Document:

ex41.htm

    Exhibit
4.1

     

    SECURITIES
PURCHASE AGREEMENT

     

    

     

    SECURITIES PURCHASE AGREEMENT
(this “Agreement”), dated as
of May 2, 2008, by and among STEVEN POSNER IRREVOCABLE TRUST, U/T/A (the “Purchaser”), and
FIRSTWAY ENTERPRISES, INC., a Delaware corporation (the "Company").

    W
I T N E S S E T H:

     

    WHEREAS, the Company has
acquired 100% of the outstanding membership interests of U.S. Imaging Holdings,
LLC, a Nevada limited liability company ("U.S. Imaging"); and

     

    WHEREAS, as a consequence of
its acquisition of U.S. Imaging, the Company will be engaged in the diagnostic
imaging business through the operations of three wholly owned subsidiaries of
U.S. Imaging; and

     

    WHEREAS, the Company requires
additional capital to operate its diagnostic imaging business; and

     

    WHEREAS, Purchaser wishes to
purchase from the Company, and the Company wishes to sell and issue to
Purchaser, certain securities of the Company, upon the terms and subject to the
conditions set forth below.

     

    NOW, THEREFORE, in
consideration of the foregoing premises, which are true and correct and are
incorporated herein, and the mutual covenants and agreements hereinafter
contained, the Parties hereby agree as follows:

     

    1. SALE AND PURCHASE OF
SECURITIES.

     

    1.1. Transaction. Upon the
terms and subject to the conditions contained herein, at the Closing, as
provided in Section 4 below, the Company shall sell, issue and deliver to the
Purchaser, and the Purchaser shall purchase from the Company, free and clear of
all liens, claims, charges, restrictions or encumbrances of any kind or nature
(“Liens”), the
following authorized but unissued securities of the Company:  i) a
convertible debenture, in the face amount of $1,000,000, bearing interest at 12%
per annum; such debenture (the "Debenture") shall be in substantially the form
of Exhibit A
attached hereto; and ii) Series A Stock Purchase Warrants to purchase up to
5,555,555 shares of the common stock of the Company, at a price of $.24 per
share and Series B Stock Purchase Warrants to purchase up to 5,555,555 shares of
common stock at a price of $.30 per share; such warrants (the "Warrants") shall
be in substantially the form of Exhibit B attached
hereto.  The Debenture and the Warrants are collectively referred to
herein as the "Purchased Securities."

     

    1.2. Purchase
Price.  The aggregate cash purchase price for the Purchased
Securities (the “Purchase Price”)
shall be One Million Dollars ($1,000,000).  The Purchase Price shall
be payable in immediately available funds at Closing.

     

    2. REPRESENTATIONS AND
WARRANTIES OF THE COMPANY.  In order to induce the Purchaser to
purchase the Purchased Securities, the Company hereby represents and warrants to
Purchaser as follows:

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    2.1. Corporate Organization and
Authority.  The Company is a corporation duly organized,
validly existing and in good standing under the laws of Delaware and has all
requisite power and authority to own its properties, and carry on its business
as now being conducted.

     

    2.2. Capitalization.

     

    2.2.1. The
authorized capital stock of the Company consists of 270,000,000 shares
consisting of 250,000,000 shares of common stock, $.0001 par value per share, of
which  50,000,000 shares are issued and outstanding and 20,000,000
shares of Preferred Stock, $.0001 par value per share, none of which are issued
and outstanding.  All of the outstanding shares were duly authorized
for issuance and are validly issued, fully paid and non-assessable.

     

    2.2.2. Excepting
only the Debenture and the Warrants to be issued to Purchaser at Closing, there
are no existing options, warrants, calls, rights, commitments, subscriptions,
voting trusts or other agreements or arrangements of any character to which the
Company is a party requiring, and there are no securities of the Company
outstanding which upon conversion or exchange would require, the issuance, sale
or transfer of any shares of capital stock of the Company or other securities
convertible into, exchangeable for or evidencing the right to subscribe for or
purchase shares of capital stock of the Company.

     

    2.2.3. The
outstanding shares of common stock of the Company have not been issued in
violation of, and are not subject to, any purchase option, call, right of first
refusal, preemptive, subscription or similar rights under any applicable law,
the certificate of incorporation or by-laws of the Company, any written or oral
contract or understanding to which the Company is subject, bound or a
party,  or otherwise. There are no voting trusts or other contracts,
agreements or understandings to which the Company is a party with respect to the
voting of the capital stock of the Company.

     

    2.2.4. Excepting
only shares of common stock reserved for issuance upon conversion of the
Debenture or exercise of the Warrants, there is no capital stock of the Company
reserved for issuance for any purpose. There are no outstanding contractual
obligations of the Company to provide funds or to make any investment (in the
form of a loan, capital contribution or otherwise) in any other person or entity
(a “Person”).  The
Company (a) does not own or hold the right to acquire any capital stock or
other equity securities of any Person, (b) does not have any direct or indirect
equity or ownership interest in any other Person, and (c) is not a member of or
participant in any partnership, joint venture, franchise agreement, licensee
agreement or similar arrangement.

     

    2.3. Proper Authorization and
Execution.  The execution, delivery and performance of this
Agreement and the agreements, documents and other instruments to be executed,
delivered and performed in connection with or simultaneously with the
transactions contemplated hereby (the “Related Agreements”)
by the Company, and consummation of the transactions contemplated hereby and
thereby, have been approved by the Company.  The Company has obtained
all necessary approvals and consents to the transactions contemplated hereby and
by the Related Agreements.  The Company has all power and authority
required to enter into and perform this Agreement and the Related
Agreements.  The issuance of the Debenture and the Warrants have been
authorized and approved by the Company, and upon issuance of such Purchased
Securities to Purchaser, Purchaser will have good and valid title to such
securities, free and clear of any and all Liens.

     

    2.4. Subsidiary.  U.S.
Imaging is a limited liability company duly organized, validly existing and in
good standing under the laws of the State of Nevada.  As of the
Closing of the transactions contemplated by this Agreement, all of the issued
and outstanding membership interests of U.S. Imaging are owned by the Company,
free and clear of any and all Liens.

    All
subsequent representations and warranties by the Company set forth in this
Section 2 shall be applicable to the Company and U.S. Imaging, separately and as
a consolidated entity, and assumes the acquisition of U.S. Imaging.

     

    2.5. No Breach Caused by
Agreement.  The execution, delivery and performance of this
Agreement and all the Related Agreements will not conflict with, violate or
result in a breach of the provisions of, or constitute a default or result in
the acceleration of any obligations under, or permit termination of, any
agreement or instrument to which the Company is a party or by which any such
party is bound, nor will it conflict with or violate the provisions of the
Articles of Incorporation or Bylaws of the Company (or similar governing
document), or of any law, judgment, decree, order, regulation or rule of any
court or governmental authority or any covenant or restriction binding upon the
Company, nor will it result in the imposition of any Lien upon any asset of the
Company.

     

    2.6. Securities
Filings.  The Company is current in its reporting obligations
with the Securities and Exchange Commission ("SEC") under Section 13 of the
Securities Exchange Act of 1934, as amended, and all reports filed with the SEC
comply with applicable requirements except for the Form 8-K Current Report to be
filed in connection with the acquisition of US Imaging Holding LLC.

     

    2.7. Title to
Assets.  Except as set forth on Schedule 2.7, the Company has
good, valid and insurable title to, or a valid leasehold interest in, all
tangible and intangible assets of the Company, including all assets reflected on
the Company's balance sheet as of December 31, 2007, free and clear of all
Liens. The assets of the Company are sufficient to conduct the business of the
Company as presently conducted.  Excepting only the premises in which
U.S. Imaging's diagnostic imaging centers are located (which are owned by
affiliates of the Company and leased to the Company), no assets owned or used by
the Company are (a) owned by, used by, or leased or licensed to or from any
affiliate of the Company, or (b) in the possession of any Person other than the
Company.

     

    2.8. Condition of
Assets.  The Company's assets are presently, and will at the
Closing be, in good order, condition and repair in all material respects,
subject only to ordinary wear and tear, and are reasonably suitable for the
purposes for which they are used.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2.9. Operation of the
Business.  Since December 31, 2007, the Company has:
(a) maintained its assets in good order, condition and repair, reasonable
wear and tear excepted; (b) carried on its business diligently and in
substantially the same manner as it previously has been carried on; and
(c) preserved its relationships with all customers, suppliers, vendors,
dealers, distributors, manufacturers and sales representatives, referral sources
and other persons or entities with whom the Company has business relationships
and are material with respect to its business.  The Company has
not:  (i) entered into or otherwise altered, modified or changed
in any material respect, or terminated, any contract, commitment, or transaction
not in the usual and ordinary course of the business and material to its
business; (ii) sold or disposed of any assets other than in the ordinary
course of business; (iii)  purchased any equipment, or other items
requiring the expenditure of in excess of $10,000; or (iv) entered into or
otherwise altered, modified or changed in any material respect, any personal or
real property leases.

     

    2.10. Absence of Material
Changes.  Since December 31, 2007, there has not
been:  (a) any material change in the business, financial
condition, working capital or net worth of the Company, or in the operation of
the business taken as a whole; (b) any damage, destruction or loss, whether
covered by insurance or not, materially and adversely affecting the Company's
assets and/or properties and/or its business; (c) any entry into,
modification of or termination of any material commitment or transaction,
including, without limitation, any borrowing or capital expenditure; or
(d) any material change by the Company in accounting methods or
principles.

     

    2.11. Real
Property.

     

    2.11.1. The
Company does not own any real property or any interests in real property.
Schedule 2.11.1 sets forth a complete list of  all real property and
interests in real property leased by the Company (individually, a “Leased Real Property”
and collectively the “Leased Real
Properties”), and the material terms of each lease for the Leased Real
Properties.

     

    2.11.2. The
Company has a valid and enforceable leasehold interest under each of the leases
for the Leased Real Properties to which it is a party, and no event has occurred
or circumstance exists that constitutes a default or, with notice or lapse of
time, or both, would constitute a default by the Company under any lease for the
Leased Real Properties.  The rental rates for each of the Leased Real
Properties is the fair market rental rate for each such property.

     

    2.11.3. All of
the land, buildings, structures and other improvements used by the Company in
the conduct of its business are included in the Leased Real Properties. The
Company is not a lessor or sublessor of, nor or does it make available for use
to any Person, any Leased Real Property or any portion thereof.

     

    2.12. Technology and Intellectual
Property.

     

    2.12.1. Schedule
2.12.1 lists all copyrights, trademarks, trade names, brand names, logos,
service marks, patents, software and domain names, technology and any other
proprietary rights owned or used by the Company, in all cases both domestic and
foreign, and registered or unregistered, and applications for any and all of the
foregoing (all items included or required to be included on such schedule, the
“Intellectual
Property”), and indicates whether the same is owned or licensed. With
respect to registered Intellectual Property or applications therefor, Schedule
2.12.1 sets forth a list of all jurisdictions in which such items are registered
or applied for.  The Company is the owner of record of any
application, registration or grant for each item of Intellectual
Property.  The Company has filed all documents and paid all taxes,
fees, and other financial obligations required to maintain in force and effect
all Intellectual Property.  To the best knowledge of the Company, the
Intellectual Property does not infringe upon the intellectual property or other
proprietary rights of any Person.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    2.12.2. The
Company is the sole and exclusive owner of the Intellectual Property or has
exclusive rights to use such Intellectual Property pursuant to a valid
license.  The Company has not previously assigned, transferred,
conveyed or otherwise encumbered its right, title and interest in the
Intellectual Property.  The Company owns or otherwise possesses valid
and enforceable rights to use all Intellectual Property currently used in its
business as presently conducted.

     

    2.12.3. The
Company is not under any obligation to pay any royalties or similar payments in
connection with any intellectual property or technology.

     

    2.12.4. Except as
otherwise disclosed on Schedule 2.12.1, the Company has not granted any options,
licenses or agreements of any kind relating to the Intellectual
Property.

     

    2.12.5. To the
best knowledge of the Company, there has been no misappropriation of the
Company's material trade secrets or other material Intellectual Property by any
Person.

     

    2.13. Material
Contracts.

     

    2.13.1. Schedule
2.13 sets forth all of the following written or oral contracts, agreements or
understandings to which the Company is a party or by which it is bound
(collectively, the “Material Contracts”),
including any:

     

    
      	
              -  

            	
              Consulting,
      employment, or medical director agreements (including agreements by
      employees, consultants or medical directors with respect to
      confidentiality, severance, non-competition and/or
      nonsolicitation);

            

    

    
      	
              -  

            	
              Contracts
      with any physicians or other Persons who refer patients to the
      Company;

            

    

    
      	
              -  

            	
              Contracts
      relating to leasing the Company's facilities to or otherwise providing
      imaging services on behalf of any other
person;

            

    

    
      	
              -  

            	
              Contracts
      relating to payments to the Company for health care services by any
      third-party payer, including commercial payers, Medicare, Medicaid,
      Tri-Care, or other governmental
payers;

            

    

    
      	
              -  

            	
              Covenants
      of the Company (or its employees or independent contractors) not to
      compete or solicit or other covenant restricting the development,
      marketing or distribution and delivery of the products and services of the
      Company or the engagement in any
activity;

            

    

    
      	
              -  

            	
              Contracts
      under which the Company has borrowed any money from, established a line of
      credit with, or issued any note, bond, debenture or other evidence of
      indebtedness to, any Person or any other note, bond, debenture or other
      evidence of indebtedness issued to any
person;

            

    

    
      	
              -  

            	
              Contracts
      under which (a) any Person has directly or indirectly guaranteed
      indebtedness, liabilities or obligations of the Company, or (b) the
      Company has directly or indirectly guaranteed indebtedness, liabilities or
      obligations of any Person;

            

    

    
      	
              -  

            	
              Contracts
      for any joint venture, partnership, investment or similar
      arrangement;

            

    

    
      	
              -  

            	
              Contracts
      providing for indemnification, or any power of
  attorney;

            

    

    
      	
              -  

            	
              Contracts
      (including a purchase order) involving payment by the Company of more than
      $50,000, or extending for a term of more than 180 days from the date of
      this Agreement (unless terminable without payment or penalty upon no more
      than 60 days’ notice);

            

    

    
      	
              -  

            	
              Contracts
      with any governmental entity;

            

    

    
      	
              -  

            	
              Contracts
      providing for the services of any dealer, distributor, sales
      representative, franchisee or similar
  representative;

            

    

    
      	
              -  

            	
              Any
      other contract to which the Company is a party or by or to which the
      Company or any of its property or assets or business is bound or subject
      to that has an aggregate future liability to any Person in excess of
      $50,000 and is not terminable by the Company by notice of not more than 60
      days without payment or penalty;

            

    

    
      	
              -  

            	
              Any
      leases, other than those listed in Schedule
  2.9.1;

            

    

    
      	
              -  

            	
              Any
      franchise agreement, license agreement or any similar contract;
      or

            

    

    
      	
              -  

            	
              Any
      contract other than as set forth above to which the Company is a party or
      by which the Company's property or assets or business is bound or subject
      to that is material to the Company.

            

    

     

    2.13.2. All
Material Contracts are valid, binding and in full force and effect and are
enforceable by the Company in accordance with their respective terms. The
Company has performed all obligations required to be performed by it to date
under all Material Contracts, and the Company is not (with or without the lapse
of time or the giving of notice, or both) in breach or default thereunder, and,
to the best knowledge of the Company, no other party to any Material Contract is
(with or without the lapse of time or the giving of notice, or both) in breach
or default in any material respect thereunder. The Company has not received any
written notice of the intention of any party to terminate any Material Contract,
nor does the Company have knowledge of any basis for such a termination.
Complete and correct copies of all Material Contracts, together with all
modifications and amendments thereto, have been delivered to the
Purchaser.

     

    2.14. Compliance With
Laws.  The Company has complied in all material respects with,
and is not in violation of, any applicable Federal, State, or local statute,
law, or regulation (including, without limitation, any applicable building,
zoning, environmental protection or other law, ordinance or
regulation).  The Company has no liabilities relating to contamination
of or remediation of the environment.  To the best knowledge of
Seller, (i) there are no underground storage tanks located on the real
property underlying any of such locations at which the Company conducts
Business, (ii) there has not been any spill, disposal, discharge, storage
or release of any Hazardous Material into, upon, from, or over such real
property or into or upon ground or surface water on such real property,
(iii) there are no asbestos-containing materials incorporated into any of
the buildings or interior improvements that are part of any such real property,
or into other assets of the Company, and there is no electrical transformer,
fluorescent light fixture with ballasts, or other equipment containing PCBs on
such real property.  As used in this paragraph, “Hazardous Material”
means any hazardous or toxic substance, material, or waste that is regulated by
any federal authority or by any state or local governmental authority where the
substance, material, or waste is located.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    2.15. Governmental Program
Participation; Regulatory Issues.

     

    2.15.1. The
Company is eligible to receive payment without restriction under Title XVIII of
the Social Security Act (“Medicare”), and Title XIX of the Social Security Act
("Medicaid"), and is a provider with a valid and current provider agreement and
a valid provider number with the federal Medicare Program and the Medicaid
Program (the “Government Programs”), through authorized
intermediaries.  The Company is in compliance with the conditions of
participation for the Government Programs in all material
respects.  There is not pending or, to the best knowledge of the
Company, threatened any complaint, medical review, audit, overpayment,
proceeding or investigation under the Government Programs involving the
Company.  The Company's diagnostic imaging centers are in compliance
with all Medicare statutes, rules and conditions of participation, including but
limited to the federal Anti-Kickback Statute, 42 U.S.C. §1320a-7b(b), the
federal Stark Law, 42 U.S.C. § 1395nn, and the regulations applicable to
independent diagnostic testing facilities, and there are no outstanding
statement or deficiencies of plans of correction that have not been accepted by
or on behalf of Medicare.  The Company's diagnostic imaging centers
are in compliance with all applicable state statutes, rules and regulations,
including but not limited to the Patient Self-Referral Act, §456-053, Fla. Stat.
and the Patient Brokering Act, §817.505, Fla. Stat.

     

    2.15.2. The
Company has filed and caused to be filed all material reports that are required
to have been filed or made with respect to the payment for the Company's
services by third party payors, including Government Programs and other
insurance carriers.  The Company has maintained all records required
of it under law.

     

    2.15.3. (i)  Neither
any current or former employee of the Company or any affiliate of the Company
has been excluded from participating in any federal health care program (as
defined in 42 U.S.C. §1320a-7b(f)), and (ii) none of the Company’s current
officers, managers or directors (or holders of equivalent positions) have been
excluded from Medicare or any federal health care program (as defined in 42
U.S.C. §1320a-7b(f)) or been subject to sanction pursuant to 42 U.S.C. §1320a-7a
or 1320a-8, or been convicted of a crime described at 42
U.S.C.  §1320a-7b.

     

    2.15.4. To the
best knowledge of the Company, there is no action or event that will cause a
material decrease in the number of patients served by the Company's diagnostic
imaging centers after the Closing Date.

     

    2.15.5. There
exists no event, condition or other circumstances which, immediately or with a
lapse of time, would materially adversely affect the Company's business, would
constitute a violation of the conditions of participation in federal or state
programs, or would be a violation of any statute or regulation concerning
operation of such business.

     

    2.15.6. The
Company has all permits and licenses that are necessary to enable it to own and
to carry on the diagnostic imaging business as presently conducted and to
receive private and government payment for furnishing imaging
services.  Section 2.15.6 of the Disclosure Schedule lists all of the
permits, licenses, provider numbers and governmental contracts held by the
Company relating to the business.  The permits, licenses, provider
numbers and governmental contracts listed on Schedule 2.15.6 are valid and in
full force and effect, and no violations of any such permits, licenses, provider
numbers or governmental contracts have occurred or, to the best knowledge of the
Company, have been threatened or alleged to have
occurred.  Furthermore, no actions or proceedings are pending or, to
the best knowledge of the Company, threatened, that would have the effect of
terminating, revoking, limiting, suspending, restricting, impairing or otherwise
affecting the use or renewal of any of the permits, licenses, provider numbers
or governmental contracts.

     

    2.15.7. No
consent, approval, waiver or authorization from any third party  is
necessary or required in connection with the transaction contemplated hereby or
for the Company to continue operation as an outpatient rehabilitation facility
following the Closing.

     

    2.15.8. Except as
disclosed on Schedule 2.15.8, the Company has not been notified of any injury or
harm to a patient, allegedly caused by an act or omission of the
Company.

     

    2.15.9. The
Company has not submitted any false or fraudulent claim to any third party, nor
has the Company received any notice from any third party regarding any
allegation of a billing mistake, overpayment claim, false claim or
fraud.  All billing practices of the Company are in compliance with
all applicable federal and state laws and regulations, and the Company has not
billed for or received any payment or reimbursement in excess of amounts
permitted by applicable federal and state laws and regulations. The Company has
maintained all records required by law or regulation.  The Company has
not solicited, received, paid or offered to pay any remuneration, directly or
indirectly, overtly or covertly, in cash or in kind, for the purpose of making
or receiving any referral which violated any applicable anti-kickback law
(including without limitation 42 U.S.C. § 1320a-7b(b)).  The Company
has complied with all applicable security and privacy standards regarding
protected health information under the Health Insurance Portability and
Accountability Act of 1996 (“HIPAA”) and all applicable state privacy laws with
respect to the Business.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

     

    2.15.10. In
connection with the Company's business, the Company has complied with all of the
laws, rules and regulations of the Medicare programs and other governmental
health care programs, and has filed all claims, invoices, returns and other
forms in the manner prescribed.  All claims, invoices, returns and
other forms made or submitted by the Company to Medicare or any other
governmental health or welfare related entity since the inception of the
Business are true, complete, correct and accurate.  No deficiency in
any such claims, returns and other filings, including claims for overpayments or
deficiencies for late filings, has been asserted or threatened by any federal or
state agency or instrumentality or other provider reimbursement entities
relating to Medicare claims.  The Company has not been subject to
audit relating to fraudulent Medicare procedures or practices.  There
is no basis for any claim or request for recoupment or reimbursement from the
Company by any federal or state agency or instrumentality or other provider
reimbursement entities relating to Medicare or Medicaid claims in connection
with the Business.

     

    2.16. Financial
Statements.

     

    2.16.1. Schedule
2.16.1 contains the unaudited balance sheet of the Company as of December 31,
2007, and the unaudited statement of income of the Company for the year ended
December 31, 2007, (the financial statements described in this
Section 2.16.1 are collectively referred to herein as the “Financial
Statements”).  On or before June 1, 2008, the Company will
provide Purchaser with audited Financial Statements.  The audited
Financial Statements will show the Company's EBITDA for the fiscal year ended
December 31, 2007 was not less than $1,305,343.  For purposes of this
Agreement, EBITDA means earnings before interest payments, taxes, depreciation
and amortization.

     

    2.16.2. Each
balance sheet included in the Financial Statements presents fairly the financial
position of the Company as of the date thereof, and each income statement and
cash flow statement included in the Financial Statements presents fairly the
results of operations and cash flow of the Company for the period set forth
therein, subject to the lack of footnotes. Each of the Financial Statements has
been prepared in accordance with GAAP in all material respects applied on a
consistent basis. The books, records and accounts of the Company accurately and
fairly reflect, in reasonable detail, all transactions and all items of income
and expense, assets and liabilities and accruals relating to the
Company.

     

    2.17. Accounts
Receivable.

    All
accounts receivable shown on the Financial Statements and all accounts
receivable created thereafter arose from valid, arm’s length transactions in the
ordinary course of business with non-affiliates, constitute valid claims of the
Company, free and clear of all Liens, and are not and will not be subject to any
valid claims or set off or other defense or counterclaims.  Reserves
for amounts potentially uncollectible have been calculated in accordance with
GAAP, applied consistently with prior periods, and are adequate in all material
respects.

     

    2.18. No Undisclosed
Liabilities. The Company has no liabilities, except for liabilities set
forth on the balance sheet contained in the Financial Statements (including
any notes thereto).  Such liabilities arose solely in connection with
the business of the Company.

     

    2.19. Litigation.  Schedule
2.19 contains a listing of any and all suits, actions or proceedings pending,
or, to the best knowledge of the Company, threatened against the Company and any
and all judgments, decrees, injunctions, rules or orders of any court,
governmental department, commission, agency, instrumentality or arbitrator
outstanding against the Company (or any of the Company's directors and/or
officers).

     

    2.20. Employment and ERISA
Matters.  Except as described on Schedule 2.20, neither the
Company nor any controlled corporation or affiliated service group (within the
meaning of Sections 414(b), (c) and (m) of the Internal Revenue Code of
1986, as amended, maintains or has maintained any employee benefit pension plan
(as defined in Section 3(37) of ERISA) since the effective date of
ERISA.  There is no suit, action or proceeding pending, or to the best
knowledge of Company, threatened against the Company relating to ERISA matters
which, if adversely determined, would materially and adversely affect the
business, operations, or properties or the condition, financial or otherwise, of
the Company.  The Company has no liabilities pursuant to
ERISA.

     

    2.21. Licenses, Permits,
Etc.  The Company possesses all material licenses, permits
and/or other authorizations and approvals (each, a “Permit”) necessary to
conduct its business.  All such Permits are valid and in full force
and effect. No violations are or have been recorded in respect of any Permit, no
event has occurred or set of facts exist that would allow revocation or
termination or that would result in the impairment of the Company's rights with
respect to any such Permit, and no proceeding is pending or, to the best
knowledge of the Company, threatened, to revoke, limit or enforce any
Permit.

     

    2.22. Taxes and Related
Matters.  All returns and/or reports required by any taxing
authority from the Company have been or will be timely filed, and all taxes
required to have been paid (regardless of whether shown as due on such returns
or reports) have been paid or adequately accrued for in the financial
statements.  Further, with respect to any payment to a third party, in
addition to the foregoing, the Company has withheld from such payment and paid
over to the proper governmental authorities all amounts required to be so
withheld and paid over.

     

    2.23. Full
Disclosure.  No representation or warranty by the Company
contained in this Agreement, and no written statement, certificate, or document
furnished by or on behalf of Company to Purchaser in connection with this
Agreement, any Related Agreement or any transaction contemplated hereby or
thereby, contains, as of the date on which made or reaffirmed, any untrue
statement of a material fact or omits to state a material fact necessary in
order to make the statements contained herein or therein, in light of the
circumstances under which such statements were made, not misleading or necessary
in order to provide a prospective purchaser of the Debenture and Warrants with
full information as to the Company's business.  Neither this
Agreement, any Related Agreement, any financial statements and/or other
financial information, or any schedule, exhibit or certificate delivered in
accordance with the terms hereof, or any document or statement in writing which
has been supplied by or on behalf of the Company, or by any of Company's
directors or officers, in connection with the transactions contemplated hereby,
contain, any untrue statement of a material fact, or omits, or will omit, any
statement of a material fact necessary in order to make the statements contained
herein or therein not misleading.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    2.24. Survival.  The
representations and warranties of the Company set forth in this Section 2 shall
survive the Closing for the periods set forth in Section 5.1 below.

    3. REPRESENTATIONS AND
WARRANTIES OF PURCHASER.  In order to induce the Company to
issue the Purchased Securities to Purchaser, Purchaser represents and warrants
to the Company that it is acquiring the Purchased Securities solely for its own
account for the purpose of investment and not with a view to resale or
distribution thereof. The Purchaser will not sell, pledge or otherwise transfer
any of the Purchased Securities unless the Purchased Securities have been
registered under the Securities Act of 1933, as amended (the "Securities Act"),
and applicable state securities laws or unless it shall have delivered to the
Company an opinion of counsel, in form and substance reasonably satisfactory to
the Company, to the effect that exemptions from the registration requirements of
the Securities Act and such state laws are available for the proposed
transaction.

     

    3.1. Proper Authorization and
Execution.  The execution, delivery and performance of this
Agreement and the Related Agreements, and consummation of the transactions
contemplated hereby have been duly authorized and approved by
Purchaser.

     

    3.2. Accredited Invetor
Status.  The Purchaser is
an “accredited investor” as that term is defined in Rule 501(a) of Regulation
D.

     

    3.3. Reliance on
Exemptions.  The Purchaser understands that the Purchased
Securities are being offered and sold to it in reliance upon specific exemptions
from the registration requirements of United States federal and state securities
laws and that the Company is relying upon the truth and accuracy of, and the
Purchaser’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of the Purchaser set forth herein in order to
determine the availability of such exemptions and the eligibility of the
Purchaser to acquire the Purhased Securities.

     

    3.4. Survival.  The
representations and warranties of Purchaser set forth in this Section 3 shall
survive the Closing for the period set forth in Section 5.2 below.

     

    4. CLOSING.  The
transactions contemplated by this Agreement shall be consummated (the “Closing”)
simultaneously with the execution of this Agreement.  At the
Closing:

    The
Company shall deliver or cause to be delivered to Purchaser:

     

    i)           the
Debenture, free and clear of any and all Liens;

    ii)           a
certificate or certificates representing the Warrants, free and clear of any and
all Liens;

    iii)           certificates
of good standing from the Secretary of State of Nevada and Florida, to the
effect that each of the Company and U.S. Imaging (including its subsidiaries) is
in good standing;

    iv)           copies
of resolutions of the Board of Directors of the Company authorizing this
Agreement and the issuance of the Debenture and the Warrants, certified by the
Secretary of the Company; and

    v)           such
other documents as Purchaser may reasonably require to give effect to the
transactions contemplated hereby.

    The
Purchaser shall deliver to the Company the Purchase Price.

     

    5. INDEMNIFICATION AND
ADJUSTMENTS.

     

    5.1. Company’s
Indemnification.  The Company hereby agrees to indemnify
Purchaser against all Claims (as defined below) and all costs, expenses and
attorney’s fees incurred by any of them in the defense of any such Claims or any
action or proceeding brought on any of such Claims.  For purposes of
this paragraph, “Claims” shall mean
all liabilities, damages, losses, costs, expenses, out-of-pocket attorney’s fees
and claims incurred by Purchaser arising from (i) any breach or default in the
performance of any obligation to be performed by the Company under this
Agreement; or (ii) any breach of any representation, warranty or covenant
of the Company set forth in this Agreement. Notwithstanding the foregoing,
Purchaser shall not be entitled to indemnification for any Claims asserted after
the Expiration Date.  “Expiration Date”
means the end of the 24th month
following the Closing.

     

    5.2. Purchaser’s
Indemnification.  Purchaser hereby indemnifies the Company
against all Company Claims (as defined below) and all costs, expenses and
attorney’s fees incurred by it in the defense of any such Company Claims or any
action or proceeding brought on any of such Seller Claims.  For
purposes of this paragraph, “Company Claims” shall
mean all liabilities, damages, losses, costs, expenses, attorney’s fees and
claims incurred by Company to the extent arising solely from (i) any breach or
default in the performance of any obligation to be performed by Purchaser under
this Agreement; or (ii) any breach of any representation, warranty or
covenant of Purchaser set forth in this Agreement.  Notwithstanding
the foregoing, Company shall not be entitled to indemnification for any Company
Claims asserted after the 24th month
following the Closing Date.

     

    5.3. EBITDA
ADJUSTMENT.  In the event that
the audited Financial Statements of  U.S. Imaging reflect EBITDA of
less than $1,305,343 for the year ended December 31, 2007 (the "Actual EBITDA"),
the conversion price and exercise price of the Debenture and Warrants will be
reduced by a percentage equal to the Actual EBITDA divided by
$1,305,343.

     

    6. PIGGY-BACK REGISTRATIONS/USE
OF PROCEEDS. 

     

    6.1. If at any
time while the Warrants are outstanding (the “Piggy-Back Period”) the Company
proposes to file with the SEC a Registration Statement relating to an offering
for its own account or the account of others under the Securities Act of 1933,
as amended, of any of its securities (other than a Registration Statement on
Form S-4 or Form S-8 (or their equivalents at such time) relating to securities
to be issued solely in connection with any acquisition of any entity or business
or equity securities issuable in connection with stock option or other employee
benefit plans), the Company shall promptly send to the Purchaser written notice
of the Company’s intention to file a Registration Statement (which notice shall
specify the securities intended to be disposed of and the intended method of
distribution thereof) and of such Purchaser’s rights under this Section and, if
within five (5) business days after receipt of such notice, such Purchaser shall
so request in writing, the Company shall include in such Registration Statement
all or any part of the Shares of Common Stock of the Company issuable upon
exercise of the Warrants or conversion of the Debenture that such Purchaser
requests to be registered; provided, however, in the event that the SEC limits
the number of share registerable as a result of Rule 415, then the Company may
reduce the number of shares that may be registered pro rata with other selling
shareholders holding derivative securities.  If the offering in connection
with which the Purchaser is entitled to registration under this Section is an
underwritten offering, then the Purchaser shall, unless otherwise agreed to by
the Company, offer and sell such its securities in such underwritten offering
using the same underwriter or underwriters and, subject to the provisions of
this Agreement, on the same terms and conditions as other shares of Common Stock
(if any) included in such underwritten offering.  If a registration
pursuant to this Section is to be an underwritten public offering and the
managing underwriter(s) advise the Company in writing that, in their reasonable
good faith opinion, marketing or other factors dictate that a limitation on the
number of shares of Common Stock which may be included in the Registration
Statement is necessary to facilitate and not adversely affect the proposed
offering, then the Company shall include in such registration: (1) first, all
securities the Company proposes to sell for its own account and (2) up to the
full number of shares held by the Purchaser  subject to restrictions set by
the Company or the underwriter applied pro rata with other selling
shareholders.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    6.2. The
proceeds form the sale of the Debenture shall be utilized substantially as
follows:

     

    
      	 Cypress
      Advisors Fee 	 	$	100,000	 
	 Audit &
      Legal Fees	 	$	150,000	 
	 Equipment
      Maintenance Fees    	 	$	250,000	 
	 Working
      Capital 	 	$	500,000	 

    

     

     

    7. General
Provisions.

     

    7.1. Entire
Agreement.  This Agreement constitutes the entire agreement
between the parties pertaining to the subject matter contained herein and
supersedes all prior and contemporaneous agreements, representations and
understandings of the parties with respect to such subject matter.

     

    7.2. Amendment.  No
supplement, amendment, modification discharge or change of this Agreement shall
be binding unless executed in writing by all of the parties.

     

    7.3. Waiver.  No
waiver of any of the provisions of this Agreement shall be deemed, or shall
constitute, a waiver of any other provision, whether or not similar, nor shall
any waiver constitute a continuing waiver.  No failure to enforce any
right or provision hereunder shall preclude or affect the later enforcement of
such right or provision.  No waiver shall be binding unless executed
in writing by the party making the waiver.

     

    7.4. Assignment; Successors and
Assigns.  Neither party may assign this Agreement nor any of
its rights, liabilities and obligations hereunder without the prior written
consent of the other party; provided, however, Purchaser may transfer any of the
Purchased Securities, provided any such transfer is in compliance with
applicable law. All terms of this Agreement shall be binding on and shall inure
to the benefit of and be enforceable by the parties hereto and their respective
heirs, legal representatives, and permitted successors and assigns.

     

    7.5. Further
Assurances.  Each party to this Agreement agrees to perform any
further acts and execute and deliver any further documents that may be
reasonably necessary to effectuate the provisions of this Agreement and as may
be reasonably requested by the other party after the Closing.

     

    7.6. Captions; Gender;
Exhibits.  Captions in this Agreement are included for
convenience of reference only and shall not affect the construction or
interpretation of any of the provisions of this Agreement.  The use of
the singular in this Agreement includes the plural and the use of one gender
includes the others whenever the context thereof so requires.  All
exhibits and schedules referred to herein and attached hereto are incorporated
as a part hereof.

     

    7.7. Severability.  If
any of the provisions, or portions thereof, of this Agreement or the application
thereof are held to be unenforceable or invalid by any court of competent
jurisdiction, the remainder of this Agreement shall not be affected thereby and
to this end only the provisions of this Agreement are declared
severable.

     

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

     

    7.9. Notices.  All
notices, requests, demands or other communications which a party shall be
required or may elect to provide to another party pursuant to this Agreement
shall be in writing unless otherwise so provided.  Any written notice
or communication shall be personally delivered or sent by facsimile or mailed
certified mail, return receipt requested to the other party at the applicable
address set forth on the signature page hereto or at such other address as a
party shall designate in accordance with the provisions of this
paragraph.  Delivery or service of any written notice or communication
shall be deemed completed (i) if personally delivered, upon such delivery;
(ii) if sent by facsimile, upon acknowledgment thereof; or (iii) if
mailed, upon receipt by the other party, but in any event within 72 hours after
transmission or deposit.

     

    7.10. Governing Law
Venue.  This Agreement, having been drafted and negotiated in
Florida, shall be governed by, construed and enforced in accordance with the
laws of the State of Florida.  Any disputes shall be resolved in the
Florida State courts in Dade County, Florida

     

    7.11. Attorneys’
Fees.  In the event any attorney is employed by either party to
this Agreement with regard to any legal action, or other proceeding brought by
either party for the enforcement or interpretation of this Agreement, or because
of any alleged dispute, breach, default or misrepresentation with any provisions
of this Agreement, the party prevailing in any such proceeding shall be entitled
to recover reasonable out-of-pocket attorneys’ fees and other costs and expenses
incurred, in addition to any other relief to which it may be
entitled.

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

    7.12. Survival of Representations
and Warranties.  All representations, warranties, covenants and
agreements of the parties contained in this Agreement and the exhibits shall
survive the Closing.

     

    7.13. Remedies. The rights
and remedies provided by this Agreement are cumulative, and the use of any one
right or remedy by any party hereto shall not preclude or constitute a waiver of
its right to use any or other remedies. Such rights and remedies are given in
addition to any other rights and remedies a party may have by law, statute or
otherwise.

    IN WITNESS WHEREOF, the
Parties hereto have executed this Agreement as of the day and year first above
written.

     

    
      	 
      	 
      	
              PURCHASER:

               

              STEVEN
      POSNER IRREVOCABLE TRUST, U/T/A

              
                
      

              By:/s/
      Steven Posner

              Steven
      Posner, Trustee

            
	 
      	 
      	
               

              Address
      for Notices:

               

               

               

            
	 
      	 
      	
              With
      a copy to:

               

              Leonard
      H. Bloom, Esq.

              Akerman
      Senterfitt

              One
      Southeast Third Avenue, 25th
      Floor

              Miami,
      FL 33131

            
	 	 	 
	 	 	COMPANY:
	 	 	 
	 	 	
              FIRSTWAY
      ENTERPRISES, INC.

               

              By:/s/
      Dr. Stephen Miley

              Name: Dr.
      Stephen Miley

              Title: CEO

            
	 	 	 
	 	 	Address
      for Notices:
	 	 	600
      North Cattleman Road
	 	 	Sarasota,
      Florida  34232
	 	 	 
	 	 	With
      a copy to:
	 	 	 
	 	 	Law
      Offices of Stephen M. Fleming PLLC
	 	 	403
      Merrick Avenue, 2nd
      Floor
	 	 	East
      Meadow, New York  11554
	 	 	 

    

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

     

     

    

    SCHEDULES

     

     

     

    
    

     

    
      	2.7  	Title to
      Assets
	 	 
	2.11.1 	Leased Real
      Properties
	 	 
	2.12.1 	Intellectual
      Property
	 	 
	2.13 	Material
      Contracts
	 	 
	2.15.6 	Required Permits,
      Licenses, etc.
	 	 
	2.15.8	Harm to
      Patients
	 	 
	2.16.1 	Financial
      Statements
	 	 
	2.19 	Litigation
	 	 
	2.20    	Employee Benefit
      Pension Plans

    

     

                        

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

                                   

                                   

                                   

                                   

                  

                                   

                                   

                                 

    EXHIBITS

    

     

    
      	A	DEBENTURE
	 	 
	B 	WARRANTS

    

     

                          

     

     

     

    11ex42.htm

    Exhibit
4.2

     

     

    

     

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  THE SECURITIES MAY
NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL IN FORM,
SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR UNLESS SOLD PURSUANT TO RULE
144 OR REGULATION S UNDER SAID ACT.

     

    CONVERTIBLE
NOTE

     

    Sarasota,
FL

    
    

     

    
      	May 2,
2008	 	 	
               $1,000,000

            

    

     

     

     

    FOR VALUE RECEIVED, FIRSTWAY ENTERPRISES, INC., a
Delaware corporation (hereinafter called the “Borrower”), hereby promises to
pay to the order of STEVEN
POSNER IRREVOCABLE TRUST U/T/A/ or registered assigns (the “Holder”) the sum of
$1,000,000, on May 2, 2010 (the “Maturity Date”), and to pay
interest on the unpaid principal balance hereof at the rate of twelve percent
(12%) per annum from May 2, 2008 (the “Issue Date”) until the same
becomes due and payable, whether at maturity or upon acceleration or by
prepayment or otherwise.  If an Event of Default exists, this Note
shall bear interest at the maximum permitted rate allowed by the State of
Florida per annum from the due date thereof until such time that the Event of
Default is cured (“Default
Interest”).  Interest shall commence accruing on the issue
date, shall be computed on the basis of a 365-day year and the actual number of
days elapsed and shall be payable quarterly on March 31, June 30, September
30 and December 31 of each year beginning on June 30, 2008.  All
payments due hereunder (to the extent not converted into common stock, $.0001
par value per share, of the Borrower (the “Common Stock”) in accordance
with the terms hereof) shall be made in lawful money of the United States of
America.  All payments shall be made at such address as the Holder
shall hereafter give to the Borrower by written notice made in accordance with
the provisions of this Note.  Whenever any amount expressed to be due
by the terms of this Note is due on any day which is not a business day, the
same shall instead be due on the next succeeding day which is a business day
and, in the case of any interest payment date which is not the date on which
this Note is paid in full, the extension of the due date thereof shall not be
taken into account for purposes of determining the amount of interest due on
such date.  As used in this Note, the term “business day” shall mean
any day other than a Saturday, Sunday or a day on which commercial banks in the
city of New York, New York are authorized or required by law or executive order
to remain closed.  Each capitalized term used herein, and not
otherwise defined, shall have the meaning ascribed thereto in that certain
Securities Purchase Agreement, dated May 2, 2008, pursuant to which this Note
was originally issued (the “Purchase
Agreement”).

     

    The
following terms shall apply to this Note:

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    ARTICLE
I.CONVERSION RIGHTS

     

    1.1 Conversion
Right.  The Holder shall
have the right from time to time, and at any time on or prior to the Maturity
Date to convert all or any part of the outstanding and unpaid principal amount
of this Note into fully paid and non-assessable shares of Common Stock, as such
Common Stock exists on the Issue Date, or any shares of capital stock or other
securities of the Borrower into which such Common Stock shall hereafter be
changed or reclassified at the conversion price  (the “Conversion Price”) determined
as provided herein (a “Conversion”); provided, however, that in no
event shall the Holder be entitled to convert any portion of this Note in excess
of that portion of this Note upon conversion of which the sum of (1) the number
of shares of Common Stock beneficially owned by the Holder and its affiliates
(other than shares of Common Stock which may be deemed beneficially owned
through the ownership of the unconverted portion of the Notes or the unexercised
or unconverted portion of any other security of the Borrower (including, without
limitation, the warrants issued by the Borrower pursuant to the Purchase
Agreement) subject to a limitation on conversion or exercise analogous to the
limitations contained herein) and (2) the number of shares of Common Stock
issuable upon the conversion of the portion of this Note with respect to which
the determination of this proviso is being made, would result in beneficial
ownership by the Holder and its affiliates of more than 4.9% of the outstanding
shares of Common Stock.  For purposes of the proviso to the
immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended, and Regulations 13D-G thereunder, except as otherwise provided in
clause (1) of such proviso.  The number of shares of Common Stock to
be issued upon each conversion of this Note shall be determined by dividing the
Conversion Amount (as defined below) by the applicable Conversion Price then in
effect on the date specified in the notice of conversion, in the form attached
hereto as Exhibit A (the “Notice of Conversion”),
delivered to the Borrower by the Holder in accordance with Section 1.3 below;
provided that the Notice of Conversion is submitted by facsimile (or by other
means resulting in, or reasonably expected to result in, notice) to the Borrower
before 6:00 p.m., New York, New York time on such conversion date (the “Conversion
Date”).  The term “Conversion Amount” means, with
respect to any conversion of this Note, the sum of (1) the principal amount of
this Note to be converted in such conversion plus (2) accrued and
unpaid interest, if any, on such principal amount at the interest rates provided
in this Note to the Conversion Date plus (3) Default
Interest, if any, on the amounts referred to in the immediately preceding
clauses (1) and/or (2).

     

    1.2 Conversion
Price.

     

    The Conversion Price shall be $0.18
(the “Conversion Price”).

     

    1.3 Method of
Conversion.

     

    (a) Mechanics
of Conversion.  Subject to
Section 1.1, this Note may be converted by the Holder in whole or in part at any
time from time to time after the Issue Date, by (A) submitting to the
Borrower a Notice of Conversion (by facsimile or other reasonable means of
communication dispatched on the Conversion Date prior to 6:00 p.m., New York,
New York time) and (B) subject to Section 1.3(b), surrendering this Note at
the principal office of the Borrower.

     

    (b) Surrender
of Note Upon Conversion.  Notwithstanding
anything to the contrary set forth herein, upon conversion of this Note in
accordance with the terms hereof, the Holder shall not be required to physically
surrender this Note to the Borrower unless the entire unpaid principal amount of
this Note is so converted.

     

     

     

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    (c) Payment
of Taxes.  The Borrower
shall not be required to pay any tax which may be payable in respect of any
transfer involved in the issue and delivery of shares of Common Stock or other
securities or property on conversion of this Note in a name other than that of
the Holder (or in street name), and the Borrower shall not be required to issue
or deliver any such shares or other securities or property unless and until the
person or persons (other than the Holder or the custodian in whose street name
such shares are to be held for the Holder’s account) requesting the issuance
thereof shall have paid to the Borrower the amount of any such tax or shall have
established to the satisfaction of the Borrower that such tax has been
paid.

     

    (d) Delivery
of Common Stock Upon Conversion.  Upon receipt by
the Borrower from the Holder of a facsimile transmission (or other reasonable
means of communication) of a Notice of Conversion meeting the requirements for
conversion as provided in this Section 1.3, the Borrower shall issue and deliver
or cause to be issued and delivered to or upon the order of the Holder
certificates for the Common Stock issuable upon such conversion within two (2)
business days after such receipt (and, solely in the case of conversion of the
entire unpaid principal amount hereof, surrender of this Note) (such second
business day being hereinafter referred to as the “Deadline”) in accordance with
the terms hereof and the Purchase Agreement.  In the event the
Borrower fails to issue and deliver or cause to be issued and delivered to or
upon the order of the Holder the requisite certificates for the Common Stock,
Borrower shall receive $1,000 per day (the "Conversion Default
Payment").

     

    1.4 Concerning
the Shares.  The shares of
Common Stock issuable upon conversion of this Note may not be sold or
transferred unless  (i) such shares are sold pursuant to an effective
registration statement under the Act or (ii) the Borrower or its transfer agent
shall have been furnished with an opinion of  counsel (which opinion
shall be in form, substance and scope customary for opinions of counsel in
comparable transactions) to the effect that the shares to be sold or transferred
may be sold or transferred pursuant to an exemption from such registration or
(iii) such shares are sold or transferred pursuant to Rule 144 under the
Act (or a successor rule) (“Rule 144”) or (iv) such shares
are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who
agrees to sell or otherwise transfer the shares only in accordance with this
Section 1.4 and who is an Accredited Investor (as defined in the Purchase
Agreement).  Except as otherwise provided in the Purchase Agreement
(and subject to the removal provisions set forth below), until such time as the
shares of Common Stock issuable upon conversion of this Note have been
registered under the Act or otherwise may be sold pursuant to Rule 144 without
any restriction as to the number of securities as of a particular date that can
then be immediately sold, each certificate for shares of Common Stock issuable
upon conversion of this Note that has not been so included in an effective
registration statement or that has not been sold pursuant to an effective
registration statement or an exemption that permits removal of the legend, shall
bear a legend substantially in the following form, as appropriate:

     

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED.  THE SECURITIES MAY NOT BE SOLD,
TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE
AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR UNLESS SOLD PURSUANT TO RULE 144
OR REGULATION S UNDER SAID ACT.”

     

    1.5 Effect of Certain
Events.

     

    (a) Effect of
Merger, Consolidation, Etc.  At the option of
the Holder, the sale, conveyance or disposition of all or substantially all of
the assets of the Borrower, the effectuation by the Borrower of a transaction or
series of related transactions in which more than 50% of the voting power of the
Borrower is disposed of, or the consolidation, merger or other business
combination of the Borrower with or into any other Person (as defined below) or
Persons when the Borrower is not the survivor shall either:  (i) be
deemed to be an Event of Default (as defined in Article III) pursuant to which
the Borrower shall be required to pay to the Holder upon the consummation of and
as a condition to such transaction an amount equal to the Default Amount (as
defined in Article III) or (ii) be treated pursuant to Section 1.6(b)
hereof.  “Person” shall mean any
individual, corporation, limited liability company, partnership, association,
trust or other entity or organization.

     

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

     

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

     

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (d) Adjustment
Due to Dilutive Issuance.  Except with
respect to an Excluded Issuance (as defined below), if, at any time when any
Notes are issued and outstanding, the Borrower issues or sells, or in accordance
with this Section 1.5(d) hereof is deemed to have issued or sold, any shares of
Common Stock for no consideration or for a consideration per share (before
deduction of reasonable expenses or commissions or underwriting discounts or
allowances in connection therewith) less than the conversion price in effect on
the date of such issuance (or deemed issuance) of such shares of Common Stock (a
“Dilutive Issuance”),
then immediately upon the Dilutive Issuance, the conversion price will be
reduced to the amount of the consideration per share received by the Borrower in
such Dilutive Issuance; provided that only
one adjustment will be made for each Dilutive Issuance.  “Excluded Issuance” is
defined as the issuance of (a) shares of Common Stock or options to employees,
officers, consultants or directors of the Company pursuant to any stock or
option plan duly adopted by the Board of Directors of the Company, (b)
securities upon the exercise of or conversion of any securities issued
hereunder, (c) securities issued in connection with acquisitions or strategic
transactions or (d) securities issued as equity enhancements in connection with
standard non convertible debt transactions.

     

    1.6 Trading
Market Limitations.
Unless permitted by the applicable rules and regulations of the principal
securities market on which the Common Stock is then listed or traded, in no
event shall the Borrower issue upon conversion of or otherwise pursuant to this
Note and the other Notes issued pursuant to the Purchase Agreement more than the
maximum number of shares of Common Stock that the Borrower can issue pursuant to
any rule of the principal United States securities market on which the Common
Stock is then traded (the “Maximum Share Amount”), which
shall be 19.99% of the total shares outstanding on the Closing Date (as defined
in the Purchase Agreement), subject to equitable adjustment from time to time
for stock splits, stock dividends, combinations, capital reorganizations and
similar events relating to the Common Stock occurring after the date
hereof.

     

    1.7 Status as
Shareholder.  Upon submission
of a Notice of Conversion by a Holder, (i) the shares covered thereby (other
than the shares, if any, which cannot be issued because their issuance would
exceed such Holder’s allocated portion of the Reserved Amount or Maximum Share
Amount) shall be deemed converted into shares of Common Stock and (ii) the
Holder’s rights as a Holder of such converted portion of this Note shall cease
and terminate, excepting only the right to receive certificates for such shares
of Common Stock and to any remedies provided herein or otherwise available at
law or in equity to such Holder because of a failure by the Borrower to comply
with the terms  of this Note.  Notwithstanding the
foregoing, if a Holder has not received certificates for all shares of Common
Stock prior to the fifth (5th) business day after the expiration of the Deadline
with respect to a conversion of any portion of this Note for any reason, then
(unless the Holder otherwise elects to retain its status as a holder of Common
Stock by so notifying the Borrower) the Holder shall regain the rights of a
Holder of this Note with respect to such unconverted portions of this Note and
the Borrower shall, as soon as practicable, return such unconverted Note to the
Holder or, if the Note has not been surrendered, adjust its records to reflect
that such portion of this Note has not been converted.  In all cases,
the Holder shall retain all of its rights and remedies (including, without
limitation, (i) the right to receive Conversion Default Payments pursuant to
Section 1.3 to the extent required thereby for such Conversion Default and any
subsequent Conversion Default and (ii) the right to have the Conversion Price
with respect to subsequent conversions determined in accordance with Section
1.2) for the Borrower’s failure to convert this Note.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    ARTICLE II.CERTAIN
COVENANTS

     

    2.1 Distributions
on Capital Stock.  So long as the
Borrower shall have any obligation under this Note, the Borrower shall not
without the Holder’s written consent (a) pay, declare or set apart for such
payment, any dividend or other distribution (whether in cash, property or other
securities) on shares of capital stock other than dividends on shares of Common
Stock solely in the form of additional shares of Common Stock or (b) directly or
indirectly or through any subsidiary make any other payment or distribution in
respect of its capital stock except for distributions pursuant to any
shareholders’ rights plan which is approved by a majority of the Borrower’s
disinterested directors.

     

    2.2 Restriction
on Stock Repurchases.  So long as the
Borrower shall have any obligation under this Note, the Borrower shall not
without the Holder’s written consent redeem, repurchase or otherwise acquire
(whether for cash or in exchange for property or other securities or otherwise)
in any one transaction or series of related transactions any shares of capital
stock of the Borrower or any warrants, rights or options to purchase or acquire
any such shares.

     

    2.3 Sale of
Assets.  So long as the
Borrower shall have any obligation under this Note, the Borrower shall not,
without the Holder’s written consent, sell, lease or otherwise dispose of any
significant portion of its assets outside the ordinary course of
business.  Any consent to the disposition of any assets may be
conditioned on a specified use of the proceeds of disposition.

     

    2.4 Advances
and Loans.  So long as the
Borrower shall have any obligation under this Note, the Borrower shall not,
without the Holder’s written consent, lend money, give credit or make advances
to any person, firm, joint venture or corporation, including, without
limitation, officers, directors, employees, subsidiaries and affiliates of the
Borrower, except loans, credits or advances (a) in existence or committed on the
date hereof and which the Borrower has informed Holder in writing prior to the
date hereof, (b) made in the ordinary course of business or (c) not in excess of
$50,000.

     

     

    ARTICLE III.EVENTS
OF DEFAULT

     

    If any of
the following events of default (each, an “Event of Default”) shall
occur:

     

    3.1 Failure
to Pay Principal or Interest.  The Borrower
fails to pay the principal hereof or interest thereon when due on this Note and
such failure is not cured within ten (10) days of such event;

     

    3.2 Receiver
or Trustee.  The Borrower or
any subsidiary of the Borrower shall make an assignment for the benefit of
creditors, or apply for or consent to the appointment of a receiver or trustee
for it or for a substantial part of its property or business, or such a receiver
or trustee shall otherwise be appointed;

     

    3.3 Judgments.  Any money
judgment, writ or similar process shall be entered or filed against the Borrower
or any subsidiary of the Borrower or any of its property or other assets for
more than $50,000, and shall remain unvacated, unbonded or unstayed for a period
of twenty (20) days unless otherwise consented to by the Holder;

     

    3.4 Bankruptcy.  Bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings for
relief under any bankruptcy law or any law for the relief of debtors shall be
instituted by or against the Borrower or any subsidiary of the
Borrower;

     

    3.5 SEC
Filings.  The Borrower fails to timely file with the Securities
and Exchange Commission ("SEC"), periodic and other reports required under
Section 13 of the Securities Exchange Act of 1934, as amended, and the rules
promulgated thereunder except for the Form 8-K Current Report to be filed in
connection with the acquisition of US Imaging Holding LLC;

     

    3.6 Financing.  The
sale by the Borrower of equity or debt, for proceeds in excess of $5,000,000 in
either a single or series of transactions if the Borrower does not pay off all
amounts due under this Note upon closing of such transaction; and

     

    3.7 Material
Breach.  The Borrower breaches a material representation,
warranty or covenant in that certain Securities Purchase Agreement dated May 2,
2008 between the parties, or in the Warrants issued to Borrower in connection
therewith,

     

    then,
upon the occurrence and during the continuation of any Event of Default, at the
option of the Holder through the delivery of written notice to the Borrower by
such Holder (the “Default
Notice”), the Note shall become immediately due and payable and the
Borrower shall pay to the Holder all outstanding principal and accrued interest
in full satisfaction of its obligations hereunder.

     

     

    ARTICLE
IV.MISCELLANEOUS

     

    4.1 Failure
or Indulgence Not Waiver.  No failure or
delay on the part of the Holder in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privileges.  All
rights and remedies existing hereunder are cumulative to, and not exclusive of,
any rights or remedies otherwise available.

     

    4.2 Notices.  Any notice herein
required or permitted to be given shall be in writing and may be personally
served or delivered by courier or sent by United States mail and shall be deemed
to have been given upon receipt if personally served (which shall include
telephone line facsimile transmission) or sent by courier or three (3) days
after being deposited in the United States mail, certified, with postage
pre-paid and properly addressed, if sent by mail.  For the purposes
hereof, the address of the Holder shall be as shown on the records of the
Borrower; and the address of the Borrower shall be 600 North Cattleman Road,
Sarasota, Florida  34232, facsimile number: 941-342-0505. Both the
Holder and the Borrower may change the address for service by service of written
notice to the other as herein provided.

     

    4.3 Amendments.  This Note and any
provision hereof may only be amended by an instrument in writing signed by the
Borrower and the Holder.  The term “Note” and all reference thereto,
as used throughout this instrument, shall mean this instrument as originally
executed, or if later amended or supplemented, then as so amended or
supplemented.

     

    4.4 Assignability.  This Note shall
be binding upon the Borrower and its successors and assigns, and shall inure to
be the benefit of the Holder and its successors and assigns.  Each
transferee of this Note must be an “accredited investor” (as defined in Rule
501(a) of the 1933 Act).  Notwithstanding anything in this Note to the
contrary, this Note may be pledged as collateral in connection with a bona fide margin account
or other lending arrangement.

     

    4.5 Cost of
Collection.  If default is
made in the payment of this Note, the Borrower shall pay the Holder hereof costs
of collection, including reasonable attorneys’ fees.

     

    4.6 Governing
Law.  THIS NOTE SHALL
BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF FLORIDA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN
SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS.  THE
BORROWER HEREBY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE FLORIDA STATE
COURTS LOCATED IN DADE COUNTY, FLORIDA WITH RESPECT TO ANY DISPUTE ARISING UNDER
THIS NOTE, THE AGREEMENTS ENTERED INTO IN CONNECTION HEREWITH OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH SUIT OR
PROCEEDING.  BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS UPON A
PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE
SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR
PROCEEDING.  NOTHING HEREIN SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.  BOTH PARTIES AGREE THAT
A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT
OR IN ANY OTHER LAWFUL MANNER.  THE PARTY WHICH DOES NOT PREVAIL IN
ANY DISPUTE ARISING UNDER THIS NOTE SHALL BE RESPONSIBLE FOR ALL FEES AND
EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY IN
CONNECTION WITH SUCH DISPUTE.  THE PARTIES HERETO EXPRESSLY WAIVE ANY
RIGHT TO A TRIAL BY JURY.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

     

    4.7 Certain
Amounts.  Whenever pursuant
to this Note the Borrower is required to pay an amount in excess of the
outstanding principal amount (or the portion thereof required to be paid at that
time) plus accrued and unpaid interest plus Default Interest on such interest,
the Borrower and the Holder agree that the actual damages to the Holder from the
receipt of cash payment on this Note may be difficult to determine and the
amount to be so paid by the Borrower represents stipulated damages and not a
penalty and is intended to compensate the Holder in part for loss of the
opportunity to convert this Note and to earn a return from the sale of shares of
Common Stock acquired upon conversion of this Note at a price in excess of the
price paid for such shares pursuant to this Note.  The Borrower and
the Holder hereby agree that such amount of stipulated damages is not plainly
disproportionate to the possible loss to the Holder from the receipt of a cash
payment without the opportunity to convert this Note into shares of Common
Stock.

     

    4.8 Denominations.  At the request of
the Holder, upon surrender of this Note, the Borrower shall promptly issue new
Notes in the aggregate outstanding principal amount hereof, in the form hereof,
in such denominations of at least $50,000 as the Holder shall
request.

     

    4.9 Notice of
Corporate Events.  Except as
otherwise provided below, the Holder of this Note shall have no rights as a
Holder of Common Stock unless and only to the extent that it converts this Note
into Common Stock.  The Borrower shall provide the Holder with prior
notification of any meeting of the Borrower’s shareholders (and copies of proxy
materials and other information sent to shareholders).  In the event
of any taking by the Borrower of a record of its shareholders for the purpose of
determining shareholders who are entitled to receive payment of any dividend or
other distribution, any right to subscribe for, purchase or otherwise acquire
(including by way of merger, consolidation, reclassification or
recapitalization) any share of any class or any other securities or property, or
to receive any other right, or for the purpose of determining shareholders who
are entitled to vote in connection with any proposed sale, lease or conveyance
of all or substantially all of the assets of the Borrower or any proposed
liquidation, dissolution or winding up of the Borrower, the Borrower shall mail
a notice to the Holder, at least twenty (20) days prior to the record date
specified therein (or thirty (30) days prior to the consummation of the
transaction or event, whichever is earlier), of the date on which any such
record is to be taken for the purpose of such dividend, distribution, right or
other event, and a brief statement regarding the amount and character of such
dividend, distribution, right or other event to the extent known at such
time.

     

    4.10 Remedies.  The Borrower
acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Holder, by vitiating the intent and purpose of the
transaction contemplated hereby.  Accordingly, the Borrower
acknowledges that the remedy at law for a breach of its obligations under this
Note will be inadequate and agrees, in the event of a breach or threatened
breach by the Borrower of the provisions of this Note, that the Holder shall be
entitled, in addition to all other available remedies at law or in equity, and
in addition to the penalties assessable herein, to an injunction or injunctions
restraining, preventing or curing any breach of this Note and to enforce
specifically the terms and provisions thereof, without the necessity of showing
economic loss and without any bond or other security being
required.

     

    IN WITNESS WHEREOF, Borrower
has caused this Note to be signed in its name by its duly authorized officer
this 2nd day of
May, 2008.

     

    
      
        	 	FIRSTWAY ENTERPRISES,
      INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Stephen
      Miley	 
	 	 	Stephen
      Miley	 
	 	 	Chief
      Executive Officer	 
	 	 	 	 

      

     

    

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

     

    EXHIBIT
A

     

    NOTICE
OF CONVERSION

     

    (To be
Executed by the Registered Holder

     

    in order
to Convert the Notes)

     

    The
undersigned hereby irrevocably elects to convert $__________ principal amount of
the Note (defined below) into shares of common stock, par value $.0001 per share
(“Common Stock”), of
Firstway Enterprises, Inc., a Delaware corporation (the “Borrower”) according to the
conditions of the convertible Note of the Borrower dated May 2, 2008 (the “Note”), as of the date
written below.  If securities are to be issued in the name of a person
other than the undersigned, the undersigned will pay all transfer taxes payable
with respect thereto and is delivering herewith such certificates.  No
fee will be charged to the Holder for any conversion, except for transfer taxes,
if any.  A copy of each Note is attached hereto (or evidence of loss,
theft or destruction thereof).

     

    The
Borrower shall electronically transmit the Common Stock issuable pursuant to
this Notice of Conversion to the account of the undersigned or its nominee with
DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).

     

    Name of
DTC Prime
Broker:                                                                                                                     

    Account
Number:                                                                                                                     

     

    In lieu
of receiving shares of Common Stock issuable pursuant to this Notice of
Conversion by way of a DWAC Transfer, the undersigned hereby requests that the
Borrower issue a certificate or certificates for the number of shares of Common
Stock set forth below (which numbers are based on the Holder’s calculation
attached hereto) in the name(s) specified immediately below or, if additional
space is necessary, on an attachment hereto:

     

    Name:                                                                                                                     

    Address:                                                                                                                     

     

    The
undersigned represents and warrants that all offers and sales by the undersigned
of the securities issuable to the undersigned upon conversion of the Note shall
be made pursuant to registration of the securities under the Securities Act of
1933, as amended (the “Act”), or pursuant to an
exemption from registration under the Act.

     

    Date of
Conversion:___________________________

    Applicable
Conversion Price:____________________

    Number of
Shares of Common Stock to be Issued Pursuant to

    Conversion
of the Notes:______________

    Signature:___________________________________

    Name:______________________________________

    Address:____________________________________

     

    

     

    

     

    The
Borrower shall issue and deliver shares of Common Stock to an overnight courier
not later than two business days following receipt of the original Note(s) to be
converted, and shall make payments pursuant to the Notes for the number of
business days such issuance and delivery is late.

     

    

    8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}]]