Document:

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

 EXHIBIT 10.44 
  
 MOBILE PET SYSTEMS, INC. 
 EMPLOYMENT AGREEMENT 
  
 SECTION ONE 
  
 PARTIES 

 
 1.1.    This Employment Agreement (this “Agreement”) is made and entered into, and is effective,
as of July 1, 2002 (the “Effective Date”), between Mobile PET Systems, Inc., a Delaware corporation (the “Company”), and Thomas H. Insley, an individual (the “Executive”). 
  
 SECTION TWO 
  
 RECITALS 
  
 2.1.    This Agreement is made with reference to the
following facts and circumstances: 
  
 (a)  The Company desires to employ the Executive on
the terms and subject to the conditions set forth below. 
  
 (b)  The Executive desires to
be employed by the Company on the terms and subject to the conditions set forth below. 
  
 2.2.    In consideration of these recitals and the mutual promises set forth below, the Company hereby employs the Executive, and the Executive hereby accepts this employment, on the terms and subject to the
conditions set forth in this Agreement. 
  
 SECTION THREE 
  
 THE EXECUTIVE’S DUTIES 
  
 3.1.    Position.    The Company shall employ the Executive as the Company’s Chief Financial Officer. 
  
 3.2.    Duties.    The Executive shall have the responsibilities and perform the duties normally attendant to such position,
subject to the direction of the Company’s Chief Executive Officer (the “CEO”), who shall be the Executive’s immediate supervisor, and of the Company’s Board of Directors (the “Board”). The Executive shall also have
such additional responsibilities and duties for the Company and its subsidiaries, consistent with his position and expertise, as may be assigned to the Executive from time to time by the CEO or the Board. By way of illustration only, and not by way
of limitation, the parties presently anticipate that the Executive will be requested to serve as a member of the Board, and the Executive agrees to serve as a member of the Board if so requested. 
  

3.3.    Full Time Employment.    The Executive shall devote his full energies, interest, abilities and productive time
to the performance of his duties under this Agreement and shall not, without the Company’s prior written consent, render to others services of any kind for compensation or engage in any other business activity that would, in either case,
interfere with the performance of his duties under this Agreement. The Company hereby consents to the Executive’s continued service as a member of the Board of Directors of NexPrise, Inc. (the “NexPrise Board”), as a member and the
chairperson of the audit committee of the NexPrise Board and as a member of the compensation committee of the NexPrise Board, as well as on the governing bodies of those charities for which the Employee presently serves; but the Executive

 

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 expressly agrees (and acknowledges that the Company’s aforementioned consent is subject to such
agreement) that he shall perform such functions in such a manner so as to not interfere either with the performance by him of his duties hereunder or adversely reflect upon the Company or its subsidiaries. 
  
 3.4.    No Competition During Employment.    During the term of his employment by the
Company, the Executive shall not, directly or indirectly, whether as a partner, employee, shareholder, investor or otherwise, promote, participate or engage in any activity or other business that directly or indirectly competes with the business of
the Employer or its subsidiaries. In addition, the Executive, while employed by the Company, shall not take any action without the Employer’s prior written consent to establish, form or become employed by any competing business on termination
of his employment by the Company. 
  
 3.5.    Place of
Employment.    The Executive shall perform the services he is required to perform under this Agreement at the Company’s executive offices as established from time to time by the Board; provided, however, that the
Executive may be required from time to time to travel in connection with the performance of his duties for the Company and its subsidiaries. 
  
 SECTION FOUR 
  
 TERM OF EMPLOYMENT 
  
 4.1.    Term.    The term of this Agreement (the “Term”) shall be for a period of
five years beginning on July 1, 2002, and ending on June 30, 2007, unless terminated as provided in Section Eight hereof. 
  
 SECTION FIVE 
  
 COMPENSATION 
  
 5.1.    Base Salary.    The Company shall pay the Executive a base salary (“Salary”) at the rate of $175,000 per
annum. The Company shall pay such Salary in arrears in accordance with the Company’s standard payroll practices in effect from time to time. The Executive’s Salary shall be reviewed and considered for possible increase by the Board based
upon its determination and evaluation of his performance and such other factors, if any, as it may deem appropriate, not less frequently than annually. 
  
 5.2.    Discretionary Bonus.    The Board shall also not less frequently than annually consider awarding the Executive a discretionary bonus based on its
determination and evaluation of his performance, and such other factors, if any, as it may deem appropriate. 
  
 5.3.    Nonqualified Options.    Concurrently and as of even date herewith, the Company shall grant to the Executive non-qualified options or warrants (“Options”) covering
1,000,000 shares (the “Option Shares”) of the Company’s common stock, $.0001 par value (the “Common Stock”). The Options shall vest in equal monthly installments over the five-year period commencing on the Effective Date
(e.g., first monthly vesting will occur on August 1, 2002), subject to the Executive continuing to be employed hereunder at the time specified for vesting, shall be exercisable to the extent then vested and shall be exercisable at an exercise price

 

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 (“Exercise Price”) per Option Share equal to the fair market value of a share of Common Stock on the date hereof (which, for purposes
of this Agreement, shall be deemed to be the greater of average closing price of the Common Stock in the principal market in which it is being traded during the five trading days immediately preceding the date hereof or $.60) and shall expire to the
extent not theretofore exercised upon the earliest to occur of (a) the sixth anniversary of the Effective Date; (b) 90 days following the date of termination of the Executive’s employment for any reason other than those set forth below in this
Section 5.3(c) hereof; or (c) immediately in the event of any termination by the Company of the Executive’s employment pursuant to Section 8.1 hereof or any termination by the Executive of such employment pursuant to Section 8.3 hereof. The
number of Option Shares and the Exercise Price thereof shall be subject to equitable and proportionate adjustment as determined by the Board from time to time to reflect stock splits, reverse stock splits, stock dividends, recapitalizations,
reclassifications and similar events of dilution. The Options will not be exercisable by the Executive unless or except to the extent that (a) the underlying Option Shares are registered under the Securities Act of 1933, as amended, and registered
or qualified under applicable state securities laws (collectively, the “Securities Laws”), or (b) in the reasonable opinion of counsel to the Company, exemptions from the registration and qualification provisions of such Securities Laws
are applicable to the transaction. The Options will also contain such investment representations by the Executive as may reasonably be requested by the Company’s counsel to insure compliance with applicable Securities Laws. The Options will be
contained in a separate document in customary form dated as of the Effective Date and executed by the Company and the Executive on the date hereof or promptly thereafter; and, pending such execution, this Section 5.3 shall be deemed to constitute
the grant of and contain the terms of the Options. 
  
 SECTION SIX 
  
 EXECUTIVE BENEFITS 
  
 6.1.    General.    The Company shall provide the Executive with the same executive benefits (such as health insurance, sick leave, disability insurance), if any and if needed, that it
provides to its other executives generally, as and when he becomes eligible for them. In addition, the Executive shall be entitled to four weeks of vacation irrespective of his term of service with the Company. 
  
 6.2.    Expense Reimbursement.    The Company shall reimburse the Executive for his
reasonable and necessary out-of-pocket expenses incurred in the performance of his duties under this Agreement, upon his timely submission of written requests therefore together with such receipts and documentation as the Company may reasonably
request, all in accordance with the Company’s policies and procedures in effect from time to time. 
  
 SECTION SEVEN

  
 OWNERSHIP OF INTANGIBLES 
  
 7.1.    All processes, inventions, patents, copyrights, trademarks, and other intangible rights that may be conceived or developed by the Executive,
either alone or with others, during his employment by the Company, whether or not conceived or developed during his working hours, and with respect to which the Company’s equipment, supplies, facilities or trade secret information were used, or
that relate at the time of conception or reduction to practice of the 
 

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 invention to the Company’s business or to its actual or demonstrably anticipated research and
development, or that result from any work performed by the Executive for the Company (or its subsidiaries), shall be the sole property of the Company. The Executive shall disclose to the Company all inventions conceived by the Executive while
employed by the Company and for one year thereafter, whether or not the property of the Company under the preceding sentence, provided that such disclosure shall be received by the Company in confidence. The Executive shall execute all documents,
including patent applications and assignments, required by the Company to establish its rights under this Section 7.1. 
  
 SECTION EIGHT 
  
 TERMINATION 
  
 8.1.    Termination by the Company, for Cause.    The Company may terminate the Executive’s employment and this
Agreement at any time without notice if at any time from and after the Effective Date the Executive is convicted of a felony, or of a misdemeanor involving fraud or other moral turpitude; is guilty of gross or habitual inattention to or carelessness
or willful misconduct in the performance of his duties; is guilty of inattention to or carelessness in the performance of his duties that is not cured within ten days after written notice thereof by the Company; is guilty of any material breach of
this Agreement that is not cured within ten days after written notice thereof; fails to abide in any material respects with the Company policies and procedures from time to time in effect; or fails to comply with any lawful orders or directions of
the CEO or the Board that are not incompatible with his position with the Company or manifestly unreasonable or unethical. 
  
 8.2.    Termination by the Company Without Cause.    The Company may terminate the Executive’s employment and this Agreement at any time for any reason whatsoever or no reason, by
giving the Executive written notice of its election to do so. If the Company terminates the Executive’s employment and this Agreement other than for the reasons set forth in Section 8.1, then, subject to the Executive first executing a release
that, in form and substance, is reasonably satisfactory to the Company and releases and discharges the Company and its subsidiaries and their respective officers, directors, employees and representatives from all liabilities of any type they might
otherwise be deemed to have to the Executive, the Company shall thereupon be obligated to pay to the Executive a payment equal to 6 months Salary at the time of termination, which payment may, in the discretion of the Company, be paid as a lump sum
or in equal monthly installments beginning the effective date of such termination. 
  
 8.3.    Termination by Resignation, The Executive may terminate this Agreement by giving the Company not less than 30 days’ prior written notice of resignation. The Executive shall not be entitled to
any Salary or other compensation accruing after the effective date of his resignation under Section 8.2 if he terminates this Agreement. 
  
 8.4.    Termination on Disability.    If, at the end of any consecutive 90-day period during the Term, the Executive is and has been for the consecutive 90-day period then
ending, or for 80% or more of the normal working days during such consecutive 90-day period unable due to mental or physical illness or injury to perform his duties under this Agreement in his normal and regular manner, the Executive’s
employment and this Agreement shall then 
 

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 terminate, subject to the Executive’s right to receive any disability benefits then provided by the
Company. 
  
 8.5.    Termination By Death.    The Executive’s
employment and this Agreement shall terminate upon the Executive’s death, subject to Executive’s estate being entitled to receive any death benefits then provided by the Company. 
  
 8.6.    Rights and Obligations After Notice of Termination.    If either the Company or the Executive gives notice of
termination of this Agreement, or if it becomes known that this Agreement will otherwise terminate in accordance with its provisions, the Company may, in its sole discretion and subject to its other obligations under this Agreement, relieve the
Executive of his duties under this Agreement. 
  
 SECTION NINE 
  

CONFIDENTIAL INFORMATION 
  
 9.1.    Confidential Information.    During the period of time that the Company has been in business, it has acquired, created and developed, and will continue to acquire, create and
develop certain confidential and proprietary information, which the Executive has been and will continue to be exposed to, and he has had and will continue to have an opportunity to learn about the Company’s (and its subsidiaries’),
customers and employees (including records and information pertaining to such customers and employees, and to the relationship between these customers and employees and the Company and its subsidiaries), operations, methods of doing business,
research and development, know-how, formulas, processes, trade secrets, computer programs, algorithms, finances (including all non-public financial statements and information), and other confidential and proprietary information belonging to the
Company and its subsidiaries (collectively, “Confidential Information”). The term, “Confidential Information,” includes all documents, materials, and information concerning the Company that heretofore have been or hereafter are
furnished, made available, or otherwise disclosed to or created by the Executive, except information that was or becomes generally available to the public other than as a result of a disclosure by or through the Executive. All such information is
considered secret and has been and shall at all times be deemed to be disclosed to the Executive in strict confidence. 
  
 9.2.    Disclosure of Confidential Information.    Except as required in the performance of his duties hereunder, the Executive shall not directly or indirectly disclose to any third
person any of the Company’s or its subsidiaries’ Confidential Information or use any such Confidential Information for any purpose without the Company’s prior written consent. This covenant shall survive the termination of this
Agreement. 
  
 9.3.    Unfair Competition.    The Executive
understands, acknowledges and agrees that the Company is engaged in the business of providing and operating Positron Emission Tomography, and hopes to expand those services to new geographical areas throughout the world. For so long as the Executive
is an employee of the Company, he agrees that he will not directly or indirectly compete with the business of the Company or its subsidiaries anywhere in the world. As used in the preceding sentence, “compete” means, but is not necessarily
limited to, the Executive engaging in or carrying on, either for himself or as an officer, director, executive, shareholder, partner, member, agent, associate, consultant or affiliate of, or investor in any other person or entity that is engaged in
any activity described in the first sentence of this Section 9.3 
 

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 or that is competitive with any such activity. The Executive also agrees that for so long as the
Executive is an employee of the Company, he will not directly or indirectly recruit, hire, assist others in recruiting or hiring, or refer to others concerning employment, any other person who is an employee of the Company or any affiliate of the
Company. 
  
 9.4.    Equitable Enforcement.    The Executive
represents and agrees that he finds the restrictions contained in Sections 3.4, 9.2 and 9.3 hereof to be fair and reasonable. He also understands, acknowledges and agrees that if he were to breach any of his obligations contained in Sections 3.4,
9.2 or 9.3 hereof, the Company would suffer immediate and irreparable harm, and that an award of money damages would not be adequate to fully compensate the Company for such harm. Accordingly, if the Executive breaches or threatens to breach any of
his obligations contained in Sections 3.4, 9.2 or 9.3 hereof, the Company shall be entitled to a temporary restraining order and a preliminary or temporary injunction, from any court having jurisdiction, until the issue of such breach or threatened
breach is finally determined by arbitration pursuant to Section 10 hereof. If such court determines that it is reasonably likely that an arbitrator or arbitrators will find that any of those obligations are not enforceable, in whole or in part, due
to any unreasonable restriction of duration, geographical area or activity, or any combination thereof, such court shall nevertheless enjoin the breach thereof as to such duration, geographical area and activity that the court determines is fair and
reasonable, pending arbitration proceedings to settle any controversy or claim relating to the enforceability of the Executive’s obligations under Sections 3.4, 9.2 or 9.3 hereof. The court shall not require the Company to post any bond or
other surety as a condition to granting and maintaining any temporary restraining order or preliminary injunction pursuant to this Section 9.4. 
  
 SECTION TEN 
  
 DISPUTE RESOLUTION 
  
 10.1.    Binding Arbitration.    Except to the extent otherwise expressly provided for
herein, any controversy or claim arising out of or relating to this Agreement, or a breach of this Agreement, shall be settled exclusively by binding arbitration, in San Diego, California, in accordance with the Commercial Arbitration Rules of the
American Arbitration Association, before a panel of three arbitrators, one appointed by each of the Company and the Executive, and the third chosen by the two so appointed. The decision of the arbitrators shall be final, and judgment on the award
rendered by the arbitrator may be entered in any court having jurisdiction. The prevailing party shall be awarded reasonable attorneys and arbitration costs. 
  
 10.2.    Interim Relief from a Court.    In addition to the interim equitable enforcement provisions of Section 9.4, any party may request a court to
provide interim or provisional relief, and such request shall not be deemed incompatible with this agreement to arbitrate or as a waiver of that agreement. 
  
 10.3.    Equitable Enforcement.    The parties acknowledge and agree that in the event of a breach or threatened breach of this Agreement, or a
party’s failure to perform any provision hereof to be performed by that party, damages would be extremely difficult if not impossible to determine, and that the other parties to this Agreement would not have any adequate remedy at law. The
parties agree that an arbitrator may grant injunctive relief and 
 

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 specific performance in his or her award, and that any court having jurisdiction may enforce such
equitable relief. 
  
 10.4.    Reformation.    In any arbitration
proceedings relating to the Executive’s obligations under Sections 3.4, 9.2 or 9.3 above, if the arbitrators should find any of the restrictions contained in those sections or any of the Executive’s obligations thereunder to be
unenforceable, in whole or in part, due to any unreasonable restriction of duration, geographical area or activity, or any combination thereof, then the arbitrators shall have the Executive’s and the Company’s express authority to reform
those restrictions and obligations to reasonable restrictions and obligations, and to grant the Company any other legal or equitable relief reasonably necessary to protect the Company’s interest in its Confidential Information, and to prevent
the Executive from unfairly competing with the Company. 
  
 SECTION ELEVEN 
  
 INDEMNIFICATION 
  
 11.1.    The Company shall defend and indemnify the Executive against, and hold him harmless from, all claims and liabilities that may be asserted against him by third parties and arise out of his employment by
the Company or his service as a director of the Company or its subsidiaries, to the fullest extent permitted by applicable law. 
  
 SECTION TWELVE 
  
 MISCELLANEOUS PROVISIONS 
  
 12.1.    Entire Agreement.    This Agreement contains the entire agreement between the
parties with respect to the subject matter hereof and supersedes all prior oral and written agreements, understandings, commitments and practices between them with respect to such subject matter. No amendments to this Agreement may be made except by
a writing signed by both parties. 
  
 12.2.    Law Governing.    This
Agreement shall be construed and enforced in accordance with the laws of California. 
  
 12.3.    Notices.    All notices, consents and other communications under this Agreement shall be in writing (including facsimile transmissions) and shall be deemed given on the earliest
of (a) the day of actual receipt; (b) the day sent by facsimile transmittal with electronic confirmation of receipt, if sent on a business day before 5:00 p.m., the recipient’s time, otherwise the next business day after the day sent; (c) the
next business day after delivery to a national delivery service for overnight delivery, with delivery receipt requested; and (d) the fifth business day after deposit in the United States mail, certified or registered with postage prepaid, return
receipt requested, in any such case addressed to the parties as set forth below or at such other address as a party may specify by notice given pursuant to this Section 12.3: 
  
 
	 IF TO THE COMPANY:
 	 	 IF TO THE EXECUTIVE:
 

 
  
 
	 At its principal executive offices
 	 	 At his most recent address reflected in the Company’s records
 

 
 

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 12.4.    Severability.    If any
provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall nevertheless remain in full force and effect. If any provision is held invalid or unenforceable with respect to particular circumstances, it shall
nevertheless remain in full force and effect in all other circumstances. 
  
 12.5.    Binding
Effect.    This Agreement shall bind and accrue to the benefit of the parties and their respective successors in interest. 
  
 12.6.    Counterparts.    This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which,
taken together shall be deemed to constitute one and the same instrument. 
  
 IN WITNESS WHEREOF the parties have
executed this Agreement as of the date set forth in Section 1.1 above. 
  
 
	 THE COMPANY:
 	 	  	 	 THE EXECUTIVE:
 
	 
	 MOBILE PET SYSTEMS, INC.,
 	 	  	 	  
	 by direction of its Board of Directors,
 	 	  	 	  
	 
	 By:
 	 	 /s/    PAUL J. CROWE
 
	 	  	 	 /s/    THOMAS H. INSLEY
 

	  	 	 Paul J. Crowe, President and CEO
 	 	  	 	  	 	 Thomas H. Insley
 
	 
	 Date signed: As of July 1, 2002
 	 	  	 	 Date signed: As of July 1, 2002
 

 
 

 8Prepared by R.R. Donnelley Financial -- Form of Common Stock Purchase Warrant

  
 Exhibit 10.45 
  
 THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON THE EXERCISE HEREOF, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR FILED OR REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR WITH THE SECURITIES REGULATORY AUTHORITY OF ANY STATE, BUT ARE BEING ISSUED PURSUANT TO CERTAIN EXEMPTIONS THEREUNDER. THIS WARRANT, AND SUCH SHARES OF COMMON STOCK,
HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR BY THE SECURITIES REGULATORY AUTHORITY OF ANY STATE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THIS WARRANT, AND SUCH SHARES OF COMMON
STOCK, ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE, AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION THEREUNDER OR
EXEMPTION THEREFROM. 
  
 This Warrant Will Be Void After
                                 
  
 WARRANT 
 TO PURCHASE
                     SHARES OF COMMON STOCK OF 
  
 Mobile PET Systems, Inc. 
  
 This is to certify, That FOR
VALUE RECEIVED, 
  
                         (the “Holder”) 
  

is entitled to purchase, subject to the provisions of this Warrant, from Mobile PET Systems, Inc. (the “Company”), a Delaware corporation, at any time and from time to time, but
not later than                                 ,
                         shares of the Company’s common stock, $.0001 par value (“Common Stock”) at a purchase
price per share of                                     .

  
 The number of shares of Common Stock to be received upon the exercise of this Warrant and the price to be paid
for a share of Common Stock may be adjusted from time to time as hereinafter set forth. The shares of the Common Stock deliverable upon such exercise, and as adjusted from time to time, are hereinafter sometimes referred to as “Warrant
Stock,” and the exercise price of a share of Common Stock in effect at any time and as adjusted from time to time is hereinafter sometimes referred to as the “Exercise Price.” 
  
 1.    Exercise of Warrant.    This Warrant may be exercised at any time in whole and from time to time in part, but not later
than                         . If the date on which the Holder’s right to purchase Common Stock expires is a day on which
national banks in San Diego, California, are authorized by law to close, then that right shall expire on the next succeeding day that is not such a day. The Holder shall exercise all rights to purchase Common Stock by presenting and surrendering
this Warrant to the Company or at the office of its stock transfer agent, if any, with the Purchase Form annexed hereto duly executed and accompanied by payment of the Exercise Price for the number of shares specified in such form. Upon receipt by
the Company of this Warrant at the office or agency of the Company, in proper form for exercise, the Holder shall be deemed to be the holder of record of the shares of Common Stock issuable upon such exercise, notwithstanding that the stock transfer
books of the Company shall then be closed or that certificates representing such shares of Common Stock shall not then be actually delivered to the Holder. 
 

  
 2.    Reservation of
Shares.    The Company hereby agrees that at all times there shall be reserved for issuance and delivery upon exercise of this Warrant such number of shares of Common Stock as shall be required for issuance or delivery upon
exercise of this Warrant. 
  
 3.    Fractional Shares.    No
fractional shares or script representing fractional shares shall be issued upon the exercise of this Warrant. With respect to any fraction of a share called for upon any exercise hereof, the Company shall pay to the Holder an amount in cash equal to
such fraction multiplied by the current market value of such fractional share, determined as follows: 
  
 (a)  If the Common Stock is listed on a national securities exchange or admitted to unlisted trading privileges on such exchange, the current value shall be the last reported sales price of the Common Stock on such exchange
on the last business day prior to the date of exercise of this Warrant or if no such sale is made on such day, the average of the closing bid and asked prices for such day on such exchange; or 
  

(b)  If the Common Stock is not so listed or admitted to unlisted trading privileges, the current value shall be the mean of the last
reported bid and asked prices reported by the National Association of Securities Dealers Quotation System (“NASDAQ”), or if not so quoted on NASDAQ then by the National Quotation Bureau, Inc., on the last business day prior to the date of
the exercise of this Warrant; or 
  
 (c)  If the Common Stock is not so listed or admitted
to unlisted trading privileges and bid and asked prices are not so reported, the current value shall be an amount, not less than book value, determined in such reasonable manner as may be prescribed by the Company’s board of directors, and
supported by the written fairness opinion of an independent, nationally-recognized stock valuation expert. 
  
 4.    Transfer, Assignment or Loss of Warrant. 
  
 (a)  This Warrant and the Warrant Stock, have not been filed or registered with the United States Securities and Exchange Commission or with the securities regulatory authority of any state. This Warrant and the Warrant
Stock are subject to restrictions imposed by federal and state securities laws and regulations on transferability and resale, and may not be transferred assigned or resold except as permitted under the Securities Act of 1933, as amended (the
“Act”), and the applicable state securities laws, pursuant to registration thereunder or exemption therefrom. Upon receipt by the Company of evidence satisfactory to it that this Warrant has been legally and validly transferred or
assigned, the Company will, at the request of the Holder, upon presentation and surrender hereof to the Company or at the office of its stock transfer agent, if any, exchange this Warrant for a replacement Warrant registered in such name or names as
the Holder shall designate. If, at the time of such transfer or assignment, this Warrant and the Common Stock issuable upon the exercise hereof have not been registered under the Act, then each such transferee and assignee shall furnish the Company
with evidence satisfactory to it that such transferee or assignee is acquiring such Warrant for his, her or its own account, for investment purposes, and not with a view towards a distribution thereof or of the Warrant Stock issuable upon its
exercise. The term “Warrant,” as used herein, includes any Warrants issued in substitution for or replacement of this Warrant. 
  
 (b)  Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and in the case of loss, theft or destruction of reasonably
satisfactory indemnification, and upon surrender and cancellation of this Warrant in the case of mutilation, the Company will execute and deliver a new Warrant of like tenor and date. Any such new Warrant executed and delivered shall constitute an
additional contractual obligation on the part of the Company, whether or not this Warrant so lost, stolen, destroyed or mutilated shall be at any time enforceable by anyone. 
 

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 (c)  The Company may cause any legend required under
the Act and applicable state securities laws, or advisable in the opinion of its legal counsel, to be set forth on each Warrant, on each certificate representing Warrant Stock, and on any other security issued or issuable upon exercise of this
Warrant not previously distributed to the public or sold to underwriters for distribution to the public pursuant to 11 hereof. 
  
 5.    Rights of the Holder.    The Holder shall not, by virtue hereof, be entitled to any rights of a shareholder in the Company, either at law or equity, and the rights of the Holder as
the holder of this Warrant are limited to those expressed in this Warrant. 
  
 6.    Anti-Dilution Provisions.    If the Company shall at any time subdivide the outstanding shares of Common Stock, or shall issue a stock dividend on the outstanding Common Stock,
then the Exercise Price in effect immediately prior to that subdivision or the issuance of that dividend shall be proportionately decreased, and if the Company shall at any time combine the outstanding shares of Common Stock, then the Exercise Price
in effect immediately prior to that combination shall be proportionately decreased, effective at the close of business on the date of the subdivision, dividend or combination, as the case may be. 
  

7.    Officer’s Certificate.    Whenever the Company shall determine the fair market value of the Common Stock
pursuant to Section 3 hereof, the Company shall forthwith file in the custody of its Secretary or an Assistant Secretary at its principal office, and with its stock transfer agent, if any, an officer’s certificate showing the such fair market
value and the date as of which it was determined, and setting forth in reasonable detail the facts requiring such determination and the facts, assumptions, methodology and calculations employed in determining such value. The Company shall forthwith
deliver a copy of each such officer’s certificate to the Holder, and the Company shall make all such officer’s certificates available at all reasonable times for inspection by and copying by the Holder. 
  
 8.    Notices to Holder.    So long as this Warrant shall be outstanding and any portion of
it shall be unexercised, (i) if the Company shall pay any dividend or make any distribution upon the Common Stock or (ii) if the Company shall offer to the holders of Common Stock for subscription or purchase by them any shares of stock of any class
or any other rights or (iii) if any capital reorganization of the Company, reclassification of the Company’s capital stock, consolidation or merger of the Company with or into another corporation, sale, lease or transfer of all or substantially
all of the Company’s property and assets to another corporation, or voluntary or involuntary dissolution, liquidation or winding up of the Company shall be effected, then in any such case, the Company shall cause to be delivered to the Holder,
at least ten days prior to the date specified in (x) or (y) below, as the case may be, a notice containing a brief description of the proposed action and stating the date on which (x) a record is to be taken for the purpose of such dividend,
distribution or rights, or (y) such reclassification, reorganization, consolidation, merger, conveyance, lease, dissolution, liquidation or winding up is to take place and the date, if any is to be fixed, as of which the holders of record of Common
Stock shall be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such reclassification, reorganization, consolidation, merger, conveyance, dissolution, liquidation or winding up. The record date for
any such actions or events shall not be less than ten days after the date on which the Company gives the Holder the notice thereof specified by this 8. 
  
 9.    Reclassification, Reorganization or Merger.    In case of any reclassification, capital reorganization or other change of outstanding shares of
Common Stock of the Company (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of an issuance of Common Stock by way of dividend or other distribution or of a subdivision or
combination), or in case of any consolidation or merger of the Company with or into another corporation (other than a merger with a subsidiary in which merger the Company is the continuing corporation and which does not result in any
reclassification, capital reorganization or other change of outstanding shares of Common Stock of the class issuable upon exercise of this Warrant) or in case of any sale or conveyance to another corporation of the property of the Company as an
entirety or substantially as an entirety, the Company shall cause effective provision to be made so that the Holder shall have the right thereafter, by exercising this Warrant, to purchase the kind and amount of shares of stock and other securities
and property receivable 
 

 3 

  
 upon such classification, capital reorganization or other change, consolidation, merger, sale or
conveyance. Any such provision shall include provision for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Warrant. The foregoing provisions of this Section 9 similarly apply to
successive reclassifications, capital reorganizations and changes of shares of Common Stock and to successive consolidations, mergers, sales or conveyances. In the event that in any such capital reorganization or reclassification, consolidation,
merger, sale or conveyance, additional shares of Common Stock shall be issued in exchange, conversion, substitution or payment, in whole or in part, for or of a security of the Company other than Common Stock, any such issue shall be treated as an
issue of Common Stock covered by the provisions of Section 6 hereof with the amount of the consideration received upon the issue thereof being determined by the Company’s board of directors, such determination to be final and binding on the
Holder. 
  
 10.    Spin-Offs.    In the event the Company spins-off a
subsidiary by distributing to the Company’s stockholders as a dividend or otherwise the stock of the subsidiary, the Company shall reserve for the life of the Warrant shares of the subsidiary to be delivered to the holders of the Warrants upon
exercise to the same extent as if they were owners of record of the Warrant Stock on the record date for payment of the shares of the subsidiary. 
  
 11.    Registration under the Securities Act of 1933. 
  
 (a)  In the event that the Company proposes at any time when the Warrant is outstanding to file a registration statement under the Act (including for the purpose of this Section 11 a
Notification under Regulation A under the Act and the Offering Circular included therein) relating to Common Stock issued or to be issued by the Company, the Company shall give written notice of such proposal to the Holder and the record owner of
any Warrant Stock. If, within 30 days after the giving of such notice, the Holder or any such record owner shall request in writing that this Warrant or any Warrant Stock be included in such proposed registration, then the Company shall, at its
expense, also register such securities as shall have been so requested in writing; provided, however, that the Holder and such owners shall cooperate with the Company in the preparation of such registration statement to the extent required to
furnish information concerning the Holder and such owners therein. The Company shall be obligated under this Section 11 to register the Warrant and any Warrant Stock one time, and with respect to the first registration statement filed by the Company
that is declared effective. If the Company has not included the Shares in a registration statement filed under the Act by
                            , then the Company shall, at its expense, file a registration statement with
respect to the Shares on that date. 
  
 (b)  In connection with the filing of a
registration statement pursuant to Section 11(a) hereof, the Company shall: (i) notify the Holder and such owners as to the filing thereof and of all amendments thereto filed prior to the effective date; (ii) notify the Holder and such owners,
promptly after it shall have received notice thereof, of the time when the registration statement becomes effective or any supplement to any prospectus forming a part of the registration statement has been filed; (iii) prepare and file without
expense to such owners any necessary amendment or supplement to such registration statement or prospectus as may be necessary to comply with the Act or advisable in connection with the proposed distribution of the securities; (iv) take all
reasonable steps to qualify the Warrant and the Warrant Stock being registered for sale under the securities or blue sky laws in such reasonable number of states as the Holder and such registered owners may designate in writing and to register or
obtain the approval of any federal or state authority that may be required in connection with the proposed distribution, except, in each case, in jurisdictions in which the Company must either qualify to do business or file a general consent to
service of process as a condition to the qualification of such securities; (v) notify the Holder and such owners of any stop order suspending the effectiveness of the registration statement and use reasonable efforts to remove such stop order; (vi)
undertake to keep the registration statement and prospectus effective for a period of not less than 90 days; and (vii) furnish to the Holder and such owners as soon as available, copies of any such registration statement and each preliminary or
final prospectus and any supplement or amendment required to be prepared pursuant to this 
 

 4 

  
 Section 11. Upon written request, the Company shall also furnish the Holder and
each such owner, without cost, one set of the exhibits to such registration statement. 
  
 (c)  The Company’s obligation under this Section 11 shall be conditioned upon timely receipt by the Company in writing of: (i) information as to the terms of such public offering furnished by or on behalf of the Holder
and each such owner electing to exercise such registration rights; and (ii) such other information as the Company may reasonably require from the Holder and such owners, or any underwriter for any of them, for inclusion in such registration
statement or Notification or post-effective amendment. 
  
 12.    Miscellaneous

  
 (a)  All notices given under this Warrant shall be in writing, addressed to the Company
at 2150 West Washington Street, Suite 110, San Diego, California 92110, and to the Holder at the Holder’s address set forth is the Company’s records, or at such other address as a party may specify by notice given in accordance with this
paragraph, and shall be effective on the earliest of (i) the date received, or (ii) if given by facsimile transmittal with receipt electronically confirmed on the date given if transmitted before 5:00 p.m., the recipient’s time, otherwise it is
effective the next day, or (iii) on the second business day after delivery to a major international air delivery or air courier service (such as Federal Express or Network Couriers). 
  
 (b)  This Warrant is binding on and, except for the limitations on transfer and assignment contained in Section 4, shall inure to the benefit of
the successors in interest of the Company and the Holder, respectively. 
  
 (c)  This
Warrant shall be construed and enforced in accordance with the laws of California. 
  
 (d)  Any controversy or claim arising out of or relating to this Agreement (whether in contract or tort, or both) shall be determined by binding arbitration at San Diego, California, in accordance with the commercial
arbitration rules of the American Arbitration Association, by a panel of three arbitrators, one chosen by each of the parties and the third by the two so chosen. If the two arbitrators cannot agree on a third, then the third shall be appointed in
accordance with such rules. The prevailing party in any arbitration proceeding shall be awarded reasonable attorneys fees and costs of the proceeding. The arbitration award shall be final, and may be entered in and enforced by any court having
jurisdiction. 
  
 Dated and effective as of
                            . 
  
 
	 MOBILE PET SYSTEMS, INC.
 
	 
	 By
 	 	 

	  	 	  

 
 

 5 

  
 PURCHASE FORM 
  
 Date:              
  
 TO:    MOBILE PET SYSTEMS, INC.: 
  
 The undersigned hereby irrevocably elects to
exercise the within Warrant to the extent of purchasing                         
(                ) shares of Common Stock, and hereby makes payment of                 
Dollars and                      Cents ($                ) in payment
of the Exercise Price thereof. 
  
 INSTRUCTIONS FOR REGISTRATION OF STOCK 
  
 Name:                                    
                                        
                                        
                                        
                                        
         
  
 Address:                                    
                                        
                                        
                                        
                                        
     
  
 City, State, Zip
Code:                                       
                                        
                                        
                                        
                 
  
 
	 
	 Signature
 
	 
	                                      
                                       
                                        
                
 
	 
	 Name
 
	 
	                                      
                                        
                                        
              
 
	 
	 Date
signed

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