Document:

Unassociated Document

EXHIBIT 10.8

     

    PURCHASE AND ASSIGNMENT
AGREEMENT

     

    THIS
PURCHASE AND ASSIGNMENT AGREEMENT (this "Agreement"), is made
on April 9 ___, 2008, among Westek Ltd. (“Westek” or the “Assignor”), Medical
Diagnostic Innovations Ltd. (the “Assignee”), and In
Veritas Medical Diagnostics, Inc. (the "Company").

     

    WHEREAS, the Company is
indebted to Westek in the aggregate sum of One Million Eight Hundred Thousand
($1,800,000) Dollars (the “Debt”) pursuant to certain Promissory Notes set forth
on Schedule I attached hereto (collectively, the “Notes”), issued on the dates
and in the amounts as indicated on Schedule I.

     

    WHEREAS, the Company and / or
its wholly owned subsidiary IVMD (UK) Limited (together “the Group”) is also
indebted to Westek in the aggregate sum of Seven Hundred and Five Thousand Five
Hundred and Twenty Four ($705,524) Dollars (the “Short Term Advances”) which
were advanced to the Company and / or its IVMD (UK) Limited.

     

    WHEREAS, Assignor desires to
assign to Assignee and Assignee desires to accept from Assignor the Debt and the
Short Term Advances on the basis of the representations, warranties and
agreements contained in this Agreement, and upon the terms but subject to the
conditions set forth herein;

     

    WHEREAS,

     

    NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the adequacy of which is hereby acknowledged, the parties hereto
agree as follows:

     

    1. Purchase
Price

     

    
      	
              a)  

            	
              As
      consideration for assignment set forth herein of the Debt owed by the
      Company to the Assignor, the Assignee agrees to pay to Westek the
      aggregate sum of Ninety Thousand ($90,000) Dollars (the “Debt Purchase
      Price”) within 30 days of the date of this
    Agreement.

            

    

     

    
      	
              b)  

            	
              As
      consideration for assignment set forth herein of the Short Term Advances
      owed by the Company to the Assignor, the Assignee agrees to pay to Westek
      the aggregate sum of  One Hundred and Forty One Thousand One
      Hundred and Five ($141,105) Dollars (the “Short Term Purchase
      Price”) within 30 days of the date of this
    agreement.

            

    

     

    2. Assignment.  

     

    
      	
              a)  

            	
              Upon
      execution hereof the Assignor hereby absolutely, irrevocably and
      unconditionally sells, assigns, conveys, contributes and transfers to the
      Assignee the Debt and the Short Term Advances by the Assignor and all of
      its rights and benefits thereunder and conferred therein, including
      without limitation the right to collect from the Company the principal
      amounts outstanding thereunder, plus accrued but unpaid
      interest.

            

    

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    
      	
              b)  

            	
              Closing
      Procedures. The closing of the assignment contemplated hereunder
      shall take place simultaneously with the date of execution hereof (the
      “Closing
      Date”) or such other date as mutually agreed by the parties hereto,
      On the Closing Date,

            

    

     

    
      	
              i)  

            	
              The
      Assignor shall deliver to the Assignor the original Debentures as set
      forth on Schedule I and any and all evidence of the Short Term
      Advances

            

    

     

    3. Additional
Documents.  The Assignor and Assignee agree to take such
further action and to execute and deliver, or cause to be executed and
delivered, any and all other documents which are, in the reasonable opinion of
their counterparty, necessary to carry out the terms and conditions of this
Assignment.

     

    4. Effective
Date and Counterpart Signature.  This Agreement shall be
effective as of the date first written above.  This Agreement, and
acceptance of same, may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument. Confirmation of execution by telex or by telecopy or
telefax of a facsimile signature page shall be binding upon that party so
confirming.

     

    5. Representations
and Warranties of the Assignee.

     

    (a) Organization;
Authority.  The Assignee is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization with full right, corporate, partnership or other applicable power
and authority to enter into and to consummate the transactions contemplated by
this Agreement and otherwise to carry out its obligations thereunder, and the
execution, delivery and performance by the Assignee of the transactions
contemplated by this Agreement have been duly authorized by all necessary
corporate or similar action on the part of the Assignee.  This
Agreement, when executed and delivered by the Assignee, will constitute a valid
and legally binding obligation of the Assignee, enforceable against the Assignee
in accordance with its terms, except (a) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and any other
laws of general application affecting enforcement of creditors’ rights
generally, (b) as limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies, or (c) to the
extent the indemnification provisions contained herein may be limited by federal
or state securities laws.

    

    (b) Ownership. Assignee
owns and is conveying to Assignee all of its rights, title and interests to the
Shares and the Warrant, free and clear of all liens, mortgages, pledges,
security interests, encumbrances or charges of any kind or
description

    

    (c) Investment Experience;
Access to Information and Preexisting Relationship.  The
Assignee (a) either alone or together with its representatives, has such
knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of this investment and make an informed decision
to so invest, and has so evaluated the risks and merits of such investment, (b)
has the ability to bear the economic risks of this investment and can afford a
complete loss of such investment, (c) understands the terms of and risks
associated with the acquisition of the Debentures, including, without
limitation, a lack of liquidity, price transparency or pricing availability and
risks associated with the industry in which the Company operates, (d) has had
the opportunity to review such disclosure regarding the Company, its business,
its financial condition and its prospects as the Assignee has determined to be
necessary in connection with the Assignment of the Debentures, including,
without limitation, the Company’s Annual Report on Form 10-K (or substantially
equivalent form) for its most recently completed fiscal year, the Company’s
Quarterly Reports on Form 10-Q (or substantially equivalent form) for the fiscal
quarters since the end of such completed fiscal year, and the Company’s Current
Reports on Form 8-K (or substantially equivalent form) since the end of such
completed fiscal year, each as amended.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (d) Assignee
Status.  At the time the Assignee was offered the Debentures,
it was, and as of the date hereof it is, an “accredited investor”
as that term is defined in Rule 501(a) of Regulation D under the Securities
Act.  The Assignee is not, and is not required to be registered as, a
broker-dealer under Section 15 of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”).

    

    (e) Restrictions on
Transfer.  The Assignee understands that (a) the Debentures
(including the shares of Common Stock underlying such Debentures) have not been
registered under the Securities Act or the securities laws of any state, (b) the
Debentures (including the shares of Common Stock underlying such Debenture) are
and will be “restricted
securities” as said term is defined in Rule 144 of the Rules and
Regulations promulgated under the Securities Act (“Rule 144”), (c) the
Debentures (including the shares of Common Stock underlying such Debenture) may
not be sold, pledged or otherwise transferred unless a registration statement
for such transaction is effective under the Securities Act and any applicable
state securities laws, or unless an exemption from such registration provisions
is available with respect to such transaction, and (d) the Debentures (including
the shares of Common Stock underlying such Debentures) will bear a legend
substantially as set forth below:

    

    NEITHER
THIS DEBENTURE NOR THE SECURITIES INTO WHICH THIS DEBENTURE IS CONVERTIBLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS.

     

    (f) General
Solicitation.  The Assignee is not accepting such Assignment as
a result of any advertisement, article, notice or other communication regarding
the Debentures published in any newspaper, magazine or similar media or
broadcast over television or radio or presented at any seminar or any other
general solicitation or general advertisement.

    

    (g) No Conflicts;
Advice.  Neither the execution and delivery of this Agreement,
nor the consummation of the transactions contemplated hereby, does or will
violate any constitution, statute, regulation, rule, injunction, judgment,
order, decree, ruling, charge or other restriction of any government,
governmental agency, or court to which the Assignee is subject or any provision
of its organizational documents or other similar governing instruments, or
conflict with, violate or constitute a default under any agreement, credit
facility, debt or other instrument or understanding to which the Assignee is a
party.  The Assignee has consulted such legal, tax and investment
advisors as it, in its sole discretion, has deemed necessary or appropriate in
connection with the Assignment of the Debenture.

    

    (h) No
Litigation.  There is no action, suit, proceeding, judgment,
claim or investigation pending, or to the knowledge of the Assignee, threatened
against the Assignee which could reasonably be expected in any manner to
challenge or seek to prevent, enjoin, alter or materially delay any of the
transactions contemplated by this Agreement.

    

    (i) Consents.  No
authorization, consent, approval or other order of, or declaration to or filing
with, any governmental agency or body or other Person is required for the valid
authorization, execution, delivery and performance by the Assignee of this
Agreement and the consummation of the transactions contemplated
hereby.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    (j) Stop Transfer
Notices.   The Assignee agrees that, in order to ensure
compliance with the restrictions referred to herein, appropriate “stop transfer”
instructions may be issued to the Company’s transfer agent.

     

    6. Representations
and Warranties of the Assignor

     

    (a)           Organization;
Authority.  The Assignor is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization with full right, corporate, partnership or other applicable power
and authority to enter into and to consummate the transactions contemplated by
this Agreement and otherwise to carry out its obligations thereunder, and the
execution, delivery and performance by the Assignor of the transactions
contemplated by this Agreement have been duly authorized by all necessary
corporate or similar action on the part of the Assignor.  This
Agreement, when executed and delivered by the Assignor, will constitute a valid
and legally binding obligation of the Assignor, enforceable against the Assignor
in accordance with its terms, except (a) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and any other
laws of general application affecting enforcement of creditors' rights
generally, (b) as limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies, or (c) to the
extent the indemnification provisions contained herein may be limited by federal
or state securities laws.

     

    (b)           Ownership. Assignor
owns and is conveying to Assignee all of its rights, title and interests to the
assigned Debentures, and Short Term Advances free and clear of all liens,
mortgages, pledges, security interests, encumbrances or charges of any kind or
description.

     

    (c)           No Consents, Approvals,
Violations or Breaches. Neither the execution and delivery of this
Agreement by the Assignor, nor the consummation by Assignor of the transactions
contemplated hereby, will (i) require any consent, approval, authorization or
permit of, or filing, registration or qualification with or prior notification
to, any governmental or regulatory authority under any law of the United States,
any state or any political subdivision thereof applicable to Assignor, (ii)
violate any statute, law, ordinance, rule or regulation of the United States,
any state or any political subdivision thereof, or any judgment, order, writ,
decree or injunction applicable to Assignor or any of Assignor’s properties or
assets, the violation of which would have a material adverse effect upon
Assignor, or (iii) violate, conflict with, or result in a breach of any
provisions of, or constitute a default (or any event which, with or without due
notice or lapse of time, or both, would constitute a default) under, or result
in the termination of, or accelerate the performance required by, any of the
terms, conditions or provisions of any note, bond, mortgage, indenture, deed of
trust, license, lease, agreement or other instrument or obligation to which
Assignor is a party or by which Assignor or any of Assignor’s properties or
assets may be bound which would have a material adverse effect upon
Assignor.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    7. Governing
Law; Submission to Jurisdiction.  THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES.  EACH PARTY AGREES THAT
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING IN ANY WAY TO THIS AGREEMENT
SHALL BE BROUGHT IN A U.S. FEDERAL OR STATE COURT OF COMPETENT JURISDICTION
SITTING IN HUDSON COUNTY, IN THE STATE OF NEW YORK.  EACH PARTY HEREBY
IRREVOCABLY AND UNCONDITIONALLY CONSENTS TO THE JURISDICTION OF SUCH COURT AND
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY DEFENSE OF AN INCONVENIENT
FORUM OR A LACK OF PERSONAL JURISDICTION TO THE MAINTENANCE OF ANY ACTION OR
PROCEEDING AND ANY RIGHT OF JURISDICTION OR VENUE ON ACCOUNT OF THE PLACE OF
RESIDENCE OR DOMICILE OF ANY PARTY HERETO.  EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

     

    8. Amendments.  No
provision hereof may be waived or modified other than by an instrument in
writing signed by the party against whom enforcement is sought.

     

    9. Severability.  If
any provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity or enforceability of any provision of this Agreement in any other
jurisdiction.

     

    10. Release.  Upon
the execution of this Agreement by the Assignor, the Assignee, and the Company
and completion of the obligations contained in Paragraph 1 and 2:

     

    
      	
              a)  

            	
              any
      and all commitments, rights and obligations to the Company by the Assignor
      set forth under the Debentures or arising under the Short Term Advances
      shall be terminated, and all amounts due and payable by the Company to the
      Assignor under the Debentures and the Short Term Advances shall be deemed
      to be paid in full and complete satisfaction of all outstanding
      obligations;

            

    

     

    
      	
              b)  

            	
              the
      Assignee, on behalf of itself and on behalf of its affiliates, and its and
      their respective officers, directors, partners, general partner, limited
      partners, shareholders, associates, employees, members, parents,
      subsidiaries, affiliates, agents, predecessors, successors and assigns
      (collectively, the "Assignee Affiliated
      Parties"), hereby releases and forever discharges the Assignor and
      their affiliates, and their respective officers, directors, partners,
      general partner, limited partners, shareholders, associates, employees,
      members, parents, subsidiaries, affiliates, agents, predecessors,
      successors and assigns  (collectively, the "Assignor Affiliated
      Parties"), of and from any and all claims, complaints, demands,
      obligations, causes of action, choices in action and/or damages
      whatsoever, at law or in equity (collectively, "Claims") which such
      parties ever had or now have based on or arising out of events or
      circumstances occurring, or actions taken or failed to be taken, in each
      case, that are known or unknown by an Assignee or an Assignee Affiliated
      Party as of the date hereof, in connection with the
      Debentures.

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
              c)  

            	
              each
      of the Assignees, on its own behalf and on behalf of the Assignee
      Affiliated Parties, covenants, to the maximum extent permitted by law,
      that neither it nor any Assignee Affiliated Party shall at any time
      hereafter file, commence or maintain or authorize any third party to file,
      commence or maintain on its behalf, any suit, action or proceeding before
      any federal, state or local court, administrative body, agency, authority
      or arbitral organization or other tribunal against any of the Assignor
      Affiliated Parties with respect to any Claims released pursuant to
      Paragraph 10(b).

            

    

     

    
      	
              d)  

            	
              the
      Company, on behalf of itself and on behalf of its affiliates, and its and
      their respective officers, directors, partners, general partner, limited
      partners, shareholders, associates, employees, members, parents,
      subsidiaries, affiliates, agents, predecessors, successors and assigns,
      and anyone claiming by or through any of the foregoing (collectively, the
      "Company
      Affiliated Parties"), hereby releases and forever discharges the
      Assignor and the Assignor Affiliated Parties of and from any and all
      Claims which such parties ever had or now have based on or arising out of
      events or circumstances occurring, or actions taken or failed to be taken,
      in each case, that are known or unknown by the Company or a Company
      Affiliated Party as of the date hereof, in connection with the Debentures
      .

            

    

     

    
      	
              e)  

            	
              the
      Company, on its own behalf and on behalf of the Company Affiliated
      Parties, covenants, to the maximum extent permitted by law, that neither
      it nor any Company Affiliated Party shall at any time hereafter file,
      commence or maintain or authorize any third party to file, commence or
      maintain on its behalf, any suit, action or proceeding before any federal,
      state or local court, administrative body, agency, authority or arbitral
      organization or other tribunal against the Assignor or the Assignor
      Affiliated Parties with respect to any Claims released pursuant to
      Paragraph 10(d).

            

    

     

    
      	
              f)  

            	
              the
      Assignor, on behalf of itself and the Assignor Affiliated Parties, hereby
      releases and forever discharges the Assignee Parties, the Assignee
      Affiliated Parties, the Company and the Company Affiliated Parties of and
      from any and all Claims, known or unknown, which such parties ever had,
      now have or may hereafter have based on or arising out of the
      Debentures.

            

    

     

    
      	
              g)  

            	
              the
      Assignor, on its own behalf and on behalf of the Assignor Affiliated
      Parties, covenants, to the maximum extent permitted by law, that neither
      it nor any Assignor Affiliated Party shall at any time hereafter file,
      commence or maintain or authorize any third party to file, commence or
      maintain on its behalf, any suit, action or proceeding before any federal,
      state or local court, administrative body, agency, authority or arbitral
      organization or other tribunal against the Assignee Parties, the Assignee
      Affiliated Parties, the Company or the Company Affiliated Parties with
      respect to any Claims released pursuant to Paragraph
  10(f).

            

    

     

    12. Assignment.
No party may assign any of its rights under this Agreement without the prior
consent of the other party hereto; provided that Assignee may, without the
consent of any other party, assign all or any portion of its rights hereunder
to any of its Affiliates. Subject to the preceding sentence, this Agreement
will apply to, be binding in all respects upon, and inure to the benefit of the
successors and permitted assigns of the parties.  Nothing expressed or
referred to in this Agreement will be construed to give any Person other than
the parties to this Agreement any legal or equitable right, remedy, or claim
under or with respect to this Agreement or any provision of this
Agreement.  This Agreement and all of its provisions and conditions
are for the sole and exclusive benefit of the parties to this Agreement and
their successors and assigns.

    

    
      [Signature
page follows]

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

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

     

    
       

       

      
        
          	ASSIGNOR	 	
                   

                	 	
                   

                
	 	 	 	 	 	 
	
                  WESTEK
      LTD.

                	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Andrew
      Cotter  	 	 	 	
                   

                
	
                  Name:
      Andrew Cottor

                	 	 	 	 
	
                  Title:
      Managing Director

                	 	 	 	 
	 	 	 	 	 
	
                  ASSIGNEE

                	 	 	 	 
	 	 	 	 	 
	
                  MEDICAL
      DIAGNOSTIC INNOVATIONS LTD.

                	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Graham
    Cooper	 	
                   

                	 	
                   

                
	
                  Name:  Graham
      Cooper

                	 	 	 	 
	
                  Title:
      Director

                	 	 	 	 
	 	 	 	 	 
	
                  AGREED AND
      ACKNOWLEDGED

                	 	 	 	 
	 	 	 	 	 
	
                  IN
      VERITAS MEDICAL DIAGNOSTICS, INC.

                	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Martin Thorp	 	
                   

                	 	
                   

                
	
                  Name:
      Martin Thorp

                	 	 	 	 
	Title:  Chief
      Financial Officer	 	 	 	 

        

      

    

     

    
      
         

      

      
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    SCHEDULE
I

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    8ex109.htm

    
      EXHIBIT 10.9

      

       

      NEITHER THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON
EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY APPLICABLE STATE SECURITIES LAW AND NEITHER MAY BE SOLD OR
OTHERWISE TRANSFERRED UNTIL (I) A REGISTRATION STATEMENT UNDER SUCH
SECURITIES ACT AND SUCH APPLICABLE STATE SECURITIES LAWS SHALL HAVE BECOME
EFFECTIVE WITH REGARD THERETO, OR (II) THE COMPANY SHALL HAVE RECEIVED A
WRITTEN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY TO THE EFFECT THAT
REGISTRATION UNDER SUCH SECURITIES ACT AND SUCH APPLICABLE STATE SECURITIES LAWS
IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER.

       

      WARRANT

       

      Original
Issue Date: March___, 2008

       

      THIS
CERTIFIES THAT, FOR VALUE RECEIVED, Montgomery Equity Partners Ltd.
or its registered assigns (“Holder”) is entitled to
purchase from In Veritas
Medical Diagnostics, Inc. (the “Company”), on the terms and
conditions hereinafter set forth, at any time or from time to time from the date
hereof until 5:00 p.m., Eastern Time, on the fifth anniversary of the Original
Issue Date set forth above, or if such date is not a day on which the Company
(as hereinafter defined) is open for business, then the next succeeding day on
which the Company is open for business (such date is the “Expiration Date”), but not
thereafter, to purchase up to 5,000,000 shares of the Common Stock, par value
$.001 per share (the “Common
Stock”), of the Company, at a purchase price of $0.05 per share (the
“Exercise Price”), such
number of shares and Exercise Price being subject to adjustment upon the
occurrence of the contingencies set forth in this Warrant.  Each share
of Common Stock as to which this Warrant is exercisable is a “Warrant Share” and all such
shares are collectively referred to as the “Warrant
Shares.” 

       

      

       

      Section                      Exercise
of Warrant; Conversion of Warrant. 

       

      (a)           This
Warrant may, at the option of Holder, be exercised in whole or in part from time
to time by delivery to the Company on or before 5:00 p.m., Eastern Time, on the
Expiration Date, (i) a written notice of such Holder's election to exercise
this Warrant (the “Exercise
Notice”), which notice may be in the form of the Notice of Exercise
attached hereto, properly executed and completed by Holder or an authorized
officer thereof, and (ii) payment for the Warrant Shares (“Payment”), as
further described in Section 1(b), below (the items specified in (i) and (ii)
are collectively referred to as the “Exercise
Materials”). 

       

      (b)           Payment
may be made, at the option of Holder, by check payable to the order of the
Company or wire transfer, in an amount equal to the product of the Exercise
Price multiplied
by the number of Warrant Shares specified in the Exercise
Notice.

       

      Section
2.                  Adjustments
to Warrant Shares.

       

      The
number of Warrant Shares issuable upon the exercise hereof shall be subject to
adjustment as follows:

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      (a)           In
the event the Company is a party to a consolidation, share exchange, or merger,
or the sale of all or substantially all of the assets of the Company to, any
person, or in the case of any consolidation or merger of another corporation
into the Company in which the Company is the surviving corporation, and in which
there is a reclassification or change of the shares of Common Stock of the
Company, this Warrant shall after such consolidation, share exchange, merger, or
sale be exercisable for the kind and number of securities or amount and kind of
property of the Company or the corporation or other entity resulting from such
share exchange, merger, or consolidation, or to which such sale shall be made,
as the case may be (the “Successor Company”), to which
a holder of the number of shares of Common Stock deliverable upon the exercise
(immediately prior to the time of such consolidation, share exchange, merger, or
sale) of this Warrant would have been entitled upon such consolidation, share
exchange, merger, or sale; and in any such case appropriate adjustments shall be
made in the application of the provisions set forth herein with respect to the
rights and interests of Holder, such that the provisions set forth herein shall
thereafter correspondingly be made applicable, as nearly as may reasonably be,
in relation to the number and kind of securities or the type and amount of
property thereafter deliverable upon the exercise of this Warrant.  The
above provisions shall similarly apply to successive consolidations, share
exchanges, mergers, and sales.  Any adjustment required by this Section 2
(a) because of a consolidation, share exchange, merger, or sale shall be set
forth in an undertaking delivered to Holder and executed by the Successor
Company which provides that Holder shall have the right to exercise this Warrant
for the kind and number of securities or amount and kind of property of the
Successor Company or to which the holder of a number of shares of Common Stock
deliverable upon exercise (immediately prior to the time of such consolidation,
share exchange, merger, or sale) of this Warrant would have been entitled upon
such consolidation, share exchange, merger, or sale.  Such undertaking
shall also provide for future adjustments to the number of Warrant Shares and
the Exercise Price in accordance with the provisions set forth in Section 2
hereof.

       

      (b)           In
the event the Company should at any time, or from time to time after the
Original Issue Date, fix a record date for the effectuation of a stock split or
subdivision of the outstanding shares of Common Stock or the determination of
holders of Common Stock entitled to receive a dividend or other distribution
payable in additional shares of Common Stock, or securities or rights
convertible into, or entitling the holder thereof to receive directly or
indirectly, additional shares of Common Stock (hereinafter referred to as “Common Stock Equivalents”)
without payment of any consideration by such holder for the additional shares of
Common Stock or the Common Stock Equivalents (including the additional shares of
Common Stock issuable upon exercise or exercise thereof), then, as of such
record date (or the date of such dividend, distribution, split, or subdivision
if no record date is fixed), the number of Warrant Shares issuable upon the
exercise hereof shall be proportionately increased and the Exercise Price shall
be appropriately decreased by the same proportion as the increase in the number
of outstanding Common Stock Equivalents of the Company resulting from the
dividend, distribution, split, or subdivision.  Notwithstanding the
preceding sentence, no adjustment shall be made to decrease the Exercise Price
below $.001 per Share.

       

      (c)           In
the event the Company should at any time or from time to time after the Original
Issue Date, fix a record date for the effectuation of a reverse stock split, or
a transaction having a similar effect on the number of outstanding shares of
Common Stock of the Company, then, as of such record date (or the date of such
reverse stock split or similar transaction if no record date is fixed), the
number of Warrant Shares issuable upon the exercise hereof shall be
proportionately decreased and the Exercise Price shall be appropriately
increased by the same proportion as the decrease of the number of outstanding
Common Stock Equivalents resulting from the reverse stock split or similar
transaction.

       

      (d)           In
the event the Company should at any time or from time to time after the Original
Issue Date, fix a record date for a reclassification of its Common Stock, then,
as of such record date (or the date of the reclassification if no record date is
set), this Warrant shall thereafter be convertible into such number and kind of
securities as would have been issuable as the result of such reclassification to
a holder of a number of shares of Common Stock equal to the number of Warrant
Shares issuable upon exercise of this Warrant immediately prior to such
reclassification, and the Exercise Price shall be unchanged.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (e)           The
Company will not, by amendment of its Certificate of Incorporation or through
reorganization, consolidation, merger, dissolution, issue, or sale of
securities, sale of assets or any other voluntary action, void or seek to avoid
the observance or performance of any of the terms of the Warrant, but will at
all times in good faith assist in the carrying out of all such terms and in the
taking of all such actions as may be necessary or appropriate in order to
protect the rights of Holder against dilution or other impairment.  Without
limiting the generality of the foregoing, the Company (x) will not create a par
value of any share of stock receivable upon the exercise of the Warrant above
the amount payable therefor upon such exercise, and (y) will take all such
action as may be necessary or appropriate in order that the Company may validly
and legally issue fully paid and non-assessable shares upon the exercise of the
Warrant.

       

      (f)           When
any adjustment is required to be made in the number or kind of shares
purchasable upon exercise of the Warrant, or in the Exercise Price, the Company
shall promptly notify Holder of such event and of the number of shares of Common
Stock or other securities or property thereafter purchasable upon exercise of
the Warrants and of the Exercise Price, together with the computation resulting
in such adjustment.

       

      (g)           The
Company covenants and agrees that all Warrant Shares which may be issued will,
upon issuance, be validly issued, fully paid, and non-assessable.  The
Company further covenants and agrees that the Company will at all times have
authorized and reserved, free from preemptive rights, a sufficient number of
shares of its Common Stock to provide for the exercise of the Warrant in
full.

       

      Section
3.                  No
Stockholder Rights.

       

      This
Warrant alone shall not entitle Holder hereof to any voting rights or other
rights as a stockholder of the Company.

       

      Section
4.                  Transfer
of Securities.

       

      (a)           This
Warrant and the Warrant Shares and any shares of capital stock received in
respect thereof, whether by reason of a stock split or share reclassification
thereof, a stock dividend thereon, or otherwise, shall not be transferable
except upon compliance with the provisions of the Securities Act of 1933, as
amended (the “Securities
Act”) and applicable state securities laws with respect to the transfer
of such securities.  The Holder, by acceptance of this Warrant, agrees to
be bound by the provisions of Section 4 hereof and to indemnify and hold
harmless the Company against any loss or liability arising from the disposition
of this Warrant or the Warrant Shares issuable upon exercise hereof or any
interest in either thereof in violation of the provisions of this
Warrant.

       

      (b)           Each
certificate for the Warrant Shares and any shares of capital stock received in
respect thereof, whether by reason of a stock split or share reclassification
thereof, a stock dividend thereon or otherwise, and each certificate for any
such securities issued to subsequent transferees of any such certificate shall
(unless otherwise permitted by the provisions hereof) be stamped or otherwise
imprinted with a legend in substantially the following form:

       

      “NEITHER
THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE
STATE SECURITIES LAW AND NEITHER MAY BE SOLD OR OTHERWISE TRANSFERRED UNTIL
(I) A REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT AND SUCH APPLICABLE
STATE SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE WITH REGARD THERETO, OR
(II) THE COMPANY SHALL HAVE RECEIVED A WRITTEN OPINION OF COUNSEL
ACCEPTABLE TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER SUCH SECURITIES
ACT AND SUCH APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED IN CONNECTION WITH
SUCH PROPOSED TRANSFER.”

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      Section
5.

       

      Miscellaneous. 

       

      (a)           The
terms of this Warrant shall be binding upon and shall inure to the benefit of
any successors or permitted assigns of Holder.

       

      (b)           Except
as otherwise provided herein, this Warrant and all rights hereunder are
transferable by the registered holder hereof in person or by duly authorized
attorney on the books of the Company upon surrender of this Warrant, properly
endorsed, to the Company.  The Company may deem and treat the registered
holder of this Warrant at any time as the absolute owner hereof for all purposes
and shall not be affected by any notice to the contrary.

       

      (c)           Notwithstanding
any provision herein to the contrary, Holder may not exercise, sell, transfer,
or otherwise assign this Warrant unless the Company is provided with an opinion
of counsel satisfactory in form and substance to the Company, to the effect that
such exercise, sale, transfer, or assignment would not violate the Securities
Act or applicable state securities laws.

       

      (d)           This
Warrant may be divided into separate warrants covering one share of Common Stock
or any whole multiple thereof, for the total number of shares of Common Stock
then subject to this Warrant at any time, or from time to time, upon the request
of the registered holder of this Warrant and the surrender of the same to the
Company for such purpose.  Such subdivided Warrants shall be issued
promptly by the Company following any such request and shall be of the same form
and tenor as this Warrant, except for any requested change in the name of the
registered holder stated herein.

       

                 (e)           Any
notices, consents, waivers, or other communications required or permitted to be
given under the terms of this Warrant must be in writing and will be deemed to
have been delivered (a) upon receipt, when delivered personally, (b) upon
receipt, when sent by facsimile, provided a
copy is mailed by U.S. certified mail, return receipt requested, (c) three (3)
days after being sent by U.S. certified mail, return receipt requested, or (d)
one (1) day after deposit with a nationally recognized overnight delivery
service, in each case properly addressed to the party to receive the
same.

       

      Notice to Holder shall be
provided  to the registered address of Holder appearing on the books
of the Company.  Each party shall provide five (5) days prior written
notice to the other party of any change in address, which change shall not be
effective until actual receipt thereof

       

      (f)           The
corporate laws of the State of Colorado shall govern all issues concerning the
relative rights of the Company and its stockholders.  All other
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be governed by the internal laws of the State of Colorado,
without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Colorado or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of
Colorado.   If any provision of this Warrant shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Warrant in that
jurisdiction or the validity or enforceability of any provision of this Warrant
in any other jurisdiction.

       

       

      [Signatures
on the following page]

       

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      SIGNATURE
PAGE

       

      TO

       

      WARRANT

       

       

      IN
WITNESS WHEREOF, In Veritas Medical Diagnostics, Inc. has caused this Warrant to
be executed and to be dated as of the date first above written.

       

       

      
        
          	 	      
                  In
      Veritas Medical Diagnostics, Inc.

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

        

      

       

       

       

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      ASSIGNMENT

       

      (To be
Executed by the Registered Holder to effect a Transfer of the foregoing
Warrant)

       

      FOR VALUE
RECEIVED, the undersigned hereby sells, and assigns and transfers unto
___________________________________________________________________________ the
foregoing Warrant and the rights represented thereto to purchase shares of
Common Stock of In Veritas Medical Diagnostics, Inc.in accordance with terms and
conditions thereof, and does hereby irrevocably constitute and appoint
________________ Attorney to transfer the said Warrant on the books of the
Company, with full power of substitution.

       

      Holder:

       

                                                                       

       

                                                                     
  

       

      Address

       

      Dated:
__________________, 20__

       

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      EXERCISE
OR CONVERSION NOTICE

       

       

      [To be
signed only upon exercise of Warrant]

       

      To:           In
Veritas Medical Diagnostics, Inc.

       

      CC:           Escrow
Agent

       

      The
undersigned Holder of the attached Warrant hereby irrevocably elects to exercise
the Warrant for, and to purchase thereunder, _____ shares of Common Stock of In
Veritas Medical Diagnostics, Inc. issuable upon exercise of said Warrant and
hereby surrenders said Warrant.

       

      The
undersigned herewith requests that the certificates for such shares be issued in
the name of, and delivered to the undersigned, whose address is
________________________________.

       

      

      If
electronic book entry transfer, complete the following:

       

      Account
Number:
                                                                             

       

      Transaction
Code
Number:                                                                           

       

      Dated:
___________________

       

      Holder:

       

      ____________________________________

       

      ____________________________________

       

      By:                                                               

        Name:

       Title:

       

      NOTICE

       

      The
signature above must correspond to the name as written upon the face of the
within Warrant in every particular, without alteration or enlargement or any
change whatsoever.

       

7

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