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Document Preview Senior Secured Convertible Note |
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Title: |
Senior Secured Convertible Note |
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Entities: |
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Date: |
2003 |
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Preview shows 4KB of 43KB total |
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$40 |
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ID: |
#1256350 |
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<SEQUENCE>4
<FILENAME>vtlv8k121503ex42.txt
<DESCRIPTION>FORM OF SENIOR SECURED NOTE
<TEXT>
THIS PROMISSORY NOTE AND THE SECURITIES OBTAINABLE UPON CONVERSION HEREOF
(COLLECTIVELY, THE "SECURITIES") HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED ("THE ACT"), OR THE SECURITIES LAWS OF
ANY STATE. THE SECURITIES MAY NOT BE PLEDGED, SOLD, ASSIGNED OR TRANSFERRED
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.
SENIOR SECURED CONVERTIBLE NOTE
U.S. $_______ December ___, 2003
FOR VALUE RECEIVED, Vital Living, Inc., a Nevada corporation (the
"Company"), hereby promises to pay to the order of _____________ (the "Lender")
the principal amount of ______________ ($_____________) Dollars (the "Principal
Amount"), together with all accrued but unpaid interest on this Note on December
__, 2008 [fifth anniversary of closing] (the "Maturity Date"), subject to
conversion as provided herein. The outstanding Principal Amount of this Note
shall bear interest at the rate of twelve percent (12%) per annum (calculated
daily on the basis of a 360-day year and actual calendar days elapsed) payable
semi-annually beginning June __, 2004 and thereafter on each June ___ and
December ___. Interest at the rate of eight percent (8%) per annum will be paid
in cash and the balance of four percent (4%) per annum may be paid, at the
Company's sole option, either in cash or in fully paid and non-assessable shares
of the Company's common stock, $0.001 par value per share ("Common Stock"). If,
to the extent permitted hereunder, the Company issues shares of Common Stock to
pay the interest due under this Note ("Interest Shares"), such shares shall be
valued at the average of the last sales price of the Common Stock for the 10
Trading Days ended five business days prior to the relevant interest payment
date.
The first two interest payments to be made under this Note (payments due on
June ___, 2004 and December ___, 2004) have been placed in an interest bearing
escrow account pursuant to that certain escrow agreement, dated as of the date
hereof, between the Company and Graubard Miller, as escrow agent.
Both the Principal Amount and all accrued interest shall be paid in lawful
money of the United States of America and/or, to the extent permitted hereunder,
Interest Shares to the Lender at __________________________, or at such other
address as the Lender may designate by notice in writing to the Company, in
immediately available funds.
If any payment hereunder falls due on a Saturday, Sunday or legal holiday,
it shall be payable on the next succeeding business day and such additional time
shall be included in the computation of interest.
<PAGE>
The Company may redeem this Note, in whole but not in part, commencing
December ___, 2004, upon not less than twenty (20) business days' prior written
notice to the Lender as described in Section 13 hereof ("Redemption Notice") at
the Principal Amount, without premium or penalty, but with all interest accrued
up until the date of prepayment, provided that the last sales price of the
Common Stock is at least $3.00 for the ten (10) consecutive Trading Days (as
defined in Section 5(g), below) ending the day prior to the day on which the
Redemption Notice is sent to the Lender. The sending of the Redemption Notice
shall not affect the Lender's ability to convert the Note at any time prior to
the date set for redemption.
This Note is one of a series of Senior Secured Convertible Notes ("Senior
Notes" or "Notes") containing substantially identical terms and conditions
issued pursuant to a Securities Purchase Agreement ("Securities Purchase
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