Document:

SERVICE
				  AGREEMENT
				

			 

 

	 
		 
	 

	 
		PARTIES 
	 

	 
		This Agreement is entered into
		this 1st day of January, 2007, by and between ALDA & Associates
		International, Inc., and its successors and assigns, hereafter referred to as
		“ALDA”), and Vicor Technologies, Inc. (hereafter referred to as
		“Client”), whose respective addresses are set forth on the signature
		page of this Agreement. 
	 

	 
		I. TERM OF AGREEMENT
		
	 

	 
		A. The initial term of this
		Agreement shall be for thirty days (the “Initial Term”). Following
		the completion of the Initial Term, this Agreement shall automatically renew
		and remain in full force and effect for additional terms of thirty days, and
		shall remain in effect until either party gives written notice to the other
		party by delivering notice of termination. 
	 

	 
		II. SERVICES 
	 

	 
		It is the interest of Client to
		have certain of its employees employed by ALDA and provide their services to
		Client. In this manner, Client is able to obtain health insurance and other
		benefits at a significant cost savings. These employees comprise the following
		list, which may be modified from time to time:
	 

	 
		David H. Fater—Chief
		Executive Officer
	 

	 
		Jerry M. Anchin—Vice
		President and Director of Research
	 

	 
		Eileen Galvin—Executive
		Assistant
	 

	 
		Client expressly absolves ALDA
		of control over the day-to-day job duties of these leased employees. In the
		event Client does not pay ALDA for all services rendered, ALDA may pay leased
		employees at the minimum wage rate or minimum salary provided for in the Fair
		Labor Standards Act. This provision in no way affects the obligation of Client
		to pay ALDA for all services rendered and in no way affects the obligations of
		Client pursuant to state and federal law, including but not limited to the
		requirement to pay all leased employees their regular rate of pay. ALDA will
		give written notice of the relationship between ALDA and Client to each leased
		employee it assigns to perform services for Client. ALDA does not assume any
		responsibility for and makes no assurances, warranties, or guarantees as to the
		ability or competence of any leased employee. 
	 

	 
		III. WORKERS’
		COMPENSATION 
	 

	 
		A. ALDA shall secure
		workers’ compensation coverage in such amounts as is required by
		applicable law and shall be responsible for the management of workers’
		compensation claims, claims filings and related procedures for its leased
		employees for services which they perform as leased employees. Should Client be
		allowed to maintain its own workers’ compensation policy, ALDA shall be
		named as an additional insured on such policy or policies. In addition, in such
		situations where Client maintains its own workers’ compensation policy,
		and where allowed by law, Client shall at no time directly pay any
		workers’ compensation premiums but shall instead, at least fourteen (14)
		days prior to the premium due date, remit to ALDA by overnight mail, next day
		delivery service, a cashier’s check sufficient to cover the premium due
		from Client in order for ALDA to submit these funds to the carrier. ALDA shall
		have no responsibility in such situations where Client retains its own
		workers’ compensation policy other than to remit to the carrier such
		payments as Client forwards to ALDA. 
	 

	 
		B. In the event Client or any
		leased employee fails to notify ALDA within FORTY-EIGHT (48) hours 
	 

	 
		 
	 

	 
		 
	 

	 
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		following a work-related
		accident or injury, Client shall immediately reimburse ALDA for any fees,
		penalties, or expenses imposed upon or incurred by ALDA. 
	 

	 
		IV. EMPLOYER PRACTICES
		LIABILITY INSURANCE 
	 

	 
		A. As of the date of this
		Agreement, ALDA has secured Employer Practices Liability Insurance (EPLI) that
		provides coverage for certain employment-related claims. Nothing in this
		Agreement is intended to create rights to insurance in addition to the terms of
		such insurance policy. To the extent the provisions of this Agreement conflict
		with such policy, the provisions of the EPLI shall control. In the event that
		EPLI becomes unavailable on terms acceptable to ALDA (in ALDA’ sole
		discretion), the Client will be notified of the cancellation of such insurance
		in accordance with the terms of the insurance policy. 
	 

	 
		B. The EPLI shall not cover any
		claim or cause of action that arose or existed prior to the effective date of
		this Agreement and neither ALDA, nor any insurer, shall be obligated to pay for
		any defense of such claim or cause of action or otherwise participate
		financially in the resolution of such claim. 
	 

	 
		C. The EPLI has a retention
		amount that the Client must pay before the insurance carrier is obligated to
		make any payment. On claims covered by such EPLI, Client agrees to pay the
		total retention amount due pursuant to the EPLI policy. In addition, Client
		agrees: 
	 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  To act in conformity
				  with the terms of the EPLI and with the terms of this Agreement; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  To cooperate with ALDA
				  in the investigation of proceeding of such claim; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  To settle or compromise
				  such claims upon the terms and conditions satisfactory to ALDA; and 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iv)
				

			 	
				
				  This Agreement must
				  remain in effect and not be terminated by either the Client or ALDA (without
				  good cause) for a one (1) year period following the resolution of any claim
				  under the EPLI.
				

			 

	 
		V. BENEFIT PLANS 

	 

	 
		A. Client acknowledges that
		ALDA has available employee benefit plans for the possible application to
		employees. Any other employee benefit plans maintained by Client, regardless of
		whether they provide benefits to the employees, shall be the sole
		responsibility of Client. All benefit plans shall be subject to the terms and
		conditions of eligibility and to such modifications as may occur to such plans.
		ALDA reserves the right to change any benefit plan which it offers to leased
		employees (including the right to change carriers) and to raise the rates
		charged for such benefit plans. Following any increase in rates or change in
		any benefit plan being offered to leased employees, Client may terminate this
		Agreement within fourteen (14) days of its receipt from ALDA or its applicable
		carrier or benefit plan administrator of notification of an increase in rates
		or a change in any benefit plan. 
	 

	 
		VI. SERVICE FEES 

	 

	 
		A. For services to be rendered
		under this Agreement, ALDA shall be entitled to timely reimbursement of all
		costs incurred in connection with this service agreement. It is understood that
		this is a cost basis contract with no profit margin included. 
	 

	 
		B. In order to administer this
		agreement, client will provide one office in its premises without cost to ALDA
		for the duration of this agreement. 
	 

	 
		VII. LIMIT OF SERVICES
		
	 

	 
		ALDA will only provide the
		above listed services and no other services shall be provided or implied,
		including without limitation any strategic, operational or other business
		related decisions with regard to Client’s business. Such decisions shall
		exclusively be the responsibility of Client and ALDA shall bear no
		responsibility nor liability for any actions or inactions by Client. When
		implementing such decisions, whether or not the actions are implemented by
		leased employees, Client shall be acting solely on its own volition and
		responsibility. If ALDA is leasing any supervisory employees to Client, such
		supervisory employees’ scope of employment is strictly limited.
	 

	 
		 
	 

	 
		 
	 

	 
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		Supervisors’ actions which
		are in violation of law or which result in liability will be outside the scope
		of their responsibility as ALDA leased employees and in such an event
		supervisory employees will be acting solely as the agents of Client. 
	 

	 
		VIII. INDEMNIFICATIONS
		
	 

	 
		A. Without regard to the fault
		or negligence of any party, Client hereby unconditionally indemnifies, holds
		harmless, protects and defends ALDA, and all subsidiary, affiliate, related,
		and parent companies, their current and former respective shareholders,
		non-leased employees, attorneys, officers, directors, agents and
		representatives (all indemnified parties referred to as “ALDA Indemnified
		Parties”) from and against any and all claims, demands, damages (including
		liquidated, punitive and compensatory), injuries, deaths, actions and causes of
		actions, costs and expenses (including attorney’s fees and expenses at all
		levels of proceedings), losses and liabilities of whatever nature (including
		liability to third parties), and all other consequences of any sort, whether
		known or unknown, without limit and without regard to the cause or causes
		thereof or the negligence of ALDA or any ALDA Indemnified Party, that may be
		asserted or brought against any ALDA Indemnified Party which is in any way
		related to this Agreement, the products or services provided by Client or by
		ALDA, the actions of any leased employee, the actions of any non-leased
		employee employed by Client, or of any other individual, including without
		limitation, any violation of any local, state and/or federal law, regulation,
		ordinance, directive or rule whatsoever, and all employment-related matters
		which shall include but not be limited to all matters arising under local,
		state and/or federal right-to-know laws, environmental laws, all laws within
		the jurisdiction of the NLRB, OSHA, and EEOC, including Title VII of the Civil
		Rights Act of 1964, as amended, the Americans with Disabilities Act (including
		without limitation those aspects relating to employment, public access and
		public accommodation), the WARN Act, ERISA, all laws governing wages and hours
		(including without limitation: prevailing wage rate; exempt and non-exempt
		status; child labor; and minimum wage and overtime matters), all laws governing
		race, sex, sexual harassment, retaliation, religion, national origin, color,
		age, veteran status, disability, and marital status, all laws governing
		disclosed and undisclosed benefit plans, and all other labor laws. 
	 

	 
		C. ALDA hereby unconditionally
		indemnifies, holds harmless, protects and defends Client, and all subsidiary,
		affiliate and parent companies, their shareholders, employees, attorneys,
		officers, directors, agents and representatives from and against any and all
		claims, demands, damages, injuries, deaths, actions, costs and expenses
		(including attorney’s fees and expenses at all levels of proceedings),
		losses and liabilities of whatever nature (including liability to third
		parties), and other consequences of any sort, arising out of the negligent or
		willful failure of any non-leased employee employed by ALDA at its corporate
		office to comply with applicable workers’ compensation, withholding tax,
		or ERISA laws, rules and regulations or where any action is taken by Client in
		compliance with a written corporate ALDA policy, procedure, or direction which
		is illegal under any applicable local, state or federal law. 
	 

	 
		D. All indemnifications are and
		shall be deemed to be contractual in nature and shall survive the termination
		or expiration of this Agreement. 
	 

	 
		IX. GOVERNMENT
		INVESTIGATIONS/LEGAL ACTIONS/INQUIRIES 
	 

	 
		A. Client acknowledges that it
		is essential to ALDA’ performance under this Agreement that ALDA have
		complete knowledge of any government investigation or inquiry or private
		adversary action which could in any manner impact upon the types of duties
		contemplated by this Agreement. For example, but not by limitation, an audit by
		the Bureau of Workers’ Compensation could affect the performance of
		functions under this Agreement. Thus, Client has provided to ALDA, prior to
		entering into this Agreement, full and complete disclosure, in writing, of any
		such administrative proceeding (including but not limited to EEOC, NLRB, OSHA,
		and Wage and Hour matters), investigation, lawsuit, or other adversary
		proceeding, including those which are threatened as well as those not yet
		asserted, in which Client has been involved during the last five (5) years.
		
	 

	 
		B. ALDA shall not be considered
		to be an employer with any liability regarding leased employees for purposes of
		claims of discrimination involving disability, race, sex, sexual harassment,
		religion, color, age, national origin, marital status, veteran status,
		retaliation, or for any other claim pursuant to any local, state or federal law
		regulation, or ordinance unless the action is taken by Client in compliance
		with a written corporate ALDA policy, procedure, or corporate direction, which
		is illegal under any applicable local, state or federal law. 
	 

	 
		 
	 

	 
		 
	 

	 
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		C. Client represents that there
		are no union employees at the Client work-site, that there are no collective
		bargaining representatives for the leased employees, and that there are no
		applicable collective bargaining agreements with any labor organization.
		
	 

	 
		XI. EFFECT OF TERMINATION
		
	 

	 
		A. If for any reason payment is
		not made when due, Client agrees that ALDA will have the right to immediately
		terminate its performance hereunder, withhold its employees services, and/or
		bring suit seeking damages. Upon termination or expiration of this Agreement,
		for any reason, or should Client fail to timely pay ALDA for its services, all
		of the employees shall be deemed to have been laid off by ALDA and immediate
		notification of this shall be provided by Client to employees who had been
		leased pursuant to this Agreement. Client shall immediately assume all federal,
		state and local obligations of an employer to the employees which are not in
		conflict with state or federal law, and shall immediately assume full
		responsibility for providing workers’ compensation coverage. ALDA shall
		immediately be released from such obligations as are permitted by law. It is
		the intent of the parties that, where allowed by law, they be placed in their
		respective positions immediately before their entry into this Agreement in the
		event of a termination or expiration or Client’s failure to pay ALDA. If
		for any reason (whether or not required by applicable law) ALDA makes any
		payment to any of the employees after this Agreement has been terminated, ALDA
		shall be entitled to full reimbursement for such expenditures. 
	 

	 
		B. ALDA may also terminate this
		Agreement if, at any time, ALDA in its sole discretion determines that a
		material adverse change has occurred in the financial condition of Client, or
		that Client is unable to pay its debts as they become due in the ordinary
		course of business. This Agreement may also be terminated at any time by ALDA
		in the event of any federal, state, or local legislation, regulatory action, or
		judicial decision which, in the sole discretion of ALDA, adversely affects its
		interest under this Agreement. Such termination or expiration shall not relieve
		Client of any obligation set forth herein, including but not limited to its
		payment obligations to ALDA. 
	 

	 
		XII. GENERAL PROVISIONS
		
	 

	 
		A. Client acknowledges that it
		has not been induced to enter into this Agreement by any representation or
		warranty not set forth in this Agreement, including but not limited to any
		statement made by any marketing agent of ALDA. Client acknowledges that ALDA
		has made no representation concerning whether ALDA’ services will improve
		the performance of Client’s business. 
	 

	 
		B. In no event will ALDA be
		liable for any indirect, incidental or consequential damages to Client as a
		result of a breach of this Agreement nor for any loss of business, goodwill,
		profits or other damages. 
	 

	 
		C. Client specifically
		authorizes ALDA to conduct a credit and background reference check on Client
		and such officers of Client as ALDA deems appropriate in compliance with the
		requirements of law. 
	 

	 
		D. This Agreement is assignable
		by ALDA at its sole discretion. 
	 

	 
		E. Client acknowledges and
		agrees that ALDA is not engaged in the practice of law or the provision of
		legal services, and that Client alone is completely and independently
		responsible for its own legal rights and obligations. 
	 

	 
		F. This Agreement constitutes
		the entire agreement between the parties with regard to this subject matter and
		no other agreement; statement, promise or practice between the parties relating
		to the subject matter shall be binding on the parties. This Agreement may be
		changed only by a written amendment signed by both parties. 
	 

	 
		G. The failure by either party
		at any time to require strict performance by the other party or to claim a
		breach of any provision of this Agreement will not be construed as a waiver of
		any subsequent breach nor affect the effectiveness of this Agreement, or any
		part thereof, or prejudice either party as regards to any subsequent action.
		
	 

	 
		H. This Agreement shall be
		governed by and construed in accordance with the laws of the State of Florida
		and venue shall be in the applicable court in Palm Beach County, Florida.
		
	 

	 
		 
	 

	 
		 
	 

	 
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		I. In the event of any lawsuit
		or other proceeding to enforce the provisions of this Agreement, the prevailing
		party shall be entitled to an award of its costs and reasonable attorney’s
		fees incurred at all levels of proceedings. 
	 

	 
		J. Any notice or demand given
		hereunder shall be accomplished by the personal delivery in writing (with
		written receipt) or by other delivery with proof of delivery or attempted
		delivery to the address set forth herein for the other party, and shall be
		deemed effective upon proof of attempted delivery (actual delivery to be made
		as soon as is practicable following attempted delivery). 
	 

	 
		K. No rights of any third party
		are created by this Agreement and no person not a party to this Agreement may
		rely on any aspect of this Agreement notwithstanding any representation,
		written or oral, to the contrary.
	 

	 
		L. In the event that any
		provision contained in this Agreement is held to be unenforceable by a court of
		competent jurisdiction, the validity, legality, or enforceability of the
		remainder of this Agreement shall in no way be affected or impaired thereby.
		
	 

	 
		M. ALDA will notify all leased
		employees of this Agreement at inception and termination or expiration of
		Agreement. Client shall also immediately upon termination or expiration of this
		Agreement notify all employees of the termination or expiration of this
		Agreement and inform them that they are no longer covered by ALDA’
		workers’ compensation policy. 
	 

	 
		N. Any false statement or
		omission with regard to any information supplied by Client to ALDA in
		anticipation of Client’s contracting with ALDA or at any other time shall
		be deemed a material breach of this Agreement and ALDA, at its option, may
		terminate this Agreement and seek appropriate relief. 
	 

	 
		O. Any and all inventions,
		discoveries, improvements, copyrightable works and creations (hereafter
		referred to as “Intellectual Property”) which Client has previously,
		solely or jointly, conceived or made or may conceive or make during the period
		of this Agreement, whether or not accomplished through the use of leased
		employees, shall be the sole and exclusive property of Client. Client shall
		have sole and exclusive responsibility for protecting its rights to such
		Intellectual Property and to all of its other assets and ALDA shall have no
		responsibility with regard to same. 
	 

	 
		P. Any responsibility and/or
		liability with regard to any employment contract between Client and any
		employee leased to Client’s work-site shall be the exclusive
		responsibility and/or liability of Client and ALDA shall not be a party to any
		such agreement. ALDA will have no responsibility nor liability in connection
		with or arising out of any such employment contract except to prepare checks
		and to pay any such employee who is a party to such a contract, in conformity
		with information provided by Client. With respect to any employment contract
		between Client and any employee leased to Client’s work-site, Client shall
		be acting solely on its own volition and responsibility with regard to all
		aspects of any such contract, including but not limited to its negotiation,
		compliance, implementation, renewal, enforcement, and termination. 
	 

	 
		Q. Complaints, allegations or
		incidents of any tortious misconduct or workplace safety violations, regardless
		of the source, must be reported by Client to ALDA immediately upon becoming
		known to Client. 
	 

	 
		R. Client may not assign this
		Agreement nor its rights and duties hereunder, nor any interest herein, without
		the prior written consent of ALDA. Client will provide at least fourteen (14)
		days prior written notice to ALDA of any sale of Client. Where ALDA agrees in
		writing to a successor becoming obligated to comply with this Agreement, this
		Agreement may be terminated by ALDA at any time in ALDA’ sole discretion
		during the first sixty (60) days following successor’s assumption of this
		Agreement. Thereafter, this Agreement may only be terminated by ALDA in
		conformity with the terms of this Agreement. 
	 

	 
		S. This Agreement shall be
		valid and enforceable only upon signature by an authorized Controlling Person
		of ALDA. Any individual signing this Agreement on behalf of Client represents,
		warrants and guarantees that she or he has full authority to do so. Each party
		represents that it has the power and actual authority to enter into this
		Agreement and to be bound by the conditions and terms contained herein. 

	 

	 
		 
	 

	 
		 
	 

	 
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		T. In recognition of the effort
		that is necessary to provide the services described in this Agreement, ALDA and
		Client agree to cooperate with each other. This duty to cooperate shall
		encompass the obligation of the other party to timely supply documents,
		witnesses and such other evidence as is necessary for a party to properly
		fulfill its obligations under this Agreement. In addition, Client shall permit
		ALDA and/or its workers’ compensation carrier access during normal working
		hours, upon reasonable notice to Client, to any Client Work Location at which,
		or from which, work-site employees perform work. Such access shall include the
		ability of ALDA and/or its workers’ compensation carrier to examine books
		and records of Client deemed appropriate by ALDA or its workers’
		compensation carrier in order to determine compliance with this Agreement.
		
	 

	 
		U. Client understands that
		pursuant to Florida law, it may not enter into an employee leasing relationship
		with ALDA if Client owes a current or prior employee leasing company any money
		pursuant to any service agreement which existed between that current or prior
		employee leasing company and Client, or if Client owes a current or prior
		insurer any premium for workers’ compensation insurance. Client has met
		any and all prior premium and fee obligations with regard to workers’
		compensation premiums and employee leasing payments. 
	 

	 
		V. Upon any request by ALDA or
		its assigns, Client shall allow an on-site physical examination of such books,
		records, documents and other information sources deemed appropriate by ALDA
		and/or its assigns to aid ALDA and its assigns in the determination of proper
		workers’ compensation classifications of leased employees and to aid in
		the determination of payroll amounts paid to such leased employees to the
		extent set forth in Section 440.381, Florida Statutes, and the rules
		promulgated thereunder. Such examination shall be strictly for the purposes of
		determining proper workers’ compensation classifications of leased
		employees and to aid in the determination of payroll amounts paid to such
		leased employees. Client shall remain obligated to ALDA for any delinquency
		and/or unpaid premium amount found in the audit. This provision shall survive
		the expiration or termination of this Agreement. 
	 

	 
		W. With respect to any dispute
		concerning the meaning of this Agreement, this Agreement shall be interpreted
		as a whole with reference to its relevant provisions and in accordance with its
		fair meaning, and no part of this Agreement shall be construed against ALDA on
		the basis that ALDA drafted it. This Agreement shall be viewed as if prepared
		jointly by ALDA and Client. 
	 

	 
		SIGNATURE PAGE
		TO FOLLOW
	 

	 
		 
	 

	 
		 
	 

	 
		6
	 

	 
		 
	 

	 
	 

	 

	 
		ALDA & ASSOCIATES
		INTERNATIONAL, INC. 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  By: 
				

			 	
				
				  
 /s/ Richard M.
				  Cohen 
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  
 Date: 1/2/07
				  
				

			 
	
				
				   
				

			 	
				
				  (Signature)
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		15977 Brier Creek Drive, Suite
		100
	 

	 
		Delray Beach, FL 33446
	 

	 
		Under penalties of perjury,
		I declare that I have read the foregoing document and that the facts stated in
		it are true. In addition, the foregoing Agreement is agreed to. 
	 

	 
		CLIENT 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  By: 
				

			 	
				
				  
 /s/ David H.
				  Fater
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Date: 1/2/07 
				

			 
	
				
				   
				

			 	
				
				  (Signature)
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  David H. Fater 
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  (Print
				  Name)
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  65 1032053 
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  (Federal Identification
				  Number)
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		2300 Corporate Boulevard, Suite
		123
	 

	 
		Boca Raton, FL 33431
	 

	 
		 
	 

	 
		 
	 

	 
		7COLONIAL BANK, N.A.
	 

	 
		BUSINESS LOAN AGREEMENT
	 

	 
		 
	 

	 
			
				
				  Principal

				  $100,000.00
				

			 	

				
				  Loan Date

				  04-30-2007
				

			 	

				
				  Maturity

				  09-26-2007
				

			 	

				
				  Loan No

				  8037225615
				

			 	

				
				  Call/Coll

				  04A0/CD1
				

			 	

				
				  Account
 

				

			 	

				
				  Officer

				  32491
				

			 	

				
				  Initials

				  AN
				

			 
	
				
				  References in the shaded area are for
				  Lender’s use only and do not limit the applicability of this document to
				  any particular loan or item
 Any item
				  above containing “***” has been omitted due to text length
				  limitations.
  
				

			 

 

	 
		 
	 

	 
			
				
				  Borrower:
				

			 	
				
				  Vicor Technologies, Inc.

				  2300 NW Corporate Blvd., Suite 123

				  Boca Raton, FL 33431
				

			 	
				
				   
				

			 	
				
				  Lender:
				

			 	
				
				  Colonial Bank, N.A.

				  Central Boca
 21302 St. Andrews Blvd.

				  Boca Raton, FL 33433

				  (561) 368-6900
				

				
 

 

	 
		THIS BUSINESS LOAN AGREEMENT dated April 30,
		2007, is made and executed between Vicor Technologies, inc.
		(“Borrower”) and Colonial Bank, N.A. (“Lender”) on the
		following terms and conditions. Borrower has received prior commercial loans
		from Lender or has applied to Lender for a commercial loan or loans or other
		financial accommodations, Including those which may be described on any exhibit
		or schedule attached to this Agreement (“Loan”). Borrower understands
		and agrees that: (A) in granting, renewing, or extending any Loan, Lender is
		relying upon Borrowers representations, warranties, and agreements as set forth
		In this Agreement; (B) the granting, renewing, or extending of any Loan by
		Lender at all times shall be subject to Lenders sole judgment and discretion;
		and (C) all such Loans shall be and remain subject to the terms and conditions
		of this Agreement.
	 

	 
		TERM. This Agreement shall be effective as of
		April 30, 2007, and shall continue in full force and effect until such time as
		all of Borrower’s Loans in favor of Lender have been paid in full,
		including principal, interest, costs, expenses, attorneys’ fees, and other
		fees and charges, or until September 26, 2007.
	 

	 
		CONDITIONS PRECEDENT TO EACH ADVANCE.
		Lender’s obligation to make the initial Advance and each subsequent
		Advance under this Agreement shall be subject to the -fulfillment to
		Lender’s satisfaction of all of the conditions set forth in this Agreement
		and in the Related Documents.
	 

	 
		Loan Documents. Borrower shall provide to
		Lender the following documents for the Loan: (1) the Note; (2) Security
		Agreements granting to Lender security interests in the Collateral; (3)
		financing statements and all other documents perfecting Lender’s Security
		Interests; (4) evidence of insurance as required below; (5) guaranties; (6)
		together with ail such Related Documents as Lender may require for the Loan;
		all in form and substance satisfactory to Lender and Lender’s
		counsel.
	 

	 
		Borrower’s Authorization. Borrower shall
		have provided in form and substance satisfactory to Lender properly certified
		resolutions, duly authorizing the execution and delivery of this Agreement, the
		Note and the Related Documents. In addition, Borrower shall have provided such
		other resolutions, authorizations, documents and instruments as Lender or its
		counsel, may require.
	 

	 
		Payment of Fees and Expenses. Borrower shall
		have paid to Lender all fees, charges, and other expenses which are then due
		and payable as specified to this Agreement or any Related Document.
	 

	 
		Representations and Warranties. The
		representations and warranties set ‘forth in this Agreement, in the
		Related Documents, and in any document or certificate delivered to Lender under
		this Agreement are true and correct.
	 

	 
		No Event of Default. There shall not exist at
		the time of any Advance a condition which would constitute an Event of Default
		under this Agreement or under any Related Document.
	 

	 
		REPRESENTATIONS AND WARRANTIES. Borrower
		represents and warrants to Lender, as of the date of this Agreement, as of the
		date of each disbursement of loan proceeds, as of the date of any renewal,
		extension or modification of any Loan, and at all times any Indebtedness
		exists:
	 

	 
		Organization. Borrower Is a corporation for
		profit which Is, and at all times shall be, duly organized, validly existing,
		and in good standing under and by virtue of the laws of the State of Florida.
		Borrower is duly authorized to transact business in all other states in which
		Borrower is doing business, having obtained all necessary filings, governmental
		licenses and approvals for each state in which Borrower is doing business.
		Specifically, Borrower is, and at all times shall be, duly qualified as a
		foreign corporation in all states in which the failure to so qualify would have
		a material adverse effect on its business or financial condition. Borrower has
		the full power and authority to own its properties and to transact the business
		in which it is presently engaged or presently proposes to engage. Borrower
		maintains an office at 2300 NW Corporate Blvd,, Suite 123, Boca Raton, FL
		33431. Unless Borrower has designated otherwise in writing, the principal
		office is the office at which Borrower keeps its books and records including
		its records concerning the Collateral. Borrower will notify Lender oiler to any
		change in the location of Borrower’s state of organization or any change
		in Borrowers name. Borrower shall do all things necessary to preserve and to
		keep in full force and effect its existence, rights and privileges, and shall
		comply with all regulations, roles, ordinances, statutes, orders and decrees of
		any governmental or quasi-governmental authority or court applicable to
		Borrower and Borrower’s business activities.
	 

	 
		Assumed Business Names. Borrower has filed or
		recorded all documents or filings required by law relating to ail assumed
		business names used by Borrower. Excluding the name of Borrower, the following
		is a complete list of all assumed business names under which Borrower does
		business: None.
	 

	 
		Authorization. Borrowers execution, delivery,
		and performance of this Agreement and all the Related Documents have been duly
		authorized by ail necessary action by Borrower and do not conflict with, result
		in a violation of, or constitute a default under (1) any provision of (a)
		Borrower’s articles of incorporation or organization, or bylaws, or (b)
		any agreement or other instrument binding upon Borrower or (2) any law,
		governmental regulation, court decree, or order applicable to Borrower or to
		Borrower’s properties.
	 

	 
		Financial Information. Each of
		Borrower’s financial statements supplied to Lender truly and completely
		disclosed Borrower’s financial condition as of the date of the statement,
		and there has been no material adverse change in Borrower’s financial
		condition subsequent to the date of the most recent financial statement
		supplied to Lender. Borrower has no material contingent obligations except as
		disclosed in such financial statements.
	 

	 
		Legal Effect. This Agreement constitutes, and
		any instrument or agreement Borrower is required to give tinder this Agreement
		when delivered will constitute legal, valid, and binding obligations of
		Borrower enforceable against Borrower in accordance with their respective
		terms.
	 

	 
		Properties. Except as contemplated by this
		Agreement or as previously disclosed in Borrower’s financial statements or
		in writing to Lender and as accepted by Lender, and except for property tax
		liens for taxes not presently due and payable, Borrower owns and has good title
		to all of Borrower’s properties free and clear of all Security Interests,
		and has not executed any security documents or financing statements relating to
		such properties. All of Borrower’s properties are titled in
		Borrower’s legal name, and Borrower has not used or filed a financing
		statement under any other name for at leas( the last five (5) years,
	 

	 
		Hazardous Substances, Except as disclosed to
		and acknowledged by Lender in writing, Borrower represents and warrants that:
		(1) During the period of Borrower’s ownership of the Collateral, there has
		been no use, generation, manufacture, storage, treatment, disposal, release or
		threatened release of any Hazardous Substance by any person on, under, about or
		from any of the Collateral. (2) Borrower has no knowledge of, or reason to
		believe that there has been (a) any breach or violation of any Environmental
		Laws; (b) any use, generation, manufacture, storage, treatment, disposal,
		release or threatened release of any Hazardous Substance on, under, about or
		from the Collateral by any prior owners or occupants of any of the Collateral;
		or (c) any actual or threatened litigation or claims of any kind by any person
		relating to such matters. (3) Neither Borrower nor any tenant, contractor,
		agent or other authorized user of any of the Collateral shall use, generate,
		manufacture, store, treat, dispose of or release any Hazardous Substance on,
		under, about or from any of the Collateral; and any such activity shall be
		conducted in compliance with all applicable federal, state, and local laws,
		regulations, and ordinances, including without limitation all Environmental
		Laws. Borrower authorizes Lender and its agents to enter upon the Collateral to
		make such inspections and tests as Lender may deem appropriate to determine
		compliance of the Collateral with this section of the Agreement. Any
		inspections or tests made by Lender shall be at Borrower’s expense and for
		Lender’s purposes only and shall not be construed to create any
		responsibility or liability on the part of Lander to Borrower or to any other
		person. The representations and warranties contained herein are based on
		Borrower’s due diligence in investigating the Collateral for hazardous
		waste and Hazardous Substances. Borrower hereby (1) releases and waives any
		future claims against Lender for indemnity or contribution in the event
		Borrower becomes liable for cleanup or other costs under any such laws, and (2)
		agrees to indemnify, defend, and hold harmless Lender against any and all
		claims, losses, liabilities, damages, penalties, and expenses which Lender may
		directly or indirectly sustain or suffer resulting from a breach of this
		section of the Agreement or as a consequence of any use, generation,
		manufacture, storage, disposal, release or threatened release of a hazardous
		waste or substance on the Collateral. The provisions of this section of the
		Agreement, including the obligation to indemnify and defend, shall survive the
		payment of the Indebtedness and the termination, expiration or satisfaction of
		this Agreement and shall not be affected by Lender’s acquisition of any
		interest in any of the Collateral, whether by foreclosure or otherwise.
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				  Loan No: 8037225615
				

				
 	
				
				  BUSINESS LOAN
				  AGREEMENT
 (Continued)
				

				
 	
				
				  Page 2
				

				
 

 

	 
		Litigation and Claims. No litigation, claim,
		investigation, administrative proceeding or similar action (including those for
		unpaid taxes) against Borrower is pending or threatened, and no other event has
		occurred which may materially adversely affect Borrower’s financial
		condition or properties, other than litigation, claims, or other events, if
		any, that have been disclosed to and acknowledged by Lender in writing.
	 

	 
		Taxes. To the best of Borrower’s
		knowledge, all of Borrower’s tax returns and reports that are or were
		required to be filed, have, been filed, and ail taxes, assessments and other
		governmental charges have bean paid in full, except those presently being or to
		be contested by Borrower in good faith in the ordinary course of business and
		for which adequate reserves have been provided.
	 

	 
		Lien Priority. Unless otherwise previously
		disclosed to Lender in writing, Borrower has not entered into or granted any
		Security Agreements, or permitted the filing or attachment of any Security
		interests on or affecting any of the Collateral directly or indirectly securing
		repayment of Borrower’s Loan and Note, that would be prier or that may in any
		way he superior to Lender s Security Interests arta rights in and to such
		Collateral.
	 

	 
		Binding Effect. This Agreement, the Note, all
		Security Agreements (if any), and all Related Documents are binding upon the
		signers thereof, as well as upon their successors, representatives and assigns,
		and are legally enforceable in accordance with their respective terms.
	 

	 
		AFFIRMATIVE COVENANTS. Borrower covenants and
		agrees with Lender that, so long as this Agreement remains in effect, Borrower
		wilt:
	 

	 
		Notices of Claims and Litigation. Promptly
		inform Lender in writing of (1) all material adverse changes in Borrower’s
		financial condition, and (2) all existing and all threatened litigation,
		claims, investigations, administrative proceedings or similar actions affecting
		Borrower or any Guarantor which could materially affect the financial condition
		of Borrower or the financial condition of any Guarantor.
	 

	 
		Financial Records. Maintain its books and
		records in accordance with GAAP, applied on a consistent basis, and permit
		Lender to examine and audit Borrower’s books and records at all reasonable
		times.
	 

	 
		Financial Statements. Furnish Lender with the
		following:
	 

	 
		Annual Statements. As soon as available, but
		in no event later than ninety (90) days after the end of each fiscal year,
		Borrower’s balance sheet and income statement for the year ended, prepared
		by Borrower.
	 

	 
		Tax Returns. As soon as available, but in no
		event later than ninety (90) days after the applicable filing date for the tax
		reporting period ended, Federal and other governmental tax returns, prepared by
		a certified public accountant satisfactory to Lender.
	 

	 
		All financial reports required to be provided
		under this Agreement shah be prepared in accordance with GAAP, applied on a
		consistent basis, and certified by Borrower as being true and correct.
	 

	 
		Additional Information. Furnish such
		additional Information and statements, as lender may request from time to
		time.
	 

	 
		Insurance. Maintain fire and other risk
		insurance, public liability insurance, and such other insurance as Lender may
		require with respect In Borrower’s properties and operations, in form,
		amounts, coverages and with insurance companies acceptable to Lender. Borrower,
		upon request of Lender, will deliver to Lender from time to time the policies
		or certificates of insurance in form satisfactory to Lender, including
		stipulations that coverages will not be cancelled or diminished without at
		least ten (10) days prior written notice to Lender. Each insurance policy also
		shall include an endorsement providing that coverage in favor of Lender will
		not be Impaired in any way by any act, orniesiori or default of Borrower or any
		other person. In connection with all policies covering assets in which Lender
		holds or is offered a security Interest for the Loans, Borrower will provide
		Lender with such lender’s loss payable or other endorsements as Lender
		!Tray require.
	 

	 
		Insurance Reports. Furnish to tender, upon
		request of Lender, reports on each existing insurance policy showing such
		information Lender may reasonably request, including without limitation the
		following: (1) the name of the insurer; (2) the risks insured: (3) the amount
		of the policy; (4) the properties insured; (5) the then current property values
		on the basis of which insurance has been obtained, and the manner of
		determining those values; and (6) the expiration date of the policy. In
		addition, upon request of Lender (however not more often than annually),
		Borrower will have an independent appraiser satisfactory to Lender determine,
		as applicable, the dottrel cash value or replacement cost of any Collateral.
		The cost of such appraisal shall be paid by Borrower.
	 

	 
		Guaranties. Prior to disbursement of any Loan
		proceeds, furnish executed guaranties of the Loans in favor of Lender, executed
		by the guarantor named below, on Lender’s forms, and in the amount and
		under the conditions set forth in those guaranties.
	 

	 
		 
	 

	 
			
				
				  Name of
				  Guarantor
				

			 	
				
				   
				

			 	
				
				  Amount
				

			 
	
				
				  David H. Fater
				

			 	
				
				   
				

			 	
				
				  Unlimited
				

			 

 

	 
		Other Agreements. Comply with all terms and
		conditions of all other agreements, whether now or hereafter existing, between
		Borrower and any other party and notify Lender immediately in writing of any
		default in connection with any other such agreements.
	 

	 
		Loan Proceeds. Use all Loan proceeds solely
		for Borrower’s business operations, unless specifically consented to the
		contrary by Lender In writing.
	 

	 
		Taxes, Charges and Liens. Pay and discharge
		when due all of its indebtedness and obligations, including without limitation
		all assessments, taxes, governmental charges, levies and liens, of every kind
		and nature, imposed upon Borrower or its properties, income, or profits, prior
		to the date on which penalties would attach, and all lawful claims that, if
		unpaid, might become a lien or charge upon any of Borrower’s properties,
		income, or profits.
	 

	 
		Performance. Perform and comply, in a timely
		manner, with all terms, conditions, and provisions set forth in this Agreement,
		in the Related Documents, and in all other instruments and agreements between
		Borrower and Lender. Borrower shall notify Lender immediately in writing of any
		default In connection with any agreement.
	 

	 
		Operations, Maintain executive and management
		personnel with substantially the same qualifications and experience as the
		present executive and management personnel; provide written notice to Lender of
		any change in executive and management personnel; conduct its business affairs
		in a reasonable and prudent manner.
	 

	 
		Environmental Studies. Promptly conduct and
		complete, at Borrower’s expense, alt such investigations, studies,
		samplings and testings as may be requested by Lender or any governmental
		authority relative to any substance, or any waste or by-product of any
		substance defined as toxic or a hazardous substance under applicable federal,
		state, or local law, rule, regulation, order or directive, at or affecting any
		property or any facility owned, leased or used by Borrower.
	 

	 
		Compliance with Governmental Requirements,
		Comply with all laws, ordinances, and regulations, now or hereafter in effect,
		of all governmental authorities applicable to the conduct of Borrower’s
		properties, businesses and operations, and to the use or occupancy of the
		Collateral, including without limitation, the Americans With Disabilities Act,
		Borrower may contest in good faith any such law, ordinance, or regulation and
		withhold compliance during any proceeding, including appropriate appeals, so
		long as Borrower has notified Lender in writing prior to doing so and so tong
		as, in Lender’s sole opinion, Lender’s interests in the Collateral
		are not jeopardized. Lender may require Borrower to post adequate security or a
		surely bond, reasonably satisfactory to Lender, to protect Lender’s
		interest.
	 

	 
		Inspection. Permit employees or agents of
		Lender at any reasonable time to inspect any and all Collateral for the Loan or
		Loans and Borrower’s other properties and to examine or audit
		Borrower’s books, accounts, and records and to make copies and memoranda
		of Borrower’s books, accounts, and records. If Borrower now or at any time
		hereafter maintains any records (including without limitation computer
		generated records and computer software programs for the generation of such
		records) in the possession of a third party, Borrower, upon request of Lender,
		shall notify such party to permit. Lender free access to such records at all
		reasonable times and to provide Lender with copies of any records it may
		request, all at Borrower’s expense,
	 

	 
		Environmental Compliance and Reports.
		Borrower shall comply in all respects with any and all Environmental Laws; not
		cause or permit to exist, as a result of an intentional or unintentional action
		or omission on Borrower’s part or on the part 01 any third party, on
		property owned and/or occupied by Borrower, any environmental activity where
		damage may result to the environment, unless such environmental activity is
		pursuant to and in compliance with the conditions of a permit issued by the
		appropriate federal, state or local governmental authorities; shall furnish to
		Lender promptly and in any event within thirty (30) days after receipt thereof
		a copy of any notice, summons, lien, citation, directive, letter or other
		communication from any governmental agency or instrumentality concerning any
		intentional or unintentional action or omission on Borrower’s part in
		connection with any environmental activity whether or not there is damage to
		the environment and/or other natural resources.
	 

	 
		Additional Assurances, Make, execute arid
		deliver to Lender such promissory notes, mortgages, deeds of trust, security
		agreements, assignments, financing statements, instruments, documents and other
		agreements as Lender or its attorneys may reasonably request to evidence and
		secure the Loans and to perfect ail Security Interests.
	 

	 
		RECOVERY OF ADDITIONAL COSTS. If the
		imposition of or any change in any law, rule, regulation or guideline, or the
		Interpretation or application of any thereof by any court or administrative or
		governmental authority (including any request or policy not having the force
		law) shall impose, modify or make applicable any taxes (except federal, state
		or local income or franchise taxes imposed on Lender), reserve requirements,
		capital adequacy requirements or other obligations which would (A) increase the
		cost to Lender for extending or maintaining the credit facilities to which this
		Agreement relates, (fa) reduce the amounts payable to Lender under this
		Agreement or the Related Documents, or (C) reduce the rate of return on
		Lender’s capital as a consequence of Lender’s obligations with
		respect to the credit facilities to. which this Agreement relates,
		then Borrower agrees to pay Lender such additional amounts as will 
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				  Loan No: 8037225615
				

				
 	
				
				  BUSINESS LOAN
				  AGREEMENT
 (Continued)
				

				
 	
				
				  Page 3
				

				
 

 

	 
		compensate Lender therefor, within five (5)
		days after Lender’s written demand for such payment, which demand shall be
		accompanied by an explanation of such imposition or charge and a calculation in
		reasonable detail of the additional amounts payable by Borrower, which
		explanation and calculations shall be GMICkiSiv0 in the absence of manifest
		error.
	 

	 
		LENDER’S EXPENDITURES. If any action or
		proceeding is commenced that would materially affect Lenders interest in the
		Collateral Of if Borrower fails to comply with any provision of this Agreement
		or any Related Documents, including but not limited to Borrower’s failure
		to discharge or pay when due any amounts Borrower is required to discharge or
		pay under thie Agreement or any Related Documents, Lender on Borrowers behalf
		may (but shall not be obligated to) take any action that Lender deems
		appropriate, Including but not limited to disci iarging or paying all taxes,
		liens. security Interests, encumbrances and other claims, at any time levied or
		placed on any Collateral and paying all costs for insuring, maintaining and
		preserving any Collateral. All such expenditures incurred or paid by Lender for
		such purposes will then hear merest at the rate charged under the Note from the
		date incurred or paid by Lender to the date of repayment by Borrower. All such
		expenses will become a part of the Indebtedness and, at Lender’s option,
		will (A) he payable on demand; (B) be added to the balance of the Note arra be
		apportioned among and be payable with any installment payments to become due
		during either (1) the term of any applicable insurance ;policy; or (2) the
		remaining term of the Note; or (C) be treated as a balloon payment which will
		be due and payable at the Note’s maturity.
	 

	 
		CESSATION EXPENDITURES. If Lender has made
		any commitment to make any Loan to Borrower, whether under this Agreemei it or
		under any other agreement, Lender shall have no obligation to make Loan
		Advances or to disburse Loan proceeds if: (A) Borrower or any Guarantor is, in
		default under the terms of this Agreement or any of the Related Documents or
		any other agreement that Borrower or any Guarantor has with Lender; (B)
		Borrower or any Guarantor dies, becomes incompetent or becomes insolvent, files
		a petition in bankruptcy or similar proceedirrea. or is adjudged a bankrupt;
		(C) there occurs a material adverse change in Borrower’s financial
		condition, in the financial condition of are Guarantor, or in the value of any
		Collateral securing any Loan; or (D) any Guarantor seeks, claims or otherwise
		attempts to limit, modify or revoke such Guarantor’s guaranty of the Loan
		or any other loan with Lender; or (E) Lender in good faith deems itself
		insecure, oven though no Event of Default shall have occurred.
	 

	 
		RIGHT OF SETOFF. To the extent permitted by
		applicable law, Lender reserves a right of setoff in all Borrower’s
		accounts with Lender (whether checking, savings, or some other account). This
		includes all accounts Borrower holds jointly with someone else and all accounts
		Borrower may open in the future. However, this does not include any IRA or
		Keogh accounts, or any trust accounts for which setoff would be prohibited ley
		law. Borrower authorizes Lender, to the extent permitted by applicable law, to
		charge or setoff all sums owing on the Indebtedness against any arid all such
		accounts.
	 

	 
		DEFAULT. Each of the following shall
		constitute an Event of Default under this Agreement:
	 

	 
		Payment Default. Borrower fails to make any
		payment when due under the Loan.
	 

	 
		Other Defaults. Borrower fails to comply with
		or to perform any other term, obligation, covenant or condition contained in
		this Agreement or in any of the Related Documents or to comply with or to
		perform any term, obligation, covenant or condition contained in any other
		agreement between Lender and Borrower.
	 

	 
		False Statements. Any warranty,
		representation or statement made or furnished to Lender by Borrower or on
		Borrower’s behalf under this Agreement or the Related Documents is false
		or misleading in any material respect, either now or at the time made or
		furnished or becomes, false or misleading at any time thereafter.
	 

	 
		Insolvency. The dissolution or (emanation of
		Borrower’s existence as a going business, the insolvency of Borrower, Me
		appointment of a receiver for any part of Borrower’s property, any
		assignment for the benefit of creditors, any type of creditor workout, or the
		commencement of any proceeding under any bankruptcy or insolvency laws by or
		against Borrower.
	 

	 
		Defective Collateralization, This Agreement
		or any of the Related Documents ceases to be in full force and effect
		(including failure or any collateral document to create a valid and perfected
		security interest or lien) at any time and for any reason.
	 

	 
		Creditor or Forfeiture Proceedings.
		Commencement of foreclosure or forfeiture proceedings, whether by judicial
		proceeding, self-kelp, repossession or any other method, by any creditor of
		Borrower or by any governmental agency against any collateral securing the
		Loan. This Includes a garnishment of any of Borrower’s accounts, Including
		deposit accounts, with Lender. However, this Event of Default shall not apply
		if there is a good faith dispute by Borrower as to the validity or
		reasonableness of the claim which is the basis of the creditor or forfeiture
		proceeding and if Borrower gives Lender written notice of the creditor or
		forfeiture proceeding and deposits with Lender ninnies or a surety bond for the
		creditor or forfeiture proceeding, in an amount determined by Lender, in its
		sole discretion, as being an adequate reserve or bond for the dispute.
	 

	 
		Events Affecting Guarantor. Any of the
		preceding events occurs with respect to any Guarantor of any of the
		Indebtedness or arty Guarantor dies or becomes incompetent, or revokes or
		disputes the validity of, or liability under, any Guaranty of the indebtedness.
		In the event of a death, Lender, at its option, may, but shall not be required
		to, permit the Guarantor’s estate to assume unconditionally the
		obligations arising under the guaranty in a manner satisfactory to Lender, and,
		in doing so, cure any Event of Default
	 

	 
		Change in Ownership. Any change in ownership
		of twenty-five percent (25%) or more of the common stock of Borrower.
	 

	 
		Adverse Change. A material adverse change
		occurs in Borrower’s financial condition, or Lender believes the prospect
		of payment or performance of the Loan is impaired.
	 

	 
		Insecurity, Lender in good faith believes
		itself insecure,
	 

	 
		EFFECT OF AN EVENT OF DEFAULT. if any Event
		of Default shall occur, except where otherwise provided in this Agreement or
		the Related Documents, all commitments and obligations of Lender under this
		Agreement or the Related Documents or any other agreement immediately will
		terminate (including any obligation to make further Loan Advances or
		disbursements), and, at Lender’s option, all Indebtedness immediately will
		become due and payable, all without notice of any kind to Borrower, except that
		in the case of an Event of Default of the type described in the
		“Insolvency” subsection above, such acceleration shall be automatic
		and not optional. In addition, Lender shall have all the rights anti remedies
		provided In She Related Documents or available at law, In equity, or otherwise.
		Except as may be prohibited by applicable law, all of Lender’s rights and
		remedies shall be cumulative and may be exercised singularly or concurrently.
		Election by Lender to pursue any remedy shall not exclude pursuit of any other
		remedy, and an election to make expenditures or to take action to perform an
		obligation of Borrower or of Eery Grantor shall not affect Lender’s right
		to declare a default and to exercise Its rights and remedies.
	 

	 
		MISCELLANEOUS PROVISIONS. The following
		miscellaneous provisions are a part of this Agreement:
	 

	 
		Amendments. This Agreement, together with any
		Related Documents, constitutes the entire understanding and agreement of the
		panics as to the matters sot forth in this Agreement. No alteration of or
		amendment to this Agreement shall be effective unless given in writing and
		signed by the party or parties sought to be charged or bound by the alteration
		or amendment.
	 

	 
		Attorneys’ Fees; Expenses, Borrower
		agrees to pay upon demand all of Lender’s costs arid expenses, including
		Lender’s reesonable attorneys’ fees and Lender’s legal expenses,
		incurred in connection with the enforcement of this Agreement, tender may hire
		or pay someone else to help enforce this Agreement, and Borrower shall pay tire
		costs and expenses of such enforcement. Costs and expenses include
		Lender’s reasonable attorneys’ fees and legal expenses whether or not
		there Is a lawsuit, including reasonable attorneys’ fees anti legal
		expenses for bankruptcy proceedings (including efforts to modify or vacate any
		automatic stay or injunction), appeals, and any anticipated post-judgment
		collection services. Borrower also shall pay all court costs and such
		additional fees as may be directed by Mc court.
	 

	 
		Caption Headings. Caption headings in this
		Agreement are for convenience purposes only and are not to be used to interpret
		or define tile provisions of this Agreement,
	 

	 
		Consent to Loan Participation. Borrower
		agrees and consents to Lender’s sate or transfer, whether now or later, of
		one or more participation interests in the Loan to orie or more purchasers,
		whether related or unrelated to Lender. Lender may provide, without any
		limitation whatsoever, to any one or more purchasers, or potential purchasers,
		any information or knowledge Lander may have about Borrower or about any other
		matter relating to the Loan, and Borrower hereby waives any rights to privacy
		Borrower may have with respect to such matters. Borrower additionally waives
		any and all notices of sale of participation interests, as well as all notices
		of any repurchase of such participation interests. Borrower also agrees that
		the purchasers of any such participation interests will be considered ae the
		absolute owners of such interests in the Loan and will have all the rights
		granted under the participation agreement or agreements governing the sale of
		such participation interests. Borrower further waives all rights of offset or
		counterclaim that it may have now or later against Lender or against any
		purchaser of such a participation interest and unconditionally agrees that
		either Lender or such purchaser may enforce Borrower’s obligation under
		the Loan irrespective of the failure or Insolvency of any holder of any
		interest in. the Loan. Borrower further agrees that the purchaser of
		any such participation interests may enforce its interests irrespective of any
		persona! claims or defenses that Borrower may have against Lender,
	 

	 
		Governing Law. This Agreement will be
		governed by federal law applicable to Lender and; to the extent not
		preempted by federal LAW, THE LAWS OF THE State of Florida without regard to
		its conflicts of law provisions. This Agreement has been accepted by Lender in
		the State of Florida.
	 

	 
		No Waiver by Lender. Lander shall not be
		deemed to have waived any rights under this Agreement unless such waiver is
		given in writing and signed by Lender. No delay or omission on the part of
		Lender in exercising any right shall operate as e waiver ,of such right or any
		other right. A waiver by Lender of a provision of this Agreement shall not
		prejudice or constitute a waiver of Lender’s right otherwise to demand
		strict compliance with that provision or any other provision of this Agreement.
		No prior waiver by Lender, nor any- course f dealing between Lender and
		Borrower, or between Lender and any Grantor, shall constitute a waiver of any
		of Lender’s rights or of any of Borrower’s or any Grantor’s
		obligations as to any future transactions. Whenever the consent of Lender is
		required under this Agreement, the granting of such consent by Lender in any
		instance shall not constitute continuing consent to subsequent instances where
		such consent is required and in all cases such consent may be granted or
		withheld in the sole discretion of Lender,
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				  Loan No: 8037225615
				

				
 	
				
				  BUSINESS LOAN
				  AGREEMENT
 (Continued)
				

				
 	
				
				  Page 4
				

				
 

 

	 
		Notices. Any notice required to be given
		under this Agreement shall be given in writing, and shall be effective when
		actually delivered, when actually received by telefacsimile (unless otherwise
		required by law), when deposited with a nationally recognized overnight
		courier, or, if mailed, when deposited in the United States mall, as first
		class, codified or registered mail postage prepaid, directed to the addresses
		shown near the beginning of this Agreement. Any party may change its address
		for notices under this Agreement by giving written notice to the other parties,
		specifying that the purpose of the notice Is to change the party’s
		address. For notice purposes, Borrower agrees to keep Lender informed at all
		times of Borrower’s current address. Unless otherwise provided or required
		by law, if there is more than one Borrower, any notice given by Lender to any
		Borrower is deemed to he notice given to all Borrowers.
	 

	 
		Severabillty. If a court of competent
		jurisdiction finds any provision of this Agreement to be illegal, invalid, or
		unenforceable as to any circumstance, that finding shall not make the offending
		provision illegal, invalid, or unenforceable as to any other circumstance. 11
		feasible, the offending provision shall be considered modified so that it
		becomes legal, valid and enforceable. If the offending provision cannot be so
		modified, it shall be considered deleted from this Agreement. Unless otherwise
		required by law, the illegality, invalidity, or unenforceability of any
		provision of this Agreement shall not affect the legality, validity or
		enforceability of any other provision of this Agreement.
	 

	 
		Subsidiaries and Affiliates of Borrower. To
		the extent the context of any provisions of this Agreement makes it
		appropriate, including without limitation any representation, warranty or
		covenant, the word “Borrower” as used in this Agreement shall include
		all of Borrower’s subsidiaries and affiliates. Notwithstanding the
		foregoing however, under no circumstances shall this Agreement be construed to
		require Lender to make any Loan or other financial accommodation to any of
		Borrower’s subsidiaries or affiliates.
	 

	 
		Successors and Assigns, All covenants and
		agreements by or on behalf of Borrower contained in this Agreement or any
		Related Documents shall bind Borrower’s successors and assigns and shall
		inure to the benefit of Lender and Its successors and assigns. Borrower shall
		not, however, have the right to assign Borrower’s rights under this
		Agreement or any interest therein, without the prior written consent of
		Lender.
	 

	 
		Survival of Representations and Warranties,
		Borrower understands and agrees that in extending Loan Advances, Lender is
		relying on all representations, warranties, and covenants made by Borrower in
		this Agreement or in any certificate or other instrument delivered -by Borrower
		to Lender under this Agreement or the Related Documents. Borrower further
		agrees that regardless of any investigation made by Lender, all such
		representations, warranties and covenants will survive the extension of Loan
		Advances and delivery to Lender of the Related Documents, shall be continuing
		in nature, shall be deemed made and related by Borrower at the firma each Loan
		Advance is made, and shall remain In full force and effect until such time as
		Borrower’s indebtedness shall be paid in full, or until this Agreement
		shall be terminated in the manner provided above, whichever is the Iasi to
		occur.
	 

	 
		Time is of the Essence. Time is of the
		essence in the performance of this Agreement.
	 

	 
		Waive Jury. All parties to this Agreement
		hereby waive the right to any jury trial in any action, proceeding, or
		counterclaim brought by any party against any other party.
	 

	 
		DEFINITIONS. The following capitalized words
		and terms shall have the following meanings when used in this Agreement. Unless
		specifically stated to the contrary, all references to dollar amounts shall
		mean amounts in lawful money of the United States of America. Words and tenons
		Used in the singular shall include the plural, and the plural shall include the
		singular, as the context may require. Words and terms not otherwise defined in
		this Agreement shall have the meanings attributed to such terms in the Uniform
		Commercial Code. Accounting words and terms riot otherwise defined in this
		Agreement shall have the meanings assigned to them in accordance with generally
		accepted accounting principles as in effect on the date of this
		Agreement:
	 

	 
		Advance. The word “Advance” means a
		disbursement of Loan funds made, or to be made, to Borrower or on
		Borrower’s behalf on a line of credit or multiple advance basis under the
		terms and conditions of this Agreement.
	 

	 
		Agreement. The word “Agreement”
		means this Business Loan Agreement, as this Business Loan Agreement may be
		amended or modified from time to time, together with all exhibits and schedules
		attached to this Business Loan Agreement from time to time.
	 

	 
		Borrower. The word “Borrower” means
		Vicor Technologies, Inc. and includes all co-signers and co-makers signing the
		Note and ail their successors and assigns.
	 

	 
		Collateral. The word “Collateral”
		means all property and assets granted as collateral security for a Loan,
		whether real or personal property. whether granted directly or indirectly,
		whether granted now or in the future, and whether granted in the form of a
		security interest, mortgage, collateral mortgage, deed of trust, assignment,
		pledge, crop pledge, chattel mortgage, collateral chattel mortgage, chattel
		trust, factor’s lien, equipment trust, conditional sale, trust receipt,
		lien, charge, lien or title retention contract, lease or consignment intended
		as e security device, or any other security or lien interest whatsoever,
		whether created by law, contract, or otherwise.
	 

	 
		Environmental Laws. The words
		“Environmental Laws” mean any and ail state, federal and local
		statutes, regulations and ordinances relating to the protection of human health
		or the environment, including without limitation the Comprehensive
		Environmental Response, Compensation, and Liability Act of 1980, as amended, 42
		U.S.C. Section 9601, et seq. (“CERCL.A”), the Superfund Amendments
		and Reauthorization Act of 1986, Pub. L. No. 99-499 (“SARA”), the
		Hazardous Materials Transportation Act, 49 U.S.C. Section 1001, et seq., the
		Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or
		other applicable slate or federal laws, rules, or regulations adopted pursuant
		thereto.
	 

	 
		Event of Default. The words “Event of
		Default” mean any of Ilia events of default set forth in this Agreement in
		the default section of this Agreement.
	 

	 
		GAAP. The word “GAAP” means
		generally accepted accounting principles.
	 

	 
		Grantor. The word “Grantor” means
		each and all of the persons or entities granting a Security Interest In any
		Collateral for the Loan, including without limitation all Borrowers granting
		such a Security Interest.
	 

	 
		Guarantor. The word “Guarantor”
		means any guarantor, surety, or accommodation party of any or ail of the
		Loan.
	 

	 
		Guaranty. The word “Guaranty” means
		the guaranty from Guarantor to Lender, including without limitation a guaranty
		of all or part of the Note.
	 

	 
		Hazardous Substances. The words
		“Hazardous Substances” mean materials that, because of their
		quantity, concentration or physical, chemical or infectious characteristics,
		may cause or pose a present or potential hazard to human health or the
		environment when improperly used, treated, stored, disposed of, generated,
		manufactured, transported or otherwise handled. The words “Hazardous
		Substances” are used In their very broadest sense and include without
		limitation any and all hazardous or toxic substances, materials eir waste as
		defined by or listed under the Environmental Laws_ The term “Hazardous
		Substances” also includes, without limitation, petroleum and petroleum
		by-products or any fraction thereof and asbestos.
	 

	 
		Indebtedness. The word
		“Indebtedness” means the indebtedness evidenced by the Note or
		Related Documents, including all principal eon interest together with all other
		indebtedness and costs and expenses for which Borrower is responsible under
		this Agreement or under is nv of the Related Documents.
	 

	 
		Lender, The word “Lender” means
		Colonial Bank, N.A., its successors and assigns.
	 

	 
		Loan. The word “Loan” means any and
		all loans and financial accornmodations from Lender to Borrower whether now or
		hereafter existing, and however evidenced, including without limitation those
		loans and financial accommodations described herein or described on any exhibit
		or schedule attached to this Agreement from time to time.
	 

	 
		Note. The word “Note” means the
		Note executed by Vicor Technologies, inn. in the principal amount of
		$100,000.00 dated April 30, 2007, together with all renewals of, extensions of,
		modifications of, refinancings of, consolidations of, and substitutions for the
		note or credit agreement.
	 

	 
		Related Documents. The words “Related
		Documents’ mean at promissory notes, credit agreements, loan agreements,
		environmental agreements, guaranties, security agreements, mortgages, deeds of
		trust, security deeds, collateral mortgages, and all other instruments,
		agreements and documents, whether now or hereafter existing, executed in
		connection with the Loan.
	 

	 
		Security Agreement. The words “Security
		Agreement” mean and include without limitation any agreements, promises,
		covenants, arrangements, understandings or other agreements, whether created by
		law, contract, or otherwise, evidencing, governing, representing, or creating a
		Security Interest.
	 

	 
		Security Interest, The words “Security
		Interest” mean, without limitation, any and all types of collateral
		security, present and tutu; e, whether in the form of a lien, charge,
		encumbrance, mortgage, deed of trust, security deed, assignment, pledge, crop
		pledge, chattel mortgage, collateral chattel mortgage, chattel trust,
		factor’s lien, equipment trust, conditional sale, trust receipt, lien or
		title retention contract, lease or consignment Intended as a security device,
		or any other security or lien interest whatsoever whether created by law,
		contract, or otherwise,
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				  Loan No: 8037225615
				

				
 	
				
				  BUSINESS LOAN
				  AGREEMENT
 (Continued)
				

				
 	
				
				  Page 5
				

				
 

 

	 
		 
	 

	 
		 
	 

	 
		BORROWER ACKNOWLEDGES HAVING READ ALL THE
		PROVISIONS OF THIS BUSINESS LOAN AGREEMENT AND BORROWER AGREES TO ITS TERMS,
		THIS BUSINESS LOAN AGREEMENT IS DATED APRIL 30, 2007.
	 

	 
		BORROWER:
	 

	 
		 
	 

	 
			
				
				  VICOR TECHNOLOGIES, INC.
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  By: 
				

			 	
				
				  
 /s/ David H. Fater
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				  David H. Fater, CEO of Vicor
				  Technologies, Inc.
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		LENDER;
	 

	 
		 
	 

	 
			
				
				  COLONIAL BANK, N.A.
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  By: 
				

			 	
				
				  
 /s/ Alan Nadle
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				  Authorized Officer

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