Document:

EXHIBIT 10.4

EMPLOYMENT AGREEMENT

          AGREEMENT
(the “Agreement”) dated as of December 29, 2009, between VYCOR MEDICAL, INC., a Delaware corporation
(“Company”), and HEATHER N. VINAS, an individual (“Executive”).

          This
Agreement replaces and supersedes in all respects all prior employment
agreements and arrangements between the Company and the Executive, including
but not limited to that certain Employment Agreement between the parties dated
as of January 1, 2008.

          Company
desires to employ Executive, and Executive desires to be employed, as President
(“President”) of Company, in each case, on the terms and subject to the
conditions set forth in this Agreement.

          This
Agreement is entered into by the parties as part and parcel of a restructuring
arrangement (the “Restructuring”) by and between the Company and Fountainhead
Capital Management Limited (“Fountainhead”). This Agreement shall take effect
concurrent with the closing of the Restructuring and will be of no force and effect
unless and until the closing of the restructuring.

          Accordingly,
each party hereto hereby agrees as follows:

1. TERM OF AGREEMENT

          The
term of this Agreement will commence on the date first set forth above and will
continue until a date which is ninety (90) days thereafter (the “Initial
Term”). At the conclusion of the Initial Term, and each successive term
thereafter, this Agreement will be automatically renewed for an additional
thirty (30) day term, unless either party hereto gives written notice to the
other party of its intention to terminate this Agreement at least 30 days prior
to the automatic renewal date.

2. EMPLOYMENT

          2.1
Position
and Duties. Executive will serve as Company’s President, reporting
directly to Company’s Board of Directors (the “Board”), and will have the
general powers, duties and responsibilities of management usually vested in
that office in a corporation and such additional powers and duties as may be
prescribed from time to time by the Board, which may include services for one
or more subsidiaries or affiliates of Company. Executive’s responsibilities are
detailed in Exhibit A attached hereto and incorporated by reference, with the
understanding that such description is not intended to be exclusive, and will
receive performance appraisals on or about each anniversary of this Agreement
by the compensation committee of the Board. 

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          2.2
Other
Services. Company acknowledges that Executive may do educational and
charity work and conduct personal business as long as such activities do not
interfere with Executive’s duties hereunder.

3. COMPENSATION

          3.1
Compensation.
During the term of this Agreement, Company will pay the amounts and provide the
benefits described in this Section 3, and Executive agrees to accept such
amounts and benefits in full payment for Executive’s services under this
Agreement.

          3.2
Base
Salary. Commencing the date of this Agreement, the Company will pay
to Executive a base salary of $8,500.00 per month, payable in bi-weekly
instalments in accordance with Company’s standard payroll practices, less
applicable withholding. On the earlier to occur of (i) the closing of a Company
fundraising of more than $1.5 million, or (ii) the Company’s achievement of positive
cash flow (based upon financial statements prepared in accordance with US GAAP)
for at least three consecutive months, the base salary shall increase effective
the beginning of the immediately succeeding fiscal quarter to the equivalent of
$165,000 per annum. Notwithstanding the foregoing, if the Company’s cash flow
calculated on the same basis for any of the succeeding three months is
negative, Executive agrees to discuss an adjustment of such increased base
salary until the Company again achieves positive cash flow for a period of
three consecutive months. In addition, any increase in salary shall also be
subject to the agreement of any new investors in the Company who make their
investment following the date of this Agreement. Other than the foregoing, no
increase in base salary shall be approved by the Company without the expressed
consent of Fountainhead Capital Management Limited.

          3.3
Cash
Bonus. In addition to Base Salary, Executive shall be paid an
incremental cash bonus, payable monthly in arrears, equivalent to 5% per month
of the Company’s gross profit (sales, less commission, less Cost of Goods Sold)
over $7,155 per month. Incremental sales must be on normal payment terms.

          3.4
Accrual of Past Salary. Executive
acknowledges that the Company has accrued past, but unpaid, salaries payable to
the Executive in the amount of $70,643 (the “Accrued Salary”). Executive waives
any claim to any amount of additional unpaid salary through the date of this
Agreement. The Accrued Salary is hereby converted into a contingent retention
bonus payable (assuming that the Executive continues to be in the employ of the
Company at the time) either on the closing of a Company fundraising of more
than $1.5 million or on the sale of the Company (or substantially all of its
assets) at a value above $3 million. Should the Executive be Terminated Without
Cause or Resign With Good Reason within a period of six months prior to either
of these two events occurring, the retention bonus will be payable

          3.5
Equity
Incentive Plan. Prior to March 31, 2010, the Company’s Board of
Directors, subject to the approval of Fountainhead, shall develop an incentive
plan for Management which will provide incentive compensation for Management
and key employees consistent with industry standards based on the achievement
of pre-determined financial milestones. 

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          3.6
Fringe
Benefits. Company will provide to Executive health care insurance,
insurance and other employee benefits which have been provided by the Company
consistent with past practices and the Company’s Employee Manual 

          3.7
Automobile
Allowance. None.

          3.8
Paid
Vacation. Executive will accrue, on a daily basis, a total of three
workweeks of paid vacation (“Vacation”) per year following the date of this
Agreement. This Vacation will be in addition to normal Company holidays, which
will be determined at the discretion of Company from time to time. Any accrued
but unused Vacation (up to such limits as Company may establish) will be paid
to Executive, on a pro rata basis, at the time that his employment is
terminated. 

          3.9
Deductions
from Compensation. Company will deduct and withhold from all
compensation payable to Executive all amounts required to be deducted or withheld
pursuant to any present or future law, ordinance, regulation, order, writ,
judgment, or decree requiring such deduction and withholding.

4.
REIMBURSEMENT OF CERTAIN EXPENSES

          4.1
Travel
and Other Expenses. Company will pay to or reimburse Executive for
reasonable and necessary business, travel, promotional, professional continuing
education and licensing costs (to the extent required), professional society
membership fees, seminars and similar expenditures incurred by Executive for
which Executive submits appropriate receipts and indicates the amount, date,
location and business character in a timely manner.

          4.2
Liability
Insurance. Company will add Executive to the coverage of Company’s
officers and directors’ insurance and other liability insurance policies,
consistent with usual and reasonable business practices, to cover Executive
against insurable events related to his employment with Company.

          4.3
Indemnification.
The Company shall indemnify the Executive, and hold him harmless, to the
maximum extent permitted under law, if he is a party or is threatened to be
made a party to any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative, other
than an action by or in the right of the Company or its affiliates, by reason
of the fact that the Executive is or was a director, officer, employee or agent
of the Company or its affiliates, or is or was serving at the request of the
Company as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, against all expenses,
including attorneys’ fees, judgments, fines and amounts paid in settlement.
Expenses incurred by the Executive in defending a civil or criminal action,
suit or proceeding referenced herein shall be promptly and timely paid by the
Company in advance of the final disposition of such action, suit or proceeding
at the written request of the Executive, provided the Executive agrees to repay
such amount to the extent that it is ultimately determined that the Executive
is not entitled to indemnification. The right to indemnification or advances as

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provided by this Agreement
shall be enforceable by the Executive in any court of competent jurisdiction.
The Executive’s expenses incurred in connection with successfully establishing
the Executive’s right to indemnification or advances, in whole or in part, in
any civil or criminal action, suit or proceeding shall also be indemnified by
the Company. Notwithstanding any other provision of this Agreement, the Company
hereby agrees to indemnify the Executive to the full extent permitted by law,
notwithstanding that such indemnification is not specifically authorized by the
other provisions of this Agreement, the Company’s Certificate of Incorporation,
the Bylaws or by statute. In the event of any changes, after the date of this
Agreement, in any applicable law, statute or rule which expand the right of a
Delaware corporation to indemnify an officer, supervisor or employee of the
Company, such changes shall be within the purview of the Executive’s rights,
and the Company’s obligations, under this Agreement. In the event of any
changes in any applicable law, statute or rule which narrows the right of a
Delaware corporation to indemnify such changes, to the extent not otherwise
required by such law, statute or rule to be applied to this Agreement shall
have no effect on this Agreement or the parties’ rights and obligations
hereunder. The indemnification provided by this Agreement shall not be deemed
exclusive of any rights to which the Executive may be entitled under the
Company’s Certificate of Incorporation, the Bylaws, any agreement, any vote of
stockholders or disinterested directors, the Delaware General Corporation Law,
or otherwise. The indemnification provided under this Agreement shall continue
to remain valid and enforceable by the Executive even though the Executive may
have ceased to be an officer, supervisor, director, or employee of the Company
or Executive’s employment with the Company under this Agreement has ceased.

5. TERMINATION

          5.1
Termination
With Good Cause; Resignation Without Good Reason. Company may
terminate Executive’s employment at any time, with or without notice or Good
Cause (as defined below). If Company terminates Executive’s employment with
Good Cause, or if Executive resigns without Good Reason (as defined below),
Company will pay Executive his salary prorated through the date of termination,
at the rate in effect at the time notice of termination is given, together with
any benefits accrued through the date of termination. Company will have no
further obligations to Executive under this Agreement or any other agreement,
and all unvested options will terminate.

          5.2
Termination
Without Good Cause; Resignation with Good Reason. Company will have
the right to terminate Executive’s employment under this Agreement without Good
Cause at any time, and Executive will have the right to terminate his
employment with notice and Good Reason at any time. If Company terminates
Executive’s employment without Good Cause, or Executive resigns for Good
Reason, the Company will pay Executive his salary through the end of the Term
of this Agreement.

          5.3
Good
Cause. For purposes of this Agreement, a termination will be for
“Good Cause” if Executive should:

                    (a)
commit an act of fraud, moral turpitude or embezzlement in connection

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with his duties;

                    (b)
violate a material provision of Company’s written Codes of Ethics as adopted by
the Board, or any applicable state or federal law or regulation which failure
or refusal remains uncured for a period of fifteen (15) days after written
notice to Executive thereof;

                    (c)
violate or breach a material provision of the this Agreement (other than a
breach by reason of an act described in subclauses (a) above or (e) below),
which breach remains uncured for a period of fifteen (15) days after written
notice to Executive of the breach;

                    (d)
fail or refuse to comply with a relevant and material obligation assumable and
chargeable to an executive of his corporate rank and responsibilities under the
Sarbanes-Oxley Act and the regulations of the Securities and Exchange
Commission promulgated thereunder which failure or refusal remains uncured for
a period of fifteen (15) days after written notice to Executive thereof; or

                    (e)
be convicted of, or enter a plea of guilty or no contest to, a felony or a
misdemeanor involving fraud or moral turpitude under state or federal law.

          5.4
Good
Reason. For purposes of this Agreement, a resignation will be with
“Good Reason” following:

                    (a)
assignment to Executive of duties materially inconsistent with Executive’s
status as President of an emerging company; provided Executive will give the
Company written notice and a reasonable opportunity to cure prior to
termination for this reason, 

                    (b)
removal of Executive as President,

                    (c)
material adverse change in the reporting relationship set forth in Section 2.1
hereof or a substantial reduction in the nature or status of Executive’s
responsibilities as President provided Executive will give the Company written
notice and a reasonable opportunity to cure prior to termination for this
reason; or

                    (d)
material breach of this Agreement by Company, including, but not limited to,
Company’s failure to timely pay to Executive any amount due under Section 3.2
hereof which continues after written notice and reasonable opportunity to cure.

Notwithstanding the above, the
occurrence of an event specified in Sections 5.4(a), (b) or (c) above shall not
give rise to a right of termination by Executive for Good Reason if any of such
events is the result of an action taken by the Company by reason of the fact
that the Company had the right to terminate the Executive for Good Cause as
defined in Section 5.3, but, rather than terminate Executive, the Company has
chosen to retain Executive and reassign Executive to different duties as a
result of the conduct of Executive. 

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          5.5
Death or
Disability. To the extent consistent with applicable law,
Executive’s salary will terminate on his death or Disability. “Disability”
means any health condition, physical or mental, or other cause beyond
Executive’s control that prevents him from performing his duties, even after
reasonable accommodation is made by Company, for a period of 90 consecutive days
within any 365-day period. In the event of termination due to death or
Disability, Company will pay Executive (or his legal representative) his salary
prorated through the date of termination, at the rate in effect at the time of
termination and continue to provide insurance and other fringe benefits to
Executive and Executive’s spouse and dependent children for a period of one
year from Executive’s termination date, and 100% of the options set to vest in
the year that death or disability occurs will vest and Executive (or his legal
representative) will have until the end of the option term to exercise all
options. Company will have no further obligations to Executive (or his legal
representative) under this Agreement, except for any other vested rights under
employee benefit plans and programs and the right to receive reimbursement for
business expenses.

          5.6
Return of
Company Property. Within ten days after the effective date of
termination of Executive’s employment with Company, Executive will return to
Company all products, books, records, forms, specifications, formulae, data
processes, designs, papers and writings relating to the business of Company,
including, but not limited to, proprietary or licensed computer programs,
customer lists and customer data, and copies or duplicates thereof in
Executive’s possession or under Executive’s control. Executive will not retain
any copies or duplicates of such property and all licenses granted to him by
Company to use computer programs or software will be revoked on the termination
date.

6. DUTY OF LOYALTY

During the term of this
Agreement the executive will follow the Vycor Code of Ethics.

7. CONFIDENTIAL INFORMATION

          7.1
Trade
Secrets of Company. Executive, by reason of his prior employment with
the Company and during the term of this Agreement, has and will develop, have
access to and become acquainted with various trade secrets which are owned by
Company and which are regularly used in the operation of its business.
Executive will not disclose such trade secrets, directly or indirectly, or use
them in any way, either during the term of this Agreement or at any time
thereafter, except as required in the course of his employment by Company. All
files, contracts, manuals, reports, letters, forms, documents, notes,
notebooks, lists, records, documents, customer lists, vendor lists, purchase
information, designs, computer programs and similar items and information
relating to the businesses of such entities, whether prepared by Executive or
otherwise and whether now existing or prepared at a future time, coming into
his possession will remain the exclusive property of Company.

          7.2
Confidential
Data of Customers of Company. Executive, in the course of his
duties, will have access to and become acquainted with financial, accounting,
statistical and personal data of customers of Company and of its and their
affiliates. All such data is confidential and will not be disclosed, directly
or indirectly, or used by Executive in any way, either during the term of this 

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Agreement (except as required
in the course of Executive’s employment by Company) or at any time thereafter.

          7.3
Intellectual
Properties. Executive will sign a Confidentiality Agreement (the
“Confidentiality Agreement”) with the Company prior to or on his start date.

          7.4
Continuing
Effect. The provisions of this Section 7 will remain in effect after
the effective date of termination of Executive’s employment with Company

8. OTHER
PROVISIONS

          8.1
Compliance
with Other Agreements. Executive represents and warrants to Company
that, to his knowledge and belief, the execution, delivery and performance of
this Agreement will not conflict with or result in the violation or breach of
any term or provision of any order, judgment, injunction, contract, agreement,
commitment or other arrangement to which Executive is a party or by which he is
bound.

          8.2
Non-delegable
Duties. This Agreement is a contract for Executive’s personal
services. The duties of Executive under this Agreement are personal and may not
be delegated or transferred in any manner whatsoever, and will not be subject
to involuntary alienation, assignment or transfer by Executive during his life.

          8.3
Governing
Law. The validity, construction and performance of this Agreement
will be governed by the internal laws of the State of New York. The federal and
state courts located in New York, New York will have exclusive jurisdiction
over any action to compel performance in accordance with this Agreement, the
Confidentiality Agreement or the Dispute Resolution Agreement (as defined
below) or to enforce any award in any arbitration

          8.4
Severability.
The invalidity or unenforceability of any particular provision of this
Agreement will not affect the other provisions, and this Agreement will be
construed in all respects as if any invalid or unenforceable provision were
omitted.

          8.5
Binding
Effect. The provisions of this Agreement will bind and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns.

          8.6
Notice.
Any notices or communications required or permitted by this Agreement will be
deemed sufficiently given if in writing and when delivered personally or two
business days after deposit with the United States Postal Service as registered
or certified mail, postage prepaid and addressed as follows:

                    (a)
if to Company, to the principal office of Company in the State of New York,
marked “Attention: Chairman of the Board”, and to a member of the Company’s
Compensation Committee who also qualifies as an “independent” member of the
board of directors; or

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                    (b)
if to Executive, to the most recent address for Executive appearing in Company’s
records.

          8.7
Dispute
Resolution. The parties agree to submit any disputes arising from
this Employment Agreement to final and binding arbitration under the applicable
Rules of the American Arbitration Association.

          8.8
Attorneys’
Fees. The prevailing party in any suit or other proceeding brought
to enforce, interpret or apply any provisions of this Agreement will, except as
otherwise provided in the Dispute Resolution Agreement, be entitled to recover
all costs and expenses of the proceeding and investigation (not limited to
court costs), including attorneys’ fees.

          8.9
Headings.
The headings contained in this Agreement are for reference purposes only and
will not affect in any way the meaning or interpretation of this Agreement.

          8.10
Amendment
and Waiver. This Agreement may be amended, modified or supplemented
only by a writing executed by each of the parties hereto, and by Fountainhead,
so long as Fountainhead retains an ownership position in the Company. Either party
may in writing waive any provision of this Agreement to the extent such
provision is only for the benefit of the waiving party, and no other party,
including Fountainhead, who shall be deemed a third party beneficiary for the
purposes set forth herein. No waiver by either party of a breach of any
provision of this Agreement will be construed as a waiver of any subsequent or
different breach, and no forbearance by a party to seek a remedy for
noncompliance or breach by the other party will be construed as a waiver of any
right or remedy with respect to such noncompliance or breach.

          8.11
Entire
Agreement. This Agreement and all other written agreements entered
into with Executive during his employment with Company, are the only agreements
and understandings between the parties hereto pertaining to the subject matter
hereof, and supersede all prior agreements, summaries of agreements,
descriptions of compensation packages, discussions, negotiations,
understandings, representations or warranties, whether verbal or written,
between the parties pertaining to such subject matter.

          8.12
Authority.
Company represents and warrants that the individual executing this Agreement on
its behalf has been duly authorized so to do and that this Agreement is a valid
and enforceable agreement of Company.

          IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

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 VYCOR MEDICAL, INC.

 
	
  

 
	
 /s/ Kenneth T.
Coviello

 
	
 By:  

 
	
  

 	 

 
	
 Name:
 Kenneth T. Coviello

 
	
 Title: Chief
 Executive Office

 
	
  

 
	
 /s/ Heather N. Vinas

 
	 

 
	
 Heather N. Vinas

 

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Exhibit A

Position
and Duties.

The Executive shall serve as
President of the Company; the Executive’s duties will be the following: 

          (a) Manage the business and affairs of
the Company within the guidelines established by the Board of Directors with
primary responsibility for business development and sales; 

          (b) Work with the CEO to recommend to the
Board of Directors strategic directions for the Company’s business, and when
approved by the Board of Directors, implement the corresponding strategic,
business and operational plans;

          (c) Direct and monitor the activities of
the Company in a manner such that agreed upon targets are met and the assets of
the Company are safeguarded and optimized in the best interests of all the
Company’s shareholders;

          (d) Together with the CEO, develop and
implement operational policies to guide the Company within the parameters set
forth in the Company’s By-Laws and the framework of the strategic directions
adopted by the Board of Directors;

          (e) Develop and recommend top-level
organizational structure and staffing to the Board of Directors and direct the
implementation of the Board’s decisions in this regard;

          (f) Together with the CEO, develop and
seek the Board’s concurrence for plans for management development and
succession in all key positions and then implement such plans;

          (g)
Manage and oversee the interface between the Company and its shareholders, the
investment community, media, governments and their agencies, employees and the
general public;

          (h) Meet regularly and as required with
the Chairman and other members of the Board of Directors to ensure that they
are provided in a timely manner with all information and access to management
necessary to permit the Board of Directors and all Committees thereof to
fulfill their statutory and other obligations;

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          i) Together with the CEO, develop and
recommend
to the Board of Directors the Annual Budget and Plan and provide to the
Board of Directors, on at least an annual basis, a management proposal that
outlines the Company’s budget and plan of operations;

          (j) Perform the responsibilities of
Corporate
Secretary;

          (k)
Such other duties and responsibilities consistent with such office, as from
time to time may be prescribed by the Board of Directors of the Company (or
Committees thereof)

- 11 -EXHIBIT
10.5

Warrant
to Purchase 80,631,353 shares

Of Common Stock 

THIS
WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE
SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A
REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT
OR AN EXEMPTION FROM SUCH REGISTRATION.

WARRANT
TO PURCHASE COMMON STOCK

OF

VYCOR MEDICAL, INC.

          This
certifies that, for value received, [Heather Vinas/Kenneth T. Coviello] and
his/her registered assigns (“Holder”) is entitled, subject to the terms set
forth below, to purchase from VYCOR MEDICAL, INC., a Delaware corporation (the
“Company”), 80,631,353 shares of the Common Stock of the Company, upon
surrender hereof, at the principal office of the Company referred to below,
with the Notice of Exercise form attached hereto (the “Notice of Exercise”)
duly executed, and simultaneous payment therefor in lawful money of the United
States as hereinafter provided, at the Exercise Price as set forth in Section 2
below. The number, character and Exercise Price of such shares of Common Stock
are subject to adjustment as provided below. The term “Warrant” as used herein
shall include this Warrant and any warrants delivered in substitution or
exchange therefor as provided herein.

1. Term of Warrant. Subject
to the terms and conditions set forth herein, this Warrant shall be
exercisable, in whole or in part, during the term commencing on the date hereof
(“Initial Exercise Date”) and ending at 5:00 p.m., Eastern Time, on the
five-year anniversary of the Initial Exercise Date, and shall be void
thereafter.

          2.
Exercise Price. The Exercise Price
at which this Warrant may be exercised shall be $0.00717 per share of Common
Stock, as adjusted from time to time pursuant to Section 12 hereof.

          3.
Exercise of Warrant.

               3.1 Vesting. The
Warrants shall vest in three
(3) installments as follows:

	
  

 	
  

 	
  

 
	
  

 	
 a.

 	
 The first vesting of 16,450,066 Warrants shall occur
 simultaneous with the Closing of the Company’s Recapitalization transaction
 with Fountainhead Capital Management Limited. These vested warrants shall be
 retained by Vycor and transferred to Holder in 12 equal monthly installments
 on the first day of each calendar month commencing January 1, 2010. Upon termination
 of the Holder’s employment with Vycor, Holder shall be entitled to retain all
 Warrants transferred to the Holder prior to such termination of employment,
 which may be exercised at any time within the term of this Warrant.

 
	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
 The second vesting of 32,090,643 Warrants will be
 eligible to occur as of December 31, 2010 as long as Holder remains in the
 employ of Vycor, based on the achievement of agreed metrics in a budget
 prepared by the Company and agreed by Fountainhead Capital Management Limited
 for the fiscal year ending December 31, 2010.

 

	
  

 	
  

 	
  

 
	
  

 	
 c.

 	
 The third vesting of 32,090,643 Warrants will be
 eligible to occur as of December 31, 2011 as long as Holder remains in the
 employ of Vycor, based on the achievement of agreed metrics in a budget
 prepared by the Company and agreed by Fountainhead Capital Management Limited
 for the fiscal year ending December 31, 2011.

 
	
  

 	
  

 	
  

 
	
  

 	
 d.

 	
 Subject to the terms of subparagraph e, below, under
 no circumstances shall any Warrants be exercisable until January 1, 2011.

 
	
  

 	
  

 	
  

 
	
  

 	
 e.

 	
 Should the Company (i.e. the entire company or
 substantially all of its assets) be sold prior to the full vesting of the
 Warrants, all unvested Warrants shall immediately vest and become exercisable
 according to their terms.

 
	
  

 	
  

 	
  

 
	
  

 	
 f. 

 	
 The right to exercise any Warrants granted hereunder
 shall expire sixty days following the voluntary cessation of the Holder’s
 employment with the Company.

 

               3.2
Notice of Exercise. The purchase
rights represented by this Warrant are exercisable by the holder in whole or in
part, but not for less than 1,000 shares at a time (or such lesser number of
shares which may then constitute the maximum number purchasable; such number
being subject to adjustment as provided in Section 12 below), at any time, or
from time to time, during the term hereof as described in Section 1 above, by
the surrender of this Warrant and the Notice of Exercise duly completed and
executed on behalf of the Holder, at the office of the Company (or such other
office or agency of the Company as it may designate by notice in writing to the
Holder at the address of the Holder appearing on the books of the Company),
upon payment in cash or by federal funds wire transfer to the Company of the
purchase price of the shares to be purchased.

               3.3
Issuance of Stock. This Warrant
shall be deemed to have been exercised immediately prior to the close of
business on the date of its surrender for exercise as provided above, and the
person entitled to receive the shares of Common Stock issuable upon such
exercise shall be treated for all purposes as the holder of record of such
shares as of the close of business on such date. As promptly as practicable on
or after such date and in any event within ten (10) days thereafter, the Company
at its expense shall issue and deliver to the person or persons entitled to
receive the same a certificate or certificates for the number of shares
issuable upon such exercise. In the event that this Warrant is exercised in
part, the Company at its expense will execute and deliver a new Warrant of like
tenor exercisable for the number of shares for which this Warrant may then be
exercised.

          4.
No Fractional Shares or Scrip. No
fractional shares or scrip representing fractional shares shall be issued upon
the exercise of this Warrant. In lieu of any fractional share to which the
Holder would otherwise be entitled, the Company shall make a cash payment equal
to the Exercise Price multiplied by such fraction.

          5.
Cashless Exercise. To the extent
permitted by the Company, the Holder may exercise this Warrant on a cashless
basis in exchange for other securities of the Company bearing a value equal to
the difference between the Exercise Price and the then market value of the
shares underlying this Warrant.

          6.
Replacement of Warrant. On receipt
of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this warrant and, in the case of loss, theft or
destruction, on delivery of an indemnity agreement reasonably satisfactory in
form and substance to the Company or, in the case of mutilation, on surrender
and cancellation of this Warrant, the Company at its expense shall execute and
deliver, in lieu of this Warrant, a new warrant of like tenor and amount.

          7.
Rights of Shareholders. Subject to
Sections 10 and 12 of this Warrant, the Holder shall not be entitled to vote or
receive dividends or be deemed the holder of Common Stock or any other
securities of the Company that may at any time be issuable on the exercise
hereof for any purpose, nor shall anything contained herein be construed to
confer upon the Holder, as such, any of the rights of a stockholder of the
Company or any right to vote for the election of directors or upon any matter
submitted to shareholders at any meeting thereof, or to give or withhold
consent to any corporate action

-2-

or to receive notice of meetings, or to receive dividends or subscription rights or
otherwise until the Warrant shall have been exercised as provided herein.

          8.
Transfer of Warrant.

               8.1
Warrant Register. The Company will
maintain a register (the “Warrant Register’’) containing the names and
addresses of the Holder or Holders. Any Holder of this Warrant or any portion
thereof may change his or her address as shown on the Warrant Register by
written notice to the Company requesting such change. Any notice or written
communication required or permitted to be given to the Holder may be delivered
or given by mail to such Holder as shown on the Warrant Register and at the
address shown on the Warrant Register. Until this Warrant is transferred on the
Warrant Register of the Company, the Company may treat the Holder as shown on
the Warrant Register as the absolute owner of this Warrant for all purposes,
notwithstanding any notice to the contrary.

               8.2
Warrant Agent. The Company may, by
written notice to the Holder, appoint an agent for the purpose of maintaining
the Warrant Register referred to in Section 8.1 above, issuing the Common Stock
or other securities then issuable upon the exercise of this Warrant, exchanging
this Warrant, replacing this Warrant, or any or all of the foregoing.
Thereafter, any such registration, issuance, exchange, or replacement, as the
case may be, shall be made at the office of such agent.

               8.3
Transferability and Non-Negotiability of
Warrant. This Warrant may not be transferred or assigned in whole or
in part without compliance with all applicable federal and state securities
laws by the transferor and the transferee (including the delivery of investment
representation letters and legal opinions reasonably satisfactory to the
Company, if such are requested by the Company), provided, however, that this
Warrant may not be transferred in part unless such transfer is to a transferee
who pursuant to such transfer receives the right to purchase at least 50,000
shares hereunder. Subject to the provisions of this Warrant with respect to
compliance with the Securities Act of 1933, as amended (the “Act”), title to
this Warrant may be transferred by endorsement (by the Holder executing the
Assignment Form attached hereto (the “Assignment Form”) and delivery in the
same manner as a negotiable instrument transferable by endorsement and
delivery.

               8.4
Exchange of Warrant Upon a Transfer. On
surrender of this Warrant for exchange, properly endorsed on the Assignment
Form and subject to the provisions of this Warrant with respect to compliance
with the Act and with the limitations on assignments and transfers and
contained in this Section 7, the Company at its expense shall issue to or on
the order of the Holder a new warrant or warrants of like tenor, in the name of
the Holder or as the Holder (on payment by the Holder of any applicable transfer
taxes) may direct, for the number of shares issuable upon exercise hereof.

               8.5
Compliance with Securities Laws.

                    (a)
The Holder of this Warrant, by acceptance hereof, acknowledges that this
Warrant and the shares of Common Stock to be issued upon exercise hereof are
being acquired solely for the Holder’s own account and not as a nominee for any
other party, and for investment, and that the Holder will not offer, sell or
otherwise dispose of this Warrant or any shares of Common Stock to be issued
upon exercise hereof except under circumstances that will not result in a
violation of the Act or any state securities laws. Upon exercise of this
Warrant, the Holder shall, if requested by the Company, confirm in writing, in
a form satisfactory to the Company, that the shares of Common Stock so
purchased are being acquired solely for the Holder’s own account and not as a
nominee for any other party, for investment, and not with a view toward
distribution or resale.

                    (b)
This Warrant and all shares of Common Stock issued upon exercise hereof shall
be stamped or imprinted with a legend in substantially the following form (in
addition to any legend required by state securities laws):

THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED
FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.
SUCH SECURITIES AND 

-3-

ANY SECURITIES OR SHARES ISSUED HEREUNDER OR
THEREUNDER MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
OR AN EXEMPTION THEREFROM UNDER SAID ACT. COPIES OF THE AGREEMENT COVERING THE
PURCHASE OF THESE SECURITIES AND RESTRICTING THEIR TRANSFER OR SALE MAY BE
OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OR RECORD HEREOF TO
THE SECRETARY OF THE COMPANY AT THE PRINCIPAL EXECUTIVE OFFICES OF THE COMPANY.

          9.
Reservation of Stock. The Company
covenants that during the term this Warrant is exercisable, the Company will
reserve from its authorized and unissued Common Stock a sufficient number of shares
to provide for the issuance of Common Stock upon the exercise of this Warrant
and, from time to time, will take all steps necessary to amend its Articles of
Incorporation (the “Articles”) to provide sufficient reserves of shares of
Common Stock issuable upon exercise of this Warrant. The Company further
covenants that all shares that may be issued upon the exercise of rights
represented by this Warrant, upon exercise of the rights represented by this
Warrant and payment of the Exercise Price, all as set forth herein, will be
free from all taxes, liens and charges in respect of the issue thereof (other
than taxes in respect of any transfer occurring contemporaneously or otherwise
specified herein). The Company agrees that its issuance of this Warrant shall
constitute full authority to its officers who are charged with the duty of
executing stock certificates to execute and issue the necessary certificates
for shares of Common Stock upon the exercise of this Warrant.

          10.
Notices. Upon the written request
of the holder, whenever the Exercise Price or number of shares purchasable
hereunder shall be adjusted pursuant to Section 12 hereof, the Company shall
issue a certificate signed by its Chief Financial Officer setting forth, in
reasonable detail, the event requiring the adjustment, the amount of the
adjustment, the method by which such adjustment was calculated, and the
Exercise Price and number of shares purchasable hereunder after giving effect
to such adjustment, and shall cause a copy of such certificate to be mailed (by
first-class mail, postage prepaid) to the Holder of this Warrant. All notices
and requests required under this Warrant shall be in writing and shall be
deemed to have been given for all purposes (a) upon personal delivery, (b) one
day after being sent, when sent by professional overnight courier service from
and to locations within the continental United States, (c) five days after
posting when sent by registered or certified mail, or (d) on the date of
transmission (if transmitted during normal business hours otherwise on the next
succeeding business day) when sent by telegram, telegraph, telex or fax,
addressed to the Holder at its address set forth on the Warrant Register, and
addressed to the Company at Vycor Medical Inc., 80 Orville Drive, Suite 100,
Bohemia, NY 11716, Fax: (631) 794 2444. The Holder or the Company may from
time to time by notice in writing delivered as provided herein, designate a
different mailing address to which such notices or requests shall thereafter be
delivered.

          11.
Amendments.

               11.1
Amendment. Any term of this
Warrant may be amended with the written consent of the Company and the Holder.
Any amendment effected in accordance with this Section 11 shall be binding upon
the Company and each future holder of this Warrant.

               11.2
Waiver. No waivers of, or
exceptions to, any term, condition or provision of this Warrant, in any one or
more instances, shall be deemed to be, or construed as, a further or continuing
waiver of any such term, condition or provision.

          12.
Adjustments. The Exercise Price
and the number of shares purchasable hereunder are subject to adjustment from
time to time as follows:

               11.1
Merger, Sale of Assets, etc. If at
any time while this Warrant, or any portion thereof, is outstanding and
unexpired there shall be (a) a reorganization (other than a combination,
reclassification, exchange or subdivision of shares otherwise provided for
herein), (b) a merger or consolidation of the Company with or into another
corporation in which the Company is not the surviving entity, or a reverse
triangular merger in which the Company is the surviving entity but the shares
of the Company’s capital stock outstanding immediately prior to the merger are
converted by

-4-

virtue of the merger into other property, whether in the form of
securities, cash, or otherwise, or (c) a sale or transfer of the Company’s
properties and assets as, or substantially as, an entirety to any other person,
then, as a part of such reorganization, merger, consolidation, sale or
transfer, lawful provision shall be made so that the holder of this Warrant
shall thereafter be entitled to receive upon exercise of this Warrant, during
the period specified herein and upon payment of the Exercise Price then in
effect, the number of shares of stock or other securities or property of the
successor corporation resulting from such reorganization, merger,
consolidation, sale or transfer that a holder of the shares deliverable upon
exercise of this Warrant would have been entitled to receive in such
reorganization, consolidation, merger, sale or transfer if this Warrant had
been exercised immediately before such reorganization, merger, consolidation,
sale or transfer, all subject to further adjustment as provided in this Section
12. The foregoing provisions of this Section 12.1 shall similarly apply to
successive reorganizations, consolidations, mergers, sales and transfers and to
the stock or securities of any other corporation that are at the time
receivable upon the exercise of this Warrant. If the per-share consideration
payable to the Holder for shares in connection with any such transaction is in
a form other than cash or marketable securities, then the value of such
consideration shall be determined in good faith by the Company’s Board of
Directors. In all events, appropriate adjustment (as determined in good faith
by the Company’s Board of Directors) shall be made in the application of the
provisions of this Warrant with respect to the rights and interests of the
Holder after the transaction, to the end that the provisions of this Warrant
shall be applicable after that event, as near as reasonably may be, in relation
to any shares or other property deliverable after that event upon exercise of
this Warrant.

               12.2
Reclassification, etc. If the
Company, at any time while this Warrant, or any portion thereof, remains
outstanding and unexpired by reclassification of securities or otherwise, shall
change any of the securities as to which purchase rights under this Warrant
exist into the same or a different number of securities of any other class or
classes, this Warrant shall thereafter represent the right to acquire such
number and kind of securities as would have been issuable as the result of such
change with respect to the securities that were subject to the purchase rights
under this Warrant immediately prior to such reclassification or other change
and the Exercise Price therefor shall be appropriately adjusted, all subject to
further adjustment as provided in this Section 12.

               12.3
Split, Subdivision or Combination of Shares. If
the Company at any time while this warrant, or any portion thereof, remains
outstanding and unexpired shall split, subdivide or combine the securities as
to which purchase rights under this Warrant exist, into a different number of
securities of the same class, the Exercise Price for such securities shall be
proportionately decreased in the case of a split or subdivision or proportionately
increased in the case of a combination.

               12.4
Adjustments for Dividends in Stock or Other
Securities or Property. If while this Warrant, or any portion
thereof, remains outstanding and unexpired the holders of the securities as to
which purchase rights under this Warrant exist at the time shall have received,
or, on or after the record date fixed for the determination of eligible
shareholders, shall have become entitled to receive, without payment therefor,
other or additional stock or other securities or property (other than cash) of
the Company by way of dividend, then and in each case, this Warrant shall
represent the right to acquire, in addition to the number of shares of the
security receivable upon exercise of this Warrant, and without payment of any
additional consideration therefor, the amount of such other or additional stock
or other securities or property (other than cash) of the Company that such
holder would hold on the date of such exercise had it been the holder of record
of the security receivable upon exercise of this Warrant on the date hereof and
had thereafter, during the period from the date hereof to and including the
date of such exercise, retained such shares and/or all other additional stock
available by it as aforesaid during such period, giving effect to all
adjustments called for during such period by the provisions of this Section 12.

               12.5
Certificate as to Adjustments. Upon
the occurrence of each adjustment or readjustment pursuant to this Section 12,
the Company shall, upon the written request, at any time, of any Holder of this
Warrant, furnish or cause to be furnished to such Holder a like certificate
setting forth: (a) adjustments and readjustments in accordance with the terms
hereof; (b) the Exercise Price at the time in effect; and (c) the number of
shares and the amount, if any, of other property that at the time would be
received upon the exercise of the Warrant.

-5-

          13.
Miscellaneous.

                    (a)
Attorneys’ Fees. In any action at
law or in equity to enforce any of the provisions or rights under this Warrant,
the unsuccessful party to such litigation, as determined by the court in a
final judgment or decree, shall pay the successful party all costs, expenses
and reasonable attorneys’ fees incurred by the successful party (including,
without limitation, costs, expenses and fees on any appeal).

                    (b)
Governing Law; Venue. This Warrant
and the legal relations between the Holder and the Company shall be governed by
and construed in accordance with the laws of the State of New York applicable
to contracts made and performed in such State and without regard to conflicts
of law doctrines of any other State or country. In the event of any action at
law or equity to enforce any of the provisions or rights under this Agreement,
the parties agree that the proper venue for such action is New York City, New
York and that the parties may bring such an action to enforce their respective
rights under this Agreement only in a court located within the Borough of
Manhattan, State of New York. The parties further agree that such court shall
have personal jurisdiction over each of the parties to this Agreement.

          IN WITNESS WHEREOF, VYCOR MEDICAL, INC. has
caused this Warrant to be executed by its officers thereunto duly authorized.

Dated: December 29, 2009

VYCOR
MEDICAL, INC.

By: _______________________

ATTEST:

By: _______________________

-6-

NOTICE
OF EXERCISE

To:
VYCOR MEDICAL, INC.

          (1)
The undersigned hereby elects to purchase shares of Common Stock of VYCOR
MEDICAL, INC., pursuant to the terms of the attached Warrant, and tenders
herewith payment of the purchase price for such shares in full.

          (2)
In exercising this Warrant, the undersigned hereby confirms and acknowledges
that the shares of Common Stock or the Common Stock are being acquired solely
for the account of the undersigned and not as a nominee for any other party,
and for investment, and that the undersigned will not offer, sell or otherwise
dispose of any such shares of Common Stock or Common Stock except under
circumstances that will not result in a violation of the Securities Act of
1933, as amended, or any state securities laws.

          (3)
Please issue a certificate or certificates representing those shares of Common
Stock in the name of the undersigned or in such other name as is specified
below:

(Name)

          (4)
Please issue a new Warrant for the unexercised portion of the attached Warrant
in the name of the undersigned or in such other name as is specified below:

(Name)

(Date)

(Signature)

-7-

ASSIGNMENT
FORM

          FOR
VALUE RECEIVED, the undersigned registered owner of this Warrant hereby sells,
assigns and transfers unto the Assignee named below all of the rights of the
undersigned under the within Warrant, with respect to the number of shares of
Common Stock (or Common Stock) set forth below:

	
  

 	
  

 	
  

 
	
 NAME OF ASSIGNEE

 	
 ADDRESS

 	
 NO. OF
 SHARES

 
	 

 	 

 	 

 

And does hereby constitute and appoint
__________________ as Attorney-in-Fact to make such transfer on the books of
VYCOR MEDICAL, INC., maintained for the purpose, with full power of
substitution in the premises.

          The
undersigned also represents that, by assignment hereof, the Assignee
acknowledges that this Warrant and the shares of stock to be issued upon
exercise hereof or conversion thereof are being acquired for investment and
that the Assignee will not offer, sell or otherwise dispose of this Warrant or
any shares of stock to be issued upon exercise hereof or conversion thereof
except under circumstances which will not result in a violation of the
Securities Act of 1933, as amended, or any state securities laws. Further, the
Assignee has acknowledged that upon exercise of this Warrant, the Assignee
shall, if requested by the Company, confirm in writing, in a form satisfactory
to the Company, that the shares of stock so purchased are being acquired for
investment and not with a view toward distribution or resale.

Dated:

Signature of Holder:

____________________

ATTEST:

Signature of Assignee

____________________

-8-

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