Document:

Amendment No. 1 to 

Promissory Note 11-2 Dated February
10, 2011

  

This Amendment No. 1 to Promissory Note 11-2 dated February
10, 2011 issued by ProUroCare Medical Inc. in favor of Maslon, Edelman, Borman & Brand, LLP (the “Note”) is made
to amend the Maturity Date and the Conversion Price of the Note.

 

The following defined terms of the Note are hereby changed as
defined below:

 

	“Maturity Date”	The Maturity Date shall be August 10, 2013.
	“Conversion Price”	The Conversion Price shall be $1.00 per share.

 

No other defined terms or clauses of the Note are changed.

 

This Amendment No. 1 is dated and effective as of September
27, 2012

 

 

Maslon, Edelman, Borman & Brand, LLP 

  

 

/s/Paul Chestovich, Partner______

 

 

ProUroCare Medical Inc.

 

 

 

/s/ Richard Thon_________________

Richard Thon

Chief Financial OfficerPromissory Note

 

 

EFFECTIVE DATE AND PARTIES. This Promissory Note (“Note”)
is made effective as of September 26, 2012. The parties and their addresses are:

 

LENDER (“you”
and “your”):

 

Jeanne Rudelius

1850 Major Dr.

Golden Valley, MN 55422

 

BORROWER (“we,”
“us,” and “our”):

 

ProUroCare Medical Inc.

a Nevada Corporation

6440 Flying Cloud Dr., STE 101

Eden Prairie, MN 55344

 

PROMISE TO PAY. For value received,
we promise to pay you or your order, at your address, or at such other location as you may designate, the total principal balance
of One Hundred Fifty Thousand Dollars $150,000.00 (“Principal”).

 

INTEREST / CONSIDERATION. In consideration for making
this loan to us, and in lieu of any cash interest, we will issue to you 30,000 shares of PUMD $0.00001 par value common stock (the
“Consideration Shares”). The Consideration Shares to be issued will not be registered under the Securities Act or under
applicable state securities acts. The Consideration Shares may not be sold, transferred or otherwise disposed of except pursuant
to an effective registration statement or appropriate exemption from registration under applicable state law.

 

PAYMENT. We agree to pay the entire unpaid Principal
of this Note on or before December 26, 2012 (“Maturity Date”).

 

PREPAYMENT. We may prepay this Loan in full or in part
at any time. Any partial prepayment will not excuse any later scheduled payments until we pay in full.

 

SECURITY INTEREST. We give you a security interest in
all of the Company’s assets subject to the terms and conditions of Exhibit A hereto.

 

DEFAULT. You may demand payment in full if any of the
following occur:

 

Payments. We fail to make a payment in full
when due, and fail to make such payment within five (5) days’ of your giving us notice of such failure to make the payment.

 

Insolvency or Bankruptcy. Our dissolution
or insolvency, the appointment of a receiver by us or on our behalf, the application of any debtor relief law by us, the assignment
for the benefit of creditors by us or on our behalf, the voluntary or involuntary termination of our existence, or the commencement
of any proceeding under any present or future federal or state insolvency, bankruptcy, reorganization, composition or debtor relief
law by or against us.

 

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Business Termination. We merge, dissolve,
reorganize or end our business or existence.

 

Failure to Perform. We fail to perform any
condition or to keep any promise or covenant of this Note and fail to cure this lack of performance within thirty (30) days of
your giving us notice thereof.

 

Misrepresentation. We make any verbal or written
statement or provide any financial information that is untrue, inaccurate, or conceals a material fact at the time it is made or
provided.

 

Judgment. We fail to satisfy or appeal any
judgment against us.

 

Forfeiture. The Property is used in a manner
or for a purpose that threatens confiscation by a legal authority.

 

WAIVERS AND CONSENT. To the extent not prohibited by
law, we waive protest, presentment for payment, demand, notice of acceleration, notice of intent to accelerate and notice of dishonor.
You may renew or extend payments on this Note, regardless of the number of such renewals or extensions. You may invoke your right
of set-off. Your course of dealing, or your forbearance from, or delay in, the exercise of any of your rights, remedies, privileges
or right to insist upon our strict performance of any provisions contained in this Note shall not be construed as a waiver by you,
unless any such waiver is in writing and is signed by you.

 

REMEDIES. If we default, and after you give any legally
required notice and opportunity to cure the default, you may at your option do any one or more of the following,

 

Acceleration. You may make all or any part
of the amount owing by the terms of this Note immediately due.

 

Sources. You may use any and all remedies
you have under state or federal law.

 

Set-Off. You may use the right of set-off.
This means you may set-off any amount due and payable under the terms of this Note against any right we have to receive money from
you.

 

Waiver. Except as otherwise required by law,
by choosing any one or more of these remedies you do not give up your right to use any other remedy. You do not waive a default
if you choose not to use a remedy. By electing not to use any remedy, you do not waive your right to later consider the event a
default and to use any remedies if the default continues or occurs again.

 

COLLECTION EXPENSES AND ATTORNEYS’ FEES. To the
extent permitted by law, in the event of default, we agree to pay all expenses of collection, enforcement or protection of your
rights and remedies under this Note or any other Loan Document. Expenses include, but are not limited to, attorneys’ fees,
court costs and other legal expenses.

 

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APPLICABLE LAW. This Note is governed by the laws of
Minnesota, the United States of America, and to the extent required, by the laws of the jurisdiction where the Property is located,
except to the extent such state laws are preempted by federal law. In the event of a dispute, the exclusive forum, venue and place
of jurisdiction will be in Minnesota, unless otherwise required by law.

 

SUCCESSORS. This Note shall inure to the benefit of and
be enforceable by you and your successors and assigns and shall be binding upon and enforceable against us and our successors and
assigns.

 

AMENDMENT, INTEGRATION AND SEVERABILITY. This Note may
not be amended or modified by oral agreement. No amendment or modification of this Note is effective unless made in writing and
executed by you and us. This Note is the complete and final expression of the agreement. If any provision of this Note is unenforceable,
then the unenforceable provision will be severed and the remaining provisions will still be enforceable.

 

 

 

	 	ProUroCare Medical Inc.
	 	 
	 	 
	 	 
	 	/s/ Richard Thon______________
	 	Richard Thon
	 	Chief Financial Officer

 

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Exhibit A

 

Security Interest

 

 

 

SECURITY INTEREST. The term “Secured Debt”
refers to the Principal and any unpaid interest accrued thereon. To secure the payment and performance of the Secured Debt, subject
to your becoming a “Secured Party” by joining the Sharing Agreement described below, we give you a security interest
in all of the Property described in this Note that we own or have sufficient rights in which to transfer an interest, now or in
the future, wherever the Property is or will be located, and all proceeds and products from the Property (including, but not limited
to, all parts, accessories, repairs, replacements, improvements, and accessions to the Property). “Property” is all
the collateral given as security for the Secured Debt and described in this Note, and includes all obligations that support the
payment or performance of the Property. “Proceeds” includes anything acquired upon the sale, lease, license, exchange,
or other disposition of the Property; any rights and claims arising from the Property; and any collections and distributions on
account of the Property.

 

COLLATERAL SHARING AGREEMENT. The Crown Bank promissory
note is guaranteed by two individuals (the “Crown Guarantors”). In the event of default, the Crown Guarantors, upon
fulfilling their guarantee obligations to Crown Bank, would assume Crown Bank’s rights to proceeds from the sale of the Company’s
assets that were pledged as collateral. However, the Crown Guarantors have entered into an Amended and Restated Collateral Sharing
Agreement (the “Sharing Agreement”) with other subordinated secured lenders and the guarantor of other subordinated
bank loans. Pursuant to that agreement, the Crown Guarantors have agreed to split any proceeds from the sale of the Company’s
assets proportionally among all Secured Parties (up to the aggregate amount of the secured debts) who join the Sharing Agreement.
Upon your joinder to the Sharing Agreement, your security interest in the Property is equal to security interest of the other Secured
Parties who have joined the Sharing Agreement. The total amount of debt that may be or may become subject to the Sharing agreement
may not exceed $5,000,000.

 

PROPERTY DESCRIPTION. The Property is all assets of the
Company, including inventory, accounts and other rights to payment, equipment and intangibles.

 

 

 

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