Document:

Prepared by R.R. Donnelley Financial -- Warrant Agreement

 EXHIBIT 10.40 
  
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE OR FOREIGN SECURITIES LAWS, AND ACCORDINGLY, SUCH SECURITIES
MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE REGISTRATION OR QUALIFICATION PROVISIONS OF APPLICABLE FEDERAL, STATE AND FOREIGN SECURITIES LAWS OR APPLICABLE EXEMPTIONS THEREFROM. 
  
 MOBILE PET SYSTEMS, INC. 
  
 Warrant for the Purchase of Shares of Common Stock 
  
 375,000 Common Shares 
  
 FOR VALUE RECEIVED, MOBILE PET SYSTEMS, INC., a Delaware corporation (the “Company”), hereby certifies that Bank J.
Vontobel & Son AG or its permitted assigns, is entitled to purchase from the Company, at any time or from time to time commencing on August 1, 2002 and prior to 5:00 P.M., New York City time, on July 31, 2007, THREE HUNDRED SEVENTY FIVE THOUSAND
(375,000) fully paid and non-assessable shares of the common stock, $.0001 par value per share, of the Company for an aggregate purchase price of $168,000.00 (computed on the basis of $0.4480 per share). (Hereinafter, (i) said common stock, together
with any other equity securities which may be issued by the Company with respect thereto or in substitution therefor, is referred to as the “Common Stock,” (ii) the shares of the Common Stock purchasable hereunder or under any other
Warrant (as hereinafter defined) are referred to individually as a “Warrant Share” and collectively as the “Warrant Shares,” (iii) the aggregate purchase price payable for the Warrant Shares hereunder is referred to
as the “Aggregate Warrant Price,” (iv) the price payable for each of the Warrant Shares hereunder is referred to as the “Per Share Warrant Price,” (v) this Warrant, all similar Warrants issued on the date hereof and
all Warrants hereafter issued in exchange or substitution for this Warrant or such similar Warrants are referred to as the “Warrants” and (vi) the holder of this Warrant is referred to as the “Holder” and the holder
of this Warrant and all other Warrants or Warrant Shares issued upon the exercise of any Warrant are referred to as the “Holders.”) The Aggregate Warrant Price is not subject to adjustment. The Per Share Warrant Price is
subject to adjustment as hereinafter provided; in the event of any such adjustment, the number of Warrant Shares shall be adjusted by dividing the Aggregate Warrant Price by the Per Share Warrant Price in effect immediately after such adjustment.

  
 1.  Exercise of Warrant.    This Warrant may be exercised in whole at
any time or in part from time to time, commencing on August 1, 2002 and prior to 5:00 P.M., New York City time, on July 31, 2007, by the Holder by the surrender of this Warrant (with the subscription form at the end hereof, or a reasonable facsimile
thereof, duly executed) at the address set forth in Subsection 9(a) hereof, together with proper payment of the Aggregate Warrant Price, or the proportionate part hereof if this Warrant is exercised in part. Payment for Warrant Shares shall be made
by certified or official bank check payable to the order of the Company. If this Warrant 

 is exercised in part, this Warrant must be exercised for a number of whole shares of the Common Stock, and the Holder is entitled to receive a
new Warrant covering the Warrant Shares which have not been exercised and setting forth the proportionate part of the Aggregate Warrant Price applicable to such Warrant Shares. Upon such surrender of this Warrant, the Company will (a) issue a
certificate or certificates in the name of the Holder for the largest number of whole shares of the Common Stock to which the Holder shall be entitled and, if this Warrant is exercised in whole, in lieu of any fractional share of the Common Stock to
which the Holder shall be entitled, pay to the Holder cash in an amount equal to the fair value of such fractional share (determined in such reasonable manner as the Board of Directors of the Company shall determine), and (b) deliver the other
securities and properties receivable upon the exercise of this Warrant, or the proportionate part thereof if this Warrant is exercised in part, pursuant to the provisions of this Warrant. 
  
 2.  Reservation of Warrant Shares; Listing.    The Company agrees that, prior to the expiration of this Warrant, the Company
will at all times (a) have authorized and in reserve, and will keep available, solely for issuance or delivery upon the exercise of this Warrant, the shares of the Common Stock and other securities and properties as from time to time shall be
receivable upon the exercise of this Warrant, free and clear of all restrictions on sale or transfer and free and clear of all preemptive rights and rights of first refusal and (b) timely file all required reports under the Securities Exchange Act
of 1934, as amended, and the rules and regulations thereunder, during such period. 
  
 3.  Protection
Against Dilution.    (a) In case the Company shall hereafter (i) pay a dividend or make a distribution on its capital stock in shares of Common Stock, (ii) subdivide its outstanding shares of Common Stock into a greater
number of shares, (iii) combine its outstanding shares of Common Stock into a smaller number of shares or (iv) issue by reclassification of its Common Stock any shares of capital stock of the Company, the Per Share Warrant Price shall be adjusted so
that the Holder upon the exercise hereof shall be entitled to receive the number of shares of Common Stock or other capital stock of the Company which he would have owned immediately following such action had such Warrant been exercised immediately
prior thereto. An adjustment made pursuant to this Subsection 3(a) shall become effective immediately after the record date in the case of a dividend or distribution and shall become effective immediately after the effective date in the case of a
subdivision, combination or reclassification. 
  
 (b)  If, at any time or from time to time after the date
of this Warrant, the Company shall issue or distribute to the holders of shares of Common Stock evidences of its indebtedness, any other securities of the Company or any cash, property or other assets (excluding a subdivision, combination or
reclassification, or dividend or distribution payable in shares of Common Stock, referred to in Subsection 3(a), and also excluding cash dividends or cash distributions paid out of net profits legally available therefor if the full amount thereof,
together with the value of other dividends and distributions made substantially concurrently therewith or pursuant to a plan which includes payment thereof, is equivalent to not more than 5% of the Company’s net worth) (any such nonexcluded
event being herein called a “Special Dividend”), the Per Share Warrant Price shall be adjusted by multiplying the Per Share Warrant Price then in effect by a fraction, the numerator of which shall be the then current market price of
the Common Stock (defined as the average for the five consecutive business days immediately prior to the record date of the daily closing price of the Common Stock as reported by the 
 

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 national securities exchange upon which the Common Stock is then listed, or if not listed on any such exchange, the average of the closing
prices as reported by the Nasdaq National Market, or if not then listed on the Nasdaq National Market, the average of the highest reported bid and lowest reported asked prices as reported by the National Association of Securities Dealers, Inc.
Automated Quotations System (“NASDAQ”), or if not then publicly traded, the fair market price per share as determined by the Company’s Board of Directors) less the fair market value (as determined by the Company’s Board of
Directors) of the evidences of indebtedness, cash, securities or property, or other assets issued or distributed in such Special Dividend applicable to one share of Common Stock and the denominator of which shall be such then current market price
per share of Common Stock. An adjustment made pursuant to this Subsection 3(b) shall become effective immediately after the record date of any such Special Dividend. 
  
 (c)  Except as provided in Subsection 3(e), in case the Company shall hereafter issue or sell any shares of Common Stock for a consideration per share less than
the Per Share Warrant Price on the date of such issuance or sale, the Per Share Warrant Price shall be adjusted as of the date of such issuance or sale so that the same shall equal the price determined by dividing (i) the sum of (A) the number of
shares of Common Stock outstanding immediately prior to such issuance or sale multiplied by the Per Share Warrant Price plus (B) the consideration received by the Company upon such issuance or sale by (ii) the total number of shares of Common Stock
outstanding after such issuance or sale. 
  
 (d)  Except as provided in Subsections 3(b) and 3(e), in case
the Company shall hereafter issue or sell any rights, options, warrants or securities convertible into Common Stock entitling the holders thereof to purchase Common Stock or to convert such securities into Common Stock at a price per share
(determined by dividing (i) the total amount, if any, received or receivable by the Company in consideration of the issuance or sale of such rights, options, warrants or convertible securities plus the total consideration, if any, payable to the
Company upon exercise or conversion thereof (the “Total Consideration”) by (ii) the number of additional shares of Common Stock issuable upon exercise or conversion of such securities) less than the then current Per Share Warrant
Price in effect on the date of such issuance or sale, the Per Share Warrant Price shall be adjusted as of the date of such issuance or sale so that the same shall equal the price determined by dividing (i) the sum of (A) the number of shares of
Common Stock outstanding on the date of such issuance or sale multiplied by the Per Share Warrant Price plus (B) the Total Consideration by (ii) the number of shares of Common Stock outstanding on the date of such issuance or sale plus the maximum
number of additional shares of Common Stock issuable upon exercise or conversion of such securities. 
  
 (e)  No adjustment in the Per Share Warrant Price shall be required in the case of (i) the issuance by the Company of options to purchase in the aggregate up to 8,000,000 shares of Common Stock pursuant to the
Company’s 1999 Stock Option Plan in effect on the date hereof, of which options to purchase 4,725,417 shares of Common Stock are currently outstanding, and the issuance by the Company of up to an aggregate of 8,000,000 shares upon the exercise
of such options, (ii) those rights, options, warrants or other securities which are currently outstanding and are exercisable for the purchase of or convertible into Common Stock in the aggregate of up to 11,270,041 shares of Common Stock, other
than pursuant to the Company’s 1999 Stock Option Plan (or the issuance of Common Stock upon the exercise or conversion thereof), (iii) the issuance by the Company of Common Stock, or rights, options, warrants or other securities exercisable for
the purchase of or convertible into Common Stock (or 
 

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 the issuance of Common Stock upon the exercise or conversion thereof) to employees, directors, officers, consultants and/or advisors pursuant to
stock option, stock bonus or stock purchase plans or agreements or similar plans or agreements approved in good faith by a disinterested majority of the Company’s Board of Directors and not issued pursuant to clauses (i) or (ii) above, for an
aggregate of up to 1,000,000 shares, (iv) the issuance by the Company of Common Stock, or of rights, options, warrants or other securities exercisable for the purchase of or convertible into Common Stock (or the issuance of Common Stock upon the
exercise or conversion thereof) pursuant to any merger, consolidation, acquisition or similar business transaction in which the Company is the surviving entity and which is approved in good faith by a disinterested majority of the Company’s
Board of Directors, and (v) the issuance by the Company of Common Stock pursuant to the exercise of any Warrant. The number of shares of Common Stock set forth in this Subsection 3(e) are subject to adjustment in accordance with any anti-dilution
provisions existing on the date hereof under the terms of the instruments governing their issuance. 
  
 (f)  In the case of any capital reorganization or reclassification, or any consolidation or merger to which the Company is a party other than a merger or consolidation in which the Company is the continuing corporation, or
in the case of any sale or conveyance to another entity of the property of the Company as an entirety or substantially as an entirety, or in the case of any statutory exchange of securities with another corporation (including any exchange effected
in connection with a merger of a third corporation into the Company), the Holder of this Warrant shall have the right thereafter to receive on the exercise of this Warrant the kind and amount of securities, cash or other property which the Holder
would have owned or have been entitled to receive immediately after such reorganization, reclassification, consolidation, merger, statutory exchange, sale or conveyance had this Warrant been exercised immediately prior to the effective date of such
reorganization, reclassification, consolidation, merger, statutory exchange, sale or conveyance and in any such case, if necessary, appropriate adjustment shall be made in the application of the provisions set forth in this Section 3 with respect to
the rights and interests thereafter of the Holder of this Warrant to the end that the provisions set forth in this Section 3 shall thereafter correspondingly be made applicable, as nearly as may reasonably be, in relation to any shares of stock or
other securities or property thereafter deliverable on the exercise of this Warrant. The above provisions of this Subsection 3(f) shall similarly apply to successive reorganizations, reclassifications, consolidations, mergers, statutory exchanges,
sales or conveyances. The issuer of any shares of stock or other securities or property thereafter deliverable on the exercise of this Warrant shall be responsible for all of the agreements and obligations of the Company hereunder. Notice of any
such reorganization, reclassification, consolidation, merger, statutory exchange, sale or conveyance and of said provisions so proposed to be made, shall be mailed to the Holders of the Warrants not less than 30 days prior to such event. A sale of
all or substantially all of the assets of the Company for a consideration consisting primarily of securities shall be deemed a consolidation or merger for the foregoing purposes. 
  
 (g)  In case any event shall occur as to which the other provisions of this Section 3 are not strictly applicable but as to which the failure to make any
adjustment would not fairly protect the purchase rights represented by this Warrant in accordance with the essential intent and principles hereof then, in each such case, the Holders of Warrants representing the right to purchase a majority of the
Warrant Shares subject to all outstanding Warrants may appoint a firm of independent public accountants of recognized national standing reasonably acceptable to the 
 

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 Company, which shall give their opinion as to the adjustment, if any, on a basis consistent with the essential intent and principles established
herein, necessary to preserve the purchase rights represented by the Warrants. Upon receipt of such opinion, the Company will promptly mail a copy thereof to the Holder of this Warrant and shall make the adjustments described therein. The fees and
expenses of such independent public accountants shall be borne by the Company. 
  
 (h)  No adjustment in
the Per Share Warrant Price shall be required unless such adjustment would require an increase or decrease of at least $.01 per share of Common Stock; provided, however, that any adjustments which by reason of this Subsection 3(h) are not required
to be made shall be carried forward and taken into account in any subsequent adjustment; provided further, however, that adjustments shall be required and made in accordance with the provisions of this Section 3 (other than this Subsection 3(h)) not
later than such time as may be required in order to preserve the tax-free nature of a distribution to the Holder of this Warrant or Common Stock issuable upon exercise hereof. All calculations under this Section 3 shall be made to the nearest cent
or to the nearest 1/l00th of a share, as the case may be. Anything in this Section 3 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the Per Share Warrant Price, in addition to those required by this Section
3, as it in its discretion shall deem to be advisable in order that any stock dividend, subdivision of shares or distribution of rights to purchase stock or securities convertible or exchangeable for stock hereafter made by the Company to its
stockholders shall not be taxable. 
  
 (i)  Whenever the Per Share Warrant Price is adjusted as provided in
this Section 3 and upon any modification of the rights of a Holder of Warrants in accordance with this Section 3, the Company shall promptly obtain, at its expense, a certificate of a firm of independent public accountants of recognized standing
selected by the Board of Directors (who may be the regular auditors of the Company) setting forth the Per Share Warrant Price and the number of Warrant Shares after such adjustment or the effect of such modification, a brief statement of the facts
requiring such adjustment or modification and the manner of computing the same and cause copies of such certificate to be mailed to the Holders of the Warrants. 
  
 (j)  If the Board of Directors of the Company shall (i) declare any dividend or other distribution with respect to the Common Stock, other than a cash dividend subject to the first
parenthetical in Subsection 3(b), (ii) offer to the holders of shares of Common Stock any additional shares of Common Stock, any securities convertible into or exercisable for shares of Common Stock or any rights to subscribe thereto, or (iii)
propose a dissolution, liquidation or winding up of the Company, the Company shall mail notice thereof to the Holders of the Warrants not less than 15 days prior to the record date fixed for determining stockholders entitled to participate in such
dividend, distribution, offer or subscription right or to vote on such dissolution, liquidation or winding up. 
  
 (k)  If, as a result of an adjustment made pursuant to this Section 3, the Holder of any Warrant thereafter surrendered for exercise shall become entitled to receive shares of two or more classes of capital stock or shares
of Common Stock and other capital stock of the Company, the Board of Directors (whose determination shall be conclusive and shall be described in a written notice to the Holder of any Warrant promptly after such adjustment) shall determine the
allocation of the adjusted Per Share Warrant Price between or among shares or such classes of capital stock or shares of Common Stock and other capital stock. 
 

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 4.  Fully Paid Stock; Taxes.    The
Company agrees that the shares of the Common Stock represented by each and every certificate for Warrant Shares delivered on the exercise of this Warrant shall, at the time of such delivery, be validly issued and outstanding, fully paid and
nonassessable, and not subject to preemptive rights or rights of first refusal, and the Company will take all such actions as may be necessary to assure that the par value or stated value, if any, per share of the Common Stock is at all times equal
to or less than the then Per Share Warrant Price. The Company further covenants and agrees that it will pay, when due and payable, any and all Federal and state stamp, original issue or similar taxes which may be payable in respect of the issue of
any Warrant Share or certificate therefor. 
  
 5.  Registration Under Securities Act of
1933. 
  
 This Warrant Shares are entitled to the registration rights contained in the
Registration Rights Agreement of even date herewith, entered into by and between the Company and Ivan Bradbury. 
  
 6.  Limited Transferability; Restrictive Legend.  
  
 (a)  This Warrant and the Warrant Shares may not be sold, transferred, assigned or hypothecated by the Holder except in compliance with the provisions of the Securities Act of 1933, as amended. This Warrant may only be
transferred by the Holder to an affiliate of Holder, provided such transferee is an “accredited investor” as defined in Rule 501(a) of Regulation D promulgated under the Securities Act. The Company may treat the registered Holder of this
Warrant as he or it appears on the Company’s books at any time as the Holder for all purposes. The Company shall permit any Holder of a Warrant or his duly authorized attorney, upon written request during ordinary business hours, to inspect and
copy or make extracts from its books showing the registered holders of Warrants. All Warrants issued upon the transfer or assignment of this Warrant will be dated the same date as this Warrant, and all rights of the Holder thereof shall be identical
to those of the Holder. 
  
 (b)  This Warrant and the Warrant Shares shall be stamped or imprinted with a
legend in substantially the following form (in addition to any legend required by state securities laws): 
  
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE OR FOREIGN SECURITIES LAWS, AND ACCORDINGLY, SUCH SECURITIES MAY NOT BE TRANSFERRED, SOLD
OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE REGISTRATION OR QUALIFICATION PROVISIONS OF APPLICABLE FEDERAL, STATE AND FOREIGN SECURITIES LAWS OR APPLICABLE EXEMPTIONS THEREFROM.” 
  

7.  Loss, etc., of Warrant.    Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant, and of indemnity reasonably satisfactory to the Company, if lost, stolen or destroyed, and upon surrender and cancellation of this Warrant, if mutilated, the Company shall execute and deliver to the Holder a new Warrant
of like date, tenor and denomination. 
 

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 8.  Warrant Holder Not
Shareholder.    Except as otherwise provided herein, this Warrant does not confer upon the Holder any right to vote or to consent to or receive notice as a stockholder of the Company, as such, in
respect of any matters whatsoever, or any other rights or liabilities as a stockholder, prior to the exercise hereof. 
  
 9.  Notices.    All notices and other communications required or permitted to be given under this Warrant must be in writing and will be deemed to have been duly given only if delivered
personally or by facsimile transmission or mailed (first class postage prepaid) to the parties at the following addresses or facsimile numbers: 
  
 a)  if to the Company: 2150 West Washington Street, Suite 110, San Diego, CA 92110, Att.: Chief Executive Officer, facsimile no. 619-226-6738, or such other address as the Company has
designated in writing to the Holder, or 
  
 b)  if to the Holder: c/o Dr. Axel Steudle,
Elsaesser Str. 7 D-75173 Pforzheim, Germany, facsimile no. 011-49-7231-927-963, or such other address or facsimile number as the Holder has designated in writing to the Company. 
  
 10.  Headings.    The headings of this Warrant have been inserted as a matter of convenience and shall not affect the
construction hereof. 
  
 11.  Applicable Law.    This Warrant shall be
governed by and construed in accordance with the law of California without giving effect to the principles of conflicts of law thereof. 
 

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 IN WITNESS WHEREOF, MOBILE PET SYSTEMS, INC. has caused this Warrant to be signed
by its duly authorized officer and its corporate seal to be hereunto affixed and attested by its Secretary this 31st day of July 2002. 
  
 
	 MOBILE PET SYSTEMS, INC.
 
	  
	  
	 By:
 	 	  
 /s/    Paul J. Crowe        

	  	 	 Name: Paul J. Crowe
 Title: President and Chief Executive
Officer
 

 
  
 ATTEST: 
  
  
  
  
 
	 
	  
 /s/    Thomas H.
Insley        
 

	 Thomas H. Insley, Secretary
 

 
 

 8 

 ASSIGNMENT 
  
 FOR VALUE RECEIVED                     hereby sells, assigns and transfers unto
                        the foregoing Warrant and all rights evidenced thereby, and does irrevocably constitute and appoint
                    , attorney, to transfer said Warrant on the books of
                    . 
  
 
	 
	 Dated:
 	 	  
 
	 	  	 	 Signature:
 	 	  
 

	 
	  	 	  	 	  	 	 Address:
 	 	  
 

 
  
  
  
 PARTIAL ASSIGNMENT 
  
 FOR VALUE RECEIVED
                    hereby assigns and transfers unto
                    the right to purchase
                    shares of the Common Stock of
                    covered by the foregoing Warrant, and a proportionate part of said Warrant and the rights evidenced thereby, and does irrevocably
constitute and appoint                     , attorney, to transfer that part of said Warrant on the books of
                    . 
  
 
	 
	 Dated:
 	 	  
 
	 	  	 	 Signature:
 	 	  
 

	 
	  	 	  	 	  	 	 Address:
 	 	  
 

 
 

 9 

 SUBSCRIPTION FORM 
  
 The undersigned hereby irrevocably elects to exercise the right of purchase represented by the within Warrant for, and to purchase thereunder,
                        shares of Common Stock, as provided for in Section 1, and tenders herewith payment of the purchase price
in full in the form of cash or a certified or official bank check in the amount of $                    . 
  
 The undersigned hereby represents and warrants to the Company that the undersigned is an “accredited investor” within the
meaning of Rule 501 of the Securities Act. 
  
 Please issue a certificate or certificates for such Common Stock in
the name of, and pay any cash for any fractional share to: 
  
 
	 Name:
 	 	  
 

	 (Please Print Name, Address and Social Security No.)
 
	  	 	  
	 Address
 	 	  
 

	  	 	  
	  	 	  
 

	  	 	  
	 Social
 	 	  
 

	 Security Number
 
	  	 	  
	  	 	  
	 Signature
 	 	  
 

	  	 	  
	  	 	  
	 NOTE:     The above signature should correspond exactly with the name on the
first page of this Warrant or with the name of the assignee appearing in the assignment form below.
 
	  	 	  
	  	 	  
	 Date
 	 	  
 

 
  
  
 And if said number of
shares shall not be all the shares purchasable under the within Warrant, a new Warrant is to be issued in the name of said undersigned for the balance remaining of the shares purchasable thereunder. 
 

 10Prepared by R.R. Donnelley Financial -- Registration Rights Agreement

 EXHIBIT 10.41 
  
 MOBILE PET SYSTEMS, INC. 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 July 31, 2002 

  
 TABLE OF CONTENTS 
  
 
	 1.
 	  	 DEFINITIONS
 	  	 1
 
	 2.
 	  	 DEMAND REGISTRATIONS
 	  	 2
 
	 2.1.
 	  	 Requests for Registration
 	  	 2
 
	 2.2.
 	  	 Limitations on Demand Registrations
 	  	 3
 
	 2.3.
 	  	 Effective Registration Statement
 	  	 3
 
	 2.4.
 	  	 Priority on Demand Registrations
 	  	 4
 
	 2.5.
 	  	 Underwriting Requirements
 	  	 4
 
	 2.6.
 	  	 Multiple Registrations
 	  	 4
 
	 3.
 	  	 OTHER REGISTRATIONS
 	  	 4
 
	 3.1.
 	  	 Company Registration
 	  	 4
 
	 3.2.
 	  	 Form S-3 Registration
 	  	 5
 
	 4.
 	  	 OBLIGATIONS OF THE COMPANY
 	  	 6
 
	 5.
 	  	 COVENANTS OF THE Holder
 	  	 8
 
	 6.
 	  	 EXPENSES OF DEMAND AND S-3 REGISTRATION
 	  	 8
 
	 7.
 	  	 EXPENSES OF COMPANY REGISTRATION
 	  	 9
 
	 8.
 	  	 No Delay of Registration
 	  	 9
 
	 9.
 	  	 Indemnification
 	  	 9
 
	 10.
 	  	 REQUIRED REPORTS AND PUBLIC INFORMATION
 	  	 12
 
	 11.
 	  	 Assignment of Registration Rights
 	  	 12
 
	 12.
 	  	 Limitations on Subsequent Registration Rights
 	  	 13
 
	 12.1.
 	  	 Termination of Registration Rights
 	  	 13
 
	 13.
 	  	 MISCELLANEOUS
 	  	 13
 
	 13.1.
 	  	 Further Assurances
 	  	 13
 
	 13.2.
 	  	 Aggregation of Stock
 	  	 13
 
	 13.3.
 	  	 Construction and Titles
 	  	 13
 
	 13.4.
 	  	 Severability
 	  	 13
 
	 13.5.
 	  	 Notices
 	  	 14
 
	 13.6.
 	  	 Successors and Assigns
 	  	 15
 
	 13.7.
 	  	 Amendment
 	  	 15
 
	 13.8.
 	  	 Delays or Omissions
 	  	 16
 
	 13.9.
 	  	 Governing Law
 	  	 16
 
	 13.10.
 	  	 Attorney’s Fees
 	  	 16
 
	 13.11.
 	  	 Counterparts
 	  	 16
 
	 13.12.
 	  	 Entire Agreement
 	  	 16
 

 

  
 MOBILE PET SYSTEMS, INC. 
  

REGISTRATION RIGHTS AGREEMENT 
  
 This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of July 31, 2002 by and between Mobile PET Systems, Inc., a Delaware corporation (the “Company”), and Bernd Steudle (the
“Investor”). Capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed thereto in Section 1. 
  
 RECITALS 
  
  WHEREAS, the Company, and the Investor have entered into that
certain Stock Purchase Agreement of even date herewith (the “Purchase Agreement”), pursuant to which the Investor is purchasing an aggregate of 1,250,000 shares of the Company’s common stock, par value $0.0001 per share (the
“Common Stock”) and warrants to purchase up to an additional 375,000 shares of Common Stock, subject to adjustment pursuant to the terms thereof, at an exercise price of $0.4480 per share (the “Warrants”); and

  
 WHEREAS, Investor has directed that the Common Stock and Warrants be issued to Bank J. Vontobel & Son,
AG; and 
  
 WHEREAS, it is a condition to the consummation of the transactions contemplated by that
certain Securities Purchase Agreement by and between the Company, Ivan Bradbury and Integrated Healthcare Management S.A. for the purchase of an aggregate of 10,000,000 shares of the Company’s commons tock, par value $0.001 per share, and
warrants to purchase up to an additional 3,000,000 shares of the Company’s common stock that the Company and the Investor enter into the transactions contemplated by the first Whereas clause of this Agreement; and 
  
 WHEREAS, as a condition of the Purchase Agreement the Company shall grant, and the Investor shall obtain, the rights relating to
the registration of the Registrable Securities under the Act, as set forth in this Agreement; 
  
 NOW,
THEREFORE, the parties hereby agree as follows: 
  
 1.  DEFINITIONS.    For purposes of this Agreement: 
  
 (i)  The term “Act” shall mean the Securities Act of 1933, as amended, or any similar successor federal statute, and the rules and regulations thereunder, all as the same
shall be in effect from time to time. 
  
 (ii)  The term “Business Day”
shall mean a day other than Saturday, Sunday or any day on which banks in the State of New York are authorized or obligated to close. 
  
 (iii)  The term “Demand Registrations” shall have the meaning set forth in Section 2.1 hereof. 
 

 1 

  
 (iv)  The term “Form S-3” shall mean
such form under the Act as in effect on the date hereof or any successor registration form under the Act subsequently adopted by the SEC which permits inclusion or incorporation of substantial information by reference to other documents filed by the
Company with the SEC. 
  
 (v)  The term “Holder” or
“Holders” shall mean any person owning or having the right to acquire Registrable Securities or any assignee thereof in accordance with Section 11. 
  
 (vi)  The term “Investor” shall have the meaning set forth in the first paragraph hereof. 
  
 (vii)  The term “1934 Act” shall mean the Securities Exchange Act of 1934, as amended, or any
similar successor federal statute, and the rules and regulations thereunder, all as the same shall be in effect from time to time. 
  
 (viii)  The term “Person” shall mean any individual, corporation, partnership, association, trust or other entity or organization, including a government or political
subdivision or an agency or instrumentality thereof. 
  
 (ix)  The terms
“register,” “registered,” and “registration” shall mean and refer to a registration effected by preparing and filing a registration statement, or similar document in compliance with the Act, and the
declaration or ordering of effectiveness of such registration statement or document. 
  
 (x)  The term “Registrable Securities” shall mean (i) any shares of Common Stock purchased by the Investor pursuant to the Purchase Agreement, (ii) any shares of Common Stock issued or issuable upon
exercise of the Warrants purchased by the Investor pursuant to the Purchase Agreement and (iii) any securities issued or issuable with respect to the Common Stock referred to in clause (i) or (ii) by way of stock dividend or stock split or in
connection with a combination of shares, recapitalization, merger, consolidation or other reorganization or otherwise. As to any particular Registrable Securities, such securities will cease to be Registrable Securities when they have (x) been
effectively registered under the 1934 Act and disposed of in accordance with the registration statement covering them or (y) been transferred pursuant to Rule 144 (or any similar rule then in force) under the Securities Act. 
  
 (xi)  The number of shares of “Registrable Securities then outstanding” shall be the number of
shares of Common Stock outstanding plus the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities which are Registrable Securities. 
  
 (xii)  The term “SEC” shall mean the Securities and Exchange Commission. 
  

2.  DEMAND REGISTRATIONS.  
  
 (a)  Requests for Registration.    Subject to Section 2.2, at any time and from time to time on or after the date hereof, the Holders of at least 25% of the
Registrable Securities then outstanding may request registration under the Act of all or part of their Registrable Securities on 
 

 2 

 Form S-1 or any similar long-form registration (“Demand Registrations”). Thereafter, the Company will use its commercially
reasonable best efforts to promptly effect the registration of such Registrable Securities under the Act on the form requested by the Holders making such registration request. Upon receipt of a request for a Demand Registration, the Company will
give prompt written notice (in any event within three (3) Business Days after its receipt of such request) of the request for a Demand Registration to all Holders of Registrable Securities not making such request and will include in such Demand
Registration all Registrable Securities with respect to which the Company has received written requests for inclusion therein within ten (10) days after the receipt of the Company’s notice. The Holders of the Registrable Securities making any
such registration request may, at any time prior to the effective date of the registration statement relating to any Demand Registration, revoke such Demand Registration request by providing written notice to the Company. 
  
 (b)  Limitations on Demand Registrations.    (i) The Holders of the Registrable Securities shall be
entitled to two Demand Registrations. 
  
 (ii)  The Company shall be entitled to postpone
for a reasonable period of time, not to exceed sixty (60) days, the declaration of effectiveness by the SEC of any Demand Registration otherwise required to be prepared and filed by the Company if, at the time it receives a Demand Registration
request or at any time during the process of registration, prior to being declared effective by the SEC, the Company shall furnish to the Holders a certificate signed by the Chief Executive Officer of the Company stating that, in the good faith
judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such Demand Registration to be effected at such time. The Company shall be entitled to postpone filing of a Demand
Registration as provided in Section 4(a) below, provided, however, that the Company shall not be entitled to postpone filing a registration statement in response to a Demand Registration for the twelve (12) months following the expiration of
such sixty-day period; and provided further that should the Company postpone the filing of a Registration Statement pursuant to Section 4(a) hereof, the Company shall not be entitled to postpone effectiveness of such Registration Statement
pursuant to this Section 2.2(a). In the event the effectiveness of any registration statement is postponed pursuant to this paragraph, the holder or holders of the Registrable Securities making a registration request shall have the right to withdraw
such Demand Registration request by giving written notice to the Company within twenty (20) days after receipt of the notice of postponement (and, in the event of such withdrawal, the right of the holders of the Registrable Securities to such Demand
Registration shall be reinstated). 
  
 (c)  Effective Registration
Statement.    (i) A Demand Registration requested pursuant to Section 2.1 of this Agreement shall not be deemed to have been effected (i) unless a registration statement with respect thereto has become effective, (ii) if
after it has become effective, such registration is interfered with by any stop order, injunction or other order or requirement of the SEC or other governmental agency or court for any reason, and the Registrable Securities covered thereby have not
been sold, or (iii) if the conditions to closing specified in the purchase agreement or underwriting agreement entered into in connection with such registration are not satisfied by reason of (x) a failure by or inability of the Company to satisfy
any condition thereof, or (y) the occurrence of an event outside the control of the Holders of Registrable Securities. 
 

 3 

  
 (iii)  A Demand Registration requested pursuant to
Section 2.1 of this Agreement shall not be deemed to have been effected if Holders of Registrable Securities are not able to register and sell at least 66-2/3% of the amount of Registrable Securities requested to be included in such registration.

  
 (d)  Priority on Demand Registrations.    The Company will not include in
any Demand Registration any securities which are not Registrable Securities without the written consent of the Holders, not to be unreasonably withheld or delayed; provided, however, that the Company shall be entitled to include in any Demand
Registration the securities identified in Exhibit A hereto, the holders of which possess registration rights as set forth therein. 
  
 (e)  Underwriting Requirements.    If the Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as
a part of their request made pursuant to Section 2.1 and the Company shall include such information in the written notice referred to in Section 2.1. The underwriter shall be selected by a majority in interest of the Holders and shall be reasonably
acceptable to the Company. In such event, the right of any Holder to include its Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s
Registrable Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the Holders, including such Holder) to the extent provided herein. All Holders and other holders of securities of the Company proposing to
distribute their securities through such underwriting shall (together with the Company as provided in Section 4(e)) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting.
Notwithstanding any other provision of this Section 2.5, if the underwriter advises the Company that marketing factors require a limitation of the number of securities to be underwritten (including Registrable Securities) then the Company shall so
advise all Holders of Registrable Securities which would otherwise be underwritten pursuant hereto, and the number of shares that may be included in the underwriting shall be allocated among all Holders thereof in proportion (as nearly as practical)
to the amount of Registrable Securities owned by each Holder; provided that the number of Registrable Securities to be included in such underwriting shall not be reduced unless all other securities sought to be included by the Company and held by
all other holders are first entirely excluded from such underwriting. 
  
 (f)  Multiple
Registrations.    Except for (a) registration statements solely for the sale of securities to participants in a Company stock or option plan or arrangement, (b) registrations relating to corporate reorganizations or other
transactions under Rule 145 of the Act, and (c) registration statements filed by the Company at the request of Person(s) that possess the registration rights identified in Exhibit A hereto, the Company will not, without the written consent of
the Holders, file any other registration statement under the Act with respect to its securities, whether for its own account or that of other stockholders, from the date of receipt of a notice from requesting Holders pursuant to Section 2.1 until
the completion of the period of distribution of the registration contemplated thereby. 
 

 4 

  
 3.  OTHER REGISTRATIONS.  
  
 (a)  Company Registration.  
  
 (i)  Notice.    If the Company proposes to register (including for this purpose a registration effected by the
Company for stockholders other than the Holders) any of its stock or other securities under the Act in connection with the public offering of such securities (other than a registration relating solely to the sale of securities to participants in a
Company stock or option plan or arrangement or a registration relating to a corporate reorganization or other transaction under Rule 145 of the Act), the Company shall, at such time, promptly give each Holder written notice of such registration.
Upon the written request of each Holder given within 20 days after mailing of such notice by the Company, the Company shall, subject to the provisions of Section 3.1(b), cause to be registered under the Act all of the Registrable Securities that
each such Holder has requested to be registered. 
  
 (ii)  Underwriting
Requirements.    In connection with any offering involving an underwriting of shares of the Company’s capital stock, the Company shall not be required under this Section 3.1 to include any of the Holders’
securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the Company and the underwriters selected by it (or by other persons entitled to select the underwriters) and enter into an underwriting
agreement in customary form with such underwriters, and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company. If the total amount of Registrable Securities
requested by Holders to be included in such offering exceeds the amount of securities sold other than by the Company that the underwriters determine in their sole discretion is compatible with the success of the offering in view of market
conditions, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, that the underwriters determine in their sole discretion will not jeopardize the success of the offering
(the securities so included to be apportioned pro rata among the selling stockholders, including the Holders, according to the total amount of securities entitled to be included therein owned by each selling stockholder or in such other proportions
as shall mutually be agreed to by such selling stockholders). 
  
 (b)  Form S-3
Registration.    In case the Company is at the time eligible for the use of Form S-3, and shall receive from the Holders a written request or requests that the Company effect a registration on Form S-3 and any related
qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holders, the Company shall: 
  
 (i)  Notice.    Promptly give written notice of the proposed registration, and any related qualification or compliance, to all other Holders. 

 
 (ii)  Qualifications.    As soon as practicable, effect such
registration and all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holder’s or Holders’ Registrable Securities as are specified in such
request, together with all or such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request given within 20 days after receipt of such written notice from the Company;
provided that the 
 

 5 

 Company shall not be obligated to effect any such registration, qualification or compliance, pursuant to this Section
3.2: 
  
 a)  if Form S-3 is not available for such offering by the Holders; 

 
 b)  if the Company shall furnish to the Holders a certificate signed by the Chief Executive Officer
of the Company stating that, in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such Form S-3 registration to be effected at such time, in which event the
Company shall have the right to defer the filing of the Form S-3 registration statement for a period of not more than 30 days after receipt of the request of the Holder or Holders under this Section 3.2; provided that the Company shall not utilize
this right more than once in any twelve (12) month period. 
  
 c)  if the Company has,
within the 12 month period preceding the date of such request, already effected one registration on Form S-3 for the Holders pursuant to this Section 3.2; 
  
 d)  in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of
process in effecting such registration, qualification or compliance, unless the Company is already subject to service in such jurisdiction; or 
  
 e)  within 180 days after the effective date of a registration statement previously filed by the Company, provided that the Company shall use its reasonable best efforts to achieve
effectiveness of a registration requested hereunder promptly following such 180-day period if such request is made during such 180-day period. 
  
 (iii)  Registration.    Subject to the foregoing, the Company shall file a registration statement covering the Registrable Securities and other securities so
requested to be registered as soon as is reasonably practicable after receipt of the request or requests of the Holders. Registrations effected pursuant to this Section 3.2 shall not be counted as requests for registration effected pursuant to
Section 2.1. 
  
 4.  OBLIGATIONS OF THE COMPANY.    Whenever
required under Sections 2 or 3 hereof to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible: 
  
 (i)  Registration Statement.    Prepare and file with the SEC as expeditiously as possible and, in the case of a
Demand Registration, within 30 days of receiving 
 

 6 

 a request under Section 2, a registration statement with respect to such Registrable Securities and use its best efforts
to cause such registration statement to become effective as quickly as possible, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to
180 days or until the distribution contemplated in the Registration Statement has been completed, whichever is shorter; provided that such 180-day period shall be extended for a period equal to the period the Holders refrain from selling any
securities included in such registration (i) at the request of an underwriter of Common Stock (or other securities) of the Company or (ii) as a result of the provisions of Section 5(b). Notwithstanding the preceding sentence, the Company shall be
entitled to postpone for a reasonable period of time, not to exceed sixty (60) days, the filing of the Registration Statement with respect to the Registrable Securities, at the time it receives a Demand Registration request or at any time prior to
the Registration Statement being filed with the SEC, the Company shall furnish to the Holders a certificate signed by the Chief Executive Officer of the Company stating that, in the good faith judgment of the Board of Directors of the Company, it
would be seriously detrimental to the Company and its stockholders for such registration statement to be filed at such time; provided, however, that the Company shall not be entitled to postpone filing a registration statement hereunder for
the twelve (12) months following the expiration of such sixty-day period; and provided further that should the Company postpone the filing of a Registration Statement pursuant to this Section 4(a), the Company shall not be entitled to
postpone effectiveness of such Registration Statement pursuant to Section 2.2(b). 
  
 (ii)  Amendments.    Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as
may be necessary to keep such registration statement effective for a period not in excess of 180 days and to comply with the provisions of the Act with respect to the disposition of all securities covered by such registration statement.

  
 (iii)  Prospectus.    Furnish to the Holders such
numbers of copies of a prospectus, including a prospectus subject to completion and all amendments and supplements thereto, in conformity with the requirements of the Act, and such other documents as they may reasonably request in order to
facilitate the disposition of Registrable Securities owned by them. 
  
 (iv)  Blue
Sky Qualifications.    Use its commercially reasonable best efforts to register and qualify the securities covered by such registration statement under such other securities or blue sky laws of such jurisdictions as shall
be reasonably requested by the Holders; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or
jurisdictions. 
  
 (v)  Underwriting Agreement.    In the
event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering. 
  

(vi)  Disclosures.    Notify each Holder of Registrable Securities covered by such registration statement
(i) at any time when a prospectus relating thereto is required to be delivered under the Act or (ii) of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue
statement of a 
 

 7 

 material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein
not misleading in the light of the circumstances then existing. 
  
 (vii)  Listing.    Cause all such Registrable Securities registered pursuant to this Agreement to be listed on each securities exchange or quotation service, if any, on which similar
securities issued by the Company are then listed. 
  
 (viii)  Transfer
Agent.    Provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and a CUSIP number for all such Registrable Securities, in each case not later than the effective date
of such registration. 
  
 (ix)  Additional
Deliveries.    Furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to Sections 2 or 3 hereof, on the date that such Registrable Securities are delivered to the underwriters for
sale in connection with a registration pursuant to such sections, if such securities are being sold through underwriters, or on the effective date of the registration statement, if there are no underwriters, (1) an opinion, dated such date, of the
counsel representing the Company for the purposes of such registration, in substantially the form as is customarily given to the underwriters in a public offering, addressed to the underwriters, if any, and to the Holders requesting registration of
Registrable Securities and (2) a “comfort” letter, dated such date, from the independent certified public accountants of the Company, in substantially the form as is customarily given by independent certified public accountants to
underwriters in a public offering, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities. 
  
 (x)  Access to Information.    Provide one representative of the Holders of a majority of the Registrable Securities being sold, any underwriter
participating in any distribution pursuant to such registration statement, and any attorney, accountant or other agent retained by such Holders or underwriter, reasonable access to all financial and other records, pertinent corporate documents and
properties of the Company, and cause the Company’s officers, directors and employees to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with such registration statement.

  
 5.  COVENANTS OF THE HOLDER.    (i) It shall be a condition
precedent to the obligations of the Company to take any action pursuant to Sections 2 and 3 hereof with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of such securities as shall be required to effect the registration of such Holder’s Registrable Securities. 
  
 (ii)  Upon receipt by a Holder of the notification from the Company described in Section 4(f)(ii), such Holder will not proceed with any sales of
Registrable Securities covered by the prospectus described in such notification pending an amendment or supplement to such prospectus, which amendment or supplement will be filed by the Company with the SEC as quickly as possible. 

 
 6.  EXPENSES OF DEMAND AND S-3 REGISTRATION.    All expenses other than
underwriting discounts and selling commissions incurred in connection with registrations, filings or qualifications pursuant to Sections 2.1 and 3.2, including, without limitation, all registration, 
 

 8 

 filing and qualification fees, state blue sky fees and expenses, printers’ and accounting fees, fees and disbursements of counsel for the
Company and the reasonable fees and disbursements of one counsel for the selling Holders selected by them shall be borne by the Company; provided that the Company shall not be required to pay for the fees and disbursements of Holders’ counsel
in connection with any registration proceeding begun pursuant to Section 2.1 if the registration request is subsequently withdrawn at the request of the Holders (in which case all participating Holders shall bear such expenses), unless, (i) the
registration is withdrawn following any deferral of the registration by the Company pursuant to Section 2.2(b); (ii) the Holders of a majority of the Registrable Securities agree to forfeit their right to one Demand Registration; or (iii) that if at
the time of such withdrawal the Holders have learned of a material adverse change in the business, condition or prospects of the Company that was not known to the Holders at the time of their initial request and have withdrawn the request with
reasonable promptness following disclosure by the Company of such change, then the Holders shall not be required to pay any such expenses and shall retain their rights to such registration (except as to clause (ii) above) pursuant to Section 2.1.

  
 7.  EXPENSES OF COMPANY REGISTRATION.    The Company shall
bear and pay all expenses incurred in connection with any registration, filing or qualification of Registrable Securities with respect to the registrations pursuant to Section 3.1 for each Holder (which right may be assigned as provided in Section
11), including (without limitation) all registration, filing, and qualification fees, state blue sky fees and expenses, printers and accounting fees relating or apportionable thereto and the reasonable fees and disbursements of counsel for the
Company and one counsel for the selling Holders selected by them, but excluding underwriting discounts and selling commissions relating to Registrable Securities; provided that the Company shall not be required to pay for the fees and disbursements
of Holders’ counsel in connection with any registration proceeding begun pursuant to Section 3.1 if a majority of the selling Holders withdraw their Registrable Securities from such registration (in which case all participating Holders shall
bear such expenses), unless at the time of such withdrawal the Holders have learned of a material adverse change in the business, condition or prospects of the Company that was not known to the Holders at the time of their initial receipt of notice
from the Company pursuant to Section 3.1 and have withdrawn the request with reasonable promptness following disclosure by the Company of such change, then the Holders shall not be required to pay any such expenses. 
  
 8.  NO DELAY OF REGISTRATION.    No Holder shall have any right to obtain or seek an
injunction restraining or otherwise delaying any registration as the result of any controversy that might arise with respect to the interpretation or implementation of Sections 2 or 3 hereof. 
  

9.  INDEMNIFICATION.    In the event any Registrable Securities are included in a registration statement pursuant to this
Agreement: 
  
 (i)  Indemnification by Company.    To the
extent permitted by law, the Company will indemnify and hold harmless each Holder, the officers, directors, partners, members and stockholders of each Holder, legal counsel and accountants for each Holder, any underwriter (as defined in the Act) for
such Holder and each Person, if any, who controls such Holder or underwriter within the meaning of the Act or the 1934 Act, against any losses, claims, damages or liabilities (joint or several) to which they may become subject under the Act, the

 

 9 

  
 1934 Act or other federal or state securities laws, insofar as such losses,
claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”): (i) any untrue statement or alleged untrue
statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, any offering circular or other related registration statement
or notification incident to any such registration, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged
violation by the Company of the Act, the 1934 Act, any state securities laws or any rule or regulation promulgated under the Act, the 1934 Act or any state securities laws; and the Company will pay, as incurred (subject to submission of supporting
documentation in reasonable detail), to each such Holder, the officers, directors, partners, members and stockholders of such Holder, legal counsel (which shall be one counsel for all such Holders absent a bona fide conflict of interest) and
accountants for each such Holder and each underwriter or controlling person, any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided that the
indemnity agreement contained in this Section 9(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be
unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation that occurs in reliance upon and in conformity with
written information furnished expressly for use in connection with such registration by any such Holder, underwriter or controlling person; provided further, however, that the foregoing indemnity agreement with respect to any preliminary prospectus
shall not inure to the benefit of any Holder or underwriter, or any person controlling such Holder or underwriter, from whom the person asserting any such losses, claims, damages or liabilities purchased shares in the offering, if a copy of the
prospectus (as then amended or supplemented if the Company shall have furnished any amendments or supplements thereto) was not sent or given by or on behalf of such Holder or underwriter to such person, if required by law to have been so delivered,
at or prior to the written confirmation of the sale of the shares to such person, and if the prospectus (as so amended or supplemented) would have cured the defect giving rise to such loss, claim, damage or liability. 
  
 (ii)  Indemnification by Holders.    To the extent permitted by law, each
selling Holder will indemnify and hold harmless the Company, each of its directors, each of its officers who has signed the registration statement, each Person, if any, who controls the Company within the meaning of the Act, legal counsel and
accountants for the Company, any underwriter, any other Holder selling securities in such registration statement and the officers, directors, partners, members and stockholders of such Holder and any controlling person of any such underwriter or
other Holder, severally and not jointly, against any losses, claims, damages or liabilities (joint or several) to which any of the foregoing persons may become subject, under the Act, the 1934 Act or other federal or state securities law, insofar as
such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written
information furnished by such Holder expressly for use in connection with such registration; and each such Holder will pay, as incurred, any legal or other expenses reasonably incurred by any such person intended to be indemnified pursuant to this
Section 9(b) 
 

 10 

  
 in connection with investigating or defending any such loss, claim, damage,
liability or action; provided that the indemnity agreement contained in this subsection 9(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the
Holder (which consent shall not be unreasonably withheld); provided further that the liability of each Holder hereunder shall be limited to the proportion of such loss, claim, damage, liability or expense which is equal to the proportion that the
public offering price of the shares sold by such Holder under such registration statement bears to the total public offering price of all securities sold thereunder and, in no event shall any indemnity under this subsection 9(b) exceed the net
proceeds from the offering received by such Holder. 
  
 (iii)  Procedures.    Promptly after receipt by an indemnified party under this Section 9 of notice of the commencement of any action (including any governmental action), such indemnified
party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 9, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided that an indemnified party
(together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such
indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure
to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the indemnified party under this Section 9 except to the extent that
the indemnifying party is actually prejudiced by such failure to give notice. 
  
 (iv)  Contribution.    If the indemnification provided for in this Section 9 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss,
liability, claim, damage or expense referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss,
liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted
in such loss, liability, claim, damage or expense, as well as any other relevant equitable considerations; provided that in no event shall any Holder’s cumulative, aggregate liability under this Section 9(d), or under Section 9(b), or under
such Sections together, exceed the net proceeds from the offering received by such Holder. Notwithstanding anything to the contrary herein, no party shall be liable for contribution under this Section 9(d) except to the extent and under the
circumstances as such party would have been liable to indemnify under Section 9(a) or Section 9(b), as the case may be, if such indemnification were enforceable under applicable law. The relative fault of the indemnifying party and of the
indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the
indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. In any event, no person or entity guilty of fraudulent misrepresentation (within the meaning
of Section 
 

 11 

  
 11(f) of the Act) will be entitled to contribution from any person or entity who
was not guilty of such fraudulent misrepresentation. 
  
 (v)  Conflicts with
Underwriting Agreement.    Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten
public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control. 
  
 (vi)  Survival.    The obligations of the Company and Holders under this Section 9 shall survive the completion of any offering of Registrable Securities in a registration
statement under this Agreement, and otherwise. 
  
 10.    REQUIRED REPORTS AND PUBLIC INFORMATION.  
  
 The Company covenants that it will file the reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder (or, if the Company is not required to file such
reports, it will, upon the request of any holder of Registrable Securities, make publicly available other information), and it will take such further action as any holder of Registrable Securities may reasonably request, all to the extent required
from time to time to enable such holder to sell shares of Registrable Securities without registration under the Securities Act within the limitation of the exemption provided by (i) Rule 144 or Rule 144A under the Securities Act, as such Rules may
be amended from time to time, or (ii) any similar rule or regulation hereafter adopted by the SEC. Upon the request of any holder of Registrable Securities, the Company will deliver to such holder a written statement as to whether it has complied
with such requirements. 
  
 11.    ASSIGNMENT OF REGISTRATION
RIGHTS.    The rights to cause the Company to register Registrable Securities pursuant to this Agreement may be assigned (but only with all related obligations) by a Holder to a transferee or assignee of such
securities that (i) is an “accredited investor” as defined in Rule 501(a) of Regulation D promulgated under the Securities Act, and (ii) that (A) is a subsidiary, parent, affiliate (as that term is defined in Rule 405 promulgated by the
SEC under the Act and which term shall be deemed to include BANK or any affiliate of BANK), partner, limited partner, retired partner or stockholder of a Holder, (B) is a Holder’s family member or trust for the benefit of an individual Holder
or, (C) is a Holder, provided that: (a) the Company is, within 30 days prior to such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are
being assigned; and (b) such assignment shall be effective only if immediately following such transfer the further disposition of such securities by the transferee or assignee is restricted under the Act. For the purposes of determining the number
of shares of Registrable Securities held by a transferee or assignee of a holder of Registrable Securities (x) the holdings of affiliated partnerships, limited liability companies, investment funds and other entities, and their current or former
constituent partners or members and any entities for which any such party serves as general partner, and (y) the holdings of spouses, ancestors, lineal descendants and siblings who acquire Registrable Securities by gift, will or intestate
succession, shall in each case be aggregated together. 
 

 12 

  
 12.    LIMITATIONS ON SUBSEQUENT REGISTRATION
RIGHTS.    From and after the date of this Agreement, the Company shall not, without the prior written consent of the Holders of a majority of the Registrable Securities, not to be unreasonably withheld or
delayed, enter into any agreement with any holder or prospective holder of any securities of the Company that would (i) allow such holder or prospective holder to include such securities in any registration filed under Section 2.1 hereof, unless
under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that the inclusion of such securities will not reduce the amount of the Registrable Securities of the
Holders that are included, (ii) allow such holder or prospective holder to demand registration of their securities, or (iii) provide such holder or prospective holder with registration rights pursuant to Section 3 hereof which are more favorable
than, or in any way conflict with, the rights of Holders hereunder; provided, that the preceding provisions of this Section 12 shall not apply to registration rights, if any, granted by the Company in connection with the repurchase transaction
contemplated by Section 5.01(c) of the Purchase Agreement. 
  
 (a)  Termination of Registration
Rights.    The right of a Holder to request any registration or inclusion pursuant to this Agreement shall terminate, as to any Holder, at such time when all Registrable Securities held by such Holder (and any affiliate of
the Holder with whom such Holder must aggregate its sales under Rule 144) can be sold in any three-month period without registration pursuant to Rule 144 of the Act; provided that at such time the Company’s Common Stock is traded on the OTC
Bulletin Board, the NASDAQ National Market or a national securities exchange. 
  
 13.    MISCELLANEOUS.  
  
 (a)  Further
Assurances.    Each of the parties hereto shall execute and deliver such instruments and take such other actions as the other parties may reasonably request in order to carry out the intent of this Agreement. 

 
 (b)  Aggregation of Stock.    All shares of capital stock held or acquired by affiliated
entities or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement. 
  
 (c)  Construction and Titles.    This Agreement has been negotiated between the parties hereto, and the language hereof shall not be construed for or against any party. The titles and
subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. A reference herein to any section shall be deemed to include a reference to every subsection thereof. All
pronouns contained herein, and any variations thereof, shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as to the identity of the parties hereto may require. 
  

(d)  Severability.    If any provision of this Agreement is held to be unenforceable under applicable law, it shall be
interpreted, to the extent possible, to enhance its enforceability in order to achieve the intent of the parties to this Agreement. If no reasonable construction would save the provision, the parties agree to renegotiate such provision in good
faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, its invalidity, illegality or unenforceability shall not affect any other provision of this Agreement; rather this Agreement shall
be construed as if such invalid, illegal or unenforceable 
 

 13 

 
provision had never been contained herein; provided that no such severability shall be effective if it materially changes the economic benefit of this Agreement to any party. The invalidity of
any provision of this Agreement as applied to certain circumstances shall not affect the validity or enforceability of such provision as applied to other circumstances or any other provisions of this Agreement. 
  
 (e)  Notices.    All notices, requests and other communications hereunder must be in writing and will
be deemed to have been duly given only if delivered personally or by facsimile transmission or mailed (first class postage prepaid) to the parties at the following addresses or facsimile numbers: 
  

If to the Company, to: 
  
 2150 West Washington Street 
 Suite 110 
 San Diego, California 92110 
 Attention: Chief Executive Officer 
 Fax number: 619-226-6738 
  
 if to the Purchaser, to: 
  
 c/o Dr. Axel Steudle 
 Elsaesser Str. 7 
 D-75173 Pforzheim

 Germany 
 facsimile no.
011-49-7231-927-963 
  
 All such notices, requests and other communications will (i) if delivered personally to the address as provided in
this Section, be deemed given upon delivery, (ii) if delivered by facsimile transmission to the facsimile number as provided in this Section, be deemed given upon receipt, and (iii) if delivered by mail in the manner described above to the address
as provided in this Section, be deemed given upon receipt (in each case regardless of whether such notice, request or other communication is received by any other Person to whom a copy of such notice, request or other communication is to be
delivered pursuant to this Section). Any party from time to time may change its address, facsimile number or other information for the purpose of notices to that party by giving notice specifying such change to the other party hereto. 

 
 (f)  Successors and Assigns.    The terms and conditions of this Agreement shall inure to
the benefit of and be binding upon the respective successors and assigns of the parties (including transferees of any shares of Registrable Securities), except as expressly limited in this Agreement. Nothing in this Agreement, express or implied, is
intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

  
 (g)  Amendment.    Unless otherwise specified in a particular section, any
provision of this Agreement may be amended or the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively) by the written 
 

 14 

 
consent of the Company and the Holders of a majority of the Registrable Securities then outstanding. Any amendment or waiver effected in accordance with this Section 13.7 shall be binding upon
each Holder and the Company; provided that no amendment of this Agreement shall materially and adversely affect the rights of a Holder in a manner that discriminates against a Holder vis a vis other holders of the same class or series of
stock, without such Holder’s written consent. By acceptance of any benefits under this Agreement, all parties to this Agreement hereby agree to be bound by the provisions of this Agreement as the same may be hereafter amended or waived pursuant
to this Section 13.7. 
  
 (h)  Delays or Omissions.    No delay or omission to
exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall
it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or
default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not
alternative. 
  
 (i)  Governing Law.    This Agreement and all acts and
transactions pursuant hereto and the rights and obligations of the parties hereto are to be governed by and construed and enforced in accordance with the laws of California, without giving effect to any of its choice of law rules. Section 7.10 of
the Purchase Agreement is incorporated by reference herein and made applicable hereto. 
  
 (j)  Attorney’s Fees.    If any action at law or in equity is instituted to enforce or interpret the terms of the Agreements, the prevailing party shall be entitled to reasonable
attorney’s fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 
  
 (k)  Counterparts.    This Agreement may be executed in two or more counterparts, including by facsimile, each of which shall be deemed an original and all of which together shall constitute one
and the same instrument. 
  
 (l)  Entire Agreement.    This Agreement, and the
documents referred to herein constitute the entire agreement between the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements relating to the subject matter hereof existing between the parties
hereto are expressly canceled. 
 

 15 

  
 The parties have executed this Registration Rights Agreement as of the date first
written above by the undersigned, who have been duly authorized to do so. 
  
 
	 MOBILE PET SYSTEMS, INC.
 
	 
	 By:
 	 	 /s/    PAUL J.
CROWE        
 

	  	 	 Name: Paul J. Crowe
 Title: Chief Executive Officer and
President
 
	 
	  	 	 /s/    BERND
STEUDLE        
 
Bernd Steudle
 

 
 

 16 

  
 Exhibit A 
 Prior Registration Rights 
 

 17

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