LETTER OF UNDERSTANDING
LETTER OF UNDERSTANDING
FOR VALUE RECEIVED, the undersigned, BROADCAST INTERNATIONAL, INC
(“the Corporation or BI”), hereby agrees to pay the principal sum of ONE MILLION
DOLLARS, ($1,000,000) in lawful money of the United States of America on or before
October 30, 2006 unless this agreement is replaced as contemplated below.
This agreement is to be replaced by a formal CONVERTIBLE NOTE SECURITY
Agreement, terms to include;
1.
Convertible into BI’s common stock at $1.50
2.
Term of the note two year
3.
5% annual interest rate payable in common stock
4.
Semi Annual Payments
5.
BI shall grant to Triage warrants to purchase BI common stock with the
following terms:
# of shares of
Warrants
Common Stock
Exercise Price
Term
A Warrants
750,000
$1.60
1 year after
registration
B Warrants
750,000
$1.75
1 year after
registration
C Warrants
2,000,000
$2.10
18 months
after registration
D Warrants
2,000,000
$3.00
2 years after
registration
The Corporation agrees to complete the CONVERTIBLE NOTE SECURITY documents
with in 5 days of the LETTER OF UNDERSTANDING.
Dated 25th day of September 2006.
/s/ Rodney M. Tiede
Broadcast International
Rodney M Tiede
President/CEO
