Document:

ex4_1

    

    THIS
      DEBENTURE,
      AND THE
      SECURITIES INTO WHICH IT IS CONVERTIBLE (COLLECTIVELY, THE “SECURITIES”), HAVE
      NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION
      OR
      THE SECURITIES COMMISSION OF ANY STATE. THE SECURITIES ARE BEING OFFERED
      PURSUANT TO A SAFE HARBOR FROM REGISTRATION UNDER REGULATION D PROMULGATED
      UNDER
      THE SECURITES ACT OF 1933, AS AMENDED (THE “ACT”). THE SECURITIES ARE
“RESTRICTED” AND MAY NOT BE OFFERED OR SOLD UNLESS THE SECURITIES ARE REGISTERED
      UNDER THE ACT, PURSUANT TO REGULATION D OR PURSUANT TO AVAILABLE EXEMPTIONS
      FROM
      THE REGISTRATION REQUIREMENTS OF THE ACT AND THE COMPANY WILL BE PROVIDED WITH
      OPINION OF COUNSEL OR OTHER SUCH INFORMATION AS IT MAY REASONABLY REQUIRE TO
      COMFIRM THAT SUCH EXEMPTIONS ARE AVAILABLE. FURTHER HEDGING TRANSACTIONS
      INVOLVING THE SECURITIES MAY NOT BE MADE EXCEPT IN COMPLIANCE WITH THE
      ACT.

    

    

    UNITED
      AMERICAN CORPORATION

    

    

    12%
      Convertible Debenture

    

    

    Due:
      October 31, 2006

    

    

    $100,000

    

    This
      Debenture (the “Debenture”) is issued by UNITED AMERICAN CORPORATION, a Florida
      corporation (the “Company”), to Strathmere Associates International Limited
      (together with its permitted successors and assigns, the “Holder”) pursuant to
      exemptions from registration under the Securities Act of 1933, as
      amended.

    

    ARTICLE
      I.

    

    Section
      1.01 Principal and Interest. For value received, on October 18, 2004 (the
“Closing Date”), the Company hereby promises to pay to the order of the Holder
      on October 31, 2006 in lawful money of the United States of America and in
      immediately available funds the principal sum of one hundred thousand Dollars
      ($100,000), together with interest on the unpaid principal of this Debenture
      at
      the rate of twelve percent (12%) per year (computed on the basis of a 365-day
      year and the actual days elapsed) from the date of this Debenture until paid.
      At
      the Holder’s option, the entire principal amount and all accrued interest shall
      be either (a) paid to the Holder on October 31, 2006 or (b) converted in
      accordance with Section 1.02 herein.

    

    Section
      1.02 Optional Conversion. The Holder is entitled, at its option, to convert
      all
      or any part of the principal amount of the Debenture into shares (the
“Conversion Shares”) of the Company’s common stock, par value $0.001 per share
      (“Common Stock”), at the price per share (the “Conversion Price”) equal to
      twenty cents per share ($0.20 per share). To convert this Debenture, the Holder
      hereof shall deliver written notice thereof, substantially in the form of
      Exhibit “A” to this Debenture, with appropriate insertions (the “Conversion
      Notice”), to the Company at its address as set forth 

    

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    herein.
      The date upon which the conversion shall be effective (the “Conversion Date”)
      shall be deemed to be the date set forth in the Conversion Notice.

     

            Section
      1.03 Reservation of Common Stock. The Company shall reserve and keep available
      out of its authorized but unissued shares of Common Stock, solely for the
      purpose of effecting the conversion of this Debenture, such number of shares
      of
      Common Stock as shall from time to time be sufficient to effect such conversion,
      based upon the Conversion Price. If at any time the Company does not have a
      sufficient number of Conversion Shares authorized and available, then the
      Company shall call and hold a special meeting of its stockholders within forty
      five (45) days of that time for the sole purpose of increasing the number of
      authorized shares of Common Stock.

    

    Sections
      1.04 Right of Redemption. The Company and the Holder may mutually agree redeem
      a
      portion, or all, of the outstanding Debenture. The redemption price shall be
      one
      hundred ten percent (110%) of the amount redeemed plus accrued interest. Should
      the Company obtain aggregate financing (through any combination of debt or
      equity) of $2,000,000 or more, the Holder will have the right to redeem a
      portion or all of the outstanding debenture with 5 business days advance written
      notice. The redemption price shall be one hundred and five percent (105%) of
      the
      amount redeemed plus accrued interest.

    

    Section
      1.05 Registration Rights. The Company is not obligated to register the sale
      or
      resale of the Conversion Shares under the Securities Act of 1933, as
      amended.

    

    Section
      1.06 Interest Payments. The interest so payable will be paid every six months,
      redemption or conversion to the person or company in whose name this Debenture
      is registered. At the time such interest is payable, the Company will pay the
      interest in cash (via wire transfer or certified funds).

    

    Section
      1.07 Paying Agent and Registrar. Initially, the Company will act as paying
      agent
      and registrar. The Company may change any paying agent, registrar, or
      Company-registrar by giving the Holder not less than ten (10) business days’
      written notice of its election to do so, specifying the name, address, telephone
      number and facsimile number of the paying agent or registrar. The Company may
      act in any such capacity.

    

    Section
      1.08 Security of the Debenture. This Debenture is secured against the assets
      of
      the company.

    

    ARTICLE
      II.

    

    Section
      2.01 Amendments and Waiver of Default. The Debenture may not be amended.
      Notwithstanding the above, without the consent of the Holder, the Debenture
      may
      be amended to cure any ambiguity, defect or inconsistency, or to provide for
      assumption of the Company obligations to the Holder.

    

    

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    ARTICLE
      III.

    

    Section
      3.01 Events of Default. An Event of Default is defined as follows: (a) failure
      by the Company to pay amounts due hereunder within fifteen (15) days of the
      date
      of maturity of this Debenture; (b) failure by the Company’s transfer agent to
      issue Common Stock to the Holder within five (5) business days of the Company’s
      receipt of the attached Notice of Conversion from Holder; and (c) events of
      bankruptcy or insolvency. Upon the occurrence of an Event of Default, the Holder
      may, in its sole discretion, accelerate full repayment of this Debenture and
      accrued interest thereon or may, notwithstanding any limitations contained
      in
      this Debenture, convert all Debentures outstanding and accrued interest thereon
      into shares of Common Stock pursuant to Section 1.02 herein.

    

    ARTICLE
      IV.

    

    Section
      4.01 Rights and Terms of Conversion. This Debenture, in whole or in part, may
      be
      converted at any time following the Closing Date, into shares of Common Stock
      at
      a price equal to the Conversion Price as described in Section 1.02 above, except
      as otherwise specified in Section 1.02 above.

    

    Section
      4.02 Re-issuance of Debenture. When the Holder elects to convert a part of
      the
      Debenture or the Company redeems a portion of the Debenture, then the Company
      shall reissue a new Debenture in the same form as this Debenture to reflect
      the
      new principal amount.

    

    Section
      4.03 Termination of Conversion Rights. The Holder’s right to convert the
      Debenture into the Common Stock in accordance with paragraph 4.01 shall
      terminate on October 31, 2006 and this Debenture shall be automatically
      converted or redeemed on that date at the option of the Holder in accordance
      with the formula set forth in Section 4.01 hereof, and the appropriate shares
      of
      Common Stock and amount of interest shall be issued to the Holder or the face
      value of the Debenture along with accrued interest.

    

    ARTICLE
      V.

    

    Section
      5.01 Anti-dilution. In the event that the Company shall at any time subdivide
      the outstanding shares of Common Stock, or shall issue a stock dividend on
      the
      outstanding Common Stock, the Conversion Price in effect immediately prior
      to
      such subdivision or the issuance of such dividend shall be proportionately
      decreased, and in the event that the Company shall at any time combine the
      outstanding shares of Common Stock, the Conversion Price in effect immediately
      prior to such combination shall be proportionately increased, effective at
      the
      close of business on the date of such subdivision, dividend or combination
      as
      the case may be.

    

    ARTICLE
      VI.

    

    Section
      6.01 Notice. Notices regarding this Debenture shall be sent to the parties
      at
      the following addresses, unless a party notifies the other parties, in writing,
      of a change of address:

    

    

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    If
      to the
      Company, to:

    220
      De La
      Coulee

    Mount
      Saint Hilaire

    Quebec,
      Canada J3H 5Z6

    

    If
      to the
      Holder:

    468
      Pleasant Park Road

    Ottawa
      Ontario K1H 5N1

    Canada

    

    Section
      6.02 Governing Law. This Debenture shall be deemed to be made under and shall
      be
      construed in accordance with the laws of the Province of Ontario without giving
      effect to the principals of conflict of laws thereof.

    

    Section
      6.03 Severability. The invalidity of any of the provisions of this Debenture
      shall not invalidate or otherwise affect any of the other provisions of this
      Debenture, which shall remain in full force and effect.

    

    Section
      6.04 Entire Agreement and Amendments. This Debenture represents the entire
      agreement between the parties thereto with respect to the subject matter hereof
      and there are no representations, warranties or commitments, except as set
      forth
      herein. This Debenture may be amended only by an instrument in writing executed
      by the parties hereto.

    

    Section
      6.05 Counterparts. This Debenture may be executed in multiple counterparts,
      each
      of which shall be an original, but all of which shall be deemed to constitute
      on
      instrument.

    

    IN
      WITNESS THEREOF, with the intent to be legally bound hereby, the Company as
      executed this Debenture as of the date first written above.

    

    AMERICAN
      UNITED CORPORATION

    

    

    

    Per:
      /s/
      Benoit
      Laliberte               
      

    

    Name:
      Benoit Laliberte

    Title:
      CEO, CFO, & Director

    

    Strathmere
      Associates International Limited

    

    

    

    Per:
      /s/
      Lawry
      Trevor-Deutsch        

    

    Name:
      Lawry Trevor-Deutsch

    Title:
      President

    

    

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    EXHIBIT
      “A”

    NOTICE
      OF
      CONVERSION

    --------------------------------

    (To
      be
      executed by the Holder in order to Convert the Debenture)

    

    TO:
       

    The
      undersigned hereby irrevocably elects to convert US$____________________________
      of the principal amount of the above Debenture into Shares of Common Stock
      of
      United American Corporation, according to the conditions stated therein, as
      of
      the Conversion Date written below.

    

    Conversion
      Date:

    ________________________________________________

    

    Applicable
      Conversion Price:

    ________________________________________________

    

    Signature:

    ________________________________________________

    

    Name:

    ________________________________________________

    

    Address:

    ________________________________________________

    

    Amount
      to
      be converted:

    US$_____________________________________________

    

    Amount
      to
      Debenture unconverted:

    US$____________________________________________

    

    Conversion
      Price per share:

    US$____________________________________________

    

    Number
      of
      shares of Common Stock to be issued:

    ________________________________________________

    

    Please
      issue the shares of Common Stock in the following name and to the following
      address:

    ________________________________________________

    

    Issue
      to:

    ________________________________________________

    

    Authorized
      Signature:

    ________________________________

    

    Name:

    ________________________________________________

    

    Title:

    ________________________________________________

    

    Phone
      Number:

    ________________________________________________EX-4.1

Exhibit 4.1

VERTICALNET, INC.

Amendment No.1

to

Senior Secured Convertible Promissory Note

due July 2, 2007

Original Note No.     Original Principal Amount: $     

Original Note Dated: August 16, 2005

Amendment No. 1 Dated: August 31, 2005

This AMENDMENT NO. 1 TO SENIOR SECURED CONVERTIBLE PROMISSORY NOTE dated as of August 31, 2005
(this “Amendment”) is made and entered into by and among Verticalnet, Inc., a Pennsylvania
corporation (the “Maker”), and the noteholder named on the signature page hereto (the
“Holder”). Holder is the owner of that certain Senior Secured Convertible Promissory Note
due July 2, 2007 No.     in the principal amount stated above (the “Original Note”).

BACKGROUND

WHEREAS, pursuant to that certain Note and Warrant Purchase Agreement dated as of August 16,
2005 (the “Purchase Agreement”), by and among the Maker and the Purchasers (as defined in
the Purchase Agreement), the Maker issued and sold to the Purchasers, and the Purchasers purchased
from the Maker, Senior Secured Convertible Promissory Notes due July 2, 2007 (the “Notes”)
in the aggregate principal amount of Six Million Six Hundred Thousand Dollars ($6,600,000), which
included the issuance of the Original Note to the Holder;

WHEREAS, the Maker and the Holder desire to amend the Original Note as set forth in this
Amendment; and

WHEREAS, contemporaneously with the execution and delivery of this Amendment, the Maker is
entering into an amendment in form and substance identical with this Amendment with each Purchaser
to amend each of the Notes issued by the Maker.

NOW, THEREFORE, the parties hereto agree as follows:

AGREEMENT

1. Section 3.4(c) of Original Note shall be amended and restated in its entirety as follows:

“(c) Notwithstanding anything to the contrary set forth herein, the Maker shall not
be obligated to issue in excess of an aggregate of 9,468,758 shares of Common Stock
upon conversion of the Notes, which number of shares shall be subject to adjustment
pursuant to Sections 3.6(a)(i) through (iv) (such number of shares, the
“Issuable Maximum”). The Issuable Maximum equals 19.99% of the number of
 shares of Common Stock outstanding immediately prior to the Issuance Date. If on
any Conversion Date (A) the Conversion Price then in effect is such that the
aggregate number of shares of Common Stock to be issued on such Conversion Date when
added with the number of share of Common Stock previously issued upon conversion of
the Notes would equal or exceed the Issuable Maximum, and (B) the Maker shall not
have previously obtained the vote of stockholders (the “Stockholder
Approval”), if any, as may be required by the applicable rules and regulations
of the Nasdaq SmallCap Market (or any successor entity) applicable to approve the
issuance of shares of Common Stock in excess of the Issuable Maximum pursuant to the
terms hereof, then the Maker shall issue to the Holder so requesting such number of
 shares of Common Stock equal to the Issuable Maximum minus the number of shares of
Common Stock previously issued upon conversion of the Notes and, with respect to the
remainder of shares of Common Stock which would result in an issuance of shares of
Common Stock in excess of the Issuable Maximum (the “Excess Shares”), the
Maker shall use its best efforts to obtain the Stockholder Approval applicable to
such issuance as soon as is possible, but in any event not later than the next
annual meeting of stockholders (the “First Stockholder’s Meeting”). The
Maker acknowledges that such request has been made by the Holder as of the Issuance
Date. The Maker and the Holder understand and agree that shares of Common Stock
issued to and then held by the Holder as a result of conversion of the Notes or as a
result of exercise of the Warrants shall not be entitled to cast votes on any
resolution to obtain Stockholder Approval. The Maker agrees that all of the
officers and directors of the Maker that hold shares of Common Stock shall vote in
favor of the issuance of shares of Common Stock in excess of the Issuable Maximum.
If the Stockholder Approval is not obtained at the First Stockholder’s Meeting, so
long as any of the Notes remain outstanding the Maker shall cause a stockholder’s
meeting to be held every six months thereafter until the Stockholder Approval is
obtained.”

2. The Original Note shall remain in full force and effect in all respects except as modified
by this Amendment.

3. This Amendment may be executed in any number of counterparts, all of which taken together
shall constitute one and the same instrument and shall become effective when counterparts have been
signed by each party and delivered to the other parties hereto, it being understood that all
parties need not sign the same counterpart.

4. This Amendment shall be governed by and construed in accordance with the internal laws of
the State of New York, without giving effect to any of the conflicts of law principles which would
result in the application of the substantive law of another jurisdiction. This Amendment shall not
be interpreted or construed with any presumption against the party causing this Amendment to be
drafted.

1

IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to Senior Secured
Convertible Promissory Note to be duly executed by their respective authorized officers as of the
date first above written.

VERTICALNET, INC.

By: /s/ Christopher G. Kuhn     

Name: Christopher G. Kuhn

Title: Vice President and General Counsel

2

[SIGNATURE PAGE TO AMENDMENT NO. 1 TO

SENIOR SECURED CONVERTIBLE PROMISSORY NOTE]

HOLDER:      

By:     Name:

Title:

Original Note No.      

3

Schedule A

Noteholders

	 	 	 	 	 	 	 
	Holder’s Name	 	Note Amount	 	Original Note No.
	Iroquois Master Fund, Ltd.

	 	 	1,150,000.00	 	 	CN-05-01
	 
	 	 	 	 	 	 
	Alpha Capital AG

	 	 	500,000.00	 	 	CN-05-02
	 
	 	 	 	 	 	 
	JGB Capital L.P.

	 	 	300,000.00	 	 	CN-05-03
	 
	 	 	 	 	 	 
	Harborview Master Fund LP

	 	 	400,000.00	 	 	CN-05-04
	 
	 	 	 	 	 	 
	Portside Growth and Opportunity Fund

	 	 	250,000.00	 	 	CN-05-05
	 
	 	 	 	 	 	 
	Smithfield Fiduciary LLC

	 	 	500,000.00	 	 	CN-05-06
	 
	 	 	 	 	 	 
	Bristol Investment Fund, Ltd.

	 	 	500,000.00	 	 	CN-05-07
	 
	 	 	 	 	 	 
	Nite Capital LP

	 	 	250,000.00	 	 	CN-05-08
	 
	 	 	 	 	 	 
	Castle Creek Technology Partners LLC

	 	 	1,000,000.00	 	 	CN-05-09
	 
	 	 	 	 	 	 
	DKR Soundshore Oasis Holding Fund Ltd.

	 	 	500,000.00	 	 	CN-05-10
	 
	 	 	 	 	 	 
	CAMOFI Master LDC

	 	 	500,000.00	 	 	CN-05-11
	 
	 	 	 	 	 	 
	Whalehaven Capital Fund Limited

	 	 	500,000.00	 	 	CN-05-12
	 
	 	 	 	 	 	 
	Platinum Long term Growth I, LLC

	 	 	250,000.00	 	 	CN-05-13
	 
	 	 	 	 	 	 

4

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