EXHIBIT 10.12
CONVERTIBLE REVOLVING DEMAND NOTE
$1,000,000.00 Date: December 1, 1999
FOR VALUE RECEIVED, the undersigned, AVID SPORTSWEAR & GOLF CORP., a
Nevada corporation (the "Borrower"), hereby promises to pay on DEMAND to the
order of LIDO CAPITAL CORPORATION, a Nevada corporation (the "Lender"), at such
place or places as it may designate, in lawful money of the United States of
America, the maximum principal sum of One Million Dollars (US $1,000,000.00), or
such lesser amount as shall equal the aggregate outstanding principal sum of all
unpaid advances (each, an "Advance") from time to time made by the Lender,
together with accrued interest on the unpaid principal balance hereof from the
date of an Advance.
Interest shall accrue as of the date of this Note and shall be
calculated on the entire principal sum outstanding from time to time at a rate
per annum equal to ten percent (10%). The Borrower shall pay interest quarterly
in arrears. The first payment shall be due on April 1, 2000 and each successive
payment shall be due on the 1st day of each successive quarter thereafter.
Interest on any overdue principal and, to the extent permitted by applicable
law, any overdue interest, shall accrue from the due date thereof (which date
shall be at least ten (10) business days after the date the Lender makes DEMAND)
until paid in full at a rate equal to the maximum rate allowable by law.
The holder of this Note is authorized to record the date and amount of
each Advance and each payment of principal with respect thereto on the Schedule
annexed hereto and made a part hereof as Exhibit "A", or on a continuation
thereof which shall be attached hereto and made a part hereof which recordation,
absent manifest error, shall constitute prima facie evidence of the accuracy of
the information recorded.
All payments shall be applied first to accrued interest and then to
principal. If any payment is not made in full when due, the entire unpaid
principal and accrued interest and all other liabilities of Borrower to the
holder hereof shall, at the option of the holder hereof, become immediately due
and payable without notice of any kind, presentment, demand or protest, all of
which are hereby expressly waived. Failure to exercise this option shall not
constitute a waiver of the subsequent right to exercise this option by the
holder hereof.
Any holder of this Note shall have the right at any time prior to the
payment in full of the principal balance of this Note to convert all (but not
less than all) amounts due under this Note into fully paid and non-assessable
shares of the Borrower's common stock, $0.001 par value per share (the "Common
Stock"). The number of shares of Common Stock (the "Conversion Shares") into
which this Note may be converted shall be determined by dividing (a) the sum of
all amounts due under this Note (including, without limitation, all principal
and accrued but unpaid interest) up to and including the date of conversion by
(b) the product of the closing price of the Common Stock on the Conversion Date
(as defined below), as listed on a national securities exchange, The Nasdaq
National Market System, The Nasdaq SmallCap Market or the last reported bid
price published in the "pink sheets" or displayed on the National Association of
Securities Dealers, Inc. Over-the-Counter Bulletin Board, multiplied by eighty
percent (80%). No fractional shares of Common Stock or scrip representing
fractional shares shall be issued upon conversion of this Note. Instead of any
fractional shares of Common Stock which would otherwise be issuable upon
conversion of the Note, the Borrower shall pay to the holder a cash adjustment
in respect of such fraction.
The holder shall give written notice to the Borrower of his election to exercise
his conversion right (the "Notice") at any time any amount hereunder is
outstanding. The date when the Notice is received by the Borrower shall be the
"Conversion Date." As promptly as practicable after the Conversion Date, the
Borrower shall issue and deliver to the holder a certificate or certificates for
the Conversion Shares. Such conversion shall be deemed to have been effective on
the Conversion Date and holder shall be deemed to have become the holder of
record of the Conversion Shares at such time.
If any amount hereunder is payable on a day which is a Saturday,
Sunday, legal holiday or a day on which banking institutions in Miami, Florida
are authorized or required by law or by local proclamation to close, the due
date thereof shall be extended to the next succeeding business day and interest
thereon shall accrue during the period of such extension at the rate provided
herein.
The Borrower waives presentment, demand for payment, notice of
dishonor, protest and notice of protest of this Note and agrees to pay all costs
of collection when incurred (including reasonable attorneys' fees). This Note
shall be governed by and construed in accordance with the laws of the State of
Florida.
AVID SPORTSWEAR & GOLF CORP.
By:
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Name:
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Title:
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EXHIBIT "A"
REVOLVING LOANS AND PAYMENTS OF REVOLVING
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LOANS (Schedule to Revolving Demand Note dated December 1, 1999)
UNPAID PRINCIPAL
AMOUNT OF REVOLVING AMOUNT OF REVOLVING BALANCE OF REVOLVING
DATE LOANS MADE LOANS PAID LOANS NOTATION MADE BY
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