Contract
Exhibit
10.36-1
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.
|
$__________
|
_____________
2009
|
Magnitude Information Systems, Inc., a
Delaware corporation (the “Company”), for value
received hereby promises to pay to Discover Advisory Company (the “Holder”), the
principal sum of ___________________________ ($____________), accruing interest
at the rate of ten (10%) percent, per annum, due and payable on Demand (the
“Maturity Date”), in such coin or currency of the United States of
America.
The Holder at his discretion
can request at any time that principal and accrued interest is paid by the
Company in lieu of cash in shares (one common stock of Magnitude Information
Systems, Inc. for each one US Cent owed by the Company to the
Holder).
|
1.
|
Events of
Default
|
|
2.
|
If
any of the events specified in this Section 1 shall occur (“Events of
Default”), the Holder of this Note may, so long as such condition
has not been cured, declare the entire outstanding principal balance of
this Note immediately due and
payable:
|
|
(a)
|
default
in the due and punctual payment of the principal and accrued
interest due under this Note on the Maturity Date;
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 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.
|
|
3.
|
Waiver,
Etc.
|
|
The
Company hereby waives any requirement of notice, presentment or demand for
payment; in the event the Holder is required to institute any proceedings
to collect any sums due under this Note, the Company agrees to pay all of
Holder’s reasonable attorney’s fees and expenses incurred for such
purposes.
|
|
3.
|
Security.
|
|
The
Company hereby grants a first security interest to the Holder in the One
Hundred Sixty outstanding common shares of Kiwibox Media, Inc.,
represented by Certificate No. 6 and representing all of the issued and
outstanding securities of Kiwibox Media, Inc. The Company shall
deliver possession of this Certificate to the Holder for safe keeping
pursuant to the terms of this
Note.
|
