Document:

EX-10.2

RESTRICTED STOCK AGREEMENT

PURSUANT TO THE

TOWN SPORTS INTERNATIONAL HOLDINGS, INC.

2006 STOCK INCENTIVE PLAN

(as amended and restated effective as of March 26, 2008)

     THIS AGREEMENT (this “Agreement”) made as of the ___ day of                     , 2008, by and between Town Sports
International Holdings, Inc. (the “Company”) and                      (the “Participant”).

WITNESSETH:

     WHEREAS, the Company has adopted the Town Sports International Holdings, Inc. 2006 Stock
Incentive Plan, as amended and restated effective as of March 26, 2008 (the “Plan”), which is
administered by a Committee appointed by the Company’s Board of Directors (the “Committee”); and

     WHEREAS, pursuant to Section 8.1 of the Plan, the Committee may grant to Eligible Employees
shares of its common stock, par value $0.001 per share (“Common Stock”), in the amount set forth
below; and

     WHEREAS, the Shares (as defined below) are to be subject to certain restrictions;

     NOW, THEREFORE, for and in consideration of the mutual promises herein contained, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

     1. Grant of Shares. Subject to the restrictions, terms and conditions of this
Agreement, the Company awarded the Participant [•] shares of validly issued Common Stock (the
“Shares”) on
                     ,
2008 (the “Grant Date”). Pursuant to Section 2 hereof, the Shares are
subject to certain restrictions, which restrictions relate to the passage of time as an employee of
the Company or its Affiliates. While such restrictions are in effect, the Shares subject to such
restrictions shall be referred to herein as “Restricted Stock.”

     2. Restrictions on Transfer. The Participant shall not sell, transfer, pledge,
hypothecate, assign or otherwise dispose of the Shares, except as set forth in the Plan or this
Agreement. Any attempted sale, transfer, pledge, hypothecation, assignment or other disposition of
the Shares in violation of the Plan or this Agreement shall be void and of no effect and the
Company shall have the right to disregard the same on its books and records and to issue “stop
transfer” instructions to its transfer agent.

     3. Restricted Stock.

          (a) Retention of Certificates. Promptly after the date of this Agreement, the
Company shall issue stock certificates representing the Restricted Stock unless, to the extent
permitted under applicable law, it elects to issue the Shares in the form of uncertificated shares
and recognize such ownership through an uncertificated book entry account maintained by the Company
(or its designee) on behalf of the Participant or through another similar method. The stock
certificates shall be registered in the Participant’s name and shall bear any legend required under
the Plan or Section 4(a) hereof Unless held in uncertificated book entry form, such stock
certificates shall be held in custody by the Company (or its designated agent) until the
restrictions thereon shall have lapsed. Upon the Company’s request, the Participant shall deliver
to the Company a duly signed stock power, endorsed in blank, relating to the Restricted Stock. If
the Participant receives a stock dividend on the Restricted Stock or the shares of

 

 

Restricted Stock are split or the Participant receives any other shares, securities, moneys or
property representing a dividend on the Restricted Stock (other than cash dividends on or after the
date of this Agreement) or representing a distribution or return of capital upon or in respect of
the Restricted Stock or any part thereof, or resulting from a split-up, reclassification or other
like changes of the Restricted Stock, or otherwise received in exchange therefor, or any warrants,
rights or options issued to the Participant in respect of the Restricted Stock (collectively “RS
Property”), the Participant will also immediately deposit with and deliver to the Company any of
such RS Property, including, without limitation, any certificates representing shares duly endorsed
in blank or accompanied by stock powers duly executed in blank, and such RS Property shall be
subject to the same restrictions, including, without limitation, the restrictions in this
Section 3(a) hereof, as the Restricted Stock with regard to which they are issued and shall
herein be encompassed within the term “Restricted Stock.”

          (b) Rights with Regard to Restricted Stock. Subject to Section 8, the
Participant will have the right to vote the Restricted Stock, to receive and retain any dividends
payable to holders of record of Restricted Stock on and after the transfer of the Restricted Stock
(although such dividends shall be treated, to the extent required by applicable law, as additional
compensation for tax purposes if paid on Restricted Stock and stock dividends will be subject to
the restrictions provided in Section 3(a)), and to exercise all other rights, powers and
privileges of a holder of Common Stock with respect to the Restricted Stock set forth in the Plan,
except that: (i) the Participant shall not be entitled to delivery of the stock certificate or
certificates representing the Restricted Stock until the Restriction Period shall have expired;
(ii) the Company (or its designated agent) shall retain custody of the stock certificate or
certificates representing the Restricted Stock and the other RS Property during the Restriction
Period; (iii) no RS Property shall bear interest or be segregated in separate accounts during the
Restriction Period; and (iv) the Participant shall not sell, assign, transfer, pledge, exchange,
encumber or dispose of the Restricted Stock during the Restriction Period.

          (c) Vesting. The Restricted Stock shall become vested and cease to be Restricted
Stock (but shall remain subject to Section 5) pursuant to the following schedule, which
shall be cumulative; provided that the Participant has not had a Termination any time prior to the
applicable vesting date:

	 	 	 	 	 
	Vesting Date	 	Number of Shares
	First Anniversary of Grant Date
	 	 	[25%]	 
	Second Anniversary of Grant Date
	 	 	[25%]	 
	Third Anniversary of Grant Date
	 	 	[25%]	 
	Fourth Anniversary of Grant Date
	 	 	[25%]	 

     There shall be no proportionate or partial vesting in the periods prior to each vesting date
and all vesting shall occur only on the appropriate vesting date; provided,
however, that no Termination has occurred prior to such date.

     The Restricted Stock will become fully vested on a Change in Control.

     The provisions of the second paragraph of Section 8.1 of the Plan regarding Detrimental
Activity shall apply to the Restricted Stock.

     When any shares of Restricted Stock become vested, the Company shall promptly issue and
deliver, unless the Company is using book entry, to the Participant a new stock certificate
registered in the

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name of the Participant for such shares of Restricted Stock without the legend set forth in
Section 4(a) and deliver to the Participant any related other RS Property, subject to
applicable withholding.

          (d) Forfeiture. The Participant shall forfeit to the Company, without compensation,
other than repayment of any par value paid by the Participant for the Shares (if any), any and all
Restricted Stock (but no vested Shares) and RS Property upon the Participant’s Termination of
Employment for any reason.

          (e) Withholding. Participant shall pay, or make arrangements to pay, in a manner
satisfactory to the Company, an amount equal to the amount of all applicable federal, state and
local or foreign taxes that the Company is required to withhold at any time. In the absence of
such arrangements, the Company or one of its Affiliates shall have the right to withhold such taxes
from the Participant’s normal pay or other amounts payable to the Participant, including, but not
limited to, the right to withhold any of the Shares otherwise deliverable to the Participant
hereunder. In addition, any statutorily required withholding obligation may be satisfied, in whole
or in part, at the Participant’s election, in the form and manner prescribed by the Committee, by
delivery of shares of Common Stock (including, without limitation, the Shares issued under this
Agreement).

          (f) Section 83(b). If the Participant properly elects (as required by Section 83(b)
of the Code) within 30 days after the issuance of the Restricted Stock to include in gross income
for federal income tax purposes in the year of issuance the fair market value of such shares of
Restricted Stock, the Participant shall pay to the Company or make arrangements satisfactory to the
Company to pay to the Company upon such election, any federal, state or local taxes required to be
withheld with respect to the Restricted Stock. If the Participant shall fail to make such payment,
the Company shall, to the extent permitted by law, have the right to deduct from any payment of any
kind otherwise due to the Participant any federal, state or local taxes of any kind required by law
to be withheld with respect to the Restricted Stock, as well as the rights set forth in Section
3(e). The Participant acknowledges that it is the Participant’s sole responsibility, and not
the Company’s, to file timely and properly the election under Section 83(b) of the Code and any
corresponding provisions of state tax laws if the Participant elects to utilize such election.

          (g) Delivery Delay. The delivery of any certificate representing the Restricted Stock
or other RS Property may be postponed by the Company for such period as may be required for it to
comply with any applicable federal or state securities law, or any national securities exchange
listing requirements and the Company is not obligated to issue or deliver any securities if, in the
opinion of counsel for the Company, the issuance of the Shares shall constitute a violation by the
Participant or the Company of any provisions of any applicable federal or state law or of any
regulations of any governmental authority or any national securities exchange.

          (h) Legend. All certificates representing the Restricted Stock shall have endorsed
thereon the following legends:

“The anticipation, alienation, attachment, sale, transfer, assignment,
pledge, encumbrance or charge of the shares of stock represented hereby are
subject to the terms and conditions (including forfeiture) of the Town
Sports International Holdings, Inc. (the “Company”) 2006 Stock Incentive
Plan (as the same may be amended or amended and restated from time to time,
the “Plan”), and an agreement entered into between the registered owner and
the Company evidencing the award under the Plan. Copies of such Plan and
agreement are on file at the principal office of the Company.”

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          (i) Any legend required to be placed thereon by applicable blue sky laws of any state.

     Notwithstanding the foregoing, in no event shall the Company be obligated to deliver to the
Participant a certificate representing the Restricted Stock prior to the vesting dates set forth
above.

     4. Securities Representations. The Shares are being issued to the Participant and
this Agreement is being made by the Company in reliance upon the following express representations
and warranties of the Participant.

          The Participant acknowledges, represents and warrants that:

          (a) The Participant has been advised that the Participant may be an “affiliate” within the
meaning of Rule 144 under the Securities Act of 1933, as amended (the “Act”) and in this connection
the Company is relying in part on the Participant’s representations set forth in this Section
5.

          (b) If the Participant is deemed an affiliate within the meaning of Rule 144 of the Act, the
Shares must be held indefinitely unless an exemption from any applicable resale restrictions is
available or the Company files an additional registration statement (or a “re-offer prospectus”)
with regard to the Shares and the Company is under no obligation to register the Shares (or to file
a “re-offer prospectus”).

          (c) If the Participant is deemed an affiliate within the meaning of Rule 144 of the Act, the
Participant understands that the exemption from registration under Rule 144 will not be available
unless (i) a public trading market then exists for the Common Stock of the Company, (ii) adequate
information concerning the Company is then available to the public, and (iii) other terms and
conditions of Rule 144 or any exemption therefrom are complied with; and that any sale of the
Shares may be made only in limited amounts in accordance with such terms and conditions.

     5. No Obligation to Continue Employment. This Agreement is not an agreement of
employment. This Agreement does not guarantee that the Company or its Affiliates will employ or
retain, or continue to employ or retain, the Participant during the entire, or any portion of the,
term of this Agreement, including, but not limited to, any period during which the Restricted Stock
is outstanding, nor does it modify in any respect the Company’s or its Affiliate’s right to
terminate or modify the Participant’s employment or compensation.

     6. Power of Attorney. The Company, its successors and assigns are hereby appointed
the attorneys-in-fact, with full power of substitution, of the Participant for the purpose of
carrying out the provisions of this Agreement and taking any action and executing any instruments
which such attorneys-in-fact may deem necessary or advisable to accomplish the purposes of this
Agreement, which appointment as attorneys-in-fact is irrevocable and coupled with an interest. The
Company, as attorney-in-fact for the Participant, may in the name and stead of the Participant,
make and execute all conveyances, assignments and transfers of the Shares and property provided for
in this Agreement, and the Participant hereby ratifies and confirms all that the Company, as said
attorney-in-fact, shall do by virtue hereof. Nevertheless, the Participant shall, if so requested
by the Company, execute and deliver to the Company all such instruments as may, in the judgment of
the Company, be advisable for such purpose.

     7. Rights as a Stockholder. The Participant shall have no rights as a stockholder
with respect to any Restricted Stock unless and until the Participant has become the holder of
record of the Shares, whether the Shares are represented by a certificate or through book entry or
another similar

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method, and no adjustments shall be made for dividends in cash or other property,
distributions or other rights in respect of any Shares, except as otherwise specifically provided
for in the Plan or this Agreement.

     8. Provisions of Plan Control. This Agreement is subject to all the terms, conditions
and provisions of the Plan, including, without limitation, the amendment provisions thereof, and to
such rules, regulations and interpretations relating to the Plan as may be adopted by the Committee
and as may be in effect from time to time. The Plan is incorporated herein by reference.
Capitalized terms in this Agreement that are not otherwise defined shall have the respective
meanings set forth in the Plan. If and to the extent that this Agreement conflicts or is
inconsistent with the terms, conditions and provisions of the Plan, the Plan shall control, and
this Agreement shall be deemed to be modified accordingly. This Agreement contains the entire
understanding of the parties with respect to the subject matter hereof and supersedes any prior
agreements between the Company and the Participant with respect to the subject matter hereof.

     9. Amendment. To the extent applicable, the Board or the Committee may at any time
and from time to time amend, in whole or in part, any or all of the provisions of this Agreement to
comply with Section 409A of the Code and the regulations thereunder or any other applicable law and
may also amend, suspend or terminate this Agreement subject to the terms of the Plan. The award of
Restricted Stock pursuant to this Agreement is not intended to be considered “deferred
compensation” for the purposes of Section 409A of the Code.

     10. Notices. Any notice or communication given hereunder (each, a “Notice”) shall be
in writing and shall be sent by personal delivery, by courier or by regular United States mail,
first class and prepaid, to the appropriate party at the address set forth below:

If to the Company, to:

Town Sports International Holdings, Inc.

5 Penn Plaza — 4th Floor

New York, NY 10001

Attention.: General Counsel

          If to the Participant, to the address of the Participant on file with the Company

          ; or such other address or to the attention of such other person as a party shall have
specified by prior Notice to the other party. Each Notice shall only be given and effective upon
actual receipt (or refusal of receipt).

     11. Acceptance. As required by Section 8.2(b) of the Plan, the Participant shall
forfeit the Restricted Stock if the Participant does not execute this Agreement within a period of
60 days from the date the Participant receives this Agreement (or such other period as the
Committee shall provide).

     12. Non-Compete; Nonsolicitation.

          (a) (i) As an inducement to the Company to enter into this Agreement and to grant the Shares,
the Participant agrees that (A) during the Participant’s period of employment with the Company or
any of its Affiliates, and (B) if the Participant resigns or the Participant’s employment is
terminated by the Company or any of its Affiliates for any reason, during the period which the
Company or any of its Affiliates is paying the Participant severance compensation (which shall be
at a rate and an amount equal to the Participant’s base salary received by the Participant
immediately prior to the

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Participant’s Termination of Employment), such period not to exceed one year (the “Noncompete
Period”), the Participant shall not, directly or indirectly, own, manage, control, participate in,
consult with, render services for, or in any manner engage in, any business competing directly or
indirectly with the business as conducted by the Company or any of its Affiliates during the
Participant’s period of employment with the Company or any of its Affiliates or at the time of the
Participant’s Termination of Employment or with any other business that is the logical extension of
the Company’s and its Affiliates’ business during the Participant’s period of employment with the
Company or any of its Affiliates or at the time of the Participant’s Termination of Employment,
within any metropolitan area in which the Company or any of its Affiliates engages or has
definitive plans to engage in such business; provided, however, that (1) the Participant shall not
be precluded from purchasing or holding publicly traded securities of any entity so long as the
Participant shall hold less than 2% of the outstanding units of any such class of securities and
has no active participation in the business of such entity, and (2) the Company shall have notified
the Participant of its agreement to provide (or cause to be provided) such severance compensation
(x) in the event of resignation, within five days following the date of the Participant’s
Termination of Employment, or (y) in the event of termination, on or before the date of the
Participant’s Termination of Employment. Notwithstanding anything contained herein to the contrary,
the Participant’s agreement set forth in clause (B) above shall not apply if the date of the
Participant’s Termination of Employment occurs after the fifth anniversary of the Grant Date.

          (ii) During the Noncompete Period, the Participant shall not directly or indirectly (A) induce
or attempt to induce any employee of the Company or any of its Affiliates to leave the employ of
the Company or any of its Affiliates, or in any way interfere with the relationship between the
Company or any of its Affiliates and any employee thereof, (B) hire any person who was an employee
of the Company or any of its Affiliates at any time during the Participant’s employment period
except for such employees who have been terminated for at least six months, or (C) induce or
attempt to induce any customer, supplier, licensee, franchisor or other business relation of the
Company or any of its Affiliates to cease doing business with such member, or in any way interfere
with the relationship between any such customer, supplier, licensee, franchisor or business
relation, on the one hand, and the Company or any of its Affiliates, on the other hand.

          (iii) The provisions of this Section 13(a) shall survive any expiration or termination
of this Agreement, any Termination of Employment of the Participant, or any forfeiture of the
shares of Restricted Stock.

          (iv) If it is determined by a court of competent jurisdiction that any of the provisions of
this Section 13(a) is excessive in duration or scope or otherwise is unenforceable, then
such provision may be modified or supplemented by the court to render it enforceable to the maximum
extent permitted by law.

          (b) The Participant acknowledges that the Participant may have access to certain confidential,
non-public and proprietary information (the “Confidential Information”), concerning the Company and
its Affiliates and their respective officers, directors, stockholders, employees, agents and
representatives and agrees that: (i) unless pursuant to prior written consent by the Company, the
Participant shall not disclose any Confidential Information to any Person for any purpose
whatsoever unless compelled by court order or subpoena; (ii) the Participant shall treat as
confidential all Confidential Information and shall take reasonable precautions to prevent
unauthorized access to the Confidential Information; (iii) the Participant shall not use the
Confidential Information in any way detrimental to the Company or any of its Affiliates and shall
use the Confidential Information for the exclusive purpose of effecting the Participant’s duties of
employment with the Company or any of its Affiliates; and (iv) the Participant agrees that the
Confidential Information obtained during the Participant’s employment with the Company shall remain
the exclusive property of the Company and its Affiliates, and the Participant

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shall promptly return to the Company all material which incorporates, or is derived from, all
such Confidential Information upon termination of the Participant’s employment with the Company or
any of its Affiliates. It is hereby agreed that Confidential Information does not include
information generally available and known to the public other than through the disclosure thereof
by or through the Participant or obtained from a source not bound by a confidentiality agreement
with the Company or any of its Affiliates.

          (c) The Participant hereby agrees that all inventions, innovations or improvements in the
method of conducting the business (including, without limitation, improvements, ideas and
discoveries, whether patentable or not) of the Company or any of its Affiliates, whether prior to
the date hereof or thereafter, in each case conceived or made by the Participant in the course of
the Participant’s employment with the Company or any of its Affiliates, belong to the Company and
its Affiliates, except for such inventions, innovations and improvements that have become part of
the public domain other than through the disclosure thereof by or through the Participant and are
not entitled to statutory or common law protection. The Participant will promptly disclose such
inventions, innovation or improvements to the Company and perform all actions reasonably requested
by the Company to establish and confirm such ownership by the Company or any of its Affiliates.

     13. Waiver of Jury Trial. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT IT MAY HAVE TO
TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, VERBAL OR WRITTEN STATEMENT OR ACTION
OF ANY PARTY HERETO.

     14. Miscellaneous.

          (a) This Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective heirs, legal representatives, successors and assigns.

          (b) All questions concerning the construction, validity and interpretation of this Agreement
will be governed by, and construed in accordance with, the domestic laws of the State of New York,
without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of New York.

          (c) In the event of any dispute, controversy or claim between the Company or any Affiliate and
the Participant in any way concerning, arising out of or relating to the Plan or this Agreement (a
“Dispute”), including without limitation any Dispute concerning, arising out of or relating to the
interpretation, application or enforcement of the Plan or this Agreement, the parties hereby (i)
agree and consent to the personal jurisdiction of the courts of the State of New York located in
New York County and/or the Federal courts of the United States of America located in the Southern
District of New York (collectively, the “Agreed Venue”) for resolution of any such Dispute, (ii)
agree that those courts in the Agreed Venue, and only those courts, shall have exclusive
jurisdiction to determine any Dispute, including, without limitation, any appeal, and (iii) agree
that any cause of action arising out of this Agreement shall be deemed to have arisen from a
transaction of business in the State of New York. The parties also hereby irrevocably (A) submit
to the jurisdiction of any competent court in the Agreed Venue (and of the appropriate appellate
courts therefrom), (B) to the fullest extent permitted by law, waive any and all defenses the
parties may have on the grounds of lack of jurisdiction of any such court and any other objection
that such parties may now or hereafter have to the laying of the venue of any such suit, action or
proceeding in any such court (including without limitation any defense that any such suit, action
or proceeding brought in any such court has been brought in an inconvenient forum), and (C) consent
to

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service of process in any such suit, action or proceeding, anywhere in the world, whether
within or without the jurisdiction of any such court, in any manner provided by applicable law.
Without limiting the foregoing, each party agrees that service of process on such party pursuant to
a notice as provided in Section 11 shall be deemed effective service of process on such
party. Any action for enforcement or recognition of any judgment obtained in connection with a
Dispute may enforced in any competent court in the Agreed Venue or in any other court of competent
jurisdiction.

          (d) This Agreement may be executed in one or more counterparts, all of which taken together
shall constitute one contract.

          (e) The failure of any party hereto at any time to require performance by another party of any
provision of this Agreement shall not affect the right of such party to require performance of that
provision, and any waiver by any party of any breach of any provision of this Agreement shall not
be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the
provision itself, or a waiver of any right under this Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above
written.

	 	 	 	 	 
	 	TOWN SPORTS INTERNATIONAL HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	PARTICIPANT

 	 
	
 	 
	SignatureEX-10.1

Exhibit 10.1

SUBSCRIPTION AGREEMENT

Electro-Optical Sciences, Inc.

3 West Main Street, Suite 201

Irvington, New York 10533

Ladies and Gentlemen:

The undersigned (the “Investor”) hereby confirms its agreement with you as follows:

	 	1.	 	This Subscription Agreement, including the Terms and Conditions For Purchase
of Shares attached hereto as Annex I (this “Agreement”), is made as of the
date set forth below between Electro-Optical Sciences, Inc., a Delaware corporation
(the “Company”), and the Investor.
	 
	 	2.	 	The Company has authorized the sale and issuance to certain investors of up
to an aggregate of 2,088,451 shares (the “Shares”) of its common stock, par value
$0.001 per share (the “Common Stock”), subject to adjustment by the Company’s Board of
Directors, or a committee thereof, for a purchase price of $5.68 per share (the
“Purchase Price”).
	 
	 	3.	 	The offering and sale of the Shares (the “Offering”) are being made pursuant
to (a) an effective Registration Statement on Form S-3 (including the Prospectus
contained therein (the “Base Prospectus”), File No. 333-151935, the “Registration
Statement”) filed by the Company with the Securities and Exchange Commission (the
“Commission”), (b) if applicable, certain “free writing prospectuses” (as that term is
defined in Rule 405 under the Securities Act of 1933, as amended (the “Act”)), that
have or will be filed with the Commission and delivered to the Investor on or prior to
the date hereof and (c) a Prospectus Supplement (the “Prospectus Supplement” and
together with the Base Prospectus, the “Prospectus”) containing certain supplemental
information regarding the Shares and terms of the Offering that will be filed with the
Commission and delivered to the Investor (or made available to the Investor by the
filing by the Company of an electronic version thereof with the Commission).
	 
	 	4.	 	The Company and the Investor agree that the Investor will purchase from the
Company and the Company will issue and sell to the Investor the Shares of Common Stock
set forth below for the aggregate purchase price set forth below. The Shares shall be
purchased pursuant to the Terms and Conditions for Purchase of Shares attached hereto
as Annex I and incorporated herein by this reference as if fully set forth
herein. The Investor acknowledges that the Offering is not being underwritten by
Needham & Company, LLC, the placement agent named in the Prospectus Supplement (the
“Placement Agent”), and that there is no minimum offering amount.

 

 

	 	5.	 	The manner of settlement of the Shares purchased by the Investor shall be
delivery by electronic book-entry at The Depository Trust Company (“DTC”), registered
in the Investor’s name and address as set forth below, and released by American Stock
Transfer & Trust Company, the Company’s transfer agent (the “Transfer Agent”), to the
Investor at the Closing. NO LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF
THIS AGREEMENT BY THE INVESTOR AND THE COMPANY, THE INVESTOR SHALL:

	 	(I)	 	DIRECT THE BROKER-DEALER AT WHICH THE ACCOUNT OR ACCOUNTS TO BE
CREDITED WITH THE SHARES ARE MAINTAINED TO SET UP A DEPOSIT/WITHDRAWAL
AT CUSTODIAN (“DWAC”) INSTRUCTING THE TRANSFER AGENT TO CREDIT SUCH
ACCOUNT OR ACCOUNTS WITH THE SHARES, AND
	 
	 	(II)	 	REMIT BY WIRE TRANSFER THE AMOUNT OF FUNDS EQUAL TO THE AGGREGATE
PURCHASE PRICE FOR THE SHARES BEING PURCHASED BY THE INVESTOR TO THE
FOLLOWING ACCOUNT:

HSBC Bank USA

Attention: Berta Polonia

452 5th Avenue, 26th Floor

New York, New York 10018

ABA # 021001088

Account Name: Electro Optical Sciences Inc

Account Number: 134773080

 

	 	 	 	IT IS THE INVESTOR’S RESPONSIBILITY TO (A) MAKE THE NECESSARY WIRE TRANSFER IN A
TIMELY MANNER AND (B) ARRANGE FOR SETTLEMENT BY WAY OF DWAC IN A TIMELY MANNER. IF THE
INVESTOR DOES NOT DELIVER THE AGGREGATE PURCHASE PRICE FOR THE SHARES OR DOES NOT MAKE
PROPER ARRANGEMENTS FOR SETTLEMENT IN A TIMELY MANNER, THE SHARES MAY NOT BE DELIVERED
AT CLOSING TO THE INVESTOR OR THE INVESTOR MAY BE EXCLUDED FROM THE CLOSING
ALTOGETHER.
	 
	 	6.	 	The Investor represents that, except as set forth below, (a) it has had no
position, office or other material relationship within the past three years with the
Company or persons known to it to be affiliates of the Company, (b) it is not a FINRA
member or an Associated Person (as such term is defined under the FINRA Membership and
Registration Rules Section 1011) as of the Closing, and (c) neither the Investor nor
any group of Investors (as identified

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	 	 	 	in a public filing made with the Commission) of which the Investor is a part in
connection with the Offering of the Shares, acquired, or obtained the right to acquire,
20% or more of the Common Stock (or securities convertible into or exercisable for
Common Stock) or the voting power of the Company on a post-transaction basis.
Exceptions:
	 

 

(If no exceptions, write “none.” If left blank, response will be deemed to be “none.”)

	 	7.	 	The Investor represents that it has received (or otherwise had made available
to it by the filing by the Company of an electronic version thereof with the
Commission) the Base Prospectus, dated July 7, 2008, which is a part of the Company’s
Registration Statement, the documents incorporated by reference therein and any free
writing prospectus (collectively, the “Disclosure Package”), prior to or in connection
with the receipt of this Agreement. The Investor acknowledges that, prior to the
delivery of this Agreement to the Company, the Investor will receive certain
additional information regarding the Offering, including pricing information (the
“Offering Information”). Such information may be provided to the Investor by any means
permitted under the Act, including the Prospectus Supplement, a free writing
prospectus and oral communications.
	 
	 	8.	 	No offer by the Investor to buy the Shares will be accepted and no part of
the Purchase Price will be delivered to the Company until the Investor has received
the Offering Information and the Company has accepted such offer by countersigning a
copy of this Agreement, and any such offer may be withdrawn or revoked, without
obligation or commitment of any kind, at any time prior to the Company (or the
Placement Agent on behalf of the Company) sending (orally, in writing or by electronic
mail) notice of its acceptance of such offer. An indication of interest will involve
no obligation or commitment of any kind until the Investor has been delivered the
Offering Information and this Agreement is accepted and countersigned by or on behalf
of the Company.

3

 

Number of Shares:
                    
                    

Purchase Price Per Share: $
                           

Aggregate Purchase Price: $
                          

Please confirm that the foregoing correctly sets forth the agreement between us by signing in the
space provided below for that purpose.
 

	 	 	 	 	 
	 	 	Dated as of:                      , 2008
	 
	 	 	 	 
	 	 	 
	 

	 	INVESTOR	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Print Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 

Agreed and Accepted

this                     day of                      , 2008
 

	 	 	 	 	 
	ELECTRO-OPTICAL SCIENCES, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	Title:
	 	 	 	 

4

 

ANNEX I 

TERMS AND CONDITIONS FOR PURCHASE OF SHARES

     1. Authorization and Sale of the Shares. Subject to the terms and conditions of this
Agreement, the Company has authorized the sale of the Shares.

     2. Agreement to Sell and Purchase the Shares; Placement Agents.

          2.1 At the Closing (as defined in Section 3.1), the Company will sell to the Investor,
and the Investor will purchase from the Company, upon the terms and conditions set forth herein,
the number of Shares set forth on the last page of the Agreement to which these Terms and
Conditions for Purchase of Shares are attached as Annex I (the “Signature Page”) for the
aggregate purchase price therefor set forth on the Signature Page.

          2.2 The Company proposes to enter into substantially this same form of Subscription Agreement
with certain other investors (the “Other Investors”) and expects to complete sales of Shares to
them. The Investor and the Other Investors are hereinafter sometimes collectively referred to as
the “Investors,” and this Agreement and the Subscription Agreements executed by the Other Investors
are hereinafter sometimes collectively referred to as the “Agreements.”

          2.3 Investor acknowledges that the Company has agreed to pay the Placement Agent a fee (the
“Placement Fee”) in respect of the sale of Shares to the Investor.

          2.4 The Company has entered into a Placement Agency Agreement, dated July 31, 2008 (the
“Placement Agreement”), with the Placement Agent that contains certain representations, warranties,
covenants and agreements of the Company. The Company confirms that neither it nor any officer,
director or duly authorized representative has provided the Investor with material, non-public
information.

     3. Closings and Delivery of the Shares and Funds.

          3.1 Closing. The completion of the purchase and sale of the Shares (the “Closing”)
shall occur at a place and time (the “Closing Date”) to be specified by the Company and the
Placement Agent and of which the Investors will be notified in advance by the Placement Agent, in
accordance with Rule 15c6-1 promulgated under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). At the Closing, (a) the Company shall cause the Transfer Agent to deliver to the
Investor the number of Shares set forth on the Signature Page registered in the name of the
Investor or, if so indicated on the Investor Questionnaire attached hereto as Exhibit A, in
the name of a nominee designated by the Investor and (b) the aggregate purchase price for the
Shares being purchased by the Investor will be delivered by or on behalf of the Investor to the
Company.

          3.2 Conditions to the Company’s Obligations.

               (a) The Company’s obligation to issue and sell the Shares to the Investor shall be subject to:
(i) the receipt by the Company of the purchase price for the Shares

A-1

 

being purchased hereunder as set forth on the Signature Page and (ii) the accuracy of the
representations and warranties made by the Investor and the fulfillment of those undertakings of
the Investor to be fulfilled prior to the Closing Date.

               (b) Conditions to the Investor’s Obligations. The Investor’s obligation to purchase
the Shares will be subject to the accuracy of the representations and warranties made by the
Company hereunder and the fulfillment of those undertakings of the Company hereunder to be
fulfilled prior to the Closing Date, and to the condition that the Placement Agent shall not have:
(i) terminated the Placement Agreement pursuant to the terms thereof or (ii) determined that the
conditions to the closing in the Placement Agreement have not been satisfied. The Investor’s
obligations are expressly not conditioned on the purchase by any or all of the Other Investors of
the Shares that they have agreed to purchase from the Company.

          3.3 Delivery of Funds. At the Closing, the Investor shall remit by wire transfer the amount
of funds equal to the aggregate purchase price for the Shares being purchased by the Investor to
the following account designated by the Company:

HSBC Bank USA

Attention: Berta Polonia

452 5th Avenue, 26th Floor

New York, New York 10018

ABA # 021001088

Account Name: Electro Optical Sciences Inc

Account Number: 134773080

          3.4 Delivery of Shares. No later than one (1) business day after the execution of this
Agreement by the Investor and the Company, the Investor shall direct the broker-dealer at which
the account or accounts to be credited with the Shares being purchased by such Investor are
maintained, which broker/dealer shall be a DTC participant, to set up a DWAC instructing American
Stock Transfer & Trust Company, the Company’s transfer agent, to credit such account or accounts
with the Shares by means of an electronic book-entry delivery. Such DWAC shall indicate the
settlement date for the deposit of the Shares, which date shall be provided to the Investor by the
Placement Agent. Simultaneously with the delivery to the Company of the funds pursuant to
Section 3.3 above, the Company shall direct its transfer agent to credit the Investor’s
account or accounts with the Shares pursuant to the information contained in the DWAC.

     4. Representations, Warranties and Covenants of the Investor.

     The Investor acknowledges, represents and warrants to, and agrees with, the Company and the
Placement Agent that:

          4.1 The Investor (a) is an “accredited investor” (as such term is defined in Section 501(a) of
the Act), (b) is knowledgeable, sophisticated and experienced in making, and is qualified to make
decisions with respect to, investments in shares presenting an investment decision like that
involved in the purchase of the Shares, including investments in securities issued by the Company
and investments in

A-2

 

comparable companies, (c) is capable of bearing a loss of the entire amount of such Investor’s
purchase of the Shares, based on the Investor’s net worth, annual income and liquid assets, (d) is
suitable to make an investment in the amount of Shares such Investor plans to purchase, based on
such Investor’s net worth, annual income and liquid assets, and based on such Investor’s past
experience in investing in comparable companies, (e) has answered all questions on the Signature
Page and the Investor Questionnaire and the answers thereto are true and correct as of the date
hereof and will be true and correct as of the Closing Date and (f) in connection with its decision
to purchase the number of Shares set forth on the Signature Page, has received and is relying only
upon the Disclosure Package, the documents incorporated by reference therein and the Offering
Information.

          4.2(a) No action has been or will be taken in any jurisdiction outside the United States by
the Company or the Placement Agent that would permit an offering of the Shares, or possession or
distribution of offering materials in connection with the issue of the Shares in any jurisdiction
outside the United States where action for that purpose is required, and (b) if the Investor is
outside the United States, it will comply with all applicable laws and regulations in each foreign
jurisdiction in which it purchases, offers, sells or delivers Shares or has in its possession or
distributes any offering material, in all cases at its own expense.

          4.3(a) The Investor has full right, power, authority and capacity to enter into this Agreement
and to consummate the transactions contemplated hereby and has taken all necessary action to
authorize the execution, delivery and performance of this Agreement, and (b) this Agreement
constitutes a valid and binding obligation of the Investor enforceable against the Investor in
accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting
parties’ rights generally and except as enforceability may be subject to general principles of
equity (regardless of whether such enforceability is considered in a proceeding in equity or at
law).

          4.4 The Investor understands that nothing in this Agreement, the Prospectus or any other
materials presented to the Investor in connection with the purchase and sale of the Shares
constitutes legal, tax or investment advice. The Investor has consulted such legal, tax and
investment advisors as it, in its sole discretion, has deemed necessary or appropriate in
connection with its purchase of Shares.

          4.5 Since the date on which the Placement Agent first contacted such Investor about the
Offering, the Investor has not engaged in any transactions in the securities of the Company
(including, without limitation, any Short Sales involving the Company’s securities), and has not
violated its obligations of confidentiality. Each Investor covenants that it will not engage in any
transactions in the securities of the Company (including Short Sales) prior to the time that the
transactions contemplated by this Agreement are publicly disclosed. Each Investor agrees that it
will not use any of the Shares acquired pursuant to this Agreement to cover any short position in
the Common Stock if doing so would be in violation of applicable securities laws. For purposes
hereof, “Short Sales” include, without limitation, all “short sales” as defined in Rule 200
promulgated under Regulation SHO under the Exchange Act, whether or not against the box, and all
types of direct and indirect stock pledges, forward sales contracts, options, puts, calls, short
sales,

A-3

 

swaps, “put equivalent positions” (as defined in Rule 16a-1(h) under the Exchange Act) and
similar arrangements (including on a total return basis), and sales and other transactions through
non-US broker dealers or foreign regulated brokers.

          4.6 The Investor represents that (a) it has had no position, office or other material
relationship within the past three years with the Company or persons known to it to be affiliates
of the Company, (b) neither it, nor any group of which it is a member or to which it is related,
beneficially owns (including the right to acquire or vote) any securities of the Company, and (c)
it is not a, and it has no direct or indirect affiliation or association with any, FINRA member as
of the date hereof.

     5. Survival of Representations, Warranties and Agreements; Third Party Beneficiary.
Notwithstanding any investigation made by any party to this Agreement or by the Placement Agent,
all covenants, agreements, representations and warranties made by the Company and the Investor
herein will survive the execution of this Agreement, the delivery to the Investor of the Shares
being purchased and the payment therefor. The Placement Agent shall be a third party beneficiary
with respect to the representations, warranties and agreements of the Investor in Section 4 hereof.

     6. Notices. All notices, requests, consents and other communications hereunder will be in
writing, will be mailed (a) if within the domestic United States by first-class registered or
certified airmail, or nationally recognized overnight express courier, postage prepaid, or by
facsimile or (b) if delivered from outside the United States, by International Federal Express or
facsimile, and will be deemed given (i) if delivered by first-class registered or certified mail
domestic, three business days after so mailed, (ii) if delivered by nationally recognized overnight
carrier, one business day after so mailed, (iii) if delivered by International Federal Express, two
business days after so mailed and (iv) if delivered by facsimile, upon electric confirmation of
receipt and will be delivered and addressed as follows:

 

          If to the Company, to:

Electro-Optical Sciences, Inc.

3 West Main Street, Suite 201

Irvington, New York 10533

Attention: Chief Financial Officer

If to the Investor, to its address on the Signature Page hereto, or at such other
address or addresses as may have been furnished to the Company in writing.

     7. Changes. This Agreement may not be modified or amended except pursuant to an instrument in
writing signed by the Company and the Investor.

     8. Headings. The headings of the various sections of this Agreement have been inserted for
convenience of reference only and will not be deemed to be part of this Agreement.

     9. Severability. The provisions of this Agreement are severable and, in the event that any
court or officials of any regulatory agency of competent jurisdiction shall

A-4

 

determine that any one or more of the provisions or part of the provisions contained in this
Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provision or part of a
provision of this Agreement and this Agreement shall be reformed and construed as if such invalid
or illegal or unenforceable provision, or part of such provision, had never been contained herein,
so that such provisions would be valid, legal and enforceable to the maximum extent possible, so
long as such construction does not materially adversely affect the economic rights of either party
hereto.

     10. Governing Law; Jurisdiction; Venue.

               (a) This Agreement shall be governed by and construed under the laws of the State of New York,
without regard to conflicts of laws principles, and all rights and remedies hereunder or with
respect hereto shall be governed by such laws.

               (b) Any legal action or proceeding with respect to this Agreement or any other document
delivered in connection herewith shall be brought exclusively in any state or federal court of
competent jurisdiction in the state, county and city of New York. By execution and delivery of
this Agreement, each party hereto irrevocably consents to and accepts, for itself and in respect of
its property, generally and unconditionally the exclusive jurisdiction of such courts. Each party
hereto further irrevocably waives any objection, including any objection to the laying of venue or
based on the grounds of forum non conveniens, which it may now or hereafter have to
bringing of any action or proceeding in such jurisdiction in respect of this Agreement or any other
document delivered in connection herewith.

               (c) Each party hereto hereby irrevocably consents to the service of process out of any of the
courts referred to in subsection (b) of this Section in any suit, action or proceeding by the
mailing of copies thereof by registered or certified mail, postage prepaid, to it at its address
set forth in this Agreement. Each party hereto hereby irrevocably waives any objection to such
service of process and further irrevocably waives and agrees not to plead or claim in any suit,
action or proceeding commenced hereunder or under any other document delivered in connection
herewith that service of process was in any way invalid or ineffective. Nothing herein shall
affect the right of a party to serve process on the other party in any other manner permitted by
applicable law.

     11. Counterparts. This Agreement may be executed in two or more counterparts, each of which
will constitute an original, but all of which, when taken together, will constitute but one
instrument, and will become effective when one or more counterparts have been signed by each party
hereto and delivered to the other parties. The Company and the Investor acknowledge and agree that
the Company shall deliver its counterpart to the Investor along with the Prospectus Supplement (or
the filing by the Company of an electronic version thereof with the Commission).

     12. Confirmation of Sale. The Investor acknowledges and agrees that such Investor’s receipt of
the Company’s counterpart to this Agreement, together with the Prospectus Supplement (or the filing
by the Company of an electronic version thereof with the Commission), shall constitute written
confirmation of the Company’s sale of Shares to such Investor.

A-5

 

     13. Press Release. The Company and the Investor agree that the Company shall issue a press
release announcing the Offering prior to the opening of the financial markets in New York City on
the business day immediately after the date hereof. The Investor shall not issue any other press
release or make any other public announcement relating to this Agreement unless (a) the content
thereof is mutually agreed to by the Company and the Investor or (b) the Investor is advised by its
counsel that such press release or public announcement is required by law.

     14. Termination. In the event that the Placement Agreement is terminated by the Placement
Agent pursuant to the terms thereof, this Agreement shall terminate without any further action on
the part of the parties hereto.

A-6

 

Exhibit A 

ELECTRO-OPTICAL SCIENCES, INC.

INVESTOR QUESTIONNAIRE

     Pursuant to Section 3 of Annex I to the Agreement, please provide us with the
following information:

 

	 	 	 	 	 
	1.

	 	The exact name that your Shares
are to be registered in. You may
use a nominee name if
appropriate:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	2.

	 	The relationship between the
Investor and the registered
holder listed in response to item
1 above:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	3.

	 	The mailing address of the
registered holder listed in
response to item 1 above:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	4.

	 	The Social Security Number or Tax
Identification Number of the
registered holder listed in the
response to item 1 above:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	5.

	 	Name of DTC Participant
(broker-dealer at which the
account or accounts to be
credited with the Shares are
maintained):	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	6.

	 	DTC Participant Number:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	7.

	 	Name of Account at DTC
Participant being credited with
the Shares:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	8.

	 	Account Number at DTC Participant
being credited with the Shares:

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