Document:

exv10w2

Exhibit 10.2

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES
INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD,
TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL FOR THE
COMPANY AT THE COMPANY’S EXPENSE (OR IF THE COMPANY’S COUNSEL DOES NOT PROVIDE SUCH OPINION,
COUNSEL SHALL BE SELECTED BY THE HOLDER, AT THE COMPANY’S EXPENSE), IN A GENERALLY ACCEPTABLE FORM,
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

Principal Amount: $ ________             
               
          
          
             Issue Date: October 8, 2010

CONVERTIBLE PROMISSORY NOTE

     FOR VALUE RECEIVED, VICOR TECHNOLOGIES, INC., a Delaware corporation (hereinafter called
“Borrower” or the “Company”), hereby promises to pay to the order of ____________ (the “Holder”),
address at ___________, without demand, the sum of up to ____________ ($_____) (“Principal
Amount”), with interest accruing thereon, on September 30, 2012 (the “Maturity Date”), if not
sooner paid or modified as permitted herein.

     This Note has been entered into pursuant to the terms of a subscription agreement by and among
the Borrower, the Holder and certain other holders (the “Other Holders”) of convertible promissory
notes (the “Other Notes”) issued at a Closing (the “Subscription Agreement”) for an aggregate
Principal Amount of up to $2,950,000. Unless otherwise separately defined herein, each capitalized
term used in this Note shall have the same meaning as set forth in the Subscription Agreement.
The following terms shall apply to this Note:

ARTICLE I

GENERAL PROVISIONS

     1.1 Interest Rate. Interest on this Note shall accrue monthly at the annual rate of
ten percent (10%). Interest will be payable commencing on the last business day of the sixth
(6th) month anniversary of the Issue Date and on the first day of each month thereafter
and on the Maturity Date, accelerated or otherwise, when the principal and remaining accrued but
unpaid interest shall be due and payable, or sooner as described below. Notwithstanding the
foregoing, in the event the Holder participates in a Redemption (as defined herein) within six
months of the Issue Date, the Holder will waive the payment by the Borrower of any accrued but
unpaid interest on the Note on the portion of the Note so redeemed. Interest will be payable in
cash or Common Stock, at the election of the Company and subject to Section 2.1, with
shares of Common Stock at a per share value equal to the applicable conversion price set forth in
Section 2.1(b). Interest may be paid at the Company’s election in cash or Common Stock to
the extent resellable pursuant to Rule 144 and to the extent such share issuance is not limited by
transfer or volume restrictions and provided such payment in Common Stock would not cause the
Holder to exceed the restrictions on ownership set forth in Section 2.3. So long as this
Note is outstanding, if the Borrower shall issue any debt with an interest rate in excess of ten

 

 

percent (10%) or preferred stock with a dividend rate in excess of ten percent (10%) (such rate, the
“Higher Rate”), the interest rate on this Note shall automatically adjust to the Higher Rate.

     1.2 Payment Grace Period. The Borrower shall not have any grace period to pay any
monetary amounts due under this Note. After the Maturity Date and during the pendency of an Event
of Default, (as defined in Article IV) a default interest rate of fifteen percent (15%) per annum
shall be in effect.

     1.3 Conversion Privileges. The Conversion Rights set forth in Article II
shall remain in full force and effect immediately from the date hereof and until the Note is paid
in full regardless of the occurrence of an Event of Default. This Note shall be payable in full on
the Maturity Date, unless previously converted into Common Stock in accordance with Article
II hereof.

     1.4 Pari Passu. All payments made on this Note and the Other Notes and except as
otherwise set forth herein all actions taken by the Borrower with respect to this Note and the
Other Notes, including but not limited to mandatory conversion, shall be made and taken pari passu
with respect to this Note and the Other Notes.

     1.5 Miscellaneous. Interest on this Note shall be calculated on the basis of a
360-day year and the actual number of days elapsed. Principal and interest on this Note and other
payments in connection with this Note shall be payable at the Holder’s offices as designated above
in lawful money of the United States of America in immediately available funds without set-off,
deduction or counterclaim. Upon assignment of the interest of Holder in this Note, Borrower shall
instead make its payment pursuant to the assignee’s instructions upon receipt of written notice
thereof.

ARTICLE II

CONVERSION RIGHTS

     The Holder shall have the right to convert the principal and any interest due under this Note
into Shares of the Borrower’s Common Stock, $0.0001 par value per share (“Common Stock”) as set
forth below.

	     2.1.	 	Conversion into the Borrower’s Common Stock.

          (a) The Holder shall have the right from and after the date of the issuance of this Note and
then at any time until this Note is fully paid, to convert any outstanding and unpaid principal
portion of this Note, and accrued but unpaid interest, at the election of the Holder (the date of
giving of such notice of conversion being a “Conversion Date”) into fully paid and non-assessable
shares of Common Stock as such stock exists on the date of issuance of this Note, or any shares of
capital stock of Borrower into which such Common Stock shall hereafter be changed or reclassified,
at the conversion price as defined in Section 2.1(b) hereof, determined as provided herein.
Upon delivery to the Borrower of a completed Notice of Conversion, a form of which is annexed
hereto as Exhibit A, Borrower shall issue and deliver to the Holder within three (3) business days
after the Conversion Date (such third day being the “Delivery Date”) that number of shares of
Common Stock for the portion of the Note converted in accordance with the foregoing. The Holder
will not be required to surrender the Note to the Borrower until the Note has been fully converted
or satisfied. The number of shares of Common Stock to be issued upon each conversion of this Note
shall be determined by dividing that portion of the principal of the Note and interest, if any, to
be converted, by the Conversion Price (as defined herein) then in effect.

     (b) Subject to adjustment as provided in Section 2.1(c) hereof, the conversion price
(“Conversion Price”) per share shall be equal to the lesser of (i) seventy-five percent
(75%) of the average

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closing bid price for the Common Stock on the OTC Bulletin Board (or if the Common Stock does
not trade on the OTC Bulletin Board, any similar quotation service such as the OTCQB Market) (the
“Principal Market”) for the ten trading days preceding the Issue Date, which is equal to $0.45 per
share (the “Fixed Conversion Price”) or (ii) at any time after six months subsequent to the Issue
Date, seventy-five percent (75%) of the average of the three (3) lowest closing bid prices on the
Principal Market for the Common Stock during the ten (10) trading days preceding the Conversion
Date (the “Adjustable Conversion Price”). Notwithstanding the foregoing, if the Borrower shall
enter into an agreement with an underwriter or placement agent to conduct a registered public
offering (“Registered Offering”) of the Common Stock or securities convertible into or exercisable
for shares of Common Stock based on a fixed market price of the Common Stock on the date of the
closing of the Registered Offering and which is not adjustable based on the future market price of
the Common Stock (such price, the “Registered Offering Price”), then the Conversion Price shall be
equal to:

               (1) within six months of the Issue Date, the lesser of (i) the Fixed Conversion Price and (ii)
eighty percent (80%) of the Registered Offering Price; or

               (2) at any time after six months subsequent to the Issue Date, the lesser of (i) the Fixed
Conversion Price, (ii) eighty percent (80%) of the Registered Offering Price and (iii) the
Adjustable Conversion Price.

If at any time subsequent to the Issue Date the Borrower shall agree to or issues any securities
convertible into or exercisable for shares of Common Stock to any person or entity at less than
seventy-five percent (75%) of a, or an average, closing bid price on the Principal Market for the
Common Stock (such percentage, the “Greater Discount”) and such conversion or exercise price is
adjustable based on the future market price of the Common Stock, then the Conversion Price shall
automatically be reduced to the Greater Discount.

          (c) The Conversion Price and number and kind of shares or other securities to be issued upon
conversion determined pursuant to Section 2.1(a), shall be subject to adjustment from time
to time upon the happening of certain events while this conversion right remains outstanding, as
follows:

               A. Merger, Sale of Assets, etc. If (A) the Borrower effects any merger or
consolidation of the Borrower with or into another entity, (B) the Borrower effects any sale of all
or substantially all of its assets in one or a series of related transactions, (C) any tender
offer or exchange offer (whether by the Borrower or another entity) is completed pursuant to which
holders of Common Stock are permitted to tender or exchange their shares for other securities, cash
or property, (D) the Borrower consummates a stock purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of
arrangement) with one or more persons or entities whereby such other persons or entities acquire
more than the 50% of the outstanding shares of Common Stock (not including any shares of Common
Stock held by such other persons or entities making or party to, or associated or affiliated with
the other persons or entities making or party to, such stock purchase agreement or other business
combination), (E) any “person” or “group” (as these terms are used for purposes of Sections 13(d)
and 14(d) of the 1934 Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3
under the 1934 Act), directly or indirectly, of more than 50% of the aggregate Common Stock of the
Borrower), or (F) the Borrower effects any reclassification of the Common Stock or any compulsory
share exchange pursuant to which the Common Stock is effectively converted into or exchanged for
other securities, cash or property (other than a reverse merger) (in any such case, a “Fundamental
Transaction”), this Note, as to the unpaid principal portion thereof and accrued interest thereon,
if any, shall thereafter be deemed to evidence the right to convert into such number and kind of
shares or other securities and property as would have been issuable or distributable on account of
such Fundamental Transaction, upon or with respect to the securities subject to the conversion
right immediately prior to such Fundamental Transaction. The foregoing

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provision shall similarly
apply to successive Fundamental Transactions of a similar nature by any such successor or
purchaser. Without limiting the generality of the foregoing, the anti-dilution provisions of this Section shall apply
to such securities of such successor or purchaser after any such Fundamental Transaction.

               B. Reclassification, etc. If the Borrower at any time shall, by reclassification or
otherwise, change the Common Stock into the same or a different number of securities of any class
or classes that may be issued or outstanding, this Note, as to the unpaid principal portion thereof
and accrued interest thereon, shall thereafter be deemed to evidence the right to purchase an
adjusted number of such securities and kind of securities as would have been issuable as the result
of such change with respect to the Common Stock immediately prior to such reclassification or other
change.

               C. Stock Splits, Combinations and Dividends. If the shares of Common Stock are
subdivided or combined into a greater or smaller number of shares of Common Stock, or if a dividend
is paid on the Common Stock in shares of Common Stock, the Conversion Price shall be
proportionately reduced in case of subdivision of shares or stock dividend or proportionately
increased in the case of combination of shares, in each such case by the ratio which the total
number of shares of Common Stock outstanding immediately after such event bears to the total number
of shares of Common Stock outstanding immediately prior to such event.

          (d) Whenever the Conversion Price is adjusted pursuant to Section 2.1(c) above, the
Borrower shall promptly, but not later than the tenth (10th) business day after the
effectiveness of the adjustment, provide notice to the Holder setting forth the Conversion Price
after such adjustment and setting forth a statement of the facts requiring such adjustment.
Failure to provide the foregoing notice is an Event of Default under this Note.

          (e) During the period the conversion right exists, Borrower will reserve from its authorized
and unissued Common Stock not less than an amount of Common Stock equal to 150% of the amount of
shares of Common Stock issuable upon the full conversion of this Note. Borrower represents that
upon issuance, such shares will be duly and validly issued, fully paid and non-assessable.
Borrower agrees that its issuance of this Note shall constitute full authority to its officers,
agents, and transfer agents who are charged with the duty of executing and issuing stock
certificates to execute and issue the necessary certificates for shares of Common Stock upon the
conversion of this Note. If the Borrower shall issue any securities or make any change to its
capital structure which would change the number of shares of Common Stock into which the Notes
shall be convertible at the Conversion Price then in effect, the Borrower shall at the same time
take all necessary actions to ensure that there shall be a sufficient number of shares of Common
Stock authorized and reserved for conversion of the outstanding Notes.

     2.2 Method of Conversion. This Note may be converted by the Holder in whole or in
part as described in Section 2.1(a) hereof and the Subscription Agreement. Upon partial
conversion of this Note, a new Note containing the same date and provisions of this Note shall, at
the request of the Holder, be issued by the Borrower to the Holder for the principal balance of
this Note and interest which shall not have been converted or paid, upon surrender of the existing
Note.

     2.3. Maximum Conversion. The Holder shall not be entitled to convert on a Conversion
Date that amount of the Note in connection with that number of shares of Common Stock which would
be in excess of the sum of (i) the number of shares of Common Stock beneficially owned by the
Holder and its affiliates on a Conversion Date, (ii) any Common Stock issuable in connection with
the unconverted portion of the Note, and (iii) the number of shares of Common Stock issuable upon
the conversion of the Note with respect to which the determination of this provision is being made
on a Conversion Date, which would result in beneficial ownership by the Holder and its affiliates
of more than 4.99% of the outstanding shares of

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Common Stock of the Borrower on such Conversion
Date. For the purposes of the provision to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder. Subject to the
foregoing, the Holder shall not be limited to aggregate conversions of 4.99%. The Holder shall
have the authority to determine whether the restriction contained in this Section 2.3 will
limit any conversion hereunder and the extent such limitation applies and to which convertible or
exercisable instrument or part thereof such limitation applies. The Holder may waive the
conversion limitation described in this Section 2.3, in whole or in part, upon and
effective after 61 days prior written notice to the Borrower to increase such percentage to up to
9.99%.

     2.4. Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical
certificates representing the Common Stock issuable upon conversion, provided the Borrower’s
transfer agent is participating in the Depository Trust Company (“DTC”) Fast Automated Securities
Transfer (“FAST”) program, upon the request of the Holder, the Borrower shall use its best efforts
to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to
the Holder by crediting the account of the Holder’s prime broker with DTC through its Deposit
Withdrawal Agent Commission (“DWAC”) system.

ARTICLE III

ACCELERATION AND REDEMPTION

     3.1. Redemption. This Note may not be prepaid, converted, redeemed or called by the
Borrower without the consent of the Holder except as described in this Note.

     3.2. Fundamental Transaction. Upon the occurrence of a Fundamental Transaction, then
in addition to the Holder’s rights described in Section 2.1(c)(A), until twenty (20)
business days after the Borrower notifies the Holder of the occurrence of the Fundamental
Transaction, the Holder may elect to accelerate the Maturity Date as of the date of the Fundamental
Transaction and receive payment for the then outstanding Principal Amount, and any other amount
owed to the Holder pursuant to the Transaction Documents.

     3.3. Redemption of Principal Amount upon Qualified Financing.

          (a) In the event the Company has raised $5,000,000 or more from the sale of capital stock or
debt securities in one or more related or unrelated financings subsequent to the last Closing
(“Qualified Financing”), then the Borrower shall offer to prepay the outstanding Principal Amount
of this Note (“Redemption”), in whole or in part, by paying to the Holder: (x) a sum of money equal
to: (i) if the Redemption occurs within sixty days of the Issue Date, one hundred and ten percent
(110%) of the Principal Amount to be redeemed, (ii) if the Redemption occurs between sixty and one
hundred and twenty days of the Issue Date, one hundred and twelve and a half percent (112.5%) of
the Principal Amount to be redeemed, and (iii) if the Redemption occurs more than one hundred and
twenty days subsequent to the Issue Date, one hundred and fifteen percent (115%) of the Principal
amount to be redeemed, and (y) accrued but unpaid interest thereon and any and all other sums due,
accrued or payable to the Holder arising under this Note or any Transaction Document through the
Redemption Payment Date as defined below (the “Redemption Amount”). Within five business days of
the closing of a Qualified Financing, Borrower shall notify the Holder of the Redemption in writing
(“Notice of Redemption”) at its registered address appearing on the books and records of the
Borrower. The Notice of Redemption shall specify the date for such Redemption (the “Redemption
Payment Date”), which date shall be at least thirty (30) business days after the date of the Notice
of Redemption (the “Redemption Period”).

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          (b) Notwithstanding the Notice of Redemption, the Holder shall not be required to tender its
Note for Redemption and at all times prior to the Maturity Date the Holder shall maintain the right
to convert
all or a portion of the Note. A Notice of Redemption shall not be effective with respect to any
portion of the Principal Amount for which the Holder has previously delivered an election to
convert, or subject to the previous sentence, for conversions initiated or made by the Holder
during the Redemption Period. On the Redemption Payment Date, the Redemption Amount, less any
portion of the Redemption Amount against which the Holder has permissibly exercised its conversion
rights, shall be paid in good funds (other than any accrued but unpaid interest, which shall be
paid in Common Stock) to the Holder. Borrower’s failure to (i) initiate the Redemption upon the
occurrence of a Qualified Financing or (ii) pay the Redemption Amount on the Redemption Payment
Date as set forth herein, may be deemed by Holder to be a non-curable Event of Default. During the
Redemption Period, the Company must abide by all of its obligations to the Holder.

     3.4. Redemption of Principal Amount upon Non-Qualified Financing.

          (a) In the event the Company has raised funds of less than $5,000,000 from the sale of capital
stock or debt securities in one or more related or unrelated financings subsequent to the last
Closing (“Non-Qualified Financing”), then the Borrower shall offer to prepay the portion of the
Principal Amount obtained by multiplying the outstanding Principal Amount by a fraction of which
the numerator is the amount raised in the Non-Qualified Financing and the denominator is $5,000,000
(“Non-Qualified Redemption”). In connection with the Non-Qualified Redemption, the Company shall
pay the Holder or the Other Holders, as applicable, (x) a sum of money equal to: (i) if the
Non-Qualified Redemption occurs within sixty days of the Issue Date, one hundred and ten percent
(110%) of the Principal Amount to be redeemed, (ii) if the Non-Qualified Redemption occurs between
sixty and one hundred and twenty days of the Issue Date, one hundred and twelve and a half percent
(112.5%) of the Principal amount to be redeemed, and (iii) if the Non-Qualified Redemption occurs
more than one hundred and twenty days subsequent to the Issue Date, one hundred and fifteen percent
(115%) of the Principal Amount to be redeemed, and (y) accrued but unpaid interest thereon and any
and all other sums due, accrued or payable to the Holder arising under this Note or any Transaction
Document through the Redemption Payment Date as defined below (the “Non-Qualified Redemption
Amount”). Within five business days of the closing of a Non-Qualified Financing, Borrower shall
notify the Holder or the Other Holders, as applicable, of the Non-Qualified Redemption in writing
(“Notice of Non-Qualified Redemption”) at its registered address appearing on the books and records
of the Borrower. The Notice of Redemption shall specify the date and amount of such Non-Qualified
Redemption (the “Non-Qualified Redemption Payment Date”), which date shall be at least thirty (30)
business days after the date of the Notice of Non-Qualified Redemption (the “Non-Qualified
Redemption Period”). In the event Holders request that Notes in excess of the Non-Qualified
Redemption Amount be subject to the Non-Qualified Redemption, the Principal Amount subject to the
Non-Qualified Redemption shall be reduced on a pro rata basis based on the outstanding Principal
Amount of Notes held by such Holders.

          (b) Notwithstanding the Notice of Non-Qualified Redemption, the Holder shall not be required
to tender its Note for Non-Qualified Redemption and at all times prior to the Maturity Date and the
Holder shall maintain the right to convert all or a portion of the Note. A Notice of Non-Qualified
Redemption shall not be effective with respect to any portion of the Principal Amount for which the
Holder has previously delivered an election to convert, or subject to the previous sentence, for
conversions initiated or made by the Holder during the Non-Qualified Redemption Period. On the
Non-Qualified Redemption Payment Date, the Non-Qualified Redemption Amount, less any portion of the
Non-Qualified Redemption Amount against which the Holder has permissibly exercised its conversion
rights, shall be paid in good funds (other than any accrued but unpaid interest, which shall be
paid in Common Stock) to the Holder. Borrower’s failure to (i) initiate the Non-Qualified
Redemption upon the occurrence of a Non-Qualified Financing or (ii) pay the Non-Qualified
Redemption Amount on the Non-Qualified Redemption Payment Date as set forth herein, may be deemed
by

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Holder to be a non-curable Event of Default. During the Non-Qualified Redemption Period, the
Company must abide by all of its obligations to the Holder.

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ARTICLE IV

EVENT OF DEFAULT

     The occurrence of any of the following events of default (“Event of Default”) shall, at the
option of the Holder hereof, make all sums of principal and interest then remaining unpaid hereon
and all other amounts payable hereunder immediately due and payable, upon demand, without
presentment or grace period, all of which hereby are expressly waived:

     4.1 Failure to Pay Principal or Interest. The Borrower (i) fails to pay any
installment of principal under this Note when due or (ii) fails to pay any interest or other sums
due under this Note within three (3) business days after such amounts are due.

     4.2 Breach of Covenant. The Borrower or any Subsidiary breaches any material covenant
or other term or condition of the Subscription Agreement, Escrow Agreement, Warrant or this Note,
except for a breach of payment, in any material respect and such breach, if subject to cure,
continues for a period of ten (10) days.

     4.3 Breach of Representations and Warranties. Any material representation or warranty
of the Borrower made herein, in the Subscription Agreement, the Warrant or the Escrow Agreement
shall be false or misleading in any material respect as of the date made and the Closing Date.

     4.4 Liquidation. Any dissolution, liquidation or winding up by Borrower or a
Subsidiary of a substantial portion of their business.

     4.5 Cessation of Operations. Any cessation of operations by Borrower or a
Subsidiary.

     4.6 Maintenance of Assets. The failure by Borrower or any Subsidiary to maintain any
material intellectual property rights, personal, real property, equipment, leases or other assets
which are necessary to conduct its business (whether now or in the future).

     4.7 Receiver or Trustee. The Borrower or any Subsidiary shall make an assignment for
the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for
it or for a substantial part of its property or business; or such a receiver or trustee shall
otherwise be appointed.

     4.8 Judgments. Any money judgment, writ or similar final process shall be entered or
made in a non-appealable adjudication against Borrower or any Subsidiary or any of its property or
other assets for more than $75,000 in excess of the Borrower’s insurance coverage, unless stayed
vacated or satisfied within thirty (30) days.

     4.9 Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or
other proceedings or relief under any bankruptcy law or any law, or the issuance of any notice in
relation to such event, for the relief of debtors shall be instituted by or against the Borrower or
any Subsidiary.

     4.10 Delisting. The failure of the Borrower to maintain the listing or quotation of
its Common Stock on a Principal Market; failure to comply with the requirements for continued
quotation on the Principal Market for a period of seven (7) consecutive trading days; or
notification from the Principal Market that the Borrower is not in compliance with the conditions
for such continued quotation and such non-compliance continues for seven (7) days following such
notification.

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     4.11 Non-Payment. A default by the Borrower or any Subsidiary under any one or more
obligations in an aggregate monetary amount in excess of $75,000 for more than twenty (20) days
after the due date, unless the Borrower or such Subsidiary is contesting the validity of such
obligation in good faith.

     4.12 Stop Trade. An SEC or judicial stop trade order or Principal Market suspension
that lasts for ten (10) or more consecutive trading days.

     4.13 Failure to Deliver Common Stock or Replacement Note. Borrower’s failures to
timely deliver Common Stock to the Holder pursuant to and in the form required by this Note,
Sections 6 and 10 of the Subscription Agreement, and the Warrant or, if required, a replacement
Note following a partial conversion.

     4.14 Reservation Default. Failure by the Borrower to have reserved for issuance upon
conversion of the Note or upon exercise of the Warrants, the number of shares of Common Stock as
required in the Subscription Agreement, this Note and the Warrants, and such failure continues for
a period of ten (10) business days.

     4.15 Financial Statement Restatement. The restatement after the date hereof of any
financial statements filed by the Borrower with the Securities and Exchange Commission for any date
or period from two years prior to the Issue Date of this Note and until this Note is no longer
outstanding, if the result of such restatement would, by comparison to the unrestated financial
statements, have constituted a Material Adverse Effect.

     4.16 Reverse Splits. The Borrower effectuates a reverse split of its Common Stock
without twenty (20) days prior written notice to the Holder.

     4.17 Other Default. The occurrence of an Event of Default as described in the
Subscription Agreement, the Escrow Agreement or the Warrant that, if susceptible to cure, is not
cured during any designated cure period.

     4.18 Notification Failure. A failure by Borrower to notify Holder of any material
event of which Borrower is obligated to notify Holder pursuant to the terms of this Note or the
Subscription Agreement and Borrower fails to cure such failure within five (5) business days of the
required notification date.

ARTICLE V

MISCELLANEOUS

     5.1 Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder
hereof in the exercise of any power, right or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power, right or privilege preclude
other or further exercise thereof or of any other right, power or privilege. All rights and
remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies
otherwise available.

     5.2 Notices. All notices, demands, requests, consents, approvals, and other
communications required or permitted hereunder shall be in writing and, unless otherwise specified
herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery or facsimile, addressed as set forth below or to such
other address as such party shall have specified most

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recently by written notice. Any notice or
other communication required or permitted to be given hereunder shall be deemed effective (a) upon
hand delivery or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated below (if delivered on a
business day during normal business hours where such notice is to be received), or the first
business day following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the first business day following the
date of mailing by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur. The addresses for such communications
shall be: (i) if to the Borrower to: Vicor Technologies, Inc., 10415 2300 NW Corporate Boulevard
Suite 123 Boca Raton, FL 33431, Attn: David H. Fater, CEO, facsimile: (561) 995-2449, with a copy
by facsimile only to: Akerman Senterfitt, One Southeast Third Avenue, 25th Floor, Miami, Florida
33131, Attn: Leonard H. Bloom, Esq., facsimile: (305) 374-5095, and (ii) if to the Holder, to the
name, address and facsimile number set forth on the front page of this Note, with copies (which
shall not constitute notice) by fax only to: Perrin Holden & Davenport Capital Corp., 5 Hanover
Square Suite 500, New York New York 10004, Attn: Jody Eisenman, facsimile: (212) 202-3937 and
Ellenoff Grossman & Schole LLP, 150 East 42nd Street, 11th Floor, New York, NY 10017, Attn: Stuart
Neuhauser, Esq., facsimile: (212) 370-7889.

     5.3 Amendments. This Note and any provision hereof may only be amended by an
instrument in writing signed by the Borrower and the Holder. The term “Note” and all reference
thereto, as used throughout this instrument, shall mean this instrument as originally executed, or
if later amended or supplemented, then as so amended or supplemented.

     5.4 Assignability. This Note shall be binding upon the Borrower and its successors
and assigns, and shall inure to the benefit of the Holder and its successors and assigns. The
Borrower may not assign its obligations under this Note.

     5.5 Cost of Collection. If default is made in the payment of this Note, Borrower
shall pay the Holder hereof reasonable costs of collection, including reasonable attorneys’ fees.

     5.6 Governing Law. This Note shall be governed by and construed in accordance with
the laws of the State of New York without regard to conflicts of laws principles that would result
in the application of the substantive laws of another jurisdiction. Any action brought by either
party against the other concerning the transactions contemplated by this Agreement must be brought
only in the civil or state courts of New York or in the federal courts located in the State and
county of New York. Both parties and the individual signing this Agreement on behalf of the
Borrower agree to submit to the jurisdiction of such courts. The prevailing party shall be
entitled to recover from the other party its reasonable attorney’s fees and costs. In the event
that any provision of this Note is invalid or unenforceable under any applicable statute or rule of
law, then such provision shall be deemed inoperative to the extent that it may conflict therewith
and shall be deemed modified to conform with such statute or rule of law. Any such provision which
may prove invalid or unenforceable under any law shall not affect the validity or unenforceability
of any other provision of this Note. Nothing contained herein shall be deemed or operate to
preclude the Holder from bringing suit or taking other legal action against the Borrower in any
other jurisdiction to collect on the Borrower’s obligations to Holder or to enforce a judgment or
other decision in favor of the Holder. This Note shall be deemed an unconditional obligation of
Borrower for the payment of money and, without limitation to any other remedies of Holder, may be
enforced against Borrower by summary proceeding pursuant to New York Civil Procedure Law and Rules
Section 3213 or any similar rule or statute in the jurisdiction where enforcement is sought. For
purposes of such rule or statute, any other document or agreement to which Holder and Borrower are
parties or which Borrower delivered to Holder, which may be convenient or necessary to determine
Holder’s rights hereunder or Borrower’s obligations to Holder are deemed a part of this Note,
whether or not such other document or agreement was delivered together herewith or was executed
apart from this Note.

10

 

     5.7 Maximum Payments. Nothing contained herein shall be deemed to establish or
require the payment of a rate of interest or other charges in excess of the maximum rate permitted
by applicable law. In the event that the rate of interest required to be paid or other charges
hereunder exceed the maximum rate permitted by applicable law, any payments in excess of such
maximum rate shall be credited against amounts owed by the Borrower to the Holder and thus refunded
to the Borrower.

     5.8 Non-Business Days. Whenever any payment or any action to be made shall be due on
a Saturday, Sunday or a public holiday under the laws of the State of New York, such payment may be
due or action shall be required on the next succeeding business day and, for such payment, such
next succeeding day shall be included in the calculation of the amount of accrued interest payable
on such date.

     5.9 Facsimile Signature. In the event that the Borrower’s signature is delivered by
facsimile transmission, PDF, electronic signature or other similar electronic means, such signature
shall create a valid and binding obligation of the Borrower with the same force and effect as if
such signature page were an original thereof.

     5.10 Shareholder Status. The Holder shall not have rights as a shareholder of the
Borrower with respect to unconverted portions of this Note. However, the Holder will have the
rights of a shareholder of the Borrower with respect to the Shares of Common Stock to be received
after delivery by the Holder of a Notice of Conversion to the Borrower.

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

11

 

     IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by an authorized
officer as of the 8th day of October, 2010.

	 	 	 	 	 
	 	VICOR TECHNOLOGIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	David H. Fater 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

WITNESS:

                                                            

12

 

EXHIBIT A — NOTICE OF CONVERSION

(To be executed by the Registered Holder in order to convert the Note)

     The undersigned hereby elects to convert $_________ of the principal and $_________ of the
interest due on the Note issued by VICOR TECHNOLOGIES, INC. on [      ], 2010 into Shares of
Common Stock of VICOR TECHNOLOGIES, INC. (the “Borrower”) according to the conditions set forth in
such Note, as of the date written below.

	 	 	 

	Date of Conversion:

	 	 
	 

	 	 

	 	 	 

	Conversion Price:

	 	 
	 

	 	 

Number of Shares of Common Stock Beneficially Owned on the Conversion Date: Less than 5% of the
outstanding Common Stock of VICOR TECHNOLOGIES, INC.

	 	 	 

	Shares To Be Delivered:

	 	 
	 

	 	 

	 	 	 

	Signature:

	 	 
	 

	 	 

	 	 	 

	Print Name:

	 	 
	 

	 	 

	 	 	 

	Address:exv10w3

Exhibit 10.3

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE
SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF
COUNSEL FOR THE COMPANY AT THE COMPANY’S EXPENSE (OR IF THE COMPANY’S COUNSEL DOES NOT PROVIDE SUCH
OPINION, COUNSEL SHALL BE SELECTED BY THE HOLDER, AT THE COMPANY’S EXPENSE), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO
RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES.

Right to Purchase ______ shares of Common Stock of Vicor Technologies, Inc.

(subject to adjustment as provided herein)

COMMON STOCK PURCHASE WARRANT

			
	No. W —                     
	 	Issue Date: October 8, 2010

VICOR TECHNOLOGIES, INC., a corporation organized under the laws of the State of Delaware (the
“Company”), hereby certifies that, for value received _______________or its assigns (the “Holder”),
address at ___________, is entitled, subject to the terms set forth below, to purchase from the
Company at any time after the Issue Date until 5:00 p.m., E.S.T on the date which is four years
after the Issue Date (the “Expiration Date”), up to ___________ (_____) fully paid and
non-assessable shares of Common Stock at a per share purchase price of $0.80. The aforedescribed
purchase price per share, as adjusted from time to time as herein provided, is referred to herein
as the “Purchase Price.” The number and character of such shares of Common Stock and the Purchase
Price are subject to adjustment as provided herein. The Company may reduce the Purchase Price for
some or all of the Warrants, temporarily or permanently, provided such reduction is made as to all
outstanding Warrants for all Holders of such Warrants. Capitalized terms used and not otherwise
defined herein shall have the meanings set forth in that certain Subscription Agreement (the
“Subscription Agreement”), dated as of October 8, 2010, entered into by the Company, the Holder and
the other signatories thereto.

     As used herein the following terms, unless the context otherwise requires, have the following
respective meanings:

     (A) The term “Company” shall mean Vicor Technologies, Inc., a Delaware corporation, and any
corporation which shall succeed or assume the obligations of Vicor Technologies, Inc. hereunder.

     (B) The term “Common Stock” includes (i) the Company’s Common Stock, $0.0001 par value per
share, as authorized on the date of the Subscription Agreement, and (ii) any other securities into
which or for which any of the securities described in (i) may be converted or exchanged pursuant to
a plan of recapitalization, reorganization, merger, sale of assets or otherwise.

     (C) For purposes of this Warrant, the “Fair Market Value” of a share of Common Stock as of a
particular date (the “Determination Date”) shall mean:

 

 

          (a) If the Company’s Common Stock is traded on an exchange or is quoted on the NASDAQ Global
Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New York Stock Exchange, the
NYSE Amex or the OTC Bulletin Board, then the average of the closing sale prices of the Common
Stock for the five (5) trading days immediately prior to (but not including) the Determination
Date;

          (b) If the Company’s Common Stock is traded on the OTCQB Market, the over-the-counter market
or Pink Sheets, then the lowest average of the closing bid and ask prices reported for the five (5)
trading days immediately prior to (but not including) the Determination Date of any market on which
the Company’s Common Stock is traded;

          (c) Except as provided in clause (d) below and Section 3.1, if the Company’s Common
Stock is not publicly traded, then as the Holder and the Company agree, or in the absence of such
an agreement, by arbitration in accordance with the rules then standing of the American Arbitration
Association, before a single arbitrator to be chosen from a panel of persons qualified by education
and training to pass on the matter to be decided; or

          (d) If the Determination Date is the date of a liquidation, dissolution or winding up, or any
event deemed to be a liquidation, dissolution or winding up pursuant to the Company’s charter, then
all amounts to be payable per share to holders of the Common Stock pursuant to the charter in the
event of such liquidation, dissolution or winding up, plus all other amounts to be payable per
share in respect of the Common Stock in liquidation under the charter, assuming for the purposes of
this clause (d) that all of the shares of Common Stock then issuable upon exercise of all of the
Warrants are outstanding at the Determination Date.

     (D) The term “Other Securities” refers to any stock (other than Common Stock) and other
securities of the Company or any other person (corporate or otherwise) which the holder of the
Warrant at any time shall be entitled to receive, or shall have received, on the exercise of the
Warrant, in lieu of or in addition to Common Stock, or which at any time shall be issuable or shall
have been issued in exchange for or in replacement of Common Stock or Other Securities pursuant to
Section 4 or otherwise.

     (E) The term “Warrant Shares” shall mean the Common Stock issuable upon exercise of this
Warrant.

     1. Exercise of Warrant.

          1.1. Number of Shares Issuable upon Exercise. From and after the Issue Date through
and including the Expiration Date, the Holder hereof shall be entitled to receive, upon exercise of
this Warrant in whole in accordance with the terms of Section 1.2 or upon exercise of this
Warrant in part in accordance with Section 1.3, shares of Common Stock of the Company,
subject to adjustment pursuant to Section 4 below.

          1.2. Full Exercise. This Warrant may be exercised in full by the Holder hereof by
delivery to the Company of an original or facsimile copy of the form of subscription attached as
Exhibit A hereto (the “Subscription Form”) duly executed by such Holder and delivery of
payment, in cash, wire transfer or by certified or official bank check payable to the order of the
Company, in the amount obtained by multiplying the number of shares of Common Stock for which this
Warrant is then exercisable by the Purchase Price then in effect. The original Warrant is not
required to be surrendered to the Company until it has been fully exercised.

 

 

          1.3. Partial Exercise. This Warrant may be exercised in part (but not for a
fractional share) by delivery of a Subscription Form in the manner and at the place provided in
Section 1.2, except that the amount payable by the Holder on such partial exercise shall be
the amount obtained by multiplying (a) the number of whole shares of Common Stock designated by the
Holder in the Subscription Form by (b) the Purchase Price then in effect. On any such partial
exercise, provided the Holder has surrendered the original Warrant, the Company, at its expense,
will forthwith issue and deliver to or upon the order of the Holder hereof a new Warrant of like
tenor, in the name of the Holder hereof or as such Holder (upon payment by such Holder of any
applicable transfer taxes) may request, the whole number of shares of Common Stock for which such
Warrant may still be exercised.

          1.4. Automatic Exercise. In the event this Warrant is exercisable pursuant to the
provisions of Section 2 hereof on a cashless basis as of the close of the last trading day on or
before the Expiration Date, then this Warrant, to the extent not previously unexercised and subject
to the limitation in Section 9 of this Warrant shall be deemed to have been automatically exercised
without the requirement of any notice or delivery of the Subscription Form, pursuant to the terms
of Section 2. Such Expiration Date will be deemed the exercise date for purposes of determining
the Warrant Share Delivery Date and similar terms hereof.

          1.5. Company Acknowledgment. The Company will, at the time of the exercise of the
Warrant, upon the request of the Holder hereof, acknowledge in writing its continuing obligation to
afford to such Holder any rights to which such Holder shall continue to be entitled after such
exercise in accordance with the provisions of this Warrant. If the Holder shall fail to make any
such request, such failure shall not affect the continuing obligation of the Company to afford to
such Holder any such rights.

          1.6. Delivery of Stock Certificates, etc. on Exercise. The Company agrees that,
provided the full purchase price listed in the Subscription Form is received as specified in
Section 1.2, the shares of Common Stock purchased upon exercise of this Warrant shall be
deemed to be issued to the Holder hereof as the record owner of such shares as of the close of
business on the date on which delivery of a Subscription Form shall have occurred and payment made
for such shares as aforesaid. As soon as practicable after the exercise of this Warrant in full or
in part, and in any event within three (3) business days thereafter (“Warrant Share Delivery
Date”), the Company at its expense (including the payment by it of any applicable issue taxes) will
cause to be issued in the name of and delivered to the Holder hereof, or as such Holder (upon
payment by such Holder of any applicable transfer taxes) may direct in compliance with applicable
securities laws, a certificate or certificates for the number of duly and validly issued, fully
paid and non-assessable shares of Common Stock (or Other Securities) to which such Holder shall be
entitled on such exercise, plus, in lieu of any fractional share to which such Holder would
otherwise be entitled, cash equal to such fraction multiplied by the then Fair Market Value of one
full share of Common Stock, together with any other stock or other securities and property
(including cash, where applicable) to which such Holder is entitled upon such exercise pursuant to
Section 1 or otherwise. The Company understands that a delay in the delivery of the
Warrant Shares after the Warrant Share Delivery Date could result in economic loss to the Holder.
As compensation to the Holder for such loss, the Company agrees to pay (as liquidated damages and
not as a penalty) to the Holder for late issuance of Warrant Shares upon exercise of this Warrant
the proportionate amount of $100 per business day after the Warrant Share Delivery Date for each
$10,000 of Purchase Price of Warrant Shares for which this Warrant is exercised which are not
timely delivered, not to exceed a maximum amount of liquidated damages of 10% of the Purchase Price
of the Warrant Shares. The Company shall pay any payments incurred under this Section 1.6 in
immediately available funds upon demand. Furthermore, in addition to any other remedies which may
be available to the Holder, in the event that the Company fails for any reason to effect delivery
of the Warrant Shares by the Warrant Share Delivery Date, the Holder may revoke all or part of the
relevant Warrant exercise by delivery of a notice to such effect to the Company, whereupon the
Company and the Holder shall each be restored to their respective positions immediately

 

 

prior to the exercise of the relevant portion of this Warrant, except that the liquidated
damages described above shall be payable through the date notice of revocation or rescission is
given to the Company.

          1.7. Buy-In. In addition to any other rights available to the Holder, if the Company
fails to deliver to a Holder the Warrant Shares as required pursuant to this Warrant after the
Warrant Share Delivery Date and the Holder or a broker on the Holder’s behalf, purchases (in an
open market transaction or otherwise) shares of common stock to deliver in satisfaction of a sale
by such Holder of the Warrant Shares which the Holder was entitled to receive from the Company (a
“Buy-In”), then the Company shall pay in cash to the Holder (in addition to any remedies available
to or elected by the Holder) the amount by which (A) the Holder’s total purchase price (including
brokerage commissions, if any) for the shares of common stock so purchased exceeds (B) the
aggregate Purchase Price of the Warrant Shares required to have been delivered together with
interest thereon at a rate of 15% per annum, accruing until such amount and any accrued interest
thereon is paid in full (which amount shall be paid as liquidated damages and not as a penalty).
For example, if a Holder purchases shares of Common Stock having a total purchase price of $11,000
to cover a Buy-In with respect to $10,000 of Purchase Price of Warrant Shares to have been received
upon exercise of this Warrant, the Company shall be required to pay the Holder $1,000, plus
interest. The Holder shall provide the Company written notice indicating the amounts payable to the
Holder in respect of the Buy-In.

     2. Exercise.

          (a) Payment upon exercise may be made at the option of the Holder either in (i) cash, wire
transfer or by certified or official bank check payable to the order of the Company equal to the
applicable aggregate Purchase Price, (ii) by delivery of Common Stock issuable upon exercise of the
Warrants in accordance with Section (b) below or (iii) by a combination of any of the foregoing
methods, for the number of Common Stock specified in such form (as such exercise number shall be
adjusted to reflect any adjustment in the total number of shares of Common Stock issuable to the
holder per the terms of this Warrant) and the holder shall thereupon be entitled to receive the
number of duly authorized, validly issued, fully-paid and non-assessable shares of Common Stock (or
Other Securities) determined as provided herein.

          (b) Subject to the provisions herein to the contrary, if the Fair Market Value of one share of
Common Stock is greater than the Purchase Price (at the date of calculation as set forth below), in
lieu of exercising this Warrant for cash, the holder may elect to receive shares equal to the value
(as determined below) of this Warrant (or the portion thereof being cancelled) by delivery of a
properly endorsed Subscription Form delivered to the Company by any means described in Section
1.2, in which event the Company shall issue to the holder a number of shares of Common Stock
computed using the following formula:

	 	 	 	 	 	 	 

	 

	 	X=
	 	Y (A-B)
 

A
	 	 

	 	 	 	 	 

	Where

	 	X=
	 	the number of shares of Common Stock to be issued to the Holder
	 
	 	 	 	 
	 

	 	Y=
	 	the number of shares of Common Stock
purchasable under the Warrant or, if only a portion of the Warrant is
being exercised, the portion of the Warrant being exercised (at the
date of such calculation)
	 
	 	 	 	 
	 

	 	A=
	 	Fair Market Value
	 
	 	 	 	 
	 

	 	B=
	 	Purchase Price (as adjusted to the date of such calculation)

 

 

     For purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood and
acknowledged that the Warrant Shares issued in a cashless exercise transaction in the manner
described above shall be deemed to have been acquired by the Holder, and the holding period for the
Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued
pursuant to the Subscription Agreement.

     3. Adjustment for Reorganization, Consolidation, Merger, etc.

          3.1. Fundamental Transaction. If, at any time while this Warrant is outstanding, (A)
the Company effects any merger or consolidation of the Company with or into another entity, (B)
the Company effects any sale of all or substantially all of its assets in one or
a series of related transactions, (C) any tender offer or exchange offer (whether by the Company
or another entity) is completed pursuant to which holders of Common
Stock are permitted to tender or exchange their shares for other securities, cash or property, (D)
the Company consummates a stock purchase agreement or other business combination (including,
without limitation, a reorganization, recapitalization, or spin-off) with one or more persons or
entities whereby such other persons or entities acquire more than the 50% of the outstanding shares
of Common Stock (not including any shares of Common Stock held by such other persons or entities
making or party to, or associated or affiliated with the other persons or entities making or party
to, such stock purchase agreement or other business combination), (E) any “person” or “group” (as
these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act) is or shall become
the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of
more than 50% of the aggregate Common Stock of the Company, or (F) the Company effects any
reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common
Stock is effectively converted into or exchanged for other securities, cash or property (in any
such case, a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have been issuable upon
such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of
the Holder, (a) upon exercise of this Warrant, the number of shares of Common Stock of the
successor or acquiring corporation or of the Company, if it is the surviving corporation, and any
additional consideration (the “Alternate Consideration”) receivable upon or as a result of such
reorganization, reclassification, merger, consolidation or disposition of assets by a Holder of the
number of shares of Common Stock for which this Warrant is exercisable immediately prior to such
event. For purposes of any such exercise, the determination of the Purchase Price shall
be appropriately adjusted to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common Stock in such
Fundamental Transaction, and the Company shall apportion the Purchase Price among the Alternate
Consideration in a reasonable manner reflecting the relative value of any different components of
the Alternate Consideration. If holders of Common Stock are given any choice as to the securities,
cash or property to be received in a Fundamental Transaction, then the Holder shall be given the
same choice as to the Alternate Consideration it receives upon any exercise of this Warrant
following such Fundamental Transaction. To the extent necessary to effectuate the
foregoing provisions, any successor to the Company or surviving entity in such Fundamental
Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and
evidencing the Holder’s right to exercise such warrant into Alternate Consideration. The terms of
any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring
any such successor or surviving entity to comply with the provisions of this Section 3.1
and insuring that this Warrant (or any such replacement security) will be similarly adjusted upon
any subsequent transaction an
alogous to a Fundamental Transaction.

          3.2. Continuation of Terms. Upon any reorganization, consolidation, merger or
transfer (and any dissolution following any transfer) referred to in this Section 3, this
Warrant shall continue in full force and effect and the terms hereof shall be applicable to the
Other Securities and property receivable on the exercise of this Warrant after the consummation of
such reorganization,

 

 

consolidation or merger or the effective date of dissolution following any such transfer, as
the case may be, and shall be binding upon the issuer of any Other Securities, including, in the
case of any such transfer, the person acquiring all or substantially all of the properties or
assets of the Company, whether or not such person shall have expressly assumed the terms of this
Warrant as provided in Section 4.

     4. Extraordinary Events Regarding Common Stock. In the event that the Company shall
(a) issue additional shares of Common Stock as a dividend or other distribution on outstanding
Common Stock, (b) subdivide its outstanding shares of Common Stock, or (c) combine its outstanding
shares of the Common Stock into a smaller number of shares of Common Stock, then, in each such
event, the Purchase Price shall, simultaneously with the happening of such event, be adjusted by
multiplying the then Purchase Price by a fraction, the numerator of which shall be the number of
shares of Common Stock outstanding immediately prior to such event and the denominator of which
shall be the number of shares of Common Stock outstanding immediately after such event, and the
product so obtained shall thereafter be the Purchase Price then in effect. The Purchase Price, as
so adjusted, shall be readjusted in the same manner upon the happening of any successive event or
events described herein in this Section 4. The number of shares of Common Stock that the
Holder of this Warrant shall thereafter, on the exercise hereof, be entitled to receive shall be
adjusted to a number determined by multiplying the number of shares of Common Stock that would
otherwise (but for the provisions of this Section 4) be issuable on such exercise by a
fraction of which (a) the numerator is the Purchase Price that would otherwise (but for the
provisions of this Section 4) be in effect, and (b) the denominator is the Purchase Price
in effect on the date of such exercise.

     5. Certificate as to Adjustments. In each case of any adjustment or readjustment in
the shares of Common Stock (or Other Securities) issuable on the exercise of the Warrants, the
Company at its expense will promptly cause its Chief Financial Officer or other appropriate
designee to compute such adjustment or readjustment in accordance with the terms of the Warrant and
prepare a certificate setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based, including a statement of (a) the consideration
received or receivable by the Company for any additional shares of Common Stock (or Other
Securities) issued or sold or deemed to have been issued or sold, (b) the number of shares of
Common Stock (or Other Securities) outstanding or deemed to be outstanding, and (c) the Purchase
Price and the number of shares of Common Stock to be received upon exercise of this Warrant, in
effect immediately prior to such adjustment or readjustment and as adjusted or readjusted as
provided in this Warrant. The Company will forthwith mail a copy of each such certificate to the
Holder of the Warrant and any Warrant Agent of the Company (appointed pursuant to
Section 10 hereof).

     6. Reservation of Stock, etc. Issuable on Exercise of Warrant; Financial Statements.
The Company will at all times reserve and keep available, solely for issuance and delivery on the
exercise of the Warrants, all shares of Common Stock (or Other Securities) from time to time
issuable on the exercise of the Warrant.

     7. Assignment; Exchange of Warrant. Subject to compliance with applicable securities
laws, this Warrant, and the rights evidenced hereby, may be transferred by any registered holder
hereof (a “Transferor”). On the surrender for exchange of this Warrant, with the Transferor’s
endorsement in the form of Exhibit B attached hereto (the “Transferor Endorsement Form”) and
together with an opinion of counsel reasonably satisfactory to the Company that the transfer of
this Warrant will be in compliance with applicable securities laws, the Company will issue and
deliver to or on the order of the Transferor thereof a new Warrant or Warrants of like tenor, in
the name of the Transferor and/or the transferee(s) specified in such Transferor Endorsement Form
(each a “Transferee”), calling in the aggregate on the face or faces thereof for the number of
shares of Common Stock called for on the face or faces of the Warrant so surrendered by the
Transferor.

 

 

     8. 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 any such
loss, theft or destruction of this Warrant, on delivery of an indemnity agreement or security
reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation,
on surrender and cancellation of this Warrant, the Company at its expense, twice only, will execute
and deliver, in lieu thereof, a new Warrant of like tenor.

     9. Maximum Exercise. The Holder shall not be entitled to exercise this Warrant on an
exercise date, in connection with that number of shares of Common Stock which would be in excess of
the sum of (i) the number of shares of Common Stock beneficially owned by the Holder and its
affiliates on an exercise date, and (ii) the number of shares of Common Stock issuable upon the
exercise of this Warrant with respect to which the determination of this limitation is being made
on an exercise date, which would result in beneficial ownership by the Holder and its affiliates of
more than 4.99% of the outstanding shares of Common Stock on such date. For the purposes of the
immediately preceding sentence, beneficial ownership shall be determined in accordance with
Section 13(d) of the 1934 Act and Rule 13d-3 thereunder. Subject to the foregoing, the Holder
shall not be limited to aggregate exercises which would result in the issuance of more than 4.99%.
The restriction described in this paragraph may be waived, in whole or in part, upon sixty-one (61)
days prior notice from the Holder to the Company to increase such percentage to up to 9.99%, but
not in excess of 9.99%. The Holder may decide whether to convert a Convertible Note or exercise
this Warrant to achieve an actual 4.99% or up to 9.99% ownership position as described above, but
not in excess of 9.99%.

     10. Warrant Agent. The Company may, by written notice to the Holder of the Warrant,
appoint an agent (a “Warrant Agent”) for the purpose of issuing Common Stock (or Other Securities)
on the exercise of this Warrant pursuant to Section 1, exchanging this Warrant pursuant to
Section 7, and replacing this Warrant pursuant to Section 8, or any of the
foregoing, and thereafter any such issuance, exchange or replacement, as the case may be, shall be
made at such office by such Warrant Agent.

     11. Transfer on the Company’s Books. Until this Warrant is transferred on the books
of the Company, the Company may treat the registered holder hereof as the absolute owner hereof for
all purposes, notwithstanding any notice to the contrary.

     12. Notices. All notices, demands, requests, consents, approvals, and other
communications required or permitted hereunder shall be in writing and, unless otherwise specified
herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery or facsimile, addressed as set forth below or to such
other address as such party shall have specified most recently by written notice. Any notice or
other communication required or permitted to be given hereunder shall be deemed effective (a) upon
hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (if delivered on a business day during
normal business hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business hours where such
notice is to be received) or (b) on the second business day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon actual receipt of such
mailing, whichever shall first occur. The addresses for such communications shall be: (i) if to
the Company, to: Vicor Technologies, Inc., 10415 2300 NW Corporate Boulevard Suite 123 Boca Raton,
FL 33431, Attn: David H. Fater, CEO, facsimile: (561) 995-2449, with a copy by facsimile only to:
Akerman Senterfitt, One Southeast Third Avenue, 25th Floor, Miami, Florida 33131, Attn: Leonard H.
Bloom, Esq., facsimile: (305) 374-5095, and (ii) if to the Subscribers, to: the addresses and fax
numbers indicated on the signature page hereto, with additional copies by fax only to (which shall
not constitute notice) Perrin Holden & Davenport Capital Corp., 5 Hanover Square Suite 500, New
York New York 10004,

 

 

Attn: Jody Eisenman, facsimile: (212) 202-3937 and Ellenoff Grossman & Schole LLP, 150 East
42nd Street, 11th Floor, New York, NY 10017, Attn: Stuart Neuhauser, Esq.,
facsimile: (212) 370-7889.

     13. Law Governing This Warrant. This Warrant shall be governed by and construed in
accordance with the laws of the State of New York without regard to principles of conflicts of
laws. Any action brought by either party against the other concerning the transactions
contemplated by this Warrant shall be brought only in the state courts of New York or in the
federal courts located in the state and county of New York. The parties to this Warrant hereby
irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and
shall not assert any defense based on lack of jurisdiction or venue or based upon forum non
conveniens. The Company and Holder waive trial by jury. The prevailing party shall be
entitled to recover from the other party its reasonable attorney’s fees and costs. In the event
that any provision of this Warrant or any other agreement delivered in connection herewith is
invalid or unenforceable under any applicable statute or rule of law, then such provision shall be
deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to
conform with such statute or rule of law. Any such provision which may prove invalid or
unenforceable under any law shall not affect the validity or enforceability of any other provision
of any agreement. Each party hereby irrevocably waives personal service of process and consents
to process being served in any suit, action or proceeding in connection with this Agreement or any
other Transaction Document by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to
serve process in any other manner permitted by law.

[-Signature Page Follows-]

 

 

     IN WITNESS WHEREOF, the Company has executed this Warrant as of the date first written above.

	 	 	 	 	 
	 	VICOR TECHNOLOGIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	David H. Fater 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

 

 

Exhibit A

FORM OF SUBSCRIPTION

(to be signed only on exercise of Warrant)

TO: VICOR TECHNOLOGIES, INC.

The undersigned, pursuant to the provisions set forth in the attached Warrant (No. ___________),
hereby irrevocably elects to purchase (check applicable box):

	—	 	 ________ shares of the Common Stock covered by such Warrant; or
	 
	—	 	 the maximum number of shares of Common Stock covered by such Warrant
pursuant to the cashless exercise procedure set forth in Section 2 of
the Warrant.

The undersigned herewith makes payment of the full purchase price for such shares at the price per
share provided for in such Warrant, which is $_________. Such payment takes the form of (check
applicable box or boxes):

	—	 	 $__________ in lawful money of the United States; and/or
	 
	—	 	 the cancellation of such portion of the attached Warrant as is
exercisable for a total of _______ shares of Common Stock (using a
Fair Market Value of $_______ per share for purposes of this
calculation); and/or
	 
	— 	 	 the cancellation of such number of shares of Common Stock as is
necessary, in accordance with the formula set forth in Section 2 of
the Warrant, to exercise this Warrant with respect to the maximum
number of shares of Common Stock purchasable pursuant to the cashless
exercise procedure set forth in Section 2.

	 	 	 

	The undersigned requests that the certificates for such shares be issued in the name of, and
delivered pursuant to the DTC instructions below or to ________________________
whose address is 

	 
	 	 
	 

The undersigned represents and warrants that all offers and sales by the undersigned of the
securities issuable upon exercise of the within Warrant shall be made pursuant to registration of
the Common Stock under the Securities Act of 1933, as amended (the “Securities Act”), or pursuant
to an exemption from registration under the Securities Act.

	 	 	 

	DTC Instructions:
	 	 
	 

	 	 
	 
	 	 
	 
	 
	 	 
	 

	 	 	 

	Dated:___________________
	 	 
	 

	 	 
	 

	 	(Signature must conform to name of holder as
specified on the face of the Warrant)
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	(Address)

 

 

Exhibit B

FORM OF TRANSFEROR ENDORSEMENT

(To be signed only on transfer of Warrant)

     For value received, the undersigned hereby sells, assigns, and transfers unto the person(s)
named below under the heading “Transferees” the right represented by the within Warrant to purchase
the percentage and number of shares of Common Stock of VICOR TECHNOLOGIES, INC. to which the within
Warrant relates specified under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such person Attorney to
transfer its respective right on the books of VICOR TECHNOLOGIES, INC. with full power of
substitution in the premises.

	 	 	 	 	 	 	 	 	 
	Transferees	 	Percentage Transferred	 	Number Transferred	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

	 	 	 

	Dated: __________________, _______

	 	
 
	 

	 	(Signature must conform to name of
holder as specified on the face of the warrant)
	 
	 	 
	Signed in the presence of:
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	           (Name)
	 	 
	 

	 	 
	 

	 	           (address)
	 
	 	 
	ACCEPTED AND AGREED:

	 	

	[TRANSFEREE]

	 	          (address)

	 
	 	 
	 
	 	  
	           (Name)

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