Document:

Exhibit
10.1

 

ASSET
PURCHASE AGREEMENT

 

This Agreement made this
3rd day of April, 2008, between ProUroCare Medical, Inc., a Nevada
corporation (“Buyer”), and Profile L.L.C., a Delaware limited liability company
(“Seller”).

 

RECITALS

 

1.                                      Seller owns certain patents, patent
applications and know-how (“Assets”).

 

2.                                      Seller desires to sell and Buyer desires to
purchase those certain Assets of Seller in accordance with the terms and
conditions contained herein.

 

AGREEMENTS

 

1.                                      ASSETS
TO BE PURCHASED.  Buyer shall
purchase and Seller shall sell the Assets set forth on Exhibit A.

 

2.                                      PURCHASE
PRICE.    The purchase price for the Assets to be
purchased shall be equal to the sum of Three Hundred Thousand Dollars
($300,000.00).

 

3.                                      PAYMENT
OF PURCHASE PRICE.   On the Closing
Date, Buyer shall pay Seller One Hundred Fifty Thousand Dollars ($150,000.00),
by check, and a Promissory Note in the amount of One Hundred Fifty Thousand
Dollars ($150,000.00) in the form substantially as set forth in Exhibit D.

 

4.                                      REPRESENTATIONS
AND WARRANTIES OF SELLER.   Seller
hereby represents and warrants to Buyer as follows:

 

(a)           Seller is an LLC duly organized,
validly existing and in good standing under the laws of the State of Delaware,
and has full corporate power and authority to enter into and perform its
obligations under this Agreement.  All
documents executed and to be executed by Seller and delivered in accordance
with the terms of this Agreement have been duly authorized and are and will be
valid obligations of Seller, enforceable in accordance with their respective
terms.

 

(b)           Seller owns the Assets to be sold
hereunder and has good and marketable title to such Assets, free and clear of
all liens, encumbrances and charges whatsoever, and Seller has the free and
unrestricted right to transfer and assign such assets to Buyer in accordance
with the terms of this Agreement without the consent or approval of any other
person or party.

 

(c)           This Agreement, the transactions
contemplated hereby and the performance hereof by Seller do not and will not
result in the violation of any contract, undertaking or agreement to which
Seller is a party or is bound.

 

 

(d)           There is no litigation or proceeding
pending or, to the best knowledge of Seller, threatened against or relating to
the Assets, nor does Seller know of, or have any reasonable grounds to know of,
any basis for any such action.

 

(e)           The Assets listed on Exhibit A
comprise all the patents, patent applications, and know-how owned, controlled,
or possessed by or to which Seller has a license thereto as of the date of this
Agreement, to the knowledge of Seller.

 

(f)            The Assets listed on Exhibit A
comprise all the patents, patent applications and know-how that Seller owns or
has rights to which ArMed, Inc. or ArMed L.L.C. previously had an interest,
to the knowledge of Seller.

 

The foregoing
representations and warranties shall be true at the time of execution of this
Agreement and on the Closing Date, and shall survive the execution and delivery
of this Agreement and the Closing. 
Seller hereby agrees to indemnify and hold harmless Buyer from any
losses, costs or expenses (including reasonable attorneys’ fees, whether or not
suit is brought) of any nature that Buyer incurs as a result of a breach of any
of the foregoing representations and warranties.

 

5.                                      REPRESENTATIONS
AND WARRANTIES OF BUYER.   Buyer
hereby represents and warrants to Seller as follows:

 

(a)           Buyer is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Nevada and has full corporate power and authority to enter into and perform its
obligations under this Agreement.   All
documents executed and to be executed by Buyer and delivered in accordance with
the terms of this Agreement have been duly authorized and are and will be the
valid obligations of Buyer enforceable in accordance with their respective
terms; and

 

(b)           There is no litigation or proceeding
pending or, to the best knowledge of Buyer, threatened against Buyer which
questions the authority of Buyer to enter into or perform its obligations under
this Agreement or which, if determined adversely to Buyer, would affect its
ability to enter into or perform its obligations under this Agreement.

 

The foregoing
representations and warranties shall be true at the time of execution of this
Agreement and on the Closing Date and shall survive the execution and delivery
of this Agreement and the Closing.  Buyer
hereby agrees to indemnify and hold harmless Seller from any losses, costs or
expenses (including reasonable attorneys’ fees, whether or not suit is brought)
that Seller incurs as a result of a breach of any of the foregoing
representations and warranties.

 

6.                                    CONDITIONS
TO OBLIGATIONS OF BUYER.   The
obligations of Buyer hereunder shall be subject to the representations and warranties
of Seller as set forth in Section 4 hereof 

 

 

being true and correct on
the Closing Date.  If any of the
foregoing conditions are not performed or observed on or before the Closing
Date, Buyer may, at its option and in its discretion, either waive the
performance or observance of any or all of such conditions or terminate this
Agreement by notice to Seller, in which event Buyer shall have no further
obligations or liabilities under this Agreement.

 

7.                                      CONDITION
TO OBLIGATIONS OF SELLER.  The obligations
of Seller hereunder shall be subject to the representations and warranties of
Buyer set forth in Section 5 hereof being true and correct on the Closing
Date.  If the foregoing condition is not
performed or observed on or before the Closing Date, Seller may, at its option
and in its discretion, either waive the performance or observance of such
condition or terminate this Agreement by notice to Buyer, in which event Seller
shall have no further obligations or liabilities under this Agreement.

 

8.                                      SELLER’S
LIABILITIES NOT ASSUMED.   Buyer is
purchasing certain specified Assets of Seller but is not assuming Seller’s
liabilities.  Seller shall be and remain
responsible for all liabilities and obligations of Seller, including without
limitation, all federal, state and local taxes, and any and all secured and
unsecured liabilities of Seller.

 

9.                                      CLOSING
DATE.   The Closing Date of the
purchase and sale contemplated hereby shall, subject to the conditions hereof,
occur on April 3, 2008, or such other date as Seller and Buyer shall agree
(the “Closing Date”) at such time and such place in Minneapolis, Minnesota, as
Seller and Buyer shall mutually determine. 
On the Closing Date, Buyer shall deliver to Seller the purchase price as
called for by Section 3 hereof.  On
the Closing Date, Seller shall deliver the following to Buyer:

 

(a)           A bill of sale transferring and
assigning to Buyer all of the Assets sold hereunder in the form substantially
as set forth in Exhibit B;

 

(b)           An assignment assigning to Buyer all
of the Assets transferred hereunder in the form substantially as set forth in Exhibit C.

 

10.                               NOTICES.   All notices required hereunder shall be in
writing and shall be delivered to the parties as follows:

 

	
  To Seller:

  	
   

  	
  Stan Graves

  
	
   

  	
   

  	
  Graco
  Resources, Inc.

  
	
   

  	
   

  	
  6930 Cahaba Valley
  Road, Suite 200

  
	
   

  	
   

  	
  Birmingham, AL 35242

  
	
   

  	
   

  	
   

  
	
  To Buyer:

  	
   

  	
  Rick Carlson

  
	
   

  	
   

  	
  ProUroCare
  Medical, Inc.

  
	
   

  	
   

  	
  5500 Wayzata Boulevard
  #310

  
	
   

  	
   

  	
  Golden Valley, MN 55416

  

 

Such addresses may be
changed by written notice to the other party. 
Such notices shall be effective upon receipt three business days after
mailing (if delivered by registered or 

 

 

certified mail); or one
business day after mailing (if delivered by overnight courier service).

 

11.                               AGREEMENT.    This
agreement contains the entire agreement of the parties concerning the subject
matter hereof, and supersedes all prior communications, understandings and
agreements.  No representations, promises
or agreements, oral or otherwise, not contained herein shall be of any force or
effect.

 

12.                               GOVERNING
LAW; JURISDICTION.    This Agreement
shall be governed by and construed under the laws of the State of Minnesota and
shall be binding upon and inure to the benefit of Seller and Buyer and their
respective heirs, successors and assigns. 
Both Seller and Buyer hereby agree that the courts of the State of
Minnesota shall have jurisdiction of any and all disputes arising hereunder.

 

	
   

  	
  PROFILE L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Stanley L. Graves

  
	
   

  	
   

  	
  Stan Graves

  
	
   

  	
  Its:

  	
  Representative

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PROUROCARE MEDICAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Rick Carlson

  
	
   

  	
   

  	
  Rick Carlson

  
	
   

  	
  Its:

  	
  President

  

 

 

EXHIBIT A

 

List of Patents/Applications

 

	
  Patent or Application No.

  	
   

  	
  Title

  	
   

  	
  Status

  
	
  U.S. 5,860,934

  (CIP of App. 07/994,109)

  	
   

  	
  Method and Device for
  Mechanical Imaging of Breast

  	
   

  	
  Issued 01/19/99

  
	
  EP 97905986.2

  	
   

  	
  Method and Device for
  Mechanical Imaging of Breast

  	
   

  	
  Filed 08/31/98

  
	
  Japan 09-530984

  	
   

  	
  Method and Device for
  Mechanical Imaging of Breast

  	
   

  	
  Filed 08/27/98

  
	
  U.S. 5,833,633

  (CIP of 5,524,636)

  	
   

  	
  Device for Breast
  Haptic Examination

  	
   

  	
  Filed 11/03/97

  Issued 11/10/98

  
	
  U.S. 5,785,663

  (CIP of 5,524,636)

  	
   

  	
  Method and Device for
  Mechanical Imaging of Prostate

  	
   

  	
  Filed 02/27/96

  Issued 07/28/98

  
	
  EP 97907654.4

  	
   

  	
  Method and Device for
  Mechanical Imaging of Prostate

  	
   

  	
  Filed 09/10/98

  
	
  JP 09-530983

  	
   

  	
  Method and Device for
  Mechanical Imaging of Prostate

  	
   

  	
  Filed 08/27/98

  
	
  U.S. 5,836,894

  (CIP of 5,524,636)

  	
   

  	
  Apparatus for Measuring
  Mechanical Parameters of the Prostate and for Imaging the Prostate Using Such
  Parameters

  	
   

  	
  Filed 06/10/97

  Issued 11/17/98

  
	
  U.S. 5,922,018

  (CIP of 5,524,636)

  	
   

  	
  Method for Using a
  Transrectal Probe to Mechanically Image the Prostate Gland

  	
   

  	
  Filed 06/10/97

  Issued 07/13/99

  
	
  U.S. 5,524,636

  	
   

  	
  Method and Apparatus
  for Elasticity Imaging

  	
   

  	
  Filed 12/21/92

  Issued 06/11/96

  
	
  U.S. 5,265,612

  	
   

  	
  Intracavity Ultrasonic
  Device for Elasticity Imaging

  	
   

  	
  Filed 12/21/92

  Issued 11/30/93

  
	
  U.S. 6,142,959

  	
   

  	
  Device for Palpation
  and Mechanical Imaging of the Prostate

  	
   

  	
  Filed 07/22/99

  Issued 11/07/00

  
	
  PCT/US00/19756

  	
   

  	
  Device for Palpation
  and Mechanical Imaging of the Prostate

  	
   

  	
  Filed 07/21/00

  
	
  U.S. 09/843,056

  	
   

  	
  Apparatus and Method
  for Mechanical Imaging of Breast

  	
   

  	
  Filed 04/26/01

  
	
  PCT/US01/13551

  	
   

  	
  Apparatus and Method
  for Mechanical Imaging of Breast

  	
   

  	
  Filed 04/26/01

  
	
  U.S. 60/200,433

  	
   

  	
  Apparatus and Method
  for Mechanical Imaging of Breast

  	
   

  	
  Filed 04/28/00

  
	
  U.S. 09/819,419

  	
   

  	
  Real Time Mechanical
  Imaging of the Prostate

  	
   

  	
  Filed 03/28/01

  

 

LIST OF KNOW-HOW

 

All unpatented
inventions, discoveries, processes, devices, documents, techniques, practices,
methods, knowledge, skill, experience, bench testing information and other
information and data owned or possessed by or licensed to Seller that relate,
pertain or are connected, in any way, to the above list of
patents/applications.

 

 

EXHIBIT B

 

BILL OF SALE

 

FOR VALUE RECEIVED,
PROFILE L.L.C., a Delaware L.L.C. (“Seller”),
in consideration of the purchase price payable to Seller by PROURO CARE MEDICAL INC., a Nevada corporation (“Buyer”),
pursuant to the Asset Purchase Agreement between Seller and Buyer dated April       ,
2008, does hereby sell, transfer, and assign to Buyer, its successors and
assigns, forever, the patents and patent applications set forth on Exhibit A.  Seller, for itself and its successors and
assigns, covenants and agrees to and with Buyer, and its successors and
assigns, that Seller is the lawful owner of such patents and patent
applications and has the full right to sell the same, and that the same are
free from all encumbrances.   Seller will
warrant and defend the sale of such patents and patent applications hereby made
unto Buyer, its successors and assigns, against all and every person and
persons whomsoever, lawfully claiming the whole or any part thereof.

 

IN WITNESS WHEREOF,
Seller has duly executed this Bill of Sale this
       day of April, 2008.

 

	
   

  	
  PROFILE L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stanly L. Graves

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Representative

  

 

 

EXHIBIT C

 

ASSIGNMENT

 

WHEREAS, Profile L.L.C., a Delaware limited liability
company, having a place of business at Birmingham, Alabama (“Assignor”), is the
owner by Assignment of the patents and patent applications identified on Exhibit A
hereto (the “Patents” and “Patent Applications”).

 

WHEREAS, ProUroCare Medical, Inc., a Nevada
corporation, having a place of business at Minneapolis, Minnesota (“Assignee”),
has acquired the entire right, title and interest in and to said Patents and
Patent Applications.

 

NOW,
THEREFORE, for good and
valuable consideration, the receipt of which is hereby acknowledged, Assignor
hereby sells, assigns and transfers to Assignee, its successors and assigns,
the entire right, title and interest in and to said Patents and Patent
Applications, including the inventions therein described and claimed, all
rights for past infringement thereof, all renewals, reissues, extensions,
substitutions, continuations, continuations-in-part, or divisions thereof, and
all foreign applications based thereon, and the right to apply for patents in
foreign countries in its own name, including the right to claim any priority
rights to which such foreign applications are entitled under international
conventions, treaties, or otherwise.

 

	
   

  	
  Profile
  L.L.C. (Assignor)

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Stanley L. Graves

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its

  	
  Manager

  

 

	
  STATE
  OF ALABAMA

  	
  )

  
	
   

  	
  )
  ss.

  
	
  COUNTY
  OF JEFFERSON

  	
  )

  

 

On
this 3rd day of April, 2008, before me, a notary public in and for said county,
appeared Stanley L. Graves, Manager of Profile, LLC, the person who signed this
instrument, who acknowledged that he/she signed it as a free act on behalf of
said company with authority to do so.

 

	
   

  	
  /s/
  Rosie Toibero Holman

  
	
   

  	
  Rosie
  Toibero Holman, Notary Public

  
	
   

  	
  My
  commission expires January 19, 2009

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ProUroCare
  Medical, Inc.
  (Assignee)

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Richard C. Carlson

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its

  	
  CEO

  

 

 

	
  STATE
  OF MINNESOTA

  	
  )

  
	
   

  	
  )
  ss.

  
	
  COUNTY
  OF HENNEPIN

  	
  )

  

 

On
this 3rd day of April, 2008, before me, a notary public in and for said county,
appeared Richard Carlson of ProUroCare Inc., the person who signed this
instrument, who acknowledged that he/she signed it as a free act on behalf of
said company with authority to do so.

 

	
   

  	
   

  
	
   

  	
  /s/
  Anne E Bodurtha

  
	
   

  	
  Notary
  Public

  
	
   

  	
  My
  commission expires Jan 31, 2012Exhibit
10.2

 

SECURITY
AGREEMENT

 

 

	
  DATE:

  	
  April 3, 2008

  	
   

  
	
   

  	
   

  	
   

  
	
  PARTIES:

  	
  Profile L.L.C.

  	
   

  
	
   

  	
  6930 Cahaba Valley Road, Suite 200

  	
   

  
	
   

  	
  Birmingham, AL 35242

  	
  (“Profile”)

  
	
   

  	
   

  	
   

  
	
   

  	
  ProUroCare Medical, Inc.

  	
   

  
	
   

  	
  5500 Wayzata Boulevard #310

  	
   

  
	
   

  	
  Golden Valley, MN 55416

  	
  (“ProUroCare”)

  
	
   

  	
  Cleveland, OH 44122 (the “Corporation”)

  

 

AGREEMENTS:

 

FOR GOOD AND VALUABLE CONSIDERATION, the
receipt and sufficiency of which are hereby acknowledged, Profile (the “Secured
Party”), and ProUroCare (the “Debtor”) agree as follows:

 

1.             Grant of Security Interest
and Collateral.  In order to secure payment and performance of
the debt, liability and obligation evidenced by the Promissory Note issued by
the Debtor to the Secured Party dated April 3, 2008 (the “Note”)
which arises out of that certain Asset Purchase Agreement dated April 3,
2008 (the “Purchase Agreement”) for patents/applications and know-how (the “Assets”)
described on Exhibit A thereto. 
Debtor hereby grants to the Secured Party a security interest (the “Security
Interest”) in the Assets.

 

2.             Representations, Warranties
and Agreements.  Debtor represents, warrants and agrees to and
with each of the Secured Party that:

 

(a)           Debtor is duly incorporated, validly existing and in good standing
under the laws of the state of Nevada. 
This Security Agreement has been duly and validly authorized by all
necessary corporate action.  Debtor has
full power and authority to execute this Agreement, to perform Debtor’s
obligations hereunder and to subject the Collateral to the Security Interest
granted to the Secured Party.

 

(b)           Debtor has and will maintain absolute title to the Assets free and
clear of all security interests, liens and encumbrances, and will defend the
Assets against all claims or demands of all persons other than the Secured
Party.

 

3.             Events of Default.  The
occurrence of any Event of Default, as defined in the Note, shall constitute an
Event of Default hereunder.

 

4.             Remedies Upon Event of
Default.  If any Event of Default shall occur and be
continuing, then the Secured Party may exercise any one or more of the
following rights or remedies:  (i) exercise
and enforce any or all rights and remedies available to the Secured Party 

 

 

under the Promissory Note; and (ii) exercise or enforce any or all
other rights or remedies available to the Secured Party by law or agreement
against the Assets, against Debtor or against any other person or property.

 

THE PARTIES have executed this Security Agreement the
day and year first above written.

 

 

	
  Secured Party:

  	
   

  	
  PROFILE, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Stanley L. Graves

  
	
   

  	
   

  	
  Name:

  	
  Stanley L. Graves

  
	
   

  	
   

  	
  Title:

  	
  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Debtor:

  	
   

  	
  PROUROCARE MEDICAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Richard Carlson

  
	
   

  	
   

  	
  Name:

  	
  Richard Carlson

  
	
   

  	
   

  	
  Title:

  	
  CEO

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