Document:

Exhibit 10.1

 

AGREEMENT TO ASSIGN ALL SECURITY
INTERESTS, ASSETS

AND LICENSES TO GUARANTORS UPON DEFAULT AND

SATISFACTION OF COMPANY SENIOR DEBT FINANCING

THIS AGREEMENT TO ASSIGN ASSETS
AND LICENSES (“Agreement”)
is made and entered into effective the 11th day of January 2006 by and between ProUroCare Inc., a Nevada
corporation (“the Company”) and (Crown Bank, a Minnesota corporation) (the “Bank”),
in consideration of, and for the sole benefit of the individual respective
guarantors (“Guarantors”) participating in the Company’s pending $6.0 million
senior credit facility financing among
the Company, the Bank and Guarantors, and pursuant to and in accordance with
the terms of conditions of such financing and the debentures, guaranties,
subscription documents and all Bank closing documents executed among the
parties effective the date set forth above.

RECITALS:

1.             Pursuant to an initial and first closing held this date
on a $1,200,000 credit facility executed and delivered to the Company from the
Bank, and to an additional $4,800,000 facility or facilities the Company
intends to establish with Bank (the “Facilities”), the Company has entered into
with the Bank, among other instruments, Commercial Security Agreements (“Security
Agreements”) whereby the Company has granted and pledged to the Bank a security
interest in all of its assets to secure the credit facility; and

2.             Certain individuals have provided credit enhancement to
the Bank and guaranteed the borrowing obligations of the Company to Bank
(previously defined as “Guarantors”), and others will do so under the same
terms and conditions until the senior debt financing is closed; and

3.             The Company has further executed this date Assignment of
License Agreements (“Assignments”) concerning its rights under License
Agreements with CS Medical Technologies, LLC and Profile, LLC (together, “Licenses”).
In these Assignments, and the Security Agreements, the Company has agreed that
upon an event of default not remedied under the Facilities or the Security
Agreement, the Licenses, together with all obligations, rights and remedies
contained therein, and all assets under the Security Agreements, shall be
assigned to Bank; and

4.             As a condition of the Bank providing the credit facility
to the Company, and the Guarantors guarantying such Company loans from the Bank
as a credit enhancement, the Guarantors have required, and the Company and the
Bank had agreed, that in the event of any default, or event of default as
defined under the Facilities or the Security Agreements, and upon the
subsequent full satisfaction of such default or event of default by the
Guarantors, that the Bank, and/or its successors and lawful assigns, shall
immediately assign all of their right, title and interests in the Company’s
assets, technologies and rights under the Security Agreements, Assignments and
Licenses to the Guarantors, Guarantors’ agents, if any, and/or to any
successor, assignee, purchaser or transferee designated by Bank and a majority
in interest of Guarantors (based upon amount of loan guaranteed and pro-rata
basis), or as otherwise directed by the Guarantors or their representatives.

 

 

NOW, THEREFORE, in consideration of the foregoing and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Company agrees as follows:

1.              Unless and until there shall have occurred
and be continuing a default or event of default not remedied under the
Facilities or Security Agreements, the Company retains (and Bank and Guarantors
are deemed to have granted to the Company) an exclusive, non-transferable
sublicense under the Licenses to exercise the Company’s rights under the
License for the Company’s own benefit and account and for none other and an
exclusive interest in all the Company’s assets and collateral under the
Security Agreements. The Company assumes all obligations under the License and
agrees not to sell or assign its interest in, or grant any sublicense under
this sublicense granted to the Company in this paragraph or amend the License,
without the prior written consent of Bank and a majority in interest of
Guarantors or any agent of Guarantors.

2.             Bank hereby unconditionally agrees, upon an a default or
event of default not remedied under the Facilities or Security Agreements, and
a subsequent full satisfaction of such Company default with the Bank by the
Guarantors, to immediately transfer and assign all of the Company’s assets and
interests under its Security Agreements and Licenses, and assign the Licenses,
together with all obligations, rights and remedies contained therein, to the
Guarantors, jointly and severally, and any agent of Guarantors, and to any
successor, assignee, purchaser or transferee designated by Bank and a majority
in interest of Guarantors (based upon amount of loan guaranteed and pro-rata
basis).

3.              The Company represents and warrants that it has
authority to execute the Assignments and that the Assignments have been
consented to by at least the majority of the members of the Company’s Board of
Directors pursuant to Section 12.5 of the Licenses. Said consent shall apply to
the Bank, Guarantors, any agent of Guarantors or any assignee or transferee of
the foregoing parties.

4.             This Agreement shall inure to the benefit and be binding
upon the successors and assigns of the parties hereto.

5.             This Agreement constitutes the full and entire
understanding and agreement between the parties with regard to the subject
matter hereof and may be amended only by a writing signed by the Company, Bank
and all of the Guarantors.

6.             This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall be deemed to constitute one instrument.

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be
duly executed and delivered as of the date and year first written above.

	
  CROWN BANK

  	
  PROUROCARE INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Kevin Howk

  	
   

  	
  By:

  	
  /s/ Maurice Taylor

  	
   

  
	
   

  	
  Kevin Howk

  	
   

  	
  Maurice Taylor

  
	
   

  	
  Its:

  	
  President

  	
   

  	
   

  	
  Its:

  	
  CEOExhibit
10.3

AMENDMENT
#1 TO PROMISSORY NOTE DATED JUNE 1, 2006

BETWEEN PROUROCARE MEDICAL, INC. (“BORROWER”)

AND ROMAN PAULY (“LENDER”)

This Amendment #1 to
Promissory Note dated June 1, 2006 between ProUroCare Medical, Inc. (“Borrower”)
and Roman Pauly (“Lender”) (the “Note”) is made to extend the original due date
of the Promissory Note (August 30, 2006) up to an additional sixty days.

Note Amendments

The clause “PAYMENT TERMS” is hereby deleted and
replaced by the following:

PAYMENT TERMS.  This Note is due and payable
on or before October 29, 2006.  Borrower
will pay Lender at Lender’s address shown above or at such other place as
Lender may designate in writing.

The
following clause is hereby added to the existing terms of the Note:

WARRANT
CONSIDERATION.  As consideration for the extension of payment
terms, Borrower agrees to issue to Lender a 5-year warrant to acquire shares of
ProUroCare Medical Inc. Common Stock at $0.50 per share.  The number of shares subject to this warrant
shall be 417 shares per day for each day the Note remains unpaid beginning
August 31, 2006.

Both parties hereby agree
to the terms of this Amendment #1 as stated above.

EXECUTED this
24th day of August, 2006.

	
  ProUroCare Medical Inc.

  	
  Roman Pauly

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/Maurice R. Taylor II

  	
   

  	
  /s/Roman Pauly

  	
   

  
	
  Maurice R. Taylor II

  	
  Roman Pauly

  
	
  Chairman & CEOExhibit
10.1

CONSULTING
SERVICES AGREEMENT

This Agreement is entered into as of the 1st day of September 2006,  (the “Effective Date”) by and between DynCorp
International LLC (“Company”), 3190 Fairview Park Drive, Falls Church, VA 22042
and General Anthony C. Zinni (“Consultant”), 123 Huntercombe, Williamsburg, VA
23188.  The parties, intending to be
legally bound, hereby agree as follows:

ARTICLE I - TERM OF AGREEMENT

This
Agreement shall commence on September 1, 2006 (the “Effective Date”) and shall
continue until terminated or canceled as provided hereunder.

ARTICLE II - STATEMENT OF WORK

Consultant
shall perform services in accordance with the schedule and statement of work (“Work”)
described in Exhibit A (Statement of Work).

ARTICLE III - PERFORMANCE OF WORK

Consultant shall receive assignments from Herbert J. Lanese or his
designee.

ARTICLE IV - COMPENSATION/PAYMENT/TAXES

A.            COMPENSATION

1.               Compensation for services rendered by
Consultant shall be based upon the rates specified in Exhibit B.

2.               Company shall reimburse Consultant for
reasonable out-of-town travel, including business class for overseas air
travel, provided that Consultant has obtained advance approval for such travel
from Company.  Company shall also
reimburse Consultant for telephone, facsimile, postage, copying, and other
charges required to perform the Work.

 

B.                                     PAYMENT

1.               Consultant shall submit invoices at the end
of each month for services rendered during the month, disbursements and
expenses.  Each invoice shall include
supporting documentation for reimbursable expenses incurred by Consultant.

2.               Company shall pay Consultant’s fee in advance
on the first day of each month.  Invoiced
amounts for reimbursable expenses incurred by Consultant shall be paid by
Company within thirty (30) days after its receipt of a valid invoice.

C.            TAXES

Consultant shall be
responsible for the payment of all federal, state, and local taxes, including but
not limited to, income taxes and payroll taxes, in connection with the
compensation paid by Company.

ARTICLE V - RELATIONSHIP OF PARTIES

In
performing the Work, Consultant is acting as an independent contractor and not
as an employee, agent, or representative of Company. Consultant has no
authority to transact any business in the name of or on account of Company or
otherwise obligate Company in any manner.

ARTICLE VI - PROPRIETARY INFORMATION AND OWNERSHIP OF INFORMATION

A.           During the term of this Agreement and thereafter,
Consultant shall not disclose business, financial, technical or other
information concerning the Company to any third party, including but not
limited to, information concerning its business and/or marketing methods and
operations, its customers or subcontractors, its financial condition, or its
personnel, excepting, however, such information as is generally available to
the public, or authorized for dissemination as part of Consultant’s responsibilities
under this Agreement.

 

B.             All data, proposals,
reports, and other information generated by Consultant under this Agreement
shall become the sole property of Company and shall not be disclosed by
Consultant (in original or copy form) during the term of this Agreement or
thereafter except to the extent specifically authorized by Company.

C.             Consultant shall promptly cease using and
shall return or destroy, at Company’s option, all information and documents
(including all hard copies of documents and copies stored in any computer
memory or storage medium) furnished by Company or generated by Consultant under
this Agreement upon the expiration, termination, or cancellation of this
Agreement, whichever first occurs.

ARTICLE VII - CONSULTANT’S WARRANTIES

Consultant
makes the following warranties to Company:

1.               Consultant has expertise in the field covered
by this Agreement and shall commit time and resources to attain the stated goal
and complete the Work.

2.               This Agreement is not in conflict with any
other agreement or obligation, that Consultant has with any third party.

3.               Consultant shall correct any defects or
errors in the Work identified by Company for 30 days after acceptance of the
Work.

ARTICLE VIII - SERVICES FOR OTHERS

During
the term of this Agreement, Consultant shall not perform similar services for
any third party that would compromise the value of, or be in conflict with, the
Work or deliverables to Company.

ARTICLE IX - NOTICES

All notices and requests given by either party to the other shall be in
writing and sent by facsimile, email or first class mail.

 

ARTICLE X - ASSIGNMENT

Consultant
shall not assign this Agreement or any rights hereunder or delegate the Work or
any of Consultant’s other obligations hereunder to any third party without prior
written consent of Company.

ARTICLE XI - TERMINATION

Either party may
terminate this Agreement by providing 60 day’s advance written notice to the
other party.  In the event this Agreement
is terminated pursuant to this clause, Company may, at its option and expense,
within 10 working days of termination notice, request in writing a written
final report covering all the Work accomplished under this Agreement from date
of execution to date of termination.

Consultant’s
obligations with respect to the confidentiality and warranty provisions of this
Agreement shall survive termination or expiration of this Agreement.

ARTICLE XII - DISPUTES

Company and Consultant shall retain all rights and remedies available
at law or equity, to the extent they are not inconsistent with this Agreement,
in the event of any dispute under this Agreement.

ARTICLE XIII - PUBLICITY

Consultant
shall not disclose the terms and conditions of or publish any information
concerning this Agreement without the prior written consent of Company.

ARTICLE XIV - WAIVER

The
failure of either party to assert any claim or right against the other party
regarding its obligations hereunder, in any one or more instances, shall not
constitute a waiver of such claim or right with respect to future performance
of such obligations and other obligations under the Agreement.

 

ARTICLE XV - COMPLIANCE WITH LAW AND COMPANY STANDARDS OF CONDUCT

Consultant
shall comply in all material respects with all federal, state and local laws
and regulations pertaining to the performance of this Agreement and the Company’s
Standards of Conduct, attached as Exhibit C hereto.  In particular, Consultant acknowledges the obligation
to comply with the Foreign Corrupt Practices Act and the Company’s procedures
and training requirements pertaining to that Act.

ARTICLE XVI - LIMITATION OF LIABILITY

IN
NO EVENT SHALL COMPANY OR CONSULTANT BE LIABLE TO THE OTHER FOR ANY INCIDENTAL,
INDIRECT, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES, OR THIRD PARTY CLAIMS,
ARISING DIRECTLY OR INDIRECTLY FROM THE PERFORMANCE OF WORK UNDER THIS
AGREEMENT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.

ARTICLE XVII - GOVERNING LAW

This
Agreement shall be construed, governed and interpreted in accordance with the
laws, but not the rules relating to the choice of law, of the Commonwealth of
Virginia.

ARTICLE XVIII - ENTIRE AGREEMENT

This
Agreement sets forth the entire agreement between the parties and supersedes
all prior oral and written agreements and understandings between the parties
with respect to the subject matter hereof. 
This Agreement may not be modified or the parties released from their
obligations hereunder except by an instrument in writing signed by an
authorized representative of the parties.

 

 

	
  COMPANY

  	
   

  
	
   

  	
   

  
	
  By:

  	
      /s/ Herbert J. Lanese

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
      President
  & CEO

  	
   

  	
  Date:

  	
  16 August 2006

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  CONSULTANT

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/
  Anthony C. Zinni

  	
   

  	
  Date:

  	
  22 August 2006

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