Document:

EX-10.1

	 	 	 
	November 12, 2009

	Mr. David Robinson

	 	

	TechniScan Medical Systems, Inc.

	3216 South Highland Drive, Suite 200

	Salt Lake City, Utah

Re:

	 	84106

Manufacturing Letter of Intent

Dear Dave:

Esaote S.p.A. (“Esaote”) is pleased to provide you with this indications of terms (“Letter of
Intent”) for a production and supply agreement with TechniScan Medical Systems, Inc. (“TechniScan”)
concerning the manufacturing of the TechniScan’s SVARA device (f/k/a whole breast ultrasound
device) (the “Product”).

1. Intent. Except as provided in Section 6 hereof, this Letter is a non-binding
expression of intent and any obligations of Esaote and TechniScan hereunder are contingent upon the
negotiation, execution and delivery of a definitive agreement satisfactory to both Esaote and
TechniScan for the production and supply of the Product and related matters (“Agreement”). It is
the expectation of the parties that they will cooperate in the further development of the Product
pursuant to the OEM Supplement dated November 10, 2009 (the “OEM Supplement”) and Esaote and
TechniScan will jointly evaluate the option for Esaote to become TechniScan’s primary and/or
exclusive manufacturer of the Product. Esaote expects this evaluation to occur between April and
September 2010. Following a decision by Esaote that it wishes to become the manufacturer of the
Product, and agreement of TechniScan, the Agreement will be prepared by Esaote’s counsel and will
contain provisions which are normal in this type of transaction, including but not limited to, the
following:

a. Pre-Production Expenses of Esaote. Esaote shall produce the Product according to
the specifications provided by TechniScan. TechniScan recognizes that Esaote will be required to
make an investment in tooling and equipment, as well as staff time, prior to the agreement, to
produce the Product and may incur other expenses in connection with its evaluation of whether it
will manufacture the Product and other issues related to the Product. Accordingly, TechniScan will
reimburse Esaote’s expenses incurred in the evaluation and/or preparation for the manufacture of
the Products if, for any reason, the parties do no execute the Agreement on or before October 1,
2010. The reimbursement due Esaote shall include personnel and out-of-pocket expenses in a manner
consistent with the OEM Supplement; provided that Esaote provides to TechniScan any tooling and
equipment that was developed or purchased by Esaote in connection therewith. If the Agreement is
executed on or before October 1, 2010 or before the reimbursement is paid due to any extension of
the terms contained in this Letter of Intent, then Esaote shall be reimbursed only for these costs
to the extent provided in the Agreement.

b. Techniscan sales in the United States. It is expected that Esaote will transfer the
manufactured Products to Techniscan at a “transfer price” based on the transfer price calculation
in the current Distribution Agreement between the parties dated February 11, 2008 (the
“Distribution Agreement”) which is estimated at a 40% gross margin. Esaote and TechniScan shall
agree upon a “base cost” for the system for the calculation of the 40% gross margin. Under the
Agreement, Esaote would be expected to work to reduce the base cost with worldwide sourcing,
effective quantity buying, and use of their source selection and qualification and should receive a
higher margin percentage of any cost benefit that results. 

c. Esaote sales in Europe. It is expected that the Distribution Agreement will be
amended to enable Esaote to market the Product under its own brand and to provide that Esaote will
pay a license fee to Techniscan calculated as a percentage of Esaote’s revenue in Europe rather
than to pay determined transfer price provided in the distribution Agreement. 

d. Further Development of the Product. It is expected that TechniScan shall work to
increase the effectiveness and value of the system and shall receive a higher license percentage
for any increase in sales price benefit that result from such efforts.

2. Timing. It is not expected that the Agreement will not be negotiated until
June 2010 or later and only following Esaote’s final determination that it wishes to manufacture
the Product as described in Section 1 hereof.

3. Exclusivity. For the period from the date of this letter until the earlier to
occur of (i) termination of the Letter of Intent in accordance with Section 5 or (ii) the date on
which the Agreement is executed, TechniScan will, not directly or indirectly, encourage,
facilitate, solicit, discuss, initiate, or participate in discussions or negotiations with, or
encourage or respond to any inquiries, proposals, bids, or indications of interest by any person or
group other than Esaote or Esaote’s representatives, employees, agents concerning the transactions
proposed herein under which Esaote will manufacture the Product.

4. Expenses. Except as otherwise provided herein in Section 1(a) hereof, the parties
hereto will bear their respective expenses in connection with preparing for and consummating the
transaction contemplated by this Letter of Intent, and in conducting any due diligence
investigation contemplated hereunder.

5. Termination. Either party may terminate this Letter of Intent at any time after
the Effective Date or thereafter upon thirty (30) business days written notice to the other party.

6. Not a Binding Contract. This Letter of Intent does not constitute a binding
contract between the parties hereto and is intended only as an expression of their intent with
respect to working together to negotiate the Agreement. However, the provisions contained in
Section 1(a), Section 3, Section 6 and Section 7 will be binding on the parties hereto.

7. Confidentiality.

(a) The terms and existence of this Letter of Intent will remain confidential, and
neither Esaote, TechniScan, nor any of their respective affiliates or representatives will
disclose to any third party that Esaote and TechniScan are involved in discussions or
negotiations regarding a proposed transaction, without the prior written consent of the
other, unless required, in the opinion of legal counsel, to be disclosed by law, in which
case the parties will discuss the terms of such disclosure prior to its release.
Notwithstanding the foregoing, Esaote may discuss the proposed transaction with its
shareholders, directors and existing employees of the business. TechniScan may discuss the
proposed transaction with shareholders, directors and existing employees of the business as
well as with parties engaged in due diligence of the Company for the purpose of continuing
financing. In all cases Esaote shall be referenced with questions being referred to Dr.
Luigi Satragno for any required clarification.

(b) Each of Esaote and TechniScan agrees to retain in confidence all confidential
information relating to and provided by Esaote, on the one hand, and TechniScan, on the
other hand, and will not, directly or indirectly, use or disclose to others (other than its
attorneys, accountants, or others in a confidential relationship with it) or intentionally
permit the use or disclosure of any such confidential information for any purpose not
related to the transaction contemplated by this Letter of Intent. In the event the proposed
transaction is not consummated, each such party agrees to return upon request to the other
party all documents containing confidential information relating to and provided by the
other party, and agrees to so return or certify destruction of all copies of any such
documents and all notes, memoranda or other documents containing or reflecting any such
confidential information.

(c) For the purposes of this Letter of Intent and the Agreement, confidential shall
not include any information that:

i) Was or becomes generally known to the public by means other than a breach by the
acquiring party of a contractual, legal, or fiduciary duty of confidentiality owed to the
disclosing party, its affiliates, its subcontractors, or any of their representatives;

ii) Is in the lawful possession of the acquiring party prior to acquisition as a
result of this Letter of Intent or the Agreement;

iii) Was or becomes available to the acquiring party on a nonconfidential basis from a
third person that is not bound by any contractual, legal, or fiduciary duty of
confidentiality to the disclosing party, its affiliates, or the representatives of the
disclosing party or its affiliates; or

iv) Is developed entirely by representatives of the acquiring party who have no access
to the disclosing party’s confidential information.

8. Notices. All notices authorized or required hereunder will be given by registered
or certified mail, return receipt requested and postage prepaid, or by hand delivery, in each case,
addressed to the party to whom the notice is given as follows:

Mr. David Robinson

TechniScan Medical Systems, Inc.

3216 South Highland Drive, Suite 200

Salt Lake City, Utah 84106

Dr. Luigi Satragno

Esaote S.p.A.

Via A. Siffredi, 58

1153 Genova, Italy

9. Governing Law and Venue. This Agreement shall be construed under and governed by
the laws of the State of New York, U.S.A. The Parties agree that the proper venue for any legal
proceeding between them shall be: (i) if the proceeding is initiated by TechniScan: Genoa, Italy;
and (ii) if the proceeding is initiated by Esaote: Salt Lake City, Utah U.S.A. The Parties hereto
do hereby waive any right to object to the venue of any such proceeding.

10. Expiration. This Letter of Intent will terminate on November 30, 2009, if not
agreed to and accepted by TechniScan. If the foregoing is acceptable, please indicate the same by
executing and returning the enclosed counterpart of this Letter of Intent. If you have any
questions or comments, please feel free to contact me.

Regards,

/s/ Fabrizio Landi

	 	 	Esaote S.p.A

Fabrizio Landi

1

	 	 	 
	Approved:

	 	

	TechniScan Medical Systems, Inc.:

	By:

	 	/s/ David C. Robinson
	
 
	 	 
	Title:

	 	President and CEO
	
 
	 	 
	Date:

	 	       November 12, 2009     
	
 
	 	 

2EX-10.2

SUPPLEMENT NUMBER ONE TO

ORIGINAL EQUIPMENT MANUFACTURING AGREEMENT

AND ENGINEERING SUPPORT AGREEMENT

between

Esaote S.p.A., a company organized under the laws of the Republic of Italy and with registered seat
in Genova, Italy (hereinafter referred to as “Esaote”)

 — of the one Party -

TechniScan, Inc., a Utah corporation (“TS Utah”) through its successor in interest, TechniScan,
Inc., a Delaware corporation (hereinafter referred to as “TechniScan”)

 — of the other Party -

Esaote and TechniScan are hereinafter referred to individually as a “Party” and collectively
as the “Parties”

Recitals

WHEREAS, Esaote and TS Utah entered into that certain Original Equipment Manufacturing with an
Effective Date of 11 February 2008 (the “Agreement”);

WHEREAS, TechniScan, as the successor-in-interest to TS Utah, is now a party to the Agreement;

WHEREAS, the Parties wish to supplement certain provisions under the Agreement and to provide for
the provision of additional services by Esaote in consideration for the additional consideration
provided in this Supplement Number One (the “Supplement”);

WHEREAS, on or about October 9, 2009, TechniScan Utah instituted a series of transactions
consisting of: (i) a conversion of its Series E Preferred Stock (of which Esaote owns 3,333,334
shares) into common stock of TechniScan Utah at the rate of 1.2 shares of common stock for each
share of Series E Preferred Stock; (ii) the conversion of 500,000 warrants to purchase common stock
of TechniScan Utah at $0.75 per share held by Esaote into 250,000 shares of common stock with no
additional consideration; (iii) a 2 for 1 split of the foregoing TechniScan Utah common stock held
by Esaote; (iv) the investment of 1,045,000 in TechniScan Utah pursuant to the Private Placement;
(v) a merger of TechniScan Utah with a wholly owned subsidiary of Castillo, Inc. in which the
shareholders of TechniScan Utah will own at least 90% of Castillo, Inc. following such merger;
(vi) a change of the name of Castillo to TechniScan, Inc. in the State of Delaware and (vii) a
further raise of capital to fund TechniScan’s operations through 2010 (all of the foregoing
transactions collectively constituting the “Transactions”).

WHEREAS, TechniScan has requested that ESAOTE provide additional components, development services
and miscellaneous costs to support the further development of the Products as proposed in Annex 1
hereto (the “Supplemental Support”);

WHEREAS, Esaote and TechniScan have agreed that Esaote shall provide the Supplemental Support
valued at the sum of up to One Million Eight Thousand Four Hundred Seventeen Dollars ($1,008,417)
(the “Supplemental Amount”) and Esaote shall receive either additional shares of common stock or a
payment from TechniScan, as provided herein;

WHEREAS, Esaote began providing the Supplemental Support on or about October 1, 2009.

NOW, THEREFORE, the Parties enter into this Supplement as follows:

Article 1

Supplemental Services

Esaote shall provide the Esaote system components, development services as outlined in Annex 1
attached hereto and be as outlined below:

1.1. Esaote will provide the following engineering support services, Esaote Products and Modified
Esaote Products:

(a) the continuing modification of the Esaote Product into the Modified Esaote Product;

(b) the supply of the Modified Esaote Product and a non-exclusive license to the executable
version of the related software exclusively for incorporation by TechniScan into the Products;

(c) the contribution of engineering and design support and original equipment manufacturing
prototype equipment and supplies necessary to incorporate the Modified Esaote Products into the
Products and technical assistance related to the completion and manufacture of the Products
incorporating the Modified Esaote Products;

(d) the supply of spare parts relevant to the Modified Esaote Products; and

(e) the technical assistance on the Modified Esaote Products and spare parts including
training in the service, installation and application of Modified Esaote Product, to TechniScan’s
designated technical personnel.

1.2. Except as expressly provided in the budget contained in Annex 1 with regard to travel
expenses and the costs of its own personnel, Esaote shall not be required to pay any amounts to any
third party or to make advances to or on behalf of TechniScan. If the actual value of the
Supplemental Services is less than the amounts estimated on Annex 1, Esaote shall not have any
obligation to provide any consideration or compensation in respect of such shortfall. Furthermore,
Esaote shall be permitted to cease providing Supplemental Services once it determines, in its
reasonable judgment, that the value of the Supplemental Services equals or exceeds the Supplemental
Amount.

1.3 In consideration of the Supplemental Services, Esaote shall receive, at Esaote’s election,
either (a) additional shares of common stock of TechniScan in an amount equal to the Supplemental
Amount as determined once the Supplemental Services are completed or terminated (the “Additional
Shares”) or (b) payment in cash in the amount of the Supplemental Services as determined herein and
in the Agreement. The choice of stock or cash shall be determined by Esaote after April 2, 2010
but before July 2010. The Parties must mutually agree on the value of the Additional Shares to be
used to pay for the Supplemental Services. If such amount cannot be agreed upon by the Parties,
then Esaote shall be paid in cash rather than in capital stock.

1.4 TechniScan will provide a complete business plan to Esaote as soon as practicable after the
date of this Supplement.

Article 2

Progress Toward Completion of Contemplated Transactions

It is expressly acknowledged and agreed that the progress toward and realization of each of the
enumerated steps of the Transactions to the reasonable satisfaction of Esaote shall be a continuing
condition precedent to Esaote’s continuing delivery of the Supplemental Support provided herein.

2.1. Upon request, TechniScan shall provide a written or oral update on the status of the
Transactions to Esaote or its representatives or counsel, including Gerald Richardson and/or
Esaote’s counsel, Baker & Daniels LLP.

2.2. If Esaote determines that any one or more steps of the Transactions or Phase 2 of the Program
(as defined below) are not progressing to its satisfaction, it shall provide written notice thereof
to TechniScan by email or fax to the attention of David Robinson or any other representative
appointed by TechniScan to accept such communications.

2.3. TechniScan shall, within twenty business days of its receipt of the notice from Esaote
referenced above, provide a written update on the status of the Transactions or Phase 2 of the
Program, including such information or documents which Esaote may reasonably request.

2.4 If Esaote is not satisfied with the information received from TechniScan, it may either
suspend the Supplemental Services or terminate this Supplement by providing a second written notice
to TechniScan within twenty business days of its receipt of the update from TechniScan pursuant to
Section 2.3 hereof. If Esaote has not received the response required under Section 2.3, it may
suspend the Supplemental Services until such time that it is satisfied with the response of
TechniScan. If Esaote incurs incremental expenses as a result of the suspension and resumption of
the Supplemental Services, such incremental expenses shall be included with the costs of the
Supplemental Services and shall count towards Esaote’s maximum obligations hereunder.

2.5 If Esaote terminates this Supplement as provided in this Article 2, it shall determinate the
value of the Supplemental Services provided up to the date of termination. Within 45 days of
termination, Esaote shall prepare and submit an invoice in respect of the Supplemental Services
rendered and shall stipulate whether it wishes to receive the a pro rata portion of the Additional
Shares (determined as a ratio of the value of the Supplemental Services provided relative to fully
amount of the Supplemental Amount) or a payment in cash from TechniScan in the amount of the
supplemental services rendered. If Esaote elects to receive capital stock in payment of the
Supplemental Services, the Parties shall determine the value of the Additional Shares pursuant to
Section 1.3 hereof. TechniScan shall pay the amount due in respect of the Supplemental Services
within thirty (30) days of receipt of Esaote’s invoice.

Article 3

Intellectual Property Issues

3.1. The Parties agree that the project plan to be included in Annex 1 shall set forth the
additional contribution to the Program by Esaote (“Phase 2 of the Program”) and sets out inter
alia:

• the contribution in terms of technology, know-how, manpower, materials,
assistance, etc. of each of the Parties;

• the time schedule for development, sample production, tests and relevant
milestones which are necessary to periodically assess and verify the results from time to time
obtained.

3.2. The intellectual property rights, including Program Rights developed through the continuation
of the Program shall be as provided in the Agreement.

Article 4

Term; No Amendment to the Agreement

4.1. Term

This Supplement shall be effective upon execution hereof and shall continue in effect for the then
remaining term of the Agreement; provided that the termination of the Supplemental Services by
Esaote shall not terminate the Agreement, except as otherwise indicated by Esaote when permitted to
terminate the Agreement pursuant to the terms thereof.

4.2. No Amendment to Agreement

4.2.1 The provisions of this Agreement are intended to be supplemental to the
provisions contained in the Agreement and this Supplement is not intended to amend the
Agreement except as expressly provided herein.

4.2.2 If at any time this Supplement is found to be conflicting with any express
provision contained in the Agreement, then the conflicting provision contained in this
Supplement shall be deemed to be controlling over the conflicting provision contained
in the Agreement.

	4.3.	 	TechniScan Acknowledgement

TechniScan acknowledges and agrees that it is the successor-in-interest to TS Utah and TechniScan
hereby acknowledges that it has assumed all of the rights and obligations of TS Utah existing
under the Agreement and all of its other agreements involving Esaote.

	4.4.	 	Effect of Termination

4.4.1 This Supplement shall be deemed to be terminated if Esaote terminates its
obligations to provide the Supplemental Services as provided herein.

4.4.2 The termination of the Agreement shall terminate Esaote’s obligations to provide
the Supplemental Services beginning on the effective date of the termination date of the
Agreement.

[SIGNATURES ON FOLLOWING PAGE]

1

IN WITNESS WHEREOF, the Parties hereto have caused this Supplement Number One to Original Equipment
Manufacturing Agreement to be executed in duplicate by their authorized officers on the dates and
the places mentioned below:

	 	 	 
	Genova, November 10       2009

	 	November 10       2009
	 

	 	 
	Esaote S.p.A.

By:      /s/ Fabrizio Landi—

	 	TechniScan Medical Systems, Inc.

By:      /s/ David C. Robinson—
	 

	 	 
	Name:       Fabrizio Landi—

	 	Name:       David C. Robinson—
	 

	 	 
	Title: Managing Director and General Manager

	 	Title:       President and CEO—
	 

	 	 

2

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