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Convertible Note

 

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Title:

Convertible Note

Entities:

OmniComm Systems, Inc.; OmniComm Systems Inc.

Date:

2003

Size:

Preview shows 3KB of 15KB total

Price:

$42

ID:

#163071

 

 

► Financing ► Notes ► Convertible Notes
► Technology ► Software & Programming

 

 

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CONVERTIBLE NOTE

THIS NOTE AND THE COMMON STOCK INTO WHICH IT IS CONVERTIBLE (COLLECTIVELY, THE
"SECURITIES") HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE
"ACT") OR UNDER THE LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY
NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS (AS THAT TERM IN
IS DEFINED IN REGULATION S UNDER THE ACT), UNLESS THEY ARE REGISTERED UNDER THE
ACT AND UNDER THE LAWS OF THE STATES WHERE EACH SALE IS MADE, OR AN EXEMPTION
FROM REGISTRATION REQUIREMENTS IS AVAILABLE IN THE OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY.

FOR VALUE RECEIVED, OmniComm Systems, Inc., a Florida corporation
(hereinafter called "Borrower"), hereby promises to pay to _____________(the
"Holder") or order without demand, the sum of _________, with interest accruing
at an annual rate of ten percent (10%), on June 30, 2004 (the "Maturity Date"),
as such date may be extended by agreement of the parties hereto. This
Convertible Note is issued pursuant to a subscription agreement by and between
the Borrower and the Holder dated the date hereof (the "Subscription Agreement")
the terms and conditions of which are hereby incorporated herein by this
reference.

The following terms shall apply to this Note:

ARTICLE I
DEFAULT REALTED PROVISIONS

1.1 PAYMENT GRACE PERIOD. The Borrower shall have a thirty (30) day
grace period to pay any monetary amounts due under this Note.

1.2 CONVERSION PRIVILEGES. The Conversion Privileges set forth in
Article II shall remain in full force and effect from the date of this Note
until the Note principal and accrued interest is paid in full.

1.3 INTEREST RATE. Borrower shall pay interest on the outstanding
principal amount of the Note (a) semi-annually on June 30th and December 31st of
each year, and if either June 30th or December 31st of any year is not a
business day then on the next succeeding business day (an "Interest Payment
Date"), at a rate of 10% per annum or (b) at the option of the Holder made in
writing to the Borrower at least 30 days prior to an Interest Payment Date, to
be carried forward as accrued interest on the Note and paid on the next Interest
Payment Date unless further deferred and, if there is no next Interest Payment
Date, paid at the Maturity Date, accelerated or otherwise, at the annual rate of
10% per annum together with such principal payment.

1.4 INTEREST RATE ADJUSTMENT. In the event 50% of the cumulative Holder
or Holders demand registration pursuant to such registration rights as set in
the Subscription Agreement and the registration statement is not declared
effective within 90 days after the date of notice of demand, then the interest
rate on the Convertible Note beginning on the next quarter following expiration
of the 90 day period, shall be increased to 15%, and shall remain at 15% until
said registration statement is effective, at which time the interest rate shall

 

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