Document:

Exhibit 10.1

 

COMMON STOCK PURCHASE AGREEMENT

 

by and among

 

CORGENIX MEDICAL CORPORATION

 

FINANCIÈRE ELITECH SAS

 

AND

 

WESCOR, INC.

 

 

July 12, 2010

 

 

COMMON STOCK PURCHASE AGREEMENT

 

THIS
COMMON STOCK PURCHASE AGREEMENT (this “Agreement”)
is entered into effective as of July 12, 2010 (the “Effective
Date”), by and among Corgenix Medical Corporation, a Nevada
corporation (the “Company”),
Financière Elitech SAS, a société par actions
simplifiée organized under the laws of France (“Elitech”),
and Wescor, Inc., a Utah corporation and subsidiary of Elitech (“Investor”).

 

WHEREAS, Investor desires to purchase shares of the
Company’s common stock and acquire the right to purchase additional shares of
common stock pursuant to the terms of warrants, on the terms and conditions set
forth herein;

 

WHEREAS, the Company desires to issue to Investor shares of
the Company’s common stock and grant to Investor the right to purchase
additional shares of common stock pursuant to the terms of such warrants,
subject to the terms and conditions set forth herein; and

 

WHEREAS, Elitech desires to enter into or to cause either
Investor or an Affiliate of Investor to enter into two agreements in connection
with the issuance of common shares and warrants to Investor, namely: (i) a
distribution agreement with the Company to serve as the Company’s exclusive
distributor of certain products worldwide, except in North America; and
(ii) a joint product development agreement pursuant to which the Company
and Elitech, or an Affiliate of Elitech, will collaborate on the development of
certain products.

 

NOW, THEREFORE, in
consideration of the promises, covenants and conditions contained herein, the
parties mutually agree as follows:

 

1.                                      DEFINITIONS.  For purposes of this Agreement, the following
terms will have the following meanings:“Act”
means the United States Securities Act of 1933, as amended.

 

“Actual Trading Day” means any day
on which a trade of Common Stock occurs using the facilities of the OTC
Bulletin Board (OTCBB) regulated quotation service.

 

“Affiliate” has the meaning set
forth in Rule 12b-2 of the regulations promulgated under the Exchange Act.

 

“Assignment and Assumption Agreement” means
that certain Assignment and Assumption Agreement substantially in the form
attached as Exhibit A.

 

“Blue Sky Laws” means any state law
in the United States that regulates the offering and sale of securities.

 

“Board of Directors” means the board
of directors of the Company.

 

“Business Day” means any day, other
than a Saturday or Sunday and other than a day that banks in the State of
Colorado are generally authorized or required by applicable law to be closed.

 

“Change of Control”
means a change in ownership or control of the Company through 

 

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any
of the following transactions: (i) a merger, consolidation or other
reorganization of the Company with another entity, unless securities
representing more than fifty percent (50%) of the total combined voting
power of the voting securities of the successor entity are immediately
thereafter beneficially owned, directly or indirectly and in substantially the
same proportion, by the persons who beneficially owned the Company’s
outstanding voting securities immediately prior to such transaction; (ii) a
sale, transfer or other disposition of all or substantially all of the Company’s
assets; or (iii) the acquisition, directly or indirectly by any person or
related group of persons (other than the Company or a person that directly or
indirectly controls, is controlled by, or is under common control with, the
Company), of beneficial ownership (within the meaning of Rule 13d-3 of the
Exchange Act) of securities possessing more than fifty percent (50%) of
the total combined voting power of the Company’s outstanding securities
pursuant to a tender or exchange offer made directly to the Company’s
shareholders.  For purposes of this
Agreement, the following will not constitute a Change of Control under
this Agreement: (x) any registered public offering of the Company’s securities;
(y) any Permitted Stock Sales; or (z) a Common Stock dividend or
stock split distributable on a pro-rata basis to all holders of Common Stock.

 

“Closing” or “Closings”
means the First Closing Date, Second Closing Date and/or Third Closing Dates,
collectively, or individually, as applicable.

 

“Code” means the United States
Internal Revenue Code of 1986, as amended.

 

“Common Stock” means the common
stock of the Company, $.001 par value, per share.

 

“Company Subsidiaries” means
Corgenix, Inc., a Delaware corporation, and Corgenix U.K. Ltd., a
corporation organized under the laws of the United Kingdom (“Corgenix U.K. Ltd.”).

 

“Disclosure Materials” means
the Company’s most recent annual filing on Form 10-K, all Forms 10-Q filed
since the Company’s most recent Form 10-K, and all Forms 8-K filed since
the date of the Company’s last Form 10-Q, including all reports,
schedules, forms, statements, exhibits and other documents required to be filed
therewith.

 

“Distribution Agreement” means that
certain Master Distribution Agreement substantially in the form attached as Exhibit B
and effective as of the First  Closing  Date by and between the Company and Elitech UK Limited, a
private limited company organized under the laws of the United Kingdom and a
subsidiary of Elitech (“Elitech UK Limited”),
as such agreement may be amended, restated or replaced from time to time.

 

“Distributorship Agreements” has the
meaning set forth in Section 7.1.

 

“Exchange Act” means the United
States Securities Exchange Act of 1934, as amended.

 

“First Closing Date” has the meaning
set forth in Section 2.1(A).

 

“First Tranche” means the purchase
and sale of the First Tranche Shares and issuance of the First Tranche Warrant.

 

“First Tranche Shares” has the
meaning set forth in Section 2.1(A).

 

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“First Tranche Warrant” has the
meaning set forth in Section 2.1(B).

 

“GAAP” means United States generally
accepted accounting principles.

 

“Investor’s Designee” has the
meaning set forth in Section 11.1.

 

“Joint Product Development Agreement”
means that certain Joint Product Development Agreement substantially in the
form attached as Exhibit C and effective as of the  First  Closing  Date, as it may be amended, restated or replaced from time
to time.

 

“Legend” has the meaning set forth
in Section 6.1(F)(i).

 

“Notice of an Offer” has the meaning
set forth in Section 12.2.

 

“Offer Period” has the meaning set
forth in Section 12.3.

 

“Permitted Stock Sales” means any
one or more of the following: (i) the grant or issuance of Common Stock or
any option, warrant or other right to purchase Common Stock (or securities
exercisable or convertible therefore) to any employee or consultant of the
Company pursuant to a plan authorized by the Board of Directors or otherwise
pursuant to authority of the Board of Directors; or (ii) the issuance of
any Common Stock upon exercise or conversion of any right, warrant, option or
contract outstanding as of the date of this Agreement.

 

“Person” means any individual,
corporation, partnership, trust, limited liability company, association or
other entity.

 

“SEC” means the United States
Securities and Exchange Commission.

 

“Second Closing Date” has the
meaning set forth in Section 2.2(A).

 

“Second Tranche” means the purchase
and sale of the Second Tranche Shares and issuance of the Second Tranche
Warrant.

 

“Second Tranche Milestone” has the
meaning set forth in Section 2.2(C).

 

“Second Tranche Shares” has the
meaning set forth in Section 2.2(A).

 

“Second Tranche Warrant” has the meaning
set forth in Section 2.2(B).

 

“Share Purchase Price” means the per
share price of Common Stock to be purchased pursuant to this Agreement or the
Warrants and will be calculated as follows: (i) the average of the closing
price for the immediately preceding five (5) Actual Trading Days
multiplied by (ii) one hundred thirty percent (130%); provided,
however, if such Share Purchase Price is less than $0.15, then the Share
Purchase Price will be $0.15, and if the Share Purchase Price is greater than
$0.20, then the Share Purchase Price will be $0.20.  All calculations made pursuant to this
formula will be made to the nearest cent.

 

“Third Closing Date” has the meaning
set forth in Section 2.3(A).

 

3

 

“Third Tranche” means the purchase
and sale of the Third Tranche Shares and issuance of the Third Tranche Warrant.

 

“Third Tranche Milestone” has the
meaning set forth in Section 2.3(C).

 

“Third Tranche Shares” has the
meaning set forth in Section 2.3(A).

 

“Third Tranche Warrant” has the
meaning set forth in Section 2.3(B).

 

“Transaction Documents” means this
Agreement, the First Tranche Warrant, the Distribution Agreement, the Joint
Product Development Agreement, the Second Tranche Warrant and the Third Tranche
Warrant, as applicable, and each other agreement and document executed by the
Company, Elitech, Investor, or their respective Affiliates, in connection
with the transactions contemplated by this Agreement.

 

“Warrants” means, collectively, the
First Tranche Warrant, Second Tranche Warrant and Third Tranche Warrant.

 

2.                                      PURCHASE AND SALE OF STOCK & ISSUANCE OF WARRANTS.

 

2.1.                              First Tranche.

 

(A)                              Purchase of First Tranche Shares.  On July 16, 2010, at 10:00 a.m.
Mountain Standard Time, or on such other date as the parties agree to in
writing (the “First Closing Date”),
the Company will sell to Investor and Investor will purchase from the Company
the total number of shares of Common Stock (rounded up to the next whole share
in the event of a fractional share) equal to One Million Two Hundred Fifty
Thousand and 00/100 United States dollars (US$1,250,000.00) divided by the
Share Purchase Price (to be determined as of the First Closing Date) (“First Tranche Shares”).

 

(B)                                Issuance of First Tranche Warrant.  On the First Closing Date, and for no
additional consideration, the Company will issue a warrant in substantially the
same form attached hereto as Exhibit D (the “First Tranche Warrant”) to purchase a
number of shares equal to fifty percent (50%) of the First Tranche Shares
(rounded to the next whole share), at a per share exercise price equal to the
Share Purchase Price.

 

2.2.                              Second Tranche.

 

(A)                              Purchase of Second Tranche Shares.  On or before the six (6) month
anniversary of the First Closing Date, or on such other date as the parties
agree to in writing, subject to completion of the Second Tranche Milestone as
set forth in Section 2.2(C) below (the “Second
Closing Date”), the Company will sell to Investor and Investor
will purchase from the Company the total number of shares of Common Stock
(rounded up to the next whole share in the event of a fractional share) equal
to Two Hundred Fifty Thousand and 00/100 United States dollars (US$250,000.00)
divided by the Share Purchase Price (“Second Tranche Shares”).

 

(B)                                Issuance of Second Tranche Warrant.  On the Second Closing Date, provided the
Second Tranche Shares have been purchased, and for no additional consideration,

 

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the Company will issue a warrant (the “Second Tranche Warrant”) to
purchase a number of shares equal to fifty percent (50%) of the Second
Tranche Shares (rounded to the next whole share), at a per share exercise price
equal to the Share Purchase Price.

 

(C)                                Achievement of Second Tranche Milestone.  On or before the six (6) month
anniversary of the First Closing Date, the Company will transfer and assign all
distribution agreements that are related to the sale of Company products in any
jurisdiction outside of North America, and Elitech will cause Elitech UK
Limited to assume all such agreements in accordance with Article 7
(“Second Tranche Milestone”).

 

2.3.                              Third Tranche.

 

(A)                              Purchase of Third Tranche Shares.  On or before the twelve (12) month
anniversary of the First Closing Date, or on such other date as the parties
agree to in writing, subject to the completion of the Third Tranche Milestone
as set forth in Section 2.3(C) below (the “Third Closing Date”), the Company
will sell to Investor and Investor will purchase from the Company the number of
shares of Common Stock (rounded up to the next whole share in the event of a
fractional share) equal to Five Hundred Thousand and 00/100 United States
dollars (US$500,000.00) divided by the Share Purchase Price (“Third Tranche Shares”).

 

(B)                                Issuance of Third Tranche Warrant.  On the Third Closing Date, provided the Third
Tranche Shares have been purchased, and for no additional consideration, the
Company will issue a warrant (the “Third Tranche Warrant”)
to purchase a number of shares equal to fifty percent (50%) of the Third
Tranche Shares (rounded to the next whole share), at a per share exercise price
equal to the Share Purchase Price.

 

(C)                                Achievement of Third Tranche Milestone.  On or before the twelve (12) month
anniversary of the First Closing Date, the Executive Committee (as that term is
referred to in the Joint Product Development Agreement) will have determined
the feasibility of creating not less than two (2) New Corgenix Assays
(as that term is defined in the Joint Product Development Agreement) in accordance
with Article 9 (“Third Tranche Milestone”).

 

3.                                      REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  The Company represents, warrants
and acknowledges to Elitech and Investor as follows:

 

3.1.                              Organization, Good Standing and Qualification.  Each of the Company and each of the Company
Subsidiaries (i) has been organized and is validly existing and in good
standing under the laws of its jurisdiction of organization, (ii) is duly
qualified and in good standing to do business in each jurisdiction in which the
nature of its business or the ownership or leasing of its properties makes such
qualification necessary, (iii) has all requisite power and authority to
own or lease and operate its properties and assets, and to carry on its
business as now conducted and as currently proposed to be conducted, and
(iv) has obtained all licenses, permits, franchises and other governmental
authorizations necessary to the ownership or operation of its properties or the
conduct of its business.  Copies of the
Organizational Documents, as amended and currently in force, of the Company and
each of the Company Subsidiaries have been furnished by the Company to Elitech
and Investor for inspection. For purposes of this Agreement, 

 

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“Organizational Documents”
means, with respect to any entity, the certificate of incorporation, bylaws
and/or other similar governing documents of such entity.

 

3.2.                              Subsidiaries.  The Company owns all of the equity interests
in the Company Subsidiaries, and no third party possesses any right to acquire
any interest in the Company Subsidiaries. 
Other than the Company Subsidiaries, the Company does not own of record
or beneficially any securities in any other Person.

 

3.3.                              Requisite Power and Authority.  The Company has all necessary corporate power
and authority to execute and deliver the Transaction Documents and to perform
its obligations thereunder.  The
execution and delivery of the Transaction Documents, the performance of its
obligations hereunder and thereunder, and the consummation of the transactions
contemplated hereby have been duly authorized by all necessary corporate action
on the part of the Company.  Upon
execution and delivery, the Transaction Documents will be the valid and binding
obligations of Investor, enforceable in accordance with their terms, except as
limited by (A) applicable bankruptcy, insolvency, reorganization,
moratorium or other laws of general application affecting enforcement of
creditors’ rights, and (B) the application of general principles of
equity.

 

3.4.                              No Conflicts.  The
execution and delivery of each of the Transaction Documents does not or will
not, as the case may be, and the consummation of the transactions contemplated
hereby and thereby will not, conflict with, or result in any violation of, or
constitute a default (with or without notice or lapse of time, or both) under,
or give rise to a material penalty or right of termination, amendment,
cancellation or acceleration of any material obligation or the loss of a
material benefit under, or the creation of a lien or encumbrance on any
material assets pursuant to (A) any provision of the Organizational
Documents of the Company or any Company Subsidiary or (B) (x) any
material obligation, instrument, permit, concession, franchise or license of
the Company or any Company Subsidiary, or (y) except as would not
reasonably be expected to have a material adverse effect on the Company or any
Company Subsidiary, any judgment, order, decree, statute, law, ordinance, rule or
regulation.

 

3.5.                              Capitalization.  As of the execution date of this Agreement,
the authorized capital stock of the Company consists of 200,000,000 shares of
Common Stock and 5,000,000 shares of preferred stock, of which 30,982,803
shares of Common Stock and 236,681 shares of redeemable convertible preferred
shares are issued and outstanding. 
Additionally the following options and warrants are outstanding:
2,440,000 shares are exercisable through various stock options and 33,728,177
shares in the form of warrants are exercisable. 
Except as set forth above or otherwise disclosed in the Disclosure
Materials, there are no other authorized or outstanding shares of capital stock
of the Company or voting securities or commitments to issue any shares of
capital stock or voting securities of the Company other than pursuant to the
outstanding stock options and warrants of the Company referenced above.  No bonds, debentures, notes or other
indebtedness of the Company nor any of the Company Subsidiaries having, or convertible
into other securities having, the right to vote on any matters on which
stockholders may vote are authorized, issued or outstanding.  There are no outstanding obligations of the
Company or any of the Company Subsidiaries to repurchase, redeem or otherwise
acquire any shares of capital stock of the Company or the Company
Subsidiaries.  There is no voting trust
or other agreement to which the Company or any of the Company Subsidiaries is a
party or is bound, or, to the 

 

6

 

knowledge of the Company, to which any stockholder
of such entity is a party or is bound, with respect to the voting of the
capital stock or other voting securities of the Company or any Company
Subsidiary.  The Company has the ability
to effect any action requiring the approval of the stockholders of any of the
Company Subsidiaries and to designate all of the members of the board of
directors or others performing similar functions of each of the Company
Subsidiaries.

 

3.6.                              Public Disclosure.

 

(A)                              Disclosure Materials.  The Company acknowledges that the Company is
a publicly held company and has made available to Investor copies of the
Disclosure Materials.  The Company has
registered its Common Stock pursuant to Section 12(g) of the Exchange
Act, as amended, and the Common Stock is quoted and traded on the OTCBB.  The Company has received no notice, either
oral or written, with respect to the continued quotation or trading of the
Common Stock on the OTCBB.  The Company
has filed all Disclosure Materials with the SEC.  No Company Subsidiary is required to file any
form, report or other document with the SEC or any similar securities
regulatory authority in any jurisdiction. 
As of their respective dates (and, if amended or superseded by a filing
prior to the Effective Date, then on the date of such filing), the Disclosure
Materials complied in all material respects with the requirements of the
Exchange Act, as amended, and rules and regulations of the SEC promulgated
thereunder and the Disclosure Materials did not contain, nor will any of the
Company’s subsequent filings made after the Effective Date and prior to the
First Closing Date amending or superseding any Disclosure Materials contain,
any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading.  Subject to the accuracy of
the Investor’s representations in this Agreement, the sale of the shares of
Common Stock by the Company will not require registration under the Act.

 

(B)                                Financial Statements.  Each of the financial statements (including
the related notes) included in the Disclosure Materials presents or will
present fairly, in all material respects, the consolidated financial position
and consolidated results of operations of the Company and the Company
Subsidiaries as of the respective dates or for the respective periods set forth
therein, all in conformity with GAAP consistently applied during the periods
involved except as otherwise noted therein, and subject, in the case of the
unaudited interim financial statements, to normal and recurring year-end
adjustments that have not been and are not expected to be material in amount,
and except that the unaudited financial statements need not contain
footnotes.  Since December 31, 2009,
there has been no material change in the Company’s accounting methods or
principles except as described in the notes to the consolidated financial
statements of the Company contained in the Disclosure Materials.  All of such Disclosure Materials, as of their
respective dates (and as of the date of any amendment to the respective
Disclosure Materials), complied and will comply as to form in all material
respects with the applicable requirements of the Act and the Exchange Act and
the rules and regulations promulgated thereunder.

 

(C)                                Contingent Liabilities.  Except (i) as set forth in the
consolidated balance sheets (and notes thereto) of the Company and its
consolidated Company Subsidiaries included in the Disclosure Materials, and
(ii) for liabilities or obligations incurred in the ordinary course of
business (none of which is a material liability resulting from breach of
contract, breach of 

 

7

 

warranty, tort,
infringement, claim or lawsuit), since December 31, 2009, neither the
Company nor any Company Subsidiary has incurred any material liabilities or
material obligations of any nature (whether accrued, absolute, contingent,
asserted, liquidated or otherwise).

 

3.7.                              Compliance with Applicable Laws; Regulatory
Matters.  The Company and the Company Subsidiaries hold
all permits, licenses, certificates, franchises, registrations, variances,
exemptions, orders and approvals of all governmental entities (collectively, “Permits”) that are material to the
operation of their respective businesses, except for such failures to have
received such Permits as would not reasonably be expected to have a material
adverse effect on the Company.  The
Company and the Company Subsidiaries are in compliance with the terms of such
Permits, except where the failure to so comply would not reasonably be expected
to have a material adverse effect on the Company.  The businesses of the Company and of each
Company Subsidiary are not being and have not been conducted in violation of
any law, ordinance, regulation, judgment, decree, injunction, rule or
order of governmental entity, except for violations which would not reasonably
be expected to have a material adverse effect on the Company.  No investigation by any governmental entity
with respect to the Company or any of the Company Subsidiaries is pending or,
to the knowledge of the Company, threatened.

 

3.8.                              Valid Issuance of Stock.  The shares of Common Stock to be purchased pursuant to this Agreement and
stock issuable upon exercise of the Warrants, when issued, sold and delivered
in accordance with the terms of this Agreement and the Warrants, as applicable,
will be duly and validly issued, fully paid and non assessable, free of any
liens, charges, claims, security interests or encumbrances, other than liens,
charges, claims, security interests and encumbrances created by or imposed upon
the holders thereof, and are not subject to preemptive rights or rights of
first refusal created by statute, the Company’s Articles of Incorporation or
Bylaws or any agreement to which the Company is a party or by which it is
bound.

 

4.                                      REPRESENTATIONS AND WARRANTIES OF INVESTOR.  Investor represents, warrants and
acknowledges to the Company as follows:

 

4.1.                              Organization, Good Standing and Qualification.  Investor is a corporation duly organized,
validly existing and in good standing under the laws of the State of Utah and
has all requisite corporate power and authority to own its properties and
assets and to carry on its business as now conducted and as presently proposed
to be conducted.  Investor is qualified
to do business as a foreign corporation in each jurisdiction where failure to
be so qualified could have or cause a material adverse effect.

 

4.2.                              Requisite Power and Authority.  Investor has all necessary corporate power
and authority under all applicable provisions of law to execute and deliver the
Transaction Documents and to perform its obligations thereunder.  Upon execution and delivery, the Transaction
Documents will be the valid and binding obligations of Investor, enforceable in
accordance with their terms.

 

4.3.                              Consents.  All consents, approvals, orders,
authorizations or registration, qualification, designation, declaration or
filing with any governmental or banking authority on the part of Investor
required in connection with the consummation of the transactions 

 

8

 

contemplated in this Agreement have been or will
have been obtained prior to, and be effective as of the Closing.

 

4.4.                              Purchase Entirely for Own Account.  This Agreement is made with
Investor in reliance upon the Investor’s representation to the Company, which
by Investor’s execution of this Agreement Investor hereby confirms that the
shares of Common Stock to be acquired by Investor and the Warrants to be issued
will be acquired for investment for Investor’s own account, not as a nominee or
agent, and not with a view to the resale or distribution of any part thereof,
and that Investor has no present intention of selling, granting any
participation in, or otherwise distributing the same.  By executing this Agreement, Investor
further represents that Investor does not presently have any contract,
undertaking, agreement or arrangement with any Person to sell, transfer or
grant participations to such Person or to any third Person, with respect to any
of the shares of Common Stock to be purchased or the Warrants to be issued.  Investor has not been formed for the specific
purpose of acquiring the shares of Common Stock or the Warrants to be issued.

 

4.5.                              Restricted Securities.   Investor understands that none of the shares
of Common Stock to be purchased pursuant to this Agreement, the Warrants, or
any shares of Common Stock issuable upon exercise of the Warrants, have been,
nor will they be, registered under the Act, by reason of a specific exemption
from the registration provisions of the Act which depends upon, among other
things, the bona fide nature of the investment intent and the accuracy of
Investor’s representations as expressed herein. 
Investor understands that the shares of Common Stock to be purchased
pursuant to this Agreement, the Warrants and the shares of Common Stock
issuable upon exercise of the Warrants are “restricted securities” under
applicable U.S. federal securities laws and Blue Sky Laws and that, pursuant to
these laws, Investor must hold the  shares of
Common Stock to be purchased indefinitely unless they are registered with the
Securities and Exchange Commission and qualified by state authorities, or an
exemption from such registration and qualification requirements is
available.  Investor acknowledges that
the Company has no obligation to register or qualify for resale the Warrants or
the shares of Common Stock to be purchased pursuant to this Agreement or upon
exercise of the Warrants.  Investor
further acknowledges that if an exemption from registration or qualification is
available, it may be conditioned on various requirements including, but not
limited to, the time and manner of sale, the holding period for the shares of
Common Stock to be purchased pursuant to this Agreement or upon exercise of the
Warrants, and on requirements relating to the Company which are outside of
Investor’s control, and which the Company is under no obligation  and may not be able to satisfy.

 

4.6.                              Investor Can Protect Its Own Interests.  By reason of its, or of its management’s,
business or financial experience, Investor has the capacity to protect its
own interests in connection with the transactions contemplated in this
Agreement.

 

4.7.                              Access to Information.  Investor has been given access to all Company
documents, records, and other information, has received physical delivery of
all those documents and records that  it has
requested, and has had adequate opportunity to ask questions of, and has
received answers from, the Company’s officers, employees, agents, accountants
and representatives concerning the Company’s business, operations, financial
condition, assets, liabilities and all other matters relevant to its investment
in the shares of Common Stock to be

 

9

 

purchased pursuant to this Agreement and the
Warrants to be issued.  Investor
acknowledges that neither the Company nor any of its stockholders have made any
representations or warranties except to the extent expressly set forth in this
Agreement, the Transaction Documents or the Exhibits or schedules attached
hereto and thereto.

 

4.8.                              Foreign Investors.   If Investor is not a United States person (as
defined by Section 7701(a)(30) of the Code), Investor hereby represents
that it has satisfied itself as to the full observance of the laws of its
jurisdiction in connection with any invitation to subscribe for the shares of
Common Stock to be purchased pursuant to this Agreement, the Warrants to be
issued or any use of this Agreement, including (i) the legal requirements
within its jurisdiction for the purchase of the shares of Common Stock,
(ii) any foreign exchange restrictions applicable to such purchase,
(iii) any governmental or other consents that may need to be obtained, and
(iv) the income tax and other tax consequences, if any, that may be
relevant to the purchase, holding, redemption, sale, or transfer of the shares
of Common Stock to be purchased pursuant to this Agreement or the Warrants to
be issued.  Investor’s subscription and
payment for and continued beneficial ownership of the shares of Common Stock
will not violate any applicable securities or other laws of Investor’s
jurisdiction.

 

5.                                      COVENANTS OF THE PARTIES.

 

5.1.                              Approval of Customers.  It will be a condition to closing the First
Tranche that Investor will have the opportunity to conduct a reference check
and approve the input of the five (5) sample customers that have been
provided by the Company.  The Investor
will complete its reference check within three (3) Business Days of
the Effective Date.

 

5.2.                              Amendment of Bylaws and Resolutions Approving
Transaction.  The Board of Directors will (A) amend
the Company’s Bylaws to permit the Company to opt out of any requirements under
Nevada Revised Statutes §§ 78.378 to 78.3793 relating to required approval of
acquisition of a controlling interest, and (B) duly adopt all necessary
and appropriate resolutions acknowledging that this Agreement and the
transactions related hereto are approved in accordance with Nevada Revised
Statutes § 78.438(1).

 

5.3.                              Certain Actions to Close the First Tranche,
Second Tranche and Third Tranche. 
Subject to the terms of this Agreement, each party will use its
commercially reasonable efforts to fulfill, and to cause to be satisfied, the
conditions in Articles 6, 8 and 10 (but with no
obligation to waive any such condition) and to consummate and effect the
transactions contemplated herein, including to cooperate with and assist each
other in all reasonable respects in connection with the foregoing.

 

5.4.                              Access to Information.  From the date hereof through the respective
Closings, subject to Section 11.2 and the Company’s reasonable
confidentiality precautions, the Company will permit, and will cause the
Company Subsidiaries to permit, Investor to have access during normal
business hours and upon reasonable notice from Investor, to the facilities,
personnel, books and records of the Company and the Company Subsidiaries for
the opportunity to investigate the Company and the Company Subsidiaries.  Investor will conduct such investigation in a
manner that does not unreasonably interfere with the operations of the 

 

10

 

Company or the Company Subsidiaries and will not
have access to any personnel without the written consent of the Company or a
Company Subsidiary, as appropriate.

 

6.                                      CONDITIONS TO CLOSING THE FIRST TRANCHE.

 

6.1.                              Conditions to Investor’s Obligations.  Investor’s obligations to purchase the First
Tranche Shares and to otherwise consummate the transactions contemplated in
this Agreement at the First Closing Date are subject to satisfaction of the
following conditions:

 

(A)                              Accuracy of Representations and Warranties.  The Company’s representations and warranties
in this Agreement and in any certificate or document delivered pursuant to this
Agreement will be true and correct in all material respects on and as of the
First Closing Date as if made again as of such date; provided, however,
that each representation and warranty of the Company in Section 3.1
will be true and correct in all respects on and as of the First Closing Date as
if made again as of such date.

 

(B)                                No Legal Action.  No federal, state or local governmental
authority of competent jurisdiction will have instituted any proceedings to
restrain, prohibit or otherwise challenge the legality or validity of the
transactions contemplated herein that has not been dismissed or otherwise
resolved in a manner that does not materially and adversely affect the
transactions contemplated herein, and no injunction, order or decree of any
federal, state or local governmental authority is in effect that restrains or
prohibits the purchase or sale of the shares of Common Stock or the
consummation of the other transactions contemplated herein.

 

(C)                                Election of Directors.  Effective as of the First Closing Date, the
Board of Directors will have approved of, in its reasonable discretion and
received all necessary approvals and consents to appoint David Ludvigson to
serve on the Board of Directors.

 

(D)                               Approval of Customers.  Investor will have approved of the sampling
of customers in accordance with Section 5.1.

 

(E)                                 Covenants.  The Company will have complied, in all
material respects, with the covenants set forth in Sections 5.1, 5.2,
5.3 and 5.4.

 

(F)                                 Company’s Deliverables.  The Company will have delivered to Investor
the following documents duly executed by the Company, or on behalf of the
Company:

 

(i)                                     a certificate representing the First Tranche Shares being purchased by
Investor, inclusive of the following legend (hereinafter “Legend”):

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER
SECURITIES LAWS, HAVE BEEN TAKEN FOR INVESTMENT, AND MAY NOT BE SOLD OR
TRANSFERRED OR OFFERED FOR SALE OR TRANSFER UNLESS A REGISTRATION STATEMENT
UNDER THE 

 

11

 

SECURITIES
ACT AND OTHER APPLICABLE SECURITIES LAWS WITH RESPECT TO SUCH SECURITIES IS
THEN IN EFFECT, OR SUCH REGISTRATION UNDER THE SECURITIES ACT AND OTHER
APPLICABLE SECURITIES LAWS IS NOT REQUIRED.

 

(ii)                                  the First Tranche Warrant;

(iii)                               a copy of the Company’s Articles of Incorporation, Bylaws, and
resolutions of the Board of Directors approving the transactions contemplated
by this Agreement and appointing David Ludvigson to serve on the Board of
Directors, certified by the Secretary of the Company to be true and correct as
of the Closing Date;

(iv)                              a certificate dated as of the First Closing Date and signed by the
President of the Company certifying that all of the representations and
warranties of the Company comply with Section 6.1(A) and that
the Company has fulfilled the covenants in Sections 5.1 to 5.4;

(v)                                 the duly authorized and executed Distribution Agreement; and

(vi)                              the duly authorized and executed Joint Product Development Agreement.

 

6.2.                              Conditions to the Company’s Obligations.  The Company’s obligations to sell the First
Tranche Shares, to issue the First Tranche Warrant and to otherwise consummate
the transactions contemplated in this Agreement at the First Closing Date are
subject to satisfaction of the following conditions:

 

(A)                              Accuracy of Representations and Warranties.  The representations and warranties of
Investor herein or in any document delivered pursuant to this Agreement will be
true and correct in all material respects on and as of the First Closing Date; provided,
however, that each representation and warranty of Investor in Section 4.1
will be true and correct in all respects on and as of the First Closing Date as
if made again as of such date.

 

(B)                                Covenants.  Investor will have complied, in all material
respects, with the covenants set forth in Sections 5.1, 5.3
and 5.4.

 

(C)                                Investor’s Deliverables.  The Investor will have delivered to the
Company the following documents duly executed by Investor, or on behalf of
Investor:

 

(i)                                     a wire transfer of immediately verifiable funds in an amount equal to
US$1,250,000.00;

(ii)                                  resolutions of Investor’s board of directors approving the transactions
contemplated by this Agreement;

(iii)                               a certificate dated as of the First Closing Date and signed by the
President of Investor certifying that all of the representations and warranties
of Investor comply with Section 6.2(A);

(iv)                              the duly authorized and executed Distribution Agreement; and

(v)                                 the duly authorized and executed Joint Product Development Agreement.

 

12

 

6.3.                              Failure of Condition.  Any condition specified in this Article 6
may be waived, if consented to in writing by the party whose performance is
subject to satisfaction of the condition.

 

6.4.                              Termination.  All obligations and rights associated with
this Agreement may be terminated at any time prior to the First Closing Date:

 

(A)                              By the mutual consent of the Company and Investor;

 

(B)                                By the Company or Investor if the Closing has not occurred on or before
July 31, 2010 (or such later date as may be mutually agreed to by the
parties in writing);

 

(C)                                By Investor, if any condition in Section 6.1 becomes incapable
of fulfillment as of the First Closing Date, provided that Investor has not
waived such condition; or

 

(D)                               By the Company, if any condition in Section 6.2 becomes
incapable of fulfillment as of the First Closing Date, provided that the
Company has not waived such condition.

 

Termination
of this Agreement under any of the preceding clauses (B) through (D) will
be effective two (2) Business Days after the party seeking
termination gives the other parties written notice of such termination.  Notwithstanding any provision in this Section 6.4,
a party will not have a right to terminate this Agreement (except by mutual
written consent pursuant to Section 6.4(A)) if the failure to
satisfy any condition to closing results in any material respect from the
breach (or anticipated breach) by such terminating party of any of its
representations, warranties, covenants or agreements contained in this
Agreement.

 

6.5.                              Effect of Termination.  If terminated pursuant to Section 6.4,
then this Agreement will be of no further force or effect, except for the terms
of Section 11.2, and no party will have any further obligation or
liability hereunder (except pursuant to the section set forth above).

 

7.                                      SECOND TRANCHE MILESTONE

 

7.1.                              Transfer and Assignment of Distribution Agreements.  For purposes of meeting the conditions set
forth in Section 2.2(C), effective as of the Second Tranche Closing
Date, the Company will assign, transfer (and if not transferrable by the terms
of such agreement, then transfer the economic benefit) to Elitech UK Limited or
cause Corgenix U.K. Ltd. to assign and transfer (and if not transferrable by
the terms of such agreement, then transfer the economic benefit), and Elitech
UK Limited will assume all of the obligations of the Company or Corgenix U.K. Ltd.
under all distribution agreements executed by Company or Corgenix U.K. Ltd., as
the case may be, related to any distributor whose territory is outside of North
America (“Distributorship Agreements”).

 

7.2.                              Inability to Obtain Novation.  If the Company and Corgenix U.K.
Ltd. are unable to obtain, or to cause to be obtained, any required consent,
approval, release, substitution or amendment allowing any Distributorship
Agreement to be assigned or transferred to, or managed by, Elitech UK Limited,
then the Company or Corgenix U.K. Ltd., as the case may be, will continue to be
bound by such agreements and, unless otherwise prohibited by law or the terms
thereof, Elitech UK Limited shall, as agent or subcontractor for the Company
and Corgenix U.K. 

 

13

 

Ltd., as the case may be,
pay, perform, and discharge fully, or cause to be paid, transferred or
discharged, all the rights and obligations of the Distributorship Agreements
from and after the closing of the Second Tranche.  If an agency or subcontractor management
relationship will not adequately address the needs of the Company, Corgenix
U.K. Ltd., and Elitech UK Limited, then the Company, Corgenix U.K. Ltd., and
Elitech UK Limited will in good faith structure a mutually acceptable
arrangement to accomplish the intent of this Agreement. Under the circumstances
contemplated by this Section 7.2, it is the intent of the parties
that the Company and Corgenix U.K. Ltd. shall, without further consideration
other than that delivered at the closing of the Second Tranche, deliver to
Elitech UK Limited the value, net of tax obligations of the Company and/or
Corgenix U.K. Ltd. on revenue generated (and net of the balance of any
applicable foreign tax credits), of all rights and other consideration received
by them in respect of operations under the Distributorship Agreements. If and
when any such consent, approval, release, substitution or amendment shall be
obtained or such Distributorship Agreements shall otherwise become assignable
or able to be novated, each of the Company and Corgenix U.K. Ltd. shall
thereafter assign, or cause to be assigned, all its rights and obligations
thereunder to Elitech UK Limited without the payment of any further
consideration, and Elitech UK Limited shall, without any further consideration,
assume such rights and obligations, subject to Investor and Elitech’s
indemnification obligations set forth in Section 7.3(A) below.

 

7.3.                              Indemnification.

 

(A)                              Investor and Elitech, jointly and severally, will indemnify and hold
harmless the Company and Corgenix U.K. Ltd., and their respective directors,
officers, stockholders, Affiliates and agents (together with the Company and
Corgenix U.K. Ltd., collectively, the “Corgenix
Indemnified Parties,” or
individually, a “Corgenix
Indemnified Party”), at all
times as of and after the Second Closing Date, from and against, and shall
compensate and reimburse each Corgenix Indemnified Party for, any and all
out-of-pocket damages, costs, liabilities, losses, judgments, penalties, fines,
fees expenses or other costs, (including, without limitation, any and
all common law, civil law, treaty, European Union or any country specific
imposed or permitted fines or fees), including reasonable attorneys’ fees
(collectively, “Damages”)
incurred by any Corgenix Indemnified Party, arising from or incurred after
the Second Closing Date and relating to: (1) any action taken under or
failure to act pursuant to any of the Distributorship Agreements; or
(2) the termination, modification, transfer, assignment (or deemed
termination, modification, transfer or assignment thereof) of any of the
Distributorship Agreements.

 

(B)                                The Company will indemnify and hold harmless each of Elitech, Elitech UK
Limited and Investor, and their respective directors, officers, stockholders,
Affiliates and agents (collectively, the “Elitech
Indemnified Parties,” or individually, an “Elitech Indemnified Party”) from and
against all Damages incurred by any Elitech Indemnified Party and relating to:
(i) any action taken under or failure to act pursuant to any of the
Distributorship Agreements prior to the closing of the Second Tranche; or
(ii) the termination or severance of any employees of Corgenix U.K. Ltd.;
or (iii) the leased facilities of Corgenix U.K. Ltd.

 

14

 

8.                                      CONDITIONS TO CLOSING THE SECOND TRANCHE.

 

8.1.                              Conditions to Investor’s Obligations.  Investor’s obligations to purchase the Second
Tranche Shares and to otherwise consummate the transactions contemplated in
this Agreement on the Second Closing Date are subject to satisfaction of the
following conditions:

 

(A)                              Accuracy of Representations and Warranties.  The Company’s representations and warranties
in this Agreement and in any certificate or document delivered pursuant to this
Agreement will be true and correct in all material respects on and as of the
Second Closing Date as if made again as of such date; provided, however,
that each representation and warranty of the Company in Section 3.1
will be true and correct in all respects on and as of the Second Closing Date
as if made again as of such date.

 

(B)                                No Default.  No material
defaults of the Company will have occurred, that remain uncured beyond the
applicable cure period(s), under this Agreement, the Distribution Agreement or
the Joint Product Development Agreement.

 

(C)                                Covenants.  The Company will have complied, in all
material respects, with the covenants set forth in Sections 5.3 and
5.4.

 

(D)                               Second Tranche Milestone.  The Company will have completed its
obligations pursuant to the Second Tranche Milestone in accordance with Sections 7.1
and 7.2, within the time period set forth in Section 2.2(C).

 

(E)                                 No Legal Action.  No federal, state or local governmental
authority of competent jurisdiction will have instituted any proceedings to
restrain, prohibit or otherwise challenge the legality or validity of the
transactions contemplated herein that has not been dismissed or otherwise
resolved in a manner that does not materially and adversely affect the
transactions contemplated, and no injunction, order or decree of any federal,
state or local governmental authority is in effect that restrains or prohibits
the purchase or sale of the shares of Common Stock or the consummation of the
other transactions contemplated herein.

 

(F)                                 Company’s Deliverables.  The Company will have delivered to Investor
the following documents duly executed by the Company, or on behalf of the
Company (and, in the case of sub-clause (v) below, by or on behalf of
Corgenix U.K. Ltd.):

 

(i)                                     a certificate representing the Second Tranche Shares being purchased by
Investor, inclusive of the Legend;

(ii)                                  the Second Tranche Warrant;

(iii)                               resolutions of the Board of Directors approving issuance of the Second
Tranche Shares and Warrant;

(iv)                              a certificate dated as of the Second Closing Date and signed by the
President of the Company certifying that the conditions of Sections 8.1(A),
8.1(B) and 8.1(C) have been satisfied; and

(v)                                 the duly authorized and executed Assignment and Assumption Agreement.

 

15

 

8.2.                              Conditions to the Company’s Obligations.  The Company’s obligations to sell the Second
Tranche Shares, to issue the Second Tranche Warrant and to otherwise consummate
the transactions contemplated in this Agreement on the Second Closing Date are
subject to satisfaction of the following conditions:

 

(A)                              Accuracy of Representations and Warranties.  The representations and warranties of
Investor herein or in any document delivered pursuant to this Agreement will be
true and correct in all material respects as of the Second Closing Date; provided,
however, that each representation and warranty of Investor in Section 4.1
will be true and correct in all respects on and as of the Second Closing Date
as if made again as of such date.

 

(B)                                No Default.  No material
defaults of Elitech UK Limited will have occurred, that remain uncured beyond
the applicable cure period(s), under this Agreement, the Distribution Agreement
or the Joint Product Development Agreement.

 

(C)                                Covenants.  Investor will have complied, in all material
respects, with the covenants set forth in Sections 5.3 and 5.4.

 

(D)                               Second Tranche Milestone.  The Investor will have completed its
obligations pursuant to the Second Tranche Milestone in accordance with Sections 7.1
and 7.2, within the time period set forth in Section 2.2(C).

 

(E)                                 Investor’s Deliverables.  The Investor will have delivered to the
Company the following documents duly executed by Investor, or on behalf of
Investor (or, in the case of sub-clause (iv) below, by or on behalf of
Elitech UK Limited):

 

(i)                                     a wire transfer of immediately verifiable funds in an amount equal to
US$250,000.00;

(ii)                                  resolutions of the Investor’s board of directors approving the Second
Tranche;

(iii)                               a certificate dated as of the Second Closing Date and signed by the
President of Investor certifying that the conditions of Sections 8.2(A) and
8.2(B) have been satisfied; and

(iv)                              the duly authorized and executed Assignment and Assumption Agreement.

 

8.3.                              Failure of Condition.  Any condition specified in this Article 8
may be waived, if consented to in writing by the party whose performance is
subject to satisfaction of the condition.

 

8.4.                              Termination.  The obligations and rights of the Company and
the Investor associated with the Second Tranche may be terminated at any time
prior to the Second Closing Date:

 

(A)                              By the mutual consent of the Company and Investor;

 

(B)                                By the Company or Investor if the Closing will not have occurred on or
before January 16, 2011 (or such later date as may be mutually agreed
to in writing);

 

16

 

(C)                                By Investor, if any condition in Section 8.1 becomes
incapable of fulfillment as of the Second Closing Date, provided that Investor
has not waived such condition, and provided further that such incapability of
fulfillment is not the result of a material act or omission on the part of
Investor or an Affiliate of Investor; or

 

(D)                               By the Company, if any condition in Section 8.2 becomes
incapable of fulfillment as of the Second Closing Date, provided that the
Company has not waived such condition, and provided further that such
incapability of fulfillment is not the result of a material act or omission on
the part of the Company or an Affiliate of the Company.

 

Termination
of under any of the preceding clauses (B) through (D) will be
effective two (2) Business Days after the party seeking termination
gives the other parties written notice of such termination.  Notwithstanding any term in this Section 8.4,
a party will not a have right to terminate the rights and obligations
associated with the Second Tranche (except by mutual written consent pursuant
to Section 8.4(A)) if the failure to satisfy any condition to
closing results in any material respect from the breach (or anticipated breach)
of such terminating party of any of its representations, warranties, covenants
or agreements contained in this Agreement.

 

8.5.                              Effect of Termination. 
Termination of the Second Tranche pursuant to Section 8.4
will terminate all obligations and rights of the parties related to the Second
Tranche.  Notwithstanding the foregoing,
termination of the Second Tranche, pursuant to Section 8.4 will not
be deemed to terminate either parties’ obligations related to the Third
Tranche, nor will it release any party from any liability for a breach of any
term hereof (nor a waiver of any right in connection therewith) and will be in
addition to any other right or remedy a party has under this Agreement or
otherwise.  The exercise of a right of
termination is not an election of remedies.

 

9.                                      THIRD TRANCHE MILESTONE; FEASIBILITY OF ASSAYS

 

For
purposes of meeting the conditions set forth in Section 2.3(C), not
later than the Third Tranche Closing Date, the Parties and their respective
Affiliates will have successfully determined the feasibility of not less than
two (2) New Corgenix Assays substantially in accordance with the
performance criteria, prototype acceptance criteria, development time,
development expenses, sourcing arrangements and such other material criteria as
may be set forth in the Development Plans for such New Corgenix Assays and in
accordance with the Joint Product Development Agreement.  For purposes of this Article 9,
the terms “New Corgenix Assays” and “Development Plan” have the meanings
ascribed to them in the Joint Product Development Agreement.

 

10.                               CONDITIONS TO CLOSING THE THIRD TRANCHE

 

10.1.                        Conditions to Investor’s Obligations.  Investor’s obligations to purchase the Third
Tranche Shares and to otherwise consummate the transactions contemplated in
this Agreement on the Third Closing Date are subject to satisfaction of the
following conditions:

 

(A)                              Accuracy of Representations and Warranties.  The Company’s representations and warranties
in this Agreement and in any certificate or document delivered pursuant to this
Agreement will be true and correct on and as of the Third Closing Date; provided,
however, that each representation and warranty of the Company in Section 3.1
will be 

 

17

 

true and correct in all respects on and as of the
Third Closing Date as if made again as of such date.

 

(B)                                No Default.  No material
defaults of the Company will have occurred, that remain uncured beyond the
applicable cure period(s), under this Agreement, the Distribution Agreement or
the Joint Product Development Agreement.

 

(C)                                Covenants.  The Company will have complied, in all
material respects, with the covenants set forth in Sections 5.3 and
5.4.

 

(D)                               Third Tranche Milestone.  The Company will have completed its
obligations pursuant to the Third Tranche Milestone in accordance with Article 9,
within the time period set forth in Section 2.3(C).

 

(E)                                 No Legal Action.  No federal, state or local governmental
authority of competent jurisdiction will have instituted any proceedings to
restrain, prohibit or otherwise challenge the legality or validity of the
transactions contemplated herein that has not been dismissed or otherwise
resolved in a manner that does not materially and adversely affect the
transactions contemplated, and no injunction, order or decree of any federal,
state or local governmental authority is in effect that restrains or prohibits
the purchase or sale of the shares of Common Stock or the consummation of the
other transactions contemplated herein.

 

(F)                                 Company’s Deliverables.  The Company will have delivered to Investor
the following documents duly executed by the Company, or on behalf of the
Company:

 

(i)                                     a certificate representing the Third Tranche Shares being purchased by
Investor, inclusive of the Legend;

(ii)                                  the Third Tranche Warrant;

(iii)                               resolutions of the Board of Directors approving issuance of the Third
Tranche Shares and Warrant; and

(iv)                              a certificate dated as of the Third Closing Date and signed by the
President of the Company certifying that the conditions of Sections 10.1(A),
10.1(B) and 10.1(C) have been satisfied.

 

10.2.                        Conditions to the Company’s Obligations.  The Company’s obligations to sell the Third
Tranche Shares, to issue the Third Tranche Warrant and to otherwise consummate
the transactions contemplated in this Agreement on the Third Closing Date are
subject to satisfaction of the following conditions:

 

(A)                              Accuracy of Representations and Warranties.  The representations and warranties of
Investor herein or in any document delivered pursuant to this Agreement will be
true and correct in all material respects as of the Third Closing Date; provided,
however, that each representation and warranty of Investor in Section 4.1
will be true and correct in all respects on and as of the Third Closing Date as
if made again as of such date.

 

(B)                                No Default.  No material
defaults of Elitech UK Limited will have occurred, that have remained uncured
beyond the applicable cure period(s), under this Agreement, the Distribution
Agreement or the Joint Product Development Agreement.

 

18

 

(C)                                Covenants.  Investor will have complied, in all material
respects, with the covenants set forth in Sections 5.3 and 5.4.

 

(D)                               Third Tranche Milestone.  Investor will have completed its obligations
pursuant to the Third Tranche Milestone in accordance with Article 9,
within the time period set forth in Section 2.3(c).

 

(E)                                 Investor’s Deliverables.  The Investor will have delivered to the
Company the following documents duly executed by Investor, or on behalf of
Investor:

 

(i)                                     a wire transfer of immediately verifiable funds in an amount equal to
US$500,000.00;

(ii)                                  resolutions of the Investor’s board of directors approving the Third
Tranche; and

(iii)                               a certificate dated as of the Third Closing Date and signed by the
President of Investor certifying that the conditions of Sections 10.2(A) and
10.2(B) have been satisfied.

 

10.3.                        Failure of Condition.  Any condition specified in this Article 10
may be waived, if consented to in writing by the party whose performance is
subject to satisfaction of the condition.

 

10.4.                        Termination.  The obligations and rights associated with
the Third Tranche may be terminated at any time prior to the Third Closing
Date:

 

(A)                              By the mutual consent of the Company and Investor;

 

(B)                                By the Company or Investor if the Closing will not have occurred on or
before July 16, 2011, (or such later date as may be mutually agreed to in
writing);

 

(C)                                By Investor, if any condition in Section 10.1 becomes
incapable of fulfillment as of the Third Closing Date, provided that Investor
has not waived such condition, and provided further that such incapability of
fulfillment is not the result of a material act or omission on the part of
Investor or an Affiliate of Investor; or

 

(D)                               By the Company, if any condition in Section 10.2 becomes
incapable of fulfillment as of the Third Closing Date, provided that the
Company has not waived such condition, and provided further that such
incapability of fulfillment is not the result of a material act or omission on
the part of the Company or an Affiliate of the Company.

 

Termination of the rights
and obligations associated with the Third Tranche under any of the preceding
clauses (B) through (D) will be effective two (2) Business
Days after the party seeking termination gives the other parties written notice
of such termination.  Notwithstanding any
term in this Section 10.4, a party will not have a right to
terminate the rights and obligations associated with the Third Tranche (except
by mutual written consent pursuant to Section 10.4(A)) if the
failure to satisfy any condition to closing results in any material respect
from the breach (or anticipated breach) of such terminating party of any of its
representations, warranties, covenants or agreements contained in this
Agreement.

 

19

 

10.5.                        Effect of Termination.  Termination of the Third Tranche pursuant to Section 10.4
will terminate all obligations and rights of the parties related to the Third
Tranche.  Termination of the Third
Tranche pursuant to Section 10.4 will not be deemed to release any
party from any liability for a breach of any term hereof (nor a waiver of any
right in connection therewith) and will be in addition to any other right or
remedy a party has under this Agreement or otherwise.  The exercise of a right of termination is not
an election of remedies.

 

11.                               GOVERNANCE MATTERS.

 

11.1.                        Investor Right to Designate Nominee for
Director.  Investor
will have the right to designate one (1) individual for election or
appointment to the Board of Directors (the “Investor’s
Designee”), so long as Investor owns at least five
percent (5%) of the outstanding Common Stock.  Investor agrees that the foregoing is a right
to designate a person for election to the Board of Directors, not a right to
appoint directly to the Board of Directors, and therefore is subject to
Investor’s Designee obtaining sufficient votes for election from the
stockholders of the Company except in the case of the appointment of David
Ludvigson as of the First Closing Date, which will be accomplished by the Board
of Directors action only.  The Board of
Directors will not designate a competing nominee against the Investor’s
Designee except as required by stockholder action.  Until such time as Investor makes such
designation, and at any time after such conditions for nomination cease to be
satisfied or Investor otherwise has no nominee on the Board of Directors, Investor
will have the right to send a non-voting observer to all Board of Directors
meetings as long as Investor holds at least five percent (5%) of the total
issued and outstanding number of shares of Common Stock.  The non-voting observer may participate in
discussions of matters brought to the Board of Directors, including the right
to receive all notices, minutes, consents and other materials, financial and
otherwise, which the Company provides to the Board of Directors, such copies to
be delivered to the address specified by the non-voting observer; provided,
however, that the Company reserves the right to exclude the non-voting
observer from access to any material or meeting or portion thereof (a) if
the Board of Directors reasonably believes that such material, meeting or
portion thereof will involve information that should not reasonably be shared
with any party outside of the Board of Directors; or (b) if the Company
believes, upon advice of counsel, that such exclusion is reasonably necessary
to any government contracts, security clearances, or to preserve
attorney-client privilege.  The Company
will give the non-voting observer written notice of any meeting of the Board of
Directors simultaneously with that given to the members of the Board of
Directors such that the non-voting observer will be able to exercise
effectively the rights granted by this Section 11.1.  The Company will give the non-voting observer
copies of any written actions by consent of the Board of Directors (other than
such actions by consent which include the confidential information excluded in
subpart (a) and (b) above). 
The non-voting observer will execute a confidentiality agreement in form
and substance reasonably satisfactory to the Board of Directors with respect to
the information and discussions to which the non-voting observer has access
pursuant to this Section 11.1.

 

11.2.                        Confidential Information.  The
parties hereby expressly agree that any confidential information delivered by
any party to any other party pursuant to this Agreement will be deemed “Confidential
Information” subject to all of the terms and provisions contained in that
certain mutual non-disclosure agreement substantially in the form attached as Exhibit E
(the 

 

20

 

“Confidentiality Agreement”) dated
July 16, 2010, by and among the Corgenix Group and the Elitech Group (as
those terms are defined in the Confidentiality Agreement).

 

12.                               CHANGE OF CONTROL PROCESS.  The following will govern Investor’s rights
and responsibilities with respect to a potential Change of Control transaction
at any time from the First Closing Date through to the third (3rd) anniversary
of the First Closing Date.

 

12.1.                        Decision to Solicit Offers.  If the Board of Directors determines to
initiate the solicitation of offers or indications of interest in pursuing a
Change of Control transaction (without having first received an unsolicited
offer from a third party), then the Board of Directors will, consistent with
its fiduciary duty to maximize shareholder value, design a process in
consultation with legal counsel and any financial advisor the Board of
Directors elects to engage at the time. Investor may participate in the process
to the extent it desires to be involved, on the terms established by the Board
of Directors to govern the solicitation of offers process. The parties expect
that this process may include some form of auction, however limited in nature,
in which an investment banker identifies reasonably likely acquisition
candidates to approach. The parties intend that, if all other offered terms are
equal (such as, for example, conditions to close or timing), and assuming a successful
commercial relationship exists between the parties at the time, an equal
financial value offered by Investor would be considered to be a superior offer.

 

12.2.                        Unsolicited Offer.  If the Company receives an unsolicited
third-party offer (or indication of interest in making an offer) with respect
to a Change of Control transaction, it will provide prompt written notice (“Notice of an Offer”) of the details
of that offer to Investor. If the Board of Directors elects to begin a process
that could lead to a Change of Control (in response to that unsolicited offer),
then it will (a) commence negotiations with the unsolicited bidder and
with Investor to seek the highest value available from those parties; and
(b) consider retaining the services of an investment banker to guide the
process, to ensure that all reasonably identifiable third-party bidders are
involved, and/or to render a fairness opinion if a deal is reached. If a
definitive agreement is entered into based on those discussions, and if deemed
necessary or appropriate by the Board of Directors, then the Company will
endeavor to include a market check right in any definitive agreement, to allow
the Company to “test the market” with respect to the price obtained.  If Investor is the highest bid, it will
permit a market check of at least a sixty (60) calendar day period, on
terms and in the manner the Board of Directors believes will best comply with
its fiduciary duties to the stockholders of the Company. Investor or, if
applicable, the third-party bidder, would be informed of the progress and
results of any market check analysis. The Company would evaluate any revised
offer from Investor or the third party, along with any other offers received
during the market check.  If, however,
the unsolicited offer leads to a Board of Directors decision to explore a sale
of the Company, but not on terms offered by, or not with, the unsolicited
third-party bidder, then the Company would proceed under the process set forth
in Section 12.1 above.  The
Notice of an Offer may provide Investor a specified period of time within which
to submit its own offer, such time period to be determined in the discretion of
the Board of Directors.  If Investor does
not provide an offer within any time period prescribed by the Board of
Directors, then Investor will be deemed to have waived all further rights
pursuant to this Article 12 related to the then contemplated Change
of Control transaction.

 

21

 

12.3.                        Offer Irrevocable.  Any offer delivered by Investor under Sections 12.1
or 12.2 will be irrevocable for a period ending on the
ninety-fifth (95th) day following the date of the Board of Director’s
receipt of the Investor’s offer (the “Offer Period”).

 

12.4.                        Recommend an Offer.  Upon receipt of all final offers, the Board
of Directors will review and assess, in accordance with their fiduciary duties,
each offer presented and determine which offer is the best offer (if any) to be
recommended and presented to the stockholders of the Company.

 

12.5.                        Stockholder Approval.  If the Board of Directors has elected to
proceed with a Change of Control transaction, then in accordance with
applicable law and the Bylaws and Articles of Incorporation of the Company, the
Board of Directors will schedule a special meeting of the stockholders to vote
on the proposed Change of Control.

 

12.6.                        No Default. 
Investor’s rights pursuant to this Article 12 will be
terminated and of no further force or effect upon the existence of a default by
Investor under this Agreement, by Elitech UK Limited under the Distribution
Agreement or by Elitech under the Joint Product Development Agreement, provided
such default is not cured within thirty (30) calendar days after notice of
the existence of such default.

 

13.                               CORGENIX U.K. LTD. EMPLOYEE MATTERS.

 

13.1.                        Employment Offers.  Elitech may, but is not required to, cause
Elitech UK Limited to make offers of employment to some of Corgenix U.K. Ltd.’s
employees or seek to engage some of Corgenix U.K. Ltd.’s employees as independent
contractors or consultants.  Effective
upon the First Closing Date, for those former employees of the Company that are
offered employment and accept such offers of employment and become employees of
Elitech UK Limited (each such employee, a “Former Corgenix Employee”),
the Company hereby waives for itself and on behalf of Corgenix U.K. Ltd., for
the benefit of Elitech and Elitech UK Limited, any and all restrictions in any
agreement relating to (a) non-competition with the Company or its
Affiliates subsequent to termination of employment; or (b) maintenance of
confidentiality of any information for the benefit of the Company or its
Affiliates.  Elitech UK Limited will be
exclusively liable for all compensation and all health, welfare, disability,
retirement, severance and other benefits that Elitech UK Limited provides to
any Former Corgenix Employee on or after the date on which such Former Corgenix
Employee accepts an offer of employment and becomes an employee of Elitech UK
Limited.  Corgenix U.K. Ltd. will be
exclusively liable for all such compensation, benefits, and associated taxes
and social charges that it provides to such Former Corgenix Employee prior to
such date.

 

13.2.                        Cooperation on Employment Offers.  The Company and Elitech will reasonably
cooperate, and each party will cause its respective Affiliates to reasonably
cooperate, with each other so that on a mutually determined date prior to the
closing of the Second Tranche, Corgenix U.K. Ltd. will distribute to its
employees designated in writing by Elitech UK Limited a general form of
employee offer letter.  The Company
agrees to use, and to cause Corgenix U.K. Ltd. to use, commercially reasonable
efforts under communications reasonably approved in advance by Elitech and
Elitech UK Limited to obtain signed copies of the offer letters from the
designated employees.

 

22

 

14.                               MISCELLANEOUS.

 

14.1.                        Default.  In
the event that a party is in breach of this Agreement the non-breaching party
will send written notice to the breaching party describing such breach and
permitting the breaching party thirty (30) calendar days to cure such
breach.  If the breaching party does not
cure such breach, such party will be in default under the terms of this Agreement.

 

14.2.                        Survival of Representations and Warranties.  All representations and warranties made by
the Company and Investor in this Agreement and in certificates or other
documents delivered pursuant hereto will survive the making of the investments
and the carrying out of the transactions contemplated by this Agreement and the
sale, issuance, and delivery of the shares of Common Stock purchased pursuant
to the respective Closing for a period of two (2) calendar years
after such representation and warranty is made. 
Notwithstanding anything in this Agreement to the contrary, the parties
to this Agreement hereby agree that no claim based on a breach of any
representation or warranty may be made after the second anniversary of the most
recent Closing.  All covenants,
agreements, representations and warranties expressly made in this Agreement
will be binding upon any successors and assigns of the Company and Investor.

 

14.3.                        Permitted Disclosures.  No party to this Agreement will make any
press release or public announcement with respect to this Agreement or the
transactions contemplated hereby without the prior written consent of the other
parties (which consent shall not be unreasonably withheld, delayed or
conditioned); provided, however, that any party may make any
disclosure or announcement that such party, after consultation with its legal
counsel, determines that it is obligated to make pursuant to applicable law or
regulation of any national securities exchange or in order to discharge its
fiduciary duties, in which case, the party desiring to make the disclosure
shall consult with the other parties and give due consideration to the comments
as such other parties may have prior to making such disclosure or announcement.

 

14.4.                        Successors and Assigns.   The terms and conditions of this Agreement
will inure to the benefit of and be binding upon the respective successors and
assigns of the parties.  Nothing in this
Agreement, express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement.

 

14.5.                        Notices.  Except as may be otherwise provided herein,
all notices, requests, waivers and other communications made pursuant to this
Agreement will be in writing and will be conclusively deemed to have been duly
given (a) when hand delivered to the other parties; (b) when received
if sent by facsimile or electronic mail to the number or the email address set
forth below provided that the sending party receives a confirmation of
delivery; (c) three (3) Business Days after deposit in the U.S.
mail with first class or certified mail receipt requested postage prepaid and
addressed to the other parties as set forth below; or
(d) forty-eight (48) hours after deposit with an internationally
recognized overnight delivery service, postage prepaid, addressed to the
parties as set forth below with next-business-day delivery guaranteed, provided
that the sending party receives a confirmation of delivery from the delivery
service provider.

 

23

 

To
the Company:

 

Corgenix
Medical Corporation

Attention:
President

11575
Main Street, Suite 400

Broomfield,
Colorado 80020

Facsimile:  (303) 453-8896

Email:
Dsimpson@corgenix.com

 

Copy
to:

 

Husch
Blackwell Sanders LLP

Attention:
Robert P. Attai

1700
Lincoln Street, Suite #4700

Denver,
Colorado 80203

Facsimile:  (303) 749-7272

Email:
robert.attai@huschblackwell.com

 

To
Investor or Elitech:

 

Wescor, Inc.

Attention:
Michael Saunders

370
West 1700 South

Logan,
Utah 84321

Facsimile:  (425) 752-4127

Email:  m.saunders@elitechgroup.com

 

Copy
to:

 

Jackson
Walker L.L.P.

Attention:  L. Scott Brown

901
Main Street, Suite 6000

Dallas,
Texas 75202

Facsimile:  (214) 661-6869

Email:  sbrown@jw.com

 

Each
person making a communication hereunder by facsimile or electronic mail will
promptly confirm by telephone to the person to whom such communication was
addressed each communication made by it by facsimile or electronic mail, but
the absence of such confirmation will not affect the validity of any such
communication.  A party may change or
supplement the addresses given above, or designate additional addresses, for
purposes of this Section 14.5 by giving the other parties written
notice of the new address in the manner set forth above.

 

14.6.                        Governing Law.  This
Agreement and any controversy arising out of or relating to this Agreement will
be governed by and construed in accordance with the general corporation law of
the State of Nevada as to matters within the scope thereof, and as to all other
matters will be governed by and construed in accordance with the internal laws
of the State of Colorado, 

 

24

 

without regard to conflict of law principles that
would result in the application of any law other than the law of the State of
Colorado.

 

14.7.                        Venue.  Each of the parties consents and submits to
the jurisdiction of the federal courts located in the District of Colorado in
connection with any suits or other actions arising between the parties under
this Agreement, and consents and waives any objections to the venue of such
action or proceeding in the federal courts located in the District of Colorado.

 

14.8.                        Remedies.  No remedy herein conferred is intended to be
exclusive of any other remedy herein or as provided by law, but each will be
cumulative and will be in addition to every other remedy set forth in the
Transaction Documents or the Exhibits. 
Notwithstanding anything in this Agreement to the contrary, no party
will be obligated to any other Person for any consequential, incidental,
indirect, special, exemplary or punitive damages or losses based on future
revenue, income or profits, diminution of value or loss of business reputation
or opportunity.

 

14.9.                        Expenses. Except as expressly stated otherwise in this
Agreement, each party will bear its own costs and expenses incurred in
connection with the transactions contemplated herein.

 

14.10.                  Severability.  If any term, provision, covenant, or
condition of this Agreement, or its application to any person or circumstance,
will be held by a court of competent jurisdiction to be invalid, unenforceable,
or void, the remainder of this Agreement and such term, provision, covenant, or
condition as applied to other persons or circumstances will remain in full
force and effect.

 

14.11.                  Incorporation of Exhibits.  The Exhibits identified in this Agreement are
incorporated herein by reference and made a part hereof.

 

14.12.                  Entire Agreement; Amendments.  The Transaction Documents and the other
documents and agreements delivered pursuant thereto constitute the full and
entire understanding and agreement among the parties with respect to the subject
hereof and thereof.  The provisions of
this Agreement may be amended only in writing and signed by a duly authorized
representative of each of the Company, Elitech and Investor.

 

14.13.                  Authorization.  Each of the undersigned representatives of
the parties warrants and represents that he or she is duly authorized to
execute this Agreement on behalf of the respective party for which he or she
signs, and that the organization on whose behalf he or she signs is currently
in good standing in the jurisdiction where organized.

 

14.14.                  Number and Tense.  Throughout this Agreement, as the context may
require, the singular number includes the plural, and the plural number
includes the singular.

 

14.15.                  Headings.  The headings of the articles and sections of
this Agreement are inserted for convenience only and will not be deemed to
constitute a part of this Agreement.

 

25

 

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

 

14.17.                  Delays, Omission, and Waivers.  No delay or omission to exercise any right,
power or remedy accruing to the Company or to Elitech and Investor upon any
breach or default of any party hereto under this Agreement will impair any such
right, power or remedy of the Company, Elitech or Investor, nor will it be
construed to be a waiver of any such breach or default or an acquiescence
therein, nor will any similar breach or default be deemed a waiver of any other
breach or default theretofore or thereafter occurring; nor will any waiver of
any single breach or default be deemed a waiver of any other breach or default
theretofore or thereafter occurring.  Any
waiver, permit, consent or approval of any kind or character on the part of the
Company, Elitech or Investor of any breach or default under this Agreement or
any waiver on the part of the Company, Elitech or Investor of any provisions or
conditions of this Agreement must be in writing and will be effective only to
the extent specifically set forth in such writing.

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 

26

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
and delivered as of the day and year first written above.

 

	
  THE
  COMPANY:

  	
  CORGENIX
  MEDICAL CORPORATION, a

  
	
   

  	
  Nevada
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  Douglass T. Simpson

  
	
   

  	
  Its:
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  ELITECH:

  	
  FINANCIÈRE
  ELITECH SAS, a

  
	
   

  	
  société
  par actions simplifiée organized under the laws of France

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  Pierre Debiais

  
	
   

  	
  Its:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
  INVESTOR:

  	
  WESCOR, INC.,
  a

  
	
   

  	
  Utah
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  Janice Wallentine

  
	
   

  	
  Its:
  Chief Financial Officer

  

 

27

 

EXHIBITS CHECKLIST

 

	
  Exhibit

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  Form of
  Assignment and Assumption Agreement

  
	
   

  	
   

  	
   

  
	
  B

  	
   

  	
  Form of
  Distribution Agreement

  
	
   

  	
   

  	
   

  
	
  C

  	
   

  	
  Form of
  Joint Product Development Agreement

  
	
   

  	
   

  	
   

  
	
  D

  	
   

  	
  Form of
  Warrant

  
	
   

  	
   

  	
   

  
	
  E

  	
   

  	
  Form of
  Confidentiality Agreement

  

 

28

 

EXHIBIT A

 

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

 

[See
attached.]

 

 

SCHEDULE A

 

DISTRIBUTORSHIP AGREEMENTS

 

 

EXHIBIT B

 

FORM OF DISTRIBUTION AGREEMENT

 

[See
attached.]

 

 

EXHIBIT C

 

FORM OF JOINT PRODUCT DEVELOPMENT AGREEMENT

 

[See
attached.]

 

 

EXHIBIT D

 

FORM OF WARRANT

 

[See
attached.]

 

 

EXHIBIT E

 

FORM OF CONFIDENTIALITY AGREEMENT

 

[See
attached.]Exhibit
10.2

 

THIS
WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER
SECURITIES LAWS, HAVE BEEN TAKEN FOR INVESTMENT, AND MAY NOT BE SOLD OR
TRANSFERRED OR OFFERED FOR SALE OR TRANSFER UNLESS A REGISTRATION STATEMENT
UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS WITH RESPECT TO
SUCH SECURITIES IS THEN IN EFFECT, OR SUCH REGISTRATION UNDER THE SECURITIES
ACT AND OTHER APPLICABLE SECURITIES LAWS IS NOT REQUIRED.

 

 

Corgenix Medical Corporation

 

WARRANT TO PURCHASE COMMON STOCK

2010

 

	
  Number
  of Shares: 4,166,667

  	
   

  	
  Warrant
  Holder: Wescor, Inc.

  
	
   

  	
   

  	
   

  
	
  Original
  Issue Date: July 16, 2010

  	
   

  	
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:
  Michael Saunders

  
	
   

  	
   

  	
  370
  West 1700 South

  
	
   

  	
   

  	
  Logan,
  Utah 84321

  
	
   

  	
   

  	
  Email:
  m.saunders@elitechgroup.com

  
	
   

  	
   

  	
   

  
	
  Expiration
  Date: July 15, 2015

  	
   

  	
  Telephone:
  (435) 752-6011

  
	
   

  	
   

  	
  Facsimile:
  (425) 752-4127

  
	
   

  	
   

  	
   

  
	
  Exercise
  Price per Share: $0.15

  	
   

  	
   

  

 

Corgenix
Medical Corporation, a company organized and existing under the laws of the
State of Nevada (the “Company”),
hereby certifies that, for value received, Wescor, Inc., or its registered
assigns (the “Warrant Holder” or “Warrant Holders”), is entitled,
subject to the terms set forth below, to purchase from the Company up to four
million one hundred sixty-six thousand six hundred sixty-seven (4,166,667) shares
(as adjusted from time to time as provided in Section 6,
collectively, the “Warrant Shares”
and individually, the “Warrant Share”)
of common stock, $.001 par value, of the Company (the “Common
Stock”) at a price of fifteen cents ($0.15) per Warrant Share
(as adjusted from time to time as provided in Section 6, the “Exercise Price”), at any time and
from time to time from and after the date hereof and through and including 5:00 p.m.
Mountain Time on July 15, 2015 (the “Expiration Date”):

 

1

 

1.                                       Registration
of Warrant.  The Company
shall register this Warrant to Purchase Common Stock (“Warrant”)
upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of
the record Warrant Holder from time to time.

 

2.                                       Investment
Representation.  The Warrant
Holder by accepting this Warrant represents that the Warrant Holder is
acquiring this Warrant for its own account or the account of an affiliate for
investment purposes and not with the view to any offering or distribution and
that the Warrant Holder will not sell or otherwise dispose of this Warrant or
the underlying Warrant Shares in violation of applicable securities laws.  The Warrant Holder acknowledges that the
certificates representing any Warrant Shares will bear a legend indicating that
they have not been registered under the Securities Act and may not be sold by
the Warrant Holder except pursuant to an effective registration statement or
pursuant to an exemption from registration requirements of the Securities Act
and in accordance with United States federal and state securities laws.

 

3.                                       Validity
of Warrant and Issue of Shares.  The Company represents and warrants that this
Warrant has been duly authorized and validly issued.

 

4.                                       Registration
of Transfers and Exchange of Warrants.

 

(a)                                  Subject to
compliance with the legend set forth on the face of this Warrant, the Warrant
Holder may transfer all or part of this Warrant at any time to any other
transferee acceptable to the Company, in the Company’s sole discretion.  Upon approval of such transfer, the Company
shall register the transfer of any portion of this Warrant in the Warrant Register,
upon surrender of this Warrant with the Company’s form of assignment duly
completed and signed, to the Company at the office specified in or pursuant to Section 10.  Upon any such registration or transfer, a new
warrant to purchase Common Stock, in substantially the form of this Warrant
(any such new warrant, a “New Warrant”),
evidencing the portion of this Warrant so transferred shall be issued to the
transferee and a New Warrant evidencing the remaining portion of this Warrant
not so transferred, if any, shall be issued to the transferring Warrant
Holder.  The acceptance of the New
Warrant by the transferee thereof shall be deemed the acceptance of such
transferee of all of the rights and obligations of the Warrant Holder.

 

(b)                                 This Warrant is
exchangeable, upon the surrender hereof by the Warrant Holder to the office of
the Company specified in or pursuant to Section 10 for one or more
New Warrants, evidencing in the aggregate the right to purchase the number of
Warrant Shares which may then be purchased hereunder.  Any such New Warrant will be dated the date
of such exchange.

 

5.                                       Exercise
of Warrants.

 

(a)                                  Upon surrender
of this Warrant with the Form of Election to Exercise attached hereto duly
completed and signed to the Company, at its address set forth in Section 10,
and upon payment and delivery of the Exercise Price per Warrant Share
multiplied by the number of Warrant Shares that the Warrant Holder intends to
purchase hereunder, in lawful money of the United States of America, by
tendering cash, wire transferring or delivering a certified check or bank
cashier’s check, payable to the order of the Company, all as specified by the
Warrant Holder in the Form of Election to Exercise, the Company shall
promptly issue or

 

2

 

cause to be issued and cause to be delivered to or
upon the written order of the Warrant Holder and in such name or names as the
Warrant Holder may designate (subject to the restrictions on transfer described
in the legend set forth on the face of this Warrant), a certificate for the
Warrant Shares issuable upon such exercise, with such restrictive legend as
required by the Securities Act.  Any
person so designated by the Warrant Holder to receive Warrant Shares shall be
deemed to have become holder of record of such Warrant Shares as of the Date of
Exercise of this Warrant, irrespective of the date of delivery of the
certificate evidencing such shares, except that, if the date of such receipt is
a date on which the stock transfer books of the Company are closed, such person
will be deemed to have become the holder of such shares at the close of
business on the next succeeding date on which the stock transfer books are
open.

 

(b)                                 A “Date of Exercise” means the date on
which the Company shall have received (i) this Warrant (or any New
Warrant, as applicable), with the Form of Election to Exercise attached
hereto (or attached to such New Warrant) appropriately completed and duly
signed, and (ii) payment of the Exercise Price for the number of Warrant
Shares so indicated by the Warrant Holder to be purchased.

 

(c)                                  This Warrant
shall be exercisable at any time and from time to time for such number of
Warrant Shares as is indicated in the attached Form of Election To
Exercise.  If less than all of the
Warrant Shares which may be purchased under this Warrant are exercised at any
time, the Company shall issue or cause to be issued, at its expense, a New
Warrant evidencing the right to purchase the remaining number of Warrant Shares
for which no exercise has been evidenced.

 

6.                                       Adjustment
of Exercise Price and Number of Shares.  The number of the shares of Common Stock or
other securities at the time issuable upon exercise of this Warrant, and the
Exercise Price therefore, are subject to adjustment upon the occurrence of the
following events; provided, however that the Exercise Price per share will not
be less than the par value per share of the Common Stock.  For the purpose of this Section 6,
Common Stock includes shares now or hereafter authorized of any class of common
stock of the Company and any other stock of the Company, however designated,
that has the right to participate in any distribution of the assets or earnings
of the Company without limit as to per share amount (excluding, and subject to
any senior rights of, any class or series of preferred stock).

 

(a)                                  Adjustment
for Stock Splits, Stock Dividends, Recapitalizations, Etc.  The Exercise Price of this Warrant and the
number of shares of Common Stock or other securities at the time issuable upon
exercise of this Warrant shall be appropriately adjusted to reflect any stock
dividend, stock split, combination of shares, reclassification,
recapitalization or other similar event affecting the number of outstanding
shares of stock or securities.

 

(b)                                 Capital
Reorganization or Reclassification.  If the Common Stock issuable upon the
exercise of this Warrant shall be changed into the same or different number of
shares of any class or classes of Common Stock, whether by capital
reorganization, reclassification or otherwise (other than a reorganization,
merger, consolidation or sale of assets provided for elsewhere in this Warrant)
then, in and as a condition to the effectiveness of each such event, the
Warrant Holder shall have the right thereafter to exercise this Warrant for the
kind and amount of Common Stock and other securities and property receivable
upon such

 

3

 

reorganization, reclassification or other change by
the holder of the number of shares of Common Stock for which such Warrant might
have been exercised immediately prior to such reorganization, reclassification
or change, all subject to further adjustment as provided herein.

 

(c)                                  Merger. In case of a
dividend or distribution paid pursuant to a plan of consolidation or merger of
the Company with another Person (as defined below) (other than a merger or
consolidation in which the Company is the continuing Person and the Common
Stock is not exchanged for securities, property or assets issued, delivered or
paid by another Person), or in case of any lease, sale or conveyance to another
Person (other than to a wholly owned domestic subsidiary of the Company so long
as such subsidiary continues to be wholly owned) of all or substantially all of
the property or assets of the Company, this Warrant shall thereafter (until the
Expiration Date) evidence the right to receive, upon its exercise, in lieu of
Common Stock deliverable upon such exercise, immediately prior to such
consolidation, merger, lease, sale or conveyance the kind and amount of shares
and/or other securities and/or property and assets and/or cash that the Warrant
Holder would have been entitled to receive upon such consolidation, merger,
lease, sale or conveyance had the Warrant Holder exercised this Warrant
immediately prior to such consolidation, merger, lease, sale or conveyance; provided, however, to the extent a
stockholder would have had an opportunity to elect the form of consideration in
such a transaction, the Warrant Holder electing to not exercise its warrants
shall be entitled to the same consideration that a holder of such Common Stock
failing to make any such election would have been entitled to receive upon such
transaction.  The Company shall not
consummate any transaction that effects or permits any such event or occurrence
unless each Person whose shares of stock, securities or assets will be issued,
delivered or paid to the holders of the Common Stock (including the Company
with respect to clause (ii) below), prior to or simultaneously with the
consummation of the transaction, (i) is a corporation organized and
existing under the laws of the United States of America or any State or the
District of Columbia, and (ii) expressly assumes, or in the case of the
Company, acknowledges, by a Warrant supplement or other document in a form
substantially similar hereto, executed and delivered to the Warrant Holder
thereof, the obligation to deliver to such Warrant Holder such shares of stock,
securities or assets as, in accordance with the foregoing provisions of this Section 6(c),
such Warrant Holder is entitled to purchase, and all other obligations and
liabilities under this Warrant, including the obligations and liabilities in
respect of subsequent adjustments that are required under this Warrant.  For purposes of this Section 6(c),
“Person”
shall mean an individual, limited or general partnership, corporation,
association, company, joint-stock company, business trust, joint venture, trust
or unincorporated organization, or any other entity, including a government or
agency or political subdivision thereof.

 

(d)                                 Certificate
as to Adjustments.  In case of
any adjustment or readjustment in the price or number of securities issuable on
the exercise of this Warrant, the Company will promptly give written notice
thereof to the Warrant Holder in the form of a certificate, certified and
confirmed by the board of directors of the Company (the “Board of
Directors”), setting forth such adjustment or readjustment and
showing in reasonable detail the facts upon which such adjustment or
readjustment is based.   The Board of
Directors will also issue to the Warrant Holder a substitute Warrant reflecting
the adjusted number of shares and/or Exercise Price upon the surrender of this
Warrant to the Company.

 

4

 

(e)                                  Minimum
Adjustment.  No
adjustment of the Exercise Price shall be required under this Section 6
if the amount of such adjustment is less than one percent (1.0%) of the
Exercise Price then in effect; provided,
however, that any adjustments that by reason of the foregoing are
not required at the time to be made shall be carried forward and taken into
account and included in determining the amount of any subsequent adjustment. If
the Company shall take a record of holders of Common Stock for the purpose of
entitling them to receive any dividend or distribution and thereafter and
before the distribution to stockholders of any such dividend or distribution,
legally abandons its plan to pay or deliver such dividend or distribution, then
no adjustment of the Exercise Price shall be required by reason of the taking
of such record. All calculations under this Section 6 shall be made
to the nearest cent.

 

(f)                                    Equitable
Adjustment.  In case any
event shall occur as to which the other provisions of this Section 6
are not strictly applicable but the failure to make any adjustment would not
fairly protect the purchase rights represented by this Warrant in accordance
with the essential intent and principles hereof, then, in each such case, the
Company shall effect such adjustment, on a basis consistent with the essential
intent and principles established in this Section 6, as may be
necessary to preserve, without dilution, the purchase rights represented by this
Warrant.

 

7.                                       Reservation
of Shares.  The Company
agrees at all times to reserve and hold available out of its authorized but
unissued shares of Common Stock the number of shares of Common Stock issuable
upon the full exercise of this Warrant. 
The Company further covenants and agrees that all shares of Common Stock
that may be delivered upon the exercise of this Warrant or any New Warrant, as
applicable, will, upon delivery, be fully paid and nonassessable and free from
all taxes, liens and charges with respect to the purchase thereof under this
Warrant or any such New Warrant.

 

8.                                       Fractional
Shares.  The Company
shall not be required to issue or cause to be issued fractional Warrant Shares
on the exercise of this Warrant.  The
number of full Warrant Shares that shall be issuable upon the exercise of this
Warrant shall be computed on the basis of the aggregate number of Warrants
Shares purchasable on exercise of this Warrant so presented.  If any fraction of a Warrant Share would,
except for the provisions of this Section 8, be issuable on the
exercise of this Warrant, the Company shall pay an amount in cash equal to the
Exercise Price multiplied by such fraction.

 

9.                                       Prior
Notice as to Certain Events.  In case at any time:

 

(a)                                  the Company
shall fix a record date with respect to the holders of any class of securities
of the Company for the purpose of determining which of such holders are
entitled to dividends or other distributions, or any rights to subscribe for,
purchase or otherwise acquire any shares of capital stock of any class or any
other securities or property;

 

(b)                                 the Company
shall declare a dividend (or any other distribution) on the Common Stock,
including any extraordinary dividend;

 

5

 

(c)                                  the Company
shall authorize the granting to the holders of the Common Stock of pro rata
rights, options or warrants to subscribe for or purchase any shares of capital
stock of the Company;

 

(d)                                 there occurs
any capital reorganization of the Company, or reclassification of the Common
Stock of the Company (other than a merger which is effected solely to change
the jurisdiction of incorporation of the Company), or any consolidation or
merger to which the Company is a party and for which approval of any stockholders
of the Company is required, or the sale or transfer of all or substantially all
of the assets of the Company (other than to a wholly owned domestic subsidiary
of the Company so long as such subsidiary continues to be wholly owned); or

 

(e)                                  there occurs
any voluntary or involuntary dissolution, liquidation or winding up of the
Company;

 

then
in each such event the Company shall cause to be mailed to the registered
Warrant Holder at its last address as shown in the Warrant Register, no later
than ten (10) business days prior to the earliest date specified therein,
a notice stating (i) the date on which a record is to be taken for the
purpose of such dividend, distribution, rights, options or warrants and stating
the amount and character of such dividend, distribution, or right, or, if a
record is not to be taken, the date as of which the holders of Common Stock of
record to be entitled to such dividend, distribution, rights, options or
warrants are to be determined, or (ii) the date on which such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation or
winding up (or amendment thereto) is expected to become effective, and the date
as of which it is expected that holders of record of such class of Common Stock
shall be entitled to exchange their Common Stock for securities, cash or other
property deliverable upon such reclassification, consolidation, merger,
transfer, dissolution, liquidation or winding up.

 

10.                                 Notice.  All notices and other communications hereunder
shall be in writing and shall be deemed to have been given (i) on the date
they are delivered if delivered in person; (ii) on the date initially
received if delivered by facsimile transmission followed by registered or
certified mail confirmation; (iii) on the date delivered by an overnight
courier service; or (iv) on the third business day after it is mailed by
registered or certified mail, return receipt requested with postage and other
fees prepaid as follows:

 

If to the Company:

 

Corgenix
Medical Corporation

11575
Main Street, Suite 400

Broomfield,
Colorado 80020

Attention:
Chief Financial Officer

Facsimile:
(303) 453-8898

 

6

 

If to the Warrant Holder:

 

Wescor, Inc.

Attention:
Michael Saunders

370
West 1700 South

Logan,
Utah 84321

Facsimile:  (425) 752-4127

 

11.                                 Additional
Covenants of the Company.

 

(a)                                  For so long as
the Common Stock is listed for trading on any regional or national securities
exchange, and for so long as and to the extent that such requirements apply to
the Company, the Company shall comply with the reporting requirements of
Sections 13 and 15(d) of the Securities Exchange Act of 1934, as amended.

 

(b)                                 The Company
shall not, by amendment of its Articles of Incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities, or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant.  Without limiting the generality of the
foregoing, the Company (i) will at all times reserve and keep available,
solely for issuance and delivery upon exercise of this Warrant, shares of
Common Stock issuable from time to time upon exercise of this Warrant,
(ii) will not increase the par value of any shares of capital stock
receivable upon exercise of this Warrant above the amount payable therefor upon
such exercise, and (iii) will take all such actions as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid
and nonassessable stock.

 

12.                                 Miscellaneous.

 

(a)                                  This Warrant
shall be binding on and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. 
This Warrant may be amended only by a writing signed by the Company and
the Warrant Holder.

 

(b)                                 Nothing in this
Warrant shall be construed to give to any Person other than the Company and the
Warrant Holder any legal or equitable right, remedy or cause of action under
this Warrant; this Warrant shall be for the sole and exclusive benefit of the
Company and the Warrant Holder.

 

(c)                                  This Warrant
shall be governed by, construed and enforced in accordance with the internal
laws of the State of Nevada, without regard to the principles of conflicts of
law thereof.

 

(d)                                 The headings
herein are for convenience only, do not constitute a part of this Warrant and
shall not be deemed to limit or affect any of the provisions hereof.

 

(e)                                  In case any one
or more of the provisions of this Warrant shall be invalid or unenforceable in
any respect, the validity and enforceability of the remaining terms and
provisions of this Warrant shall not in any way be affected or impaired thereby
and the parties will attempt in good faith to agree upon a valid and
enforceable provision which shall be a

 

7

 

commercially reasonably substitute therefore, and
upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

(f)                                    The Warrant
Holder shall not, by virtue hereof, be entitled to any voting or other rights
of a stockholder of the Company, either at law or equity, and the rights of the
Warrant Holder are limited to those expressed in this Warrant.

 

(g)                                 In any action
or proceeding brought to enforce any provision of this Warrant, the prevailing
party shall be entitled to recover reasonable attorneys’ fees in addition to
its costs and expenses and any other available remedy.

 

[Remainder of page intentionally left blank.  Signature page follows.]

 

8

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by the
authorized officer as of the date first above stated.

 

	
  CORGENIX
  MEDICAL CORPORATION, a Nevada corporation

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:
  Douglass T. Simpson

  
	
  Its:
  Chief Executive Officer

  

 

9

 

FORM OF ELECTION TO EXERCISE

 

(To
be executed by the Warrant Holder to exercise its right to purchase shares of
Common Stock under the foregoing Warrant)

 

To:  Corgenix Medical
Corporation:

 

In
accordance with the Warrant enclosed with this Form of Election to
Exercise, the undersigned hereby irrevocably elects to purchase
                            
shares of common stock, $.001 par value, of Corgenix Medical Corporation (“Common Stock”) and encloses the
Warrant and $         for each Warrant
Share being purchased or an aggregate of
$                                
and hereby makes payment therefor by tendering cash, wire transferring or
delivering a certified check or bank cashier’s check, payable to the order of
the Company, which sum represents the aggregate Exercise Price (as defined in
the Warrant).

 

The
undersigned requests that certificates for the shares of Common Stock issuable
upon this exercise be issued in the name of:

 

 

 

 

(Please
print name and address)

 

 

(Please
insert Social Security or Tax Identification Number)

 

If
the number of shares of Common Stock issuable upon this exercise shall not be
all of the shares of Common Stock which the undersigned is entitled to purchase
in accordance with the enclosed Warrant, the undersigned requests that a New
Warrant (as defined in the Warrant) evidencing the right to purchase the shares
of Common Stock not issuable pursuant to the exercise evidenced hereby be
issued in the name of and delivered to:

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Please
  print name and address)

  	
   

  

 

	
  Dated:

  	
  Name
  of Warrant Holder:

  
	
   

  	
   

  
	
   

  	
  (Print)

  	
   

  
	
   

  	
  (By:)

  	
   

  
	
   

  	
  (Name:)

  	
   

  
	
   

  	
  (Title:)

  	
   

  
	
   

  	
  Signature
  must conform in all respects to name of Warrant Holder as specified on the
  face of the Warrant

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