receive any benefits payable hereunder
upon his death, or (b) the executors, administrators, or other legal representatives of the
EMPLOYEE or his estate from assigning any rights hereunder to the person or persons entitled
thereto.

     Section 9. No Attachment. Except as required by law, no right to receive payment
under this AGREEMENT shall be subject to anticipation, commutation, alienation, sale, assignment,
encumbrance, charge, pledge or hypothecation or to execution, attachment, levy, or similar process
of assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such
action shall be null, void and of no effect.

     Section 10. Binding Agreement. This AGREEMENT shall be binding upon, and inure to the
benefit of, the EMPLOYEE and the EMPLOYERS and their respective permitted successors and assigns.

     Section 11. Amendment of AGREEMENT. This AGREEMENT may not be modified or amended,
except by an instrument in writing signed by the parties hereto.

     Section 12. Section 409A of the CODE. The compensation and benefits payable pursuant
to this AGREEMENT are intended to be exempt from the requirements of Section 409A of the CODE and,
to the maximum extent permitted by law, shall be interpreted in a manner that results in its
continued exemption from the requirements of that section. In the event the EMPLOYEE is a
“specified employee,” within the meaning of Section 409A of the CODE and the Treasury Regulations
promulgated thereunder and as determined under the HOLDING COMPANY’S policy for determining
specified employees, on the date of termination, then payment of any amounts subject to Section
409A of the CODE shall be paid on the first business day of the seventh month following the date of
the EMPLOYEE’S termination, or, if earlier, the date of the EMPLOYEE’S death.

 

 

     Section 13. Waiver. No term or condition of this AGREEMENT shall be deemed to have
been waived, nor shall there be an estoppel against the enforcement of any provision of this
AGREEMENT, except by written instrument of the party charged with such waiver or estoppel. No such
written waiver shall be deemed a continuing waiver, unless specifically stated therein, and each
waiver shall operate only as to the specific term or condition waived and shall not constitute a
waiver of such term or condition for the future or as to any act other than the act specifically
waived.

     Section 14. Severability. If, for any reason, any provision of this AGREEMENT is held
invalid, such invalidity shall not affect the other provisions of this AGREEMENT not held so
invalid, and each such other provision shall, to the full extent consistent with applicable law,
continue in full force and effect. If this AGREEMENT is held invalid or cannot be enforced, then
any prior AGREEMENT between the EMPLOYERS (or any predecessor thereof) and the EMPLOYEE shall be
deemed reinstated to the full extent permitted by law, as if this AGREEMENT had not been executed.

     Section 15. Headings. The headings of the paragraphs herein are included solely for
convenience of reference and shall not control the meaning or interpretation of any of the
provisions of this AGREEMENT.

     Section 16. Governing Law. This AGREEMENT has been executed and delivered in the
State of Ohio and its validity, interpretation, performance, and enforcement shall be governed by
the laws of this State of Ohio, except to the extent that federal law is governing.

     Section 17. Effect of Prior Agreements. This AGREEMENT contains the entire
understanding between the parties hereto and supersedes any prior employment agreement between the
EMPLOYERS and the EMPLOYEE, each of which is hereby terminated and is of no further force or
effect.

     Section 18. Notices. Any notice or other communication required or permitted pursuant
to this AGREEMENT shall be deemed delivered if such notice or communication is in writing and is
delivered personally or by facsimile transmission or is deposited in the United States mail,
postage prepaid, addressed as follows:

     If to HOLDING COMPANY and/or BANK:

Greenville Federal

690 Wagner Avenue

Greenville, OH 45331

Attention: Chairman of the Board

     With copies to:

Vorys, Sater, Seymour and Pease LLP

Suite 2000, Atrium Two

221 East Fourth Street

Cincinnati, Ohio 45202

 

 

Attention: Cynthia A. Shafer

     If to the EMPLOYEE to:

Mr. David M. Kepler

119 Merrie Lane

Pitsburg, OH 45358

     IN WITNESS WHEREOF, the EMPLOYERS have caused this AGREEMENT to be executed by their duly
authorized officers, and the EMPLOYEE has signed this AGREEMENT, each as of the day and year first
above written.

	 	 	 	 	 	 	 	 	 
	Attest:	 	GREENVILLE FEDERAL FINANCIAL
CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ David Feltman	 	By	 	James W. Ward	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	James W. Ward	 	 
	 	 	 	 	its Chairman	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	GREENVILLE FEDERAL	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ David Feltman	 	By	 	James W. Ward	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	James W. Ward	 	 
	 	 	 	 	its Chairman	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ David Feltman	 	/s/ David M. Kepler	 	 
	 	 	 	 	 
	 	 	David M. Kepler

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