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Exhibit 10.2 Form of Callable
Secured Convertible Note due March 28, 2011
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THE SECURITIES MAY NOT BE
SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION
STATEMENT FOR THE SECURITIES UNDER SAID ACT, OR AN OPINION OF
COUNSEL IN FORM,
SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE
TRANSACTIONS
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR UNLESS SOLD
PURSUANT TO RULE
144 OR REGULATION S UNDER SAID ACT.
CALLABLE SECURED CONVERTIBLE NOTE
Valencia, California
March 28, 2008
$__________
FOR VALUE RECEIVED, CONECTISYS CORPORATION, a Colorado corporation
(hereinafter
called the "Borrower"), hereby promises to pay to the order of
________________________ or registered assigns (the "Holder") the
sum of
$_________, on March 28, 2011 (the "Maturity Date"), and to pay
interest on the
unpaid principal balance hereof at the rate of eight percent (8%)
(the "Interest
Rate") per annum from March 28, 2008 (the "Issue Date") until the
same becomes
due and payable, whether at maturity or upon acceleration or by
prepayment or
otherwise, or so much thereof as may be advanced and be
outstanding, with
interest thereon, to be computed on each advance from the date of
its
disbursement. Any
amount of principal or interest on this Note which is not
paid when due shall bear interest at the rate of fifteen percent
(15%) per annum
from the due date thereof until the same is paid ("Default
Interest").
Interest
shall commence accruing on the Issue Date, shall be computed on the
basis of a
365-day year and the actual number of days elapsed and shall be
payable
quarterly provided that no interest shall be due and payable for
any month in
which the Trading Price (as such term is defined below) of the
Common Stock (as
such term is defined below) is greater than $.002625 for each
Trading Day (as
such term is defined below) of the month. All payments due hereunder (to
the
extent not converted into common stock, no par value per share, of
the Borrower
(the "Common Stock") in accordance with the terms hereof) shall be
made in
lawful money of the United States of America. All payments shall be made at
such address as the Holder shall hereafter give to the Borrower by
written
notice made in accordance with the provisions of this Note.
Whenever any
amount
expressed to be due by the terms of this Note is due on any day
which is not a
business day, the same shall instead be due on the next succeeding
day which is
a business day and, in the case of any interest payment date which
is not the
date on which this Note is paid in full, the extension of the due
date thereof
shall not be taken into account for purposes of determining the
amount of
interest due on such date. As used in this Note, the term
"business day" shall
mean any day other than a Saturday, Sunday or a day on which
commercial banks in
the city of New York, New York are authorized or required by law or
executive
order to remain closed. Each capitalized term used herein,
and not otherwise
defined, shall have the meaning ascribed thereto in that certain
Securities
Purchase Agreement, dated March 28, 2008, pursuant to which this
Note was
originally issued (the "Purchase Agreement").
This Note is free from all taxes, liens, claims and encumbrances
with respect to
the issue thereof and shall not be subject to preemptive rights or
other similar
rights of shareholders of the Borrower and will not impose personal
liability
upon the holder thereof. The obligations of the Borrower
under this Note shall
be secured by that certain Security Agreement and Intellectual
Property Security
Agreement, each dated March 28, 2008 by and between the Borrower
and the Holder.
The following terms shall apply to this Note:
ARTICLE I. CONVERSION RIGHTS
1.1
Conversion Right. The
Holder shall have the right from time to time,
and at any time on or prior to the earlier of (i) the Maturity Date
and (ii) the
date of payment of the Default Amount (as defined in Article III)
pursuant to
Section 1.6(a) or Article III, the Optional Prepayment Amount (as
defined in
Section 5.1 or any payments pursuant to Section 1.7, each in
respect of the
remaining outstanding principal amount of this Note to convert all
or any part
of the outstanding and unpaid principal amount of this Note into
fully paid and
non-assessable shares of Common Stock, as such Common Stock exists
on the Issue
Date, or any shares of capital stock or other securities of the
Borrower into
which such Common Stock shall hereafter be changed or reclassified
at the
conversion price (the
"Conversion Price") determined as provided herein (a
"Conversion"); provided, however, that in no event shall the Holder
be entitled
to convert any portion of this Note in excess of that portion of
this Note upon
conversion of which the sum of (1) the number of shares of Common
Stock
beneficially owned by the Holder and its affiliates (other than
shares of Common
Stock which may be deemed beneficially owned through the ownership
of the
unconverted portion of the Notes or the unexercised or unconverted
portion of
any other security of the Borrower (including, without limitation,
the warrants
issued by the Borrower pursuant to the Purchase Agreement) subject
to a
limitation on conversion or exercise analogous to the limitations
contained
herein) and (2) the number of shares of Common Stock issuable upon
the
conversion of the portion of this Note with respect to which the
determination
of this proviso is being made, would result in beneficial ownership
by the
Holder and its affiliates of more than 4.99% of the outstanding
shares of Common
Stock and provided further that the Holder shall not be entitled to
convert any
portion of this Note during any month immediately succeeding a
Determination
Date occurring during a month in which the Borrower exercises its
prepayment
option pursuant to Section 5.2 of this Note. For purposes of the proviso to
the
immediately preceding sentence, beneficial ownership shall be
determined in
accordance with Section 13(d) of the Securities Exchange Act of
1934, as
amended, and Regulations 13D-G thereunder, except as otherwise
provided in
clause (1) of such proviso. The number of shares of Common
Stock to be issued
upon each conversion of this Note shall be determined by dividing
the Conversion
Amount (as defined below) by the applicable Conversion Price then
in effect on
the date specified in the notice of conversion, in the form
attached hereto as
Exhibit A (the "Notice of Conversion"), delivered to the Borrower
by the Holder
in accordance with Section 1.4 below; provided that the Notice of
Conversion is
submitted by facsimile (or by other means resulting in, or
reasonably expected
to result in, notice) to the Borrower before 6:00 p.m., New York,
New York time
on such conversion date (the "Conversion Date"). The term "Conversion Amount"
means, with respect to any conversion of this Note, the sum of (1)
the principal
amount of this Note to be converted in such conversion plus (2)
accrued and
unpaid interest, if any, on such principal amount at the interest
rates provided
in this Note to the Conversion Date plus (3) Default Interest, if
any, on the
amounts referred to in the immediately preceding clauses (1) and/or
(2) plus (4)
at the Holder's option, any amounts owed to the Holder pursuant to
Sections 1.3
and 1.4(g) hereof or pursuant to Section 2(c) of that certain
Registration
Rights Agreement, dated as of March 28, 2008, executed in
connection with the
initial issuance of this Note and the other Notes issued on the
Issue Date (the
"Registration Rights Agreement"). The term "Determination Date"
means the last
business day of each month after the Issue Date. For the avoidance of doubt,
upon conversion of any principal amount under this Note, any
accrued and unpaid
interest on such principal amount may be paid, in the sole
discretion of the
Borrower, either in cash or shares of the Borrower's common stock
(any cash
interest payments shall be delivered within the same time period as
the delivery
of shares of common stock upon conversion).
1.2
Conversion Price.
(a)
Calculation of Conversion Price The Conversion Price shall be the
lesser
of (i) the Variable Conversion Price (as defined herein) and (ii)
the Fixed
Conversion Price (as defined herein) (subject, in each case, to
equitable
adjustments for stock splits, stock dividends or rights offerings
by the
Borrower relating to the Borrower's securities or the securities of
any
subsidiary of the Borrower, combinations, recapitalization,
reclassifications,
extraordinary distributions and similar events). The "Variable Conversion
Price" shall mean the Applicable Percentage (as defined herein)
multiplied by
the Market Price (as defined herein). "Market Price" means the average
of the
lowest three (3) Trading Prices (as defined below) for the Common
Stock during
the twenty (20) Trading Day period ending one Trading Day prior to
the date the
Conversion Notice is sent by the Holder to the Borrower via
facsimile (the
"Conversion Date").
"Trading Price" means, for any security as of any date, the
intraday trading price on the Over-the-Counter Bulletin Board (the
"OTCBB") as
reported by a reliable reporting service ("Reporting Service")
mutually
acceptable to Borrower and Holder and hereafter designated by
Holders of a
majority in interest of the Notes and the Borrower or, if the OTCBB
is not the
principal trading market for such security, the intraday trading
price of such
security on the principal securities exchange or trading market
where such
security is listed or traded or, if no intraday trading price of
such security
is available in any of the foregoing manners, the average of the
intraday
trading prices of any market makers for such security that are
listed in the
"pink sheets" by the National Quotation Bureau, Inc. If the Trading Price
cannot be calculated for such security on such date in the manner
provided
above, the Trading Price shall be the fair market value as mutually
determined
by the Borrower and the holders of a majority in interest of the
Notes being
converted for which the calculation of the Trading Price is
required in order to
determine the Conversion Price of such Notes. "Trading Day" shall mean any
day
on which the Common Stock is traded for any period on the OTCBB, or
on the
principal securities exchange or other securities market on which
the Common
Stock is then being traded. "Applicable Percentage" shall mean
35.0%. "Fixed
Conversion Price" shall mean $.03.
(b)
Conversion Price During Major Announcements. Notwithstanding anything
contained in Section 1.2(a) to the contrary, in the event the
Borrower (i) makes
a public announcement that it intends to consolidate or merge with
any other
corporation (other than a merger in which the Borrower is the
surviving or
continuing corporation and its capital stock is unchanged) or sell
or transfer
all or substantially all of the assets of the Borrower or (ii) any
person, group
or entity (including the Borrower) publicly announces a tender
offer to purchase
50% or more of the Borrower's Common Stock (or any other takeover
scheme) (the
date of the announcement referred to in clause (i) or (ii) is
hereinafter
referred to as the
"Announcement Date"), then the Conversion Price shall,
effective upon the Announcement Date and continuing through the
Adjusted
Conversion Price Termination Date (as defined below), be equal to
the lower of
(x) the Conversion Price which would have been applicable for a
Conversion
occurring on the Announcement Date and (y) the Conversion Price
that would
otherwise be in effect. From and after the Adjusted Conversion
Price Termination
Date, the Conversion Price shall be determined as set forth in this
Section
1.2(a). For purposes
hereof, "Adjusted
Conversion Price Termination Date"
shall mean, with respect to any proposed transaction or tender
offer (or
takeover scheme) for which a public announcement as contemplated by
this Section
1.2(b) has been made, the date upon which the Borrower (in the case
of clause
(i) above) or the person, group or entity (in the case of clause
(ii) above)
consummates or publicly announces the termination or abandonment of
the proposed
transaction or tender offer (or takeover scheme) which caused this
Section
1.2(b) to become operative.
1.3
Authorized Shares.
Subject to the Stockholder Approval (as defined in
the Agreement), the Borrower covenants that during the period the
conversion
right exists, the Borrower will reserve from its authorized and
unissued Common
Stock a sufficient number of shares, free from preemptive rights,
to provide for
the issuance of Common Stock upon the full conversion of this Note
and the other
Notes issued pursuant to the Purchase Agreement. The Borrower is required at
all times to have authorized and reserved two times the number of
shares that is
actually issuable upon full conversion of the Notes (based on the
Conversion
Price of the Notes or the Exercise Price of the Warrants in effect
from time to
time) (the "Reserved Amount"). The Reserved Amount shall be
increased from time
to time in accordance with the Borrower's obligations pursuant to
Section 4(h)
of the Purchase Agreement. The Borrower represents that upon
issuance, such
shares will be duly and validly issued, fully paid and
non-assessable. In
addition, if the Borrower shall issue any securities or make any
change to its
capital structure which would change the number of shares of Common
Stock into
which the Notes shall be convertible at the then current Conversion
Price, the
Borrower shall at the same time make proper provision so that
thereafter there
shall be a sufficient number of shares of Common Stock authorized
and reserved,
free from preemptive rights, for conversion of the outstanding
Notes. The
Borrower (i) acknowledges that it has irrevocably instructed its
transfer agent
to issue certificates for the Common Stock issuable upon conversion
of this
Note, and (ii) agrees that its issuance of this Note shall
constitute full
authority to its officers and agents who are charged with the duty
of executing
stock certificates to execute and issue the necessary certificates
for shares of
Common Stock in accordance with the terms and conditions of this
Note.
If, at any time a Holder of this Note submits a Notice of
Conversion, and the
Borrower does not have sufficient authorized but unissued shares of
Common Stock
available to effect such conversion in accordance with the
provisions of this
Article I (a "Conversion Default"), subject to Section 4.8, the
Borrower shall
issue to the Holder all of the shares of Common Stock which are
then available
to effect such conversion. The portion of this Note which the
Holder included
in its Conversion Notice and which exceeds the amount which is then
convertible
into available shares of Common Stock (the "Excess Amount")
shall,
notwithstanding anything to the contrary contained herein, not be
convertible
into Common Stock in accordance with the terms hereof until (and at
the Holder's
option at any time after) the date additional shares of Common
Stock are
authorized by the Borrower to permit such conversion, at which time
the
Conversion Price in respect thereof shall be the lesser of (i) the
Conversion
Price on the Conversion Default Date (as defined below) and (ii)
the Conversion
Price on the Conversion Date thereafter elected by the Holder in
respect
thereof. In addition,
the Borrower shall pay to the Holder payments
("Conversion Default Payments") for a Conversion Default in the
amount of (x)
the sum of (1) the then outstanding principal amount of this Note
plus (2)
accrued and unpaid interest on the unpaid principal amount of this
Note through
the Authorization Date (as defined below) plus (3) Default
Interest, if any, on
the amounts referred to in clauses (1) and/or (2), multiplied by
(y) .24,
multiplied by (z) (N/365), where N = the number of days from the
day the holder
submits a Notice of Conversion giving rise to a Conversion Default
(the
"Conversion Default Date") to the date (the "Authorization Date")
that the
Borrower authorizes a sufficient number of shares of Common Stock
to effect
conversion of the full outstanding principal balance of this Note.
The Borrower
shall use its best efforts to authorize a sufficient number of
shares of Common
Stock as soon as practicable following the earlier of (i) such time
that the
Holder notifies the Borrower or that the Borrower otherwise becomes
aware that
there are or likely will be insufficient authorized and unissued
shares to allow
full conversion thereof and (ii) a Conversion Default. The Borrower shall send
notice to the Holder of the authorization of additional shares of
Common Stock,
the Authorization Date and the amount of Holder's accrued
Conversion Default
Payments. The accrued
Conversion Default Payments for each calendar month shall
be paid in cash or shall be convertible into Common Stock (at such
time as there
are sufficient authorized shares of Common Stock) at the applicable
Conversion
Price, at the Borrower's option, as follows:
(a)
In the event Borrower elects to make such payment in cash, cash
payment
shall be made to Holder by the fifth (5th) day of the month
following the month
in which it has accrued; and
(b)
In the event Borrower elects to make such payment in Common Stock,
the
Borrower shall convert such payment amount into Common Stock at the
Conversion
Price (as in effect at the time of conversion) at any time after
the fifth (5th)
day of the month following the month in which it has accrued in
accordance with
the terms of this Article I (so long as there is then a sufficient
number of
authorized shares of Common Stock).
The Borrower's election shall be made in writing to the Holder at
any time prior
to 6:00 p.m., New York, New York time, on the third day of the
month following
the month in which Conversion Default payments have accrued.
If no election is
made, the Borrower shall be deemed to have elected to pay in cash.
Nothing
herein shall limit the Holder's right to pursue actual damages (to
the extent in
excess of the Conversion Default Payments) for the Borrower's
failure to
maintain a sufficient number of authorized shares of Common Stock,
and each
holder shall have the right to pursue all remedies available at law
or in equity
(including degree of specific performance and/or injunctive
relief).
1.4
Method of Conversion.
(a)
Mechanics of Conversion. Subject to Section 1.1, this Note
may be
converted by the Holder in whole or in part at any time from time
to time after
the Issue Date, by (A) submitting to the Borrower a Notice of
Conversion (by
facsimile or other reasonable means of communication dispatched on
the
Conversion Date prior to 6:00 p.m., New York, New York time) and
(B) subject to
Section 1.4(b), surrendering this Note at the principal office of
the Borrower.
(b)
Surrender of Note Upon Conversion. Notwithstanding anything to
the
contrary set forth herein, upon conversion of this Note in
accordance with the
terms hereof, the Holder shall not be required to physically
surrender this Note
to the Borrower unless the entire unpaid principal amount of this
Note is so
converted. The Holder
and the Borrower shall maintain records showing the
principal amount so converted and the dates of such conversions or
shall use
such other method, reasonably satisfactory to the Holder and the
Borrower, so as
not to require physical surrender of this Note upon each such
conversion. In
the event of any dispute or discrepancy, such records of the
Borrower shall be
controlling and determinative in the absence of manifest error.
Notwithstanding
the foregoing, if any portion of this Note is converted as
aforesaid, the Holder
may not transfer this Note unless the Holder first physically
surrenders this
Note to the Borrower, whereupon the Borrower will forthwith issue
and deliver
upon the order of the Holder a new Note of like tenor, registered
as the Holder
(upon payment by the Holder of any applicable transfer taxes) may
request,
representing in the aggregate the remaining unpaid principal amount
of this
Note. The Holder and
any assignee, by acceptance of this Note, acknowledge and
agree that, by reason of the provisions of this paragraph,
following conversion
of a portion of this Note, the unpaid and unconverted principal
amount of this
Note represented by this Note may be less than the amount stated on
the face
hereof.
(c)
Payment of Taxes. The
Borrower shall not be required to pay any tax
which may be payable in respect of any transfer involved in the
issue and
delivery of shares of Common Stock or other securities or property
on conversion
of this Note in a name other than that of the Holder (or in street
name), and
the Borrower shall not be required to issue or deliver any such
shares or other
securities or property unless and until the person or persons
(other than the
Holder or the custodian in whose street name such shares are to be
held for the
Holder's account) requesting the issuance thereof shall have paid
to the
Borrower the amount of any such tax or shall have established to
the
satisfaction of the Borrower that such tax has been paid.
(d)
Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower
from the Holder of a facsimile transmission (or other reasonable
means of
communication) of a Notice of Conversion meeting the requirements
for conversion
as provided in this Section 1.4, the Borrower shall issue and
deliver or cause
to be issued and delivered to or upon the order of the Holder
certificates for
the Common Stock issuable upon such conversion within two (2)
business days
after such receipt (and, solely in the case of conversion of the
entire unpaid
principal amount hereof, surrender of this Note) (such second
business day being
hereinafter referred to as the "Deadline") in accordance with the
terms hereof
and the Purchase Agreement (including, without limitation, in
accordance with
the requirements of Section 2(g) of the Purchase Agreement that
certificates for
shares of Common Stock issued on or after the effective date of the
Registration
Statement upon conversion of this Note shall not bear any
restrictive legend).
(e)
Obligation of Borrower to Deliver Common Stock. Upon receipt by the
Borrower of a Notice of Conversion, the Holder shall be deemed to
be the holder
of record of the Common Stock issuable upon such conversion, the
outstanding
principal amount and the amount of accrued and unpaid interest on
this Note
shall be reduced to reflect such conversion, and, unless the
Borrower defaults
on its obligations under this Article I, all rights with respect to
the portion
of this Note being so converted shall forthwith terminate except
the right to
receive the Common Stock or other securities, cash or other assets,
as herein
provided, on such conversion. If the Holder shall have given a
Notice of
Conversion as provided herein, the Borrower's obligation to issue
and deliver
the certificates for Common Stock shall be absolute and
unconditional,
irrespective of the absence of any action by the Holder to enforce
the same, any
waiver or consent with respect to any provision thereof, the
recovery of any
judgment against any person or any action to enforce the same, any
failure or
delay in the enforcement of any other obligation of the Borrower to
the holder
of record, or any setoff, counterclaim, recoupment, limitation or
termination,
or any breach or alleged breach by the Holder of any obligation to
the Borrower,
and irrespective of any other circumstance which might otherwise
limit such
obligation of the Borrower to the Holder in connection with such
conversion.
The Conversion Date specified in the Notice of Conversion shall be
the
Conversion Date so long as the Notice of Conversion is received by
the Borrower
before 6:00 p.m., New York, New York time, on such date.
(f)
Delivery of Common Stock by Electronic Transfer. In lieu of delivering
physical certificates representing the Common Stock issuable upon
conversion,
provided the Borrower's transfer agent is participating in the
Depository Trust
Company ("DTC") Fast Automated Securities Transfer ("FAST")
program, upon
request of the Holder and its compliance with the provisions
contained in
Section 1.1 and in this Section 1.4, the Borrower shall use its
best efforts to
cause its transfer agent to electronically transmit the Common
Stock issuable
upon conversion to the Holder by crediting the account of Holder's
Prime Broker
with DTC through its Deposit Withdrawal Agent Commission ("DWAC")
system.
(g)
Failure to Deliver Common Stock Prior to Deadline. Without in any way
limiting the Holder's right to pursue other remedies, including
actual damages
and/or equitable relief, the parties agree that if delivery of the
Common Stock
issuable upon conversion of this Note is more than three (3) days
after the
Deadline (other than a failure due to the circumstances described
in Section 1.3
above, which failure shall be governed by such Section) the
Borrower shall pay
to the Holder $2,000 per day in cash, for each day beyond the
Deadline that the
Borrower fails to deliver such Common Stock. Such cash amount shall be paid
to
Holder by the fifth day of the month following the month in which
it has accrued
or, at the option of the Holder (by written notice to the Borrower
by the first
day of the month following the month in which it has accrued),
shall be added to
the principal amount of this Note, in which event interest shall
accrue thereon
in accordance with the terms of this Note and such additional
principal amount
shall be convertible into Common Stock in accordance with the terms
of this
Note.
1.5
Concerning the Shares.
The shares of Common Stock issuable upon
conversion of this Note may not be sold or transferred unless
(i) such shares
are sold pursuant to an effective registration statement under the
Act or (ii)
the Borrower or its transfer agent shall have been furnished with
an opinion of
counsel (which opinion shall be in form, substance and scope
customary for
opinions of counsel in comparable transactions) to the effect that
the shares to
be sold or transferred may be sold or transferred pursuant to an
exemption from
such registration or (iii) such shares are sold or transferred
pursuant to Rule
144 under the Act (or a successor rule) ("Rule 144") or (iv) such
shares are
transferred to an "affiliate" (as defined in Rule 144) of the
Borrower who
agrees to sell or otherwise transfer the shares only in accordance
with this
Section 1.5 and who is an Accredited Investor (as defined in the
Purchase
Agreement). Except as
otherwise provided in the Purchase Agreement (and subject
to the removal provisions set forth below), until such time as the
shares of
Common Stock issuable upon conversion of this Note have been
registered under
the Act as contemplated by the Registration Rights Agreement or
otherwise may be
sold pursuant to Rule 144 without any restriction as to the number
of securities
as of a particular date that can then be immediately sold, each
certificate for
shares of Common Stock issuable upon conversion of this Note that
has not been
so included in an effective registration statement or that has not
been sold
pursuant to an effective registration statement or an exemption
that permits
removal of the legend, shall bear a legend substantially in the
following form,
as appropriate:
"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES MAY NOT BE
SOLD,
TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT
FOR THE SECURITIES UNDER SAID ACT, OR AN OPINION OF COUNSEL IN
FORM, SUBSTANCE
AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE
TRANSACTIONS, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT UNLESS SOLD PURSUANT TO
RULE 144 OR
REGULATION S UNDER SAID ACT."
The legend set forth above shall be removed and the Borrower shall
issue to the
Holder a new certificate therefor free of any transfer legend if
(i) the
Borrower or its transfer agent shall have received an opinion of
counsel, in
form, substance and scope customary for opinions of counsel in
comparable
transactions, to the effect that a public sale or transfer of such
Common Stock
may be made without registration under the Act and the shares are
so sold or
transferred, (ii) such Holder provides the Borrower or its transfer
agent with
reasonable assurances that the Common Stock issuable upon
conversion of this
Note (to the extent such securities are deemed to have been
acquired on the same
date) can be sold pursuant to Rule 144 or (iii) in the case of the
Common Stock
issuable upon conversion of this Note, such security is registered
for sale by
the Holder under an effective registration statement filed under
the Act or
otherwise may be sold pursuant to Rule 144 without any restriction
as to the
number of securities as of a particular date that can then be
immediately sold.
Nothing in this Note shall (i) limit the Borrower's obligation
under the
Registration R