LOAN AGREEMENT
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THIS AGREEMENT is made as of the 29th day of June, 2001 by and between
POSITRON CORPORATION ("Borrower"), a Texas corporation with its principal place
of business at 0000 Xxxxxxx Xxxxx Xxxxx, Xxxxxxx, Xxxxx 00000 and IMATRON INC.
("Lender"), a New Jersey corporation with its principal place of business at 000
Xxxxxx Xxxxx Xxxx., Xx. Xxx Xxxxxxxxx, XX 00000.
R E C I T A L S:
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WHEREAS, Borrower previously has borrowed certain funds from Lender and has
repaid such funds pursuant to the terms of the applicable loan agreement; and
WHEREAS, Borrower has requested Lender to make certain further loans to
Borrower for working capital and certain other needs as provided herein and
Lender is agreeable to make such loans upon the terms and conditions hereof;
NOW THEREFORE, in consideration of these premises and the mutual covenants
and agreements herein contained and other valuable consideration, the receipt
and adequacy of which the parties hereto acknowledge, the parties have agreed as
follows:
1. Definitions.
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As used in this Loan Agreement, the following terms shall have the
following meanings unless the context requires otherwise:
Borrower's Obligations means all present and future obligations of Borrower
to Lender hereunder, under the Note, or any other document executed in
connection herewith.
Default means any event set forth in Section 6.1 hereof.
Lender's Obligations means all present and future obligations of Lender to
Borrower hereunder, or any other document executed in connection herewith.
Loan Agreement means this Loan Agreement and all attachments, exhibits,
schedules hereto, all as may be amended from time to time.
Loan Rate means 10% or, if lower than 10%, the highest rate permissible by
law.
Payment Dates means the first day of each calendar month.
2. LOANS.
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2.1 Lender agrees, on terms and conditions of this Loan Agreement, to make
loans (hereinafter called individually a "Loan" and, collectively "The Loans"),
to Borrower in an aggregate principal amount at any one time outstanding up to
but not exceeding Two Million Dollars ($2,000,000). Within such limit, and
subject to the various conditions set forth herein, Borrower may borrow, repay,
re-borrow at any time or from time to time from the date hereof up to and
including the earlier of June 30, 2002 and the termination of the commitment of
Lender, as provided at Section 6.2 below. The obligation of Lender to make Loans
up to but not exceeding such aggregate amount at any one time outstanding herein
is hereinafter called its "Commitment."
2.2 The foregoing notwithstanding, the following shall be conditions
precedent each time Borrower seeks to draw down any portion of the Commitment:
(a) Within five (5) business days of the effective date of this Loan Agreement,
Borrower shall provide to lender a budget and estimated schedule of expenses
("Budget") reflecting projected expenses and projected revenue (including Loan
proceeds); (b) Lender shall review the Budget and either approve or revise it in
its sole judgment; (c) Borrower shall provide to Lender at least three(3)
calendar days' written notice (effective upon receipt) specifying the amount and
date and anticipated use of each requested borrowing under Section 2.1; and (d)
each requested borrowing must be consistent with the Budget and further shall be
specifically approved by Lender.
2.3 Repayments. The foregoing further notwithstanding, Borrower shall repay
interest on a monthly basis by the 15th of the month following the month in
which it accrues, and shall further repay such portions of the principal amounts
outstanding as of the following dates: fifty percent (50%) of all principal
amounts outstanding as of December 31, 2001 shall be repaid within five (5)
business days of December 31, 2001; seventy-five (75%) of all principal amounts
outstanding as of March 31, 2002 shall be repaid within five (5) business days
of March 31, 2002; and 100% of all principal amounts plus all interest
outstanding as of June 30, 2002 shall be repaid no later than June 30, 2002.
2.4 Borrower's obligations to pay the principal of and interest on the
Loans shall be evidenced by its grid promissory note in the form of Exhibit A
hereto (the "Note") payable to the order of Lender. The Note shall reflect the
amount of the Commitment, with actual Loans, repayments and balances noted by
Lender on the grid attached to the Note and made a part thereof. The Note shall
bear interest on the unpaid principal amount thereof until such principal amount
shall be paid in full at a per annum rate equal to the Loan Rate (based on a
year of 365 or actual number of days elapsed). The Loan Rate shall apply to the
average outstanding principal balance on the Note during any month which shall
be the summation of the daily balances during such month divided by the number
of days in the particular month. Unless accelerated in accordance with the
provisions of this Loan Agreement, the interest on the Note for any calendar
month shall be paid within fifteen (15) days of each consecutive Payment Date
immediately following such calendar month until full payment of the Loan (and
related interest), with the first Payment Date being the first day of the month
immediately following execution of this Agreement. All principal and interest on
the Note shall be due and payable in full on June 30, 2002. If any Payment Date
(or other date for payment hereunder) falls on a day which is not a business
day, such Payment Date (or other date of payment) shall be the next succeeding
business day.
2.5 Mandatory Repayment. The foregoing notwithstanding, beginning on and
after any date, from the date of this Loan Agreement to the termination of
Lender's Commitment, that Borrower receives third party financing, whether
equity or debt ("Financing"), in an amount in excess of Five Million U.S.
Dollars ($5,000,000) in the aggregate ("Financing Threshold"), Borrower shall
repay, twenty-five percent (25%) of each dollar received above the Financing
Threshold from such Financing, toward any and all amounts of principal and
interest outstanding under this Loan Agreement until such amounts have been
fully repaid and further, Lender's Commitment shall terminate and not be
renewed. Solely by way of example, in the event Borrower shall receive Financing
in an aggregate amount of $4,000,000 at any time during the first nine (9)
months of this Agreement, and six (6) months thereafter Borrower receives
additional Financing in an amount $1,500,000, Borrower shall repay to Lender,
promptly following receipt of the $1,500,000, the sum of $125,000 representing
twenty-five percent (25%) of all Financing received above the Financing
Threshold, which amount shall be applied to all interest accrued on the Loans
and unpaid to that date plus, to the extent that accrued unpaid interest
constitutes less than $125,000, that amount of principal outstanding
representing the difference between the amount of accrued unpaid interest and
$125,000. Thereafter, twenty-five percent (25%) of every dollar of additional
Financing provided to Borrower shall be paid over to Lender, and no more Loans
shall be authorized, until the full amount of any and all unpaid principal and
interest on the Loans shall have been paid.
2.6 All payments to Lender shall be paid by Borrower to Lender at Lender's
address as follows: Imatron Inc., 000 Xxxxxx Xxxxx Xxxx., Xx. Xxx Xxxxxxxxx, XX
00000, Attn. President. All amounts paid shall be applied first, to the payment
of all interest accrued and payable with respect to the Note; and second, to the
payment of outstanding principal of the Loan; and third, following Default, to
the payment of all expenses and charges, including reasonable attorneys' fees,
included by Lender for the protection of its rights or the pursuance of its
remedies.
2.7 The Loans or any part thereof may be prepaid at any time without
penalty.
2.8 The interest and other charges charged with respect to the Loans shall
not exceed the highest rate permissible under any law which a court of competent
jurisdiction or an arbitrator or panel of arbitrators shall, in a final
determination, deem applicable to the Loans. As of the date of execution of this
Loan Agreement, the parties hereto, in good faith, agree that the total interest
and other charges payable by Borrower to Lender under the terms of this Loan
Agreement do not exceed the maximum legal interest rate applicable to the Loans.
If it is determined that Lender has received interest and other consideration
with respect to the Loans in excess of the highest rate applicable to the Loans,
Lender shall promptly refund not more than such excess amount to Borrower and
the provisions hereof shall be deemed amended to provide for such permissible
rate.
3. CONDITIONS OF LENDING.
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The obligations of Lender to make a Loan is subject to the fulfillment of
the following conditions:
3.1 The following documents shall have been duly authorized, executed and
delivered by the Borrower to the Lender, and shall be in form and substance
satisfactory to the Lender and its counsel and shall be in full force and effect
on the date of the Loan.
Prior to the first Loan:
(a) an executed Loan Agreement, and all executed documents, certificates
and instruments contemplated by this Loan Agreement, including but not
limited to the Security Agreement;
b) a certified copy of the resolution of the Board of Directors of
Borrower, certified by the Secretary or a responsible officer thereof,
duly authorizing execution, delivery and performance of this Loan
Agreement and the Note contemplated hereby;
(c) a certificate of recent date from the Secretary of State of the state
of incorporation of Borrower as to its good standing;
(d) an incumbency certificate of Borrower dated as of the date of funding,
as to (i) the person or persons authorized to execute and deliver this
Loan Agreement, the Note, the Security Agreement, and any other
documents to be executed on behalf of them in connection with the
transactions contemplated hereby and (ii) the signature of each person
or persons;
(e) the executed Note;
(f) documentary evidence satisfactory to Lender that any and all liens or
other security interests on any of Borrower's tangible or intangible
property, including but not limited to accounts, computer hardware and
software, copyrights, equipment, inventory, licenses, patents, trade
secrets, trademarks, general intangibles, chattel paper or other
property, and all proceeds thereof, shall have been released or
otherwise subordinated to Lender's security interests contemplated
herein; and
(g) an expense plan and budget, including an acceptable cash control
system for managing expenditures within the plan and budget, ("Expense
Plan"), attached hereto as Schedule 3.1(g).
For each Loan (including the first):
(h) an officer's certificate in the form of Exhibit B which shall include
the written request from Borrower setting forth the requested amount
of the Loan and the proposed date of borrowing;
(i) for each Loan after the first Loan, documentary evidence satisfactory
to Lender, including but not limited to Exhibit B, that Borrower is
adhering strictly to the Expense Plan; and
(j) such other documents and evidence with respect to Borrower as Lender
may reasonably request.
3.2 On the date of each borrowing pursuant to Section 2.1 above, (i) no
Default or event that with the giving of notice or lapse of time or both would
constitute a Default hereunder has occurred and is continuing or would result
from the performance of this Loan Agreement, (ii) no material adverse change
shall have occurred since the date of this Loan Agreement in the financial
condition or operations of the Borrower, and (iii) there shall be no juridical
proceeding or regulatory action instituted by or against the Borrower, or, to
the best of Borrower's knowledge, any threatened proceeding or action which may
materially adversely affect the business, property, operation, or financial
condition of the Borrower. By acceptance of a Loan, Borrower represents as of
such Loan date, that each of the foregoing items is true.
3.3 Borrower shall have entered issued to Imatron a Warrant to Purchase
Common Stock, materially in the form of Exhibit D, covering the purchase of up
to six million (6,000,000) shares of Borrower's common stock at an exercise
price of $ 0.30 for the period beginning on the date of issuance of the Warrant
and ending June 30, 2006.
3.4 Borrower and Imatron shall have entered into a Registration Rights
Agreement materially in the form of Exhibit E, pursuant to which Borrower agrees
to register the common shares underlying the Warrant pursuant to certain terms
and conditions.
4. REPRESENTATIONS AND WARRANTIES.
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4.1 Borrower is a corporation duly organized and validly existing in good
standing under the laws of the state of Texas.
4.2 Borrower has full corporate power to own its properties, to carry on
its business as now being conducted and has full corporate power to execute,
deliver and perform all of its obligations under this Loan Agreement and the
Note.
4.3 The execution, delivery and performance by Borrower of this Loan
Agreement, the Note, the Security Agreement and all related documents
contemplated by this transaction have been duly authorized by all necessary
corporate action of Borrower and do not violate any provision of law, statute,
rule or regulation, applicable to Borrower, or any judgment, franchise, permit,
order, decree, ruling, writ or injunction of any court or administrative body,
applicable to Borrower, or of Borrower's certificate of incorporation, by-laws
or the terms of any of its securities or result in the breach of, or constitute
a Default under, or require any consent under, any indenture, bank loan, credit
agreement or other agreement or instrument to which Borrower is a party or by
which Borrower or any of its property may be bound or affected.
4.4 No filings, recordations, notifications, registrations, notarizations,
authentications or other formalities or property, stamp or similar taxes or
duties and no approvals, licenses, orders, authorizations, consents or
undertakings of any governmental bodies or regulatory, supervisory authorities
are necessary in connection with the execution, delivery and performance by
Borrower of this Loan Agreement or the Note, or for the payment to Lender of all
sums hereunder or under the Note or for the legality, validity, binding effect
or enforceability hereof or thereof.
4.5 Except as disclosed and described in Schedule 4.5 hereto, Borrower has
good and marketable title to, or a valid leasehold interest in, the tangible
personal property or other properties and assets used by it, located on its
premises, or shown on the most recent balance sheet, free and clear of all liens
or other security interests.
4.6 This Loan Agreement and the Note, have been duly executed and delivered
by Borrower and are legal, valid and binding obligations of Borrower,
enforceable in accordance with their respective terms, subject to (i) the effect
of any applicable bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors' rights generally, (ii) the
availability of the remedies of specific performance or injunctive relief as
subject to the discretion of the court before which a proceeding for such
remedies may be brought, and (iii) the exercise by any court before which any
proceeding may be brought of equitable judicial discretion.
4.7 Borrower has delivered to Lender its unaudited balance sheet of the
Borrower and the related statements of income, retained earnings and cash flow
of Borrower (collectively "Financial Statements") for the three month period
ending March 31, 2001, and further has updated the Financial Statements through
May 31, 2001 so that the financial status of Borrower as of that date is fairly
represented. Such balance sheet and statement fairly present the financial
condition of the Borrower as of such date(s) and the results of the operations
of the Borrower for the period ended on such date(s), and such statements
through March 31, 2001 have been prepared in accordance with generally accepted
accounting principles consistently applied, and contain any disclosure that
would normally be required by financial statements prepared in accordance with
generally accepted accounting principles. Since the end of the period reflected
in such financial statements there has been no material adverse change in such
condition or operations.
4.8 Except as disclosed and described on Schedule 4.8, Borrower has filed
all applicable tax returns required to be filed by it, and has paid or made
provisions for the payment of all taxes which have become due pursuant to said
returns or pursuant to any assessment received by Borrower except such taxes, if
any, as are being contested in good faith and as to which adequate reserves have
been provided in accordance with generally accepted accounting principles, and
warrants that such returns properly reflect the United States, state and local
income and tax liability of the Borrower for the period covered thereby.
4.9 Except as disclosed and fully described on Schedule 4.9, there is no
action, suit or proceeding pending or, to the knowledge of the Borrower
threatened, against the Borrower or any of its property before any court,
governmental department, administrative agency or instrumentality which, if such
action, suit or proceeding were adversely determined, would materially affect
the financial condition or the results of operations of the Borrower or its
business or the ability of the Borrower to perform its obligations hereunder.
4.10 Except as disclosed and described on Schedule
4.10 hereto, Borrower is not in default on or has otherwise delayed or
postponed payment of any accounts payable or other liabilities in excess of
$25,000 outside the ordinary course of business.
4.11 Each Loan shall be fully applied by Borrower solely for its working
capital needs or for the purchase of equipment or leasehold improvements,
consistent with Schedule 3.1(g) and the cash control system, and for no other
purpose.
4.12 No broker or finder acting on behalf of Borrower brought about the
obtaining, making or closing of this Loan Agreement and Borrower has no
obligation to pay any finder's or brokerage fees in connection with the
transactions contemplated herein.
4.13 As of the date of execution of this Loan Agreement, the aggregate
interest and other charges payable by Borrower to Lender under the terms of this
Loan Agreement do not exceed the maximum legal interest rate applicable to the
Loans.
5. COVENANTS.
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Borrower hereby covenants and agrees that until satisfaction of all its
obligations, it shall:
5.1 Preserve and maintain its corporate existence and all of its rights,
privileges and franchises, and continue the conduct of its present business in
an orderly, efficient and regular manner; comply in all material respects with
all applicable laws, rules, regulations and orders of any governmental
authority, non-compliance with which would materially affect the ability of
Borrower to perform its obligations.
5.2 Make payments or commitments for payments only in strict compliance
with the Budget, the Expense Plan and the cash control system, or otherwise as
authorized by Lender.
5.3 Furnish Lender promptly with any financial information or statements,
and other current information regarding or relating to Borrower, as reasonably
requested by Lender, other than information relating to Borrower's proprietary
know-how and technology information.
5.4 Timely file any and all tax returns and tax filings required under any
governmental statute or regulation and timely pay and discharge, when due, all
tax obligations, and material obligations to third parties, except those
obligations being contested in good faith, and for which Borrower shall have
maintained, in accordance with generally accepted accounting principles,
adequate reserves for the payment of the same.
5.5 Notify Lender immediately upon receipt of notice of any lien,
attachment, administrative or judicial proceeding, pending or threatened claim,
dispute, litigation or governmental proceedings, material to the financial
condition or operations of Borrower, which for this purpose shall be any amount
in excess of $ 10,000; provide immediate written notice to Lender of any Default
or event which with the lapse of time or giving of notice or both would
constitute a Default.
5.6 Promptly and duly execute and deliver to Lender such further documents,
instruments and assurances and take such further action as Lender may from time
to time reasonably request in order to carry out the intent and purpose of this
Loan Agreement and to establish and protect the rights and remedies created or
intended to be created in favor of Lender hereunder.
5.7 Reimburse Borrower for its costs and reasonable attorneys' fees
incurred in enforcing its rights pursuant to the provisions of this Agreement.
6. DEFAULTS AND REMEDIES.
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6.1 Any of the following shall constitute a default by Borrower hereunder
("Default"): (a) failure by Borrower to pay any amounts hereunder or under any
Note when due and such remains unremedied for a period of fifteen (15) days from
the due date; or (b) failure of Borrower to comply with any provisions or
perform any of its obligations arising under this Loan Agreement (other than
those referred to in clause (a) above), or if, but only if, such failure to
comply is remediable, it remains unremedied by Borrower for a period of ten (10)
days from notice to Borrower; or (c) any representations or warranties made or
given by Borrower in connection with this Loan Agreement were false or
misleading when made, in any material way; or (d) subjection of any of the
assets in an amount in excess of $10,000.00 of Borrower to attachment, levy,
execution, forfeiture or cancellation or other administrative or judicial
process which is not or cannot be removed with reasonable diligence within sixty
(60) days from the subjection thereof, or (e) commencement of any insolvency,
bankruptcy or similar proceedings, by or against Borrower, including any
assignment by Borrower for the benefit of creditors, and in the case of any
involuntary proceedings, such is not dismissed within ninety (90) days of
institution; or the inability of Borrower to pay its debts as they become due;
or (f) the liquidation or dissolution of Borrower or the commencement of any
acts relative thereto, or without the prior written consent of Lender, any sale
or other disposition of all or substantially all of the assets of Borrower, or
any merger or consolidation of Borrower, or the cessation of business by
Borrower; or (g) a default by Borrower under any agreement for borrowed money or
under any lease, except with regard to the lease of premises located at 00000
Xxxx Xxx Xxxxx, Xxxxxxx, Xxxxx 00000, whereby the holder of the obligation has
accelerated it prior to its stated maturity and such accelerated amount exceeds
$100,000.00, except as otherwise disclosed on Schedule 4.10; or (h) there shall
be a money judgment, in excess of $25,000.00 entered against Borrower which is
not fully covered by insurance or remains unvacated, unbonded, unstayed or
undischarged for more than sixty (60) days.
6.2 Upon any default, Lender, upon written notice to Borrower, may exercise
any one or more of the following remedies (which remedies shall be cumulative to
the extent permitted by law): (a) terminate any further obligation of Lender
hereunder (including any obligation to make further loans); (b) declare the
remaining unpaid principal balances of the Note, plus all accrued but unpaid
interest thereon, plus all other amounts due from Borrower hereunder,
immediately due and payable in full without notice or demand, whereupon such
shall become due and payable; or (c) exercise any other right or remedy which
may be available to it under applicable law. Upon a default any proceeds
received from Borrower shall be applied by Lender to the obligations, in the
order of application as Lender shall elect.
7. NOTICES; CHANGES.
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Notices, requests or other communications required hereunder to be sent
to either party shall be in writing and shall be by: (a) United States first
class mail, postage prepaid, and addressed to the other party at the address set
forth above (or to such other address as such party shall have designated by
proper notice), effective five days after deposit; (b) by personal or overnight
delivery, effective upon receipt.
8. GOVERNING LAW.
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This Loan Agreement shall be governed and construed in accordance with the
laws of the State of California without giving effect to the principles of
conflict of laws thereof.
9. DISPUTE RESOLUTION.
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9.1 Any controversy or claim between or among the parties arising out of or
relating to this Loan Agreement or any related agreements or instruments
("Subject Documents"), including any claim based on or arising from an alleged
tort, shall be submitted to and determined by arbitration before one (1)
arbitrator who shall be an attorney admitted to practice law in the state of
California, in accordance with Title 9 of the U.S. Code and the Commercial
Arbitration Rules of the American Arbitration Association ("AAA") then in
effect, and shall be held in the county of San Francisco, CA. All statutes of
limitations which would otherwise be applicable shall apply to any arbitration
proceeding under this subparagraph 9.1. Judgment upon the award rendered may be
entered in any court having jurisdiction. This subparagraph 9.1 shall apply only
if, at the time of the proposed submission to AAA, none of the obligations to
Lender described in or covered by any of the Subject Documents are secured by
real property collateral or, if so secured, all parties consent to such
submission.
9.2 If the controversy or claim is not submitted to arbitration as provided
and limited in Section 9.1, but becomes the subject of a judicial action, any
party may elect to have all decisions of fact and law determined by a referee in
accordance with applicable state law. If such an election is made, the parties
shall designate to the court a referee or referees selected under the auspices
of the AAA in the same manner as arbitrators are selected in AAA-sponsored
proceedings. The referee, or presiding referee of the panel, shall be an active
attorney or retired judge. Judgment upon the award rendered shall be entered in
the court in which such proceeding was commenced.
9.3 Except as provided herein, no provision of, or the exercise of any
rights under, Section 9.1, shall limit the right of any party to exercise self
help remedies such as setoff, or to obtain provisional or ancillary remedies
such as injunctive relief or the appointment of a receiver from a court having
jurisdiction before, during or after the pendency of any arbitration. The
institution and maintenance of an action for judicial relief or pursuit of
provisional or ancillary remedies or exercise of self help remedies shall not
constitute a waiver of the right of any party, including the plaintiff, to
submit the controversy or claim to arbitrators.
9.4 The parties understand and agree the arbitration will be their
exclusive form of resolving disputes between them regarding the issues covered
by this Agreement. BOTH PARTIES EXPRESSLY WAIVE THEIR ENTITLEMENT, IF ANY, TO
HAVE CONTROVERSIES BETWEEN THEM DECIDED BY A JURY OR COURT OF LAW.
10. MISCELLANEOUS.
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This Loan Agreement or any part hereof, may not be assigned by Borrower
without the written consent of Lender and shall be binding upon and inure to the
benefit of the parties hereto, their legal representatives, permitted successors
and assigns. This Loan Agreement and/or the note or any part thereof may be
assigned by Lender without the consent of Borrower. No amendment hereunder shall
be effective unless in writing signed by the parties hereto and no waiver
hereunder shall be effective unless in writing, signed by the party to be
charged. No failure to exercise, no delay in exercising, and no single or
partial exercise on the part of Lender of any right, remedy, or power hereunder,
shall operate as a waiver thereof or preclude Lender from exercising any other
right, remedy or power hereunder. Any provision of this Loan Agreement or the
Note which is unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability, without
invalidating the remaining provisions hereof or of the note. The
representations, warranties, obligations and indemnities of Borrower herein
shall survive the termination of this Loan Agreement to the extent required for
their full observance and performance. The obligation of each comaker (if any)
of this Loan Agreement or the Note shall be primary, joint and several and each
such comaker hereby irrevocably consents to any extension of time of payments
and/or the execution of any refinancing or restructuring agreements relative to
this Loan Agreement or the Note. In the event Borrower fails to meet any
obligation of it hereunder, Lender may at its option satisfy such obligation and
Borrower shall reimburse Lender on demand therefor. The captions in this Loan
Agreement are for convenience only and shall not define or limit any of the
terms hereof. This Loan Agreement may be executed in counterparts and all said
counterparts taken together shall be deemed to constitute one and the same
instrument.
THIS LOAN IS SECURED BY THE TERMS OF THAT CERTAIN SECURITY AGREEMENT OF
EVEN DATE BY AND BETWEEN BORROWER AND LENDER HEREUNDER, ATTACHED HERETO AS
EXHIBIT C.
IN WITNESS WHEREOF, the parties hereto have duly executed this Loan
Agreement as of the date first above written. Borrower acknowledges that this
Loan Agreement shall not be effective until accepted by Lender at its address
above.
LENDER: BORROWER:
IMATRON INC. POSITRON CORPORATION
By: _____________________________ By: _____________________________
Its: _____________________________ Its: ______________________________
Attest: Attest:
By: ______________________________ By: ______________________________
Its: _____________________________ Its: ______________________________
Schedule 3.1(g)
Expense Plan
(Attach ProForma's for 2001 and 2002)
Schedule 4.5
Exceptions to Good Title to Assets
None
Schedule 4.5
Current Outstanding Loan agreements
None
Schedule 4.8
Overdue tax returns and provisions for taxes
None
Schedule 4.9
Pending or threatened actions
Currently Pending
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ProFutures Bridge Capital Fund, L.P. v. Positron Corporation, Xxxx Xx. 00XX0000,
Xxxxxxxx Xxxxx, Xxxx and County of Denver, Colorado. Complaint for Declaratory
and Other Relief
Schedule 4.10
Defaults or delays in payments in excess of $25,000 (a/o 6/29/01)
Payable to Amount Due
----------- ----------
Xxxxx Xxxxxxx Xxxx Xxxxx & Xxxxxxx LLP $ 34,267.92
Future Electronics $ 127,778.00
GE Access $ 123,104.59
LFJ Associates $ 29,018.11
Photonis $ 126,700.00
Polymer Corporation $ 182,217.26
Primary Sourcing $ 45,511.74
Saint-Gobain $ 327,085.44
Sigma Electronics $ 34,048.46
Special Products (Invoice 00032969) $ 29,186.96
Tristar $ 95,574.00
TOTAL AP OUTSTANDING (including above) $1,554,890.46
EXHIBIT A
PROMISSORY NOTE
EXHIBIT B
OFFICER'S CERTIFICATE
EXHIBIT C
SECURITY AGREEMENT
EXHIBIT D
STOCK PURCHASE WARRANT
EXHIBIT E
REGISTRATION RIGHTS AGREEMENT
