Document:

Exhibit
10.36-2

    

    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.

    CONVERTIBLE
REVOLVING PROMISSORY NOTE

    

    
      	
              $1,000,000

            	
              June
      4, 2009

            

    

    

    Magnitude Information Systems,
Inc., a Delaware corporation (the “Company”), for value received hereby promises
to pay to Discover Advisory Company (the “Lender”), the principal sum of ONE
MILLION AND NO/100 DOLLARS ($1,000,000.00) or so much thereof as may be from
time to time owed by the Company to the Lender, to be computed on the
outstanding principal balance 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 Company hereby authorizes the Lender to endorse on
Exhibit A annexed hereto and made a part hereof, all advances made to the
Company under this Note and which endorsements shall, in the absence of manifest
error, be conclusive as to the outstanding principal amount of all advances made
under this Note, provided, however, that the failure to make such endorsement
notation with respect to any advances or payments shall not otherwise affect the
obligations of the Company under this Note. The indebtedness reflected in this
Note includes the outstanding principal balances and accrued interest under four
(4) promissory notes previously made by the Company and delivered to the Lender,
all dated March 31, 2009, and reflecting loans made on (1) December 23, 2008 in
the original principal amount of $100,000, (2) January 7, 2009 in the original
principal amount of $150,000, (3) January 27, 2009 in the original principal
amount of $200,000, and (4) February 20, 2009 in the original principal amount
of $150,000 (the “Old Notes”); This Note, in addition to its provisions that
include other Lender loan amounts to and other indebtedness of the Company, is
intended to replace the Old Notes. This Note is secured by a certain Stock
Pledge Agreement of even date herewith (the “Stock Pledge Agreement”), all of
whose terms and provisions are hereby incorporated in this Note by
reference.

    

    

    Subject to the conversion limitations
set forth herein, the Holder may, in its sole and absolute discretion, convert
at any time part or all of the outstanding principal balance and accrued
interest under this Note into restricted shares of the Common Stock of the
Company at a conversion rate of one (1) share of common stock for $0.01,
provided, however, that
in no event shall the Lender be entitled to convert any portion of this Note in
excess of that portion of this Note upon conversion of which the sum of
(A) the number of shares of Common Stock beneficially owned by the Lender and
its affiliates and (B) the number of shares of Common Stock issuable upon the
conversion of the portion of this Note to which this provision is being applied,
would result in beneficial ownership by the Lender and its affiliates of more
than 9.9% of the outstanding shares of Common Stock. For purposes of this
provision, 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.

    

    Events of
Default

     

    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; or

            

    

     

    
      	
               
      

            	
              (d)

            	
              default
      under any material term or provision of the Stock Pledge
      Agreement.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.

            	
              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 has previously granted to the Lender a first security interest 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 “Kiwibox
      Shares”)  The Company has delivered possession of the
      Certificate representing the Kiwibox Shares to the Lender; the Company
      hereby grants and declares that the first security interest in the Shares
      granted to the Lender under the terms of the Old Notes shall continue
      without interruption and is reconfirmed under the terms of this Note and
      pursuant to the Stock Pledge
Agreement.

            

    

     

    
      
        	
              	
                4. 

              	
                Governing
      Law.  This Note shall be governed by and construed in
      accordance with the laws of the State of New York.  Venue for
      any action pursuant hereto shall be in appropriate state or federal court
      in New York.

              

      

    

    

    
      
        
          
            
              	 
      	
                      MAGNITUDE
      INFORMATION SYSTEMS, INC.

                    
	 
      	 
      	 
      	 
	 
      	
                      BY:

                    	
                       

                    	 
	 
      	 
      	
                      Rudolf
      Hauke (President/CEO)

                    	 
	 
      	 
      	 
      	 

            

          

        

      

    

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    

    

    

    

    

    EXHIBIT
A

    

    

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          DATE

                                        	
                                          AMOUNT

                                        	
                                          UNPAID
      PRINCIPAL BALANCE

                                        	
                                          SIGNATURE

                                        
	
                                          OF
      ADVANCE

                                        	
                                          OF
      ADVANCE 

                                        	 
      	
                                          OF
      LENDER

                                        
	 
      	 
      	 
      	 
      
	
                                          December
      23, 2008

                                        	
                                          $100,000

                                        	
                                          $100,000

                                        	 
      
	
                                          January
      7, 2009

                                        	
                                          $150,000

                                        	
                                          $150,000

                                        	 
      
	
                                          January
      27, 2009

                                        	
                                          $200,000

                                        	
                                          $200,000

                                        	 
      
	
                                          February
      20, 2009

                                        	
                                          $150,000

                                        	
                                          $150,000

                                        	 
      
	
                                          April
      16, 2009

                                        	
                                          $50,000

                                        	
                                          $50,000

                                        	 
      
	
                                          May
      5, 2009

                                        	
                                          $60,000

                                        	
                                          $60,000

                                        	 
      
	
                                          May
      12, 2009

                                        	
                                          $60,000

                                        	
                                          $60,000

                                        	 
      
	
                                          June
      4, 2009

                                        	
                                          $80,000

                                        	
                                          $80’000Exhibit
10.37

    

    STOCK PLEDGE
AGREEMENT

    

                 
THIS STOCK PLEDGE AGREEMENT (“Agreement”) is made as of this 4th day of June,
2009, by and among MAGNITUDE INFORMATION SYSTEMS, INC. a Delaware corporation
(“Magnitude”) and Discover Advisory Company, a Bahamian corporation
(“Discover”).

    

    RECITALS:

    

                 
WHEREAS, since December, 2008, Discover has provided Magnitude with emergency
bridge loan funding on a continuing basis to sustain its operations and pay for
the ongoing operations of its wholly owned subsidiary, Kiwibox Media, Inc., also
a Delaware corporation (“Kiwibox”) in the amounts of $100,000 on December 23,
2008; $150,000 on January 7, 2009; $200,000 on January 27, 2009, and; $150,000
on February 20, 2009; $50,000 on April 16, 2009, $60,000 on May 5, 2009; $60,000
on May 12, 2009, $80,000 on June 4, 2009 and continuing through the current
period;

    

                 
WHEREAS, Magnitude and Discover negotiated the terms of the bridge loans and
Magnitude executed and delivered four (4) promissory notes to document the
bridge loans from Discover (the “Old Notes”) and now has prepared, negotiated
and delivered a new master note, dated the date hereof, providing for a lending
facility of up to $1,000,000 (the “Master Note”);

    

      
           WHEREAS,
Magnitude secured its promise to pay the Old Notes by giving Discover a security
interest in its wholly owned subsidiary, Kiwibox Media, Inc. (“Kiwibox”) through
a Magnitude pledge of Kiwibox Certificate No. 6, representing 160 capital
shares, no par value, and representing all of the issued and outstanding shares
of Kiwibox (the “Kiwibox Shares”), and;

    

                 
WHEREAS, Magnitude shall deliver the fully executed Master Note to Discover on
the date hereof, shall cancel the Old Notes and deliver this Agreement to
memorialize the security provisions in the Master Note, pledging the Kiwibox
Shares as security for the Magnitude indebtedness covered in the Master
Note.

    

                 
In consideration of the foregoing, and the covenants and promises contained
herein, the parties hereto agree as follows:

    

    1.           Pledge. 
Magnitude hereby pledges and grants to Discover a security interest in the
Kiwibox Shares. The security interest in the Kiwibox Shares shall be released
upon full repayment of the principal and accrued interest of the funds loaned to
Magnitude through the Master Note or if Discover exercises its option to convert
the total outstanding principal and accrued interest of the Notes into Magnitude
common shares, and such security interest shall continue until (i) Magnitude’s
obligations under the Master Note is paid or converted in full, at which time
the pledge of the Kiwibox Shares shall automatically terminate, or (ii) until an
occurrence of an Event of Default hereunder, and until such time as Discover has
exercised its rights with respect to the Kiwibox Shares as provided in Section 6
hereof.

    

    2.           Security.  Said
pledge and security interest is made in order to secure the payment of principal
and accrued interest due to Discover under the Master Note.

    

    3.           Delivery of Certificate and
Stock Power.  Upon execution of this Agreement, Discover thereby
confirms its receipt and possession of the certificate, representing all
outstanding Kiwibox Shares. Upon execution and delivery of this Agreement,
Magnitude shall forthwith execute and deliver a stock power in favor of Discover
for such stock certificate, signed by Magnitude, but not dated.

    

    4.           Dividends; Voting
Rights.  During the term of the pledge, and so long as Magnitude is
not in default pursuant to Section 6 hereof, Magnitude shall retain all rights
associated with the Kiwibox Shares.

    

    5.           Redelivery. 
Upon payment in full of Magnitude’s obligations under the Master Note, Discover
shall deliver the Kiwibox Shares to Magnitude, and this Agreement shall
terminate.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    6.           Default.  The
happening of any one or more of the following events or conditions shall
constitute an “Event of Default” hereunder: (i) if Magnitude shall fail to pay
the principal and accrued interest under the Master Note within ten (10)
business days’ of Magnitude’s receipt of a written demand for payment from
Discover; or (ii) the breach by Magnitude of any of its obligations pursuant to
this Agreement. Upon occurrence of an Event of Default, Discover may, at any
time after such Event of Default, complete the stock power delivered herewith
and deliver the same, along with the certificate representing the Kiwibox
Shares, to Magnitude, transferring the Kiwibox Shares on the books of Magnitude
pursuant to the stock power and for the issuance of a new certificate in the
name of Discover, and Discover shall be the absolute owner of the Kiwibox
Shares.

    

    7.           Other Actions. 
Each party agrees that it will execute and deliver all such other documents and
will take all such other actions as the other party may reasonably request from
time to time in order to fully effectuate the provisions and purposes
hereof.

    

    8.           Notices.  All
notices, requests, demands, and other communications hereunder shall be in
writing and shall be deemed effective when delivered personally or, if delivered
by mail, twenty-four (24) hours after having been deposited in the U.S. mail,
postage prepaid, registered or certified, and addressed to the parties as
follows (or to such other address as a party shall have specified in a notice
given in accordance with this paragraph):

    

    If to Magnitude to:

    

    Magnitude Information Systems,
Inc.

    330 West
38th
Street

    New York,
New York

    Attn: Joerg H. Klaube, Chief Financial
Officer

    
 

    If to Discover to:

    

    Discover
Advisory Company

    50
Shirley Street / P.O. Box N-341

    Nassau

    Bahamas

    Attn:
Karin Buehler, Secretary

     

    with copy
by email to: discoveradvisory@gmx.net

    

    9.           Successor.  This
Agreement shall be binding upon and inure to the benefit of the parties and
their respective heirs, executors, administrators, successors and
assigns.

    

    10.         Governing Law. 
This Agreement shall be governed by, and construed and enforced in accordance
with, the laws of the State of New York.

    

    The
parties have hereunto set their hands as of the day and year first above
written.

    

    

    
      
        
          
            
              
                
                  
                    
                      	 
      	
                              Pledgor:

                            	 
	 
      	 
      	 
      	 
	 
      	
                              Magnitude
      Information Systems, Inc.

                            
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
                              By:

                            	 
      	 
	 
      	 
      	
                              Rudolf
      Hauke, President

                            	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
                              Pledgee:

                            	 
	 
      	 
      	 
      	 
	 
      	
                              Discover
      Advisory Company

                            	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	
                              By:

                            	
                               

                            	 
	 
      	 
      	
                              Karin
      Buehler, Secretary

                            	 
	 
      	 
      	 
      	 

                    

                  

                

              

            

          

        

      

    

    

    
      
         

      

      
        2

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