Document:

Exhibit 10.1

 

PLACEMENT AGENCY AGREEMENT

 

This Placement Agency Agreement
(this “Agreement”) is made and entered into as of December 7, 2010 (the “Effective
Date”), by and between TechniScan, Inc., a Delaware corporation (the “Company”),
and Stonegate Securities, Inc., a Texas corporation (“Stonegate”).

 

WHEREAS, the Company desires to
retain Stonegate as its placement agent, and Stonegate is willing to act in
such capacity, in each case subject to the terms and conditions of this
Agreement.

 

NOW, THEREFORE, in consideration of
the premises and the mutual covenants herein contained, the Company and
Stonegate (each a “Party” and collectively, the “Parties”) hereby agree as
follows:

 

1.              RETENTION OF STONEGATE; SCOPE OF SERVICES.

 

(a)          Subject to the terms and conditions set forth herein, the
Company hereby retains Stonegate to act as the placement agent to the Company
during the Contract Period (as defined in Section 2 below), and Stonegate
hereby agrees to be so retained.

 

(b)         During the Contract Period (as defined in Section 2(a) below),
as the non-exclusive placement agent to the Company, Stonegate will have the
non-exclusive right to identify for the Company prospective purchasers
(collectively, the “Purchasers” and each individually, a “Purchaser”) in one or
more placements (each, a “Placement” and collectively, the “Placements”) of
debt and/or equity securities to be issued by the Company, the type and dollar
amount being as mutually agreed to by the Parties (the “Securities”).

 

(c)          Terms of the Placements shall be as set forth in
subscription documents, including any stock purchase or subscription agreement,
escrow agreement, registration rights agreement, warrant agreement and/or other
documents to be executed and delivered in connection with each Placement
(collectively, the “Subscription Documents”). 
The Placements are intended to be exempt from the registration
requirements of the Securities Act of 1933, as amended (the “Securities Act”),
pursuant to Regulation D (“Regulation D”) of the rules and regulations of
the Securities and Exchange Commission (the “SEC”) promulgated under the
Securities Act.

 

(d)         Stonegate will act on a best efforts basis and will have no
obligation to purchase any of the Securities offered in any Placement. During
the Contract Period, Stonegate shall have the non-exclusive right to arrange
for sales of Securities in the Placements, including without limitation the
non-exclusive right to identify purchasers for the Securities.  All sales of Securities in the Placements
shall be subject to the approval of the Company, which approval may be withheld
in the Company’s sole discretion.

 

(e)          Additionally, the Company shall keep confidential all
information and documents provided to the Company by Stonegate, including, but
not limited to, the identity of any potential investor, and the contents of any
term sheet, solicitation, investor list, investor indication of interest, road
show list, and any similar document.

 

(f)            The terms and provisions of Section 1(e) specifically
shall survive the Contract Period for 12 months.

 

2.              CONTRACT PERIOD AND TERMINATION.

 

(a)          Stonegate shall act as the Company’s non-exclusive placement
agent under this Agreement for a period commencing on the Effective Date, and
continuing until terminated by either Party upon 10 days notice to the other
Party (the “Contract Period”).

 

(b)         Upon termination, neither party will have any further
obligation under this Agreement, except as provided in Sections 5, 6, 7, 8, 9,
10, and 11 hereof.

 

 

3.              REPRESENTATIONS AND WARRANTIES OF THE
COMPANY.

 

Each
Party represents and warrants that it has full power and authority to enter
into this Agreement and to perform its obligations hereunder.  This Agreement is enforceable against the
Company in accordance with its terms, subject to applicable laws governing
bankruptcy, insolvency and creditors’ rights generally.  The Agreement does not conflict with,
violate, cause a default, right of termination, or acceleration (whether
through the passage of time or otherwise) under any contract, agreement, or
understanding binding upon either Party or any subsidiary of the Company.

 

4.              COVENANTS OF THE COMPANY.

 

The Company covenants and
agrees as follows:

 

(a)          Neither the Company nor any affiliate of the Company (as
defined in Rule 501(b) of Regulation D) will sell, offer for sale, or
solicit offers to buy, or otherwise negotiate in respect of any security (as
defined in the Securities Act) of the Company which will be integrated with the
sale of the Securities and cause the Placement to be a deemed a public offering
requiring registration under the Securities Act.

 

(b)         Any and all filings and documents required to be filed in
connection with or as a result of the Placements pursuant to federal and state
securities laws are the responsibility of the Company and will be filed by the
Company.

 

(c)          Any press release to be issued by the Company announcing or
referring to any Placement in which Stonegate serves as the placement agent
shall be subject to the prior review of Stonegate, and each such press release
shall, at the request of Stonegate, identify Stonegate as the placement
agent.  Stonegate shall be permitted to
publish a tombstone or similar advertisement upon completion of each Placement
identifying itself as the Company’s placement agent with respect thereto.  This Agreement shall not be filed publicly by
the Company without the prior written consent of Stonegate, unless required by
applicable law or regulation.

 

5.              FURNISHING OF COMPANY INFORMATION;
CONFIDENTIALITY.

 

(a)          In connection with Stonegate’s activities hereunder on the
Company’s behalf, the Company shall furnish Stonegate with all reasonable
information concerning the Company and its operations that Stonegate deems
necessary or appropriate (the “Company Information”) and shall provide
Stonegate with reasonable access to the Company’s books, records, officers,
directors, employees, accountants and counsel. 
The Company acknowledges and agrees that, in rendering its services
hereunder, Stonegate will be using and relying upon the Company Information
without independent verification thereof or independent appraisal of any of the
Company’s assets and may, in its sole discretion, use additional information
contained in public reports or other information furnished by the Company or
third parties.

 

(b)         Stonegate agrees that the Company Information will be used
solely for the purpose of performing its services hereunder.  Subject to the limitations set forth in
subsection (c) below, Stonegate will keep the Company Information provided
hereunder confidential and will not disclose such Company Information or any
portion thereof, except (i) to a third party contacted by Stonegate on
behalf of, and with the prior approval of, the Company pursuant hereto who has
agreed to be bound by a confidentiality agreement satisfactory in form and
substance to the Company, or (ii) to any other person for which the
Company’s consent to disclose such Company Information has been obtained.

 

(c)          Stonegate’s confidentiality obligations under this Agreement
shall not apply to any portion of the Company Information which (i) at the
time of disclosure to Stonegate or thereafter is generally available to and
known by the public (other than as a result of a disclosure directly or
indirectly by Stonegate in violation of this Agreement); (ii) was
available to Stonegate on a non-confidential basis from a source other than the
Company, provided that such source is not and was not bound by a
confidentiality agreement with the Company; (iii) has been independently
acquired or developed by Stonegate without violating any of its obligations
under this Agreement; or (iv) the disclosure of which is legally compelled

 

 

(whether
by deposition, interrogatory, request for documents, subpoena, civil or
administrative investigative demand or other similar process).  In the event that Stonegate becomes legally
compelled to disclose any of the Company Information, Stonegate shall provide
the Company with prompt prior written notice of such requirement so that the
Company may seek a protective order or other appropriate remedy and/or waive
compliance with the terms of this Agreement.

 

(d)         The obligations of the Parties under this Section 5
shall survive the termination of this Agreement for 12 months.

 

6.              FEES AND EXPENSES.

 

(a)          As compensation for services rendered by Stonegate in
connection with the Placements, the Company agrees to pay Stonegate a total fee
(the “Agency Fee”) of eight percent (8%) of the gross proceeds from the sale of
Securities in the Placements to purchasers identified by Stonegate, of which
six percent (6%) shall be paid in cash and two percent (2%) shall be paid in
the common stock of the Company.

 

1.               As compensation for services rendered by Stonegate in
connection with the Placements, the Company agrees to pay Stonegate a cash fee
(the “Agency Fee”) of six percent (6%) of the gross proceeds from the sale of
Securities in the Placements to purchasers identified by Stonegate.  The Agency Fee shall be paid immediately upon
the closing of each sale of Securities by the Company to investors introduced
to the Company by Stonegate.

 

2.               Upon closing of the Placement as defined above, the Company
agrees to issue to Stonegate fully paid non-assessable shares of common stock
of the Company equal to two percent (2%) of the gross proceeds of the placement
in the common stock of the Company to purchasers identified by Stonegate,
calculated at share price equal to the share price of the Placement. The
Company will issue the shares described in this subsection to such affiliates
of Stonegate and in such denominations as will be designated by Stonegate..

 

(b)         In the event that any Placement includes warrants that are
subsequently exercised, any sums received by the Company as a result of such
exercise shall be included in and added to the gross proceeds from the sale of
Securities in the Placements.  Upon the
exercise of any such warrant, regardless as to the timing of same, the Company
shall immediately notify Stonegate of the exercise and shall pay to Stonegate
all fees, including the above Agency Fee, associated with the exercise of the
warrants.

 

(c)          In order to compensate Stonegate for its initial due
diligence efforts, the Company shall deliver to Stonegate (or Stonegate’s
designee) 150,000 shares of fully paid non-assessable shares of common stock of
the Company (the “Shares”), such shares to vest immediately upon the execution
of this Agreement.  The Company will
issue the Shares to such affiliates of Stonegate and in such denominations as
will be designated by Stonegate.

 

(d)         If Stonegate has not received the Shares, referenced in Section 6(c) above,
before 45 days from the effective date of this Agreement, then an additional
fee in the amount of $10,000 shall then be immediately due and payable from
Company to Stonegate at that time.  Moreover, an additional fee in the same sum
shall be immediately due and payable from Company to Stonegate every 30 days
thereafter until Stonegate receives said Shares.

 

(e)          The Company shall also promptly reimburse Stonegate for all
reasonable out-of-pocket expenses incurred by Stonegate and its directors,
officers and employees in connection with the performance of Stonegate’s
services under this Agreement.  For these
purposes, “out-of-pocket expenses” shall include, but not be limited to,
attorneys’ fees and costs, telephone conference charges, courier, mail,
supplies, travel, lodging, transportation, and similar expenses. All out of
pocket expenses over $1,000 incurred by Stonegate must be pre-approved in
writing by the Company.

 

 

(f)            The fees payable to Stonegate under this Agreement are
separate from and do not include fees that may be charged by or owed to other
entities as a result of other agreements of the Company or as agreed to by the
Company.

 

(g)         The obligations of the Parties under this Section 6
shall survive the termination of this Agreement for any reason for a period of
12 months.

 

7.              INDEMNIFICATION.

 

(a)          The Company agrees to indemnify and hold Stonegate harmless
from and against any and all losses, claims, damages or liabilities (or actions,
including securityholder actions, in respect thereof) related to or arising out
of Stonegate’s engagement hereunder or its role in connection herewith, and
will reimburse Stonegate for all reasonable expenses (including reasonable
costs, expenses, awards and counsel fees and/or judgments) as they are incurred
by Stonegate in connection with investigating, preparing for or defending any
such action or claim, whether or not in connection with pending or threatened
litigation in which Stonegate is a party. 
The Company will not, however, be responsible for any claims,
liabilities, losses, damages or expenses which are finally judicially
determined to have resulted primarily from the bad faith, negligence or willful
misconduct of Stonegate.  The Company also
agrees that Stonegate shall not have any liability to the Company for or in
connection with such engagement, except for any such liability for losses,
claims, damages, liabilities or expenses incurred by the Company that result
primarily from the bad faith, gross negligence or willful misconduct of
Stonegate.  In the event that the
foregoing indemnity is unavailable (except by reason of the bad faith or
negligence of Stonegate), then the Company shall contribute to amounts paid or
payable by Stonegate in respect of its losses, claims, damages and liabilities
in such proportion as appropriately reflects the relative benefits received by,
and fault of, the Company and Stonegate in connection with the matters as to
which such losses, claims, damages or liabilities relate, and other equitable
considerations.  The foregoing shall be
in addition to any rights that Stonegate may have at common law or otherwise
and shall extend upon the same terms to and inure to the benefit of any
director, officer, employee, agent or controlling person of Stonegate.  The Company hereby consents to personal
jurisdiction, service and venue in any court in which any claim which is
subject to this agreement is brought against Stonegate or any other person
entitled to indemnification or contribution under this subsection (a).

 

(b)         Stonegate agrees to indemnify and hold the Company harmless
from and against any and all losses, claims, damages or liabilities (or
actions, including securityholder actions, in respect thereof) which are finally
judicially determined to have resulted primarily from the bad faith, gross
negligence or willful misconduct of Stonegate, and will reimburse the Company
for all reasonable expenses (including reasonable costs, expenses, awards and
counsel fees and/or judgments) as they are incurred by the Company in
connection with investigating, preparing for or defending any such action or
claim, whether or not in connection with pending or threatened litigation in
which the Company is a party.  In the
event that the foregoing indemnity is unavailable, then Stonegate shall
contribute to amounts paid or payable by the Company in respect of its losses,
claims, damages and liabilities in such proportion as appropriately reflects
the relative benefits received by, and fault of, the Company and Stonegate in
connection with the matters as to which such losses, claims, damages or
liabilities relate, and other equitable considerations.  The foregoing shall be in addition to any
rights that the Company may have at common law or otherwise and shall extend
upon the same terms to and inure to the benefit of any director, officer,
employee, agent or controlling person of the Company.  Stonegate hereby consents to personal
jurisdiction, service and venue in any court in which any claim, which is
subject to this agreement, is brought against the Company or any other person
entitled to indemnification or contribution under this subsection (b).

 

(c)          The
obligations of the Parties under this Section 7 shall survive the
termination of this Agreement for a period of 12 months.

 

 

8.              NON-CIRCUMVENTION.

 

The Company hereby agrees
that, for a period of one year from the end of the Contract Period or other
termination of this Agreement, the Company will not enter into any agreement,
transaction or arrangement with any of the institutions (including their
agents, principals and affiliates and the accounts and funds which they manage
or advise) which Stonegate has introduced, directly or indirectly, to the
Company pursuant to a direct meeting, or telephone call as prospective
purchasers of the Securities in the Placements (collectively, the “Stonegate
Contacts”), regardless of whether a transaction is consummated with such
prospective purchasers, unless the Company notifies Stonegate in writing of the
agreement, transaction or arrangement, and pays Stonegate a fee equal to the
Agency Fee plus all other compensation under Section 6 of this Agreement
for securities of the Company sold to Stonegate Contacts.

 

9.              GOVERNING LAW.

 

THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OFTEXAS,
WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAWS PROVISIONS THEREOF.

 

10.       ARBITRATION.

 

Stonegate and the Company
will attempt to settle any claim or controversy arising out of this Agreement
through consultation and negotiation in good faith and a spirit of mutual
cooperation.  Any dispute which the
parties cannot resolve may then be submitted by either party to binding
arbitration in Dallas, Texas under the rules of the American Arbitration
Association for resolution.  Nothing in
this paragraph will prevent either party from resorting to judicial proceedings
if (a) good faith efforts to resolve the dispute under these procedures
have been unsuccessful or (b) interim relief from a court is necessary to
prevent serious and irreparable injury.

 

11.       NO WAIVER.

 

The failure or neglect of any
party hereto to insist, in any one or more instances, upon the strict
performance of any of the terms or conditions of this Agreement, or waiver by any
party of strict performance of any of the terms or conditions of this
Agreement, shall not be construed as a waiver or relinquishment in the future
of such term or condition, but the same shall continue in full force and
effect.

 

12.       SUCCESSORS AND ASSIGNS.

 

The benefits of this
Agreement shall inure to the benefit of the Parties, their respective
successors, assigns and representatives, and the obligations and liabilities
assumed in this Agreement by the Parties shall be binding upon their respective
successors and assigns.  This Agreement
may not be assigned by either Party without the express written consent of the
other Party, which consent shall not be unreasonably withheld.

 

13.       NOTICES.

 

All notices and other
communications required or permitted to be given under this Agreement shall be
in writing and shall be delivered personally or sent by certified mail, return
receipt requested, recognized overnight delivery service, or facsimile (with
copy by first class mail) as follows:

 

 

If to the Company:

TechniScan, Inc.

3216 South Highland Drive,
Suite 200

Salt Lake City, UT 84106

Attn: David C. Robinson, CEO

Phone: 801-521-0444

Email: drobinson@tsni.com

 

If to Stonegate:

Stonegate Securities, Inc.

5950 Sherry Lane, Suite 410

Dallas, Texas  75225

Attn: Jesse B. Shelmire, CEO

Phone: 214-987-4121

Email: jesse@stonegateinc.com

 

Either Party may change its
address or facsimile number set forth above by giving the other Party notice of
such change in accordance with the provisions of this Section. A notice shall
be deemed given (a) if by personal delivery, on the date of such delivery,
(b) if by certified mail, on the date shown on the applicable return
receipt, (c) if by overnight delivery service, on the day after the date
delivered to the service, or (d) if by facsimile, on the date of
transmission.

 

14.       NATURE OF RELATIONSHIP.

 

The Parties intend that
Stonegate’s relationship to the Company and the relationship of each director,
officer, employee or agent of Stonegate to the Company shall be that of an
independent contractor and not as an employee of the Company or an affiliate
thereof.  Nothing contained in this
Agreement shall constitute or be construed to be or create a partnership or
joint venture between Stonegate and the Company or their respective successors
or assigns.  Neither Stonegate nor any
director, officer, employee or agent of Stonegate shall be considered to be an
employee of the Company by virtue of the services provided hereunder.

 

15.       MISCELLANEOUS

 

Stonegate’s obligations under
this Agreement are subject to the following general conditions:

 

(a)          All relevant terms, conditions, and circumstances relating
to the Placements will be reasonably satisfactory to Stonegate and its counsel.

 

(b)         Stonegate reserves the right to solicit the assistance of
outside dealers (“Dealers”) to assist in the offer and sale of the Placements;
provided, however, that any such Dealers agree in writing to be bound by the
terms of the applicable Placement. It is understood that Stonegate, in its sole
discretion, shall be entitled to pay over to any such Dealers any portion of
the compensation received by Stonegate hereunder.  The Company shall have no financial liability
for any fees or expenses of any such Dealers.

 

16.       CAPTIONS.

 

The Section titles
herein are for reference purposes only and do not control or affect the meaning
or interpretation of any term or provision hereof.

 

17.       AMENDMENTS.

 

No alteration, amendment,
change or addition hereto shall be binding or effective unless the same is set
forth in a writing signed by a duly authorized representative of each Party.

 

 

18.       PARTIAL INVALIDITY.

 

If it is finally determined
that any term or provision hereof is invalid or unenforceable, (a) the
remaining terms and provisions hereof shall be unimpaired, and (b) the
invalid or unenforceable term or provision shall be replaced by a term or
provision that is valid and enforceable and that comes as close as possible to
expressing the intention of the invalid or unenforceable term or provision.

 

19.       ENTIRE AGREEMENT.

 

This Agreement embodies the
entire agreement and understanding of the Parties and supersedes any and all
prior agreements, arrangements and understandings relating to the matters
provided for herein.

 

20.       COUNTERPARTS.

 

This Agreement may be
executed in one or more counterparts, each of which shall be an original, but
all of which together shall be considered one and the same agreement.

 

[Remainder
of Page Intentionally Left Blank]

 

 

IN WITNESS WHEREOF, this Agreement
has been executed as of the date first written above by duly authorized
representatives of the Company and Stonegate.

 

	
   

  	
  TechniScan, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David C. Robinson 

  
	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  STONEGATE SECURITIES, INC.  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jesse B. Shelmire 

  
	
   

  	
  Title:

  	
  CEOExhibit 10.2

 

PROFESSIONAL SERVICES AGREEMENT

 

THIS
PROFESSIONAL SERVICES AGREEMENT (this “Agreement”), dated as of December 8,
2010 (“Effective Date”), is by and between TECHNISCAN, INC., a
Delaware corporation (the “Company”), and PCOF PARTNERS, LLC,
a Delaware limited liability company (“Phoenix”).

 

R  E  C  I  T  A
L  S:

 

WHEREAS, Phoenix
desires to serve as a non-exclusive consultant and advisor to the Company;

 

WHEREAS, the Company
desires to engage Phoenix on a non-exclusive basis to act as a consultant and
advisor to the Company, according to the terms and conditions contained herein;
and

 

WHEREAS, the parties
hereto desire to make certain representations, warranties, covenants and
agreements in connection with the services to be provided pursuant to this
Agreement.

 

NOW,
THEREFORE, for the reasons set forth hereinabove, and in
consideration of the foregoing premises and of the mutual promises,
representations, warranties, covenants and agreements contained herein, and
other good and valuable consideration, the receipt of which are hereby
acknowledged, the parties do hereby agree as follows:

 

1.                                      Non-Exclusive
Engagement.  The Company
hereby retains Phoenix to perform consulting and advisory services on a
non-exclusive basis, and Phoenix hereby accepts such retention and agrees to do
and perform consulting and advisory services upon the terms and conditions set
forth herein.

 

2.                                      Services.

 

(a)                                  Basic Services.  During the Term (as defined below), Phoenix
shall provide the following services to the Company (“Services”):

 

(i)                                     guidance and advice on developing relationships with
potential market makers;

 

(ii)                                  guidance and advice with regard to investor and/or public
relation matters;

 

(iii)                               guidance and advice in evaluating financing proposals;

 

(iv)                              guidance and advice with regard to debt and equity
structures;

 

(v)                                 guidance and advice in evaluating acquisitions;

 

(vi)                              guidance and advice with regard to future financing
strategy; and

 

(v)                                 such other services as reasonably requested by the Company
from time to time.

 

(b)                                 Location of Service.  The Services shall be rendered by Phoenix in
consultation with the Company at such time and place and in such manner
(whether by conference, telephone, letter or otherwise) as mutually agreed to
between the parties.

 

(c)                                  Information.  The Company shall furnish Phoenix such
information, including financial statements related to the business,
operations, assets and liabilities of the Company, as Phoenix may reasonably 

 

 

request in connection with
the performance of its Services. 
Notwithstanding the above, the Company agrees that it will not at any
time provide Phoenix with any information that is not at the time of such
disclosure public knowledge and/or in the public domain.

 

(d)                                 No
Broker-Dealer Services.  The
Company acknowledges, understands and agrees that Phoenix is not a licensed
broker-dealer, as that term is defined under federal and/or state laws, and no
Services provided by Phoenix would require Phoenix to be licensed or registered
as a broker-dealer to lawfully perform such Services.

 

3.                                      Compensation.  As compensation for the Services, and subject
to the terms and conditions of this Agreement, the Company shall issue Phoenix
375,000 shares of the Company’s common stock, par value $.001 per share (“Shares”).  Upon both parties proper execution of this
Agreement, the Company will promptly issue and deliver to Phoenix a newly
issued stock certificate(s) evidencing the Shares directly in Phoenix’s
name.  The Shares are deemed to be earned
as of the Effective Date, and as payment in full for any and all Services
rendered by Phoenix to the Company prior to, and/or after, the Effective Date.

 

4.                                      Term; Termination.

 

(a)                                  Term.  The term of the Agreement shall commence on
the Effective Date, and shall terminate December 31, 2011 (the “Term”),
unless otherwise terminated pursuant to the terms hereof.   Upon termination, except for the covenants
made by Phoenix under Section 6 hereof, all rights, duties and obligations
of the parties shall immediately terminate and be of no further force or
effect.

 

(b)                                 Termination.  Either party can terminate this Agreement for
any reason or no reason or cause at all, upon 30 days written notice to the
other party any time after six months following the Effective Date, without any
further liability on the part of either party, except for the covenants made by
Phoenix under Section 6 hereof. 
Notwithstanding anything to the contrary set forth in this Agreement,
upon termination of this Agreement at anytime for any reason, Phoenix shall
have no obligation to return to the Company any or all of the Shares, nor pay
or provide any monetary consideration or otherwise to the Company for the
Shares.

 

5.                                      Representations, Warranties and Covenants of the Company. The Company
hereby represents, warrants and covenants to Phoenix as follows, each of which
is true and correct in all material respects at Closing:

 

(a)                                  Valid Corporate
Existence; Qualification.  The
Company is duly organized, validly existing and in good standing under the laws
of the State of Delaware.  The Company
has the corporate power to carry on its businesses as now conducted and to own
its assets.  The Company is duly
qualified to conduct business and is in good standing as a foreign corporation
in those jurisdictions in which the Company is required to qualify in order to
own its assets or properties or to carry on its businesses as now conducted,
except where the failure to qualify would not have a material adverse effect on
the business of the Company taken as a whole, and, to the best of the Company’s
knowledge, there has not been any claim by any other jurisdiction to the effect
that the Company is required to qualify or otherwise be authorized to do
business as a foreign corporation therein.

 

(b)                                 Capitalization.  The authorized capital stock of the Company
consists of 150,000,000 shares of common stock, and no shares of preferred
stock, par value $.001 per share, of which there are approximately 21,000,000
shares of common stock issued and outstanding. 
All of such outstanding shares are duly authorized, validly issued,
fully paid and nonassessable.  There are
no subscriptions, options, warrants, rights or calls or other commitments or
agreements to which the Company is a party or by which such persons are bound,
calling for the issuance, transfer, sale or other disposition of any class of
securities of the Company.  There are no
outstanding securities of the Company convertible or exchangeable, actually or
contingently, into shares of common stock, or any other securities of the
Company.

 

(c)                                  Consents.  There are no consents of governmental or
other regulatory agencies, foreign or domestic or of other parties required to
be received by or on the part of the Company to enable it to enter into and
carry out this Agreement in all material respects.

 

 

(d)                                 Corporate
Authority; Binding Nature of Agreement; Title to the Common Stock, etc.  The Company has the power to enter into this
Agreement and to carry out its obligations hereunder.  The execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby have been duly
authorized by the Company’s Board of Directors. 
Upon execution of this Agreement by the Company, no other corporate
proceeding on the part of the Company is necessary to authorize the execution
and delivery of this Agreement and the consummation of the transactions
contemplated hereby.  This Agreement
constitutes the valid and binding agreement of the Company and, assuming that
this Agreement constitutes the legal, valid and binding agreement of Phoenix,
is enforceable in accordance with its terms subject to applicable bankruptcy,
reorganization, insolvency and similar laws affecting the rights of creditors
and subject to general principles of equity.

 

6.                                      Representations, Warranties and Covenants of Phoenix.  Phoenix hereby represents, warrants and
covenants to the Company as follows, each of which is true and correct in all
material respects at Closing:

 

(a)                                  Review and Evaluation of Information Regarding the Company.  Phoenix has had an opportunity to examine
material disclosures and other documents and records of the Company. Phoenix
has had an opportunity to ask questions and receive answers from the
representatives of the Company concerning the information provided, and to
obtain such other information that Phoenix has deemed necessary to make a fully
informed decision.

 

(b)                                 Phoenix’s Financial Experience.  Phoenix is sufficiently experienced in
financial and business matters to be capable of evaluating the merits and risks
of its investment in the Shares.  Phoenix
is familiar with the nature and risks of investments involving equity in a
company.

 

(c)                                  Suitability of Investment.  Phoenix understands that the Shares are
speculative investments and involve a high degree of risk, including but not
limited to:  there is no guarantee of
success of the business of the Company; it may not receive any return (economic
or otherwise) on its investment, and management and the majority stockholders
of the Company have extreme latitude and generally, the sole discretion, to
determine the financial picture, operations and potential dissolution of the
Company. Phoenix has evaluated the merits and risks of Phoenix’s proposed
investment in the Shares, including those risks particular to Phoenix’s
situation, and it has determined that this investment is suitable for
Phoenix.  Phoenix has adequate financial
resources for an investment of this character, and, at this time, Phoenix could
bear a complete loss of its investment. 
Further, Phoenix will continue to have, after making its investment in
the Shares, adequate means of providing for its current needs, the needs of
those dependent on it, and possible contingencies.

 

(d)                                 Investment Intent.  Phoenix is purchasing the Shares for
investment purposes only and for Phoenix’s own account, and it has no present
commitment, agreement or intention to sell, distribute or otherwise dispose of
any of them or enter into any such commitment or agreement.

 

(e)                                  Accredited Investor. 
Phoenix is an accredited investor as that term is defined in Section 501(a) of
Regulation D as promulgated under the Securities Act of 1933, as amended.

 

(f)                                    Unregistered Securities; Limitations on Disposition.  Phoenix understands that the Shares are “restricted
securities” under the Securities Act of 1933, as amended (the “Act”) and are being sold without
registration under federal or any state securities laws (“Securities Laws”) by reason of
specific exemptions from registration and that the Company is relying on the
information given herein in its determination of whether such specific
exemptions are available. Phoenix understands that because the Shares have not
been and will not be registered under the Securities Laws, they cannot be sold
unless and until they are subsequently registered or an exemption from
registration is available. Phoenix acknowledges and understands that the
Company is not under any obligation to register the Shares. Phoenix
acknowledges and understands that the certificates evidencing the Shares will
bear a restrictive legend similar to that set forth in Section 6(g) below.  Phoenix represents that it can afford to hold
the Shares for an indefinite period of time.

 

 

(g)                                 Legends. 
Certificates representing the Shares will bear a restrictive legend
substantially as follows:

 

THE SHARES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”)
AND ARE “RESTRICTED SECURITIES” AS THAT TERM IS DEFINED IN RULE 144 UNDER THE
ACT. THE SHARES MAY NOT BE OFFERED FOR SALE, SOLD OR OTHERWISE TRANSFERRED
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE ACT, THE AVAILABILITY OF
WHICH IS TO BE ESTABLISHED TO THE REASONABLE SATISFACTION OF THE COMPANY.

 

(h)                                 Consents.  Phoenix has
obtained all requisite and required consents in order to acquire the
Shares.  Further, the person signing this
Agreement on behalf of Phoenix has all requisite authority to execute this
Agreement on behalf of Phoenix.

 

(i)                                     Non-Reliance. Phoenix
is not relying on the Company or any representation contained herein with
respect to the tax effect of its investment in the Company.

 

7.                                      Indemnification. 
Phoenix shall indemnify the Company and hold the Company harmless, upon
demand, from and against any losses, damages, expenses or liabilities,
including without limitation reasonable attorneys’ fees and expenses, which the
Company may sustain, suffer or incur arising from or in connection with Phoenix’s
breach of any representation, warranty, covenant, agreement, obligation or
undertaking hereunder.  This indemnity
shall survive the closing of the transaction hereunder. The Company shall
indemnify Phoenix and hold Phoenix harmless, upon demand, from and against any
losses, damages, expenses or liabilities, including without limitation
reasonable attorneys’ fees and expenses, which Phoenix may sustain, suffer or
incur arising from or in connection with the Company’s breach of any
representation, warranty, covenant, agreement, obligation or undertaking
hereunder.  This indemnity shall survive
the closing of the transaction hereunder.

 

8.                                      Relationship.  Nothing herein shall constitute Phoenix, or
its members or managers, as an employee, partner or agent of the Company.  It is understood and agreed that Phoenix is
an independent contractor with respect to the performance of the Services, and
that Phoenix shall perform the Services under the control of the Company as to
the results of the Services only, and not as to the means by which such results
are accomplished.  Phoenix shall not have
the authority to obligate or commit the Company in any manner whatsoever.

 

9.                                      Expenses.  Phoenix shall be solely responsible for all
costs and expenses incurred by Phoenix in connection with providing the
Services, and the Company shall have no obligation or responsibility to
reimburse Phoenix for such costs and expenses.

 

10.                               Notices.  All notices and other communications required
or permitted hereunder shall be in writing and be: (a) delivered
personally by hand or a nationally-recognized overnight courier; (b) mailed
by registered or certified mail (postage prepaid), return receipt requested to
the address set forth below; or (c) sent via email delivery of a “.pdf”
format data file to the appropriate party at the email address set forth below.  All such notices and other written
communication will be effective: (i) if delivered personally or mailed,
upon delivery; and (ii) if sent via email delivery of “.pdf” format data
file, upon confirmation of receipt:

 

If
to the Company:

 

TechniScan Medical Systems, Inc.

3216 South Highland Drive, Suite 200

Salt Lake City, UT 84106

Attn:  David Robinson

Email: drobinson@tsni.com

 

 

If to Phoenix:

 

Phoenix Capital Partners, LLC

1630 Ringling Blvd.

Sarasota, FL 34236

Attn:  David
Rosenberg

Email: drphoenixcapital@yahoo.com

 

11.                               Governing
Law.  The validity, interpretation
and enforcement of this Agreement shall be governed by, and construed and
enforced in accordance with the local laws of the State of Delaware without
giving effect to its conflicts of laws provisions, and to the exclusion of the
law of any other forum, without regard to the jurisdiction in which any action
or special proceeding may be instituted.

 

12.                               Waiver
of Jury Trial.  AS A
MATERIAL INDUCEMENT FOR THIS AGREEMENT, EACH PARTY HEREBY KNOWINGLY,
VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY WAIVES ALL RIGHTS TO A TRIAL BY
JURY OF ANY ISSUES SO TRIABLE.

 

13.                               Entire
Agreement; Amendment.  This
Agreement contains and represents the entire and complete understanding and
agreement concerning and in reference to the transaction hereunder.  The parties hereto agree that no prior
statements, representations, promises, agreements, instructions, or
understandings, written or oral, pertaining to this Agreement, other than those
specifically set forth and stated herein, shall be of any force or effect.  This Agreement may not be, and shall not be
construed to have been modified, amended, rescinded, canceled, or waived, in
whole or in part, except if done so in writing and executed by the parties
hereto.

 

14.                           Non-Assignability;
Binding Effect.  Neither
this Agreement, nor any of the rights or obligations of the parties hereunder,
shall be assignable by any party hereto without the prior written consent of
the other party hereto, which such consent may be granted or withheld in such
other party’s sole and absolute discretion. 
The rights and obligations of this Agreement shall be binding upon and
inure to the benefit of the parties and their respective legal representatives,
successors and permitted assigns.  Nothing
expressed or implied herein shall be construed to give any other person any
legal or equitable rights hereunder.

 

15.                               Severability.  In the event that any of the provisions of
this Agreement, or portions thereof, are held to be unenforceable or invalid by
any court of competent jurisdiction, the validity and enforceability of the
remaining provisions, or portions thereof, shall not be affected thereby.

 

16.                               Section Headings.  The titles to the numbered sections in this
Agreement and the ordering or position thereof are solely for the convenience
of the parties and shall not be used to explain, modify, simplify, or aid in
the interpretation of said covenants or provisions set forth herein.

 

17.                               Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original and all of which taken together shall be deemed to
constitute one and the same.  Signatures
delivered by facsimile transmission or by e-mail delivery of a “.pdf” format
data file, will be given the same legal force and effect as original
signatures.

 

IN WITNESS WHEREOF, this Professional Services Agreement has been duly
executed by the parties hereto as of the date first above written.

 

 

	
  PHOENIX:

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PCOF Partners, LLC, a Delaware
  limited liability company

  	
   

  	
  TechniScan, Inc., a Delaware
  corporation

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ David Rosenberg

  	
   

  	
  By:

  	
  /s/ David Robinson

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  David Rosenberg, Manager

  	
   

  	
  David Robinson, President &
  CEO

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Roger Tichenor

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Roger Tichenor, Manager

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