Document:

EXHIBIT 4.6

 

PUT AND CALL OPTION AGREEMENT

 

THIS
AGREEMENT (this “Agreement”),
dated as of April 11, 2006, is entered into by and between Discus Holdings, Inc.,
a California corporation (“Discus”) and American Medical Technology,
Inc, a Delaware corporation (“AMT”).

 

RECITALS

 

WHEREAS,
Discus owns one
hundred percent (100%) of the issued and outstanding shares (the “Target
Shares”) of capital stock of Spectrum Dental, Inc., a California
corporation (the “Target”).

 

WHEREAS,
subject to the terms and conditions of this Agreement (i) Discus desires
to acquire a put-option to require AMT to purchase the Target Shares (the “Put
Option”), and (ii) AMT desires to acquire a call-option to require
Discus to sell the Target Shares to AMT (the “Call Option” and together
with the Put Option, the “Options”).

 

WHEREAS,
Discus, AMT and Target are parties to that certain Exclusive License Agreement
dated as of the date hereof (the “License Agreement”).

 

AGREEMENT

 

 NOW, THEREFORE,
in consideration of the covenants set forth in this Agreement, and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree, represent and warrant as follows:

 

ARTICLE I

 

OPTIONS

 

1.1                                 Put
Option. Subject to the terms and conditions of this Agreement, AMT hereby
grants the Put Option to Discus, such Put Option (i) giving Discus the
right to sell the Target Shares to AMT and (ii) obligating AMT to purchase
the Target Shares from Discus, in each case accordance with the terms of this Agreement.

 

1.2                                 Call
Option. Subject to the terms and conditions of this Agreement, Discus
hereby grants the Call Option to AMT, such Call Option (i) giving AMT the
right to purchase the Target Shares from Discus and (ii) obligating Discus
to sell the Target Shares to AMT, in each case accordance with the terms of
this Agreement.

 

1.3                                 Option
Exercise Price. The exercise price for the Options (the “Exercise Price”)
is set forth in the schedules below. The date of the exercise notice shall be
deemed the date of the first exercise of an Option for purposes of determining
the Option Exercise Price.

 

In the event that the all cash provision is elected
pursuant to Section 1.4(a) below, then the following schedule shall
determine the Exercise Price:

 

	
  Date of Exercise

  	
   

  	
  Exercise Price

  	
   

  
	
  April 11, 2007 – April 10, 2008

  	
   

  	
  $

  	
  2,300,000.00

  	
   

  
	
  April 11, 2008 – April 10, 2009

  	
   

  	
  $

  	
  2,415,000.00

  	
   

  
	
  April 11, 2009 – April 10, 2010

  	
   

  	
  $

  	
  2,535,750.00

  	
   

  
	
  April 11, 2010 – April 10, 2011

  	
   

  	
  $

  	
  2,662,537.50

  	
   

  

 

In the event that the cash and stock provision is
elected pursuant to Section 1.4(b) below, then the following schedule shall
determine the “Cash Component” and the Exercise Price:

 

1

 

	
  Date of Exercise

  	
   

  	
  Cash Component

  	
   

  	
  Exercise Price

  	
   

  
	
  April 11, 2007 – April 10, 2008

  	
   

  	
  $

  	
  500,000

  	
   

  	
  $

  	
  2,300,000.00

  	
   

  
	
  April 11, 2008 – April 10, 2009

  	
   

  	
  $

  	
  525,000

  	
   

  	
  $

  	
  2,415,000.00

  	
   

  
	
  April 11, 2009 – April 10, 2010

  	
   

  	
  $

  	
  551,250

  	
   

  	
  $

  	
  2,535,750.00

  	
   

  
	
  April 11, 2010 – April 10, 2011

  	
   

  	
  To Come

  	
   

  	
  $

  	
  2,662,537.50

  	
   

  

 

1.4                                 Form of
Exercise Price. The form of the Exercise Price shall be either:

 

(a)                                  all
cash; or

 

(b)                                 the
Cash Component, as determined pursuant to Section 1.3 above, and 3,000,000
shares of capital stock of AMT as adjusted pursuant to Section 1.5 below
(the “Stock Component”), provided, however, that if the Cash Component plus the
value of the Stock Component, based on the average per share trading value of
such stock for the thirty days preceding the Closing is less than the Exercise
Price, as determined pursuant to Section 1.3 above, AMT shall issue such
additional shares as is necessary to ensure that the Cash Component and the
value of the total shares of stock to be issued equals the Exercise Price.

 

1.5                                 Adjustment
of Stock Component. The Stock Component shall be subject to adjustment from
time to time upon the happening of certain events as follows:

 

(a)                                  Adjustment for Dividends in Stock or Other Securities
or Property. In case at any time or from time to time on or after
the date hereof the holders of the common stock of AMT shall have received, or,
on or after the record date fixed for the determination of eligible
stockholders, shall have become entitled to receive, without payment therefor,
other or additional stock or other securities or property (other than cash) of
AMT by way of dividend, then and in each case, the Stock Component shall
increase by the amount of such other or additional stock or other securities or
property (other than cash) of AMT in proportion to the original 3,000,000
shares of capital stock of AMT.

 

(b)                                 Stock Splits and Reverse Stock Splits. If
at any time on or after the date hereof AMT shall subdivide its outstanding
shares of capital stock into a greater number of shares, the Stock Component
receivable upon exercise of the Options shall thereby be proportionately
increased; and, conversely, if at any time on or after the date hereof the
outstanding number of shares of capital stock shall be combined into a smaller
number of shares, Stock Component receivable upon exercise of the Options shall
thereby be proportionately decreased.

 

1.6                                 Exercise
of Options.

 

(a)                                  Election
of Form of Exercise Price

 

(i)                                     the
form of the Exercise Price shall be as stated under Section 1.4(b),
unless the parties mutually agree to an all cash Exercise Price as stated under
Section 1.4(a).

 

(ii)                                  In
the event that AMT elects to exercise its Call Option, the form of the
Exercise Price shall be either as stated under Section 1.4(a) or Section 1.4(b) at
Discus’ sole election.

 

(b)                                 Notice.
The exercise of either Option shall be effected by written notice from the
exercising party to the other party of the exercising party’s intention to
exercise its Option (the “First Notice”). From the date of the First
Notice, each party shall conduct confirmatory due diligence as it deems
necessary, modify the Stock Purchase Agreement which shall govern the sale of
the Target Shares (the “Stock Purchase Agreement”) to be in
substantially the form set forth as Exhibit A hereto, as
necessary, update the disclosure schedules to the Stock Purchase Agreement, and
identify and obtain all material third party consents to the transactions. The
parties shall use reasonable best efforts to complete the foregoing items
within forty-five (45) days of the First Notice, provided however, that such period
of time may be extended for an additional fifteen (15) days if either
party in good faith determines that additional time is needed to complete its
diligence efforts. The foregoing period of time is hereby referred to as the “Diligence
Period.”   Notwithstanding anything
to the contrary in this Agreement, AMT shall not have the right to exercise its
Call Option if AMT’s shares of capital stock are then trading at less than
$0.60 per share or the average trading price of AMT’s shares of capital stock during
the preceding 30 day period is less than $0.60 per share, as adjusted for
reverse stock splits and other recapitalization events.

 

2

 

(c)                                  Time.
Neither party may exercise their respective Option before April 11,
2007. The Options shall terminate and expire on the earlier to occur of (x) the
termination or expiration of the License Agreement or (y) 5 years from the date
hereof.

 

(d)                                 Closing.
Upon the expiration of the Diligence Period, the exercising party shall
provide a second written notice to the other party, which shall state whether
it has elected or declined to proceed with the transaction based upon the
updated diligence review and disclosure schedules (the “Second Notice”).
Neither Option shall be deemed to have been exercised if the Second Notice
states that such party has declined to proceed with the transaction. Discus, if
it is not the exercising party, shall deliver written notice to AMT after
receipt of the Second Notice, as to the form of the Exercise Price
pursuant to Section 1.6(a) hereof. Thereafter, the Closing of the
sale of the Target Stock shall occur within twenty (20) days of the delivery of
the Second Notice pursuant to the terms and conditions set forth in the Stock
Purchase Agreement with such changes and additions as are reasonably necessary
to account for the final Exercise Price, necessary consents and approvals,
changed dates and other changed circumstances as identified during the
Diligence Period.

 

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES OF
DISCUS

 

Discus represents and warrants to AMT that the following are true and
correct as of the date hereof:

 

2.1                                 Organization.
Discus is a corporation duly incorporated, validly existing and in good
standing under the laws of California and has all necessary corporate power and
authority to enter into and perform this Agreement.

 

2.2                                 Authorization.
The execution and delivery of this Agreement, and the performance by Discus of
its obligations hereunder have been duly authorized by all requisite corporate
action on the part of Discus.

 

2.3                                 Enforceable
Obligations. This Agreement has been duly executed and delivered by Discus
and constitutes the legal, valid and binding obligation of Discus enforceable
against Discus in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors’ rights generally and by
general principles of equity.

 

2.4                                 Title
to Target Shares. Discus is the sole record and beneficial owner of all of
the Target Shares, free and clear of any restrictions on transfer (other than
any restrictions under applicable securities laws), lien, charge or other
encumbrance. Discus is not a party to any option, warrant, purchase right, or
other contract or commitment that could require Discus to sell, transfer, or
otherwise dispose of any common stock of the Target (other than this Agreement).
Discus is not a party to any voting trust, proxy, or other agreement or
understanding with respect to the voting of the Target Shares.

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF
AMT

 

AMT hereby represent and warrant to Discus that the following are true
and correct as of the date hereof:

 

3.1                                 Organization.
AMT is a corporation duly incorporated, validly existing and in good standing
under the laws of Delaware and has all necessary corporate power and authority
to enter into and perform this Agreement.

 

3.2                                 Authorization.
The execution and delivery of this Agreement, and the performance by AMT of its
obligations hereunder have been duly authorized by all requisite corporate
action on the part of AMT.

 

3.3                                 Enforceable
Obligations. This Agreement has been duly executed and delivered by AMT and
constitutes the legal, valid and binding obligation of AMT enforceable against
AMT in accordance with its terms,

 

3

 

except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general principles of equity.

 

ARTICLE IV

 

MISCELLANEOUS

 

4.1                                 Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns, except that
AMT may not assign its obligations hereunder without the prior written
consent of Discus. Any assignment in contravention of this provision shall be
void.

 

4.2                                 Notices.
Except to the extent otherwise provided herein, any notices or other
communications required or permitted hereunder shall be sufficiently given if
delivered personally or sent by fax, federal express, registered or certified
mail, postage prepaid, addressed as follows or to such other address of which
the parties may have given notice:

 

	
  To Discus:

   

  Discus Holdings, Inc.

  8550 Higher Street

  Culver City, CA 90232

  Attention: Kenneth L. Rosenblood, Chief Operating

  Officer

   

  
	
  With a copy to:

   

  Manatt, Phelps &
  Phillips, LLP

  11355 West Olympic Blvd.

  Los Angeles, CA 90064

  Attention: Harold Reichwald, Esq.

   

  
	
  To AMT:

   

  American Medical
  Technologies, Inc.

  5655 Bear Lane

  Corpus Christi, Texas 78405

  Attention: Roger W. Dartt, President and Chief Executive Officer

   

  
	
  With a copy to:

   

  Page, Murphree, Byerly &
  Hansen

  Two Riverway, Suite 1700

  Houston, Texas 77056

  Attention: James Hansen, Esq.

   

  

 

Unless otherwise specified herein, such notices or
other communications shall be deemed received (a) on the date delivered,
if delivered personally; (b) three (3) business days after being
sent, if sent by registered or certified mail; or (c) on the date of
actual receipt, if delivered by any other method.

 

4.3                                 Entire
Agreement: Amendments; Attachments.

 

(a)                                  This
Agreement and Exhibits hereto represent the entire understanding and agreement
between the parties hereto with respect to the subject matter hereof and
supersede all prior oral and written and all contemporaneous oral negotiations,
commitments and understandings between such parties. Discus and AMT may

 

4

 

amend or modify this
Agreement, in such manner as may be agreed upon, by a written instrument
executed by Discus and AMT.

 

(b)                                 The
Exhibits attached hereto or to be attached hereafter are hereby incorporated as
integral parts of this Agreement.

 

4.4                                 Expenses.
Except as otherwise expressly provided herein, Discus and AMT shall each pay
their own expenses in connection with this Agreement and the transactions
contemplated hereby.

 

4.5                                 Governing
Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of California.

 

4.6                                 Section Headings.
The section headings are for the convenience of the parties hereto and in
no way alter, modify, amend, limit, or restrict the contractual obligations of
the parties hereto.

 

4.7                                 Severability.
The invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement.

 

4.8                                 Counterparts.
This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original, but all of which shall be one and the same
document.

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
respective duly authorized officers as of the date first written above.

 

	
   

  	
  AMERICAN MEDICAL TECHNOLOGIES, INC., a

  Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger W. Dartt

  	
   

  
	
   

  	
  Name: Roger W. Dartt

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DISCUS HOLDINGS, INC.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth L. Rosenblood

  	
   

  
	
   

  	
  Name: Kenneth L. Rosenblood

  
	
   

  	
  Title: Chief Operating Officer

  
					

 

5

 

Exhibit A

 

Form of
Stock Purchase Agreement

 

6EXHIBIT 4.7

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights
Agreement dated as of April 11, 2006, is entered into by and among
American Medical Technologies, Inc., a Delaware corporation (the “Company”), and Discus Holdings, Inc. a California corporation
(the “Initial Holder”).

 

WHEREAS, this Agreement is
being entered into in connection with the signing of that certain Put and Call
Option Agreement (the “Put Call Agreement”) and the issuance of that certain
Warrant to purchase common stock of the Company (the “Warrant”).

 

WHEREAS, pursuant to the Put
Call Agreement, the Company and the Initial Holder each have the right to
require the sale of Spectrum Dental, Inc., a wholly-owned subsidiary of
the Initial Holder to the Company for an exercise price that may include
an amount of shares of common stock of the Company.

 

WHEREAS, pursuant to the
Warrant, the Initial Holder has the right to purchase a certain number of
shares of common stock of the Company, subject to vesting requirements.

 

NOW, THEREFORE, for valuable
consideration, the receipt and sufficiency of which hereby are acknowledged,
the parties hereto agree as follows:

 

ARTICLE V

 

DEFINITIONS

 

1.1           Definitions.

 

“Advice”
shall have the meaning provided in Section 2.4 hereof.

 

“Agreement”
means this Registration Rights Agreement, as such from time to time may be
amended.

 

 “Common Stock”
means shares of the common stock, $.04 par value per share, of the Company, and
any capital stock of the Company, or any successor entity, into which such
Common Stock hereafter may be changed.

 

“Company”
shall have the meaning set forth in the introductory paragraph hereof, and
shall include the issuer of any capital stock into which the Common Stock is
changed. 

 

“Effective
Period” shall have the meaning provided in Section 2.1
hereof.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated by the SEC thereunder.

 

“Holder”
means (i) the Initial Holder and (ii) any holder of Registrable
Shares to whom the registration rights conferred by this Agreement have been
transferred in compliance with Section 3.8 hereof. 

 

“Holder
Affiliates” shall have the meaning provided in Section 2.6(a) hereof.

 

“Initial
Holder” shall have the meaning set forth in the introductory
paragraph hereof.

 

“Majority in
Interest” shall mean Holders who hold a majority of the Registrable
Shares.

 

“Material
Adverse Effect” shall have the meaning provided in Section 2.2(b) hereof.

 

“Modified
Effective Period” shall have the meaning provided in Section 2.1
hereof.

 

“NASD”
shall have the meaning provided in Section 2.3(m) hereof.

 

“Person”
means any natural person, corporation, company, limited or general partnership,
joint stock company, joint venture, association, limited liability company, trust,
bank, trust company, land trust, business trust or other entity or
organization.

 

“Registrable
Shares” means at any time (i) the Common Stock owned by the
Holders and acquired pursuant to the transactions contemplated in the Put Call
Agreement and the resultant Stock Purchase Agreement (the “Option
Shares”) and (ii) any Shares (the “Warrant
Shares”) issuable upon the exercise of the Warrant, as the number of
such Shares may be adjusted from time to time pursuant to the Warrant plus
any shares of Common Stock into which Warrant Shares are converted, together
with any shares of Common Stock or other equity securities issued as

 

1

 

a dividend on the Common
Stock and any other shares of Common Stock or other securities distributable
on, or with respect to, or in substitution for such Registrable Shares,
including upon the transfer by the Initial Holder or any subsequent Holder; provided, however, that
Registrable Shares shall not include any shares of Common Stock or other
securities (a) the sale of which by a Holder has been registered pursuant
to the Securities Act and which shares have been sold pursuant to such
registration, (b) which have been sold pursuant to Rule 144
promulgated under the Securities Act or (c) which are eligible to be sold
without restriction as contemplated by Rule 144(k).

 

“Registration
Expenses” shall have the meaning provided in Section 2.5
hereof.

 

“Registration
Statement” means a registration statement on Form S-1 or SB-2
or, if available, a registration statement on Form S-3 (or any successor
form), that is to be filed with the SEC under the Securities Act for the
purpose of registering the proposed resale and distribution of the Registrable
Shares.

 

“Rule 144”
means Rule 144 (or any successor rule of similar effect) promulgated
under the Securities Act.

 

“SEC”
means the Securities and Exchange Commission.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated by the SEC thereunder.

 

“Selling
Expenses” shall have the meaning provided in Section 2.5
hereof.

 

“Selling
Holder” means any Holder who is selling Registrable Shares pursuant
to a public offering registered hereunder.

 

“Shelf
Registration” shall have the meaning provided in Section 2.1
hereof.

 

 “Suspension Notice”
shall have the meaning provided in Section 2.4 hereof.

 

ARTICLE VI

 

REGISTRATION RIGHTS

 

2.1           Shelf
Registration. The Company agrees that it shall file with the SEC as
follows: (a) not later than April 11, 2007, a Registration Statement
pursuant to Rule 415 of the Securities Act (a “Shelf
Registration”) covering the offer and resale by the Holders of all
the Warrant Shares and shall use its best efforts to cause the Shelf
Registration to be declared effective by the SEC as soon as practicable
thereafter and (b) within 120 days after the exercise of an Option under
the Put Call Agreement, a Shelf Registration covering the offer and resale by
the Holders of all of the Option Shares and shall use its reasonable best
efforts to cause the Shelf Registration to be declared effective by the SEC as
soon as practicable thereafter. Subject to Section 2.4, the Company
shall be required to maintain the effectiveness of any Shelf Registration until
the earlier of (i) such time as all of the Registrable Shares have been
resold, (ii) such time as all of the Holders can sell all of the
Registrable Shares without restriction pursuant to Rule 144(k) under the
Securities Act or (iii) the three (3) year anniversary of the
effective date of such Shelf Registration in the case of Option Shares and the
ten year anniversary of the effective date of such Shelf Registration in the
case of the Warrant Shares; provided, however, that (iii) above shall not apply if such Shelf
Registration is filed on Form S-3 (the “Effective
Period”); provided further,
however, that if such Shelf Registration
is not filed on Form S-3, then at such time as Form S-3 becomes
available, the Company agrees to refile with the SEC, as soon as practicable
after such time, the Shelf Registration on Form S-3, and the Company shall
be required to maintain the effectiveness of such Shelf Registration on Form S-3
until the earlier of (x) such time as all of the Registrable Shares have
been resold, (y) such time as all of the Holders can sell all of the
Registrable Shares without restriction pursuant to Rule 144(k) under the
Securities Act and (iii) above (the “Modified  Effective Period”). Each Holder agrees to furnish promptly
to the Company in writing all information requested by the Company for
inclusion in the Registration Statement (including the intended method of
disposition of the Registrable Shares held by such Holder) or required from
time to time to be disclosed in order to make the information previously
furnished to the Company by such Holder not misleading.

 

2.2           Piggyback Registration.

 

(a)           If
at any time during the Effective Period or the Modified Effective Period (as
applicable) the Company proposes to file a registration statement under the
Securities Act with respect to an underwritten offering of its equity
securities for its own account or for the account of another Person or Persons
(other than a registration statement on Form S-4 or S-8 (or any substitute
form, respectively, that may be adopted by the SEC)), the Company shall
give written notice of such proposed filing to the Holders at the addresses set
forth in the share

 

2

 

register of the Company
as soon as reasonably practicable (but in no event less than ten (10) business
days before the anticipated filing date), undertaking to provide each Holder
the opportunity to register on the same terms and conditions all or any portion
of such Holder’s Registrable Shares (a “Piggyback Registration”).
Each Holder will have ten (10) business days after receipt of any such
notice to notify the Company as to whether it wishes to participate in a
Piggyback Registration; provided that should a Holder fail to provide timely
notice to the Company, such Holder will forfeit any rights to participate in
the Piggyback Registration with respect to such proposed offering. If the
Company shall determine in its sole discretion not to register or to delay the
proposed offering, the Company may, at its election, provide written notice of
such determination to the Holders and (i) in the case of a determination
not to effect the proposed offering, shall thereupon be relieved of the
obligation to register such Registrable Shares in connection therewith, and (ii) in
the case of a determination to delay a proposed offering, shall thereupon be
permitted to delay registering such Registrable Shares for the same period as
the delay in respect of the proposed offering. As between the Company and the
Selling Holders, the Company shall be entitled to select the underwriters in
connection with any Piggyback Registration.

 

(b)           If
any Person (including the Company) requests, pursuant to Section 2.2,
or in connection with similar piggyback registration rights, that Registrable
Shares be included in a registration statement for an underwritten offering and
the Company shall determine, based upon advice of the managing underwriter or
underwriters, that the inclusion of such Registrable Shares would materially
and adversely affect the price or success of the offering (a “Material Adverse Effect”), then to the extent necessary to
eliminate such Material Adverse Effect, the Company will include in such
registration (i) first, (x) if the proposed offering is for a primary
issuance by the Company, the shares of Common Stock that the Company proposes
to sell for its own account, or (y), if the proposed offering is the result of
a demand registration right held by another Person, the shares of Common Stock
that such Person proposes to sell for its own account, and (ii) second, as
to each Holder, only a portion of the remaining shares to be registered equal
to the ratio which such Holder’s requested shares bears to the total number of
shares requested to be included in such registration statement by all Persons
(other than the Person or Persons initiating such registration request) who
have requested that their shares be included in such registration statement. If
as a result of the provisions of this Section 2.2(b) any
Holder shall not be entitled to include all Registrable Shares in a
registration that such Holder has requested to be so included, such Holder may withdraw
such Holder’s request to include Registrable Shares in such registration
statement prior to its effectiveness.

 

(c)           No
Holder may participate in any Piggyback Registration hereunder unless such
Holder (x) agrees to sell such Holder’s Registrable Shares on the basis
provided in any underwriting arrangements approved by the Company,
(y) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements, and other documents reasonably required
under the terms of such underwriting arrangements or otherwise in connection
with such Piggyback Registration, and (z) agrees to pay its pro-rata share
of all Selling Expenses (including all fees and expenses of its own counsel if
any), provided, however,
that no such Holder shall be required to make any representations or warranties
in connection with any such registration other than representations and
warranties as to (i) such Holder, (ii) such Holder’s ownership of his
or its Registrable Shares to be sold or transferred free and clear of all
liens, (iii) such Holder’s power and authority to effect such transfer and
its intended method of distribution, and (iv) such matters pertaining to
compliance with securities laws and other applicable laws and governmental rules and
regulations, if any, as may be reasonably requested; provided
further, however, that
the obligation of any such Holder to indemnify pursuant to any such
underwriting arrangements shall be individual as to itself, not joint, among
such Holders selling securities, and the liability of each such Holder will be
in proportion to (in the case where more than one Holder is liable), and
provided further that such liability will be limited to, the net amount
received by such Holder from the sale of his or its Registrable Shares pursuant
to such registration.

 

2.3           Registration Procedures. In connection with any registrations of
Registrable Shares pursuant to Sections 2.1 or 2.2 hereof (subject to Section 2.2(a)),
the Company will:

 

(a)           prepare
and file with the SEC a registration statement on any appropriate form under
the Securities Act with respect to the Registrable Shares included therein and,
except as otherwise provided in Section 2.1, use its reasonable efforts to
cause such registration statement to become effective;

 

(b)           prepare
and file with the SEC such amendments, post-effective amendments, and
supplements to the registration statements and the prospectuses used in
connection therewith as may be necessary to keep the registration
statements effective for, in the case of the Shelf Registration, the Effective
Period or the

 

3

 

Modified Effective Period
(as applicable) and, in the case of a Piggyback Registration, such period as may be
specified by the underwriting agreement;

 

(c)           comply
with the provisions of the Securities Act with respect to the disposition of
all securities covered by the registration statements during such periods in
accordance with the intended methods of disposition by the sellers thereof set
forth in the registration statements;

 

(d)           furnish
to each Holder of Registrable Shares, and, if applicable, each underwriter of
securities being registered, such number of copies of the registration
statements, each amendment and supplement thereto, the prospectus included in
the registration statements (including each preliminary prospectus), any
documents incorporated by reference therein and such other documents as such Holder
may reasonably request in order to facilitate the disposition of the
Registrable Shares owned by such Holder (it being understood that, subject to Section 2.4
and the requirements of the Securities Act and applicable state securities
laws, the Company consents to the use of the prospectus and any amendment or
supplement thereto (in each case in the form filed by the Company pursuant
to the Securities Act and delivered to such Holder for distribution) by each
Holder and, if applicable, each underwriter, in connection with the offering
and sale of the Registrable Shares covered by the registration statement of
which such prospectus, amendment or supplement is a part);

 

(e)           use
reasonable efforts to register or qualify such Registrable Shares under such other
securities or blue sky laws of such jurisdictions as the Holders or, if
applicable, the managing underwriter, reasonably request to the extent such
registration or qualification is required; use reasonable best efforts to keep
each such registration or qualification (or exemption therefrom) effective
during the period in which the registration statements are required to be kept
effective; and do any and all other acts and things which may be
reasonably necessary or advisable to enable each Holder to consummate the
disposition of the Registrable Shares owned by such Holder in such
jurisdictions; provided, however,
that the Company will not be required to (i) qualify generally to do
business in any jurisdiction where it would not otherwise be required to qualify
but for this subparagraph, (ii) consent to general service of process in
any such jurisdiction, or (iii) subject itself to taxation in any such
jurisdiction;

 

(f)            promptly
notify each Holder and, if applicable, each underwriter, and (if requested by
any such Person(s)) confirm such notice in writing (i) when a prospectus
or any prospectus supplement or post-effective amendment has been filed and,
with respect to a registration statement or any post-effective amendment, when
the same has become effective, (ii) of the issuance by any state
securities or other regulatory authority of any order suspending the
qualification or exemption from qualification of any of the Registrable Shares
under state securities or “blue sky” laws or the initiation of any proceedings
for that purpose, and (iii) of the happening of any event which makes any
statement made in a registration statement or related prospectus untrue in any
material respect or which requires the making of any changes in such
registration statement, prospectus or documents so that they will not contain
any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading, and subject to Section 2.4, as soon as practicable
thereafter, prepare and file with the SEC (and deliver such filing to each
Holder) and furnish a supplement or amendment to such prospectus so that, as
thereafter deliverable to the purchasers of such Registrable Shares, such
prospectus will not contain any untrue statement of a material fact or omit a
material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading;

 

(g)           make
generally available to the Company’s securityholders an earnings statement
satisfying the provisions of Section 11(a) of the Securities Act no
later than 30 days after the end of the 12-month period beginning with the
first day of the Company’s first fiscal quarter commencing after the effective
date of a registration statement, which earnings statement shall cover said 12-month
period, and which requirement will be deemed to be satisfied if the Company
timely files complete and accurate information on Forms 10-Q, 10-K and 8-K
under the Exchange Act and otherwise complies with Rule 158 under the
Securities Act;

 

(h)           promptly
incorporate in a prospectus supplement or post-effective amendment in
connection with the Shelf Registration such information as any Holder
reasonably requests to be included therein (including without limitation the
naming of additional Holders therein and specifying the number of Registrable
Shares held by each such Holder), and promptly make all required filings of
such prospectus supplement or post-effective amendment;

 

(i)            cooperate
with the Holders and, if applicable, the underwriters, to facilitate the timely
preparation and delivery of certificates (which shall not bear any restrictive
legends unless required under applicable

 

4

 

law) representing
securities sold under any registration statement, and enable such securities to
be in such denominations and registered in such names as the managing
underwriter or such Holders may request and keep available and make
available to the Company’s transfer agent prior to the effectiveness of such
registration statement a supply of such certificates;

 

(j)            to
the extent provided to the Company or the underwriters, furnish to each Holder
a signed counterpart of (i) an opinion or opinions of counsel to the
Company, and (ii) a comfort letter or comfort letters from the Company’s
independent public accountants, each in customary form and covering such
matters of the type customarily covered by opinions or comfort letters, as the
case may be, as the Holders or managing underwriter reasonably requests;

 

(k)           use
its best efforts to cause the Registrable Shares included in the Shelf
Registration, and use all its reasonable best efforts to cause the Registrable
Shares included in any other registration statement, to be (i) listed on
each securities exchange, if any, on which securities of the same class issued
by the Company are then listed, or (ii) authorized to be quoted and/or
listed (to the extent applicable) on the Nasdaq Stock Market if the securities
of the same class of the Company as the Registrable Shares are so
authorized;

 

(l)            provide
a CUSIP number for the Registrable Shares included in any registration
statement not later than the effective date of such registration statement;

 

(m)          cooperate
with each Holder and, if applicable, each underwriter, participating in the
disposition of such Registrable Shares and their respective counsel in all
reasonable respects in connection with any filings required to be made with the
National Association of Securities Dealers, Inc. (“NASD”);

 

(n)           during
the period when the prospectus is required to be delivered under the Securities
Act, file within the required time periods all documents required to be filed
by the Company with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of
the Exchange Act;

 

(o)           notify
each Holder promptly of any request by the SEC for the amending or
supplementing of such registration statement or prospectus or for additional
information; and

 

(p)           advise
each Holder, promptly after it shall receive notice or obtain knowledge
thereof, of the issuance of any stop order by the SEC suspending the
effectiveness of such registration statement or the initiation or threatening
of any proceeding for such purpose and promptly use all commercially reasonable
efforts to prevent the issuance of any stop order or to obtain its withdrawal
at the earliest possible moment if such stop order should be issued.

 

2.4           Suspension of Dispositions;
Holdback Agreements.

 

(a)           Each Holder agrees that, upon receipt of any
notice (a “Suspension Notice”) from the
Company of the happening of any event of the kind described in Section 2.3(f)(iii) (and
such event is not otherwise attributable to a matter that is contemplated by Section 2.4(b)),
such Holder will forthwith discontinue disposition of Registrable Shares
pursuant to any prospectus until such Holder’s receipt of the copies of the
supplemented or amended prospectus, or until it is advised in writing (the “Advice”) by the Company that the use of the prospectus may be
resumed, and has received copies of any additional or supplemental filings
which are incorporated by reference in the prospectus, and, if so directed by
the Company, such Holder will deliver to the Company all copies, other than
permanent file copies then in such Holder’s possession, of the prospectus
covering such Registrable Shares current at the time of receipt of such notice.
The Company shall use its reasonable best efforts and take such actions as are
necessary to render the Advice as soon as practicable.

 

(b)           At
any time, the Company may suspend sales under the Shelf Registration and
refuse to permit any Holder to resell any Registrable Shares pursuant to the
Shelf Registration if suspension of the sale of the Registrable Shares under
the Shelf Registration is deemed necessary by the Company, in its good faith
judgment, as a result of the existence of a matter that the Company has
determined would not be in the best interest of the Company to disclose at such
time or a material fact the disclosure of which would have a material adverse
effect on any proposal or plan by the Company or any of its Subsidiaries to
engage in any acquisition or sale of assets (other than in the ordinary course
of business) or any merger, consolidation, tender offer, securities offering or
other significant transaction. In such an event, the Company shall provide
written notice to the Holders of any such

 

5

 

suspension promptly after
the Company makes such determination, and each Holder agrees to keep the fact
of its receipt of such notice confidential if requested by the Company in such
notice. Notwithstanding the foregoing, (1) the Company shall only be
entitled to exercise its right to suspend sales under the Shelf Registration pursuant
to the second immediately preceding sentence two (2) times in any 12-month
period following the effective date of the Shelf Registration, (2) in no
event may any one period for which sales are suspended under the Shelf
Registration pursuant to the second immediately preceding sentence exceed sixty
(60) consecutive days, and (3) in no event shall the aggregate number of
days for which sales are suspended under the Shelf Registration in any 12-month
period following the effective date of the Shelf Registration pursuant to the
second immediately preceding sentence exceed ninety (90). In addition to the
foregoing, the Company may suspend resales under the Shelf Registration at
any time and from time to time to the extent deemed necessary by the Company,
in its sole discretion, in connection with the filing of a post-effective
amendment to the Registration Statement for the purpose of including
information contained in any report or statement filed or to be filed by the
Company under the Exchange Act (provided that in no event shall the period of
such suspension (i) begin prior to the filing date and (ii) end later
than the effective date, in each case, of such post-effective amendment). The
Company agrees to use its reasonable best efforts to cause any such amendment
to be declared effective as promptly as practicable and to promptly notify the
Holders following such time as the Company has been advised by the SEC that it
has declared such amendment effective. Each Holder hereby covenants and agrees
that it will not dispose of any Registrable Shares pursuant to the Shelf
Registration during the periods for which sales under the Shelf Registration
have been suspended as set forth in this Section 2.4(b) or
until such earlier time as the Company shall have notified the Holders in
writing that sales may resume under the Shelf Registration.

 

(c)           In
connection with any underwritten offering of Registrable Shares made during the
Effective Period or the Modified Effective Period (as applicable), each Holder
hereby agrees, at the request of the underwriters, to enter into a customary
holdback agreement with respect to such Holder’s Registrable Shares, provided, however, that
the terms of such holdback agreement shall be no less favorable than any
holdback agreement executed by any other holders of securities of the Company
in connection with such underwritten offering.

 

2.5           Registration Expenses. Any expenses incident to the Company’s
performance of or compliance with this Agreement, which may include
without limitation (i) all registration and filing fees, (ii) all
fees and expenses associated with filings required to be made with the NASD, as
may be required by the rules and regulations of the NASD, (iii) fees
and expenses of compliance with securities or “blue sky” laws (including
reasonable fees and disbursements of counsel in connection with “blue sky”
qualifications of the Registrable Shares), (iv) rating agency fees, (v) printing
expenses (including expenses of printing certificates for the Registrable
Shares in a form eligible for deposit with Depository Trust Company and of
printing prospectuses if the printing of prospectuses is requested by a
Holder), (vi) reasonable messenger and delivery expenses, (vii) the
Company’s internal expenses (including without limitation all salaries and
expenses of its officers and employees performing legal or accounting duties), (viii) the
fees and expenses incurred in connection with any listing of the Registrable
Shares, (ix) fees and expenses of counsel for the Company and its independent
certified public accountants, (x) securities acts liability insurance (if
the Company elects to obtain such insurance), (xi) the fees and expenses
of any special experts retained by the Company in connection with such
registration, and (xii) the fees and expenses of other Persons retained by
the Company (“Registration Expenses”) will be borne by the Company; provided
that in no event shall Registration Expenses include any underwriting fees,
discounts or commissions, selling fees or commissions, transfer taxes or the
fees and expenses of counsel for any Holder or for the Holders (collectively, “Selling
Expenses”).

 

2.6           Indemnification.

 

(a)           The Company agrees to indemnify and
reimburse, to the fullest extent permitted by law, each Holder, and each of its
employees, officers, and directors and each Person who controls such Holder
(within the meaning of the Securities Act or the Exchange Act) and any agent or
investment advisor thereof (collectively, the “Holder Affiliates”) (i) against
any and all losses, claims, damages, liabilities, and expenses, joint or
individual (including, without limitation, any legal or other expenses incurred
in connection with defending or investigating any such action or claim except
as limited by Section 2.6(c), based upon, arising out of or resulting from
any untrue or alleged untrue statement of a material fact contained in any
registration statement or any amendment thereof, prospectus, or preliminary
prospectus relating to the offer and sale of Registrable Shares or any
amendment thereof or supplement thereto, or any omission or alleged omission of
a material fact required to be stated therein or necessary to make the
statements therein not misleading, (ii) against any and all loss,
liability, claim, damage, and

 

6

 

expense
whatsoever, as incurred, to the extent of the aggregate amount paid in
settlement (effected with the Company’s consent) of any litigation or
investigation or proceeding by any governmental agency or body, commenced or
threatened, or of any claim whatsoever based upon, arising out of or resulting
from any such untrue statement or omission or alleged untrue statement or
omission, and (iii) against any and all costs and expenses (including
reasonable fees and disbursements of counsel) as may be reasonably
inclined in investigating, preparing, or defending against any litigation, or
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon, arising out of or resulting
from any such untrue statement or omission or alleged untrue statement or
omission, to the extent that any such expense or cost is not paid under clause (i) or
(ii) above; except insofar as the same are made in reliance upon and in
conformity with information furnished in writing to the Company by or on behalf
of such Holder or any Holder Affiliate expressly for use in the preparation of
any registration statement or any amendment thereof, prospectus, or preliminary
prospectus relating to the offer and sale of Registrable Shares or any
amendment thereof or supplement thereto. The reimbursements required by this Section 2.6(a) will
be made by periodic payments during the course of the investigation or defense,
as and when bills are received or expenses incurred.

 

(b)           In
connection with any registration statement in which a Holder is participating,
each such Holder will furnish to the Company in writing such information and
affidavits as the Company reasonably requests for use in connection with any
such registration statement or prospectus and, to the fullest extent permitted
by law, each such Holder will indemnify and reimburse the Company and its
directors and officers and each Person who controls the Company (within the
meaning of the Securities Act or the Exchange Act) against any and all losses,
claims, damages, liabilities, and expenses (including, without limitation, any
legal or other expenses) reasonably incurred in connection with defending or
investigating any such claim except as limited by Section 2.6(c), based
upon, arising out of or resulting from my untrue statement or alleged untrue
statement of a material fact contained in the registration statement or any
amendment thereof, prospectus, or any preliminary prospectus relating to the
offer and sale of Registrable Shares or any amendment thereof or supplement
thereto or any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading, but
only to the extent that such untrue statement or alleged untrue statement or
omission or alleged omission was made in reliance upon and in conformity with
any information or affidavit so furnished in writing by such Holder or any of
its Holder Affiliates specifically for use in the preparation of the
registration statement or any amendment thereof, prospectus, or any preliminary
prospectus relating to the offer and sale of Registrable Shares, or any
amendment thereof or supplement thereto; provided that the obligation to
indemnify will be individual as to each Holder, not joint, among such Holders,
and the liability of each such Holder will be in proportion to (in the case
where more than one Holder is liable), and provided further that such liability
will be limited to, the net amount received by such Holder from the sale of
Registrable Shares pursuant to such registration statement; provided, however,
that such Holder shall not be liable in any such case to the extent that prior
to the filing of any such registration statement or prospectus or amendment
thereof or supplement thereto, such Holder has furnished in writing to the
Company information expressly for use in such registration statement or
prospectus or any amendment thereof or supplement thereto which corrected or
made not misleading information previously furnished to the Company.

 

(c)           Any
Person entitled to indemnification hereunder will (i) give prompt written
notice to the indemnifying party of any claim with respect to which it seeks
indemnification (provided that the failure to give such notice shall not limit
the rights of such Person except to the extent that the indemnifying party is
materially prejudiced thereby, and in no event shall such failure relieve the
indemnifying party from any other liability that it may have to such
indemnified party) and (ii) unless such indemnified party has been advised
by counsel in writing that a conflict of interest between such indemnified and
indemnifying parties may exist with respect to such claim, permit such
indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party; provided, however, that any Person entitled to indemnification
hereunder shall have the right to employ separate counsel and to participate in
the defense of such claim, but the fees and expenses of such counsel shall be
at the expense of such indemnified Person unless (A) the indemnifying
party has expressly agreed in writing to pay such fees or expenses, (B) the
indemnifying party shall have failed to timely assume the defense of such claim
and employ counsel reasonably satisfactory to such Person, (C) the named
parties to any such action or proceeding (including any impleaded parties)
include both such indemnified party and the indemnifying party, and such
indemnified party shall have been advised by counsel in writing that there is a
conflict of interest on the part of counsel employed by the indemnifying
party to represent such indemnified party, or (D) the indemnified party’s
counsel shall have advised the indemnified party that there are defenses
available to the indemnified party that are different from or in addition to
those available to the indemnifying party and that the indemnifying party is
not able to assert on behalf of or in the name of the indemnified party (in
which case of either (A), (B), (C) or (D), if such

 

7

 

indemnified party
notifies the indemnifying party in writing that it elects to employ separate
counsel at the expense of the indemnifying party, (in which case of either (C) or
(D)), the indemnifying party shall not have the right to assume the defense of
such action or proceeding on behalf of such indemnified party but shall have
the right to participate through its own counsel). If such defense is not
assumed by the indemnifying party as permitted hereunder, the indemnifying
party will not be subject to any liability for any settlement made by the
indemnified party without its consent (but such consent will not be unreasonably
withheld). If such defense is assumed by the indemnifying party pursuant to the
provisions hereof, such indemnifying party shall not settle or otherwise
compromise the applicable claim unless (1) such settlement or compromise
contains a full and unconditional release of the indemnified party or (2) the
indemnified party otherwise consents in writing (such consent not to be
unreasonably withheld). An indemnifying party who is not entitled to, or elects
not to, assume the defense of a claim will not be obligated to pay the fees and
expenses of more than one counsel for all parties indemnified by such
indemnifying party with respect to such claim, unless any indemnified party
shall have been advised by counsel in writing that a conflict of interest
exists between such indemnified party and any other of such indemnified parties
with respect to such claim, in which event the indemnifying party shall be
obligated to pay the reasonable fees and disbursements of such additional
counsel or counsels.

 

(d)           Each
party hereto agrees that, if for any reason the indemnification provisions
contemplated by Section 2.6(a) or Section 2.6(b) are
unavailable to or insufficient to hold harmless an indemnified party in respect
of any losses, claims, damages, liabilities, or expenses (or actions in respect
thereof) referred to therein, then (i) each indemnifying party shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, liabilities, or expenses (or actions in respect
thereof) in such proportion as is appropriate to reflect the relative fault of
the indemnifying party and the indemnified party in connection with the actions
which resulted in the losses, claims, damages, liabilities or expenses or (ii) if
the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect relevant equitable
considerations. The relative fault of such indemnifying party and indemnified
party shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact relates to information supplied by such
indemnifying party or indemnified party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 2.6(d) were
determined by pro rata allocation (even if the Holders were treated as one
entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to in this Section 2.6(d).
The amount paid or payable by an indemnified party as a result of the losses,
claims, damages, liabilities, or expenses (or actions in respect thereof)
referred to above shall be deemed to include any legal or other fees or
expenses reasonably incurred by such indemnified party in connection with
investigating or, except as provided in Section 2.6(c), defending
any such action or claim. Notwithstanding the provisions of this Section 2.6(d),
no Holder shall be required to contribute an amount greater than the dollar
amount by which the proceeds received by such Holder with respect to the sale
of any Registrable Shares exceeds the amount of damages which such Holder has
otherwise been required to pay by reason of such statement or omission. No
Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation. The Holders’ obligations in
this Section 2.6(d) to contribute shall be individual in
proportion to the amount of Registrable Shares registered by them and not
joint.

 

If
sufficient indemnification is available under this Section 2.6, the
indemnifying parties shall indemnify each indemnified party to the full extent
provided in Section 2.6(a) and Section 2.6(b) without
regard to the relative fault of said indemnifying party or indemnified party or
any other equitable consideration provided for in this Section 2.6(d).

 

(e)           The
indemnification and contribution provided for under this Agreement will remain
in full force and effect regardless of the termination of this Agreement or any
investigation made by or on behalf of the indemnified party or any officer,
director, or controlling Person of such indemnified party and will survive the
transfer of securities.

 

(f)            The
obligations of the parties under this Section 2.6 shall be in
addition to my liability which any party may otherwise have to any other
party.

 

8

 

ARTICLE VII

 

MISCELLANEOUS

 

3.1           Notices. All notices and other communications hereunder
shall be in writing and shall be delivered personally or by next-day courier or
telecopied with confirmation of receipt, to the parties at the addresses
specified below (or at such other address for a party as shall be specified by
like notice; provided that notices of a change of address shall be effective
only upon receipt thereof). Any such notice shall be effective upon receipt, if
personally delivered or telecopied, or one day after delivery to a courier for
next-day delivery.

 

	
  If to the Company, to:

  
	
   

  
	
   

  	
  American Medical
  Technologies, Inc.

  5655 Bear Lane

  Corpus Christi, Texas 78405

  Attention: Roger W. Dartt, President and Chief Executive Officer

  Telephone: (361) 289-1145

  Telecopier: (361) 289-5554

  
	
   

  
	
  with copies to:

  
	
   

  
	
   

  	
  Page, Murphree, Byerly &
  Hansen

  Two Riverway, Suite 1700

  Houston, TX 77056

  Attention: James Hansen, Esq.

  Telephone: 713-877-8200

  Telecopier:

  
	
   

  
	
  If to the Initial Holder,
  to:

  
	
   

  
	
   

  	
  Discus Holdings, Inc.

  8550 Higher Street

  Culver City, CA 90232

  
	
   

  	
  Attention: Kenneth L.
  Rosenblood, Chief Operating Officer

  Telephone: (310) 845-8200

  Telecopier: (310) 845-1513

  
	
   

  
	
  with copies to:

  
	
   

  
	
   

  	
  Manatt, Phelps &
  Phillips, LLP

  
	
   

  	
  11355 West Olympic Blvd.

  
	
   

  	
  Los Angeles, CA 90064

  
	
   

  	
  Attention: Harold
  Reichwald, Esq.

  
	
   

  	
  Telephone: (310) 312-4000

  
	
   

  	
  Telecopier: (310) 312-4224

  
			

 

Failure to mail a notice or
communication to a Holder or any defect in it shall not affect its sufficiency
with respect to other Holders. If a notice or communication is mailed in the
manner provided above, it is duly given, whether or not the addressee receives
it.

 

7.1           Rule 144. The Company covenants that it will file any
reports required to be filed by it under the Securities Act and the Exchange
Act and that it will take such further action as the Holders may reasonably
request to the extent required from time to time to enable the Holders to sell
Registrable Shares without registration under the Securities Act within the
limitation of the exemptions provided by Rule 144 under the Securities
Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the SEC. Upon the request of any Holder, the
Company will deliver to such Holder a written statement as to whether it has
complied with such reporting requirements.

 

7.2           Entire Agreement. This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof and
supersedes all other prior agreements and understandings, both written and
oral, between the parties with respect to the subject matter hereof.

 

9

 

7.3           Governing Law. THIS REGISTRATION RIGHTS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
CALIFORNIA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

 

7.4           Duplicate Originals. All parties may sign any number of
copies of this Agreement. Each signed copy shall be an original, but all of
them together shall represent the same agreement.

 

7.5           Severability. If any provision of this Agreement is held to
be illegal, invalid, or unenforceable under present or future laws in effect
during the term of this Agreement, such provision shall be fully severable;
this Agreement shall be construed and enforced as if such illegal, invalid, or
unenforceable provision had never comprised a part of this Agreement; and
the remaining provisions of this Agreement shall remain in full force and
effect and shall not be affected by the illegal, invalid, or unenforceable
provision or by its severance from this Agreement. Furthermore, in lieu of such
illegal, invalid, or unenforceable provision, there shall be added
automatically as a part of this Agreement a provision as similar in terms
of such illegal, invalid, or unenforceable provision as may be possible
and be legal, valid, and enforceable.

 

7.6           No Waivers; Amendments.

 

3.7.1        No failure or delay on the part of the
Company or any Holder in exercising any right, power or remedy hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right, power or remedy preclude any other or further exercise thereof or
the exercise of any other right, power or remedy. The remedies provided for
herein are cumulative and are not exclusive of any remedies that may be
available to the Company or any Holder at law or in equity.

 

3.7.2        Any provision of this Agreement may be
amended, waived or modified; provided that such amendment, waiver or
modification is in writing and is signed by the Company and a Majority in
Interest; and provided further, that any amendment, waiver, or modification of
this Agreement that (a) adversely affects a Holder’s rights hereunder or (b) increases
a Holder’s obligations, liabilities or duties hereunder, shall require such
Holder’s written approval.

 

7.7           Assignment
of Registration Rights. Each Holder may assign all or any part of its
rights under this Agreement to any other Holder to whom such Holder sells,
transfers or assigns such Registrable Shares. Any such assignee of Registrable
Shares shall agree in writing to be bound by the terms of this Agreement to the
same extent as each Holder is so bound. In the event that the Holder shall
assign its rights pursuant to this Agreement in connection with the transfer of
less than all its Registrable Shares to another Holder, the Holder shall also
retain his rights with respect to its remaining Registrable Shares.

 

IN WITNESS WHEREOF, the parties have caused this Registration Rights
Agreement to be executed by their duly authorized representatives, on the date
first written above.

 

	
   

  	
  AMERICAN MEDICAL TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger W. Dartt

  	
   

  
	
   

  	
  Name: Roger W. Dartt

  
	
   

  	
  Title: President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  DISCUS HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth L. Rosenblood

  	
   

  
	
   

  	
  Name: Kenneth L. Rosenblood

  
	
   

  	
  Title: Chief Operating Officer

  
					

 

10

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