Document:

QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 4.4    
    

 
 

FOR ACCREDITED INVESTORS ONLY    
    

 
 

MEDICOR LTD.
  FORM OF CONVERTIBLE DEBENTURE AGREEMENT    
    

        THIS INVESTMENT AGREEMENT (the "Agreement") is by and between
                        (the "Holder") and MEDICOR LTD.,
 a Delaware Corporation (the  "Company"). 

 
 

RECITALS:    
    

WHEREAS:  

        A.    The Holder agrees to purchase one of the Company's Convertible Debenture, convertible, at the Holder's option on the first
anniversary of the date of original issuance thereof and thereafter at the 18-month, 24-month, 30-month and 36-month anniversary of the issuance date,
into the Company's common stock, $.001 par value per share (the "Common Stock") on the terms set forth below and in the Convertible Debenture; and 

        B.    The Company and the Holder wish to enter into this Agreement to reflect the terms of the investment. 

 
 

AGREEMENT    
    

        NOW, THEREFORE, intending to be legally bound, the parties hereto agree as follows: 

        1.    INVESTMENT. The Holder hereby agrees to
purchase                        
DOLLARS ($                        USD) in principal amount of Convertible
Debentures, convertible into shares of the Common Stock of the Company (the  "Debenture Shares"), at the Holder's option on the first anniversary date of original issuance thereof and thereafter at the
18-month,
24-month, 30-month and 36-month anniversary of the issuance date (each a "Conversion Date"), at a price per share
equal to the greater of: a) Five Dollars ($5.00) per share; or b) Seventy-Five Percent (75%) of the daily weighted average trading price per share of the Company's Common
Stock over a period of Twenty (20) trading days prior to the Conversion Date (the "Conversion Price") as noticed to the Company in writing by the
Holder not less than ten (10) business days prior to the Conversion Date. 

        2.    HOLDER'S OPTIONS AT CONVERSION DATES. In the sole discretion of the
Holder, not more than twenty (20) business days nor less than ten (10) business days prior to the first anniversary of the date of original issuance of the Convertible Debenture or
thereafter at the 18-month, 24-month, 30-month and 36-month anniversary of the issuance date, the Holder may elect to: (a) have the entire
outstanding principal amount of the Convertible Debenture repaid to the Holder, along with any accrued and unpaid interest thereon; (b) covert the entire outstanding principal amount of the
Convertible Debenture into the Debenture Shares at the Conversion Price; or (c) continue to hold the Convertible Debenture until the third anniversary of the date of original issuance thereof
(the "Maturity Date"). If the Holder does not so notify the Company prior to the first anniversary of the issuance date or thereafter at the
18-month, 24-month, 30-month and 36-month anniversary of the issuance date, the Company will continue to record the Convertible Debenture as
outstanding. In the sole discretion of the Holder, not more than twenty (20) business days nor less than ten (10) business days prior to the Maturity Date as defined above, the Holder
may elect to: (a) have the entire outstanding principal amount of the Convertible Debenture repaid to the Holder, along with any accrued and unpaid interest thereon; or (b) convert the
entire outstanding principal amount of the Convertible Debenture into the Debenture Shares at the Conversion Price on the Maturity Date. If the Holder does not so notify the 

1

 

Company
prior to the Maturity Date, the Convertible Debenture will automatically convert into the Debenture Shares at the Conversion Price and, upon such conversion, any and all obligations of the
Company to the Holder in respect of the Convertible Debenture shall be satisfied. 

        3.    INTEREST. The Company agrees to pay interest to the Holder on the
outstanding principal amount of the Convertible Debenture at a rate of Eight Percent (8%) per annum for as long as the Convertible Debenture is outstanding. Interest shall be paid to the Holder by the
Company on a quarterly basis, payable within thirty (30) days from the end of each calendar quarter. If the Holder converts the Convertible Debenture into the Debenture Shares or elects to have
the outstanding principal amount of the Convertible Debenture repaid to the Holder as described in Section 2 above, the Company will pay any accrued and unpaid interest due the Holder and no
further interest past the Conversion Date will be due to the Holder by the Company. 

        4.    COMPANY'S REPRESENTATIONS AND WARRANTIES. The Company hereby makes the
following representations and warranties to the Holder: 

        4.1    Organization, Good Standing and Qualification. The Company is a
corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all necessary corporate powers to own its properties, and to carry on its business as
now owned and operated by it, and is qualified to do intrastate business, and is in good standing in the State of Delaware and in all other jurisdictions in which the nature of the Company's business,
or of its properties, makes such qualification necessary, except jurisdictions where failure to so qualify would not have a material adverse effect on the business of the Company. 

        4.2    Capital Structure. The authorized number of shares of the Company is One
Hundred Million (100,000,000) shares of Common Stock. In addition, the Company has authorized Twenty Million (20,000,000) shares of Preferred Stock. The Debenture Shares to be issued to the Holder
shall be validly issued, fully paid and non-assessable, and will be issued pursuant to applicable exemptions from the registration provisions of all federal and state securities laws. 

        4.3    Compliance with Laws.  

         4.3.1 To the best of the Company's knowledge, the Company has complied in all material respects with, and the Company has not been cited for any
violation of, federal, state or local environmental protection laws and/or regulations, including specifically, without limitation, all laws and regulations related to the sale of its products by the
Company to state or local or federal government purchasers or contracts to those governmental agencies, and the Company has not received notice of any past, present or future events which would
reasonably be expected to give rise to any liability for failure to comply with any federal, state, or local laws or regulations now in force relating to the protection of the environment. 

        4.3.2 To the best of the Company's knowledge, the Company is not, and has not received notice from any governmental agency
that it is currently in violation of any other applicable federal, state or local statute, law or regulation (including, without limitation, any applicable building, or other law, ordinance, or
regulation) affecting its assets or the operation of its business, except for possible instances of non-compliance which individually would not be expected to have a material adverse
effect on the business of the Company. 

        4.3.3 To the best of the Company's knowledge, the Company and all of the products which it manufactures, marshals, sells,
licenses, imports or distributes have been at all times and continue to be in substantial compliance with the Food, Drug and Cosmetic Act and all regulations promulgated thereunder by the U.S. Food
and Drug Administration. 

        4.3.4 Subject to the truth and accuracy of the representations of the Holder set forth in Section 6 hereof, the offer,
sale and issuance of the Convertible Debenture and the Debenture 

2

 

Shares
are or will be exempt from the registration requirements of the Securities Act of 1933, as amended (the "Act"). The Company has complied with all
applicable state "blue sky" or securities laws in connection with the offer, sale and issuance of this Convertible Debenture as contemplated by this Agreement. 

        4.4    Full and Correct Disclosure. No representation or warranty made by the
Company contained in this Agreement or other information provided, and to be provided by the Company in any other writing furnished pursuant hereto contains or will contain an untrue statement of a
material fact or fails or will fail to state a material fact required to be stated herein or therein necessary to make the statements and facts contained herein or therein, in light of the
circumstances which they were or are made, not false nor misleading. 

        4.5    Non-Contravention. The execution and delivery of the
Agreement by the Company, and the consummations of the transactions contemplated hereby, does not conflict with any material terms or provisions of any contract, agreement or indenture to which the
Company is a party, or by which the Company or any of its properties is subject, or the Company's Certificate of Incorporation and By-Laws, each as amended to date. 

        4.6    Authority; Binding Effect. The Company has obtained all necessary
authorizations and approvals from its Board of Directors and stockholders, if any, required for the execution and delivery of this Agreement and the consummations of the transactions contemplated
hereby. This Agreement has been duly executed and delivered by the Company and constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with
its terms. 

        5.    COVENANTS OF THE COMPANY. The Company hereby makes the following
covenants, intending to be bound hereby. 

        5.1    The Company agrees to make and keep public information regarding the Company available as those terms are understood and
defined in Rule 144 promulgated under the Act ("Rule 144"), at all times from and after ninety (90) days following the date of the
Company's initial public offering or the Company's Common Stock becoming publicly traded, and to file with the SEC in a timely manner all reports and other documents required of the Company under the
Act and the Securities Exchange Act of 1934 (the "1934 Act"), at any time after it has become subject to such reporting requirements. 

        5.2    The Company shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, for
the purpose of complying with the terms of Section 1 of this Agreement, such number of its duly authorized shares of Common Stock as shall be sufficient to issue the Debenture Shares to the
Holder pursuant to, and in accordance with, the terms of Section 1 hereof. If at any time the number of authorized but unissued shares of Common Stock shall not be sufficient for the Company to
issue additional shares of Common Stock to the Holder pursuant to, and in accordance with, the terms of Section 1 hereof, the Company will forthwith take such corporate action as may be
necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes. 

        6.    HOLDER'S REPRESENTATIONS, WARRANTS AND COVENANTS. The Holder hereby makes
the following representations, warrants and covenants to the Company: 

        6.1    The Holder represents and warrants that the Holder is an "accredited investor" within the meaning of Regulation D
promulgated under the Act, and as more specifically described in Exhibit A hereto. 

        6.2    The Holder is, by reason of the Holder's business or financial experience, or by reason of the business or financial
experience of the Holder's professional adviser, who is not affiliated with and is not compensated directly or indirectly by the Company, or any affiliate or selling agent of the 

3

 

Company,
is capable of evaluating the merits and risks of the purchase of the Convertible Debenture and the Debenture Shares and of protecting the Holder's own interests in connection with the
investment contemplated herein. 

        6.3    The Holder acknowledges that it has received and carefully reviewed this Agreement and the form of Convertible Debenture
attached hereto as Exhibit "B." This Agreement and the form of Convertible Debenture are hereinafter collectively referred to as the "Materials," and
the Holder further acknowledges that it has read all of the disclosures set forth in the Materials. The Holder has had the opportunity to ask questions and receive answers from the Company concerning
the terms and conditions of this Agreement. The Holder recognizes that the Company has a limited operating history and is a speculative venture, and that if the Holder invests therein, the Holder may
lose the entire amount of its investment. The Holder acknowledges that its representatives and the Holder have been provided with the opportunity to obtain any additional information necessary to
verify the accuracy of all information provided to the Holder in the Materials. 

        6.4    In deciding whether to acquire the Convertible Debenture or the Debenture Shares, the Holder has relied or will rely
exclusively upon consultations with its legal, financial and tax advisers with respect to the nature of the investment and the information provided by the Company in the Materials and this Agreement.
None of the Holder's advisors are affiliated with, or compensated directly or indirectly by, the Company or any affiliate or selling agent of the Company. 

        6.5    The Holder understands that neither the Securities and Exchange Commission (the  "SEC"), nor any other governmental agency having jurisdiction over the sale and issuance of the Convertible Debenture or the Debenture Shares will make
any finding or determination relating to the appropriateness for investment of the Convertible Debenture or the Debenture Shares and that none of them has or will recommend or endorse the Convertible
Debenture or the Debenture Shares. 

        6.6    The Holder represents that the Convertible Debenture is purchased and the Debenture Shares will be purchased for its own
account for investment and is not being purchased and will not be purchased with a view to the resale or distribution thereof, and that the Holder does not have and will not have a present intention
of distributing or reselling any portion of the Convertible Debenture or the Debenture Shares. The Holder acknowledges that it has been informed by the Company that the
Convertible Debenture, and the Debenture Shares to be issued and delivered, have not been registered under the Act and that the Convertible Debenture and Debenture Shares must be held indefinitely
unless subsequently registered under the Act or an exemption for such registration is available. The Holder acknowledges that, other than as may be set forth in the Materials, the Company has no
obligation to register the Convertible Debenture or the Debenture Shares under the Act. The Holder also acknowledges that it is fully aware of the restrictions on disposing of the Convertible
Debenture and the Debenture Shares resulting from the provisions of the Act and the rules and regulations of the SEC thereunder. 

        6.7    The Holder understands that the Convertible Debenture is not and the Debenture Shares upon issuance will not be freely
transferable. 

        6.8    The Holder recognizes that there is not a public market for the Convertible Debenture and that there is no assurance that
there will be such a market for these securities. The Holder understands that it may have to hold the Debenture Shares indefinitely due to the lack of such a market. 

        6.9    The Holder recognizes that no escrow or minimum amount has been established for the sale of the Convertible Debenture and
that the proceeds will be immediately received by the Company. The Holder recognizes that the Company's inability to raise such funds, or additional funds, promptly may significantly and adversely
affect the Company's ability to achieve its financial objectives, although the Company believes it could maintain its current operations. 

4

 

        6.10    The Holder represents that it possesses such knowledge and experience in business and financial matters that it is
capable of evaluating the merits and risks of its investment in the Convertible Debenture and the Debenture Shares. The Holder also has the degree of sophistication in these matters necessary to
understand (1) the financial and operational information provided to it relating to the Company, and (2) the potential risk of losing all or a portion of its investment in the
Convertible Debenture and the Debenture Shares. The Holder represents that it is able to bear the economic risk of a loss of its investment in the securities that it has funds adequate to meet
personal needs and contingencies and that it has no need for liquidity of the investment in the Convertible Debenture or the Debenture Shares. 

        6.11    The Holder recognizes that "stop transfer" instructions will be issued against the Convertible Debenture and the
Debenture Shares and that the following legend will be placed on the Convertible Debenture and the Debenture Shares issued: 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THE SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT. 

        6.12    The Holder hereby agrees that commencing thirty (30) trading days prior to any Conversion Date as defined above
and ending on the Conversion Date, Holder and any representative under Holder's direction, will refrain from any direct or indirect trading in the Company's Common Stock, including trading of any
options or derivative securities and lending of any Common Stock or related derivative securities, in order that the Conversion Price not be influenced in any way by the Holder. 

        7.    TRANSFER. With respect to any offer, sale or other disposition of the
Convertible Debenture or the Debenture Shares, the Holder will give written notice to the Company prior thereto, describing briefly the manner thereof, together with a written opinion of such Holder's
counsel, to the effect that such offer, sale or other distribution may be effected without registration or qualification (under any federal or state law then in effect). Promptly upon receiving such
written notice, the Company shall notify such Holder whether such Holder may sell or otherwise dispose of the Convertible Debenture or the Debenture Shares, all in accordance with the terms of the
notice delivered to the Company. 

        8.    CERTAIN CORPORATE TRANSACTIONS. Nothing in this Agreement shall in any way
prohibit the Company from merging with or consolidating into another corporation, or from selling or transferring all or substantially all of its assets, or from distributing all or substantially all
of its assets to its stockholders in liquidation, or from dissolving and terminating its corporate existence, and, in any such event (other than a merger in which the Company is the surviving
corporation and under the terms of which the shares of Common Stock outstanding immediately prior to the merger remain outstanding and unchanged), Holder shall have the right exercisable not less than
ten (10) business days prior to the completion of such merger, consolidation, sale or transfer of assets, liquidation or dissolution, to elect to: (a) have the outstanding principal
amount of the Convertible Debenture repaid to Holder; or (b) have the entire outstanding principal amount of the Convertible Debenture converted into the Debenture Shares at a price equal to
Seventy Five Percent (75%) of the daily weighted average trading price per share of the Company's Common Stock for a period of twenty (20) trading days prior to the announcement by the Company
of such transaction as noticed to the Company in writing by the Holder. To the extent that Holder's right to convert the Convertible Debenture into the Debenture Shares is accelerated under this
Section 8, the conversion or payment of the entire outstanding principal amount of the Convertible Debenture shall be contingent upon the consummation of such merger, consolidation, sale or
transfer of assets, liquidation or dissolution. 

5

 

        9.    GENERAL PROVISIONS.  

         9.1    Survival of Representations and Warranties. All representations and warranties of
the parties
hereto contained in this Agreement will survive the Closing, are material and have been or will be relied upon by the other parties. 

        9.2    No Third Parties Benefited. This Agreement is made for the purpose of
defining and setting forth certain obligations, rights and duties of the Company and the Holder in connection with the obligations under this Agreement. This Agreement is made for the sole protection
of the Company and the Holder. No other person shall have any rights of any nature hereunder or by reason hereof. 

        9.3    Binding Effect. This Agreement shall bind, and shall inure to the benefit
of, the Company and the Holder, and their respective heirs, successors, personal representatives and assigns. 

        9.4    Execution in Counterparts. This Agreement may be executed in any number
of counterparts and any party hereto or thereto may execute any counterpart, each of which when executed and delivered will be deemed to be an original and all of which counterparts of this Agreement
taken together will be deemed to be but one and the same instrument. The execution of this Agreement by any party hereto will not become effective until counterparts hereof or thereof, as the case may
be, have been executed by all the parties hereto or thereto, and transmitted by facsimile copy with overnight delivery of manually executed copies. 

        9.5    Prior Agreements; Amendments; Consents. This Agreement contains the
entire agreement between the Holder and the Company in regards to the Convertible Debenture and the Debenture Shares and all prior negotiations, understandings and agreements with regards to the
offering thereof are superseded by this Agreement. No amendment, modification, supplement, termination or waiver of any provision of this Agreement, and no consent to any departure by the Company
therefrom, shall be effective unless in writing and signed by the Holder, and then only in the specific instance and for the specific purpose given. "Including" as used herein means "including, but
not limited to." 

        9.6    Governing Law. THIS AGREEMENT AND ALL AMENDMENTS, SUPPLEMENTS, WAIVERS AND CONSENTS RELATING
HERETO OR THERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH PARTY HEREBY IRREVOCABLY SUBMITS ITSELF
TO THE JURISDICTION OF THE COURTS SITTING IN THE STATE OF DELAWARE AND AGREES AND CONSENTS THAT SERVICE OF PROCESS MAY BE MADE UPON IT IN ANY LEGAL PROCEEDINGS RELATING HERETO BY ANY MEANS ALLOWED
UNDER DELAWARE LAW.  

         9.7    Mandatory Arbitration. Any dispute arising in connection with the interpretation or
enforcement
of the provisions of this Agreement, or its application or validity, will be submitted to arbitration. Such arbitration proceedings will be held in the State of Delaware. This agreement to arbitrate
is specifically enforceable. Any award rendered in any such arbitration proceeding will be final and binding on each of the parties, and judgment may be entered thereon in any court of competent
jurisdiction. The costs
and fees of any such arbitration proceeding will be borne by the respective parties. The arbitrators may in their discretion award costs and reasonable attorneys' fees to the prevailing party. 

        9.8    Severability of Provisions; Conflict. Any provision in this Agreement
that is held to be inoperative, unenforceable or invalid shall be inoperative, unenforceable or invalid without affecting the remaining provisions, and to this end the provisions of this Agreement are
declared to be severable. In the event of a conflict between this Agreement and the Materials as defined herein, the terms of this Agreement shall prevail. 

6

 

        9.9    Attorney's Fees. In the event that any action, proceeding, or arbitration
is instituted by or against any of the parties in order to enforce any of the terms or provisions hereof, to construe the rights of the parties hereunder, then the prevailing party shall be entitled
to recover all costs thereof and reasonable attorneys' fees as part of the judgment, whether or not such action is prosecuted to judgment. 

        9.10    Confidentiality. The Holder acknowledges and agrees that the
non-public information it has received and will receive about the Company and the Company's financial performance is confidential, and agrees to use all reasonable efforts to maintain the
confidentiality thereof. Any confidentiality agreement between the Holder and the Company, including the foregoing, is hereby modified, only to the extent necessary, to permit the Holder to exercise
and protect its rights under this Agreement, or as a stockholder of the Company. 

        10.    NOTICES. Any notice to the Company provided for in the Convertible
Debenture shall be given by personal delivery or by mailing such notice by first class or certified mail, return receipt requested, addressed to the Company at the property address stated below, or to
such other address as the Company may designate by written notice to the Holder. Any notice to the Holder shall be given by personal delivery or by mailing such notice by first class or certified
mail, return receipt requested, to the Holder at the address stated on the signature page of the Agreement, or at such other address as may have been designated the Holder by written notice to the
Company. Mailed notices shall be deemed delivered and received on the delivery date as shown on the postal return receipt or the receipt furnished by an independent courier service, and any notices
transmitted by confirmed facsimile transmission will be deemed delivered and received as of the date of the transmission. 

SIGNATURES ON NEXT PAGE  

7

 

        IN WITNESS WHEREOF, the parties have signed this Agreement as
of                        ,  2003 at Las Vegas, Nevada. 

	 	 	"HOLDER"
	

 	
 	

 Signed
	

 	
 	

Address:
	

 	
 	

	

 	
 	

	 	 	Phone:	 
	 	 	 	

	 	 	FAX:	 
	 	 	 	

	 	 	Email:	 
	 	 	 	

	 	 	Tax I.D. or Social Security Number:
	

 	
 	

 
 

THIS AGREEMENT IS NOT EFFECTIVE UNTIL AFTER THE RECEIPT AND VERIFICATION OF GOOD FUNDS FROM THE HOLDER TO THE BANK ACCOUNT LISTED BELOW AND ACCEPTANCE BY THE COMPANY AS  WITNESSED BY THE SIGNATURE ON THE NEXT PAGE    

 

        Wires should be sent via the Fed Wire system to:
  U.S. Bank of Nevada

Nevada Financial Center

2300 West Sahara Avenue

Las Vegas, NV. 89102

ABA #                

Credit to the Account of:

MediCor Ltd.

Account #                        

(continued
on next page) 

8

 
Checks should be made payable to MediCor Ltd.

and sent, via Federal Express, to:

MediCor Ltd.

4560 South Decatur Blvd. Suite 300

Las Vegas, NV. 89103

Phone: 702/731-2519

FAX: 702/791-5365 

	THE COMPANY:	 	 
	

MediCor Ltd.	
 	

The Effective Date:

	By:	 	 	                         , 2003
	 	 	
	 

	Its:	 	 	 	 
	 	 	
	 	 

	Management Office Address and Address for Notices:

MediCor Ltd.

4560 South Decatur Blvd.

Suite 300

Las Vegas, NV. 89103

Phone: 702/731-2519

FAX: 702/791-5365	 	 

9

 
 
 

LIST OF EXHIBITS
  TO
  INVESTMENT AGREEMENT    
    

	EXHIBIT A	 	—	 	DEFINITION OF AN "ACCREDITED INVESTOR"
	EXHIBIT B	 	—	 	FORM OF CONVERTIBLE DEBENTURE

10

 
 
 

EXHIBIT A TO AGREEMENT
  DEFINITION OF ACCREDITED HOLDER
  REGULATION D    
    

        To be eligible to purchase the Convertible Debenture, prospective investors must meet the Accredited Investor requirements described below. 

        Under
Regulation D an "Accredited Investor" shall mean any person who comes within any of the following categories, or who the issuer reasonably believes comes within any of the
following categories at the time of the sale of the securities to that person: 

	(1)
	any
bank as defined in section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Act whether acting in
its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Exchange Act; any insurance company as defined in section 2(13) of the Act; any
investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; Small Business Investment Company licensed
by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political
subdivisions, or any agency or instrumentality of a state or its political subdivisions for the benefit of its employees, if such plan has total assets in excess of $5,000,000; employee benefit plan
within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a
bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed
plan, with investment decisions made solely by persons that are accredited Holders;

	(2)
	any
private business development company as defined in section 202(a)(22) of the Investment Advisors Act of 1940;

	(3)
	any
organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership not formed for the specific
purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

	(4)
	any
director, executive officer or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of that issuer;

	(5)
	any
natural person whose individual net worth, or joint net worth with that person's spouse, at the time of his purchase exceeds $1,000,000;

	(6)
	any
natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of
those years and has a reasonable expectation of reaching the same income level in the current year;

	(7)
	any
trust with total assets in excess of $5,000,000 not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as
described in Section 230.506(b)(2)(ii); or

	(8)
	any
entity in which all of the equity owners are Accredited Investors. 

11

 
 
 

EXHIBIT B
  TO INVESTMENT AGREEMENT
  
    FORM OF CONVERTIBLE DEBENTURE
  
    CONFIDENTIAL    
    

12

 

THE DEBENTURES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "SECURITIES ACT"), AND HAVE NOT BEEN QUALIFIED UNDER THE SECURITIES LAWS OF ANY
OTHER STATE. THE DEBENTURES CANNOT BE SOLD OR TRANSFERRED WITHOUT SUCH REGISTRATION OR QUALIFICATION UNLESS AN EXEMPTION FROM SUCH REGISTRATION OR QUALIFICATION IS THEN
AVAILABLE.

 
 

MEDICOR LTD.
  FORM OF CONVERTIBLE DEBENTURE    
    

	DEBENTURE #:	 	DATE OF ISSUANCE:
	

#	
 	

 
	

PRINCIPAL AMOUNT:	
 	

 
	

$	
 	

 

        FOR VALUE RECEIVED, the undersigned, MEDICOR LTD., a Delaware corporation (the
"Company") promises to pay to the order of                        (the "Holder"), as defined in the MediCor Convertible Debenture
Agreement dated as of the Date of Issuance set forth above between the
Company and the Holder and hereby incorporated herein by this reference (the "Agreement"), or order, at Holder's address as designated on the signature
page of the Agreement, or at such other address as the Holder designates, the entire outstanding principal amount of this Convertible Debenture or to issue to the Holder the Debenture Shares at the
Conversion Price, at the Holder's option on the Conversion Date, all as defined in Section 1 of the Agreement. 

        1.    PAYMENTS AND INTEREST. The outstanding principal amount of this
Convertible Debenture shall bear interest at a rate of Eight Percent (8%) per annum, for as long as the Convertible Debenture is outstanding. Interest shall be paid to the Holder by the Company on a
quarterly basis, payable within thirty (30) days from the end of each calendar quarter. If the Holder converts this Convertible Debenture into the Debenture Shares or elects to have the
outstanding principal amount of this Convertible Debenture repaid to the Holder as described in Section 2 of the Agreement, the Company will pay any accrued and unpaid interest,
pro-rated to the Conversion date on the basis of a 365 day year, due the Holder and no further interest past the Conversion Date will be due to the Holder by the Company. This
Convertible Debenture is payable only by the either: (i) the payment to the Holder by the Company of the outstanding principal amount of this Convertible Debenture; or (ii) by the
issuance by the Company of the Debenture Shares, with the exception of any fractional shares which may be issuable hereunder, which will be paid in cash by the Company. 

        2.    SECURITY. This Convertible Debenture is an unsecured obligation of the
Company. 

        3.    SEVERABILITY. If any provision of this Convertible Debenture is invalid by
operation of any law or interpretation placed thereon by any court, this Convertible Debenture shall be construed as not containing such provision and all other provisions of this Convertible
Debenture which are otherwise
lawful shall remain in full force and effect, and to this end the provisions of this Convertible Debenture are declared to be severable. 

        4.    GOVERNING LAW. THIS CONVERTIBLE DEBENTURE AND ALL AMENDMENTS, SUPPLEMENTS, WAIVERS AND CONSENTS
RELATING HERETO OR THERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH PARTY HEREBY IRREVOCABLY
SUBMITS ITSELF TO THE JURISDICTION OF THE COURTS SITTING IN THE STATE OF DELAWARE AND AGREES AND CONSENTS THAT SERVICE OF PROCESS  

13

 

 MAY BE MADE UPON IT IN ANY LEGAL PROCEEDINGS RELATING HERETO BY ANY MEANS ALLOWED UNDER DELAWARE LAW.  

        5.    ASSIGNMENT. With respect to any offer, sale or other disposition of this Convertible
Debenture,
the Holder will give written notice to the Company prior thereto, describing briefly the manner thereof, together with a written opinion of such Holder's counsel, to the effect that such offer, sale
or other distribution may be effected without registration or qualification (under any federal or state law then in effect). Promptly upon receiving such written notice, the Company shall notify such
Holder whether such Holder may sell or otherwise dispose of this Convertible Debenture, all in accordance with the terms of the notice delivered to the Company. 

        6.    FORBEARANCE NOT A WAIVER. No delay or omission on the part of the Holder
in exercising any rights under this Convertible Debenture or under the Agreement as defined herein, on default by the Company, shall operate as a waiver of such right or of any other right under this
Convertible Debenture, for the same default or any other default. 

        7.    MANNER OF NOTIFICATION. Any notice or surrender to the Company provided
for in this Convertible Debenture shall be given by personal delivery or by mailing such notice or making such surrender by first class or certified mail, return receipt requested, addressed to the
Company at the property address stated below, or to such other address as the Company may designate for such purpose by written notice to the Holder. Any notice to the Holder shall be given by
personal delivery or by mailing such notice by first class or certified mail, return receipt requested, to the Holder at the address stated on the signature page of the Agreement, or at such other
address as may have been designated the Holder by written notice to the Company. Mailed notices shall be deemed delivered and received on the delivery date as shown on the postal return receipt or the
receipt furnished by an independent courier service, and any notices transmitted by confirmed facsimile transmission will be deemed delivered and received as of the date of the transmission. 

        8.    CONVERSION RIGHTS OF HOLDER. In the sole discretion of the Holder, not
more than twenty (20) business days nor less than ten (10) business days prior to the first anniversary of the Date of
Issuance set forth above and thereafter prior to the 18-month, 24-month, 30-month and 36-month anniversary of the date hereof, the Holder may elect to:
(a) have the entire outstanding principal amount of the Convertible Debenture repaid to the Holder, along with any accrued and unpaid interest thereon; (b) covert the entire outstanding
principal amount of the Convertible Debenture into the Debenture Shares at the Conversion Price as defined in Section 1 of the Agreement; or (c) continue to hold this Convertible
Debenture until the third anniversary of the Date of Issuance set forth above (the "Maturity Date"). If the Holder does not so notify the Company of
Holder's election prior to any Conversion Date, as defined in Section 1 of the Agreement, then the Company will continue to record this Convertible Debenture as outstanding. In the sole
discretion of the Holder, not more than twenty (20) business days nor less than ten (10) business days prior to the Maturity Date as defined above, the Holder may elect to:
(a) have the entire outstanding principal amount of the Convertible Debenture repaid to the Holder, along with any accrued and unpaid interest thereon; or (b) covert the entire
outstanding principal amount of the Convertible Debenture into the Debenture Shares at the Conversion Price as defined in Section 1 of the Agreement. If the Holder does not so notify the
Company prior to the Maturity Date, the Convertible Debenture will automatically convert into the Debenture Shares at the Conversion Price and, upon such conversion, any and all obligations of the
Company to the Holder hereunder shall be satisfied. 

        8.1    Conversion Procedure; Notice of Conversion. Before the Holder shall be
entitled to convert this Convertible Debenture into the Debenture Shares, the Holder shall surrender this Convertible Debenture to the Company at the address of the Company provided for such purpose
pursuant to Section 7 and shall give written notice by mail, postage prepaid, to the Company, of the election to convert the same, all as described in the Agreement and in Section 8
hereof. The Company shall, as 

14

 

soon
as practicable thereafter, issue and deliver to the Holder pursuant to Section 8.2 a certificate or certificates for the Debenture Shares to which the Holder shall be entitled as aforesaid
(bearing such legends as are required by applicable state and federal securities laws in the opinion of counsel to the Company), including a check payable to the Holder for any cash amounts payable as
described in Section 8.2. Such conversion shall be deemed to have been made immediately prior to the close of business on the Conversion Date as defined in Section 1 of the Agreement,
and the Holder shall be treated for all purposes as the record holder or holders of such shares of the Common Stock as of such date. 

        8.2    Mechanics and Effect of Conversion. No fractional shares of the Common
Stock shall be issued upon conversion of this Convertible Debenture. In lieu of the Company issuing any fractional shares to the Holder upon the conversion of this Convertible Debenture, the Company
shall pay to the Holder the amount of outstanding principal that is not so converted because of a fractional share, such payment to be in the form as provided below. Upon the conversion of this
Convertible Debenture pursuant to Section 8, the Holder shall surrender this Debenture, duly endorsed, at the Company's address provided for such purpose pursuant to Section 7. At is
expense, the Company shall, as soon as practicable thereafter, issue and deliver to such Holder by mail a certificate or certificates for the number of whole shares of the Common Stock to which the
Holder shall be entitled upon such conversion (bearing such legends as are required by applicable state and federal securities laws in the opinion of counsel to the Company). Upon conversion of this
Convertible Debenture or repayment of the entire principal amount of this Convertible Debenture to the Holder, the Company shall be forever released from all of its obligations and liabilities under
this Convertible Debenture. 

        9.    HEADING; REFERENCES. All headings used herein are used for convenience
only and shall not be used to construe or interpret this Convertible Debenture. Except where otherwise indicated, all references herein to Sections refer to Sections hereof. 

	THE COMPANY:

MEDICOR LTD.

a Delaware Corporation	 	 

	By:	 	 	 
	 	 	
	 

	Its:	 	 	 
	 	 	
	 
	

Address for Notices:

4560 South Decatur Blvd. Suite 300

Las Vegas, NV. 89103	

 

15

 
 
 

NOTICE OF CONVERSION
  
    (To be signed only upon Conversion of Debenture)    
    

	TO:	 	MEDICOR LTD.

4560 South Decatur Blvd. Suite 300

Las Vegas, NV. 89103

        The
undersigned, the Holder of the foregoing Convertible Debenture, hereby surrenders such Convertible Debenture for conversion into shares of the Common Stock of  MEDICOR LTD., a Delaware Corporation,
to the extent of the entire outstanding principal amount of the Convertible Debenture, and requests that
the certificates for such shares be issued in the name of, and delivered to: 

whose
address is: 

Dated:

	 	 	 	 	Signed:
	

 	
 	

 	
 	

	 	 	 	 	(Signature must conform in all respects to the name of

the Holder as specified on the face of the Debenture)
	

 	
 	

 	
 	

Address:
	

 	
 	

 	
 	

	

 	
 	

 	
 	

16

QuickLinks

Exhibit 4.4

FOR ACCREDITED INVESTORS ONLY

MEDICOR LTD. FORM OF CONVERTIBLE DEBENTURE AGREEMENT

RECITALS

AGREEMENT

THIS AGREEMENT IS NOT EFFECTIVE UNTIL AFTER THE RECEIPT AND VERIFICATION OF GOOD FUNDS FROM THE HOLDER TO THE BANK ACCOUNT LISTED BELOW AND ACCEPTANCE BY THE COMPANY AS WITNESSED BY THE SIGNATURE ON THE NEXT
PAGE

LIST OF EXHIBITS TO INVESTMENT AGREEMENT

EXHIBIT A TO AGREEMENT DEFINITION OF ACCREDITED HOLDER REGULATION D

EXHIBIT B TO INVESTMENT AGREEMENT FORM OF CONVERTIBLE DEBENTURE CONFIDENTIAL

MEDICOR LTD. FORM OF CONVERTIBLE DEBENTURE

NOTICE OF CONVERSION (To be signed only upon Conversion of Debenture)QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.26    
    

 
 

REIMBURSEMENT AGREEMENT    
    

        This REIMBURSEMENT AGREEMENT (the "Agreement") is made and entered into effective as of this 1st day of October 2003, by and between Global
Aviation Delaware LLC, a Delaware limited liability company ("Global"), and MediCor Ltd., a Delaware corporation ("MediCor"). 

        In
consideration of the mutual promises, agreements, covenants, warranties, representations and provisions contained herein, the parties agree as follows: 

        1.    Reimbursement of Aircraft Expense.    Subject to the terms and conditions contained herein, if during the Term
(as defined hereafter) MediCor uses Global's aircraft in connection with MediCor travel on MediCor business, MediCor agrees to reimburse to Global the expense of such use. Global's aircraft is
identified as a Bombardier Challenger Model CL-604 aircraft, serial number 5304, Federal Aviation Administration ("FAA") registration number N604VM (the "Aircraft"). 

        2.    Term.    The term of this Agreement (the "Term") shall commence on the effective date hereof (the "Commencement
Date") and end on December 31, 2004 (the "Initial Term Expiration Date"). Notwithstanding the foregoing, and unless this Agreement has earlier been terminated in accordance with its terms, the
Term shall continue after the Initial Term Expiration Date on an annual basis. Either party may terminate this Agreement any time during the Term upon not less than thirty (30) days written
notice to the other. This Agreement shall terminate on the termination of Donald McGhan's employment by MediCor. 

        3.    Base of the Aircraft.    MediCor acknowledges that Global currently bases the Aircraft at Las Vegas McCarran
Airport, Clark County, Nevada (the "Base"), and that MediCor's use of the Aircraft for MediCor business travel shall include ferry flights to and from the Base at the beginning and end of such
business travel. 

        4.    Reimbursement.    

        (a)   MediCor
shall reimburse to Global in connection with his use of the Aircraft during the Term for MediCor business travel the following amounts (referred to collectively
as the "Reimbursement Amounts") within 30 days of receipt of an invoice from Global or its representative with respect to such use: 

        (i)    $4,200
per operating hour for use of the Aircraft, with full crew, flight planning services and fuel, as such rate may be adjusted periodically by the mutual consent of
the parties; 

        (ii)   all
fees, including fees for landing, parking, hangar, tie-down, handling, ground transportation, customs, use of airways and permission for overflight; 

        (iii)  all
expenses for in-flight catering; 

        (iv)  all
travel expenses for pilots, flight attendants and other flight support personnel, including food, lodging and ground transportation; and 

        (v)   all
communications charges, including in-flight telephone. 

Global's
invoices shall include the date, departure point, arrival point, number of passengers and number of operating hours for each flight by MediCor and documentation of the other expenses to be
reimbursed hereunder. 

        (b)   In
no event shall the amount reimbursed under this Agreement on an annual basis exceed $1 million without the further written consent of MediCor's Board of
Directors. 

        5.    Pilots.    For all flights of the Aircraft by MediCor pursuant to this Agreement, Global shall cause the
Aircraft to be operated by pilots who are duly qualified under the Federal Aviation Regulations, including, without limitation, with respect to currency and type-rating, whose licenses and 

 

certificates
are in good standing, and who meet all other requirements established and specified by the FAA and the insurance policies required hereunder. 

        6.    Operation and Maintenance Responsibilities of Global.    This Agreement is not intended to constitute a lease of
the Aircraft. Global shall be in operational control of the Aircraft at all times during the Term. Global shall be solely responsible for the operation and maintenance of the Aircraft and shall
operate and maintain such Aircraft in compliance with all applicable laws and regulations. 

        7.    Insurance.    Global shall maintain in effect at its own expense throughout the Term, insurance policies
containing such provisions and providing such coverages as Global deems appropriate. Notwithstanding the foregoing, Global shall maintain property damage and personal injury aviation liability
insurance with coverage in the amount of no less than $300,000,000 combined single limit per occurrence (the "Required Insurance"). Global shall cause the policies providing the Required Insurance to
(a) name MediCor as an additional insured, (b) not be subject to any offset by any other insurance carried by Global or MediCor, (c) contain a waiver by the insurer of any
subrogation rights against MediCor, (d) insure the interest of MediCor, regardless of any breach or violation by the Global or of any other person (other than is solely attributable to the
gross negligence or willful misconduct of MediCor) of any warranty, declaration or condition contained in such policies, (e) include a severability of interests endorsement providing that such
policy shall operate in the same manner (except for the limits of coverage) as if there were a separate policy covering each insured and (f) not be subject to cancellation or material
modification without at least 30 days' written notice to MediCor. MediCor acknowledges that Global does not maintain and is not required to maintain insurance against perils covered by "war
risk" insurance, including acts of war, hijacking, nuclear detonation, strikes, sabotage, confiscation, and terrorism. 

        8.    Indemnity; Loss or Damage    

        (a)   Global
shall indemnify, defend and hold harmless MediCor and its officers, directors, agents and employees from and against any and all liabilities, claims (including,
without limitation, claims involving or alleging MediCor's negligence and claims involving strict or absolute liability in tort), demands, suits, causes of action, losses, penalties, fines, expenses
(including, without limitation, attorneys' fees) or damages (collectively, "Claims"), to the extent relating to or arising out of Global's breach of this Agreement if and to the extent that MediCor
would have had the benefit of insurance coverage for such Claims but for Global's breach but not including circumstances in which a Claim is solely attributable to the gross negligence or willful
misconduct of MediCor. MediCor agrees to seek recovery for any Claims from all available insurance before seeking indemnification from Global hereunder. The maximum amount of Global's liability
hereunder shall be $300,000,000. 

        (b)   MediCor
shall indemnify, defend and hold harmless Global and his agents and employees from and against any and all Claims to the extent relating to or arising out of
MediCor's breach of this Agreement. 

        (c)   In
the event of loss or destruction of all or a portion of the Aircraft, or in the event of confiscation or seizure of the Aircraft, this Agreement shall automatically
terminate; provided, however, that such termination of this Agreement shall not affect MediCor's obligation to pay Global all unpaid Reimbursement Amounts. 

        9.    General Provisions    

        (a)    Headings.    The headings contained in this Agreement are for reference purposes only and shall not affect in
any way the construction or interpretation of this Agreement. 

        (b)    Partial Invalidity.    If any provision of this Agreement, or the application thereof to any person, place or
circumstance, shall be held by a court of competent jurisdiction to be illegal, 

2

 

invalid,
unenforceable or void, then such provision shall be enforced to the extent that it is not illegal, invalid, unenforceable or void, and the remainder of this Agreement, as well as such
provision as applied to other persons, shall remain in full force and effect. 

        (c)    Waiver.    With regard to any power, remedy or right provided in this Agreement or otherwise available to any
party, (i) no waiver or extension of time shall be effective unless expressly contained in a writing signed by the waiving party, (ii) no alteration, modification or impairment shall be
implied by reason of any previous waiver, extension of time, delay or omission in exercise or other indulgence, and (iii) waiver by any party of the time for performance of any act or condition
hereunder does not constitute waiver of the act or condition itself. 

        (d)    Notices.    Any notice or other communication required or permitted under this Agreement shall be in writing
and shall be deemed duly given upon actual receipt, if delivered personally, by overnight courier or by telecopy; or three (3) days following deposit in the United States mail, if deposited
with postage pre-paid, return receipt requested, and addressed to such address as may be specified in writing by the relevant party from time to time, and which shall initially be as
follows: 

	To Global at:	 	Global Aviation Delaware LLC

80 Broad Street

Suite 3400

New York, NY 10004-2209

Attn: President
	

To MediCor at:	
 	

MediCor Ltd.

4560 S. Decatur Blvd., Suite 300

Las Vegas, NV 89103

Attn: Chief Financial Officer

        No
objection may be made to the manner of delivery of any notice or other communication in writing actually received by a party. 

        (e)    Delaware Law.    This Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware, regardless of the choice of law provisions of Delaware or any other jurisdiction. 

        (f)    Entire Agreement.    This Agreement constitutes the entire agreement between the parties pertaining to the
subject matter contained in this Agreement and supersedes any prior or contemporaneous agreements, representations and understandings, whether written or oral, of or between the parties with respect
to the subject matter of this Agreement. There are no representations, warranties, covenants, promises or undertakings, other than those expressly set forth or referred to herein. 

        (g)    Amendment.    This Agreement may be amended only by a written agreement signed by all of the parties. 

        (h)    Binding Effect; Assignment.    This Agreement shall be binding on, and shall inure to the benefit of, the
parties to it and their respective successors and assigns; provided, however, that MediCor may not assign any of its rights under this Agreement, and any such purported assignment shall be null, void
and of no effect. 

        (i)    Attorneys' Fees.    Should any action (including any proceedings in a bankruptcy court) be commenced between
any of the parties to this Agreement or their representatives concerning any provision of this Agreement or the rights of any person or entity thereunder, solely as between the 

3

 

parties
or their successors, the party or parties prevailing in such action as determined by the court shall be entitled to recover from the other party all of its costs and expenses incurred in
connection with such action (including, without limitation, fees, disbursements and expenses of attorneys and costs of investigation). 

        (j)    Remedies Not Exclusive.    No remedy conferred by any of the specific provisions of this Agreement is intended
to be exclusive of any other remedy, and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity by
statute or otherwise. The election of any one or more remedies shall not constitute a waiver of the right to pursue other remedies. 

        (k)    No Third Party Rights.    Nothing in this Agreement, whether express or implied, is intended to confer any
rights or remedies under or by reason of this Agreement on any person other than the parties to this Agreement and their respective successors and assigns, nor is anything in this Agreement intended
to relieve or discharge the obligation or liability of any third persons to any party to this Agreement, nor shall any provision give any third person any right of subrogation or action over or
against any party to this Agreement. 

        (l)    Counterparts.    This Agreement may be executed in one or more counterparts, each of which independently shall
be deemed to be an original, and all of which together shall constitute one instrument. 

        (m)    Relationship of the Parties.    Nothing contained in this Agreement shall in any way create any association,
partnership, joint venture, or principal-and-agent relationship between the parties hereto or be construed to evidence the intention of the parties to constitute such. 

        (n)    Limitation of Damages.    Each party waives any and all claims, rights and remedies against the other, whether
express or implied, or arising by operation of law or in equity, for any punitive, exemplary, indirect, incidental or consequential damages whatsoever. 

        (o)    Survival.    All representations, warranties, covenants and agreements, set forth in Sections 4, 7, 8 and 9
contained in this Agreement shall survive the expiration or termination of this Agreement. 

        IN
WITNESS WHEREOF, the parties hereto have each caused this Agreement to be duly executed effective as of the day and year first written above. 

	GLOBAL:	 	 	 	MEDICOR:
	

GLOBAL AVIATION DELAWARE LLC	
 	

 	
 	

MEDICOR LTD.
	

By:	

    
 Name:

Title:	
 	

 	
 	

By:	

    
 Name:

Title:

4

QuickLinks

Exhibit 10.26

REIMBURSEMENT AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}]]