Document:

exv10w1

Exhibit 10.1

	 	 	 	NEITHER THIS NOTE NOR THE COMMON STOCK ISSUABLE UPON CONVERSION
HEREOF HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”) OR UNDER THE SECURITIES LAWS OF ANY STATE. THE
SECURITIES REPRESENTED HEREBY ARE RESTRICTED AND MAY NOT BE OFFERED,
RESOLD, PLEDGED OR TRANSFERRED EXCEPT IF SUCH TRANSACTION IS REGISTERED
UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR IF SUCH
TRANSACTION IS EXEMPT FROM SUCH REGISTRATION, AS CONFIRMED BY AN OPINION
OF COUNSEL TO THE COMPANY.

			
	 	 	 
	No.            
                  
           
	 	US $         
               
                 

VICOR TECHNOLOGIES, INC.

8% SUBORDINATED CONVERTIBLE PROMISSORY NOTE DUE  
                    
                   , 2012

     FOR VALUE RECEIVED, VICOR TECHNOLOGIES, INC.,
a Delaware corporation (the “Company”), promises
to pay to                    
                    
                   
   (the “Holder”), the principal sum of          
                   
            
(US$                   
                   
  ) and unpaid accrued interest on the principal sum at the rate of eight percent (8%)
per annum on                   
                    
                     
  , 2012 (the “Maturity Date”). Interest will be calculated on the
basis of a 360-day year consisting of twelve 30-day months. Accrual of interest shall commence on
the first such business day to occur after the date hereof and continue until payment in full of
the principal sum has been made in cash or this Note is converted as provided herein. The Company
shall pay the principal of and interest upon this Note, less any amounts required by law to be
deducted, to the Holder of this Note at the address of such Holder which is the last address
appearing on the Note register of the Company for such Holder.

     This Note is subject to the following additional provisions:

     1. Subordination. This Note shall be subordinate in all respects, including but not
limited to any payment hereon or conversion hereof, to those 8% convertible debentures in the
aggregate amount of $___ sold by the Company through Perrin Holden & Davenport, its investment
banker, during the period between April 30, 2009 and September 17, 2009 (collectively, the “Senior
Notes”). The Company will provide Holder with written notice of either the payment or conversion
of all Senior Notes and the termination of such subordination.

     2. Withholding. The Company shall
 be entitled to withhold from all payments of
principal and interest on this Note any amounts required to be withheld under the applicable
provisions of the United States income tax laws or other applicable laws at the time of such
payments, and the Holder shall execute and deliver all required documentation in connection
therewith.

     3. Restrictions on Transfer. This
 Note has been issued subject to investment
representations of the original purchaser hereof and may be transferred or exchanged only in

 

 

compliance with the Securities Act of 1933, as amended (the “Securities Act”), and applicable
state securities laws. In the event of any proposed transfer of this Note, the Company may
require, prior to issuance of a new Note in the name of such other person, that it receive
reasonable transfer documentation including opinions of counsel that the issuance of the Note in
such other name does not and will not cause a violation of the Securities Act or any applicable
state securities laws. Prior to due presentment for transfer of this Note, the Company may treat
the person in whose name this Note is duly registered on the Company’s Note register as the owner
hereof for the purpose of receiving payment as herein provided and for all other purposes, whether
or not this Note is overdue, and the Company shall not be affected by notice to the contrary.

     4. Rate and Payment of Interest.
Interest shall be at the rate of 8% per annum, which
will accrue monthly. All interest accrued to the Holder hereunder shall be either (i) added to the
principal amount then outstanding and paid in shares of the Company’s common stock, par value
$.0001 per share (“Common Stock”) at the time of conversion of the Note, in accordance with the
terms hereof, or (ii) paid in cash on the Maturity Date along with the then outstanding principal
amount.

     5. Conversion.

          A. Mandatory
Conversion. Upon the occurrence of a Qualified Funding Event (as defined
herein), this Note shall automatically convert into (i) shares of Common Stock, at a conversion
price equal to the lesser of (a) $0.80 per share of Common Stock (the “Fixed Conversion Price”) or
(b) 80% of the price per share of the Common Stock sold in the Qualified Funding Event. As used
herein, “Qualified Funding Event” shall mean the closing of the sale of debt or equity in a
registered offering or pursuant to a private placement, which sale results in at least three
million dollars ($3,000,000.00) of gross proceeds to the Company.

          B. Voluntary
 Conversion. The Holder shall have no right to voluntarily convert this
Note into Common Stock until such time that the holders of the Senior Notes have converted such
Senior Notes or have been repaid, which will be no later than September 16, 2011. Thereafter, the
Holder of this Note shall be entitled to voluntarily convert the face value of this Note or any
portion thereof, plus any accrued but unpaid interest on the date of conversion, into shares of
Common Stock, at the Fixed Conversion Price, during the term of this Note.

          C. Notice of
Voluntary Conversion. In order to voluntarily convert the Note into
Common Stock, the Holder must, in accordance with the terms and conditions set forth in Section
5(B) above and all other applicable terms and conditions set forth herein, deliver a notice of
conversion (the “Notice of Voluntary Conversion”) to the Company, in the form attached hereto as
Exhibit A. Notices of Voluntary Conversion shall be deemed delivered on the date sent, if
personally delivered or sent by facsimile (with confirmation of transmission) to the Company, to
the Company’s Chief Executive Officer at the Company’s principal place of business, or when
actually received if sent by another method. The Notice of Voluntary Conversion shall be
accompanied by either a copy of (which shall be followed by an original within one (1) business
day) or the original Note to be converted.

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          D. Conversion Procedure.

          
     (i) Voluntary Conversion. In the event of voluntary conversion of this Note, the Company
shall instruct the Transfer Agent to issue the Common Stock within six (6) business days after the
Company receives a fully executed Notice of Voluntary Conversion and original Note. The Common
Stock shall be issued with a restrictive legend indicating that it was issued in a transaction
which is exempt from registration under the Securities Act and that it cannot be transferred unless
it is so registered, or an exemption from registration is available in the opinion of counsel to
the Company. The Common Stock shall be issued in the same name as the person who is the Holder of
this Note unless, in the opinion of counsel to the Company, such transfer can be made in compliance
with applicable securities laws. The person in whose name the certificates of Common Stock are so
registered shall be treated as a common stockholder of the Company on the date the Common Stock
certificates are so issued.

          
     (ii) Mandatory Conversion. In the event of mandatory conversion of this Note, the Company
shall instruct the Transfer Agent to issue the Common Stock within six (6) business days after the
Qualified Funding Event and surrender of the original Note by Holder to the Company. The Common
Stock shall be issued with a restrictive legend indicating that it was issued in a transaction
which is exempt from registration under the Securities Act and that it cannot be transferred unless
it is so registered, or an exemption from registration is available in the opinion of counsel to
the Company. The Common Stock shall be issued in the same name as the person who is the Holder of
this Note unless, in the opinion of counsel to the Company, such transfer can be made in compliance
with applicable securities laws. The person in whose name the certificates of Common Stock are so
registered shall be treated as a common stockholder of the Company on the date the Common Stock
certificates are so issued.

     6. Effect of Certain Events.

          A.
 Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is
issued and outstanding and prior to conversion of all of the Notes, there shall be any merger,
consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a
result of which shares of Common Stock of the Company shall be changed into the same or a different
number of shares of another class or classes of stock or securities of the Company or another
entity, or in case of any sale or conveyance of all or substantially all of the assets of the
Company other than in connection with a plan of complete liquidation of the Company, then the
Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon
the basis and upon the terms and conditions specified herein and in lieu of the shares of Common
Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the
Holder would have been entitled to receive in such transaction had this Note been converted in full
immediately prior to such transaction (without regard to any limitations on conversion set forth
herein), and in any such case appropriate provisions shall be made with respect to the rights and
interests of the Holder of this Note to the end that the provisions hereof (including, without
limitation, provisions for adjustment of the applicable conversion price and of the number of
shares issuable upon conversion of the Note) shall thereafter be

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applicable, as nearly as may be practicable in relation to any securities or assets thereafter
deliverable upon the conversion hereof. The Company shall not effect any transaction described in
this Section 6(A) unless (a) it first gives, to the extent practicable, thirty (30) days prior
written notice (but in any event at least fifteen (15) days prior written notice) of the record
date of the special meeting of shareholders to approve, or if there is no such record date, the
consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization
or other similar event or sale of assets (during which time the Holder shall be entitled to convert
this Note) and (b) the resulting successor or acquiring entity (if not the Company) assumes by
written instrument the obligations of this Section 6(A). The above provisions shall similarly apply
to successive consolidations, mergers, sales, transfers or share exchanges.

          B. Adjustment
 Due to Distribution. If the Company shall declare or make any
distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a
dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or
distribution to the Company’s shareholders in cash or shares (or rights to acquire shares) of
capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note
shall be entitled, upon any conversion of this Note after the date of record for determining
shareholders entitled to such Distribution, to receive the amount of such assets which would have
been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion
had such Holder been the holder of such shares of Common Stock on the record date for the
determination of shareholders entitled to such Distribution

     7. Reservation of Common Stock Issuable
Upon Conversion. The Company shall at all
times reserve and keep available out of its authorized but unissued shares of Common Stock, such
number of its shares of Common Stock as shall from time to time be sufficient to effect the
conversion of all then outstanding Notes.

     8. Unsecured Obligation. This Note
shall be unsecured. The Holder shall have no
recourse against any specific assets of the Company in the event of nonpayment of the Note.

     9. Direct Obligation. Subject to
prior conversion, no provision of this Note shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of, and interest on, this Note at the time, place, and rate, and in the manner herein
prescribed. This Note is a direct obligation of the Company.

     10. Investment Representations.
The Holder of the Note, by acceptance hereof,
represents that the Holder is an “accredited investor” as defined in the Securities Act and the
rules promulgated thereunder, and agrees that this Note is being acquired for investment and not
with a view to the distribution thereof, and that such Holder will not offer, sell or otherwise
dispose of this Note or the shares of Common Stock issuable upon conversion thereof except under
circumstances which will not result in a violation of the Securities Act or any applicable state
“blue sky” laws or similar state laws relating to the sale of securities. Unless the issuance of
the shares of Common Stock issuable upon conversion of this Note shall have been registered under
the Securities Act, the Holder of this Note, by tendering notice to the Company of the Holder’s
intent to convert all or part of this Note pursuant to Section 5(B) hereof, shall be

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deemed to represent to the Company that the Holder is acquiring such shares of Common Stock
for investment and not with a view to the distribution thereof

     11. Governing Law; Jurisdiction.
This Note shall be governed by and construed in
accordance with the laws of the State of Florida. Each of the parties consents to the jurisdiction
of the federal courts whose districts encompass any part of Palm Beach County, Florida or the state
courts of the State of Florida sitting in Palm Beach County in connection with any dispute arising
under this Note and hereby waives, to the maximum extent permitted by law, any objection, including
any objection based on forum non conveniens, to the bringing of any such proceeding in such
jurisdictions.

     12. Default. Each of the following
shall constitute an “Event of Default”:

          
     (i) the Company fails to pay the principal or accrued interest on this Note on the Maturity
Date;

           
    (ii) the Company commences any voluntary proceeding under any bankruptcy, reorganization,
insolvency, readjustment of debt, receivership, dissolution, or liquidation law or statute, of any
jurisdiction, whether now or subsequently in effect; or the Company is adjudicated insolvent or
bankrupt by a court of competent jurisdiction; or the Company petitions or applies for, acquiesces
in, or consents to, the appointment of any receiver or trustee of the Company for all or
substantially all of its property or assets; or the Company makes an assignment for the benefit of
its creditors; or the Company is unable to pay its debts as they mature;

           
    (iii) there is commenced against the Company any proceeding relating to the Company under any
bankruptcy, reorganization, insolvency, readjustment of debt, receivership, dissolution, or
liquidation law or statute, of any jurisdiction, whether now or subsequently in effect, and the
proceeding remains undismissed for a period of sixty (60) days or the Company by any act indicates
its consent to, approval of, or acquiescence in, the proceedings; or a receiver or trustee is
appointed for the Company for all or substantially all of its property or assets, and the
receivership or trusteeship remains undischarged for a period of sixty (60) days; or a warrant of
attachment, execution or similar process is issued against any substantial part of the property or
assets of the Company, and the warrant or similar process is not dismissed or bonded within sixty
(60) days after the levy;

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

           
    (v) any governmental agency or any court of competent jurisdiction at the instance of any
governmental agency shall assume custody or control of the whole or substantially all of the
properties or assets of the Company;

then, or at any time thereafter, and in each and every such case, unless such Event of Default
shall have been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of
any subsequent default), this Note shall bear interest at a rate of fifteen percent (15%)

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(the “Default Rate”) and at the option of the Holder
and in the Holder’s sole discretion, the
Holder may consider this Note immediately due and payable, without presentment, demand, protest or
notice of any kind, all of which are hereby expressly waived, anything herein or in any other
instruments to the contrary notwithstanding, and the Holder may immediately enforce any and all of
the Holder’s rights and remedies provided herein or any other rights or remedies afforded by law.

     13. Collection Costs.
In the event an Event of Default has occurred and is ongoing
and has not been waived by Holder, the Holder shall be entitled to collect from the Company all
costs and expenses incurred by Holder in enforcing its rights hereunder, including reasonable
attorneys’ fees.

[SIGNATURES FOLLOW ON NEXT PAGE]

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

Effective as of this       
               day of     
                    
                 ,

	 	 	 	 	 
	 	VICOR TECHNOLOGIES, INC.

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

7

 

	 	 	 	 	 

EXHIBIT A

NOTICE OF VOLUNTARY CONVERSION

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

     The undersigned hereby
irrevocably elects to convert $             
                   
         of the principal and
accrued interest of the above Note No.             
         into shares of Common Stock of VICOR
TECHNOLOGIES, INC., (the “Company”) according to the conditions hereof, as of the date written
below.

	 	 	 

	Date of Conversion*
	 	 
	 

	 	 

	 	 	 

	Signature
	 	 
	 

	 	 

	 	 	 

	Name
	 	 
	 

	 	 

	 	 	 

	Social Security No.
	 	 
	 

	 	 

	 	 	 

	Addressexv10w2

Exhibit 10.2

EMPLOYMENT AGREEMENT

     This Employment Agreement (hereinafter referred to as “Agreement”) dated as of January 1,
2009 (the “Effective Date”), by and between Vicor Technologies, Inc. (hereinafter referred to as
the “Company”) and Jerry M. Anchin whose mailing address is 2059 Lyndhurst N, Deerfield Beach, FL
33442 (hereinafter referred to as “Executive”).

     WHEREAS, the Company desires to secure the services of the Executive upon the terms and
conditions hereinafter set forth: and

     WHEREAS, the Executive desires to render services to the Company upon the terms and conditions
hereinafter set forth.

     NOW, THEREFORE, the parties mutually agree as follows:

1. Employment. The Company hereby employs Executive and the Executive hereby accepts such
employment as Vice President and Director of Research and Development, subject to the terms and
conditions set forth in this Agreement.

2. Duties. The Executive shall serve as the Vice President and Associate Director of
Research and Development of the Company as set forth in Section 1 above. During the term of this
Agreement, Executive shall devote all of his business time to the performance of his duties
hereunder unless otherwise authorized by a majority of the Company’s Board of Directors. The
Executive shall report directly to the Chief Executive Officer.

3. Term of Employment.

     (a) The term of the Executive’s employment shall be for a period of thirty-six (36) months
commencing on the date hereof, subject to earlier termination by the Company pursuant to Section 6
hereof (the “Term”)

4. Compensation of Executive.

     a. Base Salary. The Company shall pay to Executive a base salary (the “Base Salary”) of
$156,000 Dollars per annum, less such deductions as shall be required to be withheld by applicable
law and regulations. All salaries payable to Executive shall be paid at such regular weekly,
biweekly or semi-monthly time or times as the Company makes payment of its regular payroll in the
regular course of business. Employee’s Base will be adjusted upward on each anniversary of the
Effective Date (or more frequently, at the Company’s discretion) by a percentage equal to not less
than the higher of the increase in the consumer price index for the preceding year or the increase
in the core rate of inflation for the preceding year, each as reported by the United Sates
government, to reflect cost of living increases.

     b. Other Benefits. Employee will be entitled to participate in such incentive plans, bonus
plans and other benefits as are offered from time to time by the Company to its executive level
employees, including medical coverage or reimbursement therefore for the Employee and his family
and an extended disability insurance plan, each at the Company’s cost, including any

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right to receive any stock options. Employee will also be entitled to participate in any
other benefits that the Company may maintain from time to time for all employees, provided that
Employee meets the respective eligibility requirements.

     c. Expense Reimbursement. The Company agrees to reimburse Employee for all reasonable
expenses incurred by him in the discharge of his duties hereunder. The Employee agrees to maintain
records of such expenses in such form as the Company may request and make such records available to
the Company as and when requested.

     d. Taxes. All sums payable to the Employee hereunder shall be subject to all federal, state
and municipal laws or governmental regulations now or hereafter in existence requiring the
withholding, deduction, or payment therefrom of sums for income or other taxes payable by or for or
assessable against the Employee.

     e. Vacation. The Employee may take a maximum of four (4) weeks vacation during each twelve
(12) month period during the Term at times to be reasonably determined by mutual agreement between
the Company and Employee. Employee shall be entitled to carryover up to one (1) week per year of
unused vacation to future periods.

5. Inability to Perform Job Duties. If Employee becomes unable to substantially perform
his employment duties pursuant to this Agreement due to mental or physical incapacity (a
“Disability”), the Company shall continue his compensation under this Agreement at one-half of his
regular rate during the first three months of such Disability. Thereafter no compensation shall be
payable until such time as Employee becomes able to resume his job duties for the Company, except
to the extent any amounts are payable pursuant to any Company-maintained disability insurance. In
the event that Employee is Disabled for a cumulative period of greater than six (6) months within
any span of twelve (12) months, this Agreement and Employee’s employment may be terminated by the
Company. For purposes of this Agreement, Disability shall be determined by a medical doctor who is
mutually agreeable to the Company and the Employee; in the event that Company and Employee cannot
agree on a medical doctor, then each of Company and Employee shall select a medical doctor, and the
selected medical doctors shall select a third medical doctor who shall individually determine
whether Disability exists pursuant to this Section. Following a termination of this Agreement by
Company pursuant to this Section 5, Company shall pay to Employee all accrued compensation and
benefits and all normal post-termination benefits available under any of Company’s retirement plan,
insurance programs or other benefit plans.

6. Termination By Company For Cause. The Company may terminate this Agreement, and
Employee’s employment “for cause” at any time. As used herein, “for cause” shall mean any one of
the following:

     a. The death of the Employee; or

     b. The Employee has a guardian of his person or estate appointed by a court of competent
jurisdiction; or

     c. The Employee is Disabled for a cumulative period of greater than six (6) months in any
twelve (12) month period; or

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     d. The conviction of the Employee of a felony or of any crime involving moral turpitude (but
excluding any offenses involving operation of a motor vehicle); or

     e. The misuse, misappropriation or embezzlement of Company funds or property by Employee, as
determined by a court of competent jurisdiction; or

     f. Any willful gross neglect or willful gross misconduct of Employee resulting in material
economic harm to the Company; provided that the Company shall give Employee thirty (30) days’
written notice thereof during which thirty (30) day period Employee may cure same; or

     g. The habitual and sustained use of alcohol or drugs by Employee which interferes with the
performance of Employee’s duties for the Company.

     In the event the Company terminates Employee’s employment for cause, Employee’s right to
continued payment of salary and other compensation shall automatically terminate and be forfeited,
and the Company shall pay to Employee all compensation and benefits accrued through the date of
termination. In addition, Employee shall be entitled to any post-termination benefits to which
Employee would otherwise be entitled under any retirement plans, insurance programs or other
benefit plans.

7. Termination By Employee Without Cause. Employee may terminate this Agreement and his
employment with the Company without cause upon thirty (30) days prior written notice to the
Company. Employee may be required to perform his job duties and will be paid his regular
compensation up to the date of the termination. At the option of the Company, the Company may
require Employee to immediately terminate employment upon receiving said thirty (30) days’ notice
from Employee of the termination of this Agreement. In such event, the Company will pay to
Employee an amount equal to thirty (30) calendar days of his Base.

8. Termination by the Company Without Cause or by the Employee for Good Reason.

     a. The Employee may resign (and thereby terminate his employment under this Agreement) at any
time for Good Reason (as defined below), upon not less than thirty (30) days’ prior written notice
to the Company specifying in reasonable detail the reason therefor, provided, however, that if the
reason for resignation for Good Reason is susceptible of a cure, the Company shall have a period of
thirty (30) days after such written notice to effect a cure. For purposes of this Agreement, “Good
Reason” shall mean (a) any material failure by the Company to comply with any material obligation
imposed by this Agreement (including the failure of a successor to the Company to assume this
Agreement or any purported termination hereof which is not in compliance with any applicable notice
provisions hereof); (b) a reduction of Employee’s Base or a material reduction in the Employee’s
title, position, duties or responsibilities; (c) the Employee’s assignment to an office of the
Company located more than fifty (50) miles from the Company’s current Boca Raton, Florida office;
or (d) the Company’s creation of working conditions that a reasonable person in the Employee’s
position would consider unreasonable or intolerable, as determined by the Compensation Committee.
The Company may terminate the employment of Employee without cause and the Employee may terminate
the Agreement with Good Reason, in each case, at any time upon 30 days’ prior written notice,
provided that in either

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such event the Company shall be obligated to pay Employee, in a lump sum within fifteen (15)
days of the date of termination of employment, an amount equal to 100% of the sum of (a) Employee’s
then current Base, and (b) any bonuses paid to Employee during the 12 month period preceding the
date of such termination. In addition, the Company shall maintain the Employee’s health insurance,
life insurance and disability insurance at its expense on the same terms and conditions as existed
during the Employee’s employment for the unexpired Term of this Agreement; provided, that such
benefits will not be continued in the event that Employee obtains similar benefits in connection
with any future employment. Moreover, in such event, Employee shall be entitled to receive all
other customary post-termination benefits under the Company’s retirement plans, insurance programs,
and other benefit plans, and Employee shall be entitled to acceleration of any vesting under any
long-term incentive plans, including the vesting of any unvested stock options or stock warrants.

9. Agreement Not to Use or Disclose Confidential or Proprietary Information. During the
term of this Agreement and a period of two (2) years thereafter, Employee promises and agrees that
he will not disclose or utilize any confidential or proprietary information acquired during the
course of service with the Company and/or its related business entities, Employee shall not
divulge, communicate, use to the detriment of the Company or for the benefit of any other person or
persons, or misuse in any way, any confidential or proprietary information pertaining to the
business of the Company. Any confidential or proprietary information or data now or hereafter
acquired by Employee with respect to the business of the Company (which shall include, but not be
limited to, information concerning the Company’s financial condition, prospects, technology,
customers, suppliers, methods of doing business and promotion of the Company’s products and
services) shall be deemed a valuable, special and unique asset of the Company that is received by
Employee in confidence and as a fiduciary. For purposes of this Agreement “confidential or
proprietary information” means information disclosed to Employee as a consequence of or through
his/her employment by the Company (including information conceived, originated, discovered or
developed by Employee) prior to or after the date hereof and not generally known or in the public
domain, about the Company or its business. This Section 12 is effective regardless of the reason
for the termination of the Agreement and regardless of whether the Agreement is terminated by the
Employee, the Company or by its own terms. This restrictive covenant may be assigned to and
enforced by any of the Company’s assignees or successors.

10. Covenant Not to Compete. 

          (a) Executive recognizes that the services to be performed by him hereunder are special,
unique and extraordinary. The parties confirm that it is reasonably necessary for the protection of
Company that Executive agree, and accordingly, Executive does hereby agree, that he shall not,
directly or indirectly, at any time during the term of the Agreement and the “Restricted Period”
(as defined in Section 10(e) below):

               (i) except as provided in Subsection (d) below, be engaged in the research,
development/creation, marketing, sale or distribution of pharmaceutical and/or medical products
that compete directly or indirectly with the Company’s products or proposed products, or provide
technical assistance, advice or counseling regarding such competing products in any state in the
United States, either on his own behalf or as an officer, director, stockholder, partner,

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consultant, associate, employee, owner, agent, creditor, independent contractor, or
co-venturer of any third party; or

               (ii) employ or engage, or cause or authorize, directly or indirectly, to be employed or
engaged, for or on behalf of himself or any third party, any employee or agent of Company or any
affiliate thereof in a manner which directly or indirectly competes with the Company.

          (b) Executive hereby agrees that he will not, directly or indirectly, for or on behalf of
himself or any third party, at any time during the term of the Agreement and during the Restricted
Period solicit any customers of the Company or any affiliate thereof in a manner which directly or
indirectly competes with the Company.

          (c) If any of the restrictions contained in this Section 10 shall be deemed to be
unenforceable by reason of the extent, duration or geographical scope thereof, or otherwise, then
the court making such determination shall have the right to reduce such extent, duration,
geographical scope, or other provisions hereof, and in its reduced form this Section shall then be
enforceable in the manner contemplated hereby.

          (d) This Section 10 shall not be construed to prevent Executive from owning, directly or
indirectly, in the aggregate, an amount less than or equal to one percent (I%) of the issued and
outstanding voting securities of any class of any company that directly or indirectly competes with
the Company whose voting capital stock is traded on a national securities exchange or on the
over-the-counter market other than securities of the Company. Furthermore, this Section 9 shall not
be construed to prevent Executive from owning, directly or indirectly, any number of issued and
outstanding voting securities of any company that does not directly or indirectly compete with the
Company.

          (e) The term “Restricted Period,” as used in this Section 10, shall mean the period of
Executive’s actual employment hereunder plus a period of twelve (12) months thereafter.

          (f) The provisions of this Section 10 shall survive the end of the Term as provided in Section
10(e) hereof.

11. Executive Conceptions and Developments. The Company shall own all Intellectual
Property Rights (as defined below) in and to, and, for the duration of such Intellectual Property
Rights have the exclusive rights to the commercial exploitation with respect to, all Conceptions
and Developments (as defined below) made individually or jointly by Executive during the period
while employed at Employer (the “Covered Period”). Any Intellectual Property Rights as to which
Executive was an inventor, author or assignee, whether patentable or not, shall be presumed to have
been originally made during the Covered Period and subject to Employer’s ownership. For purposes
hereof, the term “Conceptions and Developments” means all creative, expressive, branding or
technological conceptions, discoveries and developments related to the business of the Company and
the development of the Company’s products of any nature, including, without limitation, conceptions
for products and process, inventions, designs, writings, graphics, animations and other works of
authorship, specifications, drawings, methods, formulas

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and branding proposals, and any implementations, improvements, derivative works or modifications
thereof and without regard to whether are patentable or copyrightable, and the term “Intellectual
Property Rights” means all U.S. and foreign patents, copyrights, trademarks, service marks,
tradenames, corporate names, trade secrets, rights of publicity and similar rights (including
without limitation and all common law rights), domain names and all rights of priority under
international conventions to make application with respect thereto. All Conceptions and
Developments arising during the Covered Period are referred to as the “Covered Conceptions and
Developments”. In addition to any previous assignments, Executive assigns to the Company all
Intellectual Rights included the Covered Conceptions and Developments without regard to their being
patentable or copyrightable. All works of authorship included in the Covered Conceptions and
Developments that are eligible for protection under the Copyright Act shall be deemed “works made
for hire” to the extent they may qualify as such under 17 U.S.C. Section 101, and otherwise the
copyright therein shall be assigned by Executive to the Company at the time such works were made.
All Covered Conceptions and Developments, whether or not patentable, shall be promptly disclosed to
the Company in writing and shall be held in confidence by the Executive and treated as
“Confidential Information”, until such time as the Company, in its sole determination, shall elect
to make the subject matter thereof publicly known. Executive agrees that, at the expense of the
Company, he will, without additional compensation, take any such further action, including the
rendering of all lawful testimony and assistance; and the execution and delivery to such
instruments as the Company may require from time to time, to perfect, effectuate, register, record
or enforce the Company’s rights or interests in any of the Covered Conceptions and Developments.
Executive hereby irrevocably appoints the Company to be Executive attorney-in-fact to act in
Executive’s name, place and stead to do and execute any such act or instrument for the purpose of
this Section. The Company shall be under no liability to account to Executive for any revenue or
profit derived or resulting from the use, exploitation or licensing of any of the covered
Conceptions or Developments subject in this Section.

12. Agreement Not to Use or Disclose Trade Secrets. During the term of this Agreement and
a period of five (5) years thereafter, Employee promises and agrees that he will not disclose or
utilize any trade secrets acquired during the course of service with the Company and/or its related
business entities. As used herein, “trade secret” refers to the whole or any portion or phase of
any formula, pattern, device, combination of devices, or compilation of information which is for
use, or is used, in the operation of the Company’s business and which provides the Company an
advantage, or an opportunity to obtain an advantage, over those who do not know or use it. “Trade
secret” also includes any scientific, technical, or commercial information, including any design,
list of suppliers, list of customers, as well as pricing information or methodology, contractual
arrangements with vendors or suppliers, business development plans or activities, or Company
financial information. This Section 11 is effective regardless of the reason for the termination of
the Agreement and regardless of whether the Agreement is terminated by the Employee, the Company or
by its own terms. This restrictive covenant may be assigned to and enforced by any of the
Company’s assignees or successors.

13. Agreement Not To Hire Company Employees. If Employee leaves the employ of the Company
or terminates this Agreement, Employee promises and agrees that, during the two (2) years following
his departure from the Company, Employee will not, without the express written permission of the
Company, directly or indirectly employ as a consultant or employee any

6

 

person who is employed as a consultant or employee of the Company at the time of Employee’s
termination, or any person who was an employee or consultant of the Company during the six months
preceding Employee’s termination; provided, however this Section 13 shall not apply in the event
that Employee is terminated without cause by the Company or the Employee terminates this Agreement
with Good Reason. This restrictive covenant may be assigned to and enforced by any of the
Company’s assignees or successors.

14. Injunctive Relief. In recognition of the unique services to be performed by Employee
and the possibility that any violation by Employee of Section 10, Section 11, Section 12 or Section
13 of this Agreement may cause irreparable or indeterminate damage or injury to Company, Employee
expressly stipulates and agrees that the Company shall be entitled, upon ten (10) days written
notice to Employee, to obtain an injunction from any court of competent jurisdiction restraining
any violation or threatened violation of this Agreement. Such right to an injunction shall be in
addition to, and not in limitation of, any other rights or remedies the Company may have for
damages.

15. Judicial Modification of Agreement. The Company and Employee specifically agree that a
court of competent jurisdiction (or an arbitrator, as appropriate) may modify or amend Section 10,
Section 11, Section 12 or Section 13 of this Agreement if absolutely necessary to conform with
relevant law or binding judicial decisions in effect at the time the Company seeks to enforce any
or all of said provisions.

16. Resolution of Disputes by Arbitration. Any claim or controversy that arises out of or
relates to Employee’s employment, this Agreement, or the breach of this Agreement, will be resolved
by arbitration in Palm Beach County in accordance with the rules of the American Arbitration
Association. Judgment upon the award rendered by the arbitrator may be entered in any court
possessing jurisdiction over arbitration awards. This Section shall not limit or restrict the
Company’s right to obtain injunctive relief for violations of Section 10, Section 11, Section 12 or
Section 13 of this Agreement directly from a court under Section 14 of this Agreement.

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17. Miscellaneous.

     a. Costs and Expenses. Each party hereto agrees to pay its own costs and expenses incurred in
negotiating this Agreement and consummating the transactions described herein. In the event either
party is required to seek legal counsel to enforce the terms and provisions of this Agreement, the
prevailing party in any action (including arbitration) shall be entitled to recover attorneys fees
and costs (including on appeal).

     b. Choice of Law. This Agreement will be interpreted, construed and enforced in accordance
with the laws of the State of Florida and the proper jurisdiction and venue shall be the Circuit
Court in Palm Beach County, Florida.

     c. Construction. The parties hereto and their respective legal counsel participated in the
preparation of this Agreement; therefore, this Agreement shall be construed neither against nor in
favor of any of the parties hereto, but rather in accordance with the fair meaning thereof.

     d. Effect of Waiver. The failure of any party at any time or times to require performance of
any provision of this Agreement will in no manner affect the right to enforce the same. The waiver
by any party of any breach of any provision of this Agreement will not be construed to be a waiver
by any such party of any succeeding breach of that provision or a waiver by such party of any
breach of any other provision.

     e. Counterparts. This Agreement may be executed in one or more counterparts, each of which
will be deemed an original and all of which together will constitute one and the same instrument.

     f. Entire Agreement. This Agreement sets forth the entire agreement between the parties, and
supersedes any prior agreements or understanding between the Company and Employee. This Agreement
may be amended only in writing, signed by both parties.

     g. Severability. If any provision of this Agreement is held invalid for any reason, such
invalidity shall not affect the enforceability of the remainder of this Agreement.

     h. Notices. Any notices required or permitted or given pursuant to this Agreement to the
Company or Employee shall be in writing and shall be deemed given upon delivery in person or three
(3) days after deposit of same in the U.S. certified mail or registered mail, return receipt
requested, first class postage and registration fees prepaid, to the addresses listed below. The
parties hereto shall notify each other whenever their addresses shall change during the Term.

[SIGNATURES ON NEXT PAGE]

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     IN WITNESS WHEREOF, the parties have executed this Employment Agreement on the date set forth
below.

	 	 	 	 	 

	Company	 	Employee
	 
	 	 	 	 
	By:

	 	/s/ David H. Fater
	 	/s/ Jerry M. Anchin
	 

	 	 
	 	 
	Name:

	 	David H. Fater
	 	Jerry M. Anchin
	Title:

	 	Chief Executive Officer	 	 
	 
	 	 	 	 
	Date: March 3, 2009	 	Date: March 3, 2009
	 
	 	 	 	 
	2300 Corporate Blvd N.W. Suite 123	 	2059 Lyndhurst N.
	 	 	 
	Boca Raton, Florida 33431	 	Deerfield Beach, Florida 33442
	 	 	 
	(Address for Notices)	 	(Address for Notices)

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