Document:

UNIT
      SUBSCRIPTION AGREEMENT

     

     

    THIS
      UNIT
      SUBSCRIPTION AGREEMENT ("Agreement")
      is
      entered into by and between Positron Corporation, a Texas corporation
      ("Issuer"),
      and
      the subscriber set forth on the attached signature page (the "Subscriber"),
      as of
      the date this Agreement is ascribed to such terms in the Memorandum (defined
      below) unless otherwise defined herein.

     

    R E C I T A L S:

     

    WHEREAS,
      Issuer has informed Subscriber that it is allowing qualified investors to
      subscribe for units consisting of one share of its Series G Preferred Stock
      and
      a warrant exercisable for 50 shares of Issuer's Common Stock at a price of
      $5.50 per unit (the "Units"),
      pursuant to the terms of a Confidential Private Offering Memorandum (the
      "Memorandum");
      

     

    WHEREAS,
      Subscriber desires to purchase the Units on the terms and conditions set forth
      herein;

     

    WHEREAS,
      Subscriber's purchase of the Units is subject to Issuer's acceptance of such
      purchase, to be evidenced by countersigning the attached signature
      page.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements, the Issuer
      and Subscriber hereby agree as follows:

     

    A G R E E M E N T:
      

     

    1.    Subscription.
      Subject
      to the terms and conditions hereof, Subscriber hereby subscribes for __________
      Units (the "Subscription
      Amount").
      The
      full Subscription Amount shall be due upon Subscriber's submission to Issuer
      of
      this Agreement. Subscriber agrees to pay the Subscription Amount set forth
      above
      Subscriber's signature on this Agreement to the Issuer in accordance with the
      terms set forth in the Memorandum. Subscription for the Units is irrevocable
      and
      shall be made by delivery of this Agreement to the Issuer at the address noted
      in the Memorandum. All subscription documents will be returned to Subscriber
      if
      this Agreement is not accepted by the Issuer. Subscriber will have no rights
      with respect to the Units unless and until Subscriber's Agreement is accepted.
      Payment of the Subscription Amount shall be due upon acceptance of this
      Subscription. No personal checks will be accepted as payment of the Subscription
      Amount.

     

    2.    Acceptance
      of Agreement.
      Issuer
      shall have the right to reject this Agreement (a) if it believes that
      Subscriber is not an "Accredited Investor" as defined in Rule 501(a) of
      Regulation D promulgated under the Securities Act of 1933, as amended (the
      "Securities
      Act"),
      (b) if Subscriber is not a resident of a state in which the Issuer has
      determined that it will offer Units, (c) if Subscriber otherwise fails to
      meet the suitability standards for investment in the Units established by the
      Issuer, or (d) for any other reason in its sole and absolute discretion.
      Acceptance is evidenced only by execution and delivery by the Issuer of a
      countersigned copy of this Subscription Agreement. The closing of the purchase
      and sale of Units shall take effect upon Issuer's acceptance of this Agreement
      and receipt of payment for the Units (the "Closing").
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.    Promptly
      after the Closing, Issuer will deliver to Subscriber, pursuant to Subscriber's
      delivery instructions, certificates and warrant agreements representing the
      Units purchased by Subscriber from Issuer.

     

    4.    Restriction
      on Transfer of Securities.

     

    4.1.    Restrictions.
      Subscriber is aware that the Units have not been registered under the Securities
      Act by reason of their issuance in a transaction exempt from the registration
      and prospectus delivery requirements of the Securities Act pursuant to
      Section 4(2), Regulation D, and/or Regulation S thereof and that they
      must be held by Subscriber indefinitely, and Subscriber must therefore bear
      the
      economic risk of such investment indefinitely unless a subsequent disposition
      thereof is registered under the Securities Act or is exempt from registration.
      

     

    4.2.    Legend.
      Except
      in the case of Units sold to Non-U.S. persons (see Section 6 below), each
      certificate and warrant agreement issued connection with the sale of Units
      will
      be endorsed with the following legend: 

     

    "THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933 (THE "ACT") AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED,
      PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE
      OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER,
      SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE
      ACT."

     

    4.3.    Stop
      Transfer Order.
      A stop
      transfer order shall be placed with the Issuer's transfer agent preventing
      transfer of any of the Units pending compliance with the conditions set forth
      in
      any such legend.

     

    5.    Representations
      and Warranties by Issuer.
      Issuer
      represents and warrants to Subscriber that:

     

    
      
        
        

      

      
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    5.1.    Organization,
      Standing, Power.
      Issuer
      is a corporation duly organized, validly existing and in good standing under
      the
      laws of the State of Texas and has the requisite corporate power and authority
      to own its properties and to carry on its business in all material respects
      as
      it is now being conducted. Issuer has, or at the Closing will have, the
      requisite corporate power and authority to issue the Units, and to otherwise
      perform its obligations under this Agreement. 

     

    5.2.    Units.
      The
      Units and securities issuable upon conversion or exercise thereof, when issued
      and paid for pursuant to the terms of this Agreement, will be duly authorized,
      validly issued and outstanding, fully paid, nonassessable and free and clear
      of
      all pledges, liens, encumbrances and restrictions. 

     

    6.    Representations
      and Warranties of Subscriber.
      Subscriber represents and warrants that:

     

    7.    Investment
      Intent.
      The
      Units being acquired hereunder are being purchased for Subscriber's own account
      and not with the view to, or for resale in connection with, any distribution
      or
      public offering thereof within the meaning of the Securities Act. Subscriber
      understands that the Units have not been registered under the Securities Act
      or
      any applicable state laws by reason of their issuance or contemplated issuance
      in a transaction exempt from the registration and prospectus delivery
      requirements of the Securities Act and such laws and that the reliance of Issuer
      and others upon this exemption is predicated in part upon this representation
      and warranty. 

     

    7.1.    Accredited
      Investor.
      The
      place in which Subscriber's principal office or residence is located is set
      forth in Subscriber's address noted in this Agreement. Subscriber qualifies
      as
      an "accredited investor" within the meaning of Rule 501 under the Securities
      Act. Subscriber has such knowledge and experience in financial and business
      matters that Subscriber is capable of evaluating the merits and risks of the
      investment to be made hereunder by Subscriber. Issuer believes it has received
      all the information it has requested from Issuer it considers necessary or
      appropriate for deciding whether to obtain the Units and has had the opportunity
      to discuss Issuer's business, management, and financial affairs with Issuer's
      management.

     

    7.2.    Acts
      and Proceedings.
      This
      Agreement has been duly authorized by all necessary action on the part of
      Subscriber, has been duly executed and delivered by Subscriber, and is a valid
      and binding agreement upon the part of Subscriber.

     

    8.    Representations
      and Warranties for Subscribers who are Non-U.S. persons.
      Subscribers who are Non-U.S. persons hereby represent and warrant to Issuer
      as
      follows:

     

    (a)    This
      Agreement is made by Issuer with such Subscriber who is a Non-U.S. person in
      reliance upon such Subscriber's representations, warranties and covenants made
      in this Section 6.

     

    (b)    Subscriber
      has been advised and acknowledges that:

     

    (i)    the
      Units
      and securities issuable upon conversion or exercise thereof have not been,
      and
      when issued, will not be registered under the Securities Act, the securities
      laws of any state of the United States or the securities laws of any other
      country;

     

    (ii)    in
      issuing and selling the Units and securities issuable upon conversion or
      exercise thereof to Subscriber pursuant hereto, Issuer is relying upon the
      "safe
      harbor" provided by Regulation S and/or on Section 4(2) under the Securities
      Act;

     

    (iii)    it
      is a
      condition to the availability of the Regulation S "safe harbor" that the Units
      and securities issuable upon conversion or exercise thereof not be offered
      or
      sold in the United States or to a U.S. person until the expiration of a period
      of one year following the date of issuance to Subscriber; and

     

    (iv)    notwithstanding
      the foregoing, prior to the expiration of one year after issuance to Subscriber
      (the "Restricted
      Period"),
      the
      Units and securities issuable

     

    
      
        
        

      

      
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    (v)    upon
      conversion or exercise thereof may be offered and sold by the holder thereof
      only if such offer and sale is made in compliance with the terms of this
      Agreement and either: (a) if the offer or sale is within the United States
      or to
      or for the account of a U.S. person, the securities are offered and sold
      pursuant to an effective registration statement or pursuant to Rule 144 under
      the Securities Act or pursuant to an exemption from the registration
      requirements of the Securities Act; or (b) the offer and sale is outside the
      United States and to other than a U.S. person.

     

    (c)    As
      used
      herein, the term "United States" means and includes the United States of
      America, its territories and possessions, any State of the United States, and
      the District of Columbia, and the term "U.S. person" (as defined in Regulation
      S) means:

     

    (i)    a
      natural
      person resident in the United States;

     

    (ii)    any
      partnership or corporation organized or incorporated under the laws of the
      United States;

     

    (iii)    any
      estate of which any executor or administrator is a U.S. person; 

     

    (iv)    any
      trust
      of which any trustee is a U.S. person;

     

    (v)    any
      agency or branch of a foreign entity located in the United States; 

     

    (vi)    any
      nondiscretionary account or similar account (other than an estate or trust)
      held
      by a dealer or other fiduciary for the benefit or account of a U.S.
      person;

     

    (vii)    any
      discretionary account or similar account (other than an estate or trust) held
      by
      a dealer or other fiduciary organized, incorporated and (if an individual)
      resident in the United States; and

     

    (d)    a
      corporation or partnership organized under the laws of any foreign jurisdiction
      and formed by a U.S. person principally for the purpose of investing in
      securities not registered under the Securities Act, unless it is organized
      or
      incorporated, and owned, by accredited investors (as defined in Rule 501(a)
      under the Securities Act) who are not natural persons, estates or
      trusts.

     

    As
      used
      herein, the term "Non-U.S. person" means any person who is not a U.S. person
      or
      is deemed not to be a U.S. person under Rule 902(k)(2) of the Securities
      Act.

     

    (e)    Subscriber
      agrees that with respect to the Units and securities issuable upon conversion
      or
      exercise thereof, and until the expiration of the Restricted
      Period:

     

    (i)    Subscriber,
      its agents or its representatives have not and will not solicit offers to buy,
      offer for sale or sell any of the Units and securities issuable
      upon

     

    
      
        
        

      

      
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    (ii)    conversion
      or exercise thereof , or any beneficial interest therein in the United States
      or
      to or for the account of a U.S. person during the Restricted
      Period;

     

    (iii)    Notwithstanding
      the foregoing, prior to the expiration of the Restricted Period, the Units
      and
      securities issuable upon conversion or exercise thereof, may be offered and
      sold
      by the holder thereof only if such offer and sale is made in compliance with
      the
      terms of this Agreement and either: (a) if the offer or sale is within the
      United States or to or for the account of a U.S. person (as such terms are
      defined in Regulation S), the securities are offered and sold pursuant to an
      effective registration statement or pursuant to Rule 144 under the Securities
      Act or pursuant to an exemption from the registration requirements of the
      Securities Act; or (b) the offer and sale is outside the United States and
      to
      other than a U.S. person; and 

     

    (iv)    Subscriber
      shall not engage in hedging transactions with regard to the Units and securities
      issuable upon conversion or exercise thereof unless in compliance with the
      Securities Act.

     

    (v)    The
      foregoing restrictions are binding upon subsequent transferees of the Units
      and
      securities issuable upon conversion or exercise thereof, except for transferees
      pursuant to an effective registration statement. Subscriber agrees that after
      the Restricted Period, the Units and securities issuable upon conversion or
      exercise thereof may be offered or sold within the United States or to or for
      the account of a U.S. person only pursuant to applicable securities
      laws.

     

    (f)    Subscriber
      has not engaged, nor is it aware that any party has engaged, and Subscriber
      will
      not engage or cause any third party to engage, in any directed selling efforts
      (as such term is defined in Regulation S) in the United States with respect
      to
      the Units and securities issuable upon conversion or exercise
      thereof.

     

    (g)    Subscriber:
      (i) is domiciled and has its principal place of business outside the United
      States; (ii) certifies it is not an Subscriber and is not acquiring the Units
      and securities issuable upon conversion or exercise thereof for the account
      or
      benefit of any U.S. person; and (iii) at the time of the Closing, the Subscriber
      or persons acting on Subscriber's behalf in connection therewith will be located
      outside the United States.

     

    (h)    At
      the
      time of offering to the Subscriber and communication of Subscriber's order
      to
      purchase the Units and securities issuable upon conversion or exercise thereof
      and at the time of the Subscriber's execution of this Agreement, the Subscriber
      or persons acting on Subscriber's behalf in connection therewith were located
      outside the United States.

     

    (i)    Subscriber
      is not a "distributor" (as defined in Regulation S) or a "dealer" (as defined
      in
      the Securities Act).

     

    (j)    Subscriber
      acknowledges that that Issuer shall refuse to instruct its transfer agent to
      register any transfer of any Units and securities issuable upon conversion
      or

     

    
      
        
        

      

      
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    (k)    exercise
      thereof not made in accordance with the provisions of Regulation S, pursuant
      to
      registration under the Securities Act or pursuant to an available exemption
      from
      registration.

     

    (l)    Subscriber
      is satisfied as to the full observance of the laws of its jurisdiction in
      connection with any invitation to purchase the Units and securities issuable
      upon conversion or exercise thereof or any use of the Agreements, including
      (i)
      the legal requirements within its jurisdiction for the purchase of such Units
      and securities issuable upon conversion or exercise thereof, (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 such Units and securities issuable upon
      conversion or exercise thereof. The Subscriber's payment for, and the
      Subscriber's continued beneficial ownership of, Units and securities issuable
      upon conversion or exercise thereof will not violate any applicable laws of
      such
      Subscriber's jurisdiction.

     

    (m)    The
      Subscriber understands and agrees that each certificate held by Subscriber
      representing Units and securities issuable upon conversion or exercise thereof,
      or any other securities issued in respect of Units and securities issuable
      upon
      conversion or exercise thereof upon any stock split, stock dividend,
      recapitalization, merger, consolidation or similar event, shall bear the
      following legend (in addition to any legend required under applicable state
      securities laws):

     

    "THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE SOLD, 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."

     

    9.    Registration.
      

     

    9.1.    Piggy-Back
      Registration.
      If at
      any time Issuer shall determine to register under the Securities Act, any shares
      of its capital stock pursuant to a registration statement (other than a
      registration relating solely to the sale of securities to participants in a
      company employee benefits plan), Issuer will (i) promptly give written notice
      to
      Subscriber of its intention to file such registration statement and (ii) at
      Issuer's expense (which shall include, without limitation, all registration
      and
      filing fees, printing expenses, fees and disbursements of counsel and
      independent accountants for Issuer, and fees and expenses incident to compliance
      with state securities law, but shall not include fees and disbursements of
      counsel for Subscriber) include among the securities covered by the registration
      statement such portions of the Units and the securities issuable upon conversion
      on exercise thereof (the "Registrable
      Securities")
      then
      held by Subscriber as shall be specified in a written request to Issuer within
      thirty (30) days after the date on which Issuer gave the notice described in
      (i)
      above. Upon receipt of such written request (any

     

    
      
        
        

      

      
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    9.2.    shareholder
      requesting registration being individually called a "Selling
      Shareholder"),
      Issuer shall (i) use its reasonable best efforts to effect the registration,
      qualification or compliance of the Registrable Securities under the Securities
      Act and under any other applicable federal law and any applicable securities
      or
      blue sky laws of jurisdictions within the United States; (ii) furnish each
      Selling Shareholder such number of copies of the prospectus contained in the
      registration statement filed under the Securities Act (including preliminary
      prospectus) in conformity with the requirements of the Securities Act, and
      such
      other documents as the Selling Shareholder may reasonably request in order
      to
      facilitate the disposition of the Registrable Securities covered by the
      registration statement; and (iii) notify each Selling Shareholders, at any
      time
      when a prospectus relating to the Registrable Securities covered by such
      registration statement is required to be delivered under the Securities Act,
      of
      the happening of any event as a result of which the prospectus forming a part
      of
      such registration statement, as then in effect, includes an untrue statement
      of
      a material fact or omits to state any material fact required to be stated
      therein or necessary to make the statements therein not misleading, and (iv)
      at
      the request of the Selling Shareholders prepare and furnish to the Selling
      Shareholders any reasonable number of copies of any supplement to or amendment
      of such prospectus as may be necessary so that, as thereafter delivered to
      Subscribers of the Registrable Securities, such prospectus shall not include
      an
      untrue statement of a material fact or omit to state a material fact required
      to
      be stated therein or necessary to make the statements therein not
      misleading.

     

    9.3.    Registration
      of Underwritten Offering.
      If the
      offering of securities to be registered by Issuer is underwritten, each Selling
      shareholder shall sell the Registrable Securities to or through the
      underwriter(s) of the securities being registered for the account of Issuer
      or
      others upon the same terms applicable to Issuer or others, and if the managing
      underwriter(s) reasonably determine that all or any portion of the shares of
      Registrable Securities held by the Selling Shareholders should not be included
      in the registration statement, then notwithstanding anything to the contrary
      in
      this Section, the determination of such underwriter(s) shall be conclusive;
      provided, however, that if such underwriter(s) determine that some but not
      all
      of the Registrable Securities of the Selling Shareholders shall be included
      in
      the registration statement, the number of shares of Registrable Securities
      owned
      by each Selling Shareholder to be included in the registration statement will
      be
      proportionately reduced in accordance with the respective written requests
      given
      as provided above. 

     

    9.4.    Indemnification.
      In the
      event that Registrable Securities required pursuant to this Agreement are
      included in a registration statement under this Section 7, Issuer will
      indemnify and hold harmless each Selling Shareholder and each other person,
      if
      any, who controls such Selling shareholder within the meaning of the Securities
      Act, against any losses, claims, damages or liabilities, joint or several,
      to
      which such Selling Shareholder or controlling person may become subject under
      the Securities Act or otherwise, insofar as such losses, claims, damages or
      liabilities (or actions in respect thereof) arise out of are based upon any
      untrue statement or alleged untrue statement of any material fact contained,
      on
      the effective date thereof, in any registration statement pursuant to which
      the
      Registrable Securities were registered under the Securities Act, any preliminary
      prospectus or final prospectus contained therein, or any amendment or supplement
      thereto, or arise out of or are based upon the omission or alleged omission
      to
      state therein a material fact required to be stated therein or necessary to
      make
      the statements therein not misleading, or arise out of or are based upon the
      failure by Issuer to file

     

    
      
        
        

      

      
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    9.5.    any
      amendment or supplement thereto that was required to be filed under the
      Securities Act, and will reimburse such Selling Shareholder and each such
      controlling person for any legal or any other expenses reasonably incurred
      by
      them in connection with investigating or defending any such loss, claim, damage,
      liability or action. Notwithstanding the foregoing, Issuer will not be liable
      in
      any such case to the extent that any such loss, claim, damage, or liability
      arises out of or is based upon an untrue statement or omission made in such
      registration statement, preliminary prospectus, final prospectus or amendment
      or
      supplement in reliance upon and in conformity with written information furnished
      to Issuer through an instrument duly executed by or on behalf of any Selling
      Shareholder specifically for use in the preparation of such registration
      statement, preliminary prospectus, final prospectus, or amendment or
      supplement.

     

    It
      shall
      be a condition precedent to the obligation of Issuer to take any action pursuant
      to this Section that Issuer shall have received an undertaking satisfactory
      to
      it from each Selling Shareholder to indemnify and hold harmless Issuer (in
      the
      same manner and to the same extent as set forth in this Section), each director
      of Issuer, each officer who shall sign such registration statement, and any
      persons who control Issuer within the meaning of the Securities Act, with
      respect to any statement or omission from such registration statement,
      preliminary prospectus, or any final prospectus contained therein, or any
      amendment or supplement thereto, if such statement or omission was made in
      reliance upon and in conformity with written information furnished to Issuer
      through an instrument duly executed by the indemnifying party specifically
      for
      use in the preparation of such registration statement, preliminary prospectus,
      final prospectus, or amendment or supplement.

     

    Promptly
      following receipt by an indemnified party of notice of the commencement of
      any
      action involving a claim referred to above in this Section 7.3, such indemnified
      party will, if a claim in respect thereof is to be made against an indemnifying
      party, give written notice to the latter of the commencement of such action.
      In
      case any such action is brought against an indemnified party, the indemnifying
      party will be entitled to participate in and to assume the defense thereof,
      jointly with any other indemnifying party similarly notified, to the extent
      that
      it may wish, with counsel reasonably satisfactory to such indemnified party,
      and
      after notice from the indemnifying party to such indemnified party of its
      election to assume the defense thereof, the indemnifying party will not be
      liable to such indemnified party for any legal or other expenses subsequently
      incurred by the latter in connection with the defense thereof. 

     

    10.  Miscellaneous.

     

    
      
        
        

      

      
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    11.    Remedies
      Cumulative, and not Waived.
      (a) No
      right, power or remedy conferred upon any party shall be exclusive, and each
      such right, power or remedy shall be cumulative and in addition to every other
      right, power or remedy, whether conferred hereby or by any such security or
      now
      or hereafter available at law or in equity or by statute or otherwise. (b)
      No
      course of dealing between the parties or the holder of any Units purchased
      pursuant to this Agreement, and no delay in exercising any right, power or
      remedy conferred hereby or by any such security or now or hereafter existing
      at
      law or in equity or by statute or otherwise, shall operate as a waiver of or
      otherwise prejudice any such right, power or remedy; provided, however, that
      this Section 8.1 shall not be construed or applied so as to negate the
      provisions and intent of any statute which is otherwise applicable.

     

    11.1.    Changes.
      Waivers. etc.
      Neither
      this Agreement nor any provision hereof may be changed, waived, discharged
      or
      terminated orally, but only by a statement in writing signed by the party
      against which enforcement of the change, waiver, discharge or termination is
      sought. 

     

    11.2.    Notices.
      All
      communications hereunder shall be in writing and if sent to the Subscriber,
      shall be sufficient in all respects if personally delivered, sent by registered
      mail, or by telecopy and confirmed to the Subscriber at the address set forth
      on
      the Signature Page, or if sent to Issuer, shall be personally delivered, sent
      by
      registered mail, or by telecopy and confirmed to Issuer as follows:

     

    
      	
              Positron
                Corporation

            	 	 
	
              1304
                Langham Creek Drive, Suite
                310

            	 	 
	
              Houston,
                Texas 77084

            	 	 
	
              Telephone:
                (281) 492-7100

            	 	 
	
              Facsimile:
                (281) 492-2961

            	 	 

    

     

    11.3.    Survival
      of Representations and Warranties, etc.
      All
      representations and warranties contained herein shall survive the execution
      and
      delivery of this Agreement, any investigation at any time made by Subscriber
      or
      on its behalf, and the sale and purchase of the Units. All statements contained
      in any certificate, instrument or other writing delivered by or on behalf of
      Issuer pursuant hereto or in connection with or contemplation of the
      transactions herein contemplated (other than legal opinions) shall constitute
      representations and warranties by Issuer hereunder and not by the individual
      officer who signed the certificate, instrument or writing by or on behalf of
      Issuer.

     

    11.4.    Parties
      in Interest.
      All the
      terms and provisions of this Agreement shall be binding upon and inure to the
      benefit of and be enforceable by the respective successors and assigns of the
      parties hereto, whether so expressed or not, and, in particular, shall inure
      to
      the benefit of and be enforceable by the current holder or holders of any of
      the
      Units. 

     

    11.5.    Headings.
      The
      headings of the Sections and paragraphs of this Agreement have been inserted
      for
      convenience of reference only and do not constitute a part of this
      Agreement.

     

    
      
        
        

      

      
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    11.6.    Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of California, without regard to principles of conflicts of
      law.

     

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

     

    11.8.    Entire
      Agreement.
      This
      Assignment contains and constitutes the entire agreement between the parties
      hereto with respect to the subject matter hereof, and supersedes all prior
      understandings, if any, with respect thereto. 

     

    11.9.   
Severability.
      In the
      event that any part of this Agreement is determined by a court of competent
      jurisdiction to be unenforceable, the balance of the Agreement shall remain
      in
      full force and effect.

     

    11.10.    Acceptance.
      Execution of this Agreement and tender of the payment for the Units above shall
      constitute an irrevocable offer which the Issuer may accept or reject;
      acceptance by the Issuer shall be evidenced by the Issuer's execution and
      delivery to such Subscriber of the Issuer's Acceptance on the signature of
      this
      Agreement. 

     

    

     

    

     

    [Remainder
      of page intentionally left blank]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    PLEASE
      SPECIFY THE TYPE
      OF OWNERSHIP FOR THE UNITS - CHECK ONE* 

     

    
      	
              _______

            	 	
              Individual
                Ownership

            	
              _______

            	 	
              Partnership

            	
              _______

            	 	
              Joint
                Tenants with Right of Survivorship (both parties must
                sign)

            
	
              _______

            	 	
              Corporation

            	
              _______

            	 	
              Trust
                or Pension Plan

            	
              _______

            	 	
              Community
                Property (Spouse's signature required)

            
	
              _______

            	 	
              Tenants-in-common
                (both parties must sign)

            	
              _______

            	 	
              Individual
                Retirement Account

            	
              _______

            	
               

            	
              Limited
                Liability Company

            

    

    

       

      ____________________

       

      * Where
        the
        purchase is being made by an entity, a copy of Articles of Incorporation,
        Bylaws
        and Corporate Resolution, Partnership Agreement, Trust Agreement or LLC
        Agreement, as applicable, must be attached.

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    I
      have
      executed this Unit Subscription Agreement on ____________________, 2005, after
      receiving and carefully reading and reviewing the Memorandum and appendices
      thereto.

     

    Subscription
      Amount $_______________

     

     

    
      	
              FOR
                INDIVIDUAL SUBSCRIBERS

            
	 	 	 
	 	 	 
	
              Signature
                of Subscriber

            	 	
              Signature
                of Subscriber's Spouse (if applicable)

            
	 	 	 
	 	 	 
	
              Printed
                Name of Subscriber

            	 	
              Printed
                Name of Subscriber's Spouse

            
	 	 	 
	 	 	 
	
              Subscriber's
                Social Security No.

            	 	
              Social
                Security No. of Subscriber's Spouse

            
	 	 	 
	 	 	 
	
              Principal
                Residence Address (not P.O. Box)

            	 	
              Mailing
                Address (if different)

            
	 	 	 
	 	 	 
	
              City                             
                State                             
                Zip

            	 	
              City                             
                State                             
                Zip

            

    

     

     

    

    
      	
              FOR
                CORPORATE, PARTNERSHIP, TRUST OR LIMITED LIABILITY COMPANY
                SUBSCRIBERS

            
	 	 	 
	
            	 	
            
	
              Print
                Name of Subscriber

            	 	
              Taxpayer
                ID of Subscriber

            
	 	 	 
	
            	 	
            
	
              Signature
                of Person Authorized to Sign for Subscriber

            	 	
              Principal
                Office Address

            
	 	 	 
	
            	 	
            
	
              Printed
                Name and Position of Person Authorized to Sign

            	 	
              City                             
                State                             
                Zip

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    ISSUER
      ACCEPTANCE

     

    Positron
      Corporation, a Texas corporation, hereby accepts the foregoing Unit Subscription
      Agreement as of ________________, 2005.

     

    
      	 	 
	 	 	
              POSITRON CORPORATION,

              a Texas corporation

            
	 	 	 	 
	 	 	 By:	
              
 
	 	 	 	
              Name:

              
                

              

              Title:

              
                

              

            

    

     

     

    
      13THE
      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 SHARES OF COMMON STOCK

    OF
      POSITRON CORPORATION

     

    This
      Warrant Expires April 11, 2008

    

    

    
      	
              Warrant
                No. 06-____

            	
              __________
                Shares

            
	 	 

    

    

     

    THIS
      CERTIFIES that, subject to the terms and conditions herein set forth in this
      Warrant, _____________________________________________, ("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 14 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 ten cents ($0.10). 

     

    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.

     

    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.

     

    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

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    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 50,000 shares (as
      appropriately adjusted for stock splits, combinations, recapitalizations and
      the
      like), by the surrender of this Warrant at the principal office of the Company,
      together with the attached Notice of Exercise Form 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.    Redemption
      Right.
      Should
      the Company's Common Stock trade at $0.20 or greater per share (as appropriately
      adjusted for stock splits, stock dividends, combinations, recapitalizations
      and
      the like) for 20 consecutive trading days, on the basis of closing prices of
      the
      Common Stock quoted on The Nasdaq Stock Market and reported in the Wall
      Street Journal,
      or so
      long as the Common Stock is traded on the over-the-counter market, as reported
      by such system, the Company may, at its sole option, redeem the Warrant and
      repurchase it from the Holder for a purchase price of $0.001 per Share (as
      appropriately adjusted for stock splits, stock dividends, combinations,
      recapitalizations and the like); provided that the Company shall give the Holder
      30 days' prior written notice, and the Holder shall have the right to exercise
      the Warrant during such notice period. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    8.    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. 

     

    9.    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. 

     

    10.    Registration
      Rights.
      The
      Shares issuable upon exercise of this Warrant are the subject of registration
      rights set forth in that certain Unit Subscription Agreement between the Company
      and Holder.

     

    11.    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.
      

     

    12.    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. 

     

    13.    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

        
          

        

      

      
        
        

      

    

     

    14.    Exercise
      Period.
      The
      Exercise Period shall mean the period commencing on the date hereof and ending
      on April 11, 2008. 

     

    ISSUED
      this 11th
      day of
      April, 2006. 

    
      	 	 	 
	 	POSITRON
              CORPORATION
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Patrick
              G. Rooney, Chairman of the Board
	 	
            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    NOTICE
      OF EXERCISE

     

    To:
      POSITRON CORPORATION.

     

    (1) The
      undersigned hereby elects to purchase ______________ shares of Common Stock
      of
      POSITRON CORPORATION pursuant to the terms of the attached Warrant, and tenders
      herewith payment of the purchase price in full, together with all applicable
      transfer taxes, if any.

     

    (2) Please
      issue a certificate representing said shares of Common Stock in the name of
      the
      undersigned or in such other name as is specified below:

     

    _______________________________

    (Name)

     

    _______________________________

    (Address)

     

    (3) The
      undersigned represents that the aforesaid shares of Common Stock are being
      acquired for the account of the undersigned for investment and not with a view
      to, or for resale in connection with, the distribution thereof and that the
      undersigned has no present intention of distributing or reselling such
      shares.

    

    
      	
              __________________________________

            	
              __________________________________

            
	
              (Date)

            	
              (Signature)

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