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EXHIBIT
10.2
NEITHER THIS NOTE NOR THE SECURITIES
ISSUABLE UPON EXERCISE OF THE CONVERSION RIGHTS SET FORTH IN THIS
NOTE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS, AND NEITHER THIS NOTE
NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THE CONVERSION RIGHTS
SET FORTH IN THIS NOTE CAN BE SOLD OR TRANSFERRED UNLESS THE
REGISTRATION PROVISIONS OF THE SAID ACT AND APPLICABLE STATE
SECURITIES LAWS HAVE BEEN COMPLIED WITH OR UNLESS COMPLIANCE WITH
SUCH PROVISIONS IS NOT REQUIRED.
MEDICAL SOLUTIONS
MANAGEMENT INC.
CONVERTIBLE PROMISSORY
NOTE
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| $1,500,000.00 |
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Marlboro, Massachusetts |
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October 18, 2007 |
FOR VALUE RECEIVED ,
upon the terms and subject to the conditions set forth in this
convertible promissory note (this “ Note ”),
MEDICALSOLUTIONS MANAGEMENT INC. , a Nevada corporation with
its principal place of business at 237 Cedar Hill Street, Marlboro,
MA (the “ Company ”), absolutely and
unconditionally promises to pay to the order of VICIS CAPITAL
MASTER FUND (the “ Holder ”), the principal
amount of One Million Five Hundred Thousand Dollars
($1,500,000.00), together with interest as specified in §2
hereof. Notwithstanding anything to the contrary set forth in this
Note, in the event of the consummation of a Convertible Debt
Financing (as defined in §5.2 hereof) while any portion of the
Loan Balance (as defined in §5.2 hereof) shall remain
outstanding, the then outstanding Loan Balance shall,
contemporaneously with the consummation of such Convertible Debt
Financing, be converted into a Convertible Debenture (as defined in
§5.2 hereof). This Note is issued in connection with a certain
Note Purchase Agreement, of even date herewith, between the Company
and the Holder (the “ Purchase Agreement ”), all
terms of which are incorporated herein by this reference and hereby
made a part of this Note. By its acceptance of this Note, the
Holder agrees to be bound by the terms of the Purchase
Agreement.
§1. Maturity ;
Waivers . The entire outstanding Loan Balance shall
automatically become due and payable on the earlier of
(a) 5:00 P.M., Boston, Massachusetts time on October 12,
2008, and (b) the date of the consummation of a Convertible
Debt Financing (in any such case, the “ Maturity Date
”). The Company and every endorser and guarantor of this Note
or the obligations represented hereby expressly waive presentment,
demand, notice, protest and all other demands and notices in
connection with the delivery, acceptance, performance, default or
enforcement of this Note, assent to any extension or postponement
of the time of payment or any other indulgence, and to the addition
or release of any other party or person primarily or secondarily
liable.
§2. Interest; No
Commitment . This Note shall bear interest on the principal
amount outstanding and unpaid from time to time at a rate of
10% per annum from the date hereof until paid in full.
Interest shall be calculated on the basis of a 360-day year and
paid for the actual number of days elapsed, and shall accrue and be
payable upon the Maturity Date or, thereafter, if any amounts are
due and owing by the Company under this Note, then upon
demand.
§3.
Prepayment . The Company may prepay, in whole or in
part, the outstanding Loan Balance, without the prior written
consent of the Holder and without premium or prepayment penalty;
provided , that the Company shall pay all accrued and unpaid
interest through the date of prepayment (unless such interest
included in the Loan Balance has been converted pursuant to the
terms of §5 hereof) on the principal amount prepaid. All
payments to be made by the Company hereunder shall be made in U.S.
dollars in immediately available funds, without setoff or
counterclaim and without any withholding or deduction
whatsoever.
§4. Acceleration
Events . If any of the following events or circumstances
(each an “ Acceleration Event ”) shall
occur:
(a) the Company shall fail to
pay any amount of principal or interest or other amount (if any)
due under this Note within ten (10) days after the date on
which such amount is due and payable hereunder or thereunder;
or
(b) the Company (or a
material subsidiary of the Company) shall make an assignment for
the benefit of creditors, or admit in writing its inability to pay
its debts as they mature or become due, or shall petition or apply
for the appointment of a trustee or other custodian, liquidator or
receiver of the Company (or a material subsidiary of the Company)
or of any substantial part of its assets or shall commence any case
or other proceeding relating to its assets under any bankruptcy,
reorganization, arrangement, insolvency, readjustment of debt,
dissolution or liquidation or similar law of any jurisdiction, or
shall take any action to authorize or in furtherance of any of the
foregoing; or any such petition or application shall be filed or
any such case or other proceeding shall be commenced against the
Company (or a material subsidiary of the Company), and the same
shall not have been dismissed within sixty (60) days of the
filing or commencement thereof or the Company (or a material
subsidiary of the Company) shall indicate its approval thereof,
consent thereto or acquiescence therein; or a decree or order shall
be entered appointing any such trustee, custodian, liquidator or
receiver or adjudicating the Company (or a material subsidiary of
the Company) bankrupt or insolvent, or approving a petition in any
such case or other proceeding, or a decree or order for relief
shall be entered in respect of the Company (or a material
subsidiary of the Company) in an involuntary case under any such
bankruptcy or insolvency laws; or
(c) the Company (or a
material subsidiary of the Company) shall take any corporate action
to liquidate its assets, dissolve or sell all or substantially all
of its assets or capital stock, or otherwise, or shall take any
corporate action to consolidate or merge with or into any other
corporation or business entity unless the Company shall be the
surviving legal entity of such consolidation or merger;
then, the Holder, at the
Holder’s option at any time thereafter, may declare the then
entire and unpaid Loan Balance and all fees and expenses (if any)
payable on or in respect of this Note and the obligations evidenced
hereby due and payable, and the same shall
2
thereupon forthwith become
and be due and payable to the Holder (an “
Acceleration ”) without presentment, demand, protest,
notice of protest or any other formalities of any kind, all of
which are hereby expres
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