Document:

Exhibit 10.5

DEMAND
PROMISSORY NOTE

	
  $75,000.00

  	
   

  	
  April 17, 2007

  

 

FOR VALUE
RECEIVED, ProUroCare Inc. (the “Debtor”) promises to pay to the order of
Alexander Nazarenko, or his successors and assigns (the “Holder”), the
principal sum of $75,000.00, together with interest on all outstanding and
unpaid amounts evidenced by this Note at the rate of the US Prime Rate plus1.0%
per year computed on the basis of the actual number of days elapse in the
payment period and a 365-day year.  This
Note is not secured.

1.                                       Payment
of Principal and Interest.  All
outstanding principal and interest under this Note will be due and payable ON
DEMAND.

2.                                       Demand
for Payment.  Upon request by the
Holder for payment hereunder, the then outstanding principal balance of this
Note and all accrued interest accrued thereon shall, at the option of the
Holder and without presentment, demand, protest, or further notice of any kind,
become immediately due and payable in full. 
All payments with respect to this Note will be applied to the reduction
of the principal or to the accrued interest as directed by the Debtor.

3.                                       Prepayments.
The indebtedness evidenced by this Note may be prepaid, in whole or in part, at
any time without penalty or premium.

4.                                       No
Waivers.  The Debtor agrees that no
failure on the part of the Holder to exercise any power, right or privilege
hereunder, or to insist upon prompt compliance with the terms of this Note,
will constitute a waiver of that power, right or privilege.

5.                                       Replacement
Note.  Upon receipt of evidence
reasonably satisfactory to the Debtor, of the loss, theft, destruction or
mutilation of this Note, the Debtor will make and deliver a new Note of like
tenor in lieu of this note.

6.                                       Governing
law.  This Note is governed in all
respects by the internal laws of the State of Minnesota without regard to the
conflicts of law principles of any jurisdiction.

7.                                       Collection
Costs.  In the event the Debtor fails
to timely pay any amount due under this Note, the Debtor will pay all of the
Holder’s reasonable out-of-pocket collection costs, including without
limitation, reasonable attorney’s fees and legal costs, whether or not any suit
or enforcement proceeding is commenced.

IN WITNESS WHEREOF, the
Debtor has caused this Note to be signed by a duly authorized officer and dated
as of the date first above written.

 

	
  

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Richard C. Carlson, Chief Executive Officer

  
	
   

  	
   

  	
  ProUroCare, Inc.Exhibit
10.6

MAURICE
TAYLOR AGREEMENT TO DEFER PAYMENT OF ACCRUED SALARY 

This Agreement to Defer Payment of Accrued
Salary (the “Payment Agreement”) is entered into by and between Maurice R. Taylor
II (“Taylor”), and ProUroCare Medical Inc. (“PUC”).

WHEREAS, Taylor was employed by PUC as its
Chief Executive Officer under the terms of an employment agreement dated
January 1, 2005 (the “Employment Agreement”); and,

WHEREAS, Taylor resigned from his position as
Chief Executive Officer effective November 1, 2006, terminating the Employment
Agreement; and

WHEREAS, at the request of PUC’s Board of
Directors, Taylor performed certain duties as an employee in an advisory
capacity to PUC’s new Chief Executive Officer between November 1, 2006 and
March 31, 2007; 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 Taylor according to the terms of the Employment
Agreement and for subsequent employment period between June 15, 2006 and March
31, 2007; and

WHEREAS, PUC is not currently able to pay Taylor’s
earned but unpaid salary totaling One Hundred Forty-One Thousand Sixteen and
72/100 dollars ($141,016.72) (the “Accrued Salary”), but desires to reach an
amicable arrangement with Taylor to pay the Accrued Salary on a reasonable
payment schedule, acceptable to Taylor.

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

1)              Consideration to Taylor:

(A)      PUC will pay Taylor’s Accrued Salary according to the following
schedule:

	
  Date

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  June 1 to
  December 1, 2007

  	
   

  	
  $

  	
  5,000.00 per
  month

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Balloon payment, on or
  before December 28, 2007

  	
   

  	
  $

  	
  106,016.72

  	
   

  

 

If PUC pays any current employee’s accrued
but unpaid back wages, it shall pay Taylor on an equal basis based upon the
total amount due to each person, taking into account amounts paid previously
under this Section 1.

 1
 

(B)        As consideration to Taylor for his agreement
to defer payment for his Accrued Salary under the terms of Section 1(A) hereof,
PUC shall amend Taylor’s ProUroCare Inc. Incentive Stock Option Agreement dated
April 19, 2002 to allow Taylor until April 1, 2012 to exercise his 450,000
vested options (including 214,000 options gifted by Taylor to his children) to
purchase ProUroCare Medical Inc. common stock at $1.13 per share.  The parties acknowledge that all 450,000
options are “Non-Qualified” options.  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.

(C)        If PUC fails to make any payment on its due
date according to the schedule above, PUC shall pay a penalty of 10 percent of
that payment.  In addition, PUC shall pay
interest on any past due amounts to be paid under Section 1 (A) at a rate of 10
percent per year (based on a 365 day year and actual number of days
outstanding).  For purposes of this
agreement, payments mailed to Taylor shall be considered timely paid if
postmarked on or before the due date.

(D)       Taylor shall have the option to accept as
payment for any of the Accrued Salary, 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.  Taylor shall notify PUC of his election to
accept any payment due him in stock ten days prior to the date such payment is
due.  It is understood that Taylor 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.

(E)         All of the forgoing payments will be less all
taxes and withholdings required by law. 
PUC will issue Taylor a W-2 form reflecting the foregoing payments.

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

 2
 

(A)      Taylor
agrees that his separation from employment with PUC is effective March 31,
2007, and is complete and permanent.  The
Parties confirm their continuing obligations and rights under Paragraphs 7, 8, 10,
and 12 of the Employment Agreement.

(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.  Taylor 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)        The Parties represent that they have not filed any claims, actions or charges
arising out of or related to Taylor’s Employment Agreement with PUC and the
conclusion of Taylor’s employment by PUC with any local, state or federal court
or agency against 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) and agree not to do so in the
future.

(D)       Taylor represents that he is responsible for all tax payments
concerning the payments to be made under Section 1 hereof (other than employer’s
payroll taxes and amounts withheld from Taylor’s pay) and any penalties and
interest that may arise as a result of such payments.

3)              Nothing in this Payment 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.

4)              The Parties agree and understand that any
claims or actions relating to this Payment 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 Payment Agreement, Minnesota law shall apply.

 3
 

5)              This Payment 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.

6)              If any provision of, or portion thereof, this
Payment 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.

7)              The Incentive Stock Option amendment set
forth in Paragraph 1(B) will be provided within 10 business days after the execution
of this Payment Agreement by both parties.

 

PROUROCARE MEDICAL INC.

 

	
  By

  	
   /s/ Richard
  C. Carlson

  	
   

  
	
   

  	
  Richard C. Carlson

  	
   

  
	
  Its:

  	
  Chief Executive Officer

  	
   

  
	
   

  
	
   

  
	
  Dated: May 11, 2007

  	
   

  	
   

  
				

 

 

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

 

	
  Dated: May 11, 2007

  	
   

  	
  By:

  	
  /s/ Maurice R. Taylor

  
	
   

  	
   

  	
   

  	
  Maurice R. Taylor II

  

 

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