PROMISSORY NOTE, SECURITY AGREEMENT AND WARRANT AGREEMENTNote, Security Agreement • October 29th, 2008 • Atsi Communications Inc/De • Telephone communications (no radiotelephone) • Texas
FOR VALUE RECEIVED, the undersigned ATSI COMMUNICATIONS, INC., a Nevada corporation (“Company), hereby promises to pay to (“Lender”), at such place as Lender may specify, in lawful money of the United States of America, the principal amount of $850,000 (the “Principal Amount”) on the earlier of: (i) a Mandatory Payment Event (as hereinafter defined), or (ii) According to the attached Payback Schedule (the “Maturity Date”), plus interest on the Principal Amount outstanding from time to time hereunder at a rate equal to the lesser of (i) the maximum lawful rate or (ii) ten percent (10%) per annum. Interest shall be calculated in arrears through the last day of each month and shall be due and payable on the first day of the each month, as more fully set forth below in Section 1.
