Document:

Exhibit
10.7

MICHAEL
GROSSMAN FINAL SEPARATION AGREEMENT

This Final Separation Agreement (“Agreement”)
is entered into by and between Michael Grossman (“Grossman”), and ProUroCare
Medical Inc. (“PUC”).

WHEREAS, Grossman was employed by PUC; and,

WHEREAS, because PUC is a development stage
company, with no revenues or income but a significant amount of debt, and has
received a “Going Concern” opinion from its auditors, it was not financially
able to, and did not, pay Grossman according to the terms of his March 4, 2005
Employment Agreement with PUC (the “Contract”); and

WHEREAS, the Parties desire to amicably
terminate Grossman’s employment relationship with PUC; and,

WHEREAS, the Parties wish to enter into this
Agreement to fully and finally settle any differences between them that have or
may have arisen out of Grossman’s employment relationship with PUC and the
termination of that employment relationship, and to forever separate Grossman’s
relationship with PUC.

NOW THEREFORE, the Parties have agreed to the
following terms and conditions:

1.                                       In consideration for the promises set forth
in this Agreement, PUC will:

A.                                   Pay Grossman One Hundred Three Thousand Nine
Hundred Ninety and 45/100 Dollars ($103,990.45) as back wages in eight (8)
monthly payments and a final balloon payment, according to the following
schedule:

	
  Date

  	
   

  	
  Amount

  	
   

  
	
  May 15, 2007

  	
   

  	
  $

  	
  4,000.00

  	
   

  
	
  June 1, 2007

  	
   

  	
  $

  	
  6,000.00

  	
   

  
	
  First of each
  month, July 1 through December 1, 2007

  	
   

  	
  $

  	
  8,000.00

  	
   

  
	
  Balloon payment, on or
  before December 28, 2007

  	
   

  	
  $

  	
  45,990.45

  	
   

  

 

PUC
may, in its discretion, pre-pay the foregoing amounts without penalty.  If PUC pays any current or former employees
accrued, but unpaid, back wages, it shall pay Grossman on an equal basis based
upon the total amount due to each person, taking into account amounts paid
previously under this Section 1.A. If PUC fails to make any payment on its due
date according to

 1
 

the
schedule above, PUC shall pay a penalty of 10 percent of that payment.  In addition, PUC shall pay interest on any
past due payments outstanding at a rate of 10 percent per year (based on a 365
day year and actual number of days outstanding). The provisions for penalty and
interest on past due payments provided herein are not intended to and do not
waive any of Grossman’s rights to declare the failure to make payments on the
schedule provided in this Paragraph 1A on a timely basis or the failure of PUC
to meet the provisions of 1B and 1C to be a breach of the Agreement. Grossman
shall provide PUC with written notice of such declaration of breach. Such
breach may be cured by payment of the past due amount, with penalty and
interest as provided herein, within ten (10) business days of the date of
mailing of such notice or such additional time as the parties may agree. For
purposes of this agreement, payments mailed to Grossman shall be considered
timely paid if postmarked on or before the due date.  All of the forgoing payments will be less all
taxes and withholdings required by law. 
PUC will issue Grossman a W-2 form reflecting the foregoing payments.

B.                                     Grossman shall have the option to accept as
payment for any of the back wages, shares of ProUroCare Medical Inc. common
stock up to a maximum of 100,000 shares, based on the price of the last
completed trade on the day prior to such payment (or if no shares are so
transacted on that day, the average of the closing bid and asked prices) as
reported by the Over-the-Counter Bulletin Board.  Grossman shall notify PUC of his election to
accept any payment due him in stock at least 10 days prior to the date such
payment is due.  It is understood that
Grossman shall remit to PUC, and PUC shall be responsible for depositing with
the proper governmental authorities, any required federal and state withholding
taxes related to the issuance of any such shares.

C.                                     PUC shall amend Grossman’s ProUroCare Inc.
Incentive Stock Option Agreement dated February 1, 2004 to allow Grossman until
February 1, 2012 to exercise his 450,000 vested options to purchase ProUroCare
Medical Inc. common stock at $2.00 per share. 
In the event that PUC is eligible to register the shares to be issued pursuant
to its 2002 and 2004 stock option plans (including the shares to be issued upon
exercise of the foregoing options) with the Securities and Exchange Commission
on Form S-8, PUC shall file such registration by March 31, 2008.  If PUC fails to register the shares by March
31, 2008 for any reason, PUC will register the shares as soon as it reasonably
can.  In that event, PUC will extend the
period in which Grossman may exercise his options by the same amount of time as
the period from March 31, 2008 to the effective registration date, but in no
event beyond February 1, 2014.

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2.                                       In consideration for the payment and benefits
described above and the remainder of the terms and conditions set forth in this
Agreement, the sufficiency of which is acknowledged and has been received, the
Parties further agree to the following:

A.                                   Grossman
agrees that his separation from employment with PUC is effective February 1, 2007,
and is complete and permanent.  PUC may
use this Agreement as an absolute contractual bar for rejecting any future
application for employment.  The Parties
confirm their continuing obligations and rights under Paragraphs 8, 9, 11 and
13 of the Contract. In addition, the Parties specifically agree,
notwithstanding the language of Paragraph 4 below, that in the event of a
breach by PUC of this Agreement and failure of PUC to cure such breach as
provided below, but only in the event of such a breach, Grossman reserves and
expressly does not waive any and all rights under the Contract, including
without limitation the right to pursue damages, actions, lawsuits or claims
under the Contract. The release and waiver in Paragraph 4 hereof does not apply
to the extent it purports to waive Grossman’s rights under or release PUC from
claims pursuant to the Contract, in the event of a breach by PUC of this
Agreement.  Grossman shall provide PUC
with written notice of declaration of any breach under this agreement.  PUC will have ten (10) business days within
the date of the mailing of such notice, or such additional time as the parties
may agree, to cure the breach.

B.                                     The Parties agree not to assist or encourage
in any way or cooperate with, any individual, group of individuals or entity in
bringing or pursuing a lawsuit, charge, complaint or grievance or making any
other demands against the other Party. 
Grossman shall fully cooperate with PUC in the future with respect to
matters arising out of his employment with PUC. 
The Parties agree that in any and all future proceedings of whatever
nature, they will testify truthfully and will testify against the other Party
only to the extent compelled to do so by a lawful subpoena or other judicial or
administrative action.  If a Party
receives a subpoena or other judicial or administrative action requesting
his/its testimony in a matter involving the other Party, the subpoenaed Party
shall immediately contact the other Party and cooperate with same.

C.                                     Grossman acknowledges and agrees that the
amendment of Grossman’s Incentive Stock Option Agreement under Paragraph 1(C)
of this Agreement is subject to offset, termination, cancellation or recoupment
in the event that Grossman timely rescinds or revokes his consent to this
Agreement or breaches this Agreement, including, but not limited to, Paragraphs
2(A), 2(B), 2(D), 2(F), 2(G), or 2(H). 
In addition, if PUC breaches this Agreement or

 3
 

Grossman breaches Paragraphs 2(A), 2(B), 2(D), 2(F), 2(G), or 2(H), the
prevailing Party shall be awarded its/his costs and attorneys’ fees incurred in
proving said breach(es).

D.                                    The Parties agree that they will not
disparage or otherwise attempt to discredit the other Party with any media,
anyone who is presently doing business with, employing or employed by, or with
anyone that could reasonably be expected to do business with, employing or be
employed by, the other Party.

E.                                      Grossman represents that while he was
employed by PUC, he did not suffer a work-related injury and that he is unaware
of any facts or circumstances that would support a workers’ compensation claim
by him against PUC.

F.                                      The Parties represent that they have not
filed any claims, actions or charges with any local, state or federal court or
agency against the other Party and agree not to do so in the future.  However, this does not prevent Grossman from
filing a charge with the EEOC or participating in an EEOC investigation or
subsequent proceeding, but Grossman waives his right to any personal monetary
recovery in any such investigation or subsequent proceeding.

G.                                     Grossman agrees to immediately return all PUC
property to its office, including, but not limited to, computer(s), credit
cards, sales information, sales materials, client contact information and any
other information related to or regarding PUC.

H.                                    Grossman represents that he is responsible
for all tax payments concerning the payments to be made under Sections 1(A),
1(B) and 1(C) (other than employer’s payroll taxes and amounts withheld from
Grossman’s pay) and any penalties and interest that may arise as a result of
such payments.

3.                                       Grossman understands and agrees that he has
twenty-one (21) days from receipt of this Agreement during which Grossman can
decide whether or not to enter into this Agreement.  During this 21-day period, Grossman may
consult with an attorney regarding all aspects of this Agreement, and agrees to
the extent Grossman desires, Grossman will and/or has availed that right.  Should Grossman sign this Agreement before
the end of this 21-day period, Grossman represents that he has done so
voluntarily and without influence by PUC. 
Grossman also understands that he has seven (7) days following the
signing of this Agreement to revoke Grossman’s agreement to waive any claims,
and release PUC from any liability, under the Age Discrimination in Employment
Act as described in paragraph 4 below. 
Grossman also

 4
 

understands that he has fifteen (15) calendar days following the
signing of this Agreement to rescind Grossman’s agreement to waive any claims,
and release PUC from any liability, under the Minnesota Human Rights Act, Minn.
Stat. § 363 as described in Paragraph 4 below.  Any such revocation or rescission must be
made by delivering a written notice of revocation to ProUroCare Medical Inc.,
c/o Rick Carlson, 5500 Wayzata Blvd., Suite 310, Golden Valley, MN 55416.  For any revocation or rescission to be
effective, it must be received by PUC on or before the seventh (7th) or
fifteenth (15th) calendar day after Grossman executes this
Agreement depending upon the type of rescission or revocation sought.  If sent by mail, the rescission or revocation
must be: (1) postmarked within the seven (7) or fifteen (15) day period; (2)
properly addressed as set forth above; and (3) sent by certified mail, return
receipt requested.  Absent any such
timely revocation or rescission, the portions of paragraph 4 below in which
Grossman waives all claims, and releases PUC from any liability, under the Age
Discrimination in Employment Act and the Minnesota Human Rights Act shall become
effective and enforceable.

4.                                       Except for a breach of this Agreement and
except as provided in Paragraph 2A hereof relating to Grossman’s rights and
PUCs’ obligations under the Contract in the event of a breach by PUC of this
Agreement, the Parties agree that by the signing of this Agreement, they
irrevocably waive, and unconditionally and forever release the other Party
(including PUC’s divisions, operations, parents, subsidiaries, affiliates,
predecessors, successors, insurers, and assigns, and past and present owners,
directors, stockholders, officers, trustees, agents, employees and
representatives), with prejudice, from all damages, actions, lawsuits or claims
the Parties may have, whether known or unknown, or asserted or unasserted,
whether based on contract, tort, statute, ordinance or common law, arising out
of or related to Grossman’s employment with PUC and the conclusion of that
employment.  By way of illustration, but
not limitation, this includes a waiver and release of any rights or claims Grossman
may have under, or for, the Age Discrimination in Employment Act of 1967, Title
VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the
Minnesota Human Rights Act, the National Labor Relations Act, the Minnesota
Parental Leave Act, Employee Retirement Income Security Act, the Fair Labor
Standards Act, the Minnesota Business Corporation Act and any other state
counterpart, all as amended; whistleblower claims, breach of fiduciary duty,
libel, slander, intentional or negligent infliction of emotional distress,
defamation, breach of contract, promissory estoppel, negligent hiring,
retention, supervision and termination, wages, conciliation or small claims
court claims, and wrongful discharge, or any other charges, complaints, claims,

 5
 

liabilities, obligations, promises, agreements, controversies, damages,
actions, suits, rights, demands, losses, debts and/or expenses (including
attorneys’ fees and costs actually incurred) of any nature.  Except as provided in
Paragraph 2A hereof, the Parties understand that they are releasing any and all
rights they may have to sue each other related to, in any way, Grossman’s
employment with PUC and/or the conclusion of that employment.  This waiver by Grossman does not apply to
claims or rights under the Age Discrimination in Employment Act of 1967 that
may arise after this Agreement is executed and any other right not subject to
waiver by a private agreement.

5.                                       Nothing in this Agreement is intended to be,
nor shall be construed as, an admission of any breach, violation or wrongdoing
by either Party with respect to any contract or local, state or federal
ordinance, statute or common law.

6.                                       The Parties agree and understand that any
claims or actions relating to this Agreement shall be brought only in the State
of Minnesota.  The Parties further agree
that to the extent any state law shall apply to any dispute arising out of this
Agreement, Minnesota law shall apply.

7.                                       Except for the Contract, this Agreement sets
forth the entire agreement between the Parties concerning the subject matter
herein and fully supersedes any and all prior discussions, offers,
negotiations, representations, letters, agreements or understandings between
the Parties concerning the subject matter herein.

8.                                       If any provision of, or portion thereof, this
Agreement is found to be unenforceable, illegal or void by a court or agency of
competent jurisdiction, the other provisions, or the remainder of the
unenforceable, illegal or void provision, of this Agreement, shall remain valid
and fully enforceable, and the court or agency shall interpret the remaining
provisions, or insert such other terms, to effectuate the Parties’ intent.

9.                                       The Incentive Stock Option amendment set
forth in Paragraph 1(C) will be provided within 10 business days after the
latest rescission or revocation period described in this Agreement expires and
provided Grossman has not timely rescinded or revoked his consent to any aspect
of this Agreement.

 6
 

 

	
  

  	
    PROUROCARE
  MEDICAL INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
    /s/ Richard C. Carlson

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Its: 

  	
    CEO

  	
   

  
	
   

  
	
  Dated: May 11, 2007

  
				

 

 

I HAVE READ AND UNDERSTAND
THE ABOVE AND VOLUNTARILY ENTER INTO THIS FINAL SEPARATION AGREEMENT.

 

	
  Dated:    5/11/07

  	
   

  	
  By:

  	
  /s/ Michael Grossman

  
	
   

  	
   

  	
   

  	
  Michael Grossman

  

 

 7Exhibit 4.01

 

	
  

  	
  COUNTERSIGNED AND REGISTERED:

  
	
   

  	
  AMERICAN STOCK TRANSFER & TRUST COMPANY

  (NEW YORK, NEW
  YORK)

  TRANSFER AGENT
  AND REGISTRAR

  
	
   

  	
  BY

  	
  /s/ [Illegible]

  	
   

  
	
   

  	
  AUTHORIZED
  SIGNATURE

  
	
   

  	
   

  

 

	
  NUMBER

  	
   

  	
  SHARES

  
	
  G 0121

  	
  GAMING
  PARTNERS INTERNATIONAL CORPORATION

  	
   

  
	
   

  	
  INCORPORATED
  UNDER THE LAWS OF THE STATE OF NEVADA

  	
  SEE REVERSE FOR

  CERTAIN DEFINITIONS

  
	
   

  	
  COMMON
  STOCK—$0.01 PAR VALUE

  	
  CUSIP 36467A 10
  7

  

 

THIS CERTIFIES THAT

SPECIMEN

Is The Owner Of

 

Shares
of the COMMON STOCK OF

GAMING
PARTNERS INTERNATIONAL CORPORATION

transferable only on the books of the Corporation by the holder hereof
in person or by attorney upon surrender of this Certificate properly endorsed.
This Certificate is not valid unless countersigned by the Transfer Agent and
Registrar.

In Witness
Whereof, the Corporation has caused this Certificate to be signed by the
facsimile signatures of its duly authorized officers and to be sealed with the
facsimile seal of the Corporation.

Dated:

	
  /s/ Melody Sullivan Yowell

  	
  

  	
  /s/ Gerard P. Charlier

  
	
  Chief
  Financial Officer

  	
  chief
  executive officer, president,

  secretary and treasurer

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