Document:

Exhibit 4.17

 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE
HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY APPLICABLE STATE SECURITIES LAWS. 
THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF
COUNSEL SATISFACTORY TO PROUROCARE MEDICAL INC. THAT SUCH REGISTRATION IS NOT
REQUIRED.

 

WARRANT TO PURCHASE

COMMON STOCK

OF

PROUROCARE MEDICAL INC. 

VOID AFTER DECEMBER 31, 2012

 

This Warrant is issued to James Davis, or his registered assigns
(“Holder”) by ProUroCare Medical
Inc., a Nevada corporation (the “Company”), on December 27, 2007 (the “Warrant
Issue Date”) for a purchase price of $7,500.00 (the “Warrant Purchase
Price”).  This Warrant is issued
pursuant to the terms of that certain Unit Purchase Agreement dated as of December 27, 2007 (the “Purchase
Agreement”) in connection with the Company’s issuance to the Holder of a
Convertible Promissory Note dated as of the
date hereof (the “Note”), in the original principal amount of
$142,500.00.  This Warrant is intended to
be an investment warrant and is not issued in consideration of any services.

 

1.     Purchase of Shares.  Subject to the terms and
conditions hereinafter set forth and set forth in the Purchase Agreement, the
Holder is entitled, upon surrender of this Warrant at the principal office of
the Company (or at such other place as the Company shall notify the holder
hereof in writing), to purchase from the Company up to 300,000 fully paid and
nonassessable shares of Common
Stock of the Company, as constituted on the Warrant Issue Date (the “Common
Stock”).  The number of shares of
Common Stock issuable pursuant to this Section 1 (the “Shares”)
shall be subject to adjustment pursuant to Section 8 hereof.

 

2.     Exercise Price.  The purchase price
for the Shares shall be (a) equal to 50% of the per share or other unit price at which equity securities are sold
in the Company’s Public Offering (as defined below) or, (b) in the event
that the Company fails to close the Public Offering prior to June 27, 2009
(the “Conversion
Date”), the per share purchase price for the Shares
shall be equal to 50% of the closing price of the Common Stock on June 27, 2009.  Such price is
herein referred to as the “Exercise Price”.  For purposes of this Warrant, “Public
Offering” shall mean an underwritten public offering of equity securities
of the Company.

 

3.     Exercise
Period. 
This Warrant shall become exercisable, in whole or in part, commencing
upon the earlier of (i) the closing of the Public Offering or (ii) 
the Conversion Date, and it shall remain so exercisable until 5:00 p.m.,
Minneapolis time, on December 31, 2012.

 

 

4.     Method of Exercise.  While this
Warrant remains outstanding and exercisable in accordance with Section 3
above, the Holder may exercise, in whole or in part, the purchase rights
evidenced hereby.  Such exercise shall be
effected by:

 

(a)   the
surrender of the Warrant, together with a duly executed copy of the form of
Notice of Exercise attached hereto, to the Secretary of the Company at its
principal offices;

 

(b)   the
payment to the Company of a cash amount equal to the aggregate Exercise Price
for the number of Shares being purchased; and

 

(c)   the
delivery of a subscription agreement, an investment letter or similar document
acceptable to the Company demonstrating that the sale of Shares to be purchased
is exempt from registration under the Securities Act of 1933, as amended (the “Securities
Act”), and any applicable state securities laws (unless a registration
statement covering the Shares being purchased shall have been declared
effective by the Securities and Exchange Commission).

 

5.     Certificates
for Common Stock.  Upon the exercise of the purchase
rights evidenced by this Warrant, one or more certificates for the number of
Shares so purchased shall be issued as soon as practicable thereafter, bearing
the restrictive legend set forth in Section 12 of this Warrant, and in any
event within 30 days of the delivery of the subscription notice.

 

6.     Lock-Up.  In addition to any restrictions on transfer
under applicable law, the Holder acknowledges and agrees that this Warrant and
the Shares issued or issuable upon exercise of this Warrant may not be sold,
offered for sale, pledged or otherwise transferred or disposed of prior to the
expiration of a period of one-year beginning on the effective date of the
Public Offering.

 

7.     Issuance
of Shares.  The Company covenants that the Shares, when
issued pursuant to the exercise of this Warrant, will be duly and validly
issued, fully paid and nonassessable and free from all taxes, liens, and
charges with respect to the issuance thereof.

 

8.     Adjustment of Exercise Price
and Number of Shares.  The
number of and kind of securities purchasable upon exercise of this Warrant and
the Exercise Price shall be subject to adjustment from time to time as follows:

 

(a)   Subdivisions,
Combinations and Other Issuances.  If
the Company shall at any time prior to the expiration of this Warrant subdivide
its Common Stock, by split-up or otherwise, or combine its Common Stock, or
issue additional shares of its Common Stock as a dividend with respect to any
shares of its Common Stock, the number of Shares issuable on the exercise of
this Warrant shall forthwith be proportionately increased in the case of a
subdivision or stock dividend, or proportionately decreased in the case of a
combination.  Appropriate adjustments
shall also be made to the purchase price payable per share, but the aggregate
purchase price payable for the total number of Shares purchasable under this
Warrant (as adjusted) shall remain the same. 
Any adjustment under this Section 8(a) shall become effective
at the close of business on the date the subdivision or combination becomes
effective, or as of the record date of such dividend, or in the event that no
record date is fixed, upon the making of such dividend.

 

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(b)   Reclassification,
Reorganization, Consolidation, Merger
and Other Changes.  In case of
any reclassification, capital reorganization or change in the Common Stock of
the Company (other than as a result of a subdivision, combination, or stock
dividend provided for in Section 8(a) above), or consolidation or merger of the Company with or into 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 Company’s
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 reclassification,
reorganization, change, consolidation, merger
or sale, lawful provision shall be made, and duly executed documents
evidencing the same from the Company or its successor shall be delivered to the
Holder, so that the Holder shall have the right at any time prior to the
expiration of this Warrant to purchase, at a total price equal to that payable
upon the exercise of this Warrant, the kind and amount of shares of stock and
other securities and property receivable in connection with such
reclassification, reorganization, change, consolidation, merger or sale by a holder of the
same number of shares of Common Stock as were purchasable by the Holder
immediately prior to such reclassification, reorganization, change,
consolidation, merger or sale.  In any such case appropriate provisions shall
be made with respect to the rights and interest of the Holder so that the
provisions hereof shall thereafter be applicable with respect to any shares of
stock or other securities and property deliverable upon exercise hereof, and
appropriate adjustments shall be made to the purchase price per share payable
hereunder, provided the aggregate purchase price shall remain the same.

 

(c)   Minimum
Adjustment.  Notwithstanding anything
herein to the contrary, no adjustment under this Section 8 need be made to
the Exercise Price unless such adjustment would require an increase or decrease
of at least 1% of the Exercise Price then in effect.  Any lesser adjustment shall be carried
forward and shall be made at the time of and together with the next subsequent
adjustment, which, together with any adjustment or adjustments so carried
forward, shall amount to an increase or decrease of at least 1% of such Exercise
Price.  Any adjustment to the Exercise
Price carried forward and not theretofore made shall be made immediately prior
to the conversion of this Warrant pursuant thereto.

 

(d)   Other
Adjustment.  If the Company at any
time or from time to time shall take any other action, or if any other event
occurs, affecting the shares of Common Stock or its other equity interests, if
any, other than an action described in this Section 8, then, and in each such case, the Exercise
Price shall be adjusted in such manner and at such time as the Board of
Directors of the Company in good faith determines to be equitable in the
circumstances (such determination to be evidenced in a resolution, a certified
copy of which shall be mailed to the Holder).

 

(e)   Notice
of Adjustment.  When any
adjustment is required to be made in the number or kind of shares purchasable
upon exercise of the Warrant, or in the Exercise Price, the Company shall
promptly notify the Holder of such event and of the number of shares of Common
Stock or other securities or property thereafter purchasable upon exercise of
this Warrant setting forth in reasonable detail the method of calculation and
the facts upon which such calculation is based.

 

3

 

(f)    Effects of Reverse Stock Split.  Notwithstanding any of the foregoing, the
Exercise Price shall not be adjusted under this Section 8 for the Company’s
Reverse Stock Split.  For purposes of
this Warrant, “Reverse Stock Split” shall mean the ten-for-one
reverse split of the Company’s Common Stock effective prior to the
effectiveness of a Public Offering.  For
example, after the Reverse Stock Split, the per share purchase price for the
Shares shall be 50%  of the per share
or other unit price at which equity securities are sold by the Company in a
Public Offering  or, in the event that the Company fails to close the
Public Offering prior to the
Conversion Date, the per share purchase price for the Shares shall
be equal to 50%  of the closing price of the Common Stock
on  June 27, 2009.

 

9.     No Fractional Shares or Scrip.  No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant, but in
lieu of such fractional shares the Company shall make a cash payment therefore
on the basis of the Exercise Price then in effect.

 

10.  No Stockholder Rights.  Prior to exercise of this Warrant, the Holder shall
not be entitled to any rights of a stockholder with respect to the Shares,
including (without limitation) the right to vote such Shares, receive dividends
or other distributions thereon, exercise preemptive rights or be notified of
stockholder meetings, and such holder shall not be entitled to any notice or
other communication concerning the business or affairs of the Company.  However, nothing in this Section 10
shall limit the right of the Holder to be provided the notices required under
this Warrant or the Purchase Agreement.

 

11.  Exchange
of Warrant. 
This Warrant is exchangeable, without expense, at the option of the
Holder, upon presentation and surrender hereof to the Company for other
Warrants of different denominations entitling the Holder thereof to purchase in
the aggregate the same number of Warrant Shares purchasable hereunder on the
same terms and conditions as herein set forth.

 

12.  Application
of Restrictions on Transfer.

 

(a)   Transferability.  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, 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.

 

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(b)   Restrictive
Legend.  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 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 MAY BE MADE ON THE BOOKS OF THE COMPANY UNLESS (i) SUCH
TRANSFER IS MADE PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS OR (ii) 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.”

 

13.  Successors and Assigns.  The terms and provisions of this Warrant and
the Purchase Agreement shall inure to the benefit of, and be binding upon, the
Company and the Holder hereof and their respective successors and assigns.

 

14.  Loss
or Mutilation of Warrant.  Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction, or mutilation of this
Warrant, and (in the case of loss, theft or destruction) or reasonably
satisfactory indemnification, and upon surrender and cancellation of this
Warrant, if mutilated, the Company will execute and deliver a new Warrant of
like tenor and date and any such lost, stolen or destroyed Warrant shall
thereupon become void.  Any such new
Warrant executed and delivered shall constitute an additional contractual
obligation on the part of the Company, whether or not this Warrant so lost,
stolen, destroyed, or mutilated shall be at any time enforceable by anyone.

 

15.  Amendments and Waivers.  Any term of this Warrant may be amended and the
observance of any term of this Warrant may be waived (either generally or in a
particular instance and either retroactively or prospectively), with the
written consent of the Company and the
Holder.

 

16.  Notices.  All
notices required under this Warrant shall be deemed to have been given or made
for all purposes (i) upon personal delivery, (ii) upon confirmation
receipt that the communication was successfully sent to the applicable number
if sent by facsimile; (iii) one day after being sent, when sent by
professional overnight courier service, or (iv) five days after posting
when sent by registered or certified mail. 
Notices to the Company shall be sent to ProUroCare Medical Inc., 5500
Wayzata Blvd., Suite 310, Golden Valley, MN, 55416 (or at such other place
as the Company shall notify the Holder hereof in writing).  Notices to the Holder shall be sent to the
address of the Holder set forth in Schedule A to the Purchase Agreement
(or at such other place as the Holder shall notify the Company hereof in
writing).

 

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17.  Attorneys’ Fees.  If any action of law or equity is necessary to
enforce or interpret the terms of this Warrant, the prevailing party shall be
entitled to its reasonable attorneys’ fees, costs and disbursements in addition
to any other relief to which it may be entitled.

 

18.  Captions.  The
section and subsection headings of this Warrant are inserted for convenience
only and shall not constitute a part of this Warrant in construing or
interpreting any provision hereof.

 

19.  Governing Law.  This Warrant shall be governed by the laws of the
State of Minnesota as applied to agreements among Minnesota residents made and
to be performed entirely within the State of Minnesota.

 

IN
WITNESS WHEREOF,
ProUroCare Medical Inc. caused
this Warrant to be executed by an officer thereunto duly authorized.

 

 

	
   

  	
  PROUROCARE MEDICAL INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
     /s/Richard Thon

  
	
   

  	
  Name:
  

  	
  Richard
  Thon

  
	
   

  	
  Title:

  	
   CFO

  
						

 

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WARRANT ASSIGNMENT

 

(to be signed only upon transfer of this warrant)

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto                                                                  
the right represented by the within Warrant to purchase, from ProUroCare Medical Inc., a Nevada corporation
(the “Company”), shares of the Common Stock of the Company, to which the
within Warrant relates and appoints                                                               
attorney to transfer said right on the books of ProUroCare Medical Inc., with full power of substitution in the
premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Social Security or
  other Tax Identification No.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Please print present name and address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  

 

 

NOTICE OF EXERCISE

 

To:          ProUroCare Medical Inc.

 

The undersigned hereby elects
to purchase                               
shares of Common Stock of ProUroCare Medical Inc., pursuant to
the terms of the attached Warrant and payment of the Exercise Price per share
required under such Warrant accompanies this notice.

 

The undersigned
hereby represents and warrants that the undersigned is acquiring such shares
for its own account for investment purposes only, and not for resale or with a
view to distribution of such shares or any part thereof.

 

 

	
   

  	
  Name of Warrant
  Holder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
	
   

  
	
  Name in which shares should be registered:Exhibit 4.18

 

FORM OF WARRANT

 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE
HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR ANY APPLICABLE STATE SECURITIES LAWS. 
THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF
COUNSEL SATISFACTORY TO PROUROCARE MEDICAL INC. THAT SUCH REGISTRATION IS NOT
REQUIRED.

 

WARRANT TO PURCHASE

COMMON STOCK

OF

PROUROCARE MEDICAL INC. 

VOID AFTER DECEMBER 31, 2012

 

This Warrant is issued to [                ],
or its registered assigns (“Holder”) by ProUroCare Medical Inc., a Nevada corporation (the “Company”),
on [Insert date], 2008(1) (the
“Warrant Issue Date”) for a purchase price of $[      ]
(the “Warrant Purchase Price”). 
This Warrant is issued pursuant to the terms of that certain Unit
Purchase Agreement dated as of                                   ,
2008 (the “Purchase Agreement”) in connection with the Company’s
issuance to the Holder of a Convertible Promissory Note dated as of the date hereof (the “Note”),
in the original principal amount of $                    .  This Warrant is intended to be an investment
warrant and is not issued in consideration of any services.

 

1.     Purchase of Shares.  Subject to
the terms and conditions hereinafter set forth and set forth in the Purchase
Agreement, the Holder is entitled, upon surrender of this Warrant at the
principal office of the Company (or at such other place as the Company shall
notify the holder hereof in writing), to purchase from the Company up to [                  ]
fully paid and nonassessable shares of Common
Stock of the Company, as constituted on the Warrant Issue Date (the “Common
Stock”).  The number of shares of
Common Stock issuable pursuant to this Section 1 (the “Shares”)
shall be subject to adjustment pursuant to Section 8 hereof.

 

2.     Exercise Price.  The purchase price
for the Shares shall be (a) equal to 50% of the per share or other unit price at which equity securities are sold
in the Company’s Public Offering (as defined below) or, (b) in the event
that the Company fails to close the Public Offering prior to [the
eighteen-month anniversary of the date of the Purchase Agreement] (the “Conversion Date”), the per share purchase price for the Shares shall be equal to 50% of the closing price
of the Common Stock on [the eighteen-month anniversary of the date of
the Purchase Agreement]. 
Such price is herein referred to as the “Exercise Price”.  For purposes of this Warrant, “Public
Offering” shall mean an underwritten public offering of equity securities
of the Company.

 

(1) The
date of the Purchase Agreement.

 

 

3.     Exercise Period.  This Warrant shall become exercisable, in
whole or in part, commencing upon the earlier of (i) the closing of the
Public Offering or (ii)  the Conversion Date, and it shall remain so
exercisable until 5:00 p.m., Minneapolis time, on December 31, 2012.

 

4.     Method of Exercise.  While this
Warrant remains outstanding and exercisable in accordance with Section 3
above, the Holder may exercise, in whole or in part, the purchase rights
evidenced hereby.  Such exercise shall be
effected by:

 

(a)   the
surrender of the Warrant, together with a duly executed copy of the form of
Notice of Exercise attached hereto, to the Secretary of the Company at its
principal offices;

 

(b)   the
payment to the Company of a cash amount equal to the aggregate Exercise Price
for the number of Shares being purchased; and

 

(c)   the
delivery of a subscription agreement, an investment letter or similar document
acceptable to the Company demonstrating that the sale of Shares to be purchased
is exempt from registration under the Securities Act of 1933, as amended (the “Securities
Act”), and any applicable state securities laws (unless a registration
statement covering the Shares being purchased shall have been declared
effective by the Securities and Exchange Commission).

 

5.     Certificates for Common Stock. 
Upon the exercise of the purchase rights evidenced by
this Warrant, one or more certificates for the number of Shares so purchased
shall be issued as soon as practicable thereafter, bearing the restrictive
legend set forth in Section 12 of this Warrant, and in any event within 30
days of the delivery of the subscription notice.

 

6.     Intentionally
Omitted.

 

7.     Issuance
of Shares.  The Company covenants that the Shares, when
issued pursuant to the exercise of this Warrant, will be duly and validly
issued, fully paid and nonassessable and free from all taxes, liens, and
charges with respect to the issuance thereof.

 

8.     Adjustment of Exercise Price
and Number of Shares.  The
number of and kind of securities purchasable upon exercise of this Warrant and
the Exercise Price shall be subject to adjustment from time to time as follows:

 

(a)   Subdivisions,
Combinations and Other Issuances.  If
the Company shall at any time prior to the expiration of this Warrant subdivide
its Common Stock, by split-up or otherwise, or combine its Common Stock, or
issue additional shares of its Common Stock as a dividend with respect to any
shares of its Common Stock, the number of Shares issuable on the exercise of
this Warrant shall forthwith be proportionately increased in the case of a
subdivision or stock dividend, or proportionately decreased in the case of a
combination.  Appropriate adjustments
shall also be made to the purchase price payable per share, but the aggregate
purchase price payable for the total number of Shares purchasable under this
Warrant (as adjusted) shall remain the same. 
Any adjustment under this Section 8(a) shall become effective
at the close of business on the date the subdivision or 

 

2

 

combination becomes effective, or as of the record
date of such dividend, or in the event that no record date is fixed, upon the
making of such dividend.

 

(b)   Reclassification,
Reorganization, Consolidation, Merger
and Other Changes.  In case of
any reclassification, capital reorganization or change in the Common Stock of
the Company (other than as a result of a subdivision, combination, or stock
dividend provided for in Section 8(a) above), or consolidation or merger of the Company with or into 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 Company’s
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 reclassification,
reorganization, change, consolidation, merger
or sale, lawful provision shall be made, and duly executed documents
evidencing the same from the Company or its successor shall be delivered to the
Holder, so that the Holder shall have the right at any time prior to the
expiration of this Warrant to purchase, at a total price equal to that payable
upon the exercise of this Warrant, the kind and amount of shares of stock and
other securities and property receivable in connection with such
reclassification, reorganization, change, consolidation, merger or sale by a holder of the
same number of shares of Common Stock as were purchasable by the Holder
immediately prior to such reclassification, reorganization, change,
consolidation, merger or sale.  In any such case appropriate provisions shall
be made with respect to the rights and interest of the Holder so that the
provisions hereof shall thereafter be applicable with respect to any shares of
stock or other securities and property deliverable upon exercise hereof, and
appropriate adjustments shall be made to the purchase price per share payable
hereunder, provided the aggregate purchase price shall remain the same.

 

(c)   Minimum
Adjustment.  Notwithstanding anything
herein to the contrary, no adjustment under this Section 8 need be made to
the Exercise Price unless such adjustment would require an increase or decrease
of at least 1% of the Exercise Price then in effect.  Any lesser adjustment shall be carried
forward and shall be made at the time of and together with the next subsequent
adjustment, which, together with any adjustment or adjustments so carried
forward, shall amount to an increase or decrease of at least 1% of such
Exercise Price.  Any adjustment to the
Exercise Price carried forward and not theretofore made shall be made
immediately prior to the conversion of this Warrant pursuant thereto.

 

(d)   Other
Adjustment.  If the Company at any
time or from time to time shall take any other action, or if any other event
occurs, affecting the shares of Common Stock or its other equity interests, if
any, other than an action described in this Section 8, then, and in each such case, the Exercise
Price shall be adjusted in such manner and at such time as the Board of
Directors of the Company in good faith determines to be equitable in the
circumstances (such determination to be evidenced in a resolution, a certified
copy of which shall be mailed to the Holder).

 

(e)   Notice of Adjustment.  When any adjustment is required to be made in
the number or kind of shares purchasable upon exercise of the Warrant, or in
the Exercise Price, the Company shall promptly notify the Holder of such event
and of the number of shares of Common Stock or other securities or property
thereafter purchasable upon exercise of this 

 

3

 

Warrant setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based.

 

(f)    Effects of Reverse Stock Split.  Notwithstanding any of the foregoing, the
Exercise Price shall not be adjusted under this Section 8 for the Company’s
Reverse Stock Split.  For purposes of
this Warrant, “Reverse Stock Split” shall mean the ten-for-one
reverse split of the Company’s Common Stock effective prior to the
effectiveness of a Public Offering.  For
example, after the Reverse Stock Split, the per share purchase price for the
Shares shall be 50%  of the per share
or other unit price at which equity securities are sold by the Company in a
Public Offering  or, in the event that the Company fails to close the
Public Offering prior to the
Conversion Date, the per share purchase price for the Shares shall
be equal to 50%  of the closing price of the Common Stock
on [the
eighteen-month  anniversary of the date of
the Purchase Agreement].

 

9.     No Fractional Shares or Scrip.  No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant, but in
lieu of such fractional shares the Company shall make a cash payment therefore
on the basis of the Exercise Price then in effect.

 

10.  No Stockholder Rights.  Prior to exercise of this Warrant, the Holder shall
not be entitled to any rights of a stockholder with respect to the Shares,
including (without limitation) the right to vote such Shares, receive dividends
or other distributions thereon, exercise preemptive rights or be notified of
stockholder meetings, and such holder shall not be entitled to any notice or
other communication concerning the business or affairs of the Company.  However, nothing in this Section 10
shall limit the right of the Holder to be provided the Notices required under
this Warrant or the Purchase Agreement.

 

11.  Exchange
of Warrant. 
This Warrant is exchangeable, without expense, at the option of the
Holder, upon presentation and surrender hereof to the Company for other
Warrants of different denominations entitling the Holder thereof to purchase in
the aggregate the same number of Warrant Shares purchasable hereunder on the
same terms and conditions as herein set forth.

 

12.  Application
of Restrictions on Transfer.

 

(a)   Transferability.  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, 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,

 

4

 

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)   Restrictive
Legend.  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 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 MAY BE MADE ON THE BOOKS OF THE COMPANY UNLESS (i) SUCH
TRANSFER IS MADE PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS OR (ii) 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.”

 

13.  Successors and Assigns.  The terms and provisions of this Warrant and the
Purchase Agreement shall inure to the benefit of, and be binding upon, the
Company and the Holders hereof and their respective successors and assigns.

 

14.  Loss
or Mutilation of Warrant.  Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction, or mutilation of this Warrant,
and (in the case of loss, theft or destruction) or reasonably satisfactory
indemnification, and upon surrender and cancellation of this Warrant, if
mutilated, the Company will execute and deliver a new Warrant of like tenor and
date and any such lost, stolen or destroyed Warrant shall thereupon become
void.  Any such new Warrant executed and
delivered shall constitute an additional contractual obligation on the part of
the Company, whether or not this Warrant so lost, stolen, destroyed, or
mutilated shall be at any time enforceable by anyone.

 

15.  Amendments and Waivers.  Any term of this Warrant may be amended and the
observance of any term of this Warrant may be waived (either generally or in a
particular instance and either retroactively or prospectively), with the
written consent of the Company and the
holders of warrants representing a majority of the shares then issuable
pursuant to the exercise of Warrants issued pursuant to the Purchase Agreement
(the “Majority Purchasers”); provided,
however, that no amendment, change or modification respecting this Warrant
may be made by the Majority Purchasers without the consent of the Holder unless
a comparable amendment, change or modification is made respecting all of the
Warrants issued pursuant to the Purchase Agreement.  Any waiver or amendment
effected in accordance with this Section 15 shall be binding upon each
holder of a Warrant purchased under the Purchase Agreement, each future holder
of all such Warrants and the Company.

 

5

 

16.  Effect of Amendment or Waiver.  The Holder
acknowledges that by operation of Section 15 hereof, the holders of
warrants representing a majority of the shares then issuable pursuant to the
exercise of Warrants issued pursuant to the Purchase Agreement will have the
right and power to diminish or eliminate all rights of such holder under this
Warrant or under the Purchase Agreement.

 

17.  Notices.  All
notices required under this Warrant shall be deemed to have been given or made for
all purposes (i) upon personal delivery, (ii) upon confirmation
receipt that the communication was successfully sent to the applicable number
if sent by facsimile; (iii) one day after being sent, when sent by
professional overnight courier service, or (iv) five days after posting
when sent by registered or certified mail. 
Notices to the Company shall be sent to ProUroCare Medical Inc., 5500
Wayzata Blvd., Suite 310, Golden Valley, MN, 55416 (or at such other place
as the Company shall notify the Holder hereof in writing).  Notices to the Holder shall be sent to the
address of the Holder on the books of the Company (or at such other place as
the Holder shall notify the Company hereof in writing).

 

18.  Attorneys’ Fees.  If any action of law or equity is necessary to
enforce or interpret the terms of this Warrant, the prevailing party shall be
entitled to its reasonable attorneys’ fees, costs and disbursements in addition
to any other relief to which it may be entitled.

 

19.  Captions.  The
section and subsection headings of this Warrant are inserted for convenience
only and shall not constitute a part of this Warrant in construing or
interpreting any provision hereof.

 

20.  Governing Law.  This Warrant shall be governed by the laws of the
State of Minnesota as applied to agreements among Minnesota residents made and
to be performed entirely within the State of Minnesota.

 

IN
WITNESS WHEREOF,
ProUroCare Medical Inc. caused
this Warrant to be executed by an officer thereunto duly authorized.

 

 

	
   

  	
  PROUROCARE MEDICAL INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

6

 

WARRANT ASSIGNMENT

 

(to be signed only upon transfer of this warrant)

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto                                                                         
the right represented by the within Warrant to purchase, from ProUroCare Medical Inc., a Nevada corporation
(the “Company”), shares of the Common Stock of the Company, to which the
within Warrant relates and appoints                                                               
attorney to transfer said right on the books of ProUroCare Medical Inc., with full power of substitution in the
premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Social Security or
  other Tax Identification No.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Please print present
  name and address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
					

 

 

NOTICE OF EXERCISE

 

To:         ProUroCare
Medical Inc.

 

The undersigned hereby elects
to purchase                               
shares of Common Stock of ProUroCare Medical Inc., pursuant to
the terms of the attached Warrant and payment of the Exercise Price per share
required under such Warrant accompanies this notice.

 

The undersigned
hereby represents and warrants that the undersigned is acquiring such shares
for its own account for investment purposes only, and not for resale or with a
view to distribution of such shares or any part thereof.

 

 

	
   

  	
  Name of Warrant
  Holder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
	
   

  
	
  Name in which shares should be registered:

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