Document:

EXHIBIT 4.3

THIS SECURITY HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE
SECURITIES LAWS OF ANY STATE, AND IS BEING OFFERED AND SOLD PURSUANT TO AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH
LAWS. THIS SECURITY MAY NOT BE SOLD OR TRANSFERRED EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR
SUCH OTHER LAWS.

6% SENIOR CONVERTIBLE DEBENTURE

 (This Debenture, together with another
Debenture issued contemporaneously herewith in the face amount of $453,690 (the
“Companion Debenture”), supersede, modify, replace and restate in their
entirety those certain Debentures issued to Regent Private Capital, LLC dated
February 15, 2008 and April 15, 2008 and additional advances made in June 2009
and July 2009, in the aggregate principal amount of $696,500 together with all
accrued interest thereon through November 30, 2009. The dates of advances and
amounts of advances which comprise the face amount of this Debenture are
detailed on Schedule A attached hereto.

	
  

 	
  

 
	
 No. 006

 	
 US$350,000

 

VYCOR MEDICAL, INC.

SENIOR CONVERTIBLE DEBENTURE

DUE AUGUST 31, 2010

          FOR VALUE
RECEIVED, Vycor Medical, Inc. (the
“Company”) promises to pay to Regent Private
Capital, LLC, or any other registered holder(s) hereof and its or
their authorized successors and permitted assigns (“ Holder”), the aggregate
principal face amount of US$350,000 on or before August 31, 2010 (“Maturity
Date”), together with interest thereon at six percent (6%) per annum. Accrued
interest shall be paid to the person in whose name this Debenture is registered
on the records of the Company regarding registration and transfers of the
Debenture (“Debenture Register”); provided, however, that the Company’s
obligation to a transferee of this Debenture arises only if such transfer, sale
or other disposition is made in accordance with the terms hereof and duly entered
in the Debenture Register. The principal amount of this Debenture is payable at
the address last appearing on the Debenture Register of the Company as
designated in writing by the Holder hereof from time to time. The Holder’s
address initially provided to the Company is as set forth in Section 16(b)
below. The Company will pay the outstanding principal and accrued interest due
upon this Debenture before or on the Maturity Date, less any amounts required
by law to be deducted or withheld, to the Holder of this Debenture by check if
paid more than 10 days prior to the Maturity Date or by wire transfer and
addressed to such Holder at the last address 

1

appearing on the Debenture Register. The forwarding of such check or
wire transfer shall constitute a payment of outstanding principal hereunder and
shall satisfy and discharge the liability for principal on this Debenture to
the extent of the sum represented by such check or wire transfer. 

          This
Debenture is secured pursuant to the terms of a Security Agreement dated as of
[date], as amended (“Security Agreement”). 

          This
Debenture is subject to the following additional provisions:

          1. Issuance.
The Debenture may be
exchanged for an equal aggregate principal amount of Debentures of different
authorized denominations, as requested by the Holders surrendering the same. No
service charge will be made for such registration or transfer or exchange,
except that Holder shall pay any tax or other governmental charges payable in
connection therewith. The Company shall be entitled to withhold from all
payments any amounts required to be withheld under the applicable laws.

          2.Loss, Theft,
Destruction of Debenture.
Upon receipt of evidence satisfactory to the Company of the loss, theft,
destruction or mutilation of this Debenture and, in the case of any such loss,
theft or destruction, upon receipt of indemnity or security reasonably
satisfactory to the Company, or, in the case of any such mutilation, upon
surrender and cancellation of this Debenture, the Company shall make, issue and
deliver, in lieu of such lost, stolen, destroyed or mutilated Debenture, a new
Debenture of like tenor and unpaid principal amount dated as of the date hereof
(which shall accrue interest from the most recent interest payment date on
which an interest payment was made in full). 

          3. Transfer.
This Debenture may be
transferred or exchanged only in compliance with the Securities Act of 1933, as
amended (the “Act”) and applicable state securities laws. Prior to due
presentment for transfer of this Debenture, the Company and any agent of the
Company may treat the person in whose name this Debenture is duly registered on
the Company’s Debenture Register as the Holder hereof for all other purposes,
whether or not this Debenture be overdue, and neither the Company nor any such
agent shall be affected or bound by notice to the contrary. Any Holder of this
Debenture, electing to exercise the right of conversion set forth in Section
4(a) hereof, in addition to the requirements set forth in Section 4(a), and any
prospective transferee of this Debenture, are also required to give the Company
written confirmation that the Debenture is being converted (“Notice of
Conversion”) in the form annexed hereto as Exhibit I. The date of receipt
(including receipt by telecopy) of such Notice of Conversion shall be the
Conversion Date.

          4.
Conversion The Holder is entitled, at
its option, to convert all or any amount of the principal face amount of this
Debenture then outstanding into shares of common stock of the Company at a
Conversion Price of $0.0125 per share, subject to adjustment as provided
herein. If the number of resultant Conversion Shares would as a matter of law
or pursuant to regulatory authority require the Company to seek shareholder
approval of such issuance, the Company has, prior to the issuance hereof, taken
the necessary steps to obtain such approval. Such conversion shall be
effectuated, by the Company delivering the Conversion Shares to the Holder within
10 days of receipt by the Company of the Notice of Conversion. This Debenture
shall be automatically converted once (1) the Company has 

2

sufficient authorized but unissued Common Shares to permit the full
conversion of this Debenture, the Companion Debenture and the conversion of all
of shares the Company’s Series A Convertible Preferred Stock and (2) all issued
and outstanding shares of the Company’s Series A Convertible Preferred Stock
have converted to shares of the Company’s Common Stock. Once the Holder has
received such Conversion Shares, the Holder shall surrender the Debenture (or
portion thereof) to be converted to the Company, executed by the Holder of this
Debenture evidencing such Holder’s intention to convert this Debenture or a
specified portion hereof, and accompanied by proper assignment hereof in blank.
If the Company shall fail to deliver the Conversion Shares to the Holder within
such 10 day period, the Conversion Price shall be automatically reduced by ten
percent (10%), and shall be reduced an additional five percent (5%) for each
additional 10 day period (or portion thereof) thereafter. In the event of a
partial conversion of the Debenture, the Company will immediately issue a
replacement Debenture covering the unconverted portion.

          Notwithstanding
any other provision of this Debenture, no conversion shall be permitted if the
net result of such conversion would that the Holder became a record holder of a
number of the Company’s Common Shares exceeding 4.9% of the then total issued
and outstanding Company Common Shares. 

          To the
fullest extent permitted by law, the Holder shall be entitled to exercise its
conversion privilege notwithstanding the commencement of any case under the
Bankruptcy Code. In the event the Company is a debtor under the Bankruptcy
Code, the Company hereby waives to the fullest extent permitted any rights to
relief it may have under 11 U.S.C. § 362 in respect of the Holder’s conversion
privilege. The Company hereby waives to the fullest extent permitted any rights
to relief it may have under 11 U.S.C. § 362 in respect of the conversion of
this Debenture. The Company agrees, without cost or expense to the Holder, to
take or consent to any and all action necessary to effectuate relief under 11 U.S.C.
§ 362.

          No
fractional shares or scrip representing fractional shares shall be delivered
upon conversion of this Debenture. Instead of any fractional Conversion Shares
which otherwise would be delivered upon conversion of this Debenture, the Company
shall pay a cash adjustment in respect of such fraction in an amount equal to
the same fraction multiplied by the Conversion Price on the date of Conversion.
No cash payment of less than $1.00 shall be required to be given unless
specifically requested by the Holder.

          5. Priority;
Security. The obligation
evidenced by this Debenture shall be senior to all other obligations of the
Company other than obligations specifically approved by the Holder; provided
that the obligation evidenced by this Debenture shall be of equal priority for
all purposes with the following obligations of the Company (“Pari Passu
Obligations”): 

1) A convertible debenture dated December 21, 2009 to Fountainhead
Capital Management Limited in the original face amount of $371,360.

2) A convertible debenture dated December 21, 2009 to Regent Private
Capital, LLC in the original face amount of $453,690.

3

3) Any further amounts advanced to the Company by Fountainhead Capital
Management Limited or its designees.

The obligation evidenced by this Debenture is secured by a first
priority security interest (equal in priority to the Pari Passu Obligations) in
all of the assets of the Company other than liens specifically approved by the
Holder. 

Notwithstanding, to the extent additional advances by Fountainhead
Capital Management Limited (or its designees) taken together with all other Pari Passu Obligations
exceed the aggregate sum $1,800,000 (including accrued interest thereon), the
excess over $1,800,000 shall for all purposes be deemed to be subordinate to
the Pari
Passu Obligations and shall be secured by a second priority security
interest in all of the assets of the Company

          6. Merger,
Reorganization or Consolidation.
In any case in which a transaction would result in a complete liquidation of
the Company or a merger, reorganization, or consolidation of the Company with
any other unrelated corporation or other entity in which the Company is not the
surviving corporation or the Company becomes a wholly-owned subsidiary of
another unrelated corporation or other entity (all such transactions being
referred to herein as a “Reorganization”), the surviving corporation or other
entity shall be required to assume the Debenture or to issue a substitute
Debenture in place thereof which substitute Debenture shall provide for terms
at least as favorable to the Holder as contained in this Debenture and shall
provide the Holder the right to acquire the kind and amount of common stock and
other securities and property which the Holder would have owned or been
entitled to receive had the Debenture been converted immediately prior to such
Reorganization. 

          8. No
Impairment. No provision of this
Debenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of this Debenture at the time,
place, and rate, and in the form, herein prescribed.

          9. Waiver of
Demand/Presentment. The
Company hereby expressly waives demand and presentment for payment, notice of
non-payment, protest, notice of protest, notice of dishonor, notice of
acceleration or intent to accelerate, and diligence in taking any action to
collect amounts called for hereunder and shall be directly and primarily liable
for the payment of all sums owing and to be owing hereto.

          10. Cost and
Fees. The Company agrees to
pay all costs and expenses, including reasonable attorneys’ fees, which may be
incurred by the Holder in collecting any amount due under this Debenture.

          11. Events of
Default. If one or more of
the following described “Events of Default” shall occur and continue for 30
days, unless a different time frame is noted below:

          (a) The
Company shall default in the payment of principal or interest on this
Debenture, and such failure shall continue for a period of five (5) days; or

4

          (b) The
Company shall fail to perform or observe, in any material respect, any other
covenant, term, provision, condition, agreement or obligation of the Company
under this Debenture and such failure shall continue uncured for a period of
thirty (30) days after notice from the Holder of such failure; or

          (c) The
Company shall (1) become insolvent; (2) admit in writing its inability to pay
its debts generally as they mature; (3) make an assignment for the benefit of
creditors or commence proceedings for its dissolution; (4) apply for or consent
to the appointment of a trustee, liquidator or receiver for its or for a
substantial part of its property or business; (5) file a petition for
bankruptcy relief, consent to the filing of such petition or have filed against
it an involuntary petition for bankruptcy relief, all under federal or state
laws as applicable; or

          (d) A
trustee, liquidator or receiver shall be appointed for the Company or for a
substantial part of its property or business without its consent and shall not
be discharged within thirty (30) days after such appointment; or

          (e) Any
governmental agency or any court of competent jurisdiction at the instance of
any governmental agency shall assume custody or control of the whole or any
substantial portion of the properties or assets of the Company; or

          (f) Any
money judgment, writ or warrant of attachment, or similar process, in excess of
One Hundred Thousand ($100,000) Dollars in the aggregate shall be entered or
filed against the Company or any of its properties or other assets and shall
remain unpaid, unvacated, unbonded or unstayed for a period of fifteen (15)
days or in any event later than five (5) days prior to the date of any proposed
sale thereunder; or

          (g)
Bankruptcy, reorganization, insolvency or liquidation proceedings, or other
proceedings for relief under any bankruptcy law or any law for the relief of
debtors shall be instituted voluntarily by or involuntarily against the
Company; or

          (h) The
Company shall not deliver to the Holder the shares pursuant to paragraph 4
herein within 30 days of receipt of Notice of Conversion; or 

          (i) any of
the representations or warranties made by the Company herein, in the Purchase
Agreement or the Security Agreement or in any certificate or financial or other
written statements heretofore or hereafter furnished by or on behalf of the
Company in connection with the execution and delivery of this Debenture, the
Purchase Agreement or the Security Agreement shall be false or misleading in a
material respect on the Closing Date; or

          (j) If the
Company is then a “reporting company” it shall fail to make the required
filings or statements with the Securities Exchange Commission by the
appropriate deadlines.

Then, or at any time thereafter, unless cured, and in each and every
such case, unless such Event of Default shall have been waived in writing by
the Holder (which waiver shall not be deemed to be a waiver of any subsequent
default) at the option of the Holder and in the Holder’s sole discretion, the
Holder may consider this Debenture immediately due and 

5

payable, without presentment, demand, protest or (further) notice of
any kind (other than notice of acceleration), all of which are hereby expressly
waived, anything herein or in any note or other instruments contained to the
contrary notwithstanding, and the Holder may immediately, and without
expiration of any period of grace, enforce any and all of the Holder’s rights
and remedies provided herein or any other rights or remedies afforded by law.
Upon an Event of Default, interest shall accrue on all amounts outstanding
under this Debenture at the rate of 12% per annum, until such Event of Default
is cured or the principal and all accrued interest under this Debenture is paid
in full.

          12.
Priority. This Debenture represents a
prioritized obligation of the Company. However, no recourse shall be had for
the payment of the principal of this Debenture, or for any claim based hereon,
or otherwise in respect hereof, against any incorporator, shareholder, officer
or director, as such, past, present or future, of the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law, or
by the enforcement of any assessment or penalty or otherwise, all such
liability being by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.

          13.
Severability. In case any provision of
this Debenture is held by a court of competent jurisdiction to be excessive in
scope or otherwise invalid or unenforceable, such provision shall be adjusted
rather than voided, if possible, so that it is enforceable to the maximum
extent possible, and the validity and enforceability of the remaining
provisions of this Debenture will not in any way be affected or impaired
thereby.

          14. Entire
Agreement. This Debenture, the
Purchase Agreement, the Security Agreement and the agreements referred to in
this Debenture constitute the full and entire understanding and agreement
between the Company and the Holder with respect to the subject hereof. Neither
this Debenture nor any term hereof may be amended, waived, discharged or
terminated other than by a written instrument signed by the Company and the
Holder.

          15. Governing
Law. This Debenture shall be
governed by and construed in accordance with the laws of New York applicable to
contracts made and wholly to be performed within the State of New York and
shall be binding upon the successors and assigns of each party hereto. The
Holder and the Company hereby mutually waive trial by jury and consent to
exclusive jurisdiction and venue in the courts of the State of New York. At
Holder’s election, any dispute between the parties may be arbitrated rather
than litigated in the courts, before the American Arbitration Association in
New York City and pursuant to its rules. Upon demand made by the Holder to the
Company, the Company agrees to submit to and participate in such arbitration.
This Agreement may be executed in counterparts, and the facsimile transmission
of an executed counterpart to this Agreement shall be effective as an original.

16. Miscellaneous.

          (a) Notice
of Certain Events. In the case of the occurrence of a Reorganization
described in Section 7 of this Debenture, the Company shall cause to be mailed
to the Holder of this Debenture at its last address as it appears in the
Company’s security registry, at least 

6

twenty (20) days prior to the applicable record, effective or
expiration date hereinafter specified (or, if such twenty (20) days’ notice is
not possible, at the earliest possible date prior to any such record, effective
or expiration date), a notice thereof, including, if applicable, a statement of
the date on which such Reorganization is expected to become effective, and the
date as of which it is expected that holders of record of the shares will be
entitled to exchange their shares for securities, cash or other property
deliverable upon such Reorganization.

          (b) Transmittal
of Notices. Except as may be otherwise provided herein, any notice or other
communication or delivery required or permitted hereunder shall be in writing
and shall be delivered personally, or sent by telecopier machine or by a
nationally recognized overnight courier service, and shall be deemed given when
so delivered personally, or by telecopier machine or overnight courier service
as follows:

	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 If to the
 Holder, to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Regent Private Capital,
 LLC

 
	
  

 	
  

 	
 152 West 57th
 Street, 9th Floor

 
	
  

 	
  

 	
 New York, New York 10019

 
	
  

 	
  

 	
 Telephone: 212-792-5304

 
	
  

 	
  

 	
 Facsimile: 646-278-9699

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 With a copy
 to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Kenneth E.
 Dornblaser, Esq.

 
	
  

 	
  

 	
 Johnson,
 Jones, Dornblaser, Coffman & Shorb

 
	
  

 	
  

 	
 15 W. Sixth
 Street, Suite 2200

 
	
  

 	
  

 	
 Tulsa,
 Oklahoma 74119

 
	
  

 	
  

 	
 Telephone:
 918-584-6644

 
	
  

 	
  

 	
 Facsimile:
 918-584-6645

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 If to the
 Holder, to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Vycor
 Medical, Inc.

 
	
  

 	
  

 	
 80 Orville
 Drive, Suite 100

 
	
  

 	
  

 	
 Bohemia, New
 York 11716

 
	
  

 	
  

 	
 Telephone:
 631-244-1435 

 
	
  

 	
  

 	
 Facsimile:
 631-244-1436

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 With a copy
 to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Robert
 Diener

 
	
  

 	
  

 	
 Law Offices
 of Robert Diener

 
	
  

 	
  

 	
 122 Ocean
 Park Blvd. Suite 307

 
	
  

 	
  

 	
 Santa
 Monica, CA 90405

 
	
  

 	
  

 	
 Phone
 310-396-1691 

 
	
  

 	
  

 	
 Fax
 310-362-8887

 

7

Each of the Holder or the Company may change the foregoing address by
notice given pursuant to this Section 16(b).

          (c)
Attorneys’ Fees. Should any party hereto employ an attorney for the purpose of
enforcing or construing this Debenture, or any judgment based on this
Debenture, in any legal proceeding whatsoever, including insolvency,
bankruptcy, arbitration, declaratory relief or other litigation, the prevailing
party shall be entitled to receive from the other party or parties thereto
reimbursement for all reasonable attorneys’ fees and all reasonable costs,
including but not limited to service of process, filing fees, court and court
reporter costs, investigative costs, expert witness fees, and the cost of any
bonds, whether taxable or not, and that such reimbursement shall be included in
any judgment or final order issued in that proceeding. The “prevailing party”
means the party determined by the court to most nearly prevail and not
necessarily the one in whose favor a judgment is rendered. 

          IN WITNESS
WHEREOF, the Company has caused this instrument to be duly executed by an
officer thereunto duly authorized.

Dated:
December 29, 2009

	
  

 	
  

 	
  

 
	
  

 	
 VYCOR MEDICAL, INC.

 
	
  

 	
  

 	
 /s/ Heather Vinas

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	 

 
	
  

 	
 Name:

 	
 Heather
 Vinas

 
	
  

 	
  

 	 

 
	
  

 	
 Title:

 	
 President

 
	
  

 	
  

 	 

 

8

SCHEDULE A

SCHEDULE OF ADVANCES

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Date

 	
  

 	
 Amount

 	
  

 
	 

 	 

 	 

 	 

 
	
 April 15,
 2008

 	
  

 	
 $

 	
 303,363

 	
  

 
	 

 	 

 	 

 	 

 	 

 
	
 June 30,
 2009

 	
  

 	
 $

 	
 20,067

 	
  

 
	 

 	 

 	 

 	 

 	 

 
	
 July 31,
 2009

 	
  

 	
 $

 	
 26,570

 	
  

 
	 

 	 

 	 

 	 

 	 

 

9

EXHIBIT I

NOTICE OF CONVERSION

(To be executed by the Registered Holder in
order to Convert the Debenture)

The undersigned hereby irrevocably elects to convert $___________ of
the above Debenture No. _______ into shares of common stock of Vycor Medical,
Inc. according to the conditions set forth in such Debenture, as of the date
written below. If shares are to be issued in the name of a person other than
the undersigned, the undersigned will pay all transfer and other taxes and
charges payable with respect thereto.

Date of
Conversion

________________________

Applicable
Conversion Price

________________________

Signature

_______________________________________

[Print Name of
Holder and Title of Signer]

Address:

_______________________________________

_______________________________________

SSN or EIN:

Shares are to be registered in the following name:

Name:

Address:

Tel:

Fax:

SSN or EIN:

Shares are to
be sent or delivered to the following account:

Account Name:

Address: 

10EXHIBIT 4.4

THIS SECURITY HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE
SECURITIES LAWS OF ANY STATE, AND IS BEING OFFERED AND SOLD PURSUANT TO AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH
LAWS. THIS SECURITY MAY NOT BE SOLD OR TRANSFERRED EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR
SUCH OTHER LAWS.

6% SENIOR CONVERTIBLE DEBENTURE

 (This Debenture, together with another
Debenture issued contemporaneously herewith in the face amount of $350,000 (the
“Companion Debenture”), supersede, modify, replace and restate in their
entirety those certain Debentures issued to Regent Private Capital, LLC dated
February 15, 2008 and April 15, 2008 and additional advances made in June 2009
and July 2009, in the aggregate principal amount of $696,500 together with all
accrued interest thereon through November 30, 2009. The dates of advances and
amounts of advances which comprise the face amount of this Debenture are
detailed on Schedule A attached hereto.

	
  

 	
  

 
	
 No. 007

 	
 US$453,690

 

VYCOR MEDICAL, INC.

SENIOR CONVERTIBLE DEBENTURE

DUE AUGUST 31, 2010

          FOR
VALUE RECEIVED, Vycor Medical, Inc.
(the “Company”) promises to pay to Regent
Private Capital, LLC, or any other registered holder(s) hereof and
its or their authorized successors and permitted assigns (“ Holder”), the
aggregate principal face amount of US$453,690 on or before August 31, 2010
(“Maturity Date”), together with interest thereon at six percent (6%) per
annum. Accrued interest shall be paid to the person in whose name this
Debenture is registered on the records of the Company regarding registration
and transfers of the Debenture (“Debenture Register”); provided, however, that
the Company’s obligation to a transferee of this Debenture arises only if such
transfer, sale or other disposition is made in accordance with the terms hereof
and duly entered in the Debenture Register. The principal amount of this
Debenture is payable at the address last appearing on the Debenture Register of
the Company as designated in writing by the Holder hereof from time to time.
The Holder’s address initially provided to the Company is as set forth in
Section 16(b) below. The Company will pay the outstanding principal and accrued
interest due upon this Debenture before or on the Maturity Date, less any
amounts required by law to be deducted or withheld, to the Holder of this
Debenture by check if paid more than 10 days prior to the Maturity Date or by
wire transfer and addressed to such Holder at the last address 

1

appearing on
the Debenture Register. The forwarding of such check or wire transfer shall
constitute a payment of outstanding principal hereunder and shall satisfy and
discharge the liability for principal on this Debenture to the extent of the
sum represented by such check or wire transfer. 

          This
Debenture is secured pursuant to the terms of a Security Agreement dated as of
[date], as amended (“Security Agreement”). 

          This
Debenture is subject to the following additional provisions:

          1.
Issuance. The Debenture may
be exchanged for an equal aggregate principal amount of Debentures of different
authorized denominations, as requested by the Holders surrendering the same. No
service charge will be made for such registration or transfer or exchange,
except that Holder shall pay any tax or other governmental charges payable in
connection therewith. The Company shall be entitled to withhold from all
payments any amounts required to be withheld under the applicable laws.

          2.
Loss, Theft, Destruction of Debenture.
Upon receipt of evidence satisfactory to the Company of the loss, theft,
destruction or mutilation of this Debenture and, in the case of any such loss,
theft or destruction, upon receipt of indemnity or security reasonably
satisfactory to the Company, or, in the case of any such mutilation, upon
surrender and cancellation of this Debenture, the Company shall make, issue and
deliver, in lieu of such lost, stolen, destroyed or mutilated Debenture, a new
Debenture of like tenor and unpaid principal amount dated as of the date hereof
(which shall accrue interest from the most recent interest payment date on
which an interest payment was made in full). 

          3.
Transfer. This Debenture
may be transferred or exchanged only in compliance with the Securities Act of
1933, as amended (the “Act”) and applicable state securities laws. Prior to due
presentment for transfer of this Debenture, the Company and any agent of the
Company may treat the person in whose name this Debenture is duly registered on
the Company’s Debenture Register as the Holder hereof for all other purposes,
whether or not this Debenture be overdue, and neither the Company nor any such
agent shall be affected or bound by notice to the contrary. Any Holder of this
Debenture, electing to exercise the right of conversion set forth in Section
4(a) hereof, in addition to the requirements set forth in Section 4(a), and any
prospective transferee of this Debenture, are also required to give the Company
written confirmation that the Debenture is being converted (“Notice of
Conversion”) in the form annexed hereto as Exhibit I. The date of receipt
(including receipt by telecopy) of such Notice of Conversion shall be the
Conversion Date.

          4.
Conversion The Holder is
entitled, at its option, to convert all or any amount of the principal face
amount of this Debenture then outstanding into shares of common stock of the
Company at a Conversion Price of $0.0125 per share, subject to adjustment as
provided herein. If the number of resultant Conversion Shares would as a matter
of law or pursuant to regulatory authority require the Company to seek
shareholder approval of such issuance, the Company has, prior to the issuance
hereof, taken the necessary steps to obtain such approval. Such conversion
shall be effectuated, by the Company delivering the Conversion Shares to the
Holder within 10 days of receipt by the Company of the Notice of Conversion.
This Debenture shall be automatically converted once (1) the Company has 

2

sufficient
authorized but unissued Common Shares to permit the full conversion of this
Debenture, the Companion Debenture and the conversion of all of shares the
Company’s Series A Convertible Preferred Stock and (2) all issued and
outstanding shares of the Company’s Series A Convertible Preferred Stock have
converted to shares of the Company’s Common Stock. Once the Holder has received
such Conversion Shares, the Holder shall surrender the Debenture (or portion
thereof) to be converted to the Company, executed by the Holder of this
Debenture evidencing such Holder’s intention to convert this Debenture or a specified
portion hereof, and accompanied by proper assignment hereof in blank. If the
Company shall fail to deliver the Conversion Shares to the Holder within such
10 day period, the Conversion Price shall be automatically reduced by ten
percent (10%), and shall be reduced an additional five percent (5%) for each
additional 10 day period (or portion thereof) thereafter. In the event of a
partial conversion of the Debenture, the Company will immediately issue a
replacement Debenture covering the unconverted portion.

          Notwithstanding
any other provision of this Debenture, no conversion shall be permitted if the
net result of such conversion would that the Holder became a record holder of a
number of the Company’s Common Shares exceeding 4.9% of the then total issued
and outstanding Company Common Shares. 

          To
the fullest extent permitted by law, the Holder shall be entitled to exercise
its conversion privilege notwithstanding the commencement of any case under the
Bankruptcy Code. In the event the Company is a debtor under the Bankruptcy
Code, the Company hereby waives to the fullest extent permitted any rights to
relief it may have under 11 U.S.C. § 362 in respect of the Holder’s conversion
privilege. The Company hereby waives to the fullest extent permitted any rights
to relief it may have under 11 U.S.C. § 362 in respect of the conversion of
this Debenture. The Company agrees, without cost or expense to the Holder, to
take or consent to any and all action necessary to effectuate relief under 11 U.S.C.
§ 362.

          No
fractional shares or scrip representing fractional shares shall be delivered
upon conversion of this Debenture. Instead of any fractional Conversion Shares
which otherwise would be delivered upon conversion of this Debenture, the Company
shall pay a cash adjustment in respect of such fraction in an amount equal to
the same fraction multiplied by the Conversion Price on the date of Conversion.
No cash payment of less than $1.00 shall be required to be given unless
specifically requested by the Holder.

          5.
Priority; Security. The
obligation evidenced by this Debenture shall be senior to all other obligations
of the Company other than obligations specifically approved by the Holder;
provided that the obligation evidenced by this Debenture shall be of equal
priority for all purposes with the following obligations of the Company (“Pari Passu
Obligations”): 

	
  

 	
  

 
	
 1)

 	
 A
 convertible debenture dated December 21, 2009 to Fountainhead Capital
 Management Limited in the original face amount of $371,360. 

 
	
  

 	
  

 
	
 2)

 	
 A
 convertible debenture dated December 21, 2009 to Regent Private Capital, LLC
 in the original face amount of $350,000.

 

3

	
  

 	
  

 
	
 3)

 	
 Any further
 amounts advanced to the Company by Fountainhead Capital Management Limited or
 its designees.

 

The obligation
evidenced by this Debenture is secured by a first priority security interest
(equal in priority to the Pari Passu Obligations) in all of the
assets of the Company other than liens specifically approved by the Holder. 

Notwithstanding,
to the extent additional advances by Fountainhead Capital Management Limited
(or its designees) taken together with all other Pari Passu Obligations
exceed the aggregate sum $1,800,000 (including accrued interest thereon), the
excess over $1,800,000 shall for all purposes be deemed to be subordinate to
the Pari
Passu Obligations and shall be secured by a second priority security
interest in all of the assets of the Company

          6.
Merger, Reorganization or Consolidation.
In any case in which a transaction would result in a complete liquidation of
the Company or a merger, reorganization, or consolidation of the Company with
any other unrelated corporation or other entity in which the Company is not the
surviving corporation or the Company becomes a wholly-owned subsidiary of
another unrelated corporation or other entity (all such transactions being
referred to herein as a “Reorganization”), the surviving corporation or other
entity shall be required to assume the Debenture or to issue a substitute
Debenture in place thereof which substitute Debenture shall provide for terms
at least as favorable to the Holder as contained in this Debenture and shall
provide the Holder the right to acquire the kind and amount of common stock and
other securities and property which the Holder would have owned or been
entitled to receive had the Debenture been converted immediately prior to such
Reorganization. 

          8.
No Impairment. No provision
of this Debenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of this Debenture at the time,
place, and rate, and in the form, herein prescribed.

          9.
Waiver of Demand/Presentment.
The Company hereby expressly waives demand and presentment for payment, notice
of non-payment, protest, notice of protest, notice of dishonor, notice of
acceleration or intent to accelerate, and diligence in taking any action to
collect amounts called for hereunder and shall be directly and primarily liable
for the payment of all sums owing and to be owing hereto.

          10.
Cost and Fees. The Company
agrees to pay all costs and expenses, including reasonable attorneys’ fees,
which may be incurred by the Holder in collecting any amount due under this
Debenture.

          11.
Events of Default. If one
or more of the following described “Events of Default” shall occur and continue
for 30 days, unless a different time frame is noted below:

          (a)
The Company shall default in the payment of principal or interest on this
Debenture, and such failure shall continue for a period of five (5) days; or

4

          (b)
The Company shall fail to perform or observe, in any material respect, any
other covenant, term, provision, condition, agreement or obligation of the
Company under this Debenture and such failure shall continue uncured for a
period of thirty (30) days after notice from the Holder of such failure; or

          (c)
The Company shall (1) become insolvent; (2) admit in writing its inability to
pay its debts generally as they mature; (3) make an assignment for the benefit
of creditors or commence proceedings for its dissolution; (4) apply for or
consent to the appointment of a trustee, liquidator or receiver for its or for
a substantial part of its property or business; (5) file a petition for
bankruptcy relief, consent to the filing of such petition or have filed against
it an involuntary petition for bankruptcy relief, all under federal or state
laws as applicable; or

          (d)
A trustee, liquidator or receiver shall be appointed for the Company or for a
substantial part of its property or business without its consent and shall not
be discharged within thirty (30) days after such appointment; or

          (e)
Any governmental agency or any court of competent jurisdiction at the instance
of any governmental agency shall assume custody or control of the whole or any
substantial portion of the properties or assets of the Company; or

          (f)
Any money judgment, writ or warrant of attachment, or similar process, in
excess of One Hundred Thousand ($100,000) Dollars in the aggregate shall be
entered or filed against the Company or any of its properties or other assets
and shall remain unpaid, unvacated, unbonded or unstayed for a period of
fifteen (15) days or in any event later than five (5) days prior to the date of
any proposed sale thereunder; or

          (g)
Bankruptcy, reorganization, insolvency or liquidation proceedings, or other
proceedings for relief under any bankruptcy law or any law for the relief of
debtors shall be instituted voluntarily by or involuntarily against the
Company; or

          (h)
The Company shall not deliver to the Holder the shares pursuant to paragraph 4
herein within 30 days of receipt of Notice of Conversion; or 

          (i)
any of the representations or warranties made by the Company herein, in the
Purchase Agreement or the Security Agreement or in any certificate or financial
or other written statements heretofore or hereafter furnished by or on behalf
of the Company in connection with the execution and delivery of this Debenture,
the Purchase Agreement or the Security Agreement shall be false or misleading
in a material respect on the Closing Date; or

          (j)
If the Company is then a “reporting company” it shall fail to make the required
filings or statements with the Securities Exchange Commission by the
appropriate deadlines.

Then, or at
any time thereafter, unless cured, and in each and every such case, unless such
Event of Default shall have been waived in writing by the Holder (which waiver
shall not be deemed to be a waiver of any subsequent default) at the option of
the Holder and in the Holder’s sole discretion, the Holder may consider this
Debenture immediately due and 

5

payable,
without presentment, demand, protest or (further) notice of any kind (other
than notice of acceleration), all of which are hereby expressly waived,
anything herein or in any note or other instruments contained to the contrary
notwithstanding, and the Holder may immediately, and without expiration of any
period of grace, enforce any and all of the Holder’s rights and remedies
provided herein or any other rights or remedies afforded by law. Upon an Event
of Default, interest shall accrue on all amounts outstanding under this
Debenture at the rate of 12% per annum, until such Event of Default is cured or
the principal and all accrued interest under this Debenture is paid in full.

          12.
Priority. This Debenture
represents a prioritized obligation of the Company. However, no recourse shall
be had for the payment of the principal of this Debenture, or for any claim
based hereon, or otherwise in respect hereof, against any incorporator,
shareholder, officer or director, as such, past, present or future, of the
Company or any successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise, all such liability being by the acceptance hereof and as part of the
consideration for the issue hereof, expressly waived and released.

          13.
Severability. In case any
provision of this Debenture is held by a court of competent jurisdiction to be
excessive in scope or otherwise invalid or unenforceable, such provision shall
be adjusted rather than voided, if possible, so that it is enforceable to the
maximum extent possible, and the validity and enforceability of the remaining
provisions of this Debenture will not in any way be affected or impaired
thereby.

          14.
Entire Agreement. This
Debenture, the Purchase Agreement, the Security Agreement and the agreements
referred to in this Debenture constitute the full and entire understanding and
agreement between the Company and the Holder with respect to the subject
hereof. Neither this Debenture nor any term hereof may be amended, waived,
discharged or terminated other than by a written instrument signed by the
Company and the Holder.

          15.
Governing Law. This
Debenture shall be governed by and construed in accordance with the laws of New
York applicable to contracts made and wholly to be performed within the State
of New York and shall be binding upon the successors and assigns of each party
hereto. The Holder and the Company hereby mutually waive trial by jury and
consent to exclusive jurisdiction and venue in the courts of the State of New
York. At Holder’s election, any dispute between the parties may be arbitrated
rather than litigated in the courts, before the American Arbitration
Association in New York City and pursuant to its rules. Upon demand made by the
Holder to the Company, the Company agrees to submit to and participate in such
arbitration. This Agreement may be executed in counterparts, and the facsimile
transmission of an executed counterpart to this Agreement shall be effective as
an original.

16. Miscellaneous.

(a) Notice
of Certain Events. In the case of the occurrence of a Reorganization
described in Section 7 of this Debenture, the Company shall cause to be mailed
to the Holder of this Debenture at its last address as it appears in the
Company’s security registry, at least 

6

twenty (20)
days prior to the applicable record, effective or expiration date hereinafter
specified (or, if such twenty (20) days’ notice is not possible, at the
earliest possible date prior to any such record, effective or expiration date),
a notice thereof, including, if applicable, a statement of the date on which
such Reorganization is expected to become effective, and the date as of which
it is expected that holders of record of the shares will be entitled to
exchange their shares for securities, cash or other property deliverable upon
such Reorganization.

          (b)
Transmittal of Notices. Except as may be otherwise provided herein, any notice
or other communication or delivery required or permitted hereunder shall be in
writing and shall be delivered personally, or sent by telecopier machine or by
a nationally recognized overnight courier service, and shall be deemed given
when so delivered personally, or by telecopier machine or overnight courier
service as follows: 

	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 If to the
 Holder, to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Regent Private Capital,
 LLC

 
	
  

 	
  

 	
 152 West 57th
 Street, 9th Floor

 
	
  

 	
  

 	
 New York, New York 10019

 
	
  

 	
  

 	
 Telephone: 212-792-5304

 
	
  

 	
  

 	
 Facsimile: 646-278-9699

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 With a copy
 to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Kenneth E.
 Dornblaser, Esq.

 
	
  

 	
  

 	
 Johnson,
 Jones, Dornblaser, Coffman & Shorb

 
	
  

 	
  

 	
 15 W. Sixth
 Street, Suite 2200

 
	
  

 	
  

 	
 Tulsa,
 Oklahoma 74119

 
	
  

 	
  

 	
 Telephone:
 918-584-6644

 
	
  

 	
  

 	
 Facsimile:
 918-584-6645

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 If to the
 Holder, to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Vycor
 Medical, Inc.

 
	
  

 	
  

 	
 80 Orville
 Drive, Suite 100

 
	
  

 	
  

 	
 Bohemia, New
 York 11716

 
	
  

 	
  

 	
 Telephone:
 631-244-1435 

 
	
  

 	
  

 	
 Facsimile:
 631-244-1436

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 With a copy
 to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Robert
 Diener

 
	
  

 	
  

 	
 Law Offices
 of Robert Diener

 
	
  

 	
  

 	
 122 Ocean
 Park Blvd. Suite 307

 
	
  

 	
  

 	
 Santa
 Monica, CA 90405

 
	
  

 	
  

 	
 Phone
 310-396-1691 

 
	
  

 	
  

 	
 Fax
 310-362-8887

 

7

Each of the
Holder or the Company may change the foregoing address by notice given pursuant
to this Section 16(b).

          (c)
Attorneys’ Fees. Should any party hereto employ an attorney for the
purpose of enforcing or construing this Debenture, or any judgment based on this
Debenture, in any legal proceeding whatsoever, including insolvency,
bankruptcy, arbitration, declaratory relief or other litigation, the prevailing
party shall be entitled to receive from the other party or parties thereto
reimbursement for all reasonable attorneys’ fees and all reasonable costs,
including but not limited to service of process, filing fees, court and court
reporter costs, investigative costs, expert witness fees, and the cost of any
bonds, whether taxable or not, and that such reimbursement shall be included in
any judgment or final order issued in that proceeding. The “prevailing party”
means the party determined by the court to most nearly prevail and not
necessarily the one in whose favor a judgment is rendered. 

          IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed by
an officer thereunto duly authorized.

Dated:
______________, 2009

	
  

 	
  

 	
  

 
	
  

 	
 VYCOR MEDICAL, INC.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 /s/ Heather Vinas

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	 

 
	
  

 	
 Name:

 	
 Heather
 Vinas

 
	
  

 	
 Title:

 	
 President

 

8

SCHEDULE A

SCHEDULE OF ADVANCES

	
  

 	
  

 
	
 Date

 	
 Amount

 
	 

 	 

 
	
 February 15,
 2008

 	
 $188,380

 
	 

 	 

 
	
 April 15,
 2008

 	
 $265,320

 
	 

 	 

 

9

EXHIBIT I

NOTICE OF CONVERSION

(To be executed by the Registered Holder in
order to Convert the Debenture)

The
undersigned hereby irrevocably elects to convert $___________ of the above
Debenture No. _______ into shares of common stock of Vycor Medical, Inc.
according to the conditions set forth in such Debenture, as of the date written
below. If shares are to be issued in the name of a person other than the
undersigned, the undersigned will pay all transfer and other taxes and charges
payable with respect thereto.

Date of
Conversion

________________________

Applicable
Conversion Price

________________________

Signature

_______________________________________

[Print Name of Holder and Title of Signer]

Address:

_______________________________________

_______________________________________

SSN or EIN:

Shares are to be registered in the following name:

Name:

Address:

Tel:

Fax:

SSN or EIN:

Shares are to
be sent or delivered to the following account:

Account Name:

Address: 

10

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