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EXHIBIT
10.1
NOTE PURCHASE
AGREEMENT
THIS NOTE PURCHASE AGREEMENT
(this “Agreement”), effective the 16th day of December,
2007, is made by and between VICIS CAPITAL MASTER FUND (the
“Purchaser”), and MEDICAL SOLUTIONS MANAGEMENT INC., a
Nevada corporation (the “Company”).
RECITALS :
WHEREAS, pursuant to the
terms and conditions hereof, the Company wishes to sell, and the
Purchaser desires to purchase, a note issued by the Company in the
form attached hereto as Exhibit A , in the principal amount
of $1,000,000 (the “Bridge Note”) and a Warrant (as
defined in Section 5.2 below) in a bridge financing
(“Bridge Financing”).
WHEREAS, the parties agree
that the Bridge Notes shall be convertible, at the option of the
Purchaser, into equity securities or convertible debt financing to
be issued by the Company in connection with a future financing
(“Future Financing”) pursuant to the terms herein set
forth.
NOW, THEREFORE , the
Company and the Purchaser hereby agree as follows:
ARTICLE I
SALE OF BRIDGE
NOTE
1.1 Purchase and Sale of
the Bridge Note . Subject to the terms and conditions hereof
and in reliance on the representations and warranties contained
herein, or made pursuant hereto, the Company will issue and sell to
the Purchaser, and the Purchaser will purchase from the Company at
the closing of the transactions contemplated hereby (the
“Closing”), the Bridge Note and Warrant for $1,000,000
(the “Purchase Price”).
1.2 Closing . The
Closing shall be deemed to occur at the offices of
Quarles & Brady, LLP, 411 East Wisconsin Avenue,
Milwaukee, Wisconsin at 5:00 p.m. CST on December 16th, 2007
or at such other place, date or time as mutually agreeable to the
parties (the “Closing Date”).
1.3 Closing Matters .
On the Closing Date, subject to the terms and conditions hereof,
the following actions shall be taken:
(a) The Company will deliver
to the Purchaser (i) the Bridge Note, dated the Closing Date,
in the principal amount of $1,000,000; (ii) the Warrant; and
(iii) the registration rights agreement in the form of
Exhibit B attached hereto (the “Registration Rights
Agreement”), each executed by a duly authorized
officer.
(b) The Purchaser shall
deliver to the Company the Purchase Price in immediately available
funds to the Company.
ARTICLE II
REPRESENTATIONS AND
WARRANTIES OF COMPANY
The Company hereby represents
and warrants to the Purchaser as of the date of this Agreement as
follows:
2.1 Organization and
Qualification . The Company is a corporation duly organized and
validly existing and in good standing under the laws of the
jurisdiction in which it is incorporated, and has all requisite
corporate power and authority to carry on its business as now
conducted. The Company is duly qualified as a foreign corporation
to do business and is in good standing in every jurisdiction in
which its ownership of property or the nature of the business
conducted by it makes such qualification necessary, except to the
extent that the failure to be so qualified or be in good standing
would not have a Material Adverse Effect. As used in this
Agreement, “Material Adverse Effect” means any material
adverse effect on the business, properties, assets, operations,
results of operations, condition (financial or otherwise) or
prospects of the Company and its Subsidiary or on the transactions
contemplated hereby or by the agreements and instruments to be
entered into in connection herewith, or on the authority or ability
of the Company to perform its obligations under the Transaction
Documents (as hereinafter defined).
2.2 No Violation . The
Company is not in violation of: (a) any of the provisions of
its articles of incorporation, bylaws or other organizational or
charter documents; or (b) any judgment, decree or order or any
statute, ordinance, rule or regulation applicable to the Company,
except for possible violations which would not, individually or in
the aggregate, have a Material Adverse Effect.
2.3 Authorization;
Enforcement; Validity . The Company has the requisite corporate
power and authority to enter into and perform its obligations under
this Agreement, the Bridge Note, the Warrant and each of the other
agreements or instruments entered into by the parties hereto in
connection with the transactions contemplated by this Agreement
(collectively, the “Transaction Documents”) and to
issue the Bridge Note and Warrant in accordance with the terms
hereof. The execution and delivery of the Transaction Documents by
the Company and the consummation by the Company of the transactions
contemplated hereby and thereby, including, without limitation, the
issuance of the Bridge Note and Warrant, have been duly authorized
by the board of directors of the Company (the “Board”),
and no further consent or authorization is required by the Company,
the Board or its stockholders. This Agreement and the other
Transaction Documents of even date herewith have been duly executed
and delivered by the Company, and constitute the legal, valid and
binding obligations of the Company enforceable against the Company
in accordance with their respective terms, except (i) as such
enforceability may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally,
the enforcement of applicable creditors’ rights and remedies,
or (ii) as any rights to indemnity or contribution hereunder
may be limited by federal and state securities laws and public
policy consideration.
2.4 No Conflicts . The
execution, delivery and performance of the Transaction Documents by
the Company and the consummation by the Company of the
transactions
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contemplated hereby and thereby will not
(i) result in a violation of any articles or articles of
incorporation, any certificate of designations, preferences and
rights of any outstanding series of preferred stock or bylaws of
the Company or (ii) conflict with, or constitute a default (or
an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any material agreement,
indenture or instrument to which the Company is a party, or
(iii) result in a violation of any law, rule, regulation,
order, judgment or decree (including federal and state securities
laws and regulations) applicable to the Company or by which any
property or asset of the Company is bound or affected, except in
the case of clauses (ii) and (iii), for such breaches or
defaults as would not be reasonably expected to have a Material
Adverse Effect.
2.5 Governmental
Consents . Except for the filing of a Form D with the
Securities and Exchange Commission (the “SEC”), the
Company is not required to obtain any consent, authorization or
order of, or make any filing or registration with, any court,
governmental agency or any regulatory or self-regulatory agency or
any other person or entity in order for it to execute, deliver or
perform any of its obligations under or contemplated by the
Transaction Documents, in each case, in accordance with the terms
hereof or thereof. All consents, authorizations, orders, filings
and registrations which the Company is required to obtain at or
prior to the Closing pursuant to the preceding sentence have been
obtained or effected. The Company is unaware of any facts or
circumstances which might prevent the Company from obtaining or
effecting any of the foregoing.
2.6 Financial Information;
SEC Documents . Since December 30, 2005, the Company has
filed all reports, schedules, forms, statements and other documents
(“SEC Documents”) required to be filed by it with the
SEC pursuant to the reporting requirements of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”).
As of their respective dates, the SEC Documents complied in all
material respects with the requirements of the Exchange Act and the
rules and regulations of the SEC promulgated thereunder applicable
to such SEC Documents, and none of such SEC Documents, at the time
they were filed with the SEC, contained any untrue statement of a
material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were
made, not misleading. As of their respective dates, the financial
statements of the Company included in such SEC Documents complied
as to form in all material respects with applicable accounting
requirements and the published rules and regulations of the SEC
with respect thereto. Such financial statements have been prepared
in accordance with generally accepted accounting principles,
consistently applied, during the periods involved (except
(i) as may be otherwise indicated in such financial statements
or the notes thereto, or (ii) in the case of unaudited interim
statements, to the extent they may exclude footnotes or may be
condensed or summary statements) and fairly present in all material
respects the financial position of the Company as of the dates
thereof and the results of its operations and cash flows for the
periods then ended (subject, in the case of unaudited statements,
to normal year-end audit adjustments). No other information
provided by or on behalf of the Company to the Purchaser that is
not included in the SEC Documents contains any untrue statement of
a material fact or omits to state any material fact necessary in
order to make the statements therein, in the light of the
circumstance under which they are or were made, not
misleading.
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ARTICLE III
REPRESENTATIONS AND
WARRANTIES OF PURCHASER
The Purchaser hereby
represents and warrants to the Company as of the date of this
Agreement as follows:
3.1 Organization . The
Purchaser is a corporation, limited liability company or
partnership duly incorporated or organized, validly existing and in
good standing under the laws of the jurisdiction of its
incorporation or organization.
3.2 Authorization .
This Agreement has been duly authorized, validly executed and
delivered by the Purchaser and is a valid and binding agreement and
obligation of the Purchaser enforceable against the Purchaser in
accordance with its terms, subject to limitations on enforcement by
general principles of equity and by bankruptcy or other laws
affecting the enforcement of creditors’ rights generally, and
the Purchaser has full power and authority to execute and deliver
this Agreement and the other agreements and documents contemplated
hereby and to perform its obligations hereunder and
thereunder.
3.3 Investment
Investigation . The Purchaser understands that no Federal,
state, local or foreign governmental body or regulatory authority
has made any finding or determination relating to the fairness of
an investment in the Bridge Note and Warrant and that no Federal,
state, local or foreign governmental body or regulatory authority
has recommended or endorsed, or will recommend or endorse, any
investment in the Bridge Note. The Purchaser, in making the
decision to purchase the Bridge Note and Warrant, has relied upon
independent investigation made by it and has not relied on any
information or representations made by third parties.
3.4 Accredited
Investor . The Purchaser is an “accredited
investor” as defined under Rule 501 of Regulation D
promulgated under the Securities Act of 1933, as amended (the
“Securities Act”).
3.5 No Distribution .
The Purchaser is and will be acquiring the Bridge Note and Warrant
for its own account, and not with a view to any resale or
distribution of the Bridge Note in whole or in part, in violation
of the Securities Act or any applicable securities laws.
3.6 Resale . The
parties intend that the offer and sale of the Bridge Note and
Warrant be exempt from registration under the Securities Act, by
virtue of Section 4(2) and/or Rule 506 of Regulation D
promulgated under the Securities Act. The Purchaser understands
that the Bridge Note and Warrant purchased hereunder have not been,
and may never be, registered under the Securities Act and that the
Bridge Note and Warrant cannot be sold or transferred unless its is
first registered under the Securities Act and such state and other
securities laws as may be applicable or in the opinion of counsel
for the Company an exemption from registration under the Securities
Act is available (and then the Bridge Note and Warrant may be sold
or transferred only in compliance with such exemption and all
applicable state and other securities laws).
3.7 Reliance . The
Purchaser understands that the Bridge Note and Warrant are being
offered and sold to it in reliance on specific provisions of
Federal and state securities laws and that the Company is relying
upon the truth and accuracy of the representations,
warranties,
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agreements, acknowledgments and
understandings of the Purchaser set forth herein for purposes of
qualifying for exemptions from registration under the Securities
Act, and applicable state securities laws.
ARTICLE IV
INDEMNIFICATION
4.1 Indemnification by the
Company . The Company agrees to defend, indemnify and hold
harmless the Purchaser and shall reimburse the Purchaser for, from
and against each claim, loss, liability, cost and expense
(including without limitation, interest, penalties, costs of
preparation and investigation, and the reasonable fees,
disbursements and expenses of attorneys, accountants and other
professional advisors) (collectively, “Losses”)
directly or indirectly relating to, resulting from or arising out
of any untrue representation, misrepresentation, breach of warranty
or non-fulfillment of any covenant, agreement or other obligation
by or of the Company contained herein or in any certificate,
document, or instrument delivered to the Purchaser pursuant
hereto.
4.2 Indemnification by the
Purchaser . The Purchaser agrees to defend, indemnify and hold
harmless the Company and shall reimburse the Company for, from and
against all Losses directly or indirectly relating to, resulting
from or arising out of any untrue representation,
misrepresentation, breach of warranty or non-fulfillment of any
covenant, agreement or other obligation of the Purchaser contained
herein or in any certificate, document or instrument delivered to
the Company pursuant hereto.
4.3 Procedure . The
indemnified party shall promptly notify the indemnifying party of
any claim, demand, action or proceeding for which indemnification
will be sought under Sections 4.1 or 4.2 of this Agreement, and, if
such claim, demand, action or proceeding is a third party claim,
demand, action or proceeding, the indemnifying party will have the
right at its expense to assume the defense thereof using counsel
reasonably acceptable to the indemnified party. The indemnified
party shall have the right to participate, at its own expense, with
respect to any such third party claim, demand, action or
proceeding. In connection with any such third party claim, demand,
action or proceeding, the Purchaser and the Company shall cooperate
with each other and provide each other with access to relevant
books and records in their possession. No such third party claim,
demand, action or proceeding shall be settled without the prior
written consent of the indemnified party, which shall not be
unreasonably withheld. If a firm written offer is made to settle
any such third party claim, demand, action or proceeding and the
indemnifying party proposes to accept such settlement and the
indemnified party refuses to consent to such settlement, then:
(i) the indemnifying party shall be excused from, and the
indemnified party shall be solely responsible for, all further
defense of such third party claim, demand, action or proceeding;
and (ii) the maximum liability of the indemnifying party
relating to such third party claim, demand, action or proceeding
shall be the amount of the proposed settlement if the amount
thereafter recovered from the indemnified party on such third party
claim, demand, action or proceeding is greater than the amount of
the proposed settlement.
ARTICLE V
COVENANTS
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5.1 Terms of Debt
Financing . The Purchaser may, at its option, convert all or a
portion of the Bridge Note into equity securities or convertible
debt financing to be offered by the Company in a Future Financing.
The Bridge Note shall convert at a discount of 16.67% of the price
per security offered by the Company in the Future
Financing.
5.2 Issuance of Warrants
under Bridge Note . The Company hereby agrees that at Closing
it shall issue to the Purchaser a five-year warrant to purchase
2,500,000 shares of the Company’s common stock at an exercise
price of $0.40 and otherwise in the form attached hereto as
Exhibit C (the “Warrant”).
ARTICLE VI
MISCELLANEOUS
6.1 Governing Law .
This Agreement and the rights of the parties hereunder shall be
governed in all respects by the laws of the State of New York
wherein the terms of this Agreement were negotiated, without regard
to the conflicts of laws thereof.
6.2 Survival . Except
as specifically provided herein, the representations, warranties,
covenants and agreements made herein shall survive the
Closing.
6.3 Amendment . This
Agreement may not be amended, discharged or terminated (or any
provision hereof waived) without the written consent of the Company
and the Purchaser.
6.4 Successors and
Assigns . Except as otherwise expressly provided herein, the
provisions hereof shall inure to the benefit of, and be binding
upon and enforceable by and against, the successors, assigns,
heirs, executors and administrators of the parties hereto. The
Purchaser may assign its rights hereunder, and the Company may not
assign its rights or obligations hereunder without the consent of
the Purchaser or any of its successors, assigns, heirs, executors
and administrators.
6.5 Entire Agreement .
This Agreement and the other Transaction Documents constitute the
full and entire understanding and agreement between the parties
with regard to the subject matter hereof and thereof.
6.6 Notices, etc . All
notices, demands or other communications given hereunder shall be
in writing and shall be sufficiently given if delivered either
personally or by a nationally recognized courier service marked for
next business day delivery or sent in a sealed envelope by first
class mail, postage prepaid and either registered or certified,
addressed as follows:
Medical Solutions Management
Inc.
237 Cedar Hill
Street
Marlboro MA 01752
Attn: Chief Executive
Officer
With a copy to:
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Andrew B. White,
Esq.
Bingham McCutchen
150 Federal Street
Boston, MA 02110
Vicis Capital Master
Fund
Tower 56, Suite
700
126 E. 56th Street, 7th
Floor
New York, NY 10022
Attn: Shad
Stastney
with a copy to:
Andrew D. Ketter,
Esq.
Quarles & Brady
LLP
411 East Wisconsin
Avenue
Milwaukee, Wisconsin
53202
6.7 Delays or
Omissions . No delay or omission to exercise any right, power
or remedy accruing to any holder of the Bridge Note (or any portion
thereof) upon any breach or default of the Company under this
Agreement shall impair any such right, power or remedy of such
holder nor shall it be construed to be a waiver of any such breach
or default, or an acquiescence, therein, or of or in any similar
breach or default thereafter occurring; nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or
default theretofore or thereafter occurring. Any waiver, permit,
consent or approval of any kind or character on the part of any
holder of any breach or default under this Agreement, or any waiver
on the part of any holder of any provisions or conditions of this
Agreement must be, made in writing and shall be effective only to
the extent specifically set forth in such writing. All remedies,
either under this Agreement or by law or otherwise afforded to any
holder, shall be cumulative and not alternative.
6.8 Severability . The
invalidity of any provision or portion of a provision of this
Agreement shall not affect the validity of any other provision of
this Agreement or the remaining portion of the applicable
provision. It is the desire and intent of the parties hereto that
the provisions of this Agreement shall be enforced to the fullest
extent permissible under the laws and public policies applied in
each jurisdiction in which enforcement is sought. Accordingly, if
any particular provision of this Agreement shall be adjudicated to
be invalid or unenforceable, such provision shall be deemed amended
to delete therefrom the portion thus adjudicated to be invalid or
unenforceable, such deletion to apply only with respect to the
operation of such provision in the particular jurisdiction in which
such adjudication is made.
6.9 Expenses . Each
party shall bear its own expenses and legal fees incurred on its
behalf with respect to the negotiation, execution and consummation
of the transactions contemplated by this Agreement.
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6.10 Consent to
Jurisdiction; Waiver of Jury Trial . EACH OF THE PARTIES TO
THIS AGREEMENT HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO
THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED
THE STATE AND COUNTY OF NEW YORK FOR PURPOSES OF ALL LEGAL
PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE
TRANSACTION DOCUMENTS. EACH OF THE PARTIES TO THIS AGREEMENT
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH SUCH PARTY MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN ANY SUCH COURTS AND
ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN ANY SUCH COURTS HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
RIGHT TO TRIAL BY JURY IN ANY SUCH LEGAL PROCEEDING. EACH OF THE
PARTIES TO THIS AGREEMENT HEREBY CONSENTS TO SERVICE OF PROCESS BY
NOTICE IN THE MANNER SPECIFIED IN SECTION 6.6 AND IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION SUCH
PARTY MAY NOW OR HEREAFTER HAVE TO SERVICE OF PROCESS IN SUCH
MANNER.
6.11 Titles and
Subtitles . The titles of the articles, sections and
subsections of this Agreement are for convenience of reference only
and are not to be considered in construing this
Agreement.
6.12 Further
Assurances . The parties agree to execute and deliver all such
further documents, agreements and instruments and take such other
and further action as may be necessary or appropriate to carry out
the purposes and intent of this Agreement.
6.13 Counterparts .
This Agreement may be executed in any number of counterparts, each
of which shall be an original, but all of which together shall
constitute one instrument.
[remainder of page
intentionally left blank]
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IN WITNESS WHEREOF, the
parties hereto have duly executed this Note Purchase Agreement, as
of the day and year first above written.
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| COMPANY: |
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| MEDICAL SOLUTIONS MANAGEMENT INC. |
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/s/ Brian
Leseperance
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| Name: |
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Brian
Lesperance |
| Title: |
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President
and Chief Executive Officer |
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| PURCHASER: |
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| VICIS CAPITAL MASTER FUND |
| By: Vicis Capital LLC |
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/s/ Keith Hughes
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| Name: |
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Keith
Hughes |
| Title: |
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Chief
Financial Officer |
9
EXHIBIT
A
FORM OF
NOTE
NEITHER THIS NOTE NOR THE SECURITIES
INTO WHICH IT MIGHT CONVERT HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY
STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, PLEDGED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR THE COMPANY
RECEIVES AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
COMPANY, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE
COMPANY, STATING THAT SUCH SALE, TRANSFER, PLEDGE, ASSIGNMENT OR
HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
DELIVERY REQUIREMENTS OF THE ACT.
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| $1,000,000 |
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Marlboro, Massachusetts |
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December , 2007 |
MEDICAL SOLUTIONS MANAGEMENT
INC.
PROMISSORY NOTE
Medical Solutions Management
Inc., a Nevada corporation (the “Company”), for value
received, hereby promises to pay to Vicis Capital Master Fund (the
“Holder”) on December 16, 2008 (the
“Maturity Date”), the principal amount of One Million
Dollars ($1,000,000), and all interest accrued thereon, in
accordance with the terms hereof, until paid in accordance with the
terms hereof. This Note is issued in connection with that certain
Note Purchase Agreement (the “Note Purchase Agreement”)
of even date herewith between the Company and the
Holder.
1. Terms of Note
.
1.1. Interest .
Interest shall accrue on the unpaid principal balance of this Note
from the date hereof and shall be payable at the rate of five
percent (5%) per annum, computed on the basis of a 365 day
year for the actual number of days elapsed since the date hereof,
until all unpaid principal under this Note shall have been repaid
in full.
1.2. Prepayment . No
portion of the principal amount of this Note may be paid by the
Company at any time prior to the Maturity Date (including any
extension thereof).
1.3. Conversion . This
Note shall be convertible into securities offered by the Company in
a future financing pursuant to the terms set forth in
Section 5.1 of the Note Purchase Agreement.
2. Usury . This Note
is hereby expressly limited so that in no event whatsoever shall
the amount paid or agreed to be paid to the Holder hereunder exceed
the amount permissible under applicable law. If at any time the
performance of any provision of this Note involves a
payment exceeding the limit of the price
that may be validly charged for the loan, use, forbearance or
detention of money under applicable law, then automatically and
retroactively, ipso facto , the obligation to be performed
shall be reduced to such limit, it being the specific intent of the
Company and the Holder that all payments under this Note are to be
credited first to interest, if any, as permitted by law, but not in
excess of the lesser of (a) the agreed rate of interest set
forth herein and (b) that permitted by law, and the balance
toward the reduction of principal. The provisions of this
Section 2 shall never be superseded or waived and shall
control every other provision of this Note.
3. Miscellaneous
.
3.1. Transfer of Note
. The Holder may not assign or otherwise transfer this Note (or any
portion hereof) or any of its rights hereunder without the prior
written consent of the Company, and no interest herein shall be
pledged or otherwise encumbered by the Holder without the prior
written consent of the Company, and any such attempted disposition
of this Note or any portion hereof shall be of no force or
effect.
3.2. Titles and
Subtitles . The titles and subtitles used in this Note are for
convenience only and are not to be considered in construing or
interpreting this Note.
3.3. Notices . All
notices required or permitted hereunder shall be in writing and
shall be deemed effectively given: (a) upon personal delivery
to the party to be notified; (b) when sent by confirmed
facsimile or electronic transmission if sent during normal business
hours of the recipient on a business day, or if not, then on the
next business day; or (c) one (1) day after deposit with
a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt (or, in the case of
non-U.S. residents, two (2) business days after deposit with
an internationally recognized overnight courier, specifying
international priority delivery, with written verification of
receipt). All communications shall be sent to the parties at the
following addresses or at such other address as shall be given in
writing by a party to the other parties:
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Holder: |
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Vicis
Capital Master Fund |
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Tower 56,
Suite 700 |
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126 E.
56th Street, 7th Floor |
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New York,
NY 10022 |
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Attn:
Shad Stastney |
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Company: |
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Medical
Solutions Management Inc. |
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237 Cedar
Hill Street |
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Marlboro, MA
01752 |
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Attention: |
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Chief
Executive Officer |
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With a copy to: |
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Andrew B. White, Esq. |
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Bingham McCutchen LLP |
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150 Federal Street |
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Boston, MA 02110 |
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3.4. Collection Costs
. Should all or any part of the indebtedness represented by this
Note be collected by action at law, or in bankruptcy, insolvency,
receivership or other court proceedings, or should this Note be
placed in the hands of attorneys for collection after default, the
Company hereby promises to pay to the Holder, upon demand by the
Holder at any time, in addition to the outstanding principal and
all (if any) other amounts payable on or in respect of this Note,
all court costs and reasonable attorneys’ fees and other
collection charges and expenses incurred or sustained by the
Holder.
3.5. Amendments and
Waivers . Any term of this Note may be amended (either
generally or in a particular instance and either retroactively or
prospectively), with the written consent of the Company and the
Holder. Any amendment effected in accordance with this
Section 3.5 shall be binding upon the Holder and the Company
and their successors and assigns. Any forbearance, failure or delay
by the Holder in exercising any right, power or remedy under this
Note or otherwise available to the Holder shall not be deemed to be
a waiver of such right, power or remedy, nor shall any single or
partial exercise of any right, power or remedy preclude the further
exercise thereof.
3.6. Severability . If
one or more provisions of this Note are held to be unenforceable
under applicable law, such provision shall be excluded from this
Note and the balance of the Note shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance
with its terms.
3.7. Governing Law .
This Note shall be governed by and construed and enforced in
accordance with the laws of the Commonwealth of Massachusetts,
without giving effect to its conflicts of laws
principles.
3.8. Certain Waivers .
The Company hereby irrevocably waives notice of acceptance,
presentment, notice of nonpayment, protest, notice of protest, suit
and all other conditions precedent in connection with the delivery,
acceptance, collection and/or enforcement of this Note or any
collateral or security therefor.
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IN WITNESS WHEREOF, this Note
has been executed and delivered as a sealed instrument on the date
first above written by the duly authorized representative of the
Company.
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| MEDICAL SOLUTIONS MANAGEMENT INC. |
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| By: |
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| Name: |
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Brian
Lesperance |
| Title: |
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President
and Chief Executive Officer |
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Acknowledged and Agreed to:
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VICIS CAPITAL MASTER FUND
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| By: Vicis Capital LLC |
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| Name: |
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Keith
Hughes |
| Title: |
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Chief
Financial Officer |
- 4 -
EXHIBIT
B
FORM OF REGISTRATION
RIGHTS AGREEMENT
REGISTRATION RIGHTS
AGREEMENT
REGISTRATION RIGHTS AGREEMENT
made this __ day of December, 2007 by and between Medical Solutions
Management Inc., a Nevada corporation (the “Company”),
and Vicis Capital Master Fund (the
“Holder”).
RECITALS :
WHEREAS, simultaneously
herewith, the Company and the Holder are entering into a Note
Purchase Agreement (the “Purchase Agreement”) pursuant
to which the Company is issuing to the Holder a warrant (the
“Warrant”) to purchase 2,500,000 shares of the
Company’s common stock; and
WHEREAS, the execution and
delivery of this Agreement is a condition to the closing of the
Purchase Agreement.
NOW THEREFORE, in
consideration of the agreements set forth herein the parties agree
as follows:
1. Definitions . As
used in this Agreement, the following terms shall have the
following respective meanings:
“Common Stock”
means the common stock, $0.001 par value per share, of the Company
and any equity securities issued or issuable with respect to the
Common Stock in connection with a reclassification,
recapitalization, merger, consolidation or other
reorganization.
“Warrant Shares”
means the shares of Common Stock or other equity securities issued
or issuable upon exercise of the Warrant.
“Exchange Act”
means the Securities Exchange Act of 1934, as amended, or any
similar Federal statute, and the rules and regulations of the SEC
issued under such Act, as they each may, from time to time, are in
effect.
“Holder” shall
have the meaning set forth in the Preamble and any of such
Holder’s successors or assigns.
“Person” means
any individual, corporation, limited liability company, limited or
general partnership, joint venture, association, joint-stock
company, trust, unincorporated organization or government or any
agency or political subdivisions thereof.
“Registration
Statement” means a registration statement filed by the
Company with the SEC for a public offering and sale of securities
of the Company (other than a registration statement on Form S-8 for
an employee benefit plan or dividend reinvestment plan or a
registration statement on Form S-4 for a merger, consolidation or
acquisition on Form S-4 or
Page 1
any successor form, or any other form
for a limited purpose, or any registration statement covering only
securities proposed to be issued in exchange for securities or
assets of another corporation).
“Registration
Expenses” means the expenses described in
Section 4.
“Registrable
Securities” means any (i) Warrant Shares and
(ii) shares of Common Stock issued or issuable, directly or
indirectly, with respect to the Common Stock referenced above. As
to any particular Registrable Securities, such securities shall
cease to be Registrable Securities when (x) a registration
statement with respect to the sale of such securities shall have
been declared effective under the Securities Act and such
securities shall have been disposed of in accordance with such
registration statement, or (y) such securities may be sold
pursuant to Rule 144 (or any successor provision) under the
Securities Act.
“SEC” means the
Securities and Exchange Commission.
“Securities Act”
means the Securities Act of 1933, as amended, or any similar
Federal statute, and the rules and regulations of the SEC issued
under such Act, as they each may from time to time, be in
effect.
“Selling
Stockholder” means a Holder who has requested its Registrable
Securities to be registered pursuant to Section 2
hereof.
2. Piggyback
Registration . If, at any time, the Company proposes or is
required to register any of its equity securities or securities
convertible or exchangeable for equity securities under the
Securities Act (other than pursuant to (i) registration on
such form or similar form(s) solely for registration of securities
in connection with an employee benefit plan or dividend
reinvestment plan, Form S-8 or (ii) a merger,
consolidation or acquisition, Form S-4), whether or not for
its own account, the Company shall give at least 10 (ten) days
written notice of its intention to do so to each Holder of record
of Registrable Securities. Upon the written request of any Holder,
made within 10 days following the receipt of any such written
notice (which request shall specify the maximum number of
Registrable Securities intended to be disposed of by such Holder
and the intended method of distribution thereof), the Company shall
use its best efforts to cause all such Registrable Securities, each
Holder of which have so requested the registration thereof, to be
registered under the Securities Act (with the securities which the
Company at the time proposes to register) to permit the sale or
other disposition by each Holder (in accordance with the intended
method of distribution thereof) of the Registrable Securities to be
so registered. There is no limitation on the number of piggyback
registrations pursuant to the preceding sentence which the Company
is obligated to effect.
If a registration relates to
an underwritten offering, the Company shall so advise the Holders
of Registrable Securities. In such event, the right of any such
Holder to have its Registrable Securities included in such
registration shall be conditioned upon such Holder’s
participation in such underwriting and the inclusion of such
Holder’s Registrable Securities in the underwriting to the
extent provided herein. All Holders proposing to distribute their
Registrable Securities through such underwriting (together with the
Company) shall enter into an underwriting agreement in customary
form with the underwriter or underwriters selected for such
underwriting by the Company. Each Holder hereby agrees that, if
requested by the Company or
Page 2
the representative of the underwriters
of Common Stock (or other securities) of the Company, such Holder
shall not sell, transfer, make any short sale of, grant any option
for the purchase of, or enter into any hedging or similar
transaction with the same economic effect as a sale, any Common
Stock (or other securities) of the Company held by such Holder
(other than those included for sale in the registration) for a
period specified by the Company and the representative of the
underwriters of Common Stock (or other securities) of the Company
not to exceed 180 days following the effective date of a
registration statement of the Company filed under the Securities
Act.
Notwithstanding any other
provision of this Agreement, if the underwriter or underwriters
reasonably determine in good faith that marketing factors require a
limitation of the number of shares to be underwritten, the number
of shares that may be included in the underwriting shall be
allocated as follows: (i) first, to the securities the Company
proposes to sell; (ii) second, to the Registrable Securities
requested to be included in such registration by the Holders
seeking registration under this Section 2 on a pro rata
basis based on the total number of Registrable Securities held by
such Holders; and (iii) third, to the Registrable Securities
held by Holders other than Holders who requested that their
Registrable Securities be included in such registration under this
Section 2 pro rata based on the total number of
Registrable Securities held by such Holders; provided ,
however , that in no event shall the amount of securities of
the participating Holders included in the registration be reduced
below 25% of the total amount of securities included in such
offering. If any Holder disapproves of the terms of any such
underwriting, such Holder may elect to withdraw therefrom by
written notice to the Company and the underwriter, delivered at
least 10 days prior to the effective date of the registration
statement. Any Registrable Securities excluded or withdrawn from
such underwriting shall be excluded and withdrawn from the
registration. For any Holder that is a partnership, limited
liability company or corporation, the partners, former partners,
members, former members and stockholders of such Holder, or the
estates and family members of any such partners, former partners,
members, former members or stockholders and any trusts for the
benefit of any of the foregoing persons shall be deemed to be a
single “Holder,” and any pro rata reduction with
respect to such “Holder” shall be based upon the
aggregate amount of shares carrying registration rights owned by
all entities and individuals included in such “Holder,”
as defined in this sentence.
The Company shall have the right to
terminate or withdraw any registration initiated by it under this
Section 2 prior to the effectiveness of such registration
whether or not any Holder or any stockholder has elected to include
securities in such registration. The Registration Expenses of such
withdrawn registration shall be borne by the Company in accordance
with Section 4.
3. Registration
Procedures .
(a) If and whenever the
Company is required by the provisions of this Agreement to use its
best efforts to effect the registration of any of the Registrable
Securities under the Securities Act, the Company shall:
(i) file with the SEC a
Registration Statement with respect to such Registrable Securities
and use its best efforts to cause that Registration Statement to
become and remain effective;
Page 3
(ii) as expeditiously as
possible prepare and file with the SEC any amendments and
supplements to the Registration Statement and the prospectus
included in the Registration Statement as may be necessary to keep
the Registration Statement effective for a period of not less than
nine months from the effective date;
(iii) as expeditiously as
possible furnish to Holder such reasonable numbers of copies of the
prospectus, including a preliminary prospectus, in conformity with
the requirements of the
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