Document:

Exhibit
4.1

THE
SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, OR APPLICABLE STATE SECURITIES LAW. 
THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE
OFFERED FOR SALE, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ASSIGNED OR OTHERWISE
DISPOSED OF, AND NO TRANSFER OF THE SECURITIES WILL BE MADE BY THE COMPANY OR
ITS TRANSFER AGENT, IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF
COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

PROUROCARE
MEDICAL
INC.

FORM
OF10% UNSECURED CONVERTIBLE SUBORDINATED DEBENTURE

	
   Principal: $

  	
  March 21, 2007

  
	
   Debenture
  Number—

  	
  Plymouth, Minnesota

  

 

For Value Received,
the undersigned, ProUroCare
Medical Inc., organized and validly existing under the
laws of the State of Nevada, whose mailing address is One Carlson Parkway,
Suite 124, Plymouth, Minnesota 55447, and its successors and assigns (the “Maker”), hereby unconditionally
promises to pay to the order of                                   ,
a resident of the State of                ,
having a mailing address of                                               
and his successors and assigns (the “Holder”),
at such place as may be designated from time to time by the Holder, the principal
sum of $                        
the original principal balance hereof, together with all accrued and unpaid
interest thereon in accordance with the terms of this 10% Unsecured Convertible
Subordinated Debenture (this “Debenture”).   This Debenture has been issued upon
surrender of the 10% Unsecured Convertible Subordinated Debenture (the “Original Debenture”) dated                                  
(the “Original Issuance Date”)
issued by Maker to Holder and reflects the agreement between Maker and Holder
to amend and restate certain terms of the Original Debenture.

The parties acknowledge that the Original Debenture
was issued as one in a series of Original Debentures in connection with a
$2,000,000 private placement of Original Debentures (subject to possible
increase in the sole discretion of the Maker without notice) conducted by the
Maker (the “Placement”).  The Original Debentures issued in the
Placement were issued pursuant to the Holders’ personal guarantees providing
credit enhancement to and support for up to a $6,000,000 senior credit facility
of Maker (the “Senior Credit Facility”).  The Debenture and all other Debentures issued
upon surrender of Original Debentures issued in the Placement have identical
terms and provisions (except for the specific sums at issue) and are due and
payable in full in thirty six (36) months from the Original Issuance Date of
the Original Debenture.  This Debenture
is being issued pursuant to and is subject to the

terms and provisions of a Subscription and Representation Agreement
between the Maker and Holder (the “Subscription Agreement”).
The provisions of the Holder’s Subscription Agreement are incorporated herein
by reference with the same force and effect as if fully set forth herein.

Acceptance of this Debenture by the Holder shall be deemed agreement by
the Holder of the terms included or incorporated in this Debenture.  All payments under this Debenture shall be
made in U.S. dollars and by check mailed by the Maker to the address of the
Holder set forth above.

1.  Interest Payment;
Maturity; Subordination.

(a)          Initial
Period.  From the Original Interest Date to May 31,
2006 (the “Initial
Period”), this Debenture
accrued interest on the outstanding principal balance at an annual rate of 10%
and interest was paid to Holder monthly on the first business day of each
calendar month.  Holder hereby
acknowledges receipt of full payment of all interest accrued during the Initial
Period.

(b)         From
June 1, 2006 to January 31, 2007 (the “Second Period”),
this Debenture accrued interest on the outstanding principal balance at an
annual rate of 10%.  Interest accrued on
the unpaid principal balance of the Debenture during the Second Period shall be
paid in Units of the Maker (each Unit comprised of one share of Maker’s common
stock, par value $0.00001 per share (the “Common Stock”)
and one-half warrant in the form attached hereto as Exhibit A; each full
warrant representing the right to purchase one share of Common Stock at an
exercise price of $0.50 per share at any time prior to January 31, 2010) valued
at a rate of $0.40 per Unit.

(c)          From
February 1, 2007 to the Maturity Date (the “Third Period”),
this Debenture shall accrue interest on the outstanding principal balance at an
annual rate of 10%.  Interest accrued on
the unpaid principal balance of the Debenture during the Third Period shall be
paid on the Maturity Date.  Interest
accrued on the unpaid principal balance of the Debenture during the Third
Period shall be paid, at the election of Maker, either in cash or in shares of
Common Stock valued at a rate of $0.50 per share of Common Stock.

(d)         Maturity
Date.  The entire principal amount of this Debenture
shall be due and payable in full at 5:00 p.m. in the Central Time Zone on February
16, 2009, unless otherwise previously converted into Maker’s common stock in
accordance herewith. (the “Maturity
Date”).

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(e)          Subordination
By Holder.  The
Holder, by acceptance of this Debenture, covenants and agrees that the payment
of principal and interest under this Debenture is hereby expressly subordinated
to any and all existing Maker Senior Debt (as defined below).  The Holder acknowledges and agrees
that all Debentures, loan agreements and other documents and instruments
related to Senior Debt (the “Senior Debt Documents”) may limit the actions that
may be taken by the Holder hereunder and, in such event, the Holder agrees to
take only such action and to such extent as may then be allowed by the Senior
Debt Documents.  “Senior Debt” shall mean all principal of (and premium of, if
any) and unpaid interest on all
indebtedness of the Maker created, incurred, assumed, or guaranteed by the
Maker, or for which the Maker is otherwise directly or indirectly liable, for
money borrowed: (i) from any banks, finance companies, trust companies, pension
trusts, insurance companies, or other financial institutions unless the
instrument under which such debt is created, incurred, assumed or guaranteed by
the Maker expressly provide that such debt is not senior or superior in right
of payment to this Debenture; and (ii) from any other third parties where any
of the instruments under which such other third party debt is created,
incurred, assumed or guaranteed by the Maker expressly provides that such debt
is senior or superior in right of payment to this Debenture.

Upon (i) the maturity of Senior Debt, including by
acceleration or otherwise, or (ii) any distribution of the assets of the Maker
upon dissolution, winding up, liquidation or reorganization of the Maker, the
holders of such Senior Debt are entitled to receive payment in full before the
Holder of this Debenture is entitled to receive any payment.  With the exception of the foregoing, this
Debenture shall rank equally with the Maker’s other unsecured debt (including,
without limitation, all other Debentures) to the extent such other unsecured
debt, by its express terms, is not superior in right of payment to this
Debenture with respect to receiving payments or other distributions.

2.               Compliance with Securities Laws and Other
Transfer Restrictions.

(a)          Investment
Intent.  The Holder of this Debenture, by acceptance
hereof, agrees, represents and warrants that this Debenture and any Units or
shares of Common Stock of Maker issued as interest on this Debenture
(collectively, the “Securities”) are being acquired for investment
purposes, that the Holder has no present intention to resell or otherwise
dispose of all or any part of the Securities.

(b)         Transfer.  In
the event the Holder of the Securities desires to transfer any of the
Securities, the Holder shall provide the Maker with a Form of Assignment, in
the form attached hereto describing the manner of such transfer, and an opinion
of counsel ( acceptable to the Maker and its

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counsel)
that the proposed transfer may be effected without registration or
qualification under applicable securities laws, whereupon such Holder shall be
entitled to transfer such Securities in accordance with the notice delivered by
such Holder to the Maker.  If, in the
opinion of the counsel referred to in this Subsection, the proposed transfer or
disposition described in the written notice given may not be effected without
registration or qualification of such Securities, the Maker shall give written
notice thereof to the Holder hereof, and such Holder will limit his/her activities
in respect to such proposed transfer or disposition as, in the opinion of such
counsel, are permitted by law. 

(c)          Restrictive
Legend.  The Maker shall place one or more restrictive
legends on the Securities, which legends set forth the restrictions contained
herein, and may further place a “stop transfer” restriction in the Maker’s
books and records with respect to the Securities.  The restrictions set forth in this Debenture
shall be binding upon any holder, donee, assignee or transferee of the Securities.

3.               No Rights as Shareholder.  This Debenture shall not
entitle the Holder to any right to vote or receive distributions or any other
rights as a shareholder or owner of the Maker, unless and until any portion of
this Debenture is converted into Common Stock, as permitted or required herein.

4.               Events of Default.  The
occurrence of any one or more of the following events (whether such occurrence
shall be voluntary or involuntary or occur or be effected by operation of law
or otherwise) shall constitute an event of default hereunder:

(a)          if
the Maker fails to pay when due any monthly interest payment due hereunder, or
any other amount payable to Holder under the terms of this Debenture, and such
failure to pay is not cured by Maker within 45 calendar days after written
notice thereof is delivered by Holder to Maker;

(b)         if the
Maker makes an assignment for the benefit of creditors;

(c)          if
any order, judgment, or decree is entered adjudicating the Maker bankrupt; or

(d)         if the
Maker petitions or applies to any tribunal for the appointment of a trustee or
receiver or commences any proceeding under any bankruptcy, reorganization,
insolvency, dissolution or liquidation law of any jurisdiction.

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5.               Unsecured Maker Debenture. 
Holder acknowledges and agrees that the indebtedness represented by this
Debenture is unsecured, and thus, is not secured by any assets or properties of
Maker, or subject to any credit enhancement or guaranty of any type.

6.  Conversion of Indebtedness
into Maker’s Common Stock;  “Piggy-Back”
and Demand Registration Rights for Common Stock Acquired Upon Conversion.  

(a)          Conversion
of Indebtedness into Maker’s Common Stock. While this indebtedness in favor of Holder remains outstanding, Holder
shall be entitled to convert, at Holders’ sole option, the entire principal
balance of this Debenture, or any part hereof, into Maker’s common stock at a
price of $.50 per share. However, if Maker’s existing Senior Debt Facility is
not repaid, and Holder’s guarantee not released by August 31, 2007 (or
subsequently, by October 31, 2007), then, in such instances, the conversion
ratio set forth above shall be immediately be modified and altered on such
dates, such that the principal balance of this Debenture, or any part hereof,
shall be convertible into Maker’s common stock at a price of $.40 per share,
and subsequently, $.30 per share, respectively. 
Holder shall provide Maker and its counsel with ten (10)  business days advance written notice of
Holder’s intent to convert all, or any part, of this Debenture in accordance
with this section.  In connection with
such conversion, Maker shall remit and pay to Holder all accrued and unpaid
interest due hereon.  All common stock of
Maker so acquired by Holder in accordance with such conversion shall be entitled
to “piggy back” and/or demand registration rights described below.

(b)         Piggy-back
Registration Rights.  If, at any time prior to payment in full of
this Debenture, or any conversion hereof, Maker proposes to claim an exemption
under Section 3(b) of the Securities Act of 1933, as amended (the “Act”), for a
public Placement of any of its securities, or seeks to register any of its
securities under the Act (except by registration statement on a form that does
not permit the inclusion of shares by its security holders), Maker will provide
written notice of its intentions to Holders. Upon written request of each such
Holder given within 10 business days after receipt of such notice, Maker shall
use its best efforts to cause all common shares acquired by the Holder’s
conversion of indebtedness to equity hereunder to be included in such proposed
notification or registration statement, subject to approval by Maker’s
then-existing broker-dealer or underwriter. 
The Holder’s written request shall specify the number of shares of Maker’s
common stock intended to be sold or disposed of by the 

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Holder,
and describe the nature of any proposed sale or other disposition thereof.  All notification or registration expenses
shall be borne by Maker.

(c)          Demand
Registration Rights.   If, at any time prior to payment in full of
this Debenture, or any conversion hereof, Holders of at least 60% or more of
the value of the Debentures issued in the Placement elect to convert their
Debentures into Maker’s common stock and demand registration of their shares
for resale, Maker shall use its reasonable efforts to register the shares and
to cause such registration to become effective within 90 calendar days of such
demand.

(d)         One
Registration.  Upon completing a registration of the Maker’s
common stock pursuant to paragraph (b) or (c) of this Section, the Maker shall
have no further obligation to register shares hereunder.  If a Holder does not elect to participate in
such registration, he shall have no future right to demand a registration of
his/her shares or participate in another registration through piggy-back
rights.

7.    Mandatory Conversion by
Maker.  Upon 20 day calendar notice by Maker upon
retirement and payment in full of Maker’s Senior Debt Facility with its senior
lender, Maker shall then henceforth, in its sole discretion, have the right and
ability to call the Debentures and either pay such Debentures in full or
require their immediate conversion into Maker’s common stock.

8.      Miscellaneous.

(a)
Wavier.  No waiver hereunder or
amendment of this Debenture shall be effective unless it is in writing and
signed by the Maker, Holder and all the 
Holders of the Debentures issued pursuant to this Placement.  The acceptance by the Holder of any payment
hereunder that is less than payment in full of all amounts due and payable at
the time of such payment shall not constitute a waiver of the right to exercise
any of the options hereunder at that time or at any subsequent time.

(b)
Right to Grant Extension.  Except
as provided in Section 1 of this Debenture, Maker hereby agrees that the Holder
has the right (but not the obligation) to grant any extension of time for
payment of any indebtedness evidenced by this Debenture.

(c)
Successors.  The terms and
provisions hereof shall inure to the benefit of, and be binding upon, the
respective successors and assigns of the Maker and Holder. This Debenture shall
be governed by and construed and enforced in 

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accordance
with the laws of the State of Minnesota without giving effect to such state’s
choice of law principles.

(d)
No Recourse.  No recourse for the
payment of the principal of or any interest on this Debenture, or for any claim
based hereon or otherwise in respect hereof, and no recourse under or upon any
obligation, covenant or agreement of the Maker in any Debenture, or because of
the creation of any indebtedness represented thereby, shall be against any
organizer, member, officer, director, shareholder, or manager as such, past,
present or future, of the Maker or of any successor entity either directly or
through the Maker or any successor entity, whether by virtue of any
constitution, statute or rule of law or by the enforcement of any assessment or
penalty or otherwise, all such liability being, by the acceptance hereof and as
part of the consideration for the issue hereof, expressly waived and released.

(e)          Replacement.  Upon
receipt by the Maker of evidence reasonably satisfactory to it and its counsel,
of the loss, theft, destruction or mutilation of this Debenture, and in case of
loss, theft or destruction, of indemnity or security reasonably satisfactory to
it, and upon reimbursement to the Maker of all legal and out of pocket expenses
incidental thereto, and upon surrender and cancellation of this Debenture, if
mutilated, the Maker will make and deliver a new Debenture of like tenor and
dated as of the initial Debenture, in lieu of this Debenture.

(f)            Integration. This Debenture embodies the entire agreement and understanding
between the parties relating to the subject matter hereof and supersedes all
prior oral or written agreements and understandings relating to such subject
matter.

(g)         Governing Law. This Debenture shall be construed and
interpreted pursuant to and in accordance with the laws of the State of
Minnesota.

(h)         Binding Effect. This Debenture shall be binding upon, and
inure to the benefit of, the parties hereto and their respective heirs,
executors, administrators, successors, and assigns.

(i)             Notices. All notices or other communications required or permitted hereunder
shall be in writing.  A written notice or
other communication shall be deemed to have been sufficiently given: (i) if
delivered by hand, when such notice is received from the notifying party; (ii)
if transmitted by facsimile or timely delivered to a reputable express courier,
on the next business day following the day so transmitted or delivered; or
(iii) if delivered by mail, on the fifth day

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following the date such notice or other communication is deposited in
the U.S. Mail for delivery by certified or registered mail addressed to the
other party, or when actually received, whichever occurs earlier.

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IN WITNESS WHEREOF, the
Maker has caused this Debenture to be executed by its authorized
representative, who certifies that he has all necessary authority on behalf of
the Maker to execute this Debenture and bind the Maker to the terms hereof.

	
  

  	
  PROUROCARE MEDICAL INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Richard C. Carlson

  
	
   

  	
   

  
	
   

  	
  Its: Chief Executive Officer

  

 

 9Exhibit 10.4

TERMINATION AND INTENT FOR
COOPERATION AGREEMENT

THIS TERMINATION AND INTENT FOR
COOPERATION AGREEMENT is entered into as of April 16, 2007 (“Effective Date”) by and between
ProUroCare Medical Inc., a Nevada corporation (“PUC”), Dr. Armen Sarvazyan
(“Sarvazyan”) and Artann Laboratories, Inc., a New Jersey corporation (“Artann”)
(with PUC, Sarvazyan and Artann each being referred to herein as a “Party” and
collectively as the “Parties”).

WHEREAS, the Parties entered into a Development
Agreement and a Research and Development Agreement dated July 13, 2004 (the “Prior
Agreements”) and have been in discussions regarding their cooperation under the
Prior Agreements;

WHEREAS, the Parties wish to terminate the Prior
Agreements and set forth in this Agreement their intentions relating to their
future cooperation.

NOW, THEREFORE, in consideration of the premises and
mutual agreements hereinafter set forth and of other consideration, the receipt
and sufficiency of which is hereby acknowledged, the Parties agree as follows:

1.             Termination of
Prior Agreement and Release.  Subject
to the terms and conditions set forth below, the Prior Agreements, together
with all undischarged obligations and liabilities under such agreements, are
hereby terminated effective as of the Effective Date.  PUC, Sarvazyan and Artann each, for
itself/himself and its/his successors, affiliates and related persons and
entities, expressly and irrevocably waives, and holds each other harmless from,
any claims, causes of action, obligations, or rights, whether arising in
contract, tort, statute, or otherwise, which it/he has, may have or claim to
have, whether known or unknown, arising from the Prior Agreements or any other
agreement, act, failure to act or transaction which occurred prior to the date
of this Agreement.

2.             Consideration.  Immediately upon execution of this Agreement
on April 16, 2007, as full and complete consideration for the provisions of
Section 1 above, PUC shall: (i) pay Artann the amount of $60,000.00 by
bank draft or wire transfer to an account at a bank specified by Artann, and
(ii) deliver to Artann a warrant for the purchase of 200,000 shares of
common stock of PUC at an exercise price of $0.41 per share substantially in
the form attached as Exhibit A.

3.             Intent for
Cooperation.  The parties are
currently in discussions to finalize a new Development Agreement for the joint
development of a next generation prostate mechanical imaging device with
enhanced functionalities (the “New Agreement”). 
The parties agree to use their best efforts to finalize the New
Agreement within four weeks of the Effective Date, including a development plan
with a timeline and milestones for their joint development activities.  On or before May 4, 2007, PUC will pay Artann
an additional $35,000 as the first payment for work already completed under the
proposed New Agreement.

4.             Further Acts.  Each of the Parties shall at the request of
the other Party, execute and deliver any further documents and do all acts and
things as that Party may reasonably require in order to carry out the true
intent and meaning of this Agreement.

5.             Parties of
Interest.  This Agreement is for the
benefit of and shall be binding upon the Parties, their permitted assigns and
successors.

6.             Notices.  Any notice required to be given under the
terms hereof shall be in writing and deemed given by any Party upon: (i)
personal delivery, (ii) confirmed delivery by a standard overnight

 1
 

courier or when delivered by hand, or (iii) when
mailed in the United States by certified or registered mail, postage prepaid,
addressed at the following addresses (or at such address for a Party as shall
be specified by notice given hereunder):

In the case of the PUC:

ProUroCare Medical Inc.

5500 Wayzata Boulevard, Suite 310

Golden Valley, Minnesota 55416

Attn: Mr. Richard Carlson

In the case of the Artann
or Sarvazyan:

Artann Laboratories Inc.

1753 Linvale-Harbourton Rd.

Lambertville New Jersey 08530-3302

Attn: Dr. Armen Sarvazyan

7.             Representations and Warranties of PUC.  PUC represents and warrants to Artann that:

(a)           it is a corporation duly incorporated, validly
existing and in good standing under the laws of the state of Nevada;

(b)           it has all requisite corporate power, authority and
right to enter into this Agreement and to complete the transaction contemplated
hereby and to perform its obligations hereunder;

(c)           this Agreement has been duly authorized, executed and
delivered by PUC and constitutes a legal, valid and binding agreement of PUC,
enforceable in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity
principles;

(d)           no notice to, or authorization, consent or approval of,
any person is necessary for the execution and delivery of this Agreement by PUC
or the consummation by PUC of the transactions contemplated hereby; and

(e)           the consummation of the transactions contemplated by
this Agreement will not result in the violation or default of any provision of
any instrument, judgment, order, writ, decree or contract to which PUC is a
party or by which PUC is bound or any provision of foreign, federal, state or
local statute, rule or regulation applicable to PUC.

8.             Representations and Warranties of Artann. 
Artann represents and warrants to PUC that:

(a)           it is a corporation duly incorporated and validly
existing under the laws of the State of New Jersey;

(b)           it has all requisite corporate power, authority and
right to enter into this Agreement and to complete the transaction contemplated
hereby and to perform its obligations hereunder;

 2
 

(c)           this Agreement has been duly authorized, executed and
delivered by Artann and constitutes a legal, valid and binding agreement of
Artann, enforceable in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and similar laws
of general applicability relating to or affecting creditors’ rights and to
general equity principles;

(d)           no notice to, or
authorization, consent or approval of, any person is necessary for the
execution and delivery of this Agreement by Artann or the consummation by
Artann of the transactions contemplated hereby; and

(e)           the consummation of the
transactions contemplated by this Agreement will not result in the violation or
default of any provision of any instrument, judgment, order, writ, decree or
contract to which Artann is a party or by which Artann is bound or any
provision of foreign, federal, state or local statute, rule or regulation
applicable to Artann.

9.             Representations
and Warranties of Sarvazyan.  Sarvazyan
represents and warrants to PUC that:

(a)           this Agreement has been
duly executed and delivered by him and constitutes a legal, valid and binding
agreement of Sarvazyan, enforceable in accordance with its terms,
subject to bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and similar laws of general applicability relating to or affecting
creditors’ rights and to general equity principles; and

(b)           no notice to, or
authorization, consent or approval of, any person is necessary for the
execution and delivery of this Agreement by Sarvazyan or the
consummation by Sarvazyan of the transactions contemplated hereby.

10.           Governing Law.  This Agreement shall be governed by the laws
of the State of New Jersey.

11.           Entire Agreement.  This Agreement, including the Exhibit,
constitutes the entire agreement between the Parties with respect to the
subject matter of this Agreement and supersedes all prior negotiations,
proposals and agreements, whether oral or written, with respect to the subject
matter of this Agreement.

12.           Third Party Rights.  This Agreement is intended solely for the
benefit of the Parties and is not intended to confer any benefits upon, or
create any rights in favor of, any person other that the Parties, except as
expressly provided to the contrary elsewhere in this Agreement.

13.           Waiver.  Failure by any Party to insist in any one or
more instances upon the strict performance of any one of the covenants
contained herein shall not be construed as a waiver or relinquishment of such
covenant.  No waiver by any Party of any
such covenant shall be deemed to have been made unless expressed in writing and
signed by the waiving Party.

14.           Severability.  The unlawfulness or invalidity or
unenforceability of any provision in this Agreement or of any covenant herein
contained on the part of any Party shall not affect the validity or
enforceability of any other provision or covenant hereof or herein contained
and the Parties hereby undertake to renegotiate in good faith, with a view to
concluding arrangements as nearly as possible the same as those herein
contained.

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15.           Amendments.  No term or provision hereof may be amended
except by an instrument in writing signed by all of the Parties to this
Agreement.

16.           Assignment.  No Party shall be entitled to assign its
rights under this Agreement to any person without the prior written consent of
the other Parties, such consent not to be unreasonably withheld.

17.           Expenses.  Except as the Parties may agree in writing,
the Parties shall each pay their own costs and expenses incurred in connection
with the consummation of the transactions contemplated by the Agreement, except
that PUC shall bear the fees and expenses of Morrison & Foerster LLP
associated with preparation of the New Agreement by reimbursing Artann for said
fees and expenses based on submission of an invoice.

18.           Counterparts.  This Agreement may be executed in several
counterparts, each of which when so executed shall be deemed to be an original
and shall have the same force and effect as an original but such counterparts
together shall constitute but one and the same instrument.

	
  PROUROCARE MEDICAL INC.

  	
   

  	
  ARTANN LABORATORIES INC. 

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Richard C. Carlson

  	
   

  	
  By: 

  	
  Armen Sarvazyan  

  
	
  Name: 

  	
  Richard C. Carlson

  	
   

  	
  Name: 

  	
  Armen Sarvazyan  

  
	
  Its: 

  	
  CEO

  	
   

  	
  Its: 

  	
  CSO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Armen Sarvazyan

  
	
   

  	
   

  	
  Dr. Armen Sarvazyan, for himself

  
								

 

Attachment:

Attachment A – Form of Warrant

 4
 

Attachment
A

Form of Warrant

THE WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF
THIS WARRANT (COLLECTIVELY, THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY
STATE SECURITIES OR BLUE SKY LAWS (“BLUE SKY LAWS”).  NO TRANSFER, SALE, ASSIGNMENT, PLEDGE,
HYPOTHECATION OR OTHER DISPOSITION OF THIS WARRANT OR THE SECURITIES OR ANY
INTEREST THEREIN MAY BE MADE EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE BLUE SKY LAWS OR (B) IF
THE COMPANY HAS BEEN FURNISHED WITH BOTH AN OPINION OF COUNSEL FOR THE HOLDER,
WHICH OPINION AND COUNSEL SHALL BE SATISFACTORY TO THE COMPANY, TO THE EFFECT
THAT NO REGISTRATION IS REQUIRED BECAUSE OF THE AVAILABILITY OF AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE BLUE SKY LAWS, AND
ASSURANCES THAT THE TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER
DISPOSITION WILL BE MADE ONLY IN COMPLIANCE WITH THE CONDITIONS OF ANY SUCH
REGISTRATION OR EXEMPTION.

FORM OF WARRANT

FOR

SHARES OF COMMON STOCK

OF

PROUROCARE MEDICAL INC.

	
  Warrant No.

  	
  Plymouth, Minnesota

  
	
   

  	
  , 200   

  

 

FOR VALUE RECEIVED,                                 , or its successors
or assigns (“Holder”), is entitled to subscribe for and purchase from
ProUroCare Medical Inc., a Nevada corporation (the “Company”), up to              
fully paid and non-assessable shares of the Company’s common stock, $.00001 par
value per share (the “Common Stock”), at the price of $0.41 per share,
subject to adjustments as noted in section 3 below (the “Warrant Exercise
Price”).

This warrant may be
exercised by Holder at any time or from time to time on or prior to the fifth
anniversary of the date hereof.

This warrant is subject
to the following provisions, terms and conditions:

1.             Exercise of
Warrant.  The rights represented by
this warrant may be exercised by the Holder, in whole or in part, by written
notice of exercise delivered to the Company at least three days prior to the
intended date of exercise and by the surrender of this warrant (properly
endorsed if required) at the principal office of the Company and upon payment

 5
 

to it by cash,
certified check or bank draft of the purchase price for such shares. The shares
so purchased shall be deemed to be issued as of the close of business on the
date on which this warrant has been exercised by its surrender and payment to
the Company of the Warrant Exercise Price. 
Certificates for the shares of stock so purchased, bearing the
restrictive legend set forth in Section 5 of this warrant, shall be delivered
to the Holder within 15 days after the rights represented by this warrant shall
have been so exercised, and, unless this warrant has expired, a new warrant
representing the number of shares, if any, with respect to which this warrant
has not been exercised shall also be delivered to the Holder within such
time.  No fractional shares shall be
issued upon the exercise of this warrant.

2.             Certain Covenants
of the Company.  The Company
covenants and agrees that all shares that may be issued upon the exercise of
the rights represented by this warrant shall, upon issuance, be duly authorized
and issued, fully paid and non-assessable shares.  The Company further covenants and agrees that
during the period within which the rights represented by this warrant may be
exercised, the Company will at all times have authorized, and reserved for the
purpose of issue or transfer upon exercise of the subscription rights evidenced
by this warrant, a sufficient number of shares of Common Stock to provide for
the exercise of the rights represented by this warrant.

3.             Adjustment of
Exercise Price and Number of Shares. 
The number of shares the Holder may purchase and the Warrant Exercise
Price shall be subject to adjustment from time to time as hereinafter provided
in this section 3.

(a)           Stock Dividend,
Stock Split or Stock Combination.  If
the Company at any time divides the outstanding shares of its Common Stock into
a greater number of shares (whether pursuant to a stock split, stock dividend
or otherwise), and conversely, if the outstanding shares of its Common Stock
are combined into a smaller number of shares, the Warrant Exercise Price in
effect immediately prior to such division or combination shall be
proportionately adjusted to reflect the reduction or increase in the value of
each such Common Stock.

(b)           Effect of
Reorganization, Reclassification or Merger. 
If any capital reorganization or reclassification of the capital stock
of the Company, or consolidation or merger of the Company with another
corporation, or the sale of all or substantially all of its assets to another
corporation shall be effected in such a way that holders of the Common Stock
shall be entitled to receive stock, securities or assets with respect to or in
exchange for such Common Stock, then, as a condition of such reorganization,
reclassification, consolidation, merger or sale, the Holder shall have the
right to purchase and receive upon the basis and upon the terms and conditions
specified in this warrant and in lieu of the shares of the Common Stock
immediately theretofore purchasable and receivable upon the exercise of the
rights represented hereby, such shares of stock, other securities or assets as
would have been issued or delivered to the Holder if it had exercised this
warrant and had received such shares of Common Stock prior to such
reorganization, reclassification, consolidation, merger or sale.

(c)           Notice of
Adjustment.  Upon any adjustment of
the Warrant Exercise Price, the Company shall give written notice thereof, by
first class mail, postage prepaid, addressed to the registered Holder of this
warrant at the address of such Holder as shown on the

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books of the
Company, which notice shall state the Warrant Exercise Price resulting from
such adjustment and the increase or decrease, if any, in the number of shares
purchasable at such price upon the exercise of this warrant, setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based.

4.             No rights as
Shareholder.  This warrant shall not
entitle the Holder to any voting rights or other rights as a shareholder of the
Company.

5.             Application of
Restrictions of Transfer.

(a)           (a)           No transfer of this
warrant may be completed unless and until (i) the Company has received an
opinion of counsel for the Company that such securities may be sold pursuant to
an exemption from registration under the Securities Act of 1933, as amended
(the “Securities Act”), or (ii) a registration statement relating to
this warrant has been filed by the Company and declared effective by the
Commission.  Subject to the foregoing,
this warrant and all rights hereunder are transferable, in whole or in part, at
the principal office of the Company by the Holder in person or by duly
authorized attorney, upon surrender of this warrant properly endorsed to any
person or entity who represents in writing that he/she/it is acquiring the
warrant for investment and without any view to the sale or other distribution
thereof.  Each Holder of this warrant, by
taking or holding the same, consents and agrees that the bearer of this
warrant, when endorsed, may be treated by the Company and all other persons
dealing with this warrant as the absolute owner hereof for any purpose and as
the person entitled to exercise the rights represented by this warrant or
perform the obligations required hereby, or to the transfer hereof on the books
of the Company, any notice to the contrary notwithstanding; but until such
transfer on such books, the Company may treat the registered owner hereof as
the owner for all purposes.

(b)           In no event shall the Holder(s) sell any shares of
Common Stock that are issued upon the exercise of the rights represented by
this warrant within 180 days following the effective date of an initial public
offering of the Common Stock of the Company.

(b)           (c)           Each certificate for
shares issued upon the exercise of the rights represented by this warrant shall
bear a legend as follows unless, in the opinion of counsel to the Company, such
legend is not required in order to ensure compliance with the Securities Act:

“THE SECURITIES EVIDENCED BY
THIS CERTIFICATE WERE ISSUED, AND THE SECURITIES ISSUABLE IN CONNECTION WITH
THE CONVERSION OF SUCH SECURITIES WILL BE ISSUED, IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE
SECURITIES LAWS, AND IN RELIANCE UPON THE HOLDER’S REPRESENTATION THAT SUCH
SECURITIES WERE BEING ACQUIRED FOR INVESTMENT AND NOT FOR RESALE.  NO TRANSFER OF THE SECURITIES OR THE
SECURITIES ISSUABLE IN CONNECTION WITH THE CONVERSION OF SUCH SECURTITIES MAY
BE MADE ON THE BOOKS OF THE COMPANY UNLESS (i) SUCH TRANSFER IS MADE PURSUANT
TO AN EFFECTIVE 

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REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND APPLICABLE STATE SECURITIES LAWS OR (ii) UNLESS THE HOLDER SHALL
HAVE PROVIDED THE COMPANY WITH AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO
THE COMPANY TO THE EFFECT THAT NO SUCH REGISTRATION IS REQUIRED.”

6.             Governing Law.  This Warrant shall be governed by and
construed in accordance with the laws of the State of Minnesota without regard
to its conflicts-of-law provisions.

7.             Amendments and
Waivers.  The provisions of this
Warrant may not be amended, modified or supplemented, and waiver or consents to
departures from the provisions hereof may not be given, unless the Company
agrees in writing and has obtained the written consent of the Holder.

8.             Successors and
Assigns.  All the terms and
conditions of this Warrant shall be binding upon and inure to the benefit of
the permitted successors and assigns of the Company and the Holder.

9.             Headings and
References.  The headings of this
Warrant are for convenience only and shall not affect the interpretation of
this Warrant.  Unless the context
indicates otherwise, all references herein to Sections are references to
Sections of this Warrant.

10.           Notices.  All notices or communications hereunder,
except as herein otherwise specifically provided, shall be in writing.  Notices sent to the Holder shall be mailed,
hand delivered or faxed and confirmed to the Holder at his, her or its address
set forth in the Company’s records. 
Notices sent to the Company shall be mailed, hand delivered or faxed and
confirmed to ProUroCare Medical Inc., One Carlson Parkway, Suite 124, Plymouth,
Minnesota 55447, or to such other address as the Company or the Holder shall
notify the other as provided in this Section.

IN WITNESS
WHEREOF, the Company has caused this warrant to be signed and delivered by its
duly authorized officer.

Dated:              
200  .

	
  

  	
  PROUROCARE MEDICAL INC.:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: 

  	
  Richard C. Carlson

  
	
   

  	
  Title: 

  	
  Chief Executive Officer

  
				

 

 8

WARRANT EXERCISE
(CASH/CHECK)

(To be signed only upon exercise of warrant for cash/check)

The undersigned,
the holder of the foregoing warrant, hereby irrevocably elects to exercise the
purchase right represented by such warrant for, and to purchase thereunder,                          of
the shares of Common Stock of ProUroCare Medical Inc. to which such warrant
relates and herewith makes payment of $                    
therefor in cash or by check and requests that the certificates for such shares
be issued in the name of, and be delivered to                                                         ,
whose address is set forth below the signature of the undersigned.

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  
	
  INSTRUCTIONS FOR
  REGISTRATION OF SECURITIES

  
	
   

  	
   

  
	
  Name and Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (please typewrite or print in block letters)

  
					

 

WARRANT ASSIGNMENT

(To be signed only upon transfer of warrant)

FOR VALUE
RECEIVED,                                                            
hereby sells, assigns and transfers unto:

	
  Name and Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (please typewrite or print in block letters)

  

 

the right to purchase                  
shares of Common Stock as represented by this warrant to the extent of                        
shares of Common Stock and as to which such right is exercisable and does
hereby irrevocably constitute and appoint                                                      
attorney, to transfer the same on the books of the Company with full power of
substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

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