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THIS NOTE HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 OR ANY OTHER APPLICABLE SECURITIES LAWS AND
MAY NOT BE TRANSFERRED ABSENT REGISTRATION THEREUNDER OR AN
APPLICABLE EXEMPTION THEREFROM.
MAGNITUDE INFORMATION SYSTEMS,
INC.
BRIDGE LOAN NOTE
DUE JULY 27, 2007
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$50,000.00
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Branchburg, New Jersey
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July 27, 2007
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Magnitude Information Systems, Inc., a Delaware
corporation (the " Company "), for value received hereby
promises to pay to _____________, (" Holder "), the
principal sum of FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00) on
July 27, 2007, in such coin or currency of the United States of
America as at the time of payment shall be legal tender for the
payment of public and private debts, and to pay interest at the
rate of 1% per month on the principal amount of $50,000.00,
accruing from April 27, 2007, or so much thereof as shall be
outstanding at maturity, plus an origination fee of $5,000.00 and a
grant of shares, in accordance with Section 2 below, also due at
maturity.
1. Events of
Default .
In case one or more of the following " Events
of Default " shall have occurred and be continuing:
(a) default in the
due and punctual payment of the principal, the accrued interest and
origination fee due under this Note upon maturity; or
(b) a decree or
order by a court shall have been entered adjudging the Company a
bankrupt or insolvent, or appointing a receiver or trustee for the
affairs or assets of the Company, and such decree or order shall
have remained in force undischarged or unstayed for a period of 60
days; or
(c) the Company
shall institute proceedings to be adjudicated a voluntary bankrupt,
or shall consent to the filing of any such petition or to the
appointment of a receiver or trustee or shall make an assignment
for the benefit of creditors.
Except in the cases under 1(b) or 1(c), if, for
whatsoever reason, the Company fails to pay all of the principal,
accrued interests and origination fee upon maturity, this Note and
the payment obligations hereunder shall be automatically extended
for an additional 90 days and the Company shall issue five hundred
thousand (500,000) shares of its common stock t
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