Document:

EX-10.3 Form of Option Agreement Officer & Directo

 

Exhibit 10.3

BIOHEART, INC.

INCENTIVE STOCK OPTION AGREEMENT

FOR

Agreement

     1. Grant of Option. BIOHEART, INC. (the “Company”) hereby grants, as of      ,
(the “Date of Grant”),
to           (the
“Optionee”) an option (the “Option”) to purchase
up to
            
shares of the Company’s Common Stock, $.01 par value (the “Stock”), at an exercise price per share
equal to $           (the “Exercise Price”). The Option shall be subject to the terms and conditions
set forth herein. The Option was issued pursuant to the Company’s 1999 Officers and Employees
Stock Option Plan (the “Plan”), which is incorporated herein for all purposes. The Option shall be
treated by the Company as an incentive stock option within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”) and not a nonqualified stock option, if and
to the extent that the limitations under Section 4(b) of the Plan and Section 422(d) of the Code,
are not exceeded. The Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be
bound by all of the terms and conditions hereof and thereof.

     2. Definitions. Unless otherwise provided herein, terms used herein that are defined
in the Plan and not defined herein shall have the meanings attributed thereto in the Plan.

     3. Exercise Schedule. Except as otherwise provided in Section 6 or 12 of this
Agreement, or in the Plan, the Option is exercisable in installments as provided below, which shall
be cumulative. To the extent that the Option has become exercisable with respect to a percentage of
Shares as provided below, the Option may thereafter be exercised by the Optionee, in whole or in
part, at any time or from time to time prior to the expiration of the Option as provided herein.
The following table indicates each date (the “Vesting Date”) upon which the Optionee shall be
entitled to exercise the Option with respect to the percentage of Shares granted as indicated
beside the date, provided that the Optionee has been continuously employed by the Company or a
Subsidiary through and on the applicable Vesting Date:

	 	 	 
	Percentage of Shares	 	Vesting Date
	25%
	 	first anniversary of Date of Grant
	 	 	 
	25%
	 	second anniversary of Date of Grant
	 	 	 
	25%
	 	third anniversary of Date of Grant
	 	 	 
	25%
	 	fourth anniversary of Date of Grant

     Except as otherwise specifically provided herein, there shall be no proportionate or partial
vesting in the periods prior to each Vesting Date, and all vesting shall occur only on the
appropriate Vesting Date. Upon the Optionee’s termination of employment with the Company and its
Subsidiaries, any unvested portion of the Option shall terminate and be null and void.

 

 

     4. Method of Exercise. This Option shall be exercisable in whole or in part in
accordance with the exercise schedule set forth in Section 3 hereof by written notice which shall
state the election to exercise the Option, the number of Shares in respect of which the Option is
being exercised, and such other representations and agreements as to the holder’s investment intent
with respect to such Shares as may be required by the Company pursuant to the provisions of the
Plan. Such written notice shall be signed by the Optionee and shall be delivered in person or by
certified mail to the Chief Financial Officer of the Company. The written notice shall be
accompanied by payment of the Exercise Price. This Option shall be deemed to be exercised after
(a) receipt by the Company of such written notice accompanied by the Exercise Price, and (b)
arrangements that are satisfactory to the Board or the Committee in its sole discretion have been
made for Optionee’s payment to the Company of the amount that is necessary to be withheld in
accordance with applicable Federal or state withholding requirements. No Shares will be issued
pursuant to the Option unless and until such issuance and such exercise shall comply with all
relevant provisions of applicable law, including the requirements of any stock exchange upon which
the Stock then may be traded.

     5. Method of Payment. Payment of the exercise price shall be by any of the
following, or a combination thereof, at the election of the Optionee: (a) cash; (b) check; (c)
with Shares that have been held by the Optionee for at least 6 months (or such other Shares as the
Company determines will not cause the Company to recognize for financial accounting purposes a
charge for compensation expense); or (d) such other consideration or in such other manner as may be
determined by the Board or the Committee in its absolute discretion.

     6. Termination of Option.

     (a) Any unexercised portion of the Option shall automatically and without notice terminate and
become null and void at the time of the earliest to occur of:

          (i) three (3) months after the date on which the Optionee’s employment with the Company and
its Subsidiaries is terminated for any reason other than by reason of (A) Cause, which, solely for
purposes of this Agreement, shall mean the termination of the Optionee’s employment by reason of
the Optionee’s willful misconduct or gross negligence, (B) a mental or physical disability (within
the meaning of Section 22(e) of the Internal Revenue Code of 1986, as amended) of the Optionee as
determined by a medical doctor satisfactory to the Committee, or (C) death;

          (ii) immediately upon the termination of the Optionee’s employment with the Company and its
Subsidiaries for Cause;

          (iii) twelve (12) months after the date on which the Optionee’s employment with the Company
and its Subsidiaries is terminated by reason of a mental or physical disability (within the meaning
of Section 22(e) of the Internal Revenue Code of 1986, as amended) as determined by a medical
doctor satisfactory to the Committee;

          (iv) twelve (12) months after the date of termination of the Optionee’s
employment with the Company and its Subsidiaries by reason of the death of the Optionee (or if
later, three months after the date on which the Optionee shall die if such death shall occur during
the one year period specified in paragraph (iii) of this Section 6);

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          (v) immediately in the event that the Optionee shall file any lawsuit or arbitration claim
against the Company or any Subsidiary, or any of their respective officers, directors or
shareholders of the Company;

          (vi) the tenth (10th) anniversary of the Date of Grant; or

          (vii) termination under Section 12 hereof.

     (b) To the extent not previously exercised, (i) the Option shall terminate immediately in the
event of (1) the liquidation or dissolution of the Company, or (2) any reorganization, merger,
consolidation or other form of corporate transaction in which the Company does not survive, unless
the successor corporation, or a parent or subsidiary of such successor corporation, assumes the
Option or substitutes an equivalent option or right pursuant to Section 10(c) of the Plan, and (ii)
the Committee or the Board in its sole discretion may by written notice (“cancellation notice”)
cancel, effective upon the consummation of any corporate transaction described in Subsection
8(b)(i) of the Plan in which the Company does survive, any Option that remains unexercised on such
date. The Committee or the Board shall give written notice of any proposed transaction referred to
in this Section 6(b) a reasonable period of time prior to the closing date for such transaction
(which notice may be given either before or after approval of such transaction), in order that the
Optionee may have a reasonable period of time prior to the closing date of such transaction within
which to exercise the Option if and to the extent that it then is exercisable (including any
portion of the Option that may become exercisable upon the closing date of such transaction). The
Optionee may condition his exercise of the Option upon the consummation of a transaction referred
to in this Section 6(b).

     7. Transferability. The Option granted hereby is not transferable otherwise than by
will or under the applicable laws of descent and distribution, and during the lifetime of the
Optionee the Option shall be exercisable only by the Optionee or the Optionee’s guardian or legal
representative. In addition, the Option shall not be assigned, negotiated, pledged or hypothecated
in any way (whether by operation of law or otherwise), and the Option shall not be subject to
execution, attachment or similar process. Upon any attempt to transfer, assign, negotiate, pledge
or hypothecate the Option, or in the event of any levy upon the Option by reason of execution,
attachment or similar process contrary to the provisions hereof, the Option shall immediately
become null and void.

     8. No Rights of Stockholders. Neither the Optionee nor any personal representative
(or beneficiary) shall be, or shall have any of the rights and privileges of, a stockholder of the
Company with respect to any shares of Stock purchasable or issuable upon the exercise of the
Option, in whole or in part, prior to the date of exercise of the Option.

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9. Stockholders Agreements; Restrictions.

     (a) Stockholders Agreement. Unless the requirements under this sentence are waived in
writing by the Company, the Optionee shall not be permitted to exercise the Option or to be issued
any shares of Stock thereunder unless and until the Optionee executes and delivers to the Company
the form of stockholders agreement then in effect among the Company and its stockholders (which
agreement may be the stockholders agreement utilized in connection with the Company’s initial
private offering to investors) (the “Stockholders Agreement”). In addition to any rights or
obligations of Optionee under such Stockholders Agreement, the Optionee is and shall be subject to
the following provisions of this Section 9 and the other provisions of this Option Agreement.

     (b) Restrictions While Stock is Not Registered; Restricted Shares. The shares of
Stock subject to the Option specified in Section 1 and (i) all shares of the Company’s capital
stock received as a dividend or other distribution upon such shares, and (ii) all shares of capital
stock or other securities of the Company into which such shares may be changed or for which such
shares shall be exchanged, whether through reorganization, recapitalization, stock split-ups or the
like, shall be subject to the provisions of this Section 9 at all times, and only at those times,
that shares of the Company’s Common Stock are not Publicly-Held (such times during which the Stock
is not so Publicly-Held hereinafter being referred to as the “Restricted Period”) and are during
the Restricted Period hereinafter referred to as “Restricted Shares.” For purposes of this
Agreement, “Publicly-Held” means that the Common Stock of the Company, or the stock of any
successor company into which the Common Stock is substituted or exchanged, is registered pursuant
to Section 12(b) or 12(g) of the Securities Exchange Act.

     (c) No Sale or Pledge of Restricted Shares. Except as otherwise provided herein, the
Optionee agrees and covenants that during the Restricted Period he or she will not sell, pledge,
encumber or otherwise transfer or dispose of, and will not permit to be sold, encumbered, attached
or otherwise disposed of or transferred in any manner, either voluntarily or by operation of law
(all hereinafter collectively referred to as “transfers”), all or any portion of the Restricted
Shares or any interest therein except in accordance with and subject to the terms of this Section
9.

     (d) Involuntary Transfer Repurchase Option. Whenever, during the Restricted Period,
the Optionee has any notice or knowledge of any attempted, pending, or consummated involuntary
transfer or lien or charge upon any of the Restricted Shares, whether by operation of law or
otherwise, the Optionee shall give immediate written notice thereof to the Company. Whenever the
Company has any other notice or knowledge of any such attempted, impending, or consummated
involuntary transfer, lien, or charge, it shall give written notice thereof to the Optionee. In
either case, the Optionee agrees to disclose forthwith to the Company all pertinent information in
his possession relating thereto. If during the Restricted Period any of the Restricted Shares are
subjected to any such involuntary transfer, lien, or charge, the Company and its designated
purchaser shall at all times have the immediate and continuing option to purchase such of the
Restricted Shares upon notice by the Company to the Optionee or other record holder at a price
determined according to Section 9(f) below, and any of the Restricted Shares so purchased by the
Company or its designated purchaser shall in every case be free and
clear of such transfer, lien, or charge.

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     (e) Repurchase Option on Termination of Employment. Anything set forth in this
Agreement to the contrary notwithstanding, the Company shall have the right (but not the
obligation) to purchase or designate a purchaser of all, but not less than all, of the Restricted
Shares (including, without limitation, any Restricted Shares transferred pursuant to Section 2.3.1
of the Stockholders Agreement) during the Restricted Period and after termination of the Optionee’s
employment relationship with the Company for any reason, for the purchase price specified in
Section 9(f) hereof. The Company may exercise its right to purchase or designate a purchaser of
the Restricted Shares at any time (without any time limitation) after the Optionee’s termination of
employment or service and during the Restricted Period. If the Company chooses to exercise its
right to purchase the Restricted Shares hereunder, the Company shall give its notice of its
exercise of this right to the Optionee or his or her legal representative specifying in such notice
a date not later than ten (10) days following the date of giving such notice on which the Company
or its designated purchaser shall deliver, or be prepared to deliver the check or promissory note
for the purchase price and the Optionee or his or her legal representative shall deliver all stock
certificates evidencing such Restricted Shares duly endorsed in blank for transfer or with separate
stock powers endorsed in blank for transfer.

     (f) Repurchase Price. For purposes of Section 9(d) and (e) hereof, the per share
purchase price of Restricted Shares shall be an amount equal to the Fair Market Value of such
share, determined by the Board or the Committee as of any date determined by the Board or the
Committee that is not more than one year prior to the date of the event giving rise to the
Company’s right to purchase such Restricted Shares under this Section 9. Any determination of Fair
Market Value made by the Board or the Committee shall be binding and conclusive on all parties
unless shown to have been made in an arbitrary and capricious manner. The purchase price shall, at
the option of the Company, be payable in cash or in the form of the Company’s promissory note
payable in up to three equal annual installments commencing 12 months after the acquisition by the
Company (“Acquisition Date”) of the Restricted Shares, together with interest on the unpaid balance
thereof at the rate equal to the prime rate of interest of Citibank, N.A. on the Acquisition Date.

     (g) Voting Rights. As a condition to Optionee’s exercise of any Option pursuant to
this Agreement, the Company may in its discretion require that Optionee enter into a voting
agreement that grants to specified persons designated therein the voting rights for all shares of
Stock acquired pursuant to the exercise of such Options, until the earlier of (i) 10 years from the
date of exercise of the Option, or (ii) the end of the Restricted Period, such voting agreement to
be in such form as the Company reasonably may request.

     (h) Legends. The certificate or certificates representing any Shares acquired
pursuant to the exercise of an Option prior to the last day of the Restricted Period shall bear the
following legends (as well as any legends required by applicable state and federal corporate and
securities laws or the Stockholders Agreement):

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF
COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE
SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN
COMPLIANCE THEREWITH.

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THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
RESTRICTIONS ON TRANSFER, RIGHT OF FIRST REFUSAL AND REDEMPTION OR
REPURCHASE OPTIONS HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE
STOCK OPTION AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE
SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE
ISSUER. SUCH TRANSFER RESTRICTIONS, RIGHT OF FIRST REFUSAL AND REDEMPTION
OR REPURCHASE RIGHTS ARE BINDING ON TRANSFEREES OF THESE SHARES.

     10. Market Stand-Off Agreement. In the event of an initial public offering
of the Company’s securities and upon request of the Company or the underwriters managing any
underwritten offering of the Company’s securities, the Optionee agrees not to sell, make any short
sale of, loan, grant any option for the purchase of, or otherwise dispose of any Shares (other than
those included in the registration) acquired pursuant to the exercise of the Option, without the
prior written consent of the Company or such underwriters, as the case may be, for such period of
time (not to exceed 180 days) from the effective date of such registration as may be requested by
the Company or such managing underwriters.

     11. Optionee’s Representations. By executing this Agreement, Optionee hereby
represents and warrants to the Company as to all provisions set forth in the Investment
Representation Statement attached hereto as Exhibit A. In addition, in the event the Company’s
issuance of the Shares purchasable pursuant to the exercise of this Option has not been registered
under the Securities Act of 1933, as amended, at the time this Option is exercised, Optionee shall,
if required by the Company, concurrently with the exercise of all or any portion of this Option,
execute and deliver to the Company such Investment Representation Statement or such other form as
the Company may request.

     12. Options Terminate if Optionee Violates Agreements. The Participant hereby
acknowledges and agrees, as a condition to receiving a grant of the Options, and the receiving of
Shares upon exercise of such Options, to be bound by the restrictive covenant provisions of that
certain Employment Agreement, dated      , entered into by and between the Company and the
Participant, as well as any and all restrictive covenant agreements including the Noncompetition
Agreement and the Inventions and Proprietary Rights Assignment and Confidentiality Agreement. In
the event the Participant breaches any of the restrictive covenant provisions and/or agreements,
the Board may, within its sole and absolute discretion and upon written notice to the Optionee,
terminate this Agreement and, consequently (a) the Options hereunder shall become
immediately void and shall no longer have any force any effect, and (b) any and all Shares
Optionee received pursuant to this Agreement must be returned to the Company immediately upon
demand by the Company upon the Company’s return of the exercise price

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paid by the Optionee. The determination as to whether the Executive has breached any of the restrictive covenant provisions
and/or agreements shall be made by the Board, in good faith, and shall be binding and conclusive on
all parties.

     13. Acceleration of Exercisability of Option. Except as otherwise determined by the
Board or the Committee, in its sole and absolute discretion, this Option shall become immediately
exercisable in the event of a Change in Control, or in the event the Committee or the Board
exercises its discretion to cancel the Option pursuant to Sections 6(b) or (c) hereof.

     14. No Right to Continued Employment. Neither the Option nor this Agreement shall
confer upon the Optionee any right to continued employment or service with the Company.

     15. Law Governing. This Agreement shall be governed in accordance with and governed
by the internal laws of the State of Florida.

     16. Incentive Stock Option Treatment. The terms of this Option shall be interpreted
in a manner consistent with the intent of the Company and the Optionee that the Option qualify as
an Incentive Stock Option under Section 422 of the Code. If any provision of the Plan or the
Agreement shall be impermissible in order for the Option to qualify as an Incentive Stock Option,
then the Option shall be construed and enforced as if such provision had never been included in the
Plan or the Option.

     17. Interpretation. The Optionee accepts the Option subject to all the terms and
provisions of the Plan and this Agreement. The undersigned Optionee hereby accepts as binding,
conclusive and final all decisions or interpretations of the Committee upon any questions arising
under the Plan and this Agreement.

     18. Notices. Any notice under this Agreement shall be in writing and shall be deemed
to have been duly given when delivered personally or when deposited in the United States mail,
registered, postage prepaid, and addressed, in the case of the Company, to the Company’s Secretary
at 3425 Stallion Lane, Weston, Florida 33331, or if the Company should move its principal office,
to such principal office, and, in the case of the Optionee, to the Optionee’s last permanent
address as shown on the Company’s records, subject to the right of either party to designate some
other address at any time hereafter in a notice satisfying the requirements of this Section.

     19. Tax Consequences. Set forth below is a brief summary as of the date of this
Option of certain of the federal tax consequences of exercise of this Option and disposition of the
Shares under the law in effect as of the date of grant. THIS SUMMARY IS NECESSARILY INCOMPLETE,
AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER
BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

     (a) Exercise of Option. There will be no regular federal income tax liability
upon the exercise of the Option, although the excess, if any, of the fair market value of
the Shares on the date of exercise over the Exercise Price will be treated as an adjustment
to the alternative minimum tax for federal tax purposes and may subject the Optionee to the
alternative minimum tax in the year of exercise.

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     (b) Disposition of Shares. If Shares transferred pursuant to the Option are
held for at least one year after exercise and are disposed of at least two years after the
Date of Grant, any gain realized on disposition of the Shares will also be treated as
long-term capital gain for federal income tax purposes. If Shares purchased under an
Option are disposed of within such one-year period or within two years after the Date of
Grant, any gain realized on such disposition will be treated as compensation income (taxable
at ordinary income rates) to the extent of the difference between the Exercise Price and the
lesser of (1) the fair market value of the Shares on the date of exercise, or (2) the sale
price of the Shares.

     (c) Notice of Disqualifying Disposition of Option Shares. If the Optionee
sells or otherwise disposes of any of the Shares acquired pursuant to the Option on or
before the later of (1) the date two years after the Date of Grant, (2) the date one year
after the date of exercise, the Optionee shall immediately notify the Company in writing of
such disposition. The Optionee agrees that the Optionee may be subject to the income tax
withholding by the Company on the compensation income recognized by the Optionee from the
early disposition by payment in cash or out of the current earnings paid to the Optionee.

     The foregoing discussion assumes that, and only is applicable if, the fair market value of the
Shares as of the date on which the Option is granted is not less than the Exercise Price. The
Company believes that it has made a good faith effort to determine the fair market value of the
Shares and does not believe that the Exercise Price is less than the fair market value of the
Shares on the Date of Grant. No assurances can be given, however, that the Internal Revenue
Service would not take a contrary position, or that the Internal Revenue Service would not treat
the Option as an Incentive Stock Option for some other reason. If the Exercise Price is determined
to be less than the fair market value of a Share on the Date of Grant, then the Option may be
taxable as a non-qualified option. The holder of a non-qualified option will be treated as having
received compensation income (taxable at ordinary income tax rates) at the time the option is
exercised equal to the excess, if any, of the fair market value of the Shares on the date of
exercise over the Exercise Price. If Shares transferred pursuant to the non-qualified option are
held for at least one year, any gain realized on disposition of the Shares will be treated as
long-term capital gain for federal income tax purposes.

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     IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the            day of           .

	 	 	 	 	 
	 	COMPANY:

BIOHEART, INC.

 	 
	 	By:  	
 	 
	 	 	 	 
	 	 	 	 
	 

     Optionee acknowledges receipt of a copy of the Plan and represents that he or she is familiar
with the terms and provisions thereof, and hereby accepts this Option subject to all of the terms
and provisions thereof. Optionee has reviewed the Plan and this Option in their entirety, has had
an opportunity to obtain the advice of counsel prior to executing this Option, and fully
understands all provisions of the Option.

	 	 	 	 	 
	Dated: __________________ 	OPTIONEE:

 	 
	 	By:  	
 	 
	 	 	 	 
	 	 	 	 

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EXHIBIT A

INVESTMENT REPRESENTATION STATEMENT

	 	 	 	 	 
	PURCHASER

	 	:	 	 
	 
	COMPANY

	 	:
	 	BIOHEART, INC.
	 
	SECURITY

	 	:
	 	COMMON STOCK
	 
	AMOUNT

	 	:	 	 
	 
	DATE

	 	:	 	 

In connection with the grant and exercise of options to purchase of the above-listed Securities, I,
the Purchaser, represent to the Company the following:

     (a) I am aware of the Company’s business affairs and financial condition, and have acquired
sufficient information about the Company to reach an informed and knowledgeable decision to acquire
the Securities. I am purchasing these Securities for my own account for investment purposes only
and not with a view to, or for the resale in connection with, any “distribution” thereof for
purposes of the Securities Act of 1933, as amended (the “Securities Act”).

     (b) I understand that the Company’s issuance of the Securities has not been registered under
the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon,
among other things, the bona fide nature of my investment intent as expressed herein. In this
connection, I understand that, in the view of the Securities and Exchange Commission (the “SEC”),
the statutory basis for such exemption may be unavailable if my representation was predicated
solely upon a present intention to hold these Securities for the minimum capital gains period
specified under tax statutes, for a deferred sale, for or until an increase or decrease in the
market price of the Securities, or for a period of one year or any other fixed period in the
future.

     (c) I further understand that the Securities must be held by me indefinitely unless the
transfer is subsequently registered under the Securities Act or unless an exemption from
registration is otherwise available, and that I cannot transfer or sell any Securities unless
permitted under my Stock Option Agreement and the Stockholders Agreement referenced in Section 9(a)
of this Stock Option Agreement. Moreover, I understand that the Company is under no obligation to
register any transfer of the Securities. In addition, I understand that the certificate evidencing
the Securities will be imprinted with a legend which prohibits the transfer of the Securities
unless registered or such registration is not required in the opinion of counsel for the Company.

     (d) I am familiar and agree to comply with the provisions of Rule 701 and Rule 144, each
promulgated under the Securities Act, which, in substance, permit limited public resale of
“restricted securities” acquired, directly or indirectly, from the issuer thereof, in a
non-public offering subject to the satisfaction of certain conditions, subject to the requirements
of my Stock Option Agreement and the Stockholders Agreement.

	 	 	 	 	 
	 	Signature of Purchaser:

 	 
	 	
 	 
	 	 	 
	 	 	 
	 

Date: _________________

10EX-10.5 Consulting Agreement

 

Exhibit 10.5

CONSULTING AGREEMENT

     THIS CONSULTING AGREEMENT (this “Agreement”), dated March 18, 2004, (the “Effective Date”),
is made and entered by and between BIOHEART, INC., a Florida corporation (the “Company”) and
Richard Spencer (the “Consultant”).

R E C I T A T I O N S

     A. The Company believes that the Consultant’s Services will be extremely beneficial to the
Company and wishes to obtain such Services and the benefit of the Consultant’s knowledge and
experience.

     B. The Company desires to retain the services of the Consultant and the Consultant desires to
provide services to the Company, subject to the terms and conditions set forth in this Agreement.

O P E R A T I V E   P R O V I S I O N S

     In consideration of the foregoing recitations, the mutual promises hereinafter set forth and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending legally to be bound, hereby covenant and agree as
follows:

ARTICLE I

Engagement

     1.1 Engagement of Consultant. The Company hereby engages the Consultant and
Consultant hereby agrees to provide consulting services as set forth in Section 1.2 of this
Agreement (the “Services”).

     1.2 Services to be Provided.

          A. Services. During the term of this Agreement, the Consultant personally shall perform the
following services: (i) assisting Bioheart in reaching its financial goals; (ii) providing
leadership training to Bioheart’s board of directors, officers, employees and consultants; and
(iii) appearing at selected events as mutually agreed upon by Consultant and Bioheart (collectively
referred to herein as the “Services”).

          B. Performance of Services. The Consultant is responsible for reasonably determining the
method, details and means of performing the services required under this Agreement. Consultant’s
business and affairs shall be conducted in accordance with all applicable federal, state and local
laws and regulations. Such consultation may be by telephone, in writing or by other method of communication which the Company and the Consultant mutually
agree.

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          C. Hours. Notwithstanding any other provision of this Agreement, it is agreed that the
Consultant shall not be required to devote any minimum amount of time during any particular week or
year, but shall perform services pursuant to this Agreement on an “as needed” basis at such times
and for such periods as the Company and Consultant mutually agree. The Consultant shall use his
best efforts in good faith to provide consulting services when requested to do so by the Company.

     1.3 Term of Agreement. The term of this Agreement shall commence on the Effective
date and shall continue until March 18, 2007 (the “Term”), unless terminated in accordance with the
provisions of Article 3 hereof. This Agreement may be renewed for an additional period(s) only
upon the mutual written agreement of the parties.

     1.4 Nature of Consulting Relationship. It is agreed and understood by the parties to
this Agreement that, for all purposes, during the term of this Agreement, the Consultant shall
serve solely as an independent contractor of the Company and shall not be an employee of the
Company in any capacity. Nothing in this Agreement shall be interpreted or construed as creating
or establishing the relationship of employer and employee between the Consultant and Company. As
an independent contractor, the Consultant (a) shall accept any directions issued by the Company
pertaining to the goals to be attained and the results to be achieved by him, but shall be solely
responsible for the manner and hours in which he will perform his services under this Agreement,
(b) shall not be entitled to any employee or fringe benefits available to employees of the Company,
and (c) shall be solely responsible for the payment of any federal, state and local taxes
applicable to the fees and expenses paid or payable by the Company in connection with Consultant’s
engagement.

ARTICLE II

Compensation

     2.1 Compensation. In consideration for the Services to be provided by the Consultant
pursuant to Section 1.2 hereof, upon execution of this Agreement and subject to the execution of
all other applicable agreements, the Company shall grant to Consultant an option to purchase 80,000
shares of the common stock of the Company, par value $.001 per share (the “Option”), at an exercise
price equal to $3.50 per share, in accordance with the terms, conditions and provisions of the
Company’s 1999 Directors and Consultants Stock Option Plan, and pursuant to the terms, conditions
and provisions of the Stock Option Agreement, attached hereto as Exhibit A (the “Option
Agreement”), to be entered into by and between the Company and the Consultant. The Option shall
vest equally over a three-year period or immediately upon a “Change in Control” (as defined in the
Option Agreement), whichever occurs first.

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     2.2 Expense Reimbursement. Upon the submission of proper substantiation by the
Consultant, and subject to such rules and guidelines as the Company may from time to time
adopt, the Company shall reimburse the Consultant for all reasonable expenses actually paid or
incurred by the Consultant during the Term in the course of and pursuant to the business of the
Company, including without limitation travel and lodging expenses necessarily incurred in
performing the Services required hereunder. The Consultant shall account to the Company in writing
for all expenses for which reimbursement is sought and shall supply to the Company copies of all
relevant invoices, receipts or other evidence reasonably requested by the Company.

ARTICLE III

Termination

     3.1 Termination. Notwithstanding anything to the contrary contained in this Agreement:

          A. Expiration. This Agreement shall terminate upon the expiration of the Term as set forth in
Section 1.3; or

          B. Breach. This Agreement shall terminate on the date on which one party (the “Terminating
Party”) provides written notice of such termination to the other party (the “Breaching Party”) by
reason of the fact that the Breaching Party has materially breached his or its obligations under
this Agreement, which breach is not cured by the Breaching Party within thirty days after the
Terminating Party has given written notice of such breach to the Breaching Party; provided that the
Terminating Party shall not be obligated to offer notice and an opportunity to cure if the breach
is not curable.

          C. Termination by the Company. The Company may terminate this Agreement as follows:

               (i) This Agreement shall terminate upon the death of Consultant, and the Company shall have no
further obligation under this Agreement to make any payments to, or bestow any benefits on, the
Consultant from and after the date of Consultant’s death, other than payments or benefits accrued
and due and payable to Consultant prior to the date of his death.

               (ii) This Agreement shall terminate if as a result of Consultant’s incapacity due to accident
or illness, Consultant shall have been unable to satisfactorily perform his Duties under this
Agreement for a period of thirty consecutive days, or for an aggregate of forty-five days in any
consecutive three-month period. In the event of a termination due to disability under this
Section, the Company shall have no further obligation under this Agreement to make any payments to,
or bestow any benefits on, Consultant from and after the date of the termination, other than
payments or benefits accrued and due and payable to it prior to the date of termination pursuant to
this Agreement.

               (iii) The Company may immediately terminate this Agreement for Cause at any time. For
purposes of this Agreement, the Company shall have “Cause” to terminate this Agreement if
Consultant (1) engages in common law fraud in his relations with the Company or

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any of its subsidiaries or affiliates, or with any customer or business contact of the Company or
any of its subsidiaries or affiliates; (2) engages in misconduct injurious to the Company; or (3)
is convicted of any crime involving an act of moral turpitude. In the event of a termination for
Cause, the Company shall have no further obligation under this Agreement to make any payments to,
or bestow any benefits on, the Consultant from and after the date of the termination, other than
payments or benefits accrued and due and payable to it prior to the date of termination.

ARTICLE IV

Restrictive Covenants

     4.1 Confidentiality. The Consultant agrees to keep all Confidential Information (as
defined in Section 4.2 herein) strictly and permanently confidential and agrees that he shall not
at any time (whether during or after the Term) directly or indirectly use for any purpose, or
disclose or permit to be disclosed to any person or entity, any Confidential Information. The
Consultant acknowledges that the Confidential Information constitutes unique and valuable assets of
the Company and such Confidential Information was acquired at great time and expense by the
Company, and that any disclosure or other use of such Confidential Information, other than for the
sole benefit of the Company, would be wrongful and would cause irreparable harm to the Company.

     4.2 Confidential Information. The term “Confidential Information” means any
non-public information (whether or not in written form and whether or not expressly designated as
confidential) relating directly or indirectly to the Company or any of the Company’s subsidiaries
or affiliates or relating to the business, operations, financial affairs, performance, assets,
investments, technology, processes, products, contracts, customers, licensees, sublicensees,
suppliers, personnel, plans or prospects of the Company or any of the Company’s subsidiaries or
affiliates, including such information consisting of or otherwise relating directly or indirectly
to trade secrets, know how, technology, designs, drawings, processes, license or sublicense
arrangements, formulae, proposals, customer lists or preference, pricing lists, referral sources,
marketing or sales techniques or plans, operation manuals, service manuals, financial information,
projections, lists of suppliers or distributors or sources of supply; provided, however, that
“Confidential Information” shall not be deemed to include information which, at the time of initial
disclosure to the Consultant, is part of, or without violation of this Agreement or fault of the
Consultant becomes part of, the public knowledge of literature and is readily accessible to third
parties.

-4-

 

     4.3 Documents, Records, etc. All documents, records, data, apparatus, equipment and
other physical property, whether or not pertaining to Confidential Information, which are furnished
to the Consultant by the Company or are produced by the Consultant in connection with the
Consultant’s service with the Company, if not otherwise indicated by the Consultant, will be and
remain the sole property of the Company. The Consultant will return to the Company all such
materials and property as and when requested by the Company. In any event, the Consultant will
return all such materials and property immediately upon termination of the Consultant’s service
with the Company for any reason. The Consultant will not retain with the Consultant any such
material or property or any copies thereof after such termination.

ARTICLE V

Miscellaneous

     5.1 Entire Agreement; Amendment. This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and supersedes all prior
agreements, understandings, negotiations and discussions, both written and oral, among the parties
hereto. This Agreement may not be amended or modified in any way except by a written instrument
executed by the Company and the Consultant.

     5.2 Notices. All notices under this Agreement shall be in writing and shall be given
by personal delivery, or by reputable overnight courier, to the address set forth below:

	 	 	 
	If to the Consultant:

	 	Richard Spencer

3641 North 47th Avenue

Hollywood, Florida 33021
	 
	 	 
	If to the Company:

	 	Bioheart, Inc.

2400 N. Commerce Parkway

Suite 408

Weston, Florida 33331

Attn: Howard J. Leonhardt,
         Chief
Executive Officer
	 
	 	 
	With a copy to:

	 	Tobin & Reyes, P.A.

7251 West Palmetto Park Road

Suite 205

Boca Raton, Florida 33433

Attn: David S. Tobin, Esq.

-5-

 

or to such other person or persons or to such other address or addresses as the Consultant and the
Company or their respective successors or assigns may hereafter furnish to the other by notice
similarly given. Notices, if personally delivered, shall be deemed to have been received on the
date of delivery, and if given by registered or certified mail, shall be deemed to have been
received on the fifth business day after mailing.

     5.3 Governing Law. This Agreement shall be governed by, and construed and interpreted
in accordance with, the laws of the State of Florida, without giving effect to the conflict of laws
principles of each State. With respect to any disputes concerning federal law, such disputes shall
be determined in accordance with the law as it would be interpreted and applied by the United
States Court of Appeals for the Eleventh Circuit.

     5.4 Assignment: Successors and Assigns. Neither the Consultant nor the Company may
make an assignment of this Agreement or any interest herein, by operation of laws or otherwise,
without the prior written consent of the other party; provided that the Company may assign its
rights under this Agreement with the consent of the Consultant in the event that the Company shall
effect a reorganization, consolidate with or merge into any other corporation, partnership,
organization or other entity, or transfer all or substantially all of its properties or assets to
any other corporation, partnership, organization or other entity, but only if such assignee or the
surviving entity in any such reorganization agrees to assume all of the Company’s obligations under
this Agreement. This Agreement shall inure to the benefit of and be binding upon the Company and
the Consultant, their respective heirs, personal representatives, executors, administrators, legal
representatives, successors and assigns.

     5.5 Waiver. The waiver by any party hereto of the other party’s prompt and complete
performance or breach or violation of any provision of this Agreement shall not operate nor be
construed as a waiver of any subsequent breach or violation, and the waiver by any party hereto to
exercise any right or remedy which he or it may possess shall not operate nor be construed as the
waiver of such right or remedy by such party or as a bar to the exercise of such right or remedy by
such party upon the occurrence of any subsequent breach or violation.

     5.6 Severability. The invalidity of any one or more of the words, phrases, sentences,
clauses, sections or subsections contained in this Agreement shall not affect the enforceability of
the remaining portions of this Agreement or any part thereof, all of which are inserted
conditionally on their being valid in law, and, in the event that any one or more of the words,
phrases, sentences, clauses, sections or subsections contained in this Agreement shall be declared
invalid by a court of competent jurisdiction, then this Agreement shall be construed as if such
invalid word or words, phrase or phrases, sentence or sentences, clause or clauses, section or
sections, or subsection or subsections had not been inserted.

     5.7 Arbitration of Disputes. Any dispute or controversy arising under or in connection
with this Agreement shall be settled exclusively by arbitration in Broward County, Florida, in
accordance with the Rules of the American Arbitration Association then in effect (except to the
extent that the procedures outlined below differ from such rules). The cost and

-6-

 

expenses of the arbitration and of enforcement of any award in any court shall be borne by the
non-prevailing party. If advances are required, each party will advance one-half of the estimated
fees and expenses of the arbitrators. Judgment may be entered on the arbitrators’ award in any
court having jurisdiction. Although arbitration is contemplated to resolve disputes hereunder,
either party may proceed to court to obtain an injunction to protect its rights hereunder, the
parties agreeing that either could suffer irreparable harm by reason of any breach of this
Agreement. Pursuit of an injunction shall not impair arbitration on all remaining issues. In the
event that either party hereto shall bring suit seeking an injunction of any action constituting a
breach of any of the terms or provisions of this Agreement, then the party at fault shall pay all
reasonable court costs and attorney’s fees of the other.

     5.8 Consent to Jurisdiction. To the extent that any court action is permitted
consistent with or to enforce Section 5.7 of this Agreement, the parties hereby consent to the
jurisdiction of the Supreme Court of Florida, the Florida District Court of Appeal, and the United
States District Court for the District of Florida. Accordingly, with respect to any such court
action, the Consultant (i) submits to the personal jurisdiction of such courts; (ii) consents to
service of process; and (iii) waives any other requirement (whether imposed by statute, rule of
court, or otherwise) with respect to personal jurisdiction or service of process.

     5.9 Compliance with Legal Requirements. The Company shall not provide workers’
compensation, disability insurance, Social Security or unemployment compensation coverage nor any
other statutory benefit to the Consultant. The Consultant shall comply at his expense with all
applicable provisions of workers’ compensation laws, unemployment compensation laws, federal Social
Security law, the Fair Labor Standards Act, federal, state and local income tax laws, and all other
applicable federal, state and local laws, regulations and codes relating to terms and conditions of
employment required to be fulfilled by employers or independent contractors.

     5.10 Gender and Number. Wherever the context shall so require, all words herein in
the male gender shall be deemed to include the female or neuter gender, all singular words shall
include the plural and all plural words shall include the singular.

     5.11 Section Headings. The section or other headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or interpretation of any or
all of the provisions of this Agreement.

     5.12 No Third Party Beneficiary other than Company. Nothing expressed or implied in
this Agreement is intended, or shall be construed, to confer upon or give any person, firm,
corporation, partnership, association or other entity, other than the parties hereto and each of
their respective heirs, personal representatives, legal representatives, successors and assigns,
any rights or remedies under or by reason of this Agreement.

     5.13 No Authority to Bind Company. The Consultant does not and shall not have any
authority to enter into any contract or agreement for, on behalf of or in the name of the
Company, or to legally bind the Company to any commitment or obligation.

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

	 	 	 	 	 
	 	THE COMPANY:

BIOHEART, INC., a Florida corporation

 	 
	 	/s/
 	 
	 	Howard Leonhardt, Chief Executive Officer 	 
	 	 	 
	 
	 	THE CONSULTANT:

 	 
	 	/s/
 	 
	 	Richard Spencer 	 
	 	 	 
	 

-8-

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