Document:

zynex8kex102_9232008.htm

    
      

      

    

     

    Exhibit
10.2

    

    PROMISSORY
NOTE – REVOLVING LOAN

    

    
      	
              $3,000,000.00

            	
              September
      22, 2008

            

    

    

    FOR VALUE RECEIVED, the undersigned,
Zynex Inc., and Zynex Medical, Inc., f/d/b/a Stroke Recovery Systems,
(collectively, “Borrower”) jointly
and severally promise to pay to the order of Marquette Business Credit, Inc.
d/b/a Marquette Healthcare Finance, with an office in Portland, Multnomah
County, Oregon (“Lender”), the
principal amount of THREE MILLION AND NO/100 DOLLARS ($3,000,000.00), or such
lesser amount as may from time to time be advanced and remain unpaid and
outstanding hereunder, together with accrued interest at the rate prescribed in
that certain Loan and Security Agreement dated as of even date herewith executed
by Borrower and Lender (as amended, modified, or restated from time to time, the
“Loan
Agreement”).

    

    This Promissory Note – Revolving Loan
(the “Note”) is
executed and delivered by Borrower pursuant to the Loan
Agreement.  This Note evidences all advances made by Lender to
Borrower under the Loan Agreement and this Note is subject to the terms and
provisions of the Loan Agreement.  All capitalized terms used herein,
unless otherwise defined herein, shall have the same definitions herein as are
assigned to such terms in the Loan Agreement.  Lender’s records shall
be conclusive proof of loans, payments, and interest accruals hereunder, absent
proof of error by Borrower.

    

    The principal of, and accrued and
unpaid interest on, this Note shall be due and payable as provided in the Loan
Agreement.

    

    Upon the occurrence of an Event of
Default under the Loan Agreement (or any other agreement between Borrower and
Lender) and Lender’s notice to Borrower of acceleration of the amounts due under
this Note, or upon the termination of the Loan Agreement (whether terminated by
Borrower or Lender), (i) the principal of, and all interest then accrued on,
this Note will be due and payable without presentment, demand, or protest, all
of which Borrower hereby expressly waives, (ii) the commitment of Lender to make
Loans under the Loan Agreement will immediately terminate, and (iii) Lender may
exercise any other right provided in the Loan Documents, or at law or in
equity.

    

    From and after the occurrence of an
Event of Default, any principal and, to the extent permitted by law, accrued
interest thereon, shall bear interest, payable on demand, for each day from and
including the date of the Event of Default, but excluding, the date of actual
payment, at a rate per annum equal to the lesser of (i) the Default Rate and
(ii) the Maximum Rate, until the principal and accrued interest has been paid in
full or, if earlier, until such Event of Default is cured or waived in writing
by Lender.  Lender may, at its option, add the amount of any interest
payment due and unpaid on this Note to the unpaid principal outstanding
hereunder, in which event such amount shall thereafter be treated as an advance
under the Loan evidenced by this Note.

    

    
      
        
           

        

        
          Exhibit
10.2 - Page 1 of 4

          
            

          

        

        
           

        

      

    

    

    No delay by Lender in the exercise of
any power or right hereunder shall operate as a waiver of, or impair, Lender’s
rights and remedies under this Note or the Loan Agreement.  Borrower
and each other party ever liable hereunder severally and expressly waive
presentment, demand, notice of intention to demand, notice of intention to
accelerate, notice of acceleration, protest, notice of protest and non-payment
and any other notice of any kind, and agrees that its liability hereunder shall
not be affected by any renewals, extensions or modifications, from time to time,
of the time or manner of payment hereof, or by any release or modification of
any security for the obligations and indebtedness evidenced hereby.

    

    Borrower hereby promises to pay to
Lender all reasonable costs and expenses of enforcement and collection of any
amounts due under this Note, including without limitation, reasonable attorneys’
fees (including, without limitation, fees incurred pursuant to or in connection
with a proceeding brought pursuant to 11 U.S.C., the Federal Bankruptcy
Code).

    

    Each Borrower is jointly and severally
liable under this Note and neither is an accommodation party.

    

    Notwithstanding
anything contained herein, it is not intended by Lender to contract for, charge,
receive, collect or apply interest calculated at a rate in excess of the Maximum
Rate.  Further, Lender shall never be deemed to have contracted for or
be entitled to charge, receive, collect or apply as interest on the Loan, any
amount in excess of the amount permitted and calculated at the Maximum Rate,
and, in the event Lender ever contracts for, charges, receives, collects or
applies as interest any amount in excess of the amount permitted and calculated
at the Maximum Rate, such amount which would be excessive interest shall be
applied to the reduction of the unpaid principal balance of the Loan, and, if
the principal balance of the Loans has been paid in full, any remaining excess
shall forthwith be paid to Borrower.  In determining whether or not
the interest paid or payable under any specific contingency exceeds the Maximum
Rate, Borrower and Lender shall, to the maximum extent permitted under
applicable law, (i) characterize any non-principal payment (other than payments
which are expressly designated as interest payments hereunder) as an expense,
fee or premium, rather than as interest, (ii) exclude voluntary prepayments and
the effect thereof, and (iii) spread the total amount of interest throughout the
entire contemplated term of the Loan.

    

    This Note shall be governed by and
construed according to the laws of the State of Oregon, except as to provisions
relating to the rate of interest to be charged on the unpaid principal hereof,
in which case, to the extent federal law (including, without limitation, 12
U.S.C. Section 85, as now enacted or hereafter amended) permits Lender to
contract for, charge or receive a higher rate of interest or permits Lender to
contract for, charge or receive interest at a higher rate permitted by the laws
of another jurisdiction, such federal law (and, if appropriate, the law of such
other jurisdiction) will be applicable in determining the Maximum Rate, instead
of the laws of the State of Oregon.

    

    
      
        
           

        

        
          Exhibit
10.2 - Page 2 of 4

          
            

          

        

        
           

        

      

    

    

    

    Statutory
Disclosure.  UNDER OREGON LAW, MOST AGREEMENTS, PROMISES, AND
COMMITMENTS MADE BY A LENDER AFTER OCTOBER 3, 1989, CONCERNING LOANS AND OTHER
CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES OR
SECURED SOLELY BY THE BORROWER’S RESIDENCE MUST BE IN WRITING, EXPRESS
CONSIDERATION, AND BE SIGNED BY A LENDER TO BE ENFORCEABLE.
(ORS 41.580)

     

    [Signature
page to follow]

    

    
      
        
           

        

        
          Exhibit
10.2 - Page 3 of 4

          
            

          

        

        
           

        

      

    

    

    

    

    THIS NOTE AND ALL OTHER WRITTEN
AGREEMENTS EXECUTED IN CONNECTION HEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS,
OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN THE PARTIES.

    

    
      	
               
      

            	
              BORROWER:

            

    

    

    

    
      	
               
      

            	
              Zynex,
      Inc.

            
	 	 

    

     

     

    
      	 	      
              By:
      /s/ Thomas
      Sandgaard

              Name:  Thomas
      Sandgaard

              Title:  Chief
      Executive Officer and President

            
	 	 

    

     

    

    

    

    
      	
               
      

            	
              BORROWER:

            

    

    

    

    
      	
               
      

            	
              Zynex
      Medical, Inc.

            

    

    
      	
               
      

            	
              f/d/b/a
      Stroke Recovery Systems

            

    

     

    
       

      
        	 	      
                      
                  By: /s/ Thomas
      Sandgaard

                  Name:  Thomas
      Sandgaard

                  Title:  President

                   

                

              
	 	 

      

       

      

    

    Exhibit 10.2 - Page 4 of 4zynex8kex103_9232008.htm

     

    
      

      

    

    

      Exhibit
10.3

       

      PLEDGE
AGREEMENT

       

      This
Pledge Agreement (“Pledge
Agreement”) is between Marquette Business Credit, Inc., d/b/a Marquette
Healthcare Finance (“Lender”) and Zynex, Inc., a
Nevada corporation (“Pledgor”).

       

      RECITALS

       

      
        	
                A.  

              	
                Lender,
      Pledgor and Zynex Medical, Inc., f/d/b/a Stroke Recovery Systems, Inc., a
      Colorado corporation (“Zynex Medical”) are
      parties to a Loan and Security Agreement dated as of the date of this
      Pledge Agreement, and associated documents and agreements (collectively,
      the “Loan
      Documents”).

              

      

       

      
        	
                B.  

              	
                Pledgor
      is the sole shareholder of Zynex
Medical.

              

      

       

      
        	
                C.  

              	
                It
      is a condition precedent to the agreement of Lender to enter into the Loan
      Documents that Pledgor execute and deliver this Pledge Agreement in favor
      of Lender.

              

      

       

      AGREEMENT

       

      SECTION
1. DEFINITIONS

       

      
        	
                1.1  

              	
                Capitalized
      terms not otherwise defined in this Pledge Agreement have the meanings
      ascribed in the Loan and Security
Agreement.

              

      

       

      
        	
                1.2  

              	
                The
      following term used in this Pledge Agreement will have the following
      meaning:

              

      

       

      “Shares” means Pledgor’s entire
interest in (i) all shares now owned of Zynex Medical’s stock, presently
numbering 1,000,000, representing all of the issued and outstanding shares of
Zynex Medical, or (ii) all shares of Zynex Medical’s stock hereafter acquired by
Pledgor.

       

      SECTION
2. SECURITY
INTEREST

       

      
        	
                2.1  

              	
                Grant.  As
      security for the full and prompt payment and performance of all of Pledgor
      and Zynex Medical’s Obligations to Lender, Pledgor grants Lender a
      security interest in the Shares.

              

      

       

      
        	
                2.2  

              	
                Perfection.

              

      

       

      
        	
                (a)  

              	
                Contemporaneously
      with the signing and delivery of this Pledge Agreement, Pledgor is
      delivering to Lender the share certificates and other documents
      representing the Shares, together with one or more stock powers or
      assignments indorsed in blank.

              

      

       

      
        	
                (b)  

              	
                Pledgor
      will promptly deliver to Lender all share certificates and other documents
      representing any shares in Zynex Medical that Pledgor subsequently
      acquires, together with one or more stock powers or assignments indorsed
      in blank.

              

      

       

      
        
          
            

            1 –
PLEDGE AGREEMENT

            PDX/117825/163052/GOA/2799439.4

          

           

        

        
          Exhibit
10.3 - Page 1 of 5

          
            

          

        

        
           

        

      

      

       

      
        	
                (c)  

              	
                Pledgor
      authorizes Lender to file all financing statements that Lender deems
      reasonably necessary to perfect and continue Lender’s security interest in
      the Shares.  Pledgor ratifies Pledgor’s prior authorization of
      Lender to file similar financing statements before the date of this Pledge
      Agreement.

              

      

       

      
        	
                (d)  

              	
                Upon
      Lender’s request, Pledgor will take any other actions that Lender deems
      reasonably necessary to perfect and continue Lender’s security interest in
      the Shares.

              

      

       

      
        	
                2.3  

              	
                Termination.  Upon
      Pledgor’s request after the full payment and performance of the
      Obligations, Lender will re-deliver to Pledgor the Shares and terminate
      Lender’s financing statement concerning the
  Shares.

              

      

       

      SECTION
3. REPRESENTATIONS
AND WARRANTIES OF PLEDGOR

       

      Pledgor
represents and warrants to Lender as follows:

       

      
        	
                3.1  

              	
                Authority.  Pledgor
      has full power and authority to sign and deliver this Pledge Agreement and
      to perform all of Pledgor’s obligations under this Pledge
      Agreement.

              

      

       

      
        	
                3.2  

              	
                Binding
      Obligation.  This Pledge Agreement is the legal, valid,
      and binding obligation of Pledgor, enforceable against Pledgor in
      accordance with its terms, except as enforceability may be limited by
      bankruptcy, insolvency, or other similar laws of general application or by
      general principles of equity.

              

      

       

      
        	
                3.3  

              	
                No
      Conflicts.  The signing and delivery of this Pledge
      Agreement by Pledgor and the performance by Pledgor of all of Pledgor’s
      obligations under this Pledge Agreement will not:  (a) breach
      any agreement to which Pledgor is a party, or give any person the right to
      accelerate any obligation of Pledgor; (b) violate any law, judgment, or
      order to which Pledgor is subject; or (c) require the consent,
      authorization, or approval of any person, including but not limited to any
      governmental body.

              

      

       

      
        	
                3.4  

              	
                Ownership.  Pledgor
      has good title to the Shares, free from all liens, mortgages, pledges,
      security interests, and other encumbrances except encumbrances in favor of
      Lender.  Pledgor has the right and power to transfer and assign
      the Shares to Lender, free from any restriction or
    condition.

              

      

       

      SECTION
4. COVENANTS
OF PLEDGOR

       

      
        	
                4.1  

              	
                Ownership.  Pledgor
      will keep the Shares free from all liens, mortgages, pledges, security
      interests, and other encumbrances except encumbrances in favor of
      Lender.  Pledgor will not permit any person to restrict or
      condition Pledgor’s right and power to:  (a) transfer and assign
      the Shares to Lender; or (b) vote or exercise the
  Shares.

              

      

       

      
        	
                4.2  

              	
                No Disposition of
      Shares.  Pledgor will not sell, encumber, license,
      distribute, or otherwise dispose of any of the
  Shares.

              

      

       

      
        
           

        

        
          Exhibit
10.3 - Page 2 of 5

          
            

          

        

        
           

        

      

      

       

      SECTION
5. RIGHTS
AND OBLIGATIONS CONCERNING SHARES

       

      
        	
                5.1  

              	
                Voting.  Before
      an Event of Default, and after any Event of Default that has been cured,,
      Pledgor may vote and exercise the
Shares.

              

      

       

      SECTION
6. DEFAULT
AND REMEDIES

       

      
        	
                6.1  

              	
                Default.  Pledgor
      shall be in default under this Pledge Agreement
  upon:

              

      

       

      
        	
                (a)  

              	
                Any
      Event of Default under the Loan and Security Agreement or under any of the
      other Loan Documents; or

              

      

       

      
        	
                (b)  

              	
                Any
      failure to perform under this Pledge Agreement within fifteen (15) days
      after Lender’s written notice to Pledgor and opportunity to cure such
      noticed failure to perform.

              

      

       

      
        	
                6.2  

              	
                Remedies.  On
      and after any default of this Pledge Agreement, Lender may exercise the
      following remedies, which are cumulative and which may be exercised
      singularly or concurrently:

              

      

       

      
        	
                (a)  

              	
                Foreclose
      on the Shares in any manner authorized by
law;

              

      

       

      
        	
                (b)  

              	
                Exercise
      any remedy available to Lender under any Loan
  Document;

              

      

       

      
        	
                (c)  

              	
                Exercise
      the right to vote and to exercise all rights with respect to the
      Shares;

              

      

       

      
        	
                (d)  

              	
                Exercise
      any remedy available to Lender under the Uniform Commercial Code;
      and

              

      

       

      
        	
                (e)  

              	
                Exercise
      any other remedy available to Lender at law or in
  equity.

              

      

       

      
        	
                6.3  

              	
                Additional Rights and
      Obligations.  After any default under this Pledge
      Agreement and upon Lender’s request, Pledgor will assist Lender in
      exercising any remedy available to Lender under this Pledge
      Agreement.

              

      

       

      
        	
                SECTION
      7.  

              	
                AUTHORIZATION
      AND WAIVERS

              

      

       

      
        	
                7.1  

              	
                Authorization.  Pledgor
      authorizes Lender to take any action that Lender deems desirable to
      perfect or continue Lender’s security interest in the
    Shares.

              

      

       

      
        	
                7.2  

              	
                Waiver by
      Pledgor.  Pledgor waives demand, presentment for payment,
      notice of dishonor or nonpayment, protest, notice of protest, and lack of
      diligence in collection, and agrees that Lender may amend any agreement
      evidencing, guaranteeing, or securing any of the Obligations, take or not
      take any action respecting any of the Collateral under the Loan Documents,
      or extend or postpone the due dates of the Obligations without affecting
      Pledgor’s liability under this Pledge
Agreement.

              

      

       

      
        
           

        

        
          Exhibit
10.3 - Page 3 of 5

          
            

          

        

        
           

        

      

      

       

      
        	
                7.3  

              	
                No Waiver by
      Lender.  No waiver will be binding on Lender unless it is
      in writing and signed by Lender.  Lender’s waiver of a breach of
      a provision of this Pledge Agreement or any agreement evidencing,
      guaranteeing, or securing any of the Obligations will not be a waiver of
      any other provision or a waiver of a subsequent breach of the same
      provision.  Lender’s failure to exercise any remedy under this
      Pledge Agreement or any agreement evidencing, guaranteeing, or securing
      any of the Obligations will not be considered a waiver by Lender of
      Lender’s right to exercise the
remedy.

              

      

       

      SECTION
8. GENERAL

       

      
        	
                8.1  

              	
                Time of
      Essence.  Time is of the essence with respect to all
      dates and time periods in this Pledge
Agreement.

              

      

       

      
        	
                8.2  

              	
                Binding
      Effect.  This Pledge Agreement will be binding on the
      parties and their respective heirs, personal representatives, successors,
      and permitted assigns, and will inure to their
  benefit.

              

      

       

      
        	
                8.3  

              	
                Amendment.  This
      Pledge Agreement may be amended only by a written document signed by the
      party against whom enforcement is
sought.

              

      

       

      
        	
                8.4  

              	
                Notices.  All
      notices or other communications required or permitted by this Pledge
      Agreement:  (a) must be in writing; (b) must be delivered to the
      parties at the addresses set forth below, or any other address that a
      party may designate by notice to the other parties; and (c) are considered
      delivered upon actual receipt if delivered personally, by fax, or by a
      nationally recognized overnight delivery service, or at the end of the
      third business day after the date of deposit in the United States mail,
      postage pre-paid, certified, return receipt
  requested.

              

      

       

      
        	
                To
      Lender:

              	 
      	
                To
      Pledgor:

              
	 
      	 
      	 
      
	
                Marquette
      Healthcare Finance

              	 
      	
                Zynex,
      Inc.

              
	
                Standard
      Insurance Center

              	 
      	
                8022 
      Southpark Circle, Suite 100

              
	
                900
      SW Fifth Avenue, Suite 1920

              	 
      	
                Littleton,
      CO 80120

              
	
                Portland,
      Oregon  97204

              	 
      	 
      
	 
      	 
      	 
      
	
                Attn:  Jennifer
      Sheasgreen

              	 
      	
                Attn:
      Thomas Sandgaard

              
	
                Jennifer.Sheasgreen@marquette.com

              	 
      	
                tsandgaard@zynexmed.com

              

      

      

       

      
        	
                8.5  

              	
                Severability.  If
      a provision of this Pledge Agreement is determined to be unenforceable in
      any respect, the enforceability of the provision in any other respect and
      of the remaining provisions of this Pledge Agreement will not be
      impaired.

              

      

       

      
        	
                8.6  

              	
                Further
      Assurances.  The parties will sign other documents and
      take other actions reasonably necessary to further effect and evidence
      this Pledge Agreement.

              

      

       

      
        	
                8.7  

              	
                Governing
      Law.  This Pledge Agreement is governed by the laws of
      the State of Oregon, without giving effect to any conflict-of-law
      principle that would result in the laws of any other jurisdiction
      governing this Pledge Agreement.

              

      

       

      
        
           

        

        
          Exhibit
10.3 - Page 4 of 5

          
            

          

        

        
           

        

      

      

       

      
        	
                8.8  

              	
                Venue.  Any
      action or proceeding arising out of this Pledge Agreement will be
      litigated in courts located in Multnomah County, Oregon.  Each
      party consents and submits to the jurisdiction of any local, state, or
      federal court located in Multnomah County,
  Oregon.

              

      

       

      
        	
                8.9  

              	
                Jury
      Waiver.  Pledgor and Lender hereby voluntarily,
      knowingly, irrevocable, and unconditionally waive any right to have a jury
      participate in resolving any dispute (whether based upon contract, tort,
      or otherwise) between Pledgor and Lender arising out of or in any way
      related to this Pledge Agreement.

              

      

       

      
        	
                8.10  

              	
                Attorney’s
      Fees.  The prevailing party in any legal action arising
      under this Pledge Agreement will be entitled to the prevailing party’s
      reasonable attorney's fees and other fees, costs, and expenses of every
      kind, including but not limited to the costs and disbursements specified
      in ORCP 68 A(2), incurred in connection with the legal
    action.

              

      

       

      
        	
                8.11  

              	
                Signatures.  This
      Pledge Agreement may be signed in counterparts.  A fax
      transmission of a signature page will be considered an original signature
      page.  At the request of a party, the other party will confirm a
      fax-transmitted signature page by delivering an original signature page to
      the requesting party.

              

      

       

      Dated
effective:  September 22, 2008

       

      
        	
              	      
                Lender:

              
	
              	 
      
                 

                Marquette
      Business Credit,
      Inc.,                        
      

                d/b/a
      Marquette Healthcare Finance

                 

                 

                 

                 /s/ Jennifer
      Sheasgreen

                By:  Jennifer
      Sheasgreen

                Its:  Senior
      Vice President

              

      

      

      
        	
              	      
                Pledgor:

              
	
              	 
      
                 

                Zynex,
      Inc.

                 

                 

                 

                 /s/
      Thomas Sandgaard

                By:  Thomas
      Sandgaard

                Its:  Chief
      Executive Officer and
President

              

      

       

       

      
Exhibit 10.3 - Page 5 of 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]