Document:

Exhibit
10.1

    

     

    ASSET
PURCHASE AGREEMENT

     

    This ASSET PURCHASE AGREEMENT (the
“Agreement”), is made this 10th day of
July, 2009, by and between SteelCloud, Inc., a Virginia corporation (“Seller”), and NCS
Technologies, Inc., a Virginia corporation (“Buyer”).

     

    1.           Purchase
of Assets.  Upon the terms and subject to the conditions of
this Agreement, Buyer agrees to purchase, and Seller agrees to sell, all of
Seller’s right, title and interest in and to those certain assets of Seller
relating to Seller’s integration business (the “Integration Business”) listed
on Exhibit
1 attached hereto (the “Purchased Assets”), free and
clear of all Encumbrances (as herein defined). The purchase price for the
Purchased Assets shall be $475,000 (the “Purchase Price”), subject to
adjustment pursuant to Section 3 hereof and/or
offset pursuant to Section 12.4
hereof.

     

    2.           Payment
of Purchase Price and Reporting.

     

    
      	
               
      

            	
              2.1.

            	
              Buyer
      shall pay Seller $150,000 at Closing, which amount shall be inclusive of
      Buyer’s $50,000 good faith advance deposit (the “Escrow Deposit”)
      escrowed pursuant to that certain Escrow Agreement dated as of July 2,
      2009 by and among Seller, Buyer and Fettmann, Tolchin & Majors PC, as
      escrow agent (the “Escrow
      Agreement”).  This payment is allocated $75,000 to the
      Purchased Assets consisting of finished goods, work in progress, and
      components (the “Goods
      and WIP Assets”), and $75,000 to the Purchased Assets consisting of
      service inventory (the “Service Inventory
      Assets”), all as further specified on Exhibit
      1 attached hereto.  Subject to offset pursuant to Section 12.4 hereof,
      the remaining $325,000 of the Purchase Price (the “Earnout Amount”),
      allocated to good will, shall be payable solely from, and solely to the
      extent of, revenue actually received by Buyer after the Closing Date until
      the third (3rd)
      anniversary of the Closing Date from the existing Integration Business
      clients and prospects with respect to which Seller has had verifiable
      contact regarding the Integration Business within the six-month period
      immediately preceding the Closing Date, in each case as listed on Exhibit
      2 attached hereto (collectively, “Clients”), at a rate
      equal to 15% of the Net Sales Price actually received by Buyer from such
      Clients.  For purposes of this Agreement, “Net Sales Price” means
      the aggregate amount, net of any returns or credits against sales, that
      one or more Clients shall have paid to Buyer relating to the Goods and WIP
      Assets or the Service Inventory Assets, in connection with a sale
      transaction accepted by Buyer and closed, less any (i) sales taxes, excise
      taxes, value-added taxes and any other taxes (other than income taxes
      payable by Buyer to U.S. federal or state authorities) payable in
      connection with or as a result of such sale transaction and (ii) any
      freight costs, insurance costs or duties payable in connection with or as
      a result of such sale transaction.

            

    

     

    
      
      

    

    
      	
               
      

            	
              2.2.

            	
              Any
      post-Closing payments owed to Seller hereunder, including but not limited
      to payments in respect of sales of Consigned Filter Inventory pursuant to
      Section
      5
      hereof, are due and payable to Seller on or before the tenth (10th)
      business day of the month following the month Buyer actually receives the
      applicable payment from Clients.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.3.

            	
              Buyer
      shall keep full and complete records of sales to Clients.  Buyer
      shall provide to Seller a report each month on or before the tenth
      (10th)
      business day of the month listing the Clients from which Buyer actually
      received revenue, and the amounts and nature of such sales, during the
      prior month, including but not limited to information regarding any sales
      of Consigned Filter Inventory pursuant to Section 5
      hereof.  Seller shall have the right at any reasonable time to
      audit or review such records of Buyer at Seller’s own
      cost.  However, if the audit or review shows aggregate
      undisputed underpayments to Seller in excess of 5% in any calendar
      quarter, Buyer shall reimburse Seller the reasonable cost of such audit or
      review.

            

    

     

    3.           Post-Closing
Purchase Price Adjustments.  Within thirty (30) days after
Closing, Seller and Buyer shall undertake and complete a joint audit of the
Goods and WIP Assets, for purposes of identifying any missing or materially
deficient items of the Purchased Assets.  In the event that any items
of the Purchased Assets are missing or are materially deficient, the Purchase
Price will be adjusted and decreased on a dollar-for-dollar basis using the
values set forth on Schedule
3
attached hereto, and the deficit amount shall be payable by check or wire
transfer of immediately available funds by Seller to Buyer within five (5) days
of the audit.  The Service Inventory Assets are not subject to this
clause.  

     

    4.           Assumption
of Liabilities.

     

    
      	
               
      

            	
              4.1.

            	
              At
      Closing, Buyer shall assume and agrees to pay, discharge or perform as
      necessary only the following liabilities and obligations (the “Assumed
      Liabilities”):

            

    

     

    
      	
               
      

            	
              a.

            	
              Fulfillment
      obligations under customer purchase orders with Clients that were not
      fulfilled as of the Closing Date, as set forth on Schedule
      4.1
      attached hereto; and

            

    

     

    
      	
               
      

            	
              b.

            	
              Responsibilities
      to Clients under the terms of existing warranties (the “Existing Warranties”)
      and existing contracts (the “Existing
      Contracts”).

            

    

     

    
      	
               
      

            	
              4.2.

            	
              Except
      for the Assumed Liabilities, Buyer is not assuming, nor shall it in any
      way be liable or responsible for, any liabilities, obligations or debts of
      Seller, whether accrued, absolute, contingent or otherwise and whether
      arising out of or relating to the Purchased Assets or otherwise, arising
      before or after the Closing Date, including, without limitation, any
      liability of Seller or its affiliates not specifically identified in Section 4.1, whether
      known or unknown and whether relating to the ownership or use of the
      Purchased Assets, Seller’s conduct of the Integration Business or
      otherwise, any product liability relating to or in respect of the
      Purchased Assets, and any liability of Seller arising out of or relating
      to the execution, delivery or performance by Seller of this Agreement or
      any other document or instrument in connection with the transactions
      contemplated hereby (collectively, the “Excluded
      Liabilities”).  Seller shall pay all liabilities of
      Seller and take any and all actions necessary to prevent any person or
      governmental authority from having recourse against any of the Purchased
      Assets purchased by Buyer or against Buyer solely with respect to any such
      liabilities of Seller, including, without limitation, the Excluded
      Liabilities.

            

    

     

    
      
         

      

      
        Page
2

        
          

        

      

      
         

      

    

     

    5.           Consignment
of Filter Inventory.

     

    
      	
               
      

            	
              5.1.

            	
              Seller
      hereby consigns to Buyer, and Buyer hereby accepts consignment from Seller
      of, the Consigned Filter Inventory.  The term of such
      consignment arrangment shall begin on the Closing Date and shall continue
      for a period of two (2) years from the Closing Date (the “Consignment
      Period”).  For purposes of this Agreement, the term “Consigned Filter
      Inventory” shall mean the filter inventory of Seller set forth on
      Exhibit
      3 attached hereto, in the quantities set forth
    thereon.

            

    

     

    
      	
               
      

            	
              5.2.

            	
              During
      the Consignment Period, Buyer generally may effect the sale of the
      Consigned Filter Inventory through one or more sales or series of sales to
      one or more Clients; provided, however, that the pricing terms of any such
      sale or sales are within the sole and absolute discretion of
      Buyer.  Buyer will pay to Seller for each item of the Consigned
      Filter Inventory sold to a Client the price stated on Exhibit
      3 attached hereto
      corresponding to the applicable item of the Consigned Filter Inventory
      (irrespective of the pricing terms of such sale, as between Buyer and a
      Client), in accordance with Section 0
      hereof.

            

    

     

    
      	
               
      

            	
              5.3.

            	
              For
      purposes of this Agreement, Buyer will at all times be acting as a
      consignee of Seller and not as a principal with regard to the Consigned
      Filter Inventory.  Ownership in and title to the Consigned
      Filter Inventory including ownership in and to all intellectual
      proprietary rights relating to the Consigned Filter Inventory shall at all
      times, before, during and after the termination of this Agreement and
      until items of the Consigned Filter Inventory are sold to a Client, remain
      vested in Seller.  At all times, the Consigned Filter Inventory
      shall be kept separately identified and segregated from the Purchased
      Assets and any property of Buyer.

            

    

     

    
      	
               
      

            	
              5.4.

            	
              Buyer
      shall return all unsold Consigned Filter Inventory to Seller within thirty
      (30) days after the end of the Consignment
  Period.

            

    

     

    6.           Covenants
of Seller.  Seller hereby covenants and agrees with Buyer
that:

     

    
      	
               
      

            	
              6.1.

            	
              Seller
      shall use its best efforts to maintain its current relationships with
      suppliers, customers, Clients and others having business relations with
      Seller in connection with the Purchased Assets or the Integration Business
      and shall assist Buyer in effecting an orderly transition of these
      relationships to Buyer from and after
Closing.

            

    

     

    
      
         

      

      
        Page
3

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              6.2.

            	
              Seller
      shall use its best efforts to preserve the Purchased Assets and conduct
      the Integration Business and all transactions with respect to the
      Purchased Assets in the usual and ordinary course of business consistent
      with Seller’s past practice.

            

    

     

    
      	
               
      

            	
              6.3.

            	
              Seller
      shall not, directly or indirectly, sell, transfer, pledge, lease, license,
      offer to sell, abandon or make any other disposition of any of the
      Purchased Assets or grant or suffer to exist, or agree to grant or suffer
      to exist, any Encumbrances on any of the Purchased
  Assets.

            

    

     

    
      	
               
      

            	
              6.4.

            	
              Seller
      shall be responsible for, and shall indemnify Buyer from and against, any
      and all accounts payable relating to the Purchased Assets arising on or
      prior to the Closing Date; provided, however, that none of the foregoing
      of this Section
      6.4 shall be
      deemed to limit or waive Seller’s obligations to deliver to Buyer the
      Purchased Assets free and clear of all
  Encumbrances.

            

    

     

    
      	
               
      

            	
              6.5.

            	
              Buyer
      shall have the first right, but not any obligation, to offer employment
      from and after the Closing Date to some or all of Seller’s employees
      involved with the Integration Business, at such salaries or wages, duties
      and responsibilities as shall be mutually acceptable to Buyer and such
      employees; provided, however, that Buyer is not committing to the hiring
      of any employees, and under no circumstances shall Buyer assume or bear
      any responsibility for any severance obligations in respect of any
      terminated Seller employees subsequently hired by Buyer, if any; provided,
      further, that Seller shall retain all obligations and liabilities, if any,
      for, and shall defend, indemnify and hold harmless Buyer, in accordance
      with Section
      12.3 hereof, in
      connection with (i) any claim (including, without limitation, any claim
      for unpaid wages, accrued vacation time and employee benefits matters)
      relating to any employment by Seller, (ii) any lawsuit, administrative
      charge, arbitration, formal proceeding or written demand or notice
      pertaining to an employee and arising out of employment with Seller and
      (iii) any worker’s compensation or other claims arising from any injury or
      act occurring during employment with Seller.  Without limiting
      any of the foregoing, Seller shall use its best efforts to cause the
      assignment to Buyer of any and all employee non-competition agreements
      pertaining to any of Seller’s employees subsequently hired by
      Buyer.

            

    

     

    
      	
               
      

            	
              6.6.

            	
              Until
      and for the first thirty (30) days following the Closing Date, Seller
      shall cooperate in good faith with Buyer and use commercially reasonably
      efforts to make available to Buyer its records, staff and such other
      materials as related to the Integration Business and the Purchased
      Assets.

            

    

     

    7.           Covenants
of Buyer.  Buyer hereby covenants and agrees with Seller
that:

     

    
      	
               
      

            	
              7.1.

            	
              Buyer,
      at its sole cost, will remove the Purchased Assets and Consigned Filter
      Inventory from Seller’s premises within thirty (30) days of
      Closing.

            

    

     

    
      
         

      

      
        Page
4

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              7.2.

            	
              Buyer
      shall use its best efforts to cooperate in good faith with Seller to
      effect an orderly transition to Buyer of Seller’s current relationships
      with suppliers, customers, Clients and others having business relations
      with Seller in connection with the Purchased Assets or the Integration
      Business and shall assist Seller in transitioning these relationships to
      Buyer from and after Closing.

            

    

     

    
      	
               
      

            	
              7.3.

            	
              Buyer
      shall cooperate in good faith with Seller and use commercially reasonably
      efforts to assist Seller in collecting outstanding receivables owed to
      Seller by Clients for transactions effected prior to Closing; provided,
      however, that in no event shall Buyer be required to incur any cost or any
      material obligations or suffer the loss of any right or benefit in
      connection therewith.  Seller acknowledges and agrees that
      attached hereto as Schedule
      7.3
      is a list of Seller’s receivables from Clients.  All payments
      received by Buyer from a Client in respect of a receivable listed on Schedule
      7.3
      on or after Closing will be credited to such receivable and remitted to
      Seller.  Without limiting the foregoing, Buyer shall not
      knowingly take any action that materially adversely interferes with
      Seller’s ability to collect said
receivables.

            

    

     

    8.           Representations
and Warranties of Seller.  Seller represents and warrants to
Buyer as follows:

     

    
      	
               
      

            	
              8.1.

            	
              Organization
      of Seller.  Seller is a corporation duly formed, validly
      existing and in good standing under the laws of the Commonwealth of
      Virginia.

            

    

     

    
      	
               
      

            	
              8.2.

            	
              Authorization;
      Enforceability.  Seller has all requisite power and
      authority to execute and deliver this Agreement and each other instrument
      required hereby to be executed and delivered by it, to perform its
      obligations hereunder and thereunder and to consummate the transactions
      contemplated hereby and thereby.  The execution and delivery by
      Seller of this Agreement and each other instrument required hereby and
      thereby to be executed and delivered by it, the performance by Seller of
      its obligations hereunder and thereunder and the consummation by Seller of
      the transactions contemplated hereby and thereby have been duly and
      validly authorized by all necessary action on the part of Seller and its
      stockholders, board of directors and officers, and no other proceedings on
      the part of Seller or its stockholders, board of directors or officers are
      required to authorize this Agreement or any of the other instruments
      required hereby or thereby or for Seller to consummate the transactions
      contemplated hereby or thereby.  This Agreement has been, and
      upon execution and delivery thereof by Seller each other instrument
      described herein and therein and to be executed and delivered by Seller,
      will be, duly and validly executed and delivered by Seller and, assuming
      the due and valid authorization, execution and delivery by the other
      parties thereto, constitutes, or in the case of each such other other
      instrument, will constitute, a valid and binding obligation of Seller,
      enforceable against Seller in accordance with their respective terms,
      except to the extent that enforceability may be limited by applicable
      bankruptcy, reorganization, insolvency, moratorium or other similar laws
      affecting the enforcement of creditors’ rights generally and by principles
      of equity regardless of whether such enforceability is considered in a
      proceeding in law or at equity.

            

    

     

    
      
         

      

      
        Page
5

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              8.3.

            	
              Title
      to Purchased Assets.  Seller has good and marketable
      title to all of the Purchased Assets, free and clear of all
      Encumbrances.  The Goods and WIP Assets are in good condition
      and repair.  Seller has complete and unrestricted power and the
      unqualified right to transfer, convey and assign the Purchased Assets, and
      the conveyance instrument executed and delivered at Closing will be, when
      executed and delivered by the parties thereto, valid and binding
      obligations of Seller, enforceable in accordance with their respective
      terms, sufficient for purposes of recordation and filing where permitted
      by law, and sufficient to transfer, convey and assign to Buyer all right,
      title and interest of Seller in and to the Purchased
      Assets.  Seller owns or licenses all the intellectual property
      associated with the Purchased Assets or that Seller otherwise uses in the
      Integration Business.  To the knowledge of Seller, the use of
      the intellectual property associated with the Purchased Assets or used in,
      or necessary to, the conduct of the Integration Business as presently
      conducted does not infringe, misappropriate or otherwise violate the
      rights of any third parties.  For purposes of this Agreement,
      the term “Encumbrances” shall
      mean any defect or imperfection in title, encumbrance, lien, pledge,
      security interest, charge, limitation, commitment or claim against or with
      respect to any Purchased Assets or other encumbrance of any kind or nature
      whatsoever (whether absolute or
contingent).

            

    

     

    
      	
               
      

            	
              8.4.

            	
              No
      Conflicts; Consents and Approvals.  The execution and
      delivery of this Agreement by Seller do not, and the consummation of the
      transactions contemplated hereby by Seller will not (i) violate or
      conflict with the constituent or organizational documents of Seller, or
      (ii) constitute a breach or default (or an event that with notice or lapse
      of time or both would become a breach or default) of any statute,
      regulation, judgment, order or decree or any mortgage, agreement, deed of
      trust, indenture or any other instrument to which Seller or any item of
      the Purchased Assets is bound, and neither the execution and delivery of
      this Agreement by Seller nor the consummation of the transactions
      contemplated hereby by Seller will require any consent, approval or
      authorization of, or filing with or notification to, any third party or
      any governmental or regulatory
authority.

            

    

     

    
      	
               
      

            	
              8.5.

            	
              Litigation,
      Disputes.  There is no (i) proceeding pending or, to the
      knowledge of Seller, threatened against or involving Seller, which (A)
      questions or challenges the validity of this Agreement or any action taken
      or to be taken by Seller pursuant to this Agreement or in connection with
      any of the transactions contemplated hereby or (B) could reasonably be
      expected to affect the Integration Business or any of the Purchased
      Assets, or (ii) outstanding order, injunction, decree, award or judgment
      of any governmental authority against Seller in relation to the
      Integration Business or the Purchased Assets which could reasonably be
      expected to affect the Integration Business or any of the Purchased Assets
      or otherwise result in any liability to Buyer on or after the Closing
      Date.

            

    

     

    
      
         

      

      
        Page
6

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              8.6.

            	
              No
      Fraudulent Conveyance.  Seller has used commercially
      reasonable efforts to market the Purchased Assets prior to the date
      hereof, and Seller believes in good faith that the Purchase Price,
      together with the assumption by Buyer of the Assumed Liabilities,
      represent reasonably equivalent value in exchange for the Purchased
      Assets.  Based on the foregoing, the consummation of the
      transactions contemplated by this Agreement will not constitute a
      fraudulent transfer or conveyance under federal bankruptcy and applicable
      state fraudulent transfer and fraudulent conveyance
  laws.

            

    

     

    
      	
               
      

            	
              8.7.

            	
              Payment
      of Integration Manufacturer Representatives.  Seller has
      paid all Integration Manufacturer Representatives in
  full.

            

    

     

    
      	
               
      

            	
              8.8.

            	
              Client
      Commitments.  All Goods and WIP Assets in inventory have
      been committed to purchase by Clients.  Seller shall indemnify
      Buyer, in accordance with Section 12.3 hereof,
      for product that is not sold through to such Clients unless the
      sell-through problem was caused directly by Buyer’s willful misconduct or
      gross negligence.

            

    

     

    
      	
               
      

            	
              8.9.

            	
              Existing
      Warranties.  The terms and conditions of all Existing
      Warranties are substantially the same as set forth in the form of Existing
      Warranty attached hereto as Schedule 8.9.

            

    

     

    
      	
            	
              8.10.

            	
              Existing
      Contracts.  Schedule 8.10
      attached hereto reflects a true and complete listing and enclosure of all
      Existing Contracts.

            

    

     

    9.           Representations
and Warranties of Buyer.  Buyer represents and warrants to
Seller as follows:

     

    
      	
               
      

            	
              9.1.

            	
              Organization
      of Buyer.  Buyer is a corporation duly formed, validly
      existing and in good standing under the laws of the Commonwealth of
      Virginia.

            

    

     

    
      	
               
      

            	
              9.2.

            	
              Authorization;
      Enforceability.  Buyer has all requisite power and
      authority to execute and deliver this Agreement and each other instrument
      required hereby to be executed and delivered by it, to perform its
      obligations hereunder and thereunder and to consummate the transactions
      contemplated hereby and thereby.  The execution and delivery by
      Buyer of this Agreement and each other instrument required hereby and
      thereby to be executed and delivered by it, the performance by Buyer of
      its obligations hereunder and thereunder and the consummation by Buyer of
      the transactions contemplated hereby and thereby have been duly and
      validly authorized by all necessary action on the part of Buyer, and no
      other proceedings on the part of Buyer are required to authorize this
      Agreement or any of the other instruments required hereby or thereby or
      for Buyer to consummate the transactions contemplated hereby or
      thereby.  This Agreement has been, and upon execution and
      delivery thereof by Buyer each other instrument described herein and
      therein and to be executed and delivered by Buyer, will be, duly and
      validly executed and delivered by Buyer and, assuming the due and valid
      authorization, execution and delivery by the other parties thereto,
      constitutes, or in the case of each such other instrument, will
      constitute, a valid and binding obligation of Buyer, enforceable against
      Buyer in accordance with their respective terms, except to the extent that
      enforceability may be limited by applicable bankruptcy, reorganization,
      insolvency, moratorium or other similar laws affecting the enforcement of
      creditors’ rights generally and by principles of equity regardless of
      whether such enforceability is considered in a proceeding in law or at
      equity.

            

    

     

    
      
         

      

      
        Page
7

        
          

        

      

      
         

      

    

     

    10.           Closing.

     

    
      	
            	
              10.1.

            	
              General.  The
      consummation of the purchase and sale of the Purchased Assets and
      transactions contemplated hereunder (“Closing”) shall be held
      on the first business day upon which the conditions set forth in Section 10.4 hereof
      have been satisfied or waived in writing (other than the conditions which
      are by their nature to be satisfied at Closing), unless another time or
      date, or both, are agreed to in writing by the parties (the “Closing Date”), by
      facsimile or portable document format (.pdf) transmission (and overnight
      mailing) of the signature pages to this Agreement and all ancillary
      agreements.  Buyer, on the one hand, and Seller, on the other
      hand, shall as soon as practicable thereafter deliver to the other party
      or such party’s counsel two original sets of signature pages to the
      documents and agreements executed at Closing.  Closing shall be
      effective for tax and accounting purposes as of 12:01 a.m. New York City
      time on the Closing Date.

            

    

     

    
      	
            	
              10.2.

            	
              Deliveries
      of Seller.  At Closing, Seller shall deliver to Buyer the
      Purchased Assets, free and clear of all Encumbrances, and the following
      documents:

            

    

     

    
      	
               
      

            	
              a.

            	
              the
      Bill of Sale attached hereto as Exhibit
      4 (the “Bill of
      Sale”), duly executed by
Seller;

            

    

     

    
      	
               
      

            	
              b.

            	
              the
      certificate required to be delivered pursuant to Section 10.4.a(iii)
      hereof; and

            

    

     

    
      	
               
      

            	
              c.

            	
              such
      other documents as may be reasonably requested by Buyer in connection with
      the consummation of the transactions contemplated by this
      Agreement.

            

    

     

    
      	
            	
              10.3.

            	
              Deliveries
      of Buyer.  At Closing, Buyer shall pay to Seller such
      part of the Purchase Price due at Closing and shall deliver to Seller the
      following documents:

            

    

     

    
      	
               
      

            	
              a.

            	
              an
      executed counterpart of the Bill of
Sale;

            

    

     

    
      
         

      

      
        Page
8

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              b.

            	
              the
      certificate required to be delivered pursuant to Section 10.4.b(iii)
      hereof; and

            

    

     

    
      	
               
      

            	
              c.

            	
              such
      other documents as may be reasonably requested by Seller in connection
      with the consummation of the transactions contemplated by this
      Agreement.

            

    

     

    
      	
            	
              10.4.

            	
              Conditions
      Precedent to Closing.

            

    

     

    
      	
               
      

            	
              a.

            	
              Conditions
      to Buyer’s Obligations.  The obligations of Buyer to
      consummate the transactions contemplated by this Agreement is subject to
      the satisfaction of the following conditions, any of which may be waived
      in writing by Buyer:

            

    

     

    
      	
               
      

            	
              (i)

            	
              Representations
      and Warranties of Seller.  The representations and
      warranties of Seller set forth in Section 8 hereof shall
      be true and correct in all material respects (except for any
      representation or warranty that by its terms is qualified by materiality,
      in which case it shall be true and correct in all respects) as of the date
      of this Agreement and as of the Closing Date as if made on and as of such
      dates.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Performance
      of Obligations of Seller.  Seller shall have performed
      and complied in all material respects with all agreements, covenants,
      obligations and conditions required by this Agreement to be performed or
      complied with by Seller on or prior to the Closing
  Date.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Closing
      Certificate.  Seller shall have delivered to Buyer a
      certificate, dated as of the Closing Date and signed on behalf of Seller
      by an appropriate senior officer, confirming the satisfaction by Seller of
      the conditions set forth in Sections 10.4.a(i) and
      10.4.a(ii)
      (without qualification as to knowledge or materiality or
      otherwise).

            

    

     

    
      	
               
      

            	
              (iv)

            	
              Closing
      Deliveries.  Seller shall have delivered to Buyer all
      documents required to be delivered pursuant to Section 10.2.

            

    

     

    
      	
               
      

            	
              (v)

            	
              No
      Injunctions; No Litigation.  No suit, action or other
      proceeding shall be pending before any court or governmental or regulatory
      authority which seeks to restrain or prohibit or to obtain damages or
      other relief in connection with this Agreement or the consummation of the
      transactions contemplated by this
Agreement.

            

    

     

    
      	
               
      

            	
              (vi)

            	
              Consents
      and Approvals.    All consents, waivers,
      authorizations and approvals legally required from all governmental or
      regulatory authorities to consummate the transactions contemplated by this
      Agreement, without the imposition of material conditions or requirements
      on Buyer, shall have been obtained and shall remain in full force and
      effect as of the Closing Date.

            

    

     

    
      
         

      

      
        Page
9

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              b.

            	
              Conditions
      to Seller’s Obligations.  The obligations of Seller to
      consummate the transactions contemplated by this Agreement is subject to
      the satisfaction of the following conditions, any of which may be waived
      in writing by Seller:

            

    

     

    
      	
               
      

            	
              (i)

            	
              Representations
      and Warranties of Buyer.  The representations and
      warranties of Buyer set forth in Section 9 hereof shall
      be true and correct in all material respects (except for any
      representation or warranty that by its terms is qualified by materiality,
      in which case it shall be true and correct in all respects) as of the date
      of this Agreement and as of the Closing Date as if made on and as of such
      dates.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Performance
      of Obligations of Buyer.  Buyer shall have performed and
      complied in all material respects with all agreements, covenants,
      obligations and conditions required by this Agreement to be performed or
      complied with by Buyer on or prior to the Closing
  Date.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Closing
      Certificate.  Buyer shall have delivered to Seller a
      certificate, dated as of the Closing Date and signed on behalf of Buyer by
      an appropriate senior officer, confirming the satisfaction by Buyer of the
      conditions set forth in Sections 10.4.b(i) and
      10.4.b(ii)
      (without qualification as to knowledge or materiality or
      otherwise).

            

    

     

    
      	
               
      

            	
              (iv)

            	
              Closing
      Deliveries.  Buyer shall have delivered to Seller all
      documents required to be delivered pursuant to Section 10.3.

            

    

     

    11.           Delivery
and Condition of the Purchased Assets.

     

    
      	
            	
              11.1.

            	
              Effective
      immediately upon Closing, Seller shall be deemed to have fully and
      completely transferred to Buyer all of Seller’s right, title and interest
      in and to the Purchased Assets.

            

    

     

    
      	
            	
              11.2.

            	
              EXCEPT
      AS EXPRESSLY STATED IN THIS AGREEMENT, SELLER DOES NOT MAKE ANY EXPRESS OR
      IMPLIED REPRESENTATIONS, STATEMENTS, WARRANTIES, OR CONDITIONS OF ANY KIND
      OR NATURE WHATSOEVER CONCERNING THE PURCHASED ASSETS, AND ANY AND ALL
      IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE
      ARE DISCLAIMED.

            

    

     

    
      
         

      

      
        Page
10

        
          

        

      

      
         

      

    

     

    12.           Survival;
Indemnification.

     

    
      	
            	
              12.1.

            	
              Survival
      of Representations and Warranties.  The representations
      and warranties of the parties in this Agreement shall survive Closing and
      the consummation of the transactions contemplated hereby, and shall expire
      upon the three (3) month anniversary of the Closing Date.  No
      claim may be made based upon an alleged breach of any of such
      representations or warranties, whether for indemnification in respect
      thereof or otherwise, unless written notice of such claim, in reasonable
      detail, is given by a party to the other party on or before the three (3)
      month anniversary of the Closing Date.  Notwithstanding the
      foregoing, the representations and warranties set forth in Sections 8.2 and 8.3 shall
      survive until expiration of the applicable statutes of
      limitation.  The right of any party to indemnification,
      reimbursement or other remedy based upon breaches of representations and
      warranties in this Agreement shall not be affected by any investigation
      conducted with respect to, or any knowledge of any party or person
      acquired at any time, whether before or after the execution and delivery
      of this Agreement or the Closing Date, with respect to, the accuracy or
      inaccuracy of or compliance with any such representation or
      warranty.

            

    

     

    
      	
            	
              12.2.

            	
              Indemnification
      by Buyer.  Buyer shall indemnify, defend and hold Seller
      harmless from and against any and all losses, liabilities, damages, costs
      and obligations (or actions or claims in respect thereof) (including
      reasonable counsel fees), which Seller may suffer or incur arising out of
      or based upon:

            

    

     

    
      	
               
      

            	
              a.

            	
              any
      breach of any of the representations or warranties made by Buyer in this
      Agreement or in any certificate or document signed or delivered by Buyer
      in connection with this Agreement;

            

    

     

    
      	
               
      

            	
              b.

            	
              any
      breach of any covenant or obligation of Buyer contained in this Agreement;
      or

            

    

     

    
      	
               
      

            	
              c.

            	
              the
      Assumed Liabilities.

            

    

     

    
      	
            	
              12.3.

            	
              Indemnification
      by Seller.  Seller shall indemnify, defend and hold Buyer
      harmless from and against any and all losses, liabilities, damages, costs
      and obligations (or actions or claims in respect thereof) (including
      reasonable counsel fees), which Buyer may suffer or incur arising out of
      or based upon:

            

    

     

    
      	
               
      

            	
              a.

            	
              any
      breach of any of the representations or warranties made by Seller in this
      Agreement or in any certificate or document signed or delivered by Seller
      in connection with this Agreement;

            

    

     

    
      	
               
      

            	
              b.

            	
              any
      breach of any covenant or obligation of Seller contained in this
      Agreement;

            

    

     

    
      	
               
      

            	
              c.

            	
              any
      matters described in Sections 6.4, 6.5 or 8.8 hereof;
      or

            

    

     

    
      
         

      

      
        Page
11

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              d.

            	
              the
      Excluded Liabilities.

            

    

     

    
      	
            	
              12.4.

            	
              Right
      of Set-Off.  Buyer shall first satisfy any amounts
      determined by an arbitration award or agreed by the parties to be owed to
      it by Seller pursuant to this Section 12 by way of
      set-off, and shall offset on a dollar-for-dollar basis, against any and
      all payments of the Earnout Amount otherwise due and payable to Seller
      pursuant to Section 2.1 hereof
      prior to seeking recovery against Seller for any remaining and unsatisfied
      amounts determined by an arbitration award or agreed by the parties to be
      owed by Seller pursuant to this Section 12.

            

    

     

    13.           Termination.

     

    
      	
            	
              13.1.

            	
              Events
      of Termination.  This Agreement may be terminated and the
      transactions contemplated hereby may be abandoned only as
      follows:

            

    

     

    
      	
               
      

            	
              a.

            	
              at
      any time prior to Closing by mutual written agreement of the
      parties;

            

    

     

    
      	
               
      

            	
              b.

            	
              by
      Buyer, if there shall be a material breach by Seller of any representation
      or warranty, or any covenant or agreement contained in this Agreement
      which would result in a failure of any condition set forth in Section 10.4 hereof and
      which breach cannot be cured or has not been cured within ten (10) days
      after the giving of written notice to Seller of such
    breach;

            

    

     

    
      	
               
      

            	
              c.

            	
              by
      Seller, if there shall be a material breach by Buyer of any representation
      or warranty, or any covenant or agreement contained in this Agreement
      which would result in a failure of any condition set forth in Section 10.4 hereof and
      which breach cannot be cured or has not been cured within ten (10) days
      after the giving of written notice to Buyer of such breach;
    or

            

    

     

    
      	
               
      

            	
              d.

            	
              by
      Buyer or Seller, if the Closing Date shall not have occurred on or before
      July 24, 2009; provided, however, that the right to terminate this
      Agreement under this Section 13.1.d shall
      not be available to any party whose willful breach of any obligation under
      this Agreement has been, directly or indirectly, the cause of, or has
      resulted in, the failure of  Closing to
  occur.

            

    

     

    
      	
            	
              13.2.

            	
              Rights
      upon Termination.  If this Agreement is terminated
      pursuant to Section 13.1, all
      further obligations of the parties under or pursuant to this Agreement
      shall terminate without further liability of either party to the other;
      provided, that nothing contained in this Section 13.2 shall
      relieve any party from liability for any willful breach of this Agreement;
      provided, further, that upon any termination of this Agreement pursuant to
      Section
      13.1, Buyer and
      Seller shall cause the Escrow Deposit to be released promptly to Buyer in
      accordance with the provisions of the Escrow
  Agreement.

            

    

     

    
      
         

      

      
        Page
12

        
          

        

      

      
         

      

    

     

    14.           Miscellaneous.

     

    
      	
            	
              14.1.

            	
              Notices.  Any
      notice required or permitted by this Agreement shall be in writing and
      effectively delivered for all purposes if delivered personally, by
      overnight delivery service, or by United States mail, certified mail,
      postage prepaid, return receipt requested, or via email with a receipt,
      and:

            

    

     

    
      
        	
                If
      directed to Seller:

              	
                SteelCloud,
      Inc.

                ADDRESS:
      13962 Park Center Road

                Herndon,
      VA 20171

                ATTN:
      Brian Hajost

                bhajost@steelcloud.com

              
	
                 

                If
      directed to Buyer:

              	
                 

                NCS
      Technologies, Inc.

                ADDRESS:
      9490 Innovation Drive

                Manassas,
      VA 20110

                ATTN:
      Mark Christopher

                mchristopher@ncst.com

              

      

    

     

    All notices shall be deemed delivered
upon receipt.

     

    
      	
            	
              14.2.

            	
              Brokers,
      Professional Fees and Expenses.  Buyer and Seller each
      warrants to the other that it has not engaged, consented to, or authorized
      any broker, investment banker, or other third party to act on its behalf,
      directly or indirectly, as a broker or finder in connection with the
      transactions contemplated by this Agreement and no such third party is
      entitled to any fee or compensation in connection with this Agreement or
      the transactions contemplated hereby by reason of any action of
      it.  Except as otherwise provided in this Agreement, Seller and
      Buyer shall bear their own expenses, including professional and legal
      fees, incurred in connection with the negotiation and execution of this
      Agreement and each other agreement, document and instrument contemplated
      by this Agreement and the consummation of the transactions contemplated
      hereby and thereby.  Seller shall bear all transfer, sales, use,
      excise, recording and similar taxes, if any, arising in connection with
      the transactions contemplated hereunder, and Seller shall compensate
      Bengur Bryan & Co. for any services provided to Seller relating to
      this transaction.

            

    

     

    
      	
            	
              14.3.

            	
              Amendment
      and Modification.  This Agreement may be amended,
      modified or supplemented only by written agreement of Buyer and
      Seller.

            

    

     

    
      	
            	
              14.4.

            	
              Severability.  Any
      provision of this Agreement that shall be prohibited or unenforceable
      shall be deemed ineffective to the extent of such prohibition or
      unenforceability without invalidating the remaining provisions
      hereof.

            

    

     

    
      
         

      

      
        Page
13

        
          

        

      

      
         

      

    

     

    
      	
            	
              14.5.

            	
              Entire
      Agreement.  This Agreement sets forth all of the
      promises, covenants, agreements, conditions and undertakings between the
      parties hereto with respect to the subject matter hereof, and supersedes
      all prior and contemporaneous agreements and undertakings, inducements or
      conditions, express or implied, oral or
written.

            

    

     

    
      	
            	
              14.6.

            	
              Relationship
      of Parties.  Nothing in this Agreement shall constitute
      or be deemed to constitute a partnership or joint venture between the
      parties hereto or constitute Buyer as an agent or representative of Seller
      for any purpose other than as, and solely to the extent, expressly set
      forth in Section
      5
      hereof.

            

    

     

    
      	
            	
              14.7.

            	
              Governing
      Law and Dispute Resolution.  This Agreement shall be
      governed by and construed in accordance with the laws of the Commonwealth
      of Virginia.  Any dispute arising from or relating to this
      Agreement, which dispute cannot be resolved by good faith negotiation of
      the parties, shall be resolved by arbitration by one arbitrator selected
      by the parties.  If the parties cannot agree on an arbitrator
      within fifteen (15) days of demand by either party for arbitration, the
      parties agree to arbitrate under the rules of the American Arbitration
      Association, before a single arbitrator.  The award of the
      arbitrator is binding and the arbitrator may apportion costs and
      attorneys’ fees as it deems appropriate.  An award of the
      arbitrator may be entered as a judgment of the court having jurisdiction
      over the matter.

            

    

     

    
      	
            	
              14.8.

            	
              Counterparts.  This
      Agreement may be executed in one or more counterparts all of which when
      taken together constitute one and the same instruments. A signed
      counterpart is as binding as an
original.

            

    

     

    
      	
            	
              14.9.

            	
              Exhibits.  All
      Exhibits are attached to and by this reference made a part of this
      Agreement.

            

    

     

    
      	
            	
              14.10.

            	
              Binding
      Effect.  This Agreement shall be binding upon and inure
      to the benefit of the parties hereto, their successors and
      assigns.  No party may assign this Agreement or assign or
      delegate any of its rights, interests or obligations hereunder without the
      prior written approval of the other party
  hereto.

            

    

     

     

    [Signature page
follows]

     

    
      
         

      

      
        Page
14

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have executed this Asset Purchase Agreement as of the date and
year first above written.

     

    

    
      
        
          
            	
                    SELLER:

                  	
                    BUYER:

                  
	 	 
	
                    STEELCLOUD,
      INC.

                     

                    By:
      /s/ Brian
      Hajost                                            

                    Name:
      Brian Hajost

                    Title:
      President and CEO

                  	
                    NCS
      TECHNOLOGIES, INC.

                     

                    By:
      /s/ An Van
      Nguyen                                        

                    Name:
      An Van Nguyen

                    Title:
      President

                  

          

        

      

    

     

    
      
         

      

      
        Page
15

        
          

        

      

      
         

      

    

     

    EXHIBIT
1

     

    PURCHASED
ASSETS

     

     

    Purchased
Assets includes, collectively, certain tangible property relating to the
Integration Business as follows:

     

    (A) the
Goods and WIP Assets (finished goods, work in progress and components) as
follows:

     

    [Insert
list.]; and

     

    (B) the
Service Inventory Assets (service inventory) as follows:

     

    [Insert
list.]; and

     

    the
following intangible property: all right, title and interest of Seller, if any,
under leases of personal property and equipment, intellectual property
(including, without limitation, trademarks, trade names, and service marks),
insurance policies, customer lists, goodwill and other intangible property
related to the Integration Business, but excluding all
other assets of Seller and specifically excluding: (i) cash; (ii) any
accounting-related books and records, whether written or electronically
recorded; (iii) causes of action not related to the Purchased Assets; (iv)
contingent and unliquidated claims of Seller of every nature including tax
refunds, counterclaims, and rights to set off claims including those related to
the Purchased Assets; (v) tooling and associated equipment, including that
related to the Purchased Assets; (vi) deposits; (vii) trade accounts receivable;
and (viii) any interests in real property.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
2

     

    LIST
OF CLIENTS

     

     

    [Insert
list of existing Integration Business clients and prospects with respect to
which Seller has had verifiable contact regarding the Integration Business
within the six-month period immediately preceding the Closing
Date.]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
3

     

    CONSIGNED
FILTER INVENTORY

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	
                                                Filter Inventory

                                              	 	
                                                Quantity

                                              	 	
                                                Per Item Price Payable to
      Seller

                                              

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT
4

     

    BILL
OF SALE

     

    This BILL OF SALE dated July [___],
2009 (the “Bill of
Sale”) is executed and delivered pursuant to that certain Asset Purchase
Agreement, dated July [10th], 2009
(the “Purchase
Agreement”), by and between SteelCloud, Inc., a Virginia corporation
(“Seller”), and NCS
Technologies, Inc., a Virginia corporation (“Buyer”).  Capitalized
terms not otherwise defined in this Bill of Sale have the meanings ascribed to
them in the Purchase Agreement.

    

    Pursuant to the Purchase Agreement, for
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged (including as set forth in the Purchase Agreement), effective as of
12:01 a.m. New York City time on the date hereof, Seller hereby sells, conveys,
assigns, transfers and delivers to Buyer, and Buyer hereby purchases and
acquires from Seller, all of Seller’s right, title and interest in and to the
Purchased Assets, free and clear of all Encumbrances.

    

    To the extent any terms and provisions
of this Bill of Sale are in any way inconsistent with or in conflict with any
term, condition or provision of the Purchase Agreement, the Purchase Agreement
shall govern and control.

    

    This Bill of Sale shall be governed by
and construed in accordance with the laws of the Commonwealth of Virginia,
without regard to the conflicts of laws principles or rules
thereof.

    

    This Bill of Sale may be executed in
one or more counterparts, each of which will be deemed to be an original copy of
this Bill of Sale and all of which, when taken together, will be deemed to
constitute one and the same instrument.

    

    [Signature page
follows]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have caused this Bill of Sale to be executed and delivered on the
date first above written.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 
      	
                                      SELLER:

                                    
	 
      	 
      	 
      
	 
      	
                                      STEELCLOUD,
      INC.

                                    
	 
      	 
      	 
      
	 
      	
                                      By:

                                    	 
	 
      	
                                      Name:

                                    	
                                      Brian
      Hajost

                                    
	 
      	
                                      Title:

                                    	
                                      President
      and CEO

                                    
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                                      BUYER:

                                    
	 
      	 
      	 
      
	 
      	
                                      NCS
      TECHNOLOGIES, INC.

                                    
	 
      	 
      	 
      
	 
      	
                                      By:

                                    	 
	 
      	
                                      Name:

                                    	
                                      An
      Van Nguyen

                                    
	 
      	
                                      Title:

                                    	
                                      PresidentASSET PURCHASE AND
INTELLECTUAL

     

    PROPERTY ASSIGNMENT
AGREEMENT

     

    This
Asset Purchase and Assignment Agreement (this “Agreement”) dated as
of July 10, 2009 (the “Effective Date”) is
by and between MyoCardioCare, Inc., a Delaware corporation (“MCC”), and Biophan
Technologies, Inc., a Nevada corporation (“BIOPHAN”).  MCC and BIOPHAN
are individually a “Party”, and together
are the “Parties,” to this
Agreement.

     

    WHEREAS,
MCC has determined that it is in its business interest to acquire certain Assets
and Intellectual Property of BIOPHAN and BIOPHAN has determined it is in its
business interest to sell such Assets and Intellectual Property to
MCC.

     

    NOW
THEREFORE, in consideration of the mutual covenants and agreements set forth
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as
follows:

     

    1.           DEFINITIONS.  As
used herein, the following terms will have the following meanings:

     

    “Action” means any
Claim, action, cause of action or suit (whether in contract or tort or
otherwise), litigation (whether at law or in equity, whether civil or criminal),
controversy, assessment, arbitration, investigation, hearing, charge, complaint,
demand, patent interference, opposition, Third Party requested patent
re-examination, notice or proceeding, in each case, to, from, by or before any
Governmental Authority.

     

    “Affiliate” of a
specified person (natural or juridical) means a person that now or hereafter
directly, or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, the person
specified.  “Control” shall mean ownership of more than 50% of the
shares of stock entitled to vote for the election of directors in the case of a
corporation, and more than 50% of the voting power in the case of a business
entity other than a corporation.

     

    “Ancillary Agreements”
means any agreements, certificates, instruments and documents executed and
delivered pursuant to any of Sections 3.3 of this Agreement.

     

    “Assigned Assets”
means the Tangible Assets, Tangible Materials, Books and Records, and Assigned
Intellectual Property Rights.

     

    “Assigned Intellectual
Property Rights” means all Intellectual Property of BIOPHAN  as
of the Closing date  which are necessary to practice the Technology,
including, but not limited to, the Assigned Patent Rights.

     

    “Assigned Patent
Rights” means (a) the Patent Rights related to the patents set forth on
Schedule 1 hereto; and (b) all counterpart Patent Rights of any of the Patent
Rights in subpart (a).

     

    “BIOPHAN” is defined
in the Preamble to this Agreement.

     

    “BIOPHAN Disclosure
Schedule” is defined in the Preamble to Article 4 of this
Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    "BIOPHAN Field" means
any technology related to the direct mechanical ventricular actuation
technology for mechanical support of the heart.

     

    “Books and Records”
means all records and lists of BIOPHAN related solely to the Assigned Assets
including: all analysis reports, marketing reports and creative material
pertaining to the Assigned Assets, all records relating to past or present
customers, suppliers or personnel of BIOPHAN (including potential customers
lists, mailing address lists, e-mail address lists, recipient lists,
correspondence with potential customers, supply lists and records of purchases
from and correspondence with suppliers and any other written or electronic
identifiable data relating to past or present customers or suppliers of BIOPHAN
with regard to the Assigned Assets which has been created by BIOPHAN or its
representatives, agents or employees), all records relating to all product,
business and marketing plans of BIOPHAN as they related to the
Technology.

     

    “Business Day” means
any weekday other than a weekday on which banks located in Rochester, New York
are authorized or required to be closed.

     

    “Claim” means any
assertion of right whatsoever (including those arising from debts, bonds,
promises, damages, equitable claims and judgments), whether liquidated or
unliquidated, known or unknown, fixed or contingent, direct or indirect, or
imputed.

     

    “Closing” is defined
in Section 3.3 (Closing Time and Place).

     

    “Code” is defined in
Section 3.1 (Payments).

     

    “Confidential
Information” means (i) the non-public information in this Agreement, and
the Ancillary Agreements; (ii) the details of the discussions and drafts leading
up to the execution of this Agreement or the Ancillary Agreements; and (iii) any
information or compilation of information of one of the Parties hereto (the
“Disclosing
Party”) which becomes known to another Party (the “Receiving Party”)
that is not generally known to the public, including trade secrets, whether
disclosed before or after the date of this Agreement, excluding information
which:

     

    (a)           was
already in the possession of the Receiving Party prior to the Receiving Party’s
receipt from the Disclosing Party (provided that the Receiving Party is able to
provide the Disclosing Party with reasonable documentary proof thereof and, if
received from a third party, that such information was acquired without breach
of a confidentiality or non-disclosure obligation related to such
information);

     

    
      (b)           is
or becomes a matter of public knowledge through no act of the Receiving Party or
its Affiliates or Representatives in violation of this Agreement;

       

      (c)           is
disclosed to the Receiving Party or its Affiliates on a nonconfidential basis by
a Third Party who lawfully obtained such information and is under no obligation
to maintain the confidentiality of such information; or

       

      (d)           has
been independently developed by the Receiving Party without breach of this
Agreement or use of any Confidential Information of the Disclosing Party
(provided that the Receiving Party is able to provide the Disclosing Party with
reasonable documentary proof thereof).

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
    

    Information
meeting the above definition shall be treated as Confidential Information
regardless of its source, and all information identified as being “confidential”
or “trade secret” or labeled with words of similar import shall be presumed to
be Confidential Information.  Confidential Information includes
information being held in confidence by a Disclosing Party for the benefit of a
third party.

     

    “Consents” is defined
in Section 4.3 (Consents).

     

    “Contractual
Obligation” means, with respect to any Person, any legal, valid and
binding contract, agreement, deed, note, debenture, warrant, option, mortgage,
lease, license, commitment, promise, undertaking, arrangement or understanding,
whether written or oral, or other document or instrument to which or by which
such Person is a party or otherwise subject or bound or to which or by which any
property, business, operation or right of such Person is subject or bound, in
each case as amended or otherwise modified and in effect.

     

    “Disclosing Party” is
defined in “Confidential Information.”

     

    “Dispute” means any
dispute, controversy, Action, or other issue relating to or arising under or in
connection with this Agreement or any of the Ancillary Agreements, their subject
matter, or their formation, interpretation, performance or breach, including
fraud in the inducement and the validity, scope and enforceability of the
Agreement.

     

    “Effective Date” is
defined in the Preamble.

     

    “Encumbrance” means
any interest relating to or arising out any lien, license, covenant not to sue,
option, pledge, security interest, mortgage, right of first offer or first
refusal, buy/sell agreement and any other restriction or covenant with respect
to, or condition governing the use, construction, transfer, receipt of income or
exercise of any other attribute of legal or equitable ownership.

     

    “Exploit” means make,
have made, use, import, export, offer to sell, sell or otherwise dispose
of.  “Exploited,” “Exploitation” and
other variants or variations of the word “Exploit” shall have correlative
meanings.

    “Field” means use of
Technology in or for any product or application.

     

    “Filings” is defined
in Section 4.3 (Consents).

     

     “Governmental
Authority” means any United States federal, state or local or any foreign
government, or political subdivision thereof, or any multinational governmental
organization or authority or any governmental authority, agency or commission in
each case entitled to exercise any administrative, executive, judicial,
legislative, police, regulatory or taxing authority or power, any court or
tribunal (or any department, bureau or division thereof), or any arbitrator or
arbitral body.

     

    “Governmental Order”
means any order, writ, judgment, injunction, decree, stipulation, ruling,
determination or award entered by or with any Governmental Authority, but
excluding any action or inaction in the course of the ex parte preparation or
prosecution of any Patent Right and any order, writ, judgment, injunction,
decree, stipulation, ruling, determination or award of general
applicability.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Indemnified Party”
means a Person to whom indemnification is provided under this
Agreement.

     

    “Indemnifying Party”
means a Person providing indemnification under this Agreement.

     

    “Intellectual
Property” means all forms of intellectual property in any jurisdiction
and under any law, whether now or hereafter existing, including (a) inventions,
discoveries, patent applications, patents (including letters patent, industrial
designs, and inventor’s certificates), design registrations, invention
disclosures, and applications to register industrial designs, and any and all
rights to any of the foregoing anywhere in the world, including any
provisionals, substitutions, extensions, supplementary patent certificates,
reissues, re-exams, renewals, divisions, continuations, continuations in part,
continued prosecution applications, and other similar filings or notices
provided for under the laws of the United States or of any other country; and
(b) trade secrets and other confidential or non-public technical information,
including ideas, formulas, compositions, inventor’s notes, discoveries,
improvements, concepts, know-how, manufacturing and development information,
data resulting or derived from research activities, Inventions, invention
disclosures, unpatented blue prints, drawings, specifications designs, plans,
proposals and technical data.

     

    “Invention” means any
invention, discovery, know-how, trade secret, data, information, technology,
process or concept, whether or not patented or patentable, and whether or not
memorialized in writing.

     

     

     “Instruments of
Assignment” means those documents and instruments necessary for Biophan
to effect the sale, conveyance, assignment, transfer and delivery of the
Acquired Assets to MCC or its designees, including assignment and assumption
agreements, bills of sale and other documents of assignment and transfer, all in
form and substance reasonably satisfactory to MCC, each in recordable form to
the extent necessary to duly assign such rights to MCC.

     

    “Legal Requirement”
means any United States federal, state or local or foreign law, statute,
standard, ordinance, code, rule, regulation, resolution or promulgation, or any
Governmental Order, or any license, franchise, permit or similar right granted
under any of the foregoing, or any similar provision having the force or effect
of law.

     

    “Liability” means,
with respect to any Person, any liability or obligation of such Person whether
known or unknown, whether asserted or unasserted, whether determined,
determinable or otherwise, whether strict, absolute or contingent, whether
accrued or unaccrued, whether liquidated or unliquidated, whether incurred or
consequential, whether due or to become due and whether or not required under
U.S. generally accepted accounting principles to be accrued on the financial
statements of such Person.

     

    “Losses” means all
Actions, Claims, Liabilities, damages, judgments, amounts paid in settlement,
assessments, Taxes, losses, fines, penalties, expenses, costs and fees
(including reasonable attorneys’ fees), and amounts, costs and reasonable
attorneys’ fees associated with seeking indemnification hereunder.

     

    “MCC” is defined in
the Preamble.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     “Notices” is defined
in Section 4.3 (Consents).

     

    “Organizational
Documents” means, with respect to any Person (other than an individual),
(a) the certificate or articles of incorporation or organization and any joint
venture, limited liability company, operating or partnership agreement, trust
agreement and instrument and other similar documents adopted or filed in
connection with the creation, formation or organization of such Person and (b)
all by laws, voting, agreements and similar documents, instruments or agreements
relating to the organization or governance of such Person, in each case as
amended or supplemented.

     

    “Party” and “Parties” are defined
in the Preamble.

     

    “Patent Rights” means
(i) any and all U.S. and foreign:  (a) patents (including utility and
design patents); (b) patent applications (including utility and design patent
applications), including all provisional applications, substitutions,
continuations, continuations-in-part, divisions, renewals, and all patents
granted thereon; and (c) patents-of-addition, reissues, reexaminations and
extensions or restorations by existing or future extension or restoration
mechanisms, including supplementary protection certificates or the equivalent
thereof, (d) patent rights obtained from Third Parties through an interference
proceeding based upon any patent or application in (a)-(c),and (ii) any other
form of government-issued right substantially equivalent to any of the foregoing
now or hereafter recognized including, for example, statutory invention
disclosures or the like.

    “Payment” is defined
in Section 3.1 (Payments).

     

     “Person” means any
individual or corporation, association, partnership, limited liability company,
joint venture, joint stock or other company, business trust, trust,
organization, Governmental Authority or other entity of any kind.

     

     “Receiving Party” is
defined in “Confidential Information.”

     

    “Representative”
means, with respect to any Person, any director, officer, employee, agent,
consultant, advisor, partner, trustee or other representative of such Person,
including legal counsel, accountants and financial advisors.

     

    “Tangible Assets”
means the assets set forth on Schedule 2.

     

    “Tangible Materials”
means documents, files (including electronic files), diagrams, drawings, plans,
specifications, designs, schematics, records, reports, lab or research
notebooks, drawings, flow charts, specifications, written descriptions,
invention disclosures, source code, data, photographs of three-dimensional
prototypes and models, or other written, graphic or tangible materials or
embodiments (other than three-dimensional prototypes and models) relating to the
Assigned Patents, and all correspondence and files relating to the prosecution
of the Assigned Patents, in each case, within the possession, custody or control
of BIOPHAN or its Affiliates.

     

    “Tax” or “Taxes” means any and
all federal, state, local or foreign income, gross receipts, license, payroll,
employment, excise, severance, stamp, occupation, premium, windfall profits,
capital stock, franchise, profits, withholding, social security (or similar,
including FICA), unemployment, disability, real property, personal property,
sales, use, transfer, registration, value added, alternative or add-on minimum,
estimated or other tax of any kind, including any interest, penalty or addition
thereto, whether disputed or not.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Technology” means any
technology related to the direct mechanical ventricular actuation technology for
mechanical support of the heart.

     

    “Third Party” means
any Person other than the Parties and their Affiliates.

     

    “Third Party Claim”
means any Claim by a Third Party with respect to any matter that may give rise
to a Claim for indemnification under this Agreement.

     

    
      	
              2.

            	
              ASSIGNMENT,
      LICENSES AND COVENANTS NOT TO SUE.

            

    

     

    2.1           Assigned
Assets.  Effective as of the Closing, subject to the terms of
this Agreement, BIOPHAN hereby sells, conveys, assigns and transfers to MCC all
its interests in and to the Assigned Assets, together with the right to sue and
collect for past infringement.  MCC accepts the Assigned Assets, provided, that MCC does not
assume any liabilities or obligations of BIOPHAN related to the Assigned Assets
except as set forth in this Agreement.

     

    
      	
              3.

            	
              PAYMENTS;
      CLOSING.

            

    

     

    3.1           Payments.  MCC
shall pay the following to BIOPHAN in exchange for the rights granted
hereunder:

     

    (a)           In
exchange for the Assigned Assets MCC shall pay BIOPHAN as follows (the “ Cash
Consideration”):

     

    (i) at
the Closing, MCC shall pay BIOPHAN One Hundred Thousand Dollars ($100,000) (the
“Closing Payment”);

     

    (ii) on
the date that is the earlier of either (y) twelve (12) months  from
the date from Closing or (z) upon MCC’s closing of a financing that is in the
aggregated in amount equal to or greater than $3 million, MCC shall pay BIOPHAN
One Hundred Fifty Thousand Dollars ($150,000).

     

    (b)           BIOPHAN
shall be issued 3,000,000 shares of MCC common stock with a par value of $.001,
which is equal to a 20% equity position in MCC.

    

    (c)           BIOPHAN
and MCC shall also enter into a Stock Holder Rights agreement whereby BIOPHAN
shall have certain rights relating to participation in future financing and sale
of its shares in an initial public offering.

    

     

    3.2           Method of
Payment.  Payments of the Cash Consideration shall be made by
wire transfer to an account designated by BIOPHAN.  The amounts
payable hereunder shall be paid in United States dollars.

     

    3.3           Closing Time and
Place.  The Closing of the purchase and sale of the Assigned
Assets and the transactions contemplated by the Ancillary Agreements (the “Closing”) shall take
place within three (3) Business Days after all of the conditions to closing set
forth in this Section 3.3 shall have been satisfied or waived by MCC in
writing.  At the Closing, MCC shall make the Closing
Payment.  Notwithstanding anything to the contrary herein, MCC’s
obligation to proceed to the Closing shall be conditioned on the
following:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a)           All
permissions, releases, Consents or approvals, governmental or otherwise,
necessary on the part of BIOPHAN to consummate the transactions contemplated
this Agreement shall have been obtained;

     

     (b)           There
shall not have been issued and be in effect any order, decree or judgment of or
in any court or tribunal of competent jurisdiction which makes the consummation
of the transactions contemplated hereby illegal;

     

     (c)           BIOPHAN
has agreed provide advisory and consulting services to MCC related to the
Technology. These advisory and consulting services shall be at no cost to MCC
for a period of thirty (30) Business Days following Closing;

     

    (d)           MCC
shall have received from BIOPHAN such Instruments of Assignment and other
instruments sufficient to convey, transfer and assign to MCC all right, title
and interest in the Assigned Assets, free and clear of all Encumbrances, all in
form and substance reasonably satisfactory to MCC and its counsel;

     

    3.4           Termination of
Closing. The respective obligations of the Parties to consummate the
Closing may be terminated and abandoned at any time at or before the Closing
only as follows:

     

    (a)           By
and at the option of MCC if the Closing shall not have occurred within 30 days
from the date hereof; provided that MCC shall not have breached in any material
respect its obligations under this Agreement in any manner that shall have been
the proximate cause of, or resulted in, the failure to consummate the
Closing.

     

    (b)           By
and at the option of BIOPHAN if the Closing shall not have occurred within 30
days from the date hereof; provided that BIOPHAN shall not have breached in any
material respect its obligations under this Agreement in any manner that shall
have been the proximate cause of, or resulted in, the failure to consummate the
Closing.

     

    (c)           At
any time, without liability of any party to the others, upon the mutual written
consent of BIOPHAN and MCC.

     

    
      	
              4.

            	
              BIOPHAN’S
      REPRESENTATIONS AND WARRANTIES.

            

    

     

    BIOPHAN
represents and warrants to MCC that the statements contained in this Section 4
are true, correct and complete as of the date hereof and as of the Closing,
except as set forth in the BIOPHAN’s disclosure schedule accompanying this
Agreement (the “BIOPHAN Disclosure Schedule”).  The BIOPHAN Disclosure
Schedule will be arranged in paragraphs corresponding to the lettered and
numbered paragraphs contained in this Section 4.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.1             Authorization.  BIOPHAN
is a Nevada company duly organized, validly existing and in good standing under
the laws of the State of Nevada.  BIOPHAN has the full corporate power
and authority to execute and deliver this Agreement and each Ancillary Agreement
to which it is a party and to perform its respective obligations under this
Agreement and under each such Ancillary Agreement.  All corporate
actions or proceedings to be taken by or on the part of BIOPHAN to authorize and
permit the execution and delivery by BIOPHAN of this Agreement and each of the
Ancillary Agreements to which it is a party and to perform its respective
obligations under this Agreement and under such Ancillary Agreements have been
duly taken.  This Agreement has been duly executed and delivered by
BIOPHAN and constitutes the legal, valid and binding obligation of BIOPHAN,
enforceable in accordance with its terms and conditions subject to bankruptcy,
insolvency, reorganization, moratorium and other similar laws of general
application affecting the rights and remedies of creditors and to general
principles of equity.  Each of the Ancillary Agreements to which
BIOPHAN is a party will be, as of the Closing, duly executed and delivered by
BIOPHAN and will constitute, as of the Closing, the legal, valid and binding
obligation of BIOPHAN, enforceable in accordance with its terms and conditions
subject to bankruptcy, insolvency, reorganization, moratorium and other similar
laws of general application affecting the rights and remedies of creditors and
to general principles of equity.

    4.2           Noncontravention.  Neither
the execution and delivery of this Agreement and the Ancillary Agreements nor
the consummation of the transactions contemplated hereby and thereby by BIOPHAN
will (i) conflict with or result in a breach of or default under the
Organizational Documents of BIOPHAN, (ii) violate any material Legal Requirement
to which any of BIOPHAN or its Affiliates or any of their assets or property is
subject, (iii) conflict with or result in a breach of, default under, right to
accelerate payment under or obligation to make any payment pursuant to or loss
of material rights under, or modify or terminate any material Contractual
Obligation by which BIOPHAN or its Affiliates or any of their assets or property
is bound or subject, (iv) result in the creation or imposition of any
Encumbrance upon or forfeiture of any of the Assigned Patent Rights, or (v)
result in the creation of any Claim that could result in the creation or
imposition of any Encumbrance upon or forfeiture of any of the Assigned Patent
Rights.

     

    4.3           Consents.  No
approval, authorization, permit, license, waiver or consent is required from any
Third Party (including any Governmental Authority) (collectively, the “Consents”) and no
filing or notice is required to be made with or given to any Third Party
(including any Governmental Authority) (respectively, the “Filings” and the
“Notices”) for
BIOPHAN and its Affiliates to accomplish the transactions contemplated by this
Agreement and the Ancillary Agreements.

     

    4.4           Litigation. There is
no Action pending or, to the Knowledge of BIOPHAN, threatened against or
involving any of BIOPHAN or its Affiliates that could adversely affect (i) the
Assigned Intellectual Property Rights or (ii) the ability of BIOPHAN or its
Affiliates to consummate the Closing or perform any obligations under this
Agreement or the Ancillary Agreements.  For purposes of this Section 4.4,
threatened Actions shall include requests for interference, Third Party requests
for re-examination and requests for oppositions.

     

    4.5           Title.  BIOPHAN
owns, and as of the Closing shall own, all rights, title and interests in and to
the Assigned Assets and has the full right and power to assign good title to the
Assigned Assets, in each case free and clear of all Encumbrances and all
Claims.  There is no agreement granting rights under the Assigned
Assets or imposing obligations with respect to the Assigned Assets.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.6           Intellectual
Property.

     

    (a)           Completeness.  The
Assigned Intellectual Property Rights listed on Schedule 1 include all Patent
Rights in which BIOPHAN or any of its Affiliates has any right, title or
interest in the Technology, including without limitation any rights under
licenses.  BIOPHAN has provided MCC with correct and complete copies
of all such Patent Rights.

     

    (b)           Representations Regarding
Intellectual Property.   With respect to each patent and
patent application included within the Assigned Intellectual Property
Rights:

     

    (i)           each
issued, unexpired patent: (a) is, to the knowledge of BIOPHAN, valid and
enforceable;  and (b) has been properly obtained in accordance with
all applicable rules and regulations governing the prosecution of applications
for such patent, and BIOPHAN and its Affiliates and their Representatives have
not engaged in any fraud or other misconduct with regard to the prosecution or
procurement of such patent;

     

    (ii)           no
claim has been asserted or threatened by any person, with respect to the use of
the Assigned Intellectual Property Rights or challenging or questioning the
validity or effectiveness of any license or agreement with respect thereto, and,
to the knowledge of BIOPHAN, no valid basis for any such claim
exists;

     

    (iii)           to
the knowledge of BIOPHAN, no person, business or products has infringed, misused
or misappropriated the Assigned Intellectual Property Rights or currently is
infringing, misusing or misappropriating any such rights, and to the knowledge
BIOPHAN, neither the use of the Assigned Intellectual Property Rights, nor the
manufacture, marketing, distribution, use or sale of any product or service
currently under development by BIOPHAN, infringes on the Intellectual Property
of any person in a manner;

     

    (iv)           for
each issued, unexpired patent or pending patent application, in all material
respects, (A) all necessary application, annuity, maintenance and renewal fees
in connection with all patent and patent applications have been paid and (B) all
necessary documents and certificates in connection therewith have been filed
with the relevant authority for the purpose of maintaining the patent
registrations or applications; and

     

    (v)           no
issued, unexpired patent is undergoing cancellation, re-examination, termination
or withdrawal proceedings.

     

    
      	
              5.

            	
              MCC’S
      REPRESENTATIONS AND WARRANTIES.

            

    

     

    MCC
represents and warrants to BIOPHAN that the statements contained in this Section
5 are true and correct as of the date hereof and on the Closing
date.

     

    5.1           Organization.  MCC
is a Delaware corporation duly incorporated, validly existing and in good
standing under the laws of the State of Delaware.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.2           Authorization.  MCC
has the full corporate power and authority to execute and deliver this Agreement
and each Ancillary Agreement to which it is a party and to perform its
respective obligations under this Agreement and under each such Ancillary
Agreement.  All corporate actions or proceedings to be taken by or on
the part of MCC to authorize and permit the execution and delivery by MCC of
this Agreement and each of the Ancillary Agreements to which it is a party and
to perform its respective obligations under this Agreement and under such
Ancillary Agreements have been duly taken.  This Agreement has been
duly executed and delivered by MCC and constitutes the legal, valid and binding
obligation of MCC, enforceable in accordance with its terms and conditions
subject to bankruptcy, insolvency, reorganization, moratorium and other similar
laws of general application affecting the rights and remedies of creditors and
to general principles of equity.  Each of the Ancillary Agreements to
which MCC is a party will be, as of the Closing, duly executed and delivered by
MCC and will constitute, as of the Closing, the legal, valid and binding
obligation of MCC, enforceable in accordance with its terms and conditions
subject to bankruptcy, insolvency, reorganization, moratorium and other similar
laws of general application affecting the rights and remedies of creditors and
to general principles of equity.

     

    5.3           Noncontravention.  Neither
the execution and delivery of this Agreement and the Ancillary Agreements nor
the consummation of the transactions contemplated hereby and thereby by MCC will
(i) conflict with or result in a breach of or default under the Organizational
Documents of MCC, or (ii) violate any material Legal Requirement to which MCC or
any of its assets or property is subject.

     

    5.4           Consents.  No
Consents, Filings or Notices are required for MCC to accomplish the transactions
contemplated by this Agreement and the Ancillary Agreements.

     

    5.5           No Other Representations and
Warranties.  Except as expressly set forth in Section 5 of this
Agreement, MCC makes no representation or warranty, express or implied, at law
or in equity with respect to this Agreement, or otherwise.

     

    
      	
              6.

            	
              COVENANTS.

            

    

     

    6.1           Closing.  Subject
to the terms and conditions of this Agreement, each of the Parties will use its
commercially reasonable efforts to take, or cause to be taken, all actions and
to do, or cause to be done, all things necessary, proper or advisable in order
to consummate and make effective the transactions contemplated by this
Agreement.

    6.2           Protection of the Subject
Intellectual Property.  From the Effective Date until the
Closing, BIOPHAN shall, and shall cause its Affiliates and Representatives
to:

     

    (i)           use
commercially reasonable efforts to preserve and to maintain and protect their
rights, title and interests in and to the Assigned Intellectual Property
Rights;

     

    (ii)           use
commercially reasonable efforts to pay or otherwise satisfy all of its and their
respective Liabilities in respect of the Assigned Intellectual Property Rights;
and

     

    (iii)           comply
with all Legal Requirements applicable to the Assigned Intellectual Property
Rights.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.3           Further
Assurances.  From time to time upon request by MCC, BIOPHAN
will, and will cause its Affiliates to, execute, acknowledge and deliver, or
will cause to be done, executed, acknowledged and delivered, all such further
acts, deeds, assignments, transfers, license grants, conveyances, powers of
attorney, and assurances that may be required to carry out the purposes of this
Agreement.  Without limiting the foregoing, following the Closing,
BIOPHAN shall take such further actions that are reasonably necessary to
accomplish the complete transfer and assignment of BIOPHAN’s rights, title and
interests in and to the Assigned Intellectual Property Rights to MCC. During the
period between the Effective Date and the Closing, BIOPHAN will notify MCC in
writing within five (5) Business Days after BIOPHAN becomes aware that any
interference is declared involving any of the Assigned Patent
Rights.

     

    6.4           Third Party
Actions.  Except as agreed to by the Parties in writing,
following the Closing, MCC will have the sole and exclusive right and discretion
to enforce the rights, title and interests in and to the Assigned Intellectual
Property Rights against Third Parties.  Following the Closing, MCC
will decide whether or not to institute any proceeding against any Third Party
with respect to any alleged infringement or misappropriation of the rights,
title and interests in and to the Assigned Intellectual Property Rights in its
sole and absolute discretion and will keep all proceeds of any such
proceedings.  If MCC is unable to enforce any obligation or other
right without BIOPHAN being party to an Action, then BIOPHAN shall voluntarily
join as a party in such Action as necessary to enforce any such obligation or
other right; provided, that MCC
agrees in advance to reimburse BIOPHAN for its reasonable fees, costs and
expenses relating thereto.  Following the Closing, BIOPHAN shall not
testify (whether by declaration, affidavit, or in person) and BIOPHAN shall not
challenge or assist any Third Party in challenging the validity, enforceability
or value of the Assigned Intellectual Property Rights, in each case other than
under subpoena or similar legal order.  BIOPHAN shall not, and shall
cause its Affiliates not to, assist any Third Party in the assertion of any
Patent Rights in the Field against MCC or its Affiliates, other than under
subpoena or other legal process.

     

    6.5           Confidentiality.  The
Receiving Party agrees to maintain the confidentiality of the Confidential
Information of the Disclosing Party and agrees not to disclose or use (except as
permitted or required for performance by the Receiving Party of its rights or
duties hereunder or under the Ancillary Agreements) any Confidential Information
of the Disclosing Party.  The Receiving Party further agrees to cause
its and its Affiliates’ present and future employees, officers, agents and
consultants to comply with the foregoing.  If the Receiving Party is
requested or required to disclose any Confidential Information of the Disclosing
Party pursuant to any order or decree of a court of competent jurisdiction or
any applicable law, the Receiving Party shall endeavor to provide the Disclosing
Party with advance written notice of any such request or requirement (to the
extent practicable) and shall provide reasonable assistance to the Disclosing
Party if the Disclosing Party desires to seek a protective order or other
appropriate remedy.  If, in the absence of a protective order or other
remedy, the Receiving Party is nonetheless legally compelled to disclose
Confidential Information, the Receiving Party may, without liability hereunder,
disclose that portion of the Disclosing Party’s Confidential Information that
the Receiving Party’s legal counsel advises is legally required to be
disclosed.

     

    6.6           Public
Statements.  The Parties acknowledge and agree that no Party or
its Affiliate shall publicly disclose information regarding the terms of this
Agreement or the Ancillary Agreements or the transactions contemplated hereunder
or thereunder.  Notwithstanding the foregoing provision, the Parties
and their respective Affiliates shall not be prohibited from making any
disclosure or release that is required by law, court order, or applicable
regulation or that is required to protect any intellectual property right in any
territory; provided, however, that prior to any such disclosure or release, the
party proposing to so disclose or release information regarding the terms of
this Agreement or the Ancillary Agreements shall notify the other parties, and
the parties shall cooperate to seek applicable limitations on the public
availability of any information that either MCC or BIOPHAN considers sensitive
or confidential.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.7           Patent
Prosecution.  Except as specifically agreed to by the Parties
in writing, following the Closing, BIOPHAN will have no right or obligation to
file, prosecute or maintain any Patent Rights included in the Assigned Patent
Rights.  MCC will have no obligation to file, prosecute or maintain
any Patent Rights included in the Assigned Patent
Rights.  Notwithstanding the foregoing, the Parties agree as
follows:

     

    (a)           BIOPHAN Field
Covenant.  BIOPHAN hereby irrevocably and perpetually
covenants, agrees and warrants that BIOPHAN shall not, and shall cause its
Affiliates not to, amend any patent application owned or controlled by it to
include a claim that covers the Field (“Field
Claim”).  The covenant in this Section 6.7(a) shall inure to
the benefit of the respective permitted successors and assigns of MCC and its
Affiliates, and may be extended by MCC and its Affiliates with respect to any
product line, to any Third Party that acquires substantially all the assets
relating to such product line.  In the event that BIOPHAN or its
Affiliates breaches its covenant in this Section 6.8(a), then BIOPHAN agrees to
grant (and to cause its Affiliate to grant), and hereby grants, to MCC and its
Affiliates an irrevocable, perpetual, paid-up, worldwide, transferable and
assignable, exclusive license, with the right to sublicense, to practice methods
falling within the scope of the Field Claim in the Field and to Exploit products
falling within the scope of the Field Claim in the Field.

    (b)           Promptly
after Closing the Biophan agrees to assist MCC in transfer and delivery of all
documents related to the patent applications associated with the Assigned Patent
Rights to legal counsel designated by MCC.

     

    6.8           Tangible
Materials.  BIOPHAN shall, as soon as reasonably practicable
deliver any Tangible Materials related to the Technology that are in the
possession of BIOPHAN or its Affiliates or Representatives.

     

    6.9           Books and
Records.  BIOPHAN shall, as soon as reasonably practicable
deliver any Books and Records that are in the possession of BIOPHAN or its
Affiliates or Representatives that related to the Technology.

     

    

    
      	
              7.

            	
              INDEMNIFICATION.

            

    

     

    7.1           Indemnification by
BIOPHAN.  BIOPHAN and its Affiliates shall jointly and
severally indemnify, defend and hold harmless MCC and its Affiliates and
Representatives, whether or not involving a Third Party Claim, against all
Losses relating to or arising out of:

     

    (a)           (i)
the breach of any representation or warranty of BIOPHAN under Section 4 of this
Agreement or (ii) the breach of any covenant or obligation of BIOPHAN or its
Affiliates in this Agreement or any of the Ancillary Agreements;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)           any
Third Party Claim arising under or relating to a right to assign title to the
Assigned Patent Rights, including any ability of BIOPHAN or its Affiliates to
grant any license or make assignments hereunder or any restriction on BIOPHAN’s
or its Affiliates’ rights to or make assignments of right, title and interest in
and to the Assigned Patent Rights; or

     

    (c)               any
Contractual Obligation of BIOPHAN or its Affiliates to make any payments to any
Third Party arising out of or relating to the payment of the Closing
Payments.

     

    7.2           Indemnification by
MCC.  MCC shall indemnify, defend and hold harmless BIOPHAN and
its Affiliates and Representatives, whether or not involving a Third Party
Claim, against all Losses relating to or arising out of:

    (a)           the
breach of any representation or warranty of MCC in Section 5 of this Agreement
or the breach of any covenant or obligation of MCC in this Agreement or any of
the Ancillary Agreements;

     

    (b)           any
Claims or Actions by any Third Party arising out of or relating to the
Exploitation by MCC or its Affiliates of or relating to products, product
systems or procedures derived from or based on the Assigned Intellectual
Property Rights.

     

    7.3           Survival.  The
terms of this Agreement and all provisions hereof, including all
representations, warranties, promises, agreements and covenants, are contractual
and not mere recitals and shall survive the execution and delivery of this
Agreement and the Closing under this Agreement for a period of 12 months;
provided that nothing in this Section 7.3 shall be interpreted as requiring that
the representations and warranties set forth in Article 4 be and remain true and
correct at times after the Closing subject to MCC’s right pursuant to Section
7.1 to make Claims based on the breach or inaccuracy of such representations and
warranties as of the Closing and times prior thereto.

     

    7.4           Notice of
Claims.  If an Indemnified Party intends to seek
indemnification pursuant to this Agreement, such Indemnified Party shall
promptly notify the Indemnifying Party in writing of the Claim for which
indemnification is sought, including any Third Party Claims in respect of which
indemnification is sought under this Agreement.  Any such notice shall
set forth in reasonable detail, in light of the circumstances then known to the
Indemnified Party, the facts, circumstances and basis of the Claim and, if the
Claim relates to a Third Party Claim, shall include copies of all papers served
upon or received by the Indemnified Party relating thereto.  Any delay
in the provision of such notice and accompanying materials shall not affect any
rights under this Agreement except to the extent that the Indemnifying Party is
actually and materially prejudiced thereby (and except that the Indemnifying
Party shall not be liable for any expenses incurred during the period in which
the Indemnified Party failed to give such notice).

     

    7.5           Third Party
Claims.  The Indemnified Party shall have the sole and
exclusive right to control of the defense of any Third Party Claim with counsel
of its choice, and the Indemnified Party’s reasonable legal fees and expenses
shall constitute part of the Losses indemnified under this
Agreement.  The Indemnified Party may consent to the entry of any
judgment or enter into any compromise or settlement with respect to, the Third
Party Claim; provided, that the Indemnifying Party will not be bound by the
entry of any such judgment consented to, or any such compromise or settlement
effected, without its prior written consent (which consent will not be
unreasonably withheld or delayed)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    7.6           Knowledge and
Investigation.  The right of any Indemnified Party to
indemnification pursuant to this Section 7 will not be affected by any
investigation conducted or knowledge acquired (or capable of being acquired) at
any time, whether before or after the execution and delivery of this Agreement
or the Closing, with respect to the accuracy of any representation or warranty,
or performance of or compliance with any covenant or agreement under this
Agreement.

    7.7           Equitable
Remedies.  In addition to any other relief or remedies afforded
by law or in equity, if either Party or any of its Affiliates breaches its
obligations under this Agreement, the other Party shall be entitled, as a matter
of right and without posting any bond or other security, to injunctive relief in
any court of competent jurisdiction.  This shall not preclude the
granting of any other appropriate relief including, without limitation, money
damages against the breaching Party for breach of this Agreement.

     

    
      	
              8.

            	
              MISCELLANEOUS.

            

    

     

    8.1           Interpretation.  Except
as otherwise explicitly specified to the contrary, (a) references to a Section,
Exhibit or Schedule means a Section of or Schedule or Exhibit to this Agreement,
unless another agreement is specified, (b) the word “including” will be
construed as “including but not limited to,” and will not be construed as
limiting the general language to which it relates, and the items or matters that
follow the word “including” or the words “including but not limited to” or
“including without limitation” or similar words in this Agreement shall be
construed as illustrative, but not exclusive or complete, examples of what is
intended to be so included, (c) the term “or” is not limiting and means
“and/or,” (d) references to a particular statute or regulation include all rules
and regulations thereunder and any predecessor or successor statute, rules or
regulation, in each case as amended or otherwise modified from time to time, (e)
words in the singular or plural form include the plural and singular form,
respectively, (f) references to a particular Person include such Person’s
successors and assigns to the extent not prohibited by this Agreement and (g)
references to “Dollars” or “$” shall be to U.S. Dollars.  The Parties
have participated jointly in the negotiation and drafting of this
Agreement.  In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly
by the Parties and no presumption or burden of proof shall arise favoring or
disfavoring any Party by virtue of the authorship of any of the provisions of
this Agreement.

     

    8.2           No Third Party
Beneficiaries.  Except as specifically provided in this
Agreement, this Agreement shall not confer any rights or remedies upon any
Person other than the Parties and their respective successors and permitted
assigns.

     

    8.3           Entire
Agreement.  Except as agreed to by the parties in writing, this
Agreement, the Schedules and Exhibits hereto, and the Ancillary Agreements
constitute the entire agreement among the Parties and supersedes any prior
understandings, agreements or representations by or among the Parties, whether
written or oral, with respect to the subject matter hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    8.4           Assignment.  No
Party may assign either this Agreement or any of its rights, interests or
obligations under this Agreement without the prior written approval of the other
Parties; provided, however,
that MCC may, without notice to or consent of BIOPHAN, (i) assign all of its
rights and interests and delegate all of its obligations under this Agreement to
a Third Party in connection with the sale of all or substantially all of the
capital stock of MCC or all or substantially all of the assets to which this
Agreement relates (whether by merger, consolidation or otherwise) to such Third
Party, provided that such Third Party executes a counterpart to this Agreement
acknowledging and agreeing to assume all such obligations of MCC and its
Affiliates under this Agreement; (ii) assign all of its rights and interests to
one or more of its Affiliates; (iii) assign right, title and interest in and to
any of the Assigned Intellectual Property Rights to any party; and (iv)
designate one or more of its Affiliates to perform its obligations under this
Agreement provided that such designation shall not relieve MCC from its
obligations under this Agreement.  Subject to the foregoing, this
Agreement shall be binding upon and inure to the benefit of the Parties named
herein and their respective successors and permitted assigns.

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

     

    8.6           Headings.  The
Section headings contained in this Agreement are inserted for convenience only
and shall not affect in any way the meaning or interpretation of this
Agreement.

     

    8.7           Notices.  All
communications between BIOPHAN and MCC relating to this Agreement and the
subject matter hereof shall be directed to the persons designated to receive
notices set forth in this Section 8.7 or such other individuals as they may
designate.  All notices, requests, demands, Claims and other
communications under this Agreement shall be in writing.  Any notice,
request, demand, Claim or other communication under this Agreement shall be
deemed duly given (i) when delivered personally to the recipient, (ii) upon
confirmation of facsimile (with a confirmation copy to be sent by overnight
delivery) or (iii) one Business Day following the date sent when sent by
overnight delivery, at the following address:

     

    If to
BIOPHAN:

    

    BIOPHAN
Technologies, Inc.

    15 Schoen
Place

    Pittsford,
NY 14534

    Attention:  John
Lanzafame

    

    If to
MCC:

    

    MyoCardioCare,
Inc.

    4165
Taliesin Way

    Fort
Collins, CO 80524-9377

     

    Attention:  Frank
W. Terrizzi

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Any Party
may change the named party and address to which notices, requests, demands,
Claims and other communications under this Agreement are to be delivered by
giving the other Party notice in the manner herein set forth.

     

    8.8           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of New York without giving effect
to any choice or conflict of law provision or rule (whether of the State of New
York or any other jurisdiction) that would cause the application of the laws of
any jurisdiction other than the State of New York.  The parties hereto
submit to the exclusive jurisdiction of the State and Federal courts in the
State of New York and Monroe County with respect to any dispute.

     

    8.9           Amendments and
Waivers.  No amendment of any provision of this Agreement shall
be valid unless the same shall be in writing and signed by MCC and
BIOPHAN.  No waiver by any Party of any provision of this Agreement or
any default, misrepresentation or breach of warranty or covenant under this
Agreement, whether intentional or not, shall be valid unless the same shall be
in writing and signed by the Party making such waiver nor shall such wavier be
deemed to extend to any prior or subsequent default, misrepresentation or breach
of warranty or covenant under this Agreement or affect in any way any rights
arising by virtue of any prior or subsequent such occurrence.  Any
consent, waiver or amendment signed by BIOPHAN shall be deemed the consent,
waiver or amendment of BIOPHAN and its Affiliates and any consent, waiver or
amendment signed by MCC shall be deemed the consent, waiver or amendment of
MCC’s and its Affiliates pursuant hereto.

     

    8.10           Severability.  Any
term or provision of this Agreement that is invalid or unenforceable in any
situation in any jurisdiction shall not affect the validity or enforceability of
the remaining terms and provisions hereof or the validity or enforceability of
the offending term or provision in any other situation or in any other
jurisdiction.  In the event that any term or provision of this
Agreement would, under applicable law, be invalid or unenforceable in any
respect, each Party intends that such provision will be construed by modifying
or limiting it so as to be valid and enforceable to the maximum extent
compatible with, and possible under, applicable law.  For any such
invalid or unenforceable provision, the Parties shall use commercially
reasonable efforts to negotiate a substitute valid and enforceable provision
while preserving to the fullest extent possible the intent and agreements of the
Parties set forth herein.

     

    8.11           Expenses.  Except
as expressly stated otherwise, each of the Parties will bear his or its own
costs and expenses (including legal and accounting fees and expenses) incurred
in connection with this Agreement, the Ancillary Agreements and the transactions
contemplated hereby and thereby.

     

    

     

    [Signature
Page Follows]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, each of the
undersigned has executed this Agreement as an agreement under seal as of the
date first above written.

     

    
      
        	 	

                MYOCARDIOCARE,
      INC.

              	 
	 	 	
                 

                 

              	 
	 	
                By:
      

              	/s/Frank
      W. Terrizzi	 
	 	 	

                Name:
      Frank W. Terrizzi

              	 
	 	 	

                Title:
      President

              	 
	 	 	 	 

      

       

      
        	 	

                BIOPHAN
      TECHNOLOGIES, INC

              	 
	 	 	
                 

                 

              	 
	 	
                By:
      

              	/s/ John
      Lanzafame	 
	 	 	

                Name:
      John Lanzafame

              	 
	 	 	

                Title:
      Chief Executive Officer

              	 
	 	 	 	 

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
1 - Patents

    

    
      	
              IMATTER
      NO

            	
              COUN-

               TRY
      ID

            	
              TYPE

            	
              SERIAL
      NO

            	
              PATENT
      NO

            	
              PUBL
      NO

            	
              TITLE

            	
              STATUS

            	
              FILE

            	
              PUBL

            	
              ISSUE

            
	
              1034448-000016

            	
              CA

            	
              UTL

            	
              2,530,574

            	 
      	 
      	
              Sensor-Equipped
      and Algorithm Controlled Direct Mechanical Ventricular Assist
      Device

            	
              ABANDONED

            	
              6
      /25/2004

            	 
      	 
      
	
              1034448-000019

            	
              CN

            	
              UTL

            	
              200480023755.8

            	 
      	
              1838971

            	
              Sensor-Equipped
      and Algorithm Controlled Direct Mechanical Ventricular Assist
      Device

            	
              PUBLISHED

            	
              6
      /25/2004

            	
              9
      /27/2006

            	 
      
	
              1034448-000017

            	
              EP

            	
              UTL

            	
              04777156.3

            	 
      	
              1644060

            	
              Sensor-Equipped
      and Algorithm Controlled Direct Mechanical Ventricular Assist
      Device

            	
              PUBLISHED

            	
              6
      /25/2004

            	
              4
      /12/2006

            	 
      
	
              1034448-000025

            	
              EP

            	
              UTL

            	
              05713894.3

            	 
      	
              1748807

            	
              Method
      and Apparatus for Direct Mechanical Ventricular Actuation with Favorable
      Conditioning and Minimal Heart Stress

            	
              PUBLISHED

            	
              2
      /22/2005

            	
              2
      /7 /2007

            	 
      
	
              1034448-000018

            	
              IN

            	
              UTL

            	
              89/DELNP/2006

            	 
      	 
      	
              Sensor-Equipped
      and Algorithm Controlled Direct Mechanical Ventricular Assist
      Device

            	
              ABANDONED

            	
              6
      /25/2004

            	
              8
      /24/2007

            	 
      
	
              1034448-000020

            	
              JP

            	
              UTL

            	
              2006-517710

            	 
      	
              2007-524464

            	
              Sensor-Equipped
      and Algorithm Controlled Direct Mechanical Ventricular Assist
      Device

            	
              PUBLISHED

            	
              6
      /25/2004

            	
              8
      /30/2007

            	 
      
	
              1034448-000007

            	
              US

            	
              UTL

            	
              10/607,434

            	
              7,494,459

            	
              US-2004-0267086-A1

            	
              Sensor-Equipped
      and Algorithm-Controlled Direct Mechanical Ventricular Assist
      Device

            	
              ISSUED

            	
              6
      /26/2003

            	
              12/30/2004

            	
              2
      /24/2009

            
	
              1034448-000009

            	
              US

            	
              UTL

            	
              10/795,098

            	 
      	
              US
      2006-0167334 A1

            	
              Method
      and Apparatus for Direct Mechanical Ventricular Actuation with Favorable
      Conditioning and Minimal Heart Stress

            	
              ABANDONED

            	
              3
      /5 /2004

            	
              7
      /27/2006

            	 
      
	
              1034448-000011

            	
              US

            	
              UTL

            	
              11/143,542

            	 
      	
              US
      2005-0234289 A1

            	
              Therapeutic
      Agent Delivery Apparatus with Direct Mechanical Ventricular Assistance
      Capability

            	
              ABANDONED

            	
              6
      /2 /2005

            	
              10/20/2005

            	 
      
	
              1034448-000021

            	
              US

            	
              UTL

            	
              11/302,322

            	 
      	
              US
      2006-0211909 A1

            	
              Method
      and Apparatus for Direct Mechanical Ventricular Actuation with Favorable
      Conditioning and Minimal Heart Stress

            	
              ABANDONED

            	
              12/14/2005

            	
              9
      /21/2006

            	 
      
	
              1034448-000013

            	
              US

            	
              UTL

            	
              11/359,542

            	 
      	
              US
      2006-0142634 A1

            	
              Sensor-Equipped
      and Algorithm Controlled Direct Mechanical Ventricular Assist
      Device

            	
              ABANDONED

            	
              2
      /23/2006

            	
              6
      /29/2006

            	 
      
	
              1034448-000008

            	
              WO

            	
              UTL

            	
              PCT/US2004/020605

            	 
      	 
      	
              Sensor-Equipped
      and Algorithm Controlled Direct Mechanical Ventricular Assist
      Device

            	
              NAT
      PHASE

            	
              6
      /25/2004

            	 
      	 
      
	
              1034448-000010

            	
              WO

            	
              UTL

            	
              US2005/005497

            	 
      	
              WO
      2005/091860

            	
              Method
      and Apparatus for Direct Mechanical Ventricular Actuation with Favorable
      Conditioning and Minimal Heart Stress

            	
              NAT
      PHASE

            	
              2
      /22/2005

            	
              12/7
      /2006

            	 
      
	
              1034448-000027

            	
              CA

            	
              UTL

            	
              2,631,227

            	 
      	 
      	
              Method
      and Apparatus for Minimally Invasive Direct Mechanical Ventricular
      Actuation

            	
              PENDING

            	
              11/28/2006

            	 
      	 
      
	
              1034448-000028

            	
              CN

            	
              UTL

            	
              200680051933.7

            	 
      	
              101336119

            	
              Method
      and Apparatus for Minimally Invasive Direct Mechanical Ventricular
      Actuation

            	
              PUBLISHED

            	
              11/28/2006

            	
              12/31/2008

            	 
      
	
              1034448-000029

            	
              EP

            	
              UTL

            	
              06838453.6

            	 
      	
              1957160

            	
              Method
      and Apparatus for Minimally Invasive Direct Mechanical Ventricular
      Actuation

            	
              PUBLISHED

            	
              11/28/2006

            	
              8
      /20/2008

            	 
      
	
              1034448-000030

            	
              IN

            	
              UTL

            	
              4945/DELNP/2008

            	 
      	 
      	
              Method
      and Apparatus for Minimally Invasive Direct Mechanical Ventricular
      Actuation

            	
              PUBLISHED

            	
              11/28/2006

            	
              8
      /8 /2008

            	 
      
	
              1034448-000031

            	
              JP

            	
              UTL

            	
              2008-543377

            	 
      	
              2009-517183

            	
              Method
      and Apparatus for Minimally Invasive Direct Mechanical Ventricular
      Actuation

            	
              PUBLISHED

            	
              11/28/2006

            	
              4
      /30/2009

            	 
      
	
              1034448-000012

            	
              US

            	
              PRV

            	
              60/739,945

            	 
      	 
      	
              Method
      and Apparatus for Minimally Invasive Direct Mechanical Ventricular
      Actuation

            	
              EXPIRED

            	
              11/28/2005

            	 
      	 
      
	
              1034448-000032

            	
              US

            	
              UTL

            	
              12/085,547

            	 
      	 
      	
              Method
      and Apparatus for Minimally Invasive Direct Mechanical Ventricular
      Actuation

            	
              PENDING

            	
              5
      /27/2008

            	 
      	 
      
	
              1034448-000026

            	
              WO

            	
              UTL

            	
              US2006/045492

            	 
      	
              WO/2007/062239

            	
              Method
      and Apparatus for Minimally Invasive Direct Mechanical Ventricular
      Actuation

            	
              NAT
      PHASE

            	
              11/28/2006

            	
              5
      /31/2007

            	 
      
	
              1034448-000023

            	
              US

            	
              UTL

            	 
      	 
      	 
      	
              Algorithm-Controlled
      Direct Mechanical Ventricular Assist Devices

            	
              CLOSED

            	 
      	 
      	 
      
	
              MYO102

            	
              US

            	
              UTL

            	
              12/484,190

            	 
      	 
      	
              Direct
      Mechanical Ventricular Actuation Device and Methods for Controlling
      Same

            	
              PENDING

            	
              06/13/2009

            	 
      	 
      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
2 – Tangible Assets

    

    Other
Assets

    

    Four (4)
prototype drive units, including software, Dell computers and related sensors
(including Millar transducers, Millar pressure control units, and Transonic flow
probes and meters)

     

    Dell
desktop computer, duplicate of the four included in the drive units

     

    Transonic
Systems, Inc. 3 Channel mod-flow meter

     

    All
Myotech cup prototypes

     

    All
Myotech legacy drive unit prototypes

     

    LabView
Application Builder software package

     

    Heart
model and closed loop pumping circuit for in vitro testing

     

    MYO-VAD
tooling for injection molding cups 

     

    Copy of
all electronic and hardcopy files associated with the design of Drive
Units, Cups, Cup mold tooling, Cup assembly tooling, and Cup sizing
devices. 

     

    All
laboratory data and records in the possession of Biophan associated with testing
and designs of Myotech cups and drive units 

     

    Copy of
invention notebooks a) of current employees and consultants and b) of past
employees, consultants and Founders related to the Technology

     

    All
electronic files associated with the Myotech regulatory documents, marketing
materials, customer lists, videos and presentation 

     

    Copy of
all grant applications related to the Technology by Myotech and by
Biophan

     

    Copy of
Consulting Agreements for all people associated with Myotech

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    Biophan
Disclosure Schedule

    Article
4

    

    Article
4.5 – The Assigned Patent Rights are subject to a royalty obligation to Advanced
Resuscitation, LLC, as stated in the Patent Assignment Agreement between
Advanced Resuscitation, LLC and Myotech, LLC, executed December 20,
2005.  This obligation was assigned with the patents to Biophan
Technologies, Inc. and will be assumed by MCC upon the  assignment of
the patents to MCC.

     

    
      
         

      

      
        -2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]