Back to top

ORIGINAL ISSUE DISCOUNT CONVERTIBLE NOTE

Convertible Promissory Note

ORIGINAL ISSUE DISCOUNT CONVERTIBLE NOTE | Document Parties: VISUAL MANAGEMENT SYSTEMS INC | Visual Management Systems, Inc You are currently viewing:
This Convertible Promissory Note involves

VISUAL MANAGEMENT SYSTEMS INC | Visual Management Systems, Inc

. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here.
Title: ORIGINAL ISSUE DISCOUNT CONVERTIBLE NOTE
Governing Law: Florida     Date: 8/19/2009

ORIGINAL ISSUE DISCOUNT CONVERTIBLE NOTE, Parties: visual management systems inc , visual management systems  inc
50 of the Top 250 law firms use our Products every day

Exhibit 4.12

THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED

 

 

Principal Amount: $

Issue Date: July __, 2009

ORIGINAL ISSUE DISCOUNT CONVERTIBLE NOTE

FOR VALUE RECEIVED, Visual Management Systems, Inc., a Nevada corporation (hereinafter called “Borrower”), hereby promises to pay to ________________________________________________________, the principal amount of $__________, with 12% annual interest thereon, at such place as Holder shall direct in writing on January __, 2010 (the “Maturity Date”).

          The following terms shall apply to this Note:

ARTICLE I.

GENERAL PROVISIONS

          1.1.      Maturity . Principal and accrued interest under this Note shall become due and payable on the Maturity Date. Borrower may prepay this note upon not less than thirty (30) days prior written notice to the Holder; provided, however, that Holder shall have the right to exercise the conversion rights set forth in Article II during such notice period.

          1.2.      Conversion Privileges . The conversion rights set forth in Article II shall remain in full force and effect immediately from the date hereof and until the Note is paid in full regardless of the occurrence of an Event of Default. The Note shall be payable in full on the Maturity Date, unless previously converted into Common Stock in accordance with Article II hereof; provided, that if an Event of Default has occurred that has not been timely cured, the Holder may extend the Maturity Date an amount of time equal to the duration of the Event of Default.

          1.3.      Interest Rate . Simple interest payable on this Note shall accrue at the annual rate of twelve percent (12%) and be payable at the request of the Holder upon or after each conversion of principal pursuant to Article II, and on the Maturity Date, accelerated or otherwise, when the principal and remaining accrued but unpaid interest shall be due and payable, or sooner as described below.

ARTICLE II.

CONVERSION RIGHTS

          The Holder shall have the right to convert the principal due under this Note into Shares of the Borrower’s Common Stock (“Common Stock”) as set forth below.


          2.1.      Conversion into the Borrower’s Common Stock .

                    (a)     The Holder shall have the right from and after the issuance of this Note and then at any time until this Note is fully paid, to convert any outstanding and unpaid principal portion of this Note, at the election of the Holder (the date of giving of such notice of conversion being a “Conversion Date”) into fully paid and nonassessable shares of Common Stock as such stock exists on the date of issuance of this Note, or any shares of capital stock of Borrower into which such Common Stock shall hereafter be changed or reclassified, at the conversion price as defined in Section 2.1(b) hereof (the “Conversion Price”), determined as provided herein. Upon delivery to the Borrower of a completed Notice of Conversion, a form of which is annexed hereto, Borrower shall issue and deliver to the Holder within three (3) business days after the Conversion Date (such third day being the “Delivery Date”) that number of shares of Common Stock for the portion of the Note converted in accordance with the foregoing. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing that portion of the principal of the Note to be converted, by the Conversion Price, with all converted fractional shares issuable rounded up to whole shares.

                    (b)     Subject to adjustment as provided in Section 2.1(c) hereof, the Conversion Price per share shall be $0.01 per share.

                    (c)     The Conversion Price and number and kind of shares or other securities to be issued upon conversion determined pursuant to Section 2.1(a), shall be subject to adjustment from time to time upon the happening of certain events while this conversion right remains outstanding, as follows:

                    A.      Merger, Sale of Assets, etc . If the Borrower at any time shall consolidate with or merge into or sell or convey all or substantially all its assets to any other corporation, this Note, as to the unpaid principal portion thereof, shall thereafter be deemed to evidence the right to acquire upon conversion such number and kind of shares or other securities and property as would have been issuable or distributable on account of such consolidation, merger, sale or conveyance, upon or with respect to the securities subject to the conversion or purchase right immediately prior to such consolidation, merger, sale or conveyance. The foregoing provision shall similarly apply to successive transactions of a similar nature by any such successor or purchaser. Without limiting the generality of the foregoing, the anti-dilution provisions of this Section shall apply to such securities of such successor or purchaser after any such consolidation, merger, sale or conveyance.

                    B.      Reclassification, etc . If the Borrower at any time shall, by reclassification or otherwise, change the Common Stock into the same or a different number of securities of any class or classes that may be issued or outstanding, this Note, as to the unpaid principal portion thereof, shall thereafter be deemed to evidence the right to acquire upon conversion an adjusted number of such securities and kind of securities as would have been issuable as the result of such change with respect to the Common Stock immediately prior to such reclassification or other change.

                    C.      Stock Splits, Combinations and Dividends . If the shares of Common Stock are subdivided or combined into a greater or smaller number of shares of Common Stock, or if a dividend is paid on the Common Stock in shares of Common Stock, the Conversion Price shall be proportionately reduced in case of subdivision of shares or stock dividend or proportionately increased in the case of combination of shares, in each such case by the ratio which the total num


 
SITE SEARCH

AGREEMENTS / CONTRACTS

Document Title:

Entire Document: (optional)

Governing Law:(optional)


Try our advanced search >>
 

CLAUSES

Search Contract Clauses >>

Browse Contract Clause Library>>

Get Email Updates
Email:
This is only a partial view of this document. We have millions of legal documents and clauses drafted by top law firms. learn more search for free browse for free learn more