Document:

EXHIBIT
10.3

 

AMENDMENT
TO WARRANT

 

POSITRON
CORPORATION

 

 

Section
12 of Positron Corporation Common Stock Purchase Warrant
No. 99-__dated
August 18, 1999 (the "Warrant") to ____________________(the "Holder") to
purchase 1,000,000 shares of the Company's common stock is hereby amended to
read as follows:

 

12.  Exercise
Period. The
Exercise Period shall mean the period commencing on the date hereof and ending
on the later of (i) August 31, 2005, or (ii) the date on which a registration
statement filed with the Securities Exchange Commission permitting
a sale of the Shares shall have become effective and shall have remained
effective for a period of six months.

 

All other
terms and conditions of the Warrant remain unchanged.

 

ISSUED
this ___ day of May, 2005. 

	 	 	 
	 	
      POSITRON
      CORPORATION

	 
 	 
 	 
 
		By:  	/s/ 
	 	
      

      Gary H. Brooks, President
	 	

[Seal]EXHIBIT
10.4

 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY, TRANSFERRED, ASSIGNED,
PLEDGED OR HYPOTHECATED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S
PROMULGATED UNDER THE SECURITIES ACT, PURSUANT TO REGISTRATION UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM
REGISTRATION.

 

POSITRON
CORPORATION

COMMON
STOCK PURCHASE WARRANT

TO
PURCHASE 3,825,000 SHARES OF COMMON STOCK

OF
POSITRON CORPORATION

 

This
Warrant Expires May 21, 2009

	
      Warrant
      No. 05-005
	
      3,825,000
      Shares

	 	 

 

THIS
CERTIFIES that, subject to the terms and conditions herein set forth in this
Warrant, IMAGIN Diagnostic Centres, Inc., an Ontario, Canada corporation,
("IMAGIN" or the
"Holder") is
entitled to purchase from Positron Corporation, a Texas corporation
("Company"), at
any time or from time to time during
the Exercise Period (defined in Section 13 below) and subject to the provisions
regarding Exercise of Warrant (as set forth in Section 6 below) the number of
fully paid and non-assessable shares of common stock of the Company (the
"Shares") as
provided herein upon surrender of this Warrant at the principal office of the
Company, and, at the election of the Holder, upon payment of the purchase price
at said office in cash or by cashier's check or by the wire transfer of funds in
a dollar amount equal to the purchase price of the Shares for which the
consideration is being given. 

 

This
Warrant shall be exercisable for that number of Shares as set forth
above.

 

1.  Purchase
Price. Subject
to adjustment as hereinafter provided, the purchase price of one share of Common
Stock (or such securities as may be substituted for one share of Common Stock
pursuant to the provisions hereinafter set forth) (the "Warrant
Price") shall
be five cents ($0.02). 

 

2.  Adjustment
of Warrant Price and Number of Shares. The
number and kind of securities issuable upon the exercise of this Warrant shall
be subject to adjustment from time to time upon the happening of certain events
as follows: 

 

 

a.  Adjustment
for Dividends in Stock. If at
any time on or after the date hereof, the holders of the Common Stock of the
Company (or any shares of stock or other securities at the time receivable upon
the exercise of this Warrant) shall have received, or, on or after the record
date fixed for the determination of eligible stockholders, shall have become
entitled to receive, without payment therefor, other or additional stock of the
Company by way of dividend (other than as provided for in Section 2(b) below),
then and in each such case, upon the exercise of this Warrant, the Holder shall
be entitled to receive, in addition to the number of shares of Common Stock
receivable, and without payment of any additional consideration therefor, the
amount of such other or additional stock of the Company which the Holder would
receive on the date of such exercise had it been the holder of record of such
Common Stock on the date hereof and had thereafter, during the period from the
date hereof to and including the date of such exercise, retained such shares
and/or all other additional stock receivable by it as aforesaid during such
period and given effect to all adjustments called for during such period by this
Section 2. 

 

b.  Adjustment
for Changes in Common Stock. In the
event of changes in the outstanding Common Stock of the Company by reason of
stock splits, recapitalizations, reclassifications, mergers, consolidations,
combinations or exchanges of shares, separations, reorganizations, liquidations,
or the like, the number and class of shares available under the Warrant in the
aggregate and the Warrant Price shall be correspondingly adjusted by the Board
of Directors of the Company. The adjustment shall be such as will give the
Holder on exercise for the same aggregate Warrant Price the total number, class,
and kind of shares as the Holder would have owned had the Warrant been exercised
immediately prior to the event and had the Holder continued to hold such shares
until after the event requiring adjustment. Notwithstanding, no adjustment shall
be made to the number and class of shares available under the Warrant or the
Warrant Price as a result of any of the transactions effected pursuant to that
certain Note Purchase Agreement, Loan Agreement or Equipment Purchase Agreement
between the Company and IMAGIN, each dated as of May 21, 2004 or pursuant
to that certain Note Purchase Agreement between the Company and Solaris
Opportunity Fund, L.P. dated February 28, 2005.

 

The
foregoing provisions of subparagraph (b) notwithstanding, if at any time while
this Warrant, or any portion thereof, is outstanding and unexpired there shall
be (i) a reorganization (other than a combination, reclassification, exchange or
subdivision of shares otherwise provided herein), (ii) a merger or consolidation
of the Company with or into another entity in which the Company is not the
surviving entity, or a reverse triangular merger in which the Company is the
surviving entity but the shares of the Company's capital stock outstanding
immediately prior to the merger are converted by virtue of the merger into other
property, or (iii) a sale or transfer of all or substantially all the Company's
properties and assets to any other person and further, if as
part of such reorganization, merger, sale or transfer the Holder is entitled to
exercise the Warrant or any portion thereof and, upon payment of the Warrant
Price in effect at the time, is entitled to receive that number of shares of the
successor corporation resulting from such reorganization, merger, sale or
transfer deliverable upon exercise of the Warrant and thereupon exchangeable
into shares of the successor corporation, but
further, such
Holder shall fail or refuse to exercise the Warrant or any portion then
outstanding, then this Warrant or any outstanding portion thereof shall
terminate upon the lapse of ten (10) calendar days following such failure or
refusal to exercise the Warrant and/or any portions thereof remaining
outstanding and unexpired as of the effective date of the reorganization,
merger, sale or transfer.

 

-2-

 

3.  No
Fractional Shares. No
fractional shares of Common Stock will be issued in connection with any
subscription under this Warrant. In lieu of any fractional shares which would
otherwise be issuable, the Company shall pay cash equal to the product of such
fraction multiplied by the fair market value of one share of Common Stock on the
date of exercise as determined in good faith by the Company's Board of
Directors. 

 

4.  No
Stockholder Rights. This
Warrant shall not entitle its holder to any of the rights of a stockholder of
the Company prior to its exercise, including but not limited to the entitlement
to vote or receive dividends, to receive notice of meetings, or otherwise to be
deemed the holder of Common Stock or any other securities of the Company that
may at any time be issuable on exercise hereof for any purpose

 

5.  Reservation
of Stock. The
Company covenants that during the period this Warrant is exercisable, the
Company will reserve from its authorized and unissued Common Stock a sufficient
number of shares to provide for the issuance of Common Stock upon the exercise
of this Warrant. If at any relevant time the number of authorized but unissued
shares of Common Stock is insufficient to allow for full exercise of this
Warrant, the Company will use its reasonable efforts to forthwith take such
corporate action as may be necessary to increase its authorized but unissued
shares of Common Stock to such number of shares as shall be sufficient for such
purposes. The Company agrees that its issuance of this Warrant shall constitute
full authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for shares of
Common Stock upon the exercise of this Warrant.

 

6.  Exercise
of Warrant. Subject
to the terms and conditions hereof, this Warrant may be exercised by the holder
hereof then registered on the books of the Company at any time from the date of
issuance and before the expiration date (set forth above). Subject to the
foregoing, this Warrant may be exercised by the Holder or its registered
assigns, in whole or in part and in minimum units of 100,000 shares, by the
surrender of this Warrant at the principal office of the Company, together with
the attached form of subscription duly executed, accompanied by payment in full
of the amount of the Warrant Price in the form described in this Warrant. Upon
partial exercise of this Warrant, a new warrant or warrants containing the same
date and provisions as this Warrant shall be issued by the Company to the
registered holder for the number of shares of Common Stock with respect to which
this Warrant shall not have been exercised. A Warrant shall be deemed to have
been exercised immediately prior to the close of business on the date of its
surrender for exercise as provided above, and the person entitled to receive the
shares of Common Stock issuable upon such exercise shall be treated for all
purposes as the holder of such shares of record as of the close of business on
such date. As promptly as practicable on or after such date, the Company shall
issue and deliver to the person or persons entitled to receive the shares, a
certificate or certificates for the number of full shares of Common Stock
issuable upon such exercise, together with cash in lieu of any fraction of a
share as provided above

 

7.  Certificate
of Adjustment.
Whenever the Warrant Price is adjusted as provided in Section 2, the Company
shall promptly deliver to the record holder of this Warrant a certificate of an
officer of the Company setting forth the relevant Warrant Price or number of
shares after such adjustment and setting forth a brief statement of the facts
requiring such adjustment. 

 

-3-

 

8.  Compliance
With Securities Act. The
Holder, by acceptance of this Warrant, agrees that this Warrant and the Shares
(or shares of any security into which such Common Stock may be converted) are
being acquired for investment and that the Holder will not offer, sell, or
otherwise dispose of this Warrant or any Shares (or shares of any security into
which such Common Stock may be converted) except under circumstances which will
not result in a violation of the Securities Act of 1933, as amended (the
"Securities
Act"). Upon
exercise of this Warrant, the holder hereof shall, if requested by the Company,
confirm in writing its investment purpose and acceptance of the restrictions on
transfer of the Shares. 

 

9.  Registration
Rights. The
Shares issuable upon exercise of this Warrant are the subject of registration
rights under that certain Registration Rights Agreement between the Company and
IMAGIN, dated as of May 21, 2004.

 

10.  Subdivision
of Warrant. At the
request of the holder of this Warrant in connection with a transfer or exercise
of a portion of the Warrant and upon surrender of this Warrant for such purpose
to the Company, the Company at its expense (except for any transfer tax payable)
will issue in exchange therefor warrants of like tenor and date representing in
the aggregate the right to purchase such number of shares of such Common Stock
as shall be designated by such holder at the time of such surrender; provided,
however, that the Company's obligations to subdivide securities under this
Section shall be subject to and conditioned upon the compliance of any such
subdivision with applicable state securities laws and with the Securities Act.

 

11.  Loss,
Theft, Destruction, or Mutilation of Warrant. Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction, or mutilation of this Warrant, and in the case of loss,
theft, or destruction, of indemnity or security reasonably satisfactory to it
and reimbursement to the Company of all reasonable expenses incidental thereto,
in the case of mutilation, and upon surrender and cancellation of this Warrant
the Company will make and deliver a new Warrant of like tenor and dates as of
such cancellation, in lieu of this Warrant. 

 

12.  Miscellaneous. This
Warrant shall be governed by the laws of the State of Texas. The headings in
this Warrant are for purposes of convenience and reference only, and shall not
be deemed to constitute a part of this Warrant. Neither this Warrant nor any
term included may be changed, waived, discharged, or terminated orally but only
by an instrument in writing signed by the Company and the Holder. All notices
and other communications from the Company to the Holder shall be by telecopy or
expedited courier service to the address furnished to the Company in writing by
the last holder of this Warrant who shall have furnished an address to the
Company in writing.

-4-

 

13.  Exercise
Period. The
Exercise Period shall mean the period commencing on the date hereof and ending
on May 21, 2009. 

 

ISSUED
this 12th day of May, 2005. 

 

	 	 	 
	 	POSITRON
      CORPORATION
	 
 	 
 	 
 
	Date: 	By:  	/s/ 
	 	
      

      Gary H. Brooks, President
	 	Title 

 

-5-

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