Document:

Exhibit
10.1

 

WARRANT

 

To Purchase 77,381 Shares of

Common Stock

of

MEDICALCV, INC.

 

This
Warrant and the securities issuable upon exercise of this Warrant have not been
registered under the Securities Act of 1933 (the “Securities Act”) or under any
state securities or “Blue Sky” laws (“Blue Sky Laws”). No transfer, sale,
assignment, pledge, hypothecation or other disposition of this Warrant or the
securities issuable upon exercise of this Warrant or any interest therein may
be made except (a) pursuant to an effective registration statement under the
Securities Act and any applicable Blue Sky Laws or (b) if the Company has been
furnished with an opinion of counsel for the holder, which opinion and counsel
shall be reasonably satisfactory to the Company, to the effect that no
registration is required because of the availability of an exemption from
registration under the Securities Act and applicable Blue Sky Laws.

 

THIS
CERTIFIES THAT, for good and valuable consideration, PKM PROPERTIES, LLC a
Minnesota limited liability company (“PKM Properties”) or its registered
assigns, is entitled to subscribe for and purchase from MedicalCV, Inc., a
Minnesota corporation (the “Company”), at any time to and including the
date that is ten (10) years after the date hereof.  Seventy-Seven Thousand Three Hundred Eighty-One (77,381) fully
paid and nonassessable shares of the Common Stock of the Company at the price
of $1.68 per share (the “Warrant Exercise Price”), subject to the
antidilution provisions of this Warrant. 
The shares which may be acquired upon exercise of this Warrant are
referred to herein as the “Warrant Shares.” As used herein, the term “Holder”
means PKM Properties, any party who acquires all or a part of this Warrant as a
registered transferee of PKM Properties, or any record holder or holders of the
Warrant Shares issued upon exercise, whether in whole or in part, of the
Warrant; the term “Common Stock” means the Company’s Common Stock, $.01 par
value.

 

This
Warrant is subject to the following provisions, terms and conditions:

 

1.             Exercise; Conversion Right;
Transferability

 

(a)           The rights represented by this
Warrant may be exercised by the Holder hereof at any time, for a period of ten
(10) years commencing on the date hereof, in whole or in part (but not as to a
fractional share of Common Stock), by written notice of exercise (in the form
attached hereto) delivered to the Company at the principal office of the
Company prior to the expiration of this Warrant and accompanied or preceded by
the surrender of this Warrant along with a check in payment of the Warrant
Exercise Price for such shares.

 

(b)           Subject to the restrictions on transfer of this Warrant or
the Warrant Shares set forth herein, the Holder of this Warrant shall have the
right to require the Company to convert this Warrant (the “Conversion Right’)
at any time after the date hereof
and prior to its expiration

 

 

into shares of Common Stock as provided for
in Sections 1(b) through 1(d) hereof. 
Upon exercise of the Conversion Right, the Company shall deliver to the
Holder (without payment by the Holder of any Warrant Exercise Price) that
number of shares of Company Common Stock equal to the quotient obtained by
dividing (i) the value of the Warrant at the time the Conversion Right is
exercised (determined by subtracting the aggregate Warrant Exercise Price for
the Warrant Shares in effect immediately prior to the exercise of the
Conversion Right from the aggregate Fair Market Value (as defined in
Section 10 hereof) for the Warrant Shares immediately prior to the
exercise of the Conversion Right) by (ii) the Fair Market Value of one share of
Common Stock immediately prior to the exercise of the Conversion Right.

 

(c)           The Conversion Right may be exercised by the Holder, at
any time or from time to time, after the date hereof and prior to its
expiration, on any business day by delivering a written notice in the form
attached hereto (the “Conversion Notice”) to the Company at the offices
of the Company exercising the Conversion Right and specifying (i) the total
number of shares of Common Stock the
Holder will purchase pursuant to such conversion and (ii) a place and date not
less than one or more than 20 business days from the date of the Conversion
Notice for the closing of such purchase.

 

(d)           At any closing under Section 1(c) hereof, (i) the Holder
will surrender the Warrant, (ii) the Company will deliver to the Holder a certificate or certificates for the number
of shares of Common Stock issuable upon such conversion, together with cash, in
lieu of any fraction of a share, and (iii) the Company will deliver to the
Holder a new warrant representing the number of shares, if any, with respect to
which the Warrant shall not have been exercised.

 

(e)           Subject to the provisions of
Section 7 hereof, this Warrant shall be fully transferable, in whole or in
part; provided that this Warrant shall be transferable only on the books of the
Company by the Holder in person, or by duly authorized attorney, on surrender
of the Warrant, properly assigned.

 

2.             Exchange and Replacement.  Subject to Sections 1 and 7 hereof, this
Warrant is exchangeable upon the surrender hereof by the Holder to the Company
at its office for new Warrants of like tenor and date representing in the
aggregate the right to purchase the number of Warrant Shares purchasable
hereunder, each of such new Warrants to represent the right to purchase such
number of Warrant Shares (not to exceed the aggregate total number purchasable
hereunder) as shall be designated by the Holder at the time of such surrender.  Upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction, or mutilation of
this Warrant, and, in case of loss, theft or destruction, of indemnity
reasonably satisfactory to it, and upon surrender and cancellation of this
Warrant, if mutilated, the Company will make and deliver a new Warrant of like
tenor, in lieu of this Warrant.  This
Warrant shall be promptly canceled by the Company upon the surrender hereof in
connection with any exchange or replacement. 
The Company shall pay all expenses, taxes (other than stock transfer
taxes), and other charges incurred by it in connection with the preparation,
execution, and delivery of Warrants pursuant to this Section 2.

 

2

 

3.             Issuance
of the Warrant Shares.

 

(a)           The Company agrees that the shares of
Common Stock purchased upon exercise of this Warrant shall be and are deemed to
be issued to the Holder as of the close of business on the date on which this
Warrant shall have been surrendered and the payment made for such Warrant
Shares as aforesaid.  Subject to the
provisions of paragraph (b) of this Section 3, certificates for the Warrant
Shares so purchased shall be delivered to the Holder within a reasonable time,
not exceeding fifteen (15) days after the rights represented by this Warrant
shall have been so exercised, and, unless this Warrant has expired, a new
Warrant representing the right to purchase the number of Warrant Shares, if
any, with respect to which this Warrant shall not then have been exercised
shall also be delivered to the Holder within such time.

 

(b)           Notwithstanding the foregoing, the
Company shall not be required to deliver any certificate for Warrant Shares
upon exercise of this Warrant except in accordance with exemptions from the
applicable securities registration requirements or registrations under
applicable securities laws.  Nothing
herein, however, shall obligate the Company to effect registrations under
federal or state securities laws, except as provided in Section 9.  If registrations are not in effect and if
exemptions are not available when the Holder seeks to exercise the Warrant, the
Warrant exercise period will be extended, if need be, to prevent the Warrant
from expiring, until such time as either registrations become effective or
exemptions are available, and the Warrant shall then remain exercisable for a
period of at least 30 calendar days from the date the Company delivers to the
Holder written notice of the availability of such registrations or
exemptions.  The Holder agrees to
execute such documents and make such representations, warranties, and
agreements as may be required solely to comply with the exemptions relied upon
by the Company, or the registrations made, for the issuance of the Warrant
Shares.

 

                4.             Covenants
of the Company.  The Company
covenants and agrees that all Warrant Shares will, upon issuance, be duly
authorized and issued, fully paid, nonassessable, and free from all taxes,
liens, and charges with respect to the issuance thereof.  The Company further covenants and agrees
that during the period within which the rights represented by this Warrant may
be exercised, the Company will at all times have authorized and reserved for
the purpose of issue or transfer upon exercise of the subscription rights
evidenced by this Warrant a sufficient number of shares of Common Stock to
provide for the exercise of the rights represented by this Warrant.

 

                5.             Antidilution
Adjustments.  The
provisions of this Warrant are subject to adjustment as provided in this
Section 5; provided that no adjustment shall be made pursuant to this
Section 5 which has the effect of duplicating any adjustment made pursuant
to the Articles of Incorporation of the Company or any certificate of designation
thereto, if any.

 

(a)           The Warrant Exercise Price shall be
subject to adjustment from time to time as hereinafter provided.  Upon each adjustment of the Warrant Exercise
Price the holder of this Warrant shall thereafter be entitled to purchase the
number of shares of Common Stock of the Company obtained by multiplying the
Warrant Exercise Price in effect immediately prior to such adjustment by the
number of shares issuable pursuant to exercise immediately prior to such
adjustment and dividing the product thereof by the Warrant Exercise Price
resulting from such adjustment.

 

3

 

(b)           Except for (i) options, warrants or
other rights to purchase securities outstanding on the date of the issuance of
this Warrant (provided there is no adjustment to the terms of such options,
warrants or other securities on or after the date of issuance of this Warrant);
(ii) options to purchase shares of Common Stock and the issuance of awards of
Common Stock pursuant to stock option or employee stock purchase plans adopted
by the Company and shares of Common Stock issued upon the exercise of such
options granted pursuant to such plans (provided there is no adjustment to the
terms of such options, awards or other securities on or after the date of
issuance of this Warrant) (appropriately adjusted to reflect stock splits,
combinations, stock dividends, reorganizations, consolidations and similar
changes); (iii) up to four separate issues or sales by the Company during any
twelve month period, none of which shall exceed 25,000 shares of Common Stock
or securities convertible into or exercisable for the purchase of Common Stock;
and (iv) Common Stock or securities convertible into or exercisable for the
purchase of Common Stock issued in connection with any merger or acquisition of
any business or tangible or intangible assets which is approved by the
Company’s Board of Directors; if and whenever the Company shall issue or sell
any additional securities, warrants or rights or any security convertible or
exchangeable into equity, securities, warrants or rights (collectively,
“Convertible Securities”) for a consideration per share less than the Warrant
Exercise Price in effect immediately prior to the time of such issue or sale,
then, forthwith upon such issue or sale, the Warrant Exercise Price shall be
adjusted to a price determined by multiplying such Warrant Exercise Price by a
fraction, the numerator of which shall be the number of shares of Common Stock
outstanding immediately prior to such issuance plus the number of shares of Common
Stock that the aggregate consideration received by the Company for such
issuance would purchase at such Warrant Exercise Price; and the denominator of
which shall be the number of shares of such additional Common Stock and the
number of shares of Common Stock outstanding prior to such issuance.  For the purpose of the above calculation,
the number of shares of Common Stock immediately prior to such issuance shall
be calculated on a fully-diluted basis, as if this Warrant and any other
outstanding warrants, options or other rights for the purchase of shares of
stock or Convertible Securities had been fully exercised as of such date.  Except as provided in Section 5(e)
below, no further adjustments of the Warrant Exercise Price shall be made upon
the actual issuance of Common Stock or of any Convertible Securities upon the
exercise of such rights or options or upon the actual issue of such Common
Stock upon conversion or exchange of such Convertible Securities.

 

(c)           For purposes of this Section 5,
in case any shares of Common Stock or Convertible Securities or any rights or
options to purchase any such Common Stock or Convertible Securities shall be
issued or sold for cash, the consideration received therefor shall be deemed to
be the amount received by the Company therefor, without deducting therefrom any
expenses incurred or any underwriting commissions, discounts or concessions
paid or allowed by the Company in connection therewith.  In case any shares of Common Stock or
Convertible 

 

4

 

Securities or any rights or options to
purchase any such Common Stock or Convertible Securities shall be issued or
sold for a consideration other than cash, the amount of the consideration other
than cash received by the Company shall be deemed to be the fair value of such
consideration as determined by the Board of Directors of the Company, without
deducting therefrom any expenses incurred or any underwriting commissions,
discounts or concessions paid or allowed by the Company in connection
therewith.  In case any shares of Common
Stock or Convertible Securities or any rights or options to purchase such
Common Stock or Convertible Securities shall be issued in connection with any
merger or consolidation in which the Company is the surviving corporation, the
amount of consideration therefor shall be deemed to be the fair value as
determined by the Board of Directors of the Company of such portion of the
assets and business of the non-surviving corporation or corporations as
such Board shall determine to be attributable to such Common Stock, Convertible
Securities, rights or options, as the case may be.  In the event of any consolidation or merger of the Company in
which the Company is not the surviving corporation or in the event of any sale
of all or substantially all of the assets of the Company for stock or other
securities of any other corporation, the Company shall be deemed to have issued
a number of shares of its Common Stock for stock or securities of the other
corporation computed on the basis of the actual exchange ratio on which the
transaction was predicated and for a consideration equal to the fair market
value on the date of such transaction of such stock or securities of the other
corporation, and if any such calculation results in adjustment of the Warrant
Exercise Price, the determination of the number of shares of Common Stock
issuable upon exercise immediately prior to such merger, conversion or sale,
for purposes of Section 5(f) below, shall be made after giving effect to
such adjustment of the Warrant Exercise Price.

 

(d)           In case the Company shall at any time
subdivide its outstanding shares of Common Stock into a greater number of
shares, the Warrant Exercise Price in effect immediately prior to such
subdivision shall be proportionately reduced, and conversely, in case the
outstanding shares of Common Stock of the Company shall be combined into a
smaller number of shares, the Warrant Exercise Price in effect immediately
prior to such combination shall be proportionately increased.

 

(e)           If (i) the purchase price provided
for in any right or option referred to in Section 5(b), or (ii) the
additional consideration, if any, payable upon the conversion or exchange of
Convertible Securities, or (iii) the rate at which any Convertible Securities
are convertible into or exchangeable for Common Stock, shall change at any time
(other than under or by reason of provisions designed to protect against
dilution), or any Convertible Securities shall terminate, expire or cease to be
outstanding without exercise thereof, the Warrant Exercise Price then in effect
hereunder shall forthwith be increased or decreased to such Warrant Exercise
Price as would have applied had the adjustments made upon the issuance of such
rights, options or Convertible Securities been made upon the basis of
(a) the issuance of the number of shares of Common Stock theretofore
actually delivered upon the exercise of such options or rights or upon the
conversion or exchange of such Convertible Securities, and the total
consideration received therefor, and (b) the issuance at the time of such
change of any such options, rights, or Convertible Securities then still
outstanding for the consideration, if any, received by the Company therefor and
to be received on the basis of such changed price; and on the expiration of any
such option or right or the termination of any such right to convert or
exchange such Convertible Securities, the Warrant Exercise Price then in effect
hereunder shall forthwith be increased to such Warrant Exercise Price as would
have been obtained had the adjustments made upon the issuance of such rights or
options or Convertible Securities been made upon the basis of the issuance of
the shares of Common Stock theretofore actually delivered (and the total
consideration received therefor) upon the exercise of such rights or options or
upon the conversion or exchange of such Convertible Securities.  If the purchase price provided for in any

 

5

 

right or option referred to in
Section 5(b), or the rate at which any Convertible Securities referred to
in Section 5(b) are convertible into or exchangeable for Common Stock,
shall decrease at any time under or by reason of provisions with respect
thereto designed to protect against dilution, then in case of the delivery of
Common Stock upon the exercise of any such right or option or upon conversion
or exchange of any such Convertible Security, the Warrant Exercise Price then
in effect hereunder shall forthwith be decreased to such Warrant Exercise Price
as would have applied had the adjustments made upon the issuance of such right,
option or Convertible Security been made upon the basis of the issuance of (and
the total consideration received for) the shares of Common Stock delivered as
aforesaid.

 

(f)            If any capital reorganization or
reclassification of the capital stock of the Company, or consolidation or
merger of the Company with another corporation, or the sale of all or
substantially all of its assets to another corporation shall be effected in
such a way that holders of Common Stock shall be entitled to receive stock,
securities or assets with respect to or in exchange for Common Stock, then, as
a condition of such reorganization, reclassification, consolidation, merger or
sale, and except as otherwise provided herein, lawful and adequate provision
shall be made whereby the holder of this Warrant shall thereafter have the
right to receive upon the basis and upon the terms and conditions specified
herein and in lieu of the shares of the Common Stock of the Company immediately
theretofore receivable upon the exercise of this Warrant, such shares of stock,
securities or assets as may be issued or payable with respect to or in exchange
for a number of outstanding shares of such Common Stock equal to the number of
shares of such stock immediately theretofore receivable upon the exercise of
this Warrant had such reorganization, reclassification, consolidation, merger
or sale not taken place, and in any such case appropriate provision shall be
made with respect to the rights and interests of the holder of this Warrant to
the end that the provisions hereof (including without limitation provisions for
adjustments of the Warrant Exercise Price and of the number of shares
receivable upon the exercise hereof) shall thereafter be applicable, as nearly
as may be in relation to any shares of stock, securities or assets thereafter
receivable upon the exercise of this Warrant. 
The Company shall not effect any such consolidation, merger or sale,
unless prior to the consummation thereof the successor corporation (if other
than the Company) resulting from such consolidation or merger or the
corporation purchasing such assets shall assume by written instrument executed
and mailed to the registered holder of this Warrant, at the last address of
such holder appearing on the books of the Company, the obligation to deliver to
such holder such shares of stock, securities or assets as, in accordance with
the foregoing provisions, such holder may be entitled to receive.

 

(g)           Upon any adjustment of the Warrant
Exercise Price, the Company shall give written notice thereof, by first-class
mail, postage prepaid, addressed to the registered holder of this Warrant, as
shown on the books of the Company, which notice shall state the Warrant
Exercise Price resulting from such adjustment and the increase or decrease, if
any, in the number of shares purchasable at such price upon the exercise of
this Warrant, setting forth in reasonable detail the method of calculation and
the facts upon which such calculation is based.  No adjustment to the Warrant Exercise Price shall be required
unless such adjustment would require an increase or decrease of at least five
cents ($0.05); provided, however, that any adjustments which by reason of this
Section 5(g) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment; and, provided further, that
adjustment shall be

 

6

 

required and made in accordance with the
provisions of this Section 5 (other than this Section 5(g)) not later
than such time as may be required in order to preserve the tax-free nature of a
distribution to the holders of shares of Common Stock.  All calculations under this Section 5
shall be made to the nearest cent or to the nearest one-hundredth of a share,
as the case may be.  Anything in this
Section 5 to the contrary notwithstanding, the Company shall be entitled to
make such increases in the conversion rate in addition to those required by
this Section 5 as it in its discretion shall determine to be advisable in order
that any stock dividends, subdivisions of shares, distribution of rights to
purchase stock or securities, or distribution of securities convertible into or
exchangeable for stock hereafter made by the Company to its stockholders shall
not be taxable.

 

(h)  In case at any time: (i) there shall be any
capital reorganization, or reclassification of the capital stock of the
Company, or consolidation or merger of the Company with, or sale of all or
substantially all of its assets to, another corporation; or (ii) there shall be
a voluntary or involuntary dissolution, liquidation or winding up of the
Company; then, in any one or more of said cases, the Company shall give written
notice, by first-class mail, postage prepaid, addressed to the registered
holder of this Warrant at the address of such holder as shown on the books of
the Company, of the date on which (a) the books of the Company shall close
or a record shall be taken for such dividend, distribution or subscription
rights, or (b) such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation or winding up shall take place, as the case may
be.  Such notice shall also specify the
date as of which the holders of Common Stock of record shall participate in
such dividend, distribution or subscription rights, or shall be entitled to
exchange their Common Stock for securities or other property deliverable upon
such reorganization, reclassification, consolidation, merger, sale,
dissolution, liquidation, or winding up, as the case may be.  Such written notice shall be given at least
twenty (20) days prior to the action in question and not less than twenty (20)
days prior to the record date or the date on which the Company’s transfer books
are closed in respect thereto.

 

(i)            If any event occurs as to which in
the opinion of the Board of Directors of the Company the other provisions of
this Section 5 are not strictly applicable or if strictly applicable would not
fairly protect the rights of the holder of this Warrant in accordance with the
essential intent and principles of such provisions, then the Board of Directors
shall make an adjustment in the application of such provisions, in accordance
with such essential intent and principles, so as to protect such rights as
aforesaid.

 

                (j)            As used in this Section 5 the term
“Common Stock” shall mean and include the Company’s presently authorized Common
Stock and any additional Common Stock that may be authorized by due action of
the Company’s Board of Directors and shareholders entitled to vote thereon.

 

                6.             No
Voting Rights.  This Warrant shall
not entitle the Holder to any voting rights or other rights as a shareholder of
the Company.

 

7

 

                7.             Notice of Transfer of Warrant or Resale of the
Warrant Shares.

 

                (a)           The
Holder, by acceptance hereof, agrees to give written notice to the Company
before transferring this Warrant or transferring any Warrant Shares of such
Holder’s intention to do so, describing briefly the manner of any proposed
transfer.  Promptly upon receiving such
written notice, the Company shall present copies thereof to the Company’s
counsel and to counsel to the original purchaser of this Warrant.  If in the opinion of each such counsel the
proposed transfer may be effected without registration or qualification (under
any federal or state securities laws), the Company, as promptly as practicable,
shall notify the Holder of such opinion, whereupon the Holder shall be entitled
to transfer this Warrant or to dispose of Warrant Shares received upon the
previous exercise of this Warrant, all in accordance with the terms of the
notice delivered by the Holder to the Company; provided that an appropriate
legend may be endorsed on this Warrant or the certificates for such Warrant
Shares respecting restrictions upon transfer thereof necessary or advisable in
the opinion of counsel and satisfactory to the Company to prevent further
transfers which would be in violation of Section 5 of the Securities Act of
1933, as amended (the “Securities Act”) and applicable state securities laws;
and provided further that the prospective transferee or purchaser shall execute
such documents and make such representations, warranties, and agreements as may
be required solely to comply with the exemptions relied upon by the Company for
the transfer or disposition of the Warrant or Warrant Shares.

 

                (b)           If
in the opinion of either of the counsel referred to in this Section 7, the
proposed transfer or disposition of this Warrant or such Warrant Shares
described in the written notice given pursuant to this Section 7 may not be
effected without registration or qualification of this Warrant or such Warrant
Shares the Company shall promptly give written notice thereof to the Holder,
and the Holder will limit its activities in respect to such transfer or
disposition as, in the opinion of both such counsel, are permitted by law.

 

                8.             Fractional
Shares.  Fractional shares shall not
be issued upon the exercise of this Warrant, but in any case where the Holder
would, except for the provisions of this Section, be entitled under the terms
hereof to receive a fractional share, the Company shall, upon the exercise of
this Warrant for the largest number of whole shares then called for, pay a sum
in cash equal to the sum of (a) the excess, if any, of the Fair Market Value of
such fractional share over the proportional part of the Warrant Exercise Price
represented by such fractional share, plus (b) the proportional part of the
Warrant Exercise Price, if paid by the Holder, represented by such fractional
share.

 

                9.             Registration Rights.

 

                (a)           If
the Company at any time until two (2) years after complete exercise or
expiration of this Warrant proposes to register under the Securities Act
(except by a Form S-4 or Form S-8 Registration Statement or any
successor forms thereto) any of its equity securities, it will give written
notice to all Holders of this Warrant, any Warrants issued pursuant to Section
2 and/or Section 3(a) hereof, and any Warrant Shares of its intention to do so
and, on the written request of any such Holder given within twenty (20) days after
receipt of any such notice (which request shall specify the Warrant Shares
intended to be sold or disposed of by such Holder and describe the nature of
any proposed sale or other disposition thereof), the Company will use its best
efforts to cause all such Warrant Shares, the Holders of which shall have
requested the registration or

 

8

 

qualification thereof,
to be included in such registration statement proposed to be filed by the
Company; provided that:

 

                (i)            if a greater number of Warrant Shares is offered for
participation in the proposed offering than in the reasonable opinion of the
managing underwriter of the proposed offering can be accommodated without
adversely affecting the proposed offering, then the amount of Warrant Shares
proposed to be offered by such Holders for registration, as well as the number
of securities of any other selling shareholders participating in the
registration, shall be proportionately reduced to a number deemed satisfactory
by the managing underwriter

 

                (ii)           the Company may, at its sole discretion and without the
consent of any holder of the Warrant Shares, withdraw such registration
statement and abandon the proposed offering in which any such holder had
requested to participate;

 

                (iii)          if the offering to which the registration statement relates
is to be distributed by or through an underwriter, each holder of the Warrant
Shares shall agree, as a condition to the inclusion of such holder’s securities
in such registration, to sell securities held by such holder through such
underwriter on the same terms and conditions as the underwriter agrees to sell
securities on behalf of the Company and not to sell, transfer, pledge, assign
or otherwise dispose of the Warrant Shares of the Company not sold by such
holder in such offering for such period (up to 180 days after the effective
date of the registration statement) as may be required by the underwriter;

 

                (iv)          the Company shall not be obligated to include any Warrant
Shares in any such registration for any Holder who is able to sell all of the
Warrant Shares in a single transaction pursuant to Rule 144 under the
Securities Act (or any other similar rule or regulation) during the three-month
period beginning on the date such notice is received by such holder, calculated
as of the date of such receipt.

 

                (b)           Further,
on a one-time basis only, at any time until two (2) years after complete
exercise or expiration of this Warrant, upon request by the Holder or Holders
of a majority in interest of this Warrant, of any Warrants issued pursuant to
Section 2 and/or Section 3(a) hereof, and of any Warrant Shares, the Company
will promptly take all necessary steps to register or qualify, under the
Securities Act and the securities laws of such states as the Holders may
reasonably request, such number of Warrant Shares issued and to be issued upon
conversion of the Warrants requested by such Holders in their request to the
Company; provided that the Company shall not be obligated to include any
Warrant Shares in any such registration for any Holder who is able to sell all
of the Warrant Shares in a single transaction pursuant to Rule 144 under the
Securities Act (or any other similar rule or regulation) during the three-month
period beginning on the date such notice is received by such holder, calculated
as of the date of such receipt.  The
Company shall keep effective and maintain any registration, qualification,
notification, or approval specified in this Paragraph (b) for such period as
may be reasonably necessary for such Holder or Holders of such Warrant Shares
to dispose thereof and from time to time shall amend or supplement the
prospectus used in connection therewith to the extent necessary in order to
comply with applicable law.

 

9

 

                (c)           Upon
the exercise of registration rights pursuant to this Section 9, Holder agrees
to supply the Company with such information as may be required by the Company
to register or qualify the shares to be registered.

 

                (d)           With
respect to each inclusion of securities in a registration statement pursuant to
this Section 9, the Company shall bear the following fees, costs, and expenses:
all registration, filing and NASD fees, printing expenses, fees and
disbursements of counsel and accountants for the Company, fees and
disbursements of counsel for the underwriter or underwriters of such securities
(if the Company is required to bear such fees and disbursements), all internal
expenses, and legal fees and disbursements and other expenses of complying with
state securities laws of any jurisdictions in which the securities to be
offered are to be registered or qualified. 
Fees and disbursements of special counsel and accountants for the
selling Holders, underwriting discounts and commissions, and transfer taxes for
selling Holders and any other expenses relating to the sale of securities by
the selling Holders not expressly included above shall be borne by the selling
Holders.

 

                (e)           The Company hereby indemnifies each
of the Holders of this Warrant and of any Warrant Shares, and the officers and
directors, if any, who control such Holders, within the meaning of Section 15
of the Securities Act, against all losses, claims, damages, and liabilities
caused by (i) any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement or Prospectus (and as amended or
supplemented if the Company shall have furnished any amendments thereof or
supplements thereto), any Preliminary Prospectus or any state securities law
filings; (ii) any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading except insofar as such losses, claims, damages, or liabilities are
caused by any untrue statement or omission contained in information furnished
in writing to the Company by such Holder expressly for use therein; and each
such Holder by its acceptance hereof severally agrees that it will indemnify
and hold harmless the Company, each of its officers who signs such Registration
Statement, each underwriter of the Common Stock so registered, and each person,
if any, who controls the Company or such underwriter, within the meaning of
Section 15 of the Securities Act, with respect to losses, claims, damages, or
liabilities which are caused by any untrue statement or omission contained in
information furnished in writing to the Company by such Holder expressly for
use therein.

 

                10.           Fair Market Value.  Fair Market Value of a share of Common Stock
as of a particular date (the “Determination Date”) shall mean:

 

                (a)           If the Company’s Common Stock is traded on an exchange or
is listed on the Nasdaq National Market or the Nasdaq SmallCap Market, then the
average closing or last sale prices, respectively, reported for the ten (10)
business days immediately preceding the Determination Date; or

 

                (b)           If the Company’s Common Stock is not traded on an exchange
or listed on the Nasdaq National Market or the Nasdaq SmallCap Market but is
listed on the OTC Bulletin Board, the National Quotation Bureau, or any
comparable reporting service, then

 

10

 

the
average of the closing bid and ask prices reported for the ten (10) business
days immediately preceding the Determination Date; or

 

                (c)           If
the Company’s Common Stock is not listed on an exchange, on the Nasdaq National
Market, the Nasdaq SmallCap Market, the OTC Bulletin Board, the National
Quotation Bureau, or any comparable reporting service, then the fair market
value as determined in good faith by the Board of Directors of the Company.

 

[signature page follows]

 

11

 

                IN WITNESS WHEREOF, MedicalCV, Inc. has caused this
Warrant to be signed by its duly authorized officer and this Warrant to be
dated November 13, 2003.

 

 

	
   

  	
  MEDICALCV, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By 

  	
  /s/ Jules L. Fisher

  
	
   

  	
   

  	
  Jules L. Fisher

  
	
   

  	
   

  	
  Chief Financial Officer

  

 

12

 

NOTICE OF EXERCISE OF WARRANT

 

(To be signed upon the exercise of the Warrant)

 

                The
undersigned hereby irrevocably elects to exercise the attached Warrant to
purchase, for
cash,                                 of
the shares of Common Stock issuable upon the exercise of such Warrant, and
requests that certificates for the shares of Common Stock (together with a new
Warrant to purchase the number of shares, if any, with respect to which this
Warrant is not exercised) be issued in the name and address set forth below.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Name)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Address)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Social
  Security or Tax Ident. No.)

  	
   

  

 

	
  *

  	
  The
  signature on the Notice of Exercise of Warrant must correspond to the name as
  written upon the face of the Warrant in every particular without alteration
  or enlargement or any change whatsoever. 
  When signing on behalf of a corporation, partnership, trust or other
  entity, PLEASE indicate your position(s) and title(s) with such entity.

  

 

13

 

CONVERSION NOTICE

 

(To be signed upon exercise of Warrant pursuant to Sections 1(b)
through 1(d))

 

                The
undersigned hereby irrevocably elects to exercise the Conversion Right provided
in Sections 1(b) through 1(d) of the
within Warrant for, and to acquire thereunder,
                 
shares of Common Stock.  If said number
of shares shall not be all the shares purchasable under the within Warrant, a
new Warrant is to be issued in the name of said undersigned for the balance
remaining of the shares purchasable thereunder rounded up to the next higher
number of shares.

 

                Please
issue a certificate or certificates for the shares of Common Stock in the name
set forth below.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Name)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Address)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Social
  Security or Tax Ident. No.)

  	
   

  

 

	
  *

  	
  The
  signature on the Conversion Notice must correspond to the name as written
  upon the face of the Warrant in every particular without alteration or
  enlargement or any change whatsoever. 
  When signing on behalf of a corporation, partnership, trust or other
  entity, PLEASE indicate your position(s) and title(s) with such entity.

  

 

14

 

ASSIGNMENT OF WARRANT

 

(To be signed only upon authorized transfer of the Warrant)

 

                FOR
VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto
                          
the right to purchase                        
shares of Common Stock of MedicalCV, Inc., to which the within Warrant relates
and appoints                           ,
as attorney-in-fact, to transfer said right on the books of
MedicalCV, Inc. with full power of substitution in the premises.  By accepting such transfer, the transferee
has agreed to be bound in all respects by the terms and conditions of the
within Warrant.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Name)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Address)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Social
  Security or Tax Ident. No.)

  	
   

  

 

 

	
  *

  	
  The
  signature on the Assignment of Warrant must correspond to the name as written
  upon the face of the Warrant in every particular without alteration or
  enlargement or any change whatsoever. 
  When signing on behalf of a corporation, partnership, trust or other
  entity, PLEASE indicate your positions) and title(s) with such entity.Exhibit 10.14

                               EXCHANGE AGREEMENT

         This Exchange Agreement (the "Agreement"), dated as of January 12, 2004
is by and  among  Lifestream  Technologies,  Inc.,  a  Nevada  corporation  (the
"Company"),  and Palisades Master Fund L.P., Crescent  International Ltd., Alpha
Capital  AG,  Ellis   International   Ltd.,   Bristol   Investment  Fund,  Ltd.,
Congregation  Mishkan Sholom,  Gryphon Master Fund LP and Lucrative  Investments
(each the "Holder" and collectively referred to as the "Holders").

         WHEREAS,  each Holder holds an 8% Convertible  Debenture of the Company
due on  September  6, 2006 (the  "Debentures"),  which  Debentures  were  issued
pursuant to that certain Securities Purchase Agreement, dated September 10, 2003
(the "Purchase Agreement").

         WHEREAS,  each Holder desires to exchange (the  "Exchange")  all of the
principal  amount of the Debentures held by it, plus accrued but unpaid interest
thereon through the date hereof,  for shares of the Company's  common stock, par
value $0.001 per share (the "Common  Stock")  based on an exchange rate equal to
$0.09 per share (the "Exchange Common Stock").

         WHEREAS, to the extent the Exchange causes any Holder to hold more than
4.9% of issued and outstanding  Common Stock on the date of the Exchange,  then,
to the extent the Exchange  shall cause such  Holder's  beneficial  ownership to
exceed 4.9%,  such portion of the Exchange  resulting in such excess  beneficial
ownership of such Holder shall be delayed for periods of 75 calendar  days until
such Holder's Debentures are no longer outstanding.

         WHEREAS, the shares of Common Stock underlying the Debentures have been
registered pursuant to a registration statement with the Securities and Exchange
Commission (the  "Commission") and may be issued free of restrictive  legend and
therefore,  in reliance on Section 3(a)(9) of the Securities Act as an exemption
from the registration requirements of Section 5 of such Act, the Exchange Common
Stock, at the Exchange, shall be issued free of legend.

         NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in
this Agreement, and for good and valuable consideration the receipt and adequacy
of which are hereby acknowledged, the Company and each Holder agree as follows

                                    ARTICLE 1
                                   DEFINITIONS

         Section 1.  Definitions.  In addition to the terms defined elsewhere in
this Agreement,  the following terms have the meanings indicated in this
Section 1:

         "Person" means an individual or corporation, partnership, trust,
incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof)
or other entity of any kind.

         "Securities Act" means the Securities Act of 1933, as amended.

<PAGE>

                                   ARTICLE II
                             EXCHANGE OF SECURITIES

         Section 2.1. Authorization and Issuance of Exchange Common Stock. The
Company has duly authorized (i) the issuance of the Exchange Common Stock, and
(ii) the Company's entering into the Exchange Agreement. The Company has a
sufficient number of shares of common stock authorized in order to issue the
Exchange Common Stock. The shares underlying the Debentures have been registered
for resale by the Holders on a Form SB-2, File No. 333-111053, which
registration statement (the "Registration Statement") has been declared
effective by the Commission, has remained effective since such date and is
effective on the date hereof.

         Section 2.2.  Exchange.  Subject to the terms and  conditions set forth
herein,  the Company  agrees to issue  Exchange  Common  Stock to each Holder in
exchange  for  such  Holder's  delivery  of their  entire  principal  amount  of
Debentures to the Company for cancellation.  Each Holder shall receive, upon the
Exchange,  a number of shares  of  Exchange  Common  Stock  equal to the  entire
principal  amount of  Debentures of such Holder  outstanding  on the date of the
Exchange,  plus all accrued but unpaid interest thereon through the date hereof,
divided by $0.09. Notwithstanding anything herein to the contrary, to the extent
the  Exchange  will  cause any  Holder  to hold  more  than  4.9% of issued  and
outstanding  Common Stock on the date of the  Exchange,  then, to the extent the
Exchange  shall cause such Holder's  beneficial  ownership to exceed 4.9%,  such
portion of the Exchange  resulting in such excess  beneficial  ownership of such
Holder shall be delayed for consecutive  periods of 75 calendar days so as never
to cause the Holder to exceed  beneficial  ownership of the Common Stock of 4.9%
until such Holder's Debentures are no longer outstanding.  Subsequent  Exchanges
pursuant to the previous sentence shall otherwise occur pursuant to the terms of
Section 2.3.

         Section 2.3. Closing. On the date hereof, the Company hereby agrees to
deliver to the Holders and the Holders hereby agree to accept the Exchange
Common Stock, against delivery of the entire principal amount of each Holder's
respective Debenture to the Company for cancellation. On the date hereof, the
Company shall deliver to each Holder a certificate representing its respective
Exchange Common Stock via overnight delivery. The Exchange Common Stock must be
unlegended and free of any resale restrictions other than the Holder's
obligation to deliver a prospectus upon sale. Within 3 Trading Days of receipt
of the Exchange Common Stock in proper form, the Holders shall surrender to the
Company their respective Debentures; provided, however, if, pursuant to Section
2.2 the Holder is unable to effect an exchange of all of its principal amount of
Debentures, to effect the Exchange hereunder, the Holder shall not be required
to physically surrender Debentures to the Company. An Exchange hereunder shall
have the effect of lowering the outstanding principal amount of this Debenture
in an amount equal to the applicable Exchange and the Holder and the Company
shall maintain records showing the principal amount exchanged.

         Section 2.4. Prospectus Supplement. Within 2 Trading Days of the date
hereof, pursuant to Section 424(b)(3) of the Securities Act, the Company agrees
to file a prospectus supplement on Form 424(b)(3) to the Registration Statement
disclosing the material terms of this Agreement.

                                       2
<PAGE>

         Section 2.5. Condition to Exchange. The Exchange shall not be effective
unless all Holders exchange all principal amounts of their Debentures hereunder.

                                   ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

         Section 3.1. Representations and Warranties of the Company. The Company
hereby makes the representations and warranties set forth below to the Holders
that as of the date of its execution of this Agreement:

                  (a) Authorization, etc. The execution, delivery and
         performance of this Agreement, the consummation of the transactions
         contemplated hereby and thereby have been duly authorized by all
         necessary corporate action on the part of the Company, and this
         Agreement constitutes the legal, valid and binding obligation of the
         Company enforceable against the Company in accordance with its terms.

                  (b) Capital Stock. Upon the issuance of the Exchange Common
         Stock under this Agreement, the total number of shares of capital stock
         which the Company will have authority to issue under the Company's
         articles/certificate of incorporation is a maximum of 250,000,000
         shares. Immediately after the issuance of the Exchange Common Stock
         under this Agreement, 141,200,316 shares of Common Stock will be issued
         and outstanding.

                  (c) Compliance with Laws, Other Instruments of the Company,
         etc. None of the execution and delivery of this Agreement, or the issue
         and sale of the Exchange Common Stock or the consummation of the
         transactions herein or therein contemplated or compliance with the
         terms and provisions hereof and thereof will conflict with or result in
         a breach of, or require any consent under, the articles/certificate of
         incorporation or any applicable law or regulation, or any order, writ,
         injunction or decree of any court or governmental authority or agency
         (other than filings which will be made by the Company as may be
         required by applicable state securities laws), or any agreement or
         instrument to which the Company is a party or by which it is bound or
         to which it is subject, or constitute a default under any such
         agreement or instrument, or result in the creation or imposition of any
         lien upon any of the revenues or assets of the Company pursuant to the
         terms of any such agreement or instrument.

                  (d) Governmental Consent. Other than filings required by any
         applicable state securities laws which shall be made by the Company,
         neither the nature of the Company or of any of its respective
         businesses or properties, nor any relationship between the Company and
         any other Person, nor (except as expressly provided for in this
         Agreement) any circumstance in connection with the offer, issue or sale
         of the Exchange Common Stock is such as to require the consent,
         approval or authorization of, or filing, registration or qualification
         with, any governmental authority on the part of the Company or the as a
         condition to the execution and delivery of this Agreement or any other
         document required in connection with the authorization, offer, sale
         and/or issuance of the Exchange as set forth herein.

                                       3
<PAGE>

                  (e) No Commission. The Company has not paid, nor has it
         accepted payment, directly or indirectly, commission or other
         remuneration for the solicitation of the Exchange.

                  (f) Registration of Debentures. The shares of Common Stock
         underlying the Debentures have been registered for resale by the
         Holders under the Securities Act. Based upon consummation of the
         Exchange as set forth herein, the Exchange Common Stock will not be
         subject to restrictions on resale other than the obligations of the
         Holder's to deliver a prospectus.

                  (g) Compliance with Exchange Act. The Company has timely filed
         all reports required to be filed by it under the Securities Exchange
         Act of 1934, as amended (and the rules and regulations adopted by the
         Commission thereunder) during the Company's current fiscal year.

         Section 3.2. Representations and Warranties of the Holders. Each
Holder, severally and not jointly with the other Holders, hereby makes the
representations and warranties set forth below to the Company that as of the
date of its execution of this Agreement:

                  (a) General Representations and Covenants.  (1) This Agreement
         is made by the Company with such Holder in reliance  upon such Holder's
         representations  and covenants  made in this Section 3.2, which by such
         Holder's execution of this Agreement,  it hereby confirms; and (2) Each
         Holder is aware that the sale  provided for in this  Agreement  and the
         issuance of the Exchange  Common Stock  hereunder is exempt pursuant to
         Section 3(a)(9) of the Securities Act, and that the Company's  reliance
         on such  exemption is predicated on such Holder's  representations  set
         forth herein.

                  (b) Ownership of Debentures. Such Holder is the sole legal and
         beneficial  owners of the  Debentures  to be  exchanged  by such Holder
         hereunder and is conveying the Debentures to the Company free and clear
         of any liens, claims,  interests,  charges or other encumbrances.  Such
         Holder has neither previously sold, assigned, conveyed,  transferred or
         otherwise  disposed  of,  in  whole or in part,  the  Debentures  to be
         exchanged by such Holder  hereunder,  nor has such Holder  entered into
         any agreement to sell,  assign,  convey,  transfer or otherwise dispose
         of, in whole or in part, such Debentures.

                  (c) Due  Authorization.  Such Holder  represents  and warrants
         that (i) the  execution  and  delivery of this  Agreement by it and the
         consummation by it of the  transactions  contemplated  hereby have been
         duly  authorized  by all  necessary  action on its behalf and (ii) this
         Agreement  has been duly  executed  and  delivered  by such  Holder and
         constitutes   the  valid  and  binding   obligation   of  such  Holder,
         enforceable against it in accordance with its terms.

                                       4
<PAGE>

                                   ARTICLE IV
                                  MISCELLANEOUS

         Section 4.1.  Notices.  Any and all notices or other  communications or
deliveries  required  or  permitted  to be provided  hereunder  shall be made in
accordance with the provisions of the Purchase Agreement.

         Section 4.2. Survival. All warranties and representations (as of the
date such warranties and representations were made) made herein or in any
certificate or other instrument delivered by it or on its behalf under this
Agreement shall be considered to have been relied upon by the parties hereto and
shall survive the issuance of the Exchange Common Stock. This Agreement shall
inure to the benefit of and be binding upon the successors and permitted assigns
of each of the parties; provided however that no party may assign this Agreement
or the obligations and rights of such party hereunder without the prior written
consent of the other parties hereto.

         Section 4.3. Execution. This Agreement may be executed in two or more
counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart. In the event that any signature is
delivered by facsimile transmission, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile signature page
were an original thereof.

         Section 4.4. Severability. If any provision of this Agreement is held
to be invalid or unenforceable in any respect, the validity and enforceability
of the remaining terms and provisions of this Agreement shall not in any way be
affected or impaired thereby and the parties will attempt to agree upon a valid
and enforceable provision that is a reasonable substitute therefor, and upon so
agreeing, shall incorporate such substitute provision in this Agreement.

         Section 4.5. Governing Law. All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be determined
pursuant to the Governing Law provision of the Purchase Agreement.

         Section 4.6. Entire Agreement. The Agreement, together with the
exhibits and schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and schedules.

         Section 4.7. Construction. The headings herein are for convenience
only, do not constitute a part of this Agreement and shall not be deemed to
limit or affect any of the provisions hereof. The language used in this
Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against
any party.

                                       5
<PAGE>

         Section 4.8. Independent Nature of Holders' Obligations and Rights. The
obligations of each Holder under this Agreement are several and not joint with
the obligations of any other Holder, and no Holder shall be responsible in any
way for the performance of the obligations of any other Holder under this
Agreement. Nothing contained herein, and no action taken by any Holder pursuant
thereto, shall be deemed to constitute the Holders as a partnership, an
association, a joint venture or any other kind of entity, or create a
presumption that the Holders are in any way acting in concert or as a group with
respect to such obligations or the transactions contemplated by this Agreement.
Each Holder shall be entitled to independently protect and enforce its rights,
including without limitation, the rights arising out of this Agreement, and it
shall not be necessary for any other Holder to be joined as an additional party
in any proceeding for such purpose.

         Section 4.9 Equal Treatment of Holders. No consideration shall be
offered or paid to any person to amend or consent to a waiver or modification of
any provision of the Exchange unless the same consideration is also offered to
all of the parties to this Agreement. For clarification purposes, this provision
constitutes a separate right granted to each Holder by the Company and
negotiated separately by each Holder, and is intended to treat for the Company
the Holders as a class and shall not in any way be construed as the Holders
acting in concert or as a group with respect to the purchase, disposition or
voting of securities or otherwise.

                             ***********************

                                       6
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized signatories as of the date first
indicated above.

                                  LIFESTREAM TECHNOLOGIES, INC.

                                   By:
                                       ---------------------------------
                                            Name:
                                            Title:

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                       SIGNATURE PAGE FOR HOLDERS FOLLOW]

                                       7
<PAGE>

                             HOLDER'S SIGNATURE PAGE

         IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
duly executed by their respective authorized signatories as of the date first
indicated above.

Name of Holder:  PALISADES MASTER FUND, LP
                ----------------------------------------------------------------

Signature of Authorized Signatory of Holder:
                                            ------------------------------------
Name of Authorized Signatory:
                             ---------------------------------------------------
Title of Authorized Signatory:
                              --------------------------------------------------
DTC Instructions of Holder:
                           -----------------------------------------------------

                                       8
<PAGE>

                             HOLDER'S SIGNATURE PAGE

         IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
duly executed by their respective authorized signatories as of the date first
indicated above.

Name of Holder:  CRESCENT INTERNATIONAL LTD.
                ----------------------------------------------------------------

Signature of Authorized Signatory of Holder:
                                            ------------------------------------
Name of Authorized Signatory:
                             ---------------------------------------------------
Title of Authorized Signatory:
                              --------------------------------------------------
DTC Instructions of Holder:
                           -----------------------------------------------------

                                       9
<PAGE>

                             HOLDER'S SIGNATURE PAGE

         IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
duly executed by their respective authorized signatories as of the date first
indicated above.

Name of Holder:  ALPHA CAPITAL AG
                ----------------------------------------------------------------

Signature of Authorized Signatory of Holder:
                                            ------------------------------------
Name of Authorized Signatory:
                             ---------------------------------------------------
Title of Authorized Signatory:
                              --------------------------------------------------
DTC Instructions of Holder:
                           -----------------------------------------------------

                                       10
<PAGE>

                             HOLDER'S SIGNATURE PAGE

         IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
duly executed by their respective authorized signatories as of the date first
indicated above.

Name of Holder:  ELLIS INTERNATIONAL
                ----------------------------------------------------------------

Signature of Authorized Signatory of Holder:
                                            ------------------------------------
Name of Authorized Signatory:
                             ---------------------------------------------------
Title of Authorized Signatory:
                              --------------------------------------------------
DTC Instructions of Holder:
                           -----------------------------------------------------

                                       11
<PAGE>

                             HOLDER'S SIGNATURE PAGE

         IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
duly executed by their respective authorized signatories as of the date first
indicated above.

Name of Holder:  BRISTOL INVESTMENT FUND, LTD
                ----------------------------------------------------------------

Signature of Authorized Signatory of Holder:
                                            ------------------------------------
Name of Authorized Signatory:
                             ---------------------------------------------------
Title of Authorized Signatory:
                              --------------------------------------------------
DTC Instructions of Holder:
                           -----------------------------------------------------

                                       12
<PAGE>

                             HOLDER'S SIGNATURE PAGE

         IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
duly executed by their respective authorized signatories as of the date first
indicated above.

Name of Holder:  CONGREGATION MISHKAN SHOLOM
                ----------------------------------------------------------------

Signature of Authorized Signatory of Holder:
                                            ------------------------------------
Name of Authorized Signatory:
                             ---------------------------------------------------
Title of Authorized Signatory:
                              --------------------------------------------------
DTC Instructions of Holder:
                           -----------------------------------------------------

                                       13
<PAGE>

                             HOLDER'S SIGNATURE PAGE

         IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
duly executed by their respective authorized signatories as of the date first
indicated above.

Name of Holder:  GRYPHON MASTER FUND, LP
                ----------------------------------------------------------------

Signature of Authorized Signatory of Holder:
                                            ------------------------------------
Name of Authorized Signatory:
                             ---------------------------------------------------
Title of Authorized Signatory:
                              --------------------------------------------------
DTC Instructions of Holder:
                           -----------------------------------------------------

                                       14
<PAGE>

                             HOLDER'S SIGNATURE PAGE

         IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
duly executed by their respective authorized signatories as of the date first
indicated above.

Name of Holder:  LUCRATIVE INVESTMENTS
                ----------------------------------------------------------------

Signature of Authorized Signatory of Holder:
                                            ------------------------------------
Name of Authorized Signatory:
                             ---------------------------------------------------
Title of Authorized Signatory:
                              --------------------------------------------------
DTC Instructions of Holder:
                           -----------------------------------------------------

                                       15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]