Document:

*Exhibit 10.16

Exhibit 10.16
SECURITY AGREEMENT

This SECOND LIEN SECURITY AGREEMENT (this “Agreement”), dated as of November     , 2012 is entered into by and between AUTOGENOMICS, INC., a Delaware corporation (the “Grantor”) and CITIBANK, N.A., acting through its Citibank Agency & Trust division, as collateral agent (solely in such capacity, together with its successors and assigns, the “Subordinated Notes Collateral Agent”) for the holders (the “Holders”) of the New Notes, as defined below.

W I T N E S S E T H:

WHEREAS, the Grantor has issued unsecured Subordinated Notes due 2011 – 2012 (the “Old Notes”);

WHEREAS, the Old Notes have matured or are scheduled to mature shortly;

WHEREAS, the Grantor has commenced an offer (the “Exchange Offer”) to issue new secured notes (the “New Notes”) in exchange for the Old Notes;

WHEREAS, the Grantor is granting, contemporaneously herewith, a security interest in the Collateral to the Senior Secured Lender to secure Existing Senior Indebtedness;

WHEREAS, it is a condition to the issuance of the New Notes that the Grantor grant to the Subordinated Notes Collateral Agent for the ratable benefit of the Holders, a security interest in the Collateral on the terms and conditions set forth herein;
NOW, THEREFORE, for and in consideration of the recitals made above and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Defined Terms. All capitalized terms used herein (including in the preamble and recitals hereof) without definition shall have the respective meanings ascribed thereto in the New Notes. Any terms used in this Agreement that are defined in the Code and not otherwise defined herein or in the New Notes shall be construed and defined as set forth in the Code. In addition to those terms defined elsewhere in this Agreement, as used in this Agreement, the following terms shall have the following meanings:

(a) “Code” means the New York Uniform Commercial Code, as in effect from time to time; provided, however, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, priority, or remedies with respect to Subordinated Notes Collateral Agent’s lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of New York, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies.

(b) “Collateral” has the meaning specified therefor in Section 2.

(c) “Insolvency Proceeding” means any proceeding commenced by or against any person or entity under any provision of the United States Bankruptcy Code or any other local, state, provincial or federal bankruptcy or insolvency law, in each case, as applicable and as in effect from time to time, including without limitation assignments for the benefit of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization, recapitalization, arrangement of debt, or other similar relief.

(d) “Note Documents” means the New Notes, this Agreement and any related collateral agreement entered into by the Grantor and the Subordinated Notes Collateral Agent for the ratable benefit of the Holders, and any other agreement entered into by the Grantor and the Holders with respect to the New Notes.

(e) “Secured Obligations” means all of the present and future obligations of Grantor arising from the New Notes, this Agreement and the other Note Documents, including reasonable attorneys’ fees and expenses and any interest, fees, or expenses that accrue after the filing of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any Insolvency Proceeding.

(f) “Security Interest” has the meaning specified therefor in Section 2.

(g) “Senior Secured Lender” means Tregale Group Ltd., together with its successors and assigns.

2. Grant of Security Interest. Grantor hereby unconditionally grants, collaterally assigns, and pledges to the Subordinated Notes Collateral Agent, for the ratable benefit of the Holders to secure the Secured Obligations, a security interest (hereinafter referred to as the “Security Interest”) in all of Grantor’s right, title, and interest in and to the following (the “Collateral”), whether now owned or hereafter acquired or arising and wherever located:

(a) all of Grantor’s Accounts; and

(b) all of the proceeds, products and profits, whether tangible or intangible, of Grantor’s Accounts, and any and all property in any form whatsoever resulting from the sale, collection, or other disposition of the Accounts (collectively, the “Proceeds”).

3. Security for Secured Obligations. The Security Interest created hereby secures, on a second-priority basis, the payment and performance of the Secured Obligations, whether now existing or arising hereafter.

4. Representations and Warranties.

(a) Title. The Grantor has good and valid rights in or the power to transfer the Collateral and title to the Collateral, free and clear of all Liens except for the Lien granted to the Senior Secured Lender and any Liens on the Collateral arising solely by operation of law.

(b) Perfection and Priority. When a UCC financing statement has been filed against the Grantor in the appropriate jurisdiction, the Subordinated Notes Agent will have a valid and continuing perfected security interest in the Collateral in which a security interest may be perfected by filing a financing statement under the UCC, prior to all other Liens on the Collateral except for the Lien of the Senior Secured Lender and any Liens on the Collateral having priority solely by operation of law. In the event that the Subordinated Notes Agent files such a UCC financing statement prior to any filing by the Senior Secured Lender, (i) from and after the date that the Senior Secured Lender files its UCC financing, the Lien created hereby shall be junior in priority to the Senior Secured Lender’s Lien with the same effect as though the Senior Secured Lender’s Lien had been perfected prior to the perfection of the Lien created hereby, and (2) the Subordinated Notes Agent and the Grantor shall, at the Grantor’s expense, take such action as reasonably requested by the Senior Secured Lender to evidence the first priority of the Senior Secured Lender’s Lien.

(c) No Consents. No consent of any other person or entity and no authorization, approval, or other action by, and no notice to or filing with, any governmental authority or regulatory body is required (i) for the granting of a security interest on the Collateral by the Grantor pursuant to this Agreement or for the execution, delivery or performance of this Agreement by the Grantor, (ii) for the perfection or maintenance of the security interest created hereby (including the second priority nature of such security interest), (iii) for the exercise by the Subordinated Notes Collateral Agent of its rights and remedies hereunder, or (iv) for the exercise by any Holder of its rights and remedies hereunder.

(d) No Conditions. There are no conditions precedent to the effectiveness of this Agreement that have not been satisfied or waived.

(e) Organization, Etc. The Grantor is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware.

(f) No Conflicts. The execution, delivery and performance by the Grantor of this Agreement and the transactions contemplated hereby are within the Grantor’s corporate powers, have been duly authorized by all necessary corporate action, and do not (i) contravene the Grantor’s charter or by-laws, (ii) violate any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award applicable to the Grantor or its subsidiaries, or (iii) conflict with or result in the breach of, or constitute a default under, any material contract binding on or affecting the Grantor, any subsidiary of the Grantor or any of their respective properties.

(g) Enforceable Agreement. This Agreement is the legal, valid and binding obligation of the Grantor, enforceable against the Grantor in accordance with its terms, except that such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, liquidation, or other similar laws affecting the enforcement of creditor’s rights generally, and by general principles of equity.

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(h) No Reliance. The Grantor has, independently and without reliance upon any Holder or the Subordinated Notes Collateral Agent and based upon such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.

5. Transfers and Other Liens. The Grantor agrees that it will not create or permit to exist any Lien, security interest, option or other charge or encumbrance upon or with respect to any of the Collateral, except for the security interest under this Agreement, the Lien granted to the Senior Secured Lender and any Liens on the Collateral arising solely by operation of law.

6. Further Assurances.

(a) Grantor agrees that from time to time, at its own expense, Grantor will promptly execute and deliver all further instruments and documents, and take all such further action, that may be necessary or that Subordinated Notes Collateral Agent may reasonably request, in order to perfect and protect the Security Interest granted hereby, and the priority of the Security Interest, or to enable the Subordinated Notes Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any of the Collateral. Grantor shall confirm that appropriate UCC financing statements have been filed in all requisite United States jurisdictions to perfect the security interest of the Subordinated Notes Representative, as agent for the Holders, in respect of that portion of the Collateral for which, in accordance with Article 9 of the UCC, perfection may be obtained by filing a UCC financing statement.

(b) Grantor authorizes the filing by the Subordinated Notes Collateral Agent of financing or continuation statements, or amendments thereto, and Grantor will execute and deliver to the Subordinated Notes Collateral Agent such other instruments or notices, as may be necessary or as the Subordinated Notes Collateral Agent may reasonably request, in order to perfect and preserve the Security Interest granted or purported to be granted hereby, including notice of any change in name, corporate structure or jurisdiction of organization of the Grantor.

7. Subordinated Notes Collateral Agent’s Duties. The Subordinated Notes Collateral Agent’s duties are as set forth in Annex 1 to the New Notes, and the Subordinated Notes Collateral Agent agrees to be bound thereby as though fully set forth herein. The Subordinated Note Collateral Agent hereby acknowledges that it is acting for and on behalf of the Holders with respect to Collateral matters and agrees that all of its right, title and interest in and interest in and to the Collateral shall be solely for the respective benefit of each Holder.

8. Remedies. Subject to terms of the New Notes, upon the occurrence and during the continuance of an Event of Default:

(a) The Subordinated Notes Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein, in the other Note Documents, or otherwise available to it, all the rights and remedies of a secured party on default under the Code or any other applicable law. Without limiting the generality of the foregoing, Grantor expressly agrees that, in any such event, the Subordinated Notes Collateral Agent without demand of performance or other demand, advertisement or notice of any kind (except a notice specified below of time and place of public or private sale) to or upon Grantor or any other person or entity (all and each of which demands, advertisements and notices are hereby expressly waived to the maximum extent permitted by the Code or any other applicable law), may take immediate possession of all or any portion of the Collateral and without notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Subordinated Notes Collateral Agent’s offices or elsewhere, for cash, on credit, and upon such other terms as the Requisite Holders may deem commercially reasonable. Grantor agrees that, to the extent notice of sale shall be required by law, at least 10 days’ notice to Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification and specifically such notice shall constitute a reasonable “authenticated notification of disposition” within the meaning of Section 9-611 of the Code. The Subordinated Notes Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Subordinated Notes Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

(b) Any cash held by Subordinated Notes Collateral Agent as Collateral and all cash proceeds received by Subordinated Notes Collateral Agent in respect of any sale of, collection from, or other realization upon all or any part of the Collateral shall be applied against the Secured Obligations.

9. Subordinated Notes Collateral Agent May Perform. If the Grantor fails to perform any agreement contained herein, the Subordinated Notes Collateral Agent may itself perform, or cause performance of, such agreement, and the expenses of the Subordinated Notes Collateral Agent incurred in connection therewith will be payable by the Grantor under Section 12 hereof.

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10. Subordinated Notes Collateral Agent Appointed Attorney-in-Fact. The Grantor hereby appoints the Subordinated Notes Collateral Agent the Grantor’s attorney-in-fact, with full authority, but without any obligation whatsoever, in the place and stead of the Grantor and in the name of the Grantor or otherwise, from time to time upon the Grantor’s written request to take any action and to execute any instrument which may be necessary or advisable to accomplish the purposes of this Agreement, including, without limitation, to receive, indorse and collect all instruments made payable to the Grantor representing any interest payment, dividend or other distribution in respect of the Collateral or any part thereof. This appointment shall not be deemed to create any liability on the part of the Subordinated Notes Collateral Agent.

11. Remedies Cumulative. Each right, power, and remedy of the Subordinated Notes Collateral Agent as provided for in this Agreement or in the other Note Documents or now or hereafter existing at law or in equity or by statute or otherwise shall be cumulative and concurrent and shall be in addition to every other right, power, or remedy provided for in this Agreement or in the other Note Documents or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by the Subordinated Notes Collateral Agent, of any one or more of such rights, powers, or remedies shall not preclude the simultaneous or later exercise by the Subordinated Notes Collateral Agent of any or all such other rights, powers, or remedies.

12. Fees and Expenses; Indemnification.

(a) Compensation. The Grantor covenants and agrees to pay the Subordinated Notes Collateral Agent’s fees and expenses specified in Schedule B, including, but not limited to, the reasonable fees and expenses of its counsel and of any experts and agents, which the Subordinated Notes Collateral Agent may incur in connection with (a) the preparation, execution and administration of this Agreement, (b) the custody or preservation of, or the sale of, collection from, or other realization upon, any of the Collateral, (c) the exercise or enforcement of any of the rights of the Subordinated Notes Collateral Agent hereunder or (d) the failure by the Grantor to perform or observe any of the provisions hereof. Any attorney’s fees incurred in connection with the preparation and negotiation of this Agreement and any Collateral Agent acceptance fees shall be due and payable upon the execution of this Agreement. In the event that any fees or expenses or any other obligations owed to the Subordinated Notes Collateral Agent (or its counsel) are not paid to the Subordinated Notes Collateral Agent within 30 calendar days following the presentment of any invoice for the payment of such fees and expenses or the demand for such payment, then the Subordinated Notes Collateral Agent may, without further action or notice to Grantor, pay such fees and expenses from the Collateral and may sell, convey or otherwise dispose of any Collateral for such purpose solely to the extent necessary to pay such fees and expenses and any excess shall be deemed property of the Grantor and constitute Collateral.

(b) Indemnification. The Grantor covenants and agrees, to indemnify the Subordinated Notes Collateral Agent, and its employees, officers, directors and agents (each, an “Indemnified Party”) and hold each Indemnified Party harmless, for, hold each Indemnified Party harmless from, and defend each Indemnified Party against any and all claims, losses, actions, liabilities, costs, damages or expenses (collectively, “Losses”) of any nature incurred by any Indemnified Party arising out of or in connection with this Agreement or with the administration of its duties hereunder, including but not limited to attorney’s fees, tax liabilities (including any taxes, interest and penalties but excluding any income tax liabilities associated with the Subordinated Notes Collateral Agent’s fees), any liabilities or damages that may result from any inaccuracy or misrepresentation made in any tax certification provided to the Subordinated Notes Collateral Agent, and other costs and expenses of defending or preparing to defend against any claim of liability, except to the extent such Losses shall have been finally adjudicated by a court of competent jurisdiction to have resulted solely from the Indemnified Party’s own gross negligence or willful misconduct. This Section 12(b) shall survive notwithstanding the termination of this Agreement or resignation or removal of the Subordinated Notes Collateral Agent.

13. Amendments; Etc. No waiver of any provision of this Agreement, and no consent to any departure by Grantor herefrom, shall in any event be effective unless the same shall be in writing and signed by the Subordinated Notes Collateral Agent. No amendment of any provision of this Agreement shall be effective unless the same shall be in writing and signed by the Subordinated Notes Collateral Agent and Grantor.

14. Addresses for Notices; Instructions; Communications.

(a) All notices and other communications provided for hereunder shall be given in the form and manner and delivered to the Subordinated Notes Collateral Agent at its address specified on the signature page hereto, and to the Grantor at its specified address for notices in the signature page hereto, or, as to any party, at such other address as shall be designated by such party in a written notice to the other party.

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(b) All instructions required under the Agreement shall be delivered to the Subordinated Notes Collateral Agent in writing, in English, and may be delivered to the Subordinated Notes Collateral Agent by facsimile or by e-mail and, if so requested by the Subordinated Notes Collateral Agent, by an original, executed by the applicable Holder or by an Authorized Person (as hereinafter defined) of the Grantor. The identity of such Authorized Persons, as well as their specimen signature, title, telephone number and e-mail address, shall be delivered to the Subordinated Notes Collateral Agent in the list of authorized signers form as set forth on Schedule A and shall remain in effect until the Grantor, or an entity acting on its behalf, notifies the Subordinated Notes Collateral Agent of any change thereto (the person(s) so designated from time to time, the “Authorized Persons”). The Subordinated Notes Collateral Agent, the Grantor and (by acceptance of his, her or its New Note) each Holder agree that the above constitutes a commercially reasonable security procedure and further agree not to comply with any direction or instruction (other than those contained herein or delivered in accordance with the Agreement) from the Grantor or any Holder.

(c) In the event funds transfer instructions are given, whether in writing, by facsimile, .pdf, e-mail, or otherwise, such funds transfer instructions should contain a selected test word also evidenced on Schedule A. Test words must contain at least eight (8) alphanumeric characters, established at document execution. In addition or in lieu of test words, the Subordinated Notes Collateral Agent is authorized to seek confirmation of such instructions by telephone call back to the applicable person(s) set forth on Schedule A, and the Subordinated Notes Collateral Agent may rely upon the confirmations of anyone purporting to be the person(s) so designated. To ensure the accuracy of the instructions it receives, the Subordinated Notes Collateral Agent may record such call backs. If the Subordinated Notes Collateral Agent is unable to verify the instruction, or is not satisfied in its sole discretion with the verification it receives, it will not execute the instruction until all issues have been resolved to its satisfaction. The persons and telephone numbers for call backs may be changed only in writing, signed by an Authorized Person, actually received and acknowledged by the Subordinated Notes Collateral Agent. The Grantor and (by its acceptance of his, her or its New Note) each Holder agree that these security procedures for funds transfers are commercially reasonable.

(d) To help the U.S. government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. In the event that an account is opened, the Subordinated Notes Collateral Agent will ask for information that will allow the Subordinated Notes Collateral Agent to identify relevant parties. The Grantor hereby acknowledges such information disclosure requirements and agree to comply with all such information disclosure requests from time to time from the Subordinated Notes Collateral Agent.

(e) Notwithstanding anything to the contrary herein, any and all e-mail communications (both text and attachments) by or from the Subordinated Notes Collateral Agent that the Subordinated Notes Collateral Agent deems to contain confidential, proprietary, and/or sensitive information shall be encrypted. The recipient (the “E-mail Recipient”) of the encrypted e-mail communication will be required to complete a registration process. Instructions on how to register and/or retrieve an encrypted message will be included in the first secure email sent by the Subordinated Notes Collateral Agent to the E-mail Recipient. Additional information and assistance on using the encryption technology can be found at Citibank’s Secure E-mail website at www.citigroup.com/citi/citizen/finance/privacy/email.htm or by calling (866) 535-2504 (in the U.S.) or (904) 954-6181 (outside the U.S.).

(f) In accordance with the Unlawful Internet Gambling Act (the “Act”), neither the Grantor nor any Holder may not use any deposit account subject hereto or other Citibank facilities in the United States to process ‘restricted transactions’ as such term is defined in 31 CFR Section 132.2(y). Therefore, neither the Grantor nor any Holder, nor any person who has an ownership interest in or control over any deposit account subject hereto may use it to process or facilitate payments for prohibited internet gambling transactions. For more information about the Act, including the types of transactions that are prohibited, please refer to the following link: http://www.federalreserve.gov/NEWSEVENTS/PRESS/BCREG/20081112B.HTM.

(g) The provisions of this Section 14(b)-(f) may be amended by the Subordinated Notes Collateral Agent unilaterally upon notice to the Grantor and the Holders.

15. Use of Name. No printed or other material in any language, including prospectuses, notices, reports, and promotional material which mentions “Citibank”, “Citigroup” or “Citi” by name or the rights, powers, or duties of the Subordinated Notes Collateral Agent under the Agreement shall be issued by the Grantor, or on such party’s behalf, without the prior written consent of the Subordinated Notes Collateral Agent.

16. Continuing Security Interest. This Agreement shall create a continuing security interest in the Collateral and shall (a) remain in full force and effect until the Secured Obligations have been paid in full in cash, (b) be binding upon 

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Grantor, and its successors and assigns, and (c) inure to the benefit of, and be enforceable by, the Subordinated Notes Collateral Agent and the Holders and their respective successors and assigns. Upon payment in full in cash of the Secured Obligations, the Security Interest granted hereby shall terminate and all rights to the Collateral shall revert to Grantor or any other person entitled thereto. At such time, the Subordinated Notes Collateral Agent will authorize the filing of appropriate termination statements to terminate such Security Interests. In addition, upon the sale, transfer, or other disposition of Collateral by Grantor in transactions not prohibited by the Note Documents, such Collateral will be sold, transferred or otherwise disposed of free and clear of the Liens created by this Agreement and the Subordinated Notes Collateral Agent, at the request and sole expense of Grantor, will execute and deliver such documentation reasonably requested by Grantor, including termination or partial release statements and the like in connection therewith, and assign, transfer and deliver to Grantor (without recourse and without any representation or warranty) such of the Collateral as is then being (or has been) so sold, transferred or otherwise disposed of, or released, and as may be in the possession of the Subordinated Notes Collateral Agent and has not been theretofore released pursuant to this Agreement.

17. Governing Law. THE VALIDITY OF THIS AGREEMENT, THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF, AND THE RIGHTS OF THE PARTIES HERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR RELATED HERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

18. Consent to Jurisdiction, Etc. The parties irrevocably (a) submit to the exclusive jurisdiction of the federal and state courts located in the Borough of Manhattan, City, County and State of New York, for any proceedings commenced regarding this Agreement, including, but not limited to, any interpleader proceeding or proceeding for the appointment of a successor collateral agent may commence pursuant to this Agreement. The parties irrevocably submit to the jurisdiction of such courts for the determination of all issues in such proceedings and irrevocably waive any objection to venue or inconvenient forum for any proceeding brought in any such court. The parties irrevocably and unconditionally waive, to the fullest extent permitted by law, and agree not to plead or claim, any right of immunity from legal action, suit or proceeding, from setoff or counterclaim, from the jurisdiction of any court, from service of process, from attachment upon or prior to judgment, from attachment in aid of execution of judgment, from execution of judgment, or from any other legal process or proceeding for the giving of any relief or for the enforcement of any judgment, and consent to such relief and enforcement against it, its assets and its revenues in any jurisdiction, in each case with respect to any matter arising out of, or in connection with, this Agreement.

19. WAIVER OF JURY TRIAL. EACH OF THE GRANTOR AND THE SUBORDINATED NOTES COLLATERAL AGENT IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE SUBORDINATED NOTES COLLATERAL AGENT’S ACTIONS IN THE NEGOTIATION, ADMINISTRATION OR ENFORCEMENT HEREOF.

20. Ambiguity. In the event of any ambiguity or uncertainty hereunder or in any notice, instruction or other communication received by the Subordinated Notes Collateral Agent hereunder, the Subordinated Notes Collateral Agent may, in its sole discretion, refrain from taking any action other than retain possession of the Collateral, unless the Subordinated Notes Collateral Agent receives written instructions, signed by an Authorized Person of the applicable Holder or Requisite Holders, as appropriate, which eliminates such ambiguity or uncertainty.

21. Miscellaneous.

(a) This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement. Delivery of an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this Agreement.

(b) Any provision of this Agreement which is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof in that jurisdiction or affecting the validity or enforceability of such provision in any other jurisdiction.

(c) Headings used in this Agreement are for convenience only and shall not be used in connection with the interpretation of any provision hereof.

[Signatures Follow]

IN WITNESS WHEREOF, the undersigned parties hereto have executed this Agreement by and through their duly authorized officers, as of the day and year first above written.
 
	
		
	Grantor:
	 

	 

	AUTOGENOMICS, INC.,

	a Delaware corporation

	 
	 

	By:
	 

	Name:
	 

	Title:
	 

	 

	Address for Notices:

	 

	Subordinated Notes Collateral Agent:

	 

	CITIBANK, N.A.

	 
	 

	By:
	 

	Name:
	 

	Title:
	 

	 

	Address for Notices:

 
	
		
	Agency & Trust
	 

	388 Greenwich Street
	 

	14th Floor
	 

	New York, NY 10013
	 

	Attention:
	 

	Telephone:
	(212) 816-            

	Facsimile:
	(973) 461-7191 or (973) 461-7192

	Email:
	 

-6-*Exhibit 10.17

Exhibit 10.17

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF A CURRENT AND EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ALL APPLICABLE STATE SECURITIES LAWS WITH RESPECT TO SUCH SECURITIES, OR AN OPINION SATISFACTORY TO THE ISSUER AND ITS COUNSEL TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT AND ALL APPLICABLE STATE SECURITIES LAWS.
 
	
			
	WARRANT NO. 201211-050
	  
	Date: November     , 2012

WARRANT TO PURCHASE COMMON STOCK

AutoGenomics, Inc., a Delaware corporation (the “Company”), hereby certifies that A R Properties (the “Holder”), is entitled to purchase, on the terms and conditions contained herein, 26,980 fully paid, validly issued and nonassessable shares (the “Warrant Shares”) of common stock, no par value, of the Company (the “Common Stock”), at an initial exercise price of $1.50 per Warrant Share (the “Exercise Price”). This Warrant has been approved by the Board of Directors of the Company and is issued pursuant to the terms of that certain Subscription Agreement, dated as of the date hereof, by and between the Company and the Holder (the “Subscription Agreement”). The number of Warrant Shares and the Exercise Price are subject to adjustment as provided in Section 2 below.

This Warrant is subject to the following terms and conditions:

1. Exercisability and Exercise.

1.1 Method of Exercise. This Warrant may be exercised in whole at the option of the Holder at any time and from time to time from the date hereof through and including November     , 2017 (the “Exercise Period”), by delivering to the Company payment of the aggregate Exercise Price for the Warrant Shares being purchased by check or wire transfer, together with an executed Notice of Exercise in the form attached as Exhibit I hereto.

1.2 Effectiveness of Exercise; Procedure. The exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which the Holder delivers the Notice of Exercise to the Company together with payment of the Exercise Price and satisfies all of the requirements of this Section 1. Upon such exercise, the Holder will be deemed a shareholder of record of the Warrant Shares with all rights of a shareholder (including, without limitation, all voting rights with respect to such Warrant Shares and all rights to receive any dividends with respect to such Warrant Shares). In the event of any exercise of the rights represented by this Warrant, certificates for the shares of Common Stock so purchased shall be delivered to the Holder within a reasonable time by the transfer agent of the Company by crediting the account of the Holder’s broker with The Depositary Trust Company through its Deposit Withdrawal Agent Commission system if the Company is a participant in such system, and otherwise by physical delivery to the address specified in the Notice of Exercise. The Company shall not be required to issue fractional shares upon the exercise of this Warrant. In lieu of any fractional share to which the Holder would otherwise be entitled, the Holder shall be entitled, at its option, to receive either (a) a cash payment equal to the excess of the fair market value, as determined by the Board of Directors of the Company in good faith, for such fractional share above the Exercise Price for such fractional share (as mutually determined by the Company and the Holder) or (b) a whole share if the Holder tenders the Exercise Price for one whole share.
 
2. Adjustments.

2.1 Reorganizations, Mergers, Recapitalizations and Reclassifications.

(a) Change of Control. If at any time a Change of Control (as defined below) occurs and, pursuant to the terms of such Change of Control, shares of common stock of the successor or acquiring corporation, or any cash, shares of stock or other securities or property of any nature whatsoever (including warrants or other subscription or purchase rights) in addition to or in lieu of common stock of the successor or acquiring corporation (“Other Property”), are to be received by or distributed to the holders of Common Stock of the Company, then the Holder shall have the right thereafter to receive upon exercise of this Warrant (and this Warrant shall thereafter be exercisable only for) the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and Other Property receivable upon or as a result of such Change of Control by a holder of the number of shares of Common Stock for which this Warrant is 

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exercisable immediately prior to such Change of Control. In case of any such Change of Control, the successor or acquiring corporation (if other than the Company) shall expressly assume the due and punctual observance and performance of each and every covenant and condition of this Warrant to be performed and observed by the Company and all the obligations and liabilities hereunder, subject to such modifications as may be deemed appropriate (as determined in good faith by resolution of the Board of Directors of the Company) in order to provide for adjustments of the Warrant Shares for which this Warrant is exercisable which shall be as nearly equivalent as practicable to the adjustments provided for in this Section 2.1(a). For purposes of this Section 2.1(a), “common stock of the successor or acquiring corporation” shall include stock of such corporation of any class which is not preferred as to dividends or assets over any other class of stock of such corporation and which is not subject to redemption. The foregoing provisions of this Section 2.1(a) shall similarly apply to any successive Change of Control. As used in this Warrant, a “Change of Control” shall mean (i) a transaction or series of transactions (other than an offering of common stock of the Company to the general public through a registration statement filed with the Securities and Exchange Commission) whereby any “person” or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended from time to time (the “Exchange Act”)) (other than the Company, any of its subsidiaries, an employee benefit plan maintained by the Company or any of its subsidiaries or a “person” that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than 50% of the total combined voting power of the Company’s securities outstanding immediately after such acquisition; or (ii) the consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (A) a merger, consolidation, reorganization or business combination, (B) a sale or other disposition of all or substantially all of the Company’s assets in any single transaction or series of related transactions or (C) the acquisition of assets or stock of another entity, in each case other than a transaction (1) which results in the Company’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the Successor Entity (as defined below)) directly or indirectly, at least a majority of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the transaction, and (2) after which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this Section 2.1(a)(ii)(C)(2) as beneficially owning 50% or more of combined voting power of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction. As used in this Section 2.1(a)(ii)(C), the “Successor Entity” shall mean, as applicable, the Company or the person that, as a result of the Change of Control, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s assets or otherwise succeeds to the business of the Company.

(b) Other Events. If, at any time after the date of this Warrant, (i) the outstanding shares of Common Stock issuable upon exercise of this Warrant are changed into, or exchanged for, a different number or kind of shares or securities of the Company through a reorganization, merger, recapitalization or reclassification which does not constitute a Change of Control, or (ii) the number of outstanding shares of such Common Stock is changed through a stock split, reverse stock split, stock dividend, stock consolidation or similar capital adjustment, an appropriate adjustment shall be made by the Board, if necessary, in the Exercise Price and in the number or kind of shares into which this Warrant is exercisable. In making such adjustments, or in determining that no such adjustments are necessary, the Board may rely upon the advice of counsel and accountants to the Company.

2.2 Notice of Adjustment. Upon the occurrence of each adjustment or readjustment of the Exercise Price or the number and kind of securities into which this Warrant is exercisable, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Holder a certificate setting forth such adjustment or readjustment (including the kind and amount of securities, cash or other property for which this Warrant shall be exercisable and the Exercise Price) and showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, upon the written request at any time of the Holder, furnish or cause to be furnished to the Holder a certificate setting forth (i) the Exercise Price then in effect and (ii) the number and kind of shares of capital stock and the amount, if any, of other securities, cash or property which then would be received upon the exercise of this Warrant.

3. Reservation of Stock. The Company shall at all times have authorized, and reserved for the purpose of the issue upon exercise of this Warrant, a sufficient number of shares of its Common Stock to provide for the exercise of this Warrant.

4. Notices of Record Date, etc. In the event the Company shall take a record of the holders of any of its Common Stock for the purpose (a) of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right; (b) of any capital reorganization of the Company, any reclassification of the stock of the Company or any Change of Control; or (c) of the voluntary or involuntary dissolution, liquidation or winding-up of the Company; then, and in each such case, the Company will mail or cause to be mailed to the Holder a notice specifying, as the case may be, (x) the record date for such dividend, 

distribution or right, and the amount and character of such dividend, distribution or right, or (y) the effective date on which such reorganization, reclassification, consolidation, Change of Control, dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock of the Company shall be entitled to exchange their shares for securities or other property deliverable upon such reorganization, reclassification, consolidation, Change of Control, dissolution, liquidation or winding-up. Such notice shall be mailed at least ten days prior to the record date or effective date for the event specified in such notice.

5. Exchange of Warrant. Upon the surrender by the Holder, properly endorsed, to the Company at the principal office of the Company, the Company will issue and deliver to or upon the order of such Holder, at the Company’s expense, a new Warrant or Warrants of like tenor, in the name of the Holder or as the Holder may direct, without charge for any issuance or transfer tax or other cost incurred by the Company, calling in the aggregate on the face or faces thereof for the number of shares of capital stock (or other securities, cash and/or property) then issuable upon exercise of this Warrant. The Company will at no time close its transfer books against the transfer of the Warrant Shares issued or issuable upon the exercise of this Warrant in any manner which interferes with the timely exercise of this Warrant.

6. Replacement of Warrant. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor. Any such new Warrant executed and delivered shall constitute an additional contractual obligation on the part of the Company, whether or not the Warrant so lost, stolen, destroyed or mutilated shall be at any time enforceable by anyone.

7. Transfer of Warrant. This Warrant and all rights hereunder are transferable, in whole, upon surrender of this Warrant with a properly executed assignment (in the form of Exhibit II hereto) at the principal office of the Company. However, as a condition to such transfer, either (a) this Warrant must be registered under the Securities Act of 1933, as amended (the “Act”), and all applicable state securities laws with respect thereto or (b) the Company must first be furnished with an opinion of legal counsel, reasonably satisfactory to the Company, to the effect that such transfer is exempt from the registration requirements of the Act.

8. Miscellaneous.

8.1 Expiration. This Warrant shall expire at the close of business on the date that is five (5) years from the date hereof.

8.2 Restrictive Legend. This Warrant, any Warrant issued upon transfer of this Warrant and the shares of Common Stock issued upon exercise of this Warrant shall be imprinted with substantially the following legend, in addition to any legends required under applicable state securities laws:

“THE SECURITIES REPRESENTED BY THIS WARRANT/CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) OR UNDER ANY APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF A CURRENT AND EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ALL APPLICABLE STATE SECURITIES LAWS WITH RESPECT TO SUCH SECURITIES, OR AN OPINION SATISFACTORY TO THE ISSUER AND ITS COUNSEL TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT AND ALL APPLICABLE STATE SECURITIES LAWS.”

8.3 No Voting Rights. Nothing contained in this Warrant shall be construed as conferring upon Holder by virtue of holding this Warrant (i) the right to vote or to consent as a shareholder in respect of meetings of shareholders for the election of directors of the Company or any other matter, (ii) the right to receive dividends or (iii) any other rights as a shareholder of the Company.

8.4 Compliance with Securities Laws. Holder agrees to exercise and transfer (to the extent permitted pursuant to Section 7 hereof) this Warrant in compliance with all applicable federal and state securities laws and agrees to cooperate with the Company in taking any and all action which may be deemed necessary or desirable to ensure such compliance, including, without limitation, the execution and delivery of one or more documents as requested by the Company representing as to certain matters and acknowledging the restricted nature of the Common Stock to be issued.

8.5 Modification And Waiver. This Warrant and any provision hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the party against which enforcement is sought.

8.6 Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday or a Sunday or shall be a legal holiday, then such action may be taken or such right may be exercised on the next succeeding day not a Saturday or a Sunday or a legal holiday.

8.7 Successors and Assigns. This Warrant shall be binding upon any successors or assigns of the Company.

8.8 Notices. All notices, requests, consents and demands with respect to this Warrant shall be made in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (c) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the Company at 2980 Scott Street, Vista, California, and to Holder at the applicable address set forth on the applicable signature page to the Subscription Agreement or at such other address as the Company or Holder may designate by ten (10) days advance written notice to the other parties hereto.

8.9 Governing Law. This Warrant shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the jurisdiction of incorporation of the Company, without regard to its principles of choice of law.

[Signature Page to Warrant to Purchase Common Stock]

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed and issued by its duly authorized representative on the date first above written.
 
	
		
	AUTOGENOMICS, INC.

	 
	 

	By:
	 

	 
	Fareed Kureshy

	 
	Its President and CEO

Page 5

Schedule to Exhibit 10.17
The following common stock warrants are substantially identical in all material respects to the representative warrant to which this schedule is attached and which is filed as an exhibit to AutoGenomics, Inc.’s registration statement on Form S-1 (the “Registration Statement”), except as to the parties thereto, number of warrant shares and exercise prices set forth below. The number of warrant shares and exercise prices presented in Exhibit 10.17 and in the chart below are presented as set forth in their respective warrants and, except for the warrant marked with an asterisk below, do not reflect the effect of our January 2013 1-for-0.33 reverse common stock split.  The number of warrant shares after our January 2013 reverse stock split is equal to the product of the number of warrant shares presented and 0.33, rounded up to the nearest whole number.  Warrants with an exercise price of $1.50, $1.75, $3.00, $4.00 and $5.00 per share, as presented in the chart below, are exercisable, after giving effect to our January 2013 reverse stock split, at a price of $4.55, $5.30, $9.09, $12.12 and $15.15 per share, respectively.
These other common stock warrants are not being filed with the Registration Statement, pursuant to Instruction 2 to Item 601 of Regulation S-K promulgated under the Securities Exchange Act of 1934, as amended.	
								
	Number
	Holder
	Warrant
Shares
	 
	Exercise
Price

	201211-051
	A R Properties
	71,000
	

	 
	$
	1.50
	

	201211-078
	Shugart Investments
	71,000
	

	 
	$
	1.50
	

	201211-052
	A R Properties
	28,400
	

	 
	$
	1.50
	

	201211-076
	R&M Investments
	14,200
	

	 
	$
	1.50
	

	201211-067
	Kannappan Family Trust
	7,100
	

	 
	$
	1.50
	

	201211-053
	A R Properties
	37,500
	

	 
	$
	1.50
	

	201211-063
	IAS Management, LLC
	37,500
	

	 
	$
	1.50
	

	201211-070
	Levin Family Revocable Trust
	42,600
	

	 
	$
	1.50
	

	201211-081
	The Testman Trust
	14,200
	

	 
	$
	1.50
	

	201211-080
	Terrence A Noonan
	7,100
	

	 
	$
	1.50
	

	201211-054
	A R Properties
	284,000
	

	 
	$
	1.50
	

	201211-071
	Levin Family Revocable Trust
	28,400
	

	 
	$
	1.50
	

	201211-064
	IAS Management, LLC
	71,000
	

	 
	$
	1.50
	

	201211-059
	Cyndy Reinking
	71,000
	

	 
	$
	1.50
	

	201211-066
	Joseph Sullivan
	2,840
	

	 
	$
	1.50
	

	201211-072
	McGrath Family Trust
	42,600
	

	 
	$
	1.50
	

	201211-082
	The Testman Trust
	15,620
	

	 
	$
	1.50
	

	201211-083
	The Testman Trust
	30,000
	

	 
	$
	1.50
	

	201211-088
	William Davidson
	30,000
	

	 
	$
	1.50
	

	201211-055
	A R Properties
	30,000
	

	 
	$
	1.50
	

	201211-065
	James Mamakos
	30,000
	

	 
	$
	1.50
	

	201211-086
	Thomas Reise
	15,000
	

	 
	$
	1.50
	

	201211-077
	Roger MacFarlane
	60,000
	

	 
	$
	1.50
	

	201211-056
	A R Properties
	60,000
	

	 
	$
	1.50
	

	201211-057
	A R Properties
	62,500
	

	 
	$
	1.50
	

	201211-087
	Thomas V Hennessey, Jr
	10,000
	

	 
	$
	1.50
	

	201211-061
	George F Ohrstrom
	62,500
	

	 
	$
	1.50
	

	201211-085
	Thomas Campbell Jackson
	62,500
	

	 
	$
	1.50
	

	201211-058
	A R Properties
	75,000
	

	 
	$
	1.50
	

	201211-069
	Kentor Trust U/A dated 09/18/2002
	24,080
	

	 
	$
	1.50
	

	201211-062
	God’s Gift
	71,000
	

	 
	$
	1.50
	

	201211-079
	Strader Family Trust
	7,100
	

	 
	$
	1.50
	

	201211-068
	Kentor Trust U/A dated 09/18/2002
	6,745
	

	 
	$
	1.50
	

	201211-073
	National Healthcare Services
	85,200
	

	 
	$
	1.50
	

	201211-074
	National Healthcare Services
	85,200
	

	 
	$
	1.50
	

	201211-075
	National Healthcare Services
	170,400
	

	 
	$
	1.50
	

Page 6

	
								
	Number
	Holder
	Warrant
Shares
	 
	Exercise
Price

	201211-084
	The Testman Trust
	7,500
	

	 
	$
	1.50
	

	201211-060
	Donald E Pogorzelski Trust
	75,000
	

	 
	$
	1.50
	

	201211-028
	Kentor Trust U/A dated 09/18/2002
	39,922
	

	 
	$
	1.75
	

	201211-011
	God’s Gift
	106,500
	

	 
	$
	1.75
	

	201211-044
	Strader Family Trust
	31,950
	

	 
	$
	1.75
	

	201211-027
	Kentor Trust U/A dated 09/18/2002
	11,183
	

	 
	$
	1.75
	

	201211-034
	National Healthcare Services
	85,200
	

	 
	$
	1.75
	

	201211-035
	National Healthcare Services
	85,200
	

	 
	$
	1.75
	

	201211-036
	National Healthcare Services
	170,400
	

	 
	$
	1.75
	

	201211-046
	The Testman Trust
	11,250
	

	 
	$
	1.75
	

	201211-007
	Donald E Pogorzelski Trust
	75,000
	

	 
	$
	1.75
	

	201211-041
	Scott GRAT No. 5
	852,000
	

	 
	$
	1.75
	

	201211-037
	Piercey Trust
	106,500
	

	 
	$
	1.75
	

	201211-031
	Lilian R Kramer 2009 Trust
	112,500
	

	 
	$
	1.75
	

	201211-021
	I Melvin Kramer Special Revocable Trust
	112,500
	

	 
	$
	1.75
	

	201211-010
	Elisa Kenna Trust
	225,000
	

	 
	$
	1.75
	

	201211-029
	Kim Pegula and Terrence Pegula JT TEN
	180,000
	

	 
	$
	1.75
	

	201211-003
	Brian J Carruthers
	112,500
	

	 
	$
	1.75
	

	201211-019
	Holder Enterprises, LLC
	180,000
	

	 
	$
	1.75
	

	201211-042
	Sidney L McDonald
	180,000
	

	 
	$
	1.75
	

	201211-025
	Jeff Olson Consultant Retirement Trust
	112,500
	

	 
	$
	1.75
	

	201211-006
	David Savula and Beverly Savula JTWROS
	112,500
	

	 
	$
	1.75
	

	201211-043
	Stephen Lepley and Laura Jane Lepley TIC
	112,500
	

	 
	$
	1.75
	

	201211-022
	Ivie Family Limited Partnership
	112,500
	

	 
	$
	1.75
	

	201211-026
	John David Wine
	112,500
	

	 
	$
	1.75
	

	201211-033
	Mary Ann Evans
	112,500
	

	 
	$
	1.75
	

	201211-049
	Woodford Farm Trust
	112,500
	

	 
	$
	1.75
	

	201211-020
	Hubbard Properties, Inc.
	247,500
	

	 
	$
	1.75
	

	201211-005
	Carson Retained Annuity Trust
	112,500
	

	 
	$
	1.75
	

	201211-012
	Heiligbrodt Family Partnership
	213,000
	

	 
	$
	1.75
	

	201211-002
	Belmont Insurance Co, Inc.
	42,600
	

	 
	$
	1.75
	

	201211-001
	Argus Reinsurance, Ltd.
	106,500
	

	 
	$
	1.75
	

	201211-004
	Bubalo Family Trust
	42,600
	

	 
	$
	1.75
	

	201211-032
	Linda Formo Brandes Trust
	106,500
	

	 
	$
	1.75
	

	201211-018
	Helen Lovaas Trust FBO Theresa Bell
	21,300
	

	 
	$
	1.75
	

	201211-014
	Helen Lovaas Trust FBO Cindy Westwood
	21,300
	

	 
	$
	1.75
	

	201211-017
	Helen Lovaas Trust FBO Kathy Redenius
	21,300
	

	 
	$
	1.75
	

	201211-015
	Helen Lovaas Trust FBO Daniel Lovaas
	21,300
	

	 
	$
	1.75
	

	201211-016
	Helen Lovaas Trust FBO Frank Bartlett
	21,300
	

	 
	$
	1.75
	

	201211-013
	Helen Lovaas Trust FBO Christine Fennelly
	21,300
	

	 
	$
	1.75
	

	201211-047
	Ulrich Frindt Family Trust
	21,300
	

	 
	$
	1.75
	

	201211-024
	Jason & Paula Livingston
	42,600
	

	 
	$
	1.75
	

	201211-038
	Randall R Lunn
	21,300
	

	 
	$
	1.75
	

	201211-039
	Rue Family Trust
	106,500
	

	 
	$
	1.75
	

	201211-048
	Van Fleet Family Trust
	21,300
	

	 
	$
	1.75
	

	201211-023
	James Lauro
	45,000
	

	 
	$
	1.75
	

	201211-040
	Rukhsana N. Bukhari
	45,000
	

	 
	$
	1.75
	

	201211-045
	The Testman Trust
	45,000
	

	 
	$
	1.75
	

Page 7

	
								
	Number
	Holder
	Warrant
Shares
	 
	Exercise
Price

	201211-030
	Laurence M Demers
	37,500
	

	 
	$
	1.75
	

	201211-008
	Donald E Pogorzelski Trust
	225,000
	

	 
	$
	1.75
	

	201211-009
	Donald E Pogorzelski Trust
	180,000
	

	 
	$
	1.75
	

	201002-004
	J Piercey Trust
	28,400
	

	 
	$
	4.00
	

	201004-003
	Kentor Trust U/A dated 9/18/2002
	71,000
	

	 
	$
	5.00
	

	201004-011
	Laurence M Demers
	14,200
	

	 
	$
	5.00
	

	201004-012
	Zurlo Investment Trust
	14,200
	

	 
	$
	5.00
	

	201011-002
	National Healthcare Services
	142,000
	

	 
	$
	3.00
	

	201012-001
	Laurence M Demers
	30,000
	

	 
	$
	3.00
	

	201104-001
	Tregale Group Ltd
	31,863
	

	 
	$
	3.00
	

	201108-001
	Tregale Group Ltd
	1,300,000
	

	 
	$
	3.00
	

	201304-001
	Memorial Care Innovation Fund, LP
	90,273*
	

	 
	$ 5.25*
	

Page 8

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