Subscription Agreement for Convertible Debentures between Joseph Shamy and U.S. Data Authority, Inc.

Summary

This agreement is between Joseph Shamy and U.S. Data Authority, Inc. Joseph Shamy agrees to invest $200,000 in a convertible debenture that pays 10% annual interest. The debenture can be converted into preferred stock at $0.20 per share, with each preferred share having enhanced voting rights for three years. After three years, the preferred shares automatically convert to common shares. The agreement is subject to board approval and requires payment and documentation by February 15, 2001. Joseph Shamy confirms he is an accredited investor.

EX-10.1 3 0003.txt SUBSCRIPTION AGREEMENT SHAMY USDA Authority SUBSCRIPTION AGREEMENT FOR CONVERTIBLE DEBENTURES IN U.S. DATA AUTHORITY, INC. The undersigned agrees to subscribe to a convertible debenture in the amount of $200,000 (U.S.). This debenture will bear interest at the rate of 10% per annum from the date of issue. It will be convertible to preferred stock at any time at the rate of $0.20 per share. The preferred stock shall have voting rights equal to 10x the common stock voting rights per share for 3 years from the date of issue. After three years, the preferred shares shall automatically convert to common shares with the same rights and privileges as the existing Section 144 stock. This offer is subject to the approval of the Board of Directors. This subscription should be accompanied by the payment of funds and received by the company by 3:00 p.m. on Thursday, February 15, 2001. BY EXECUTING BELOW, THE UNDERSIGNED REPRESENTS THAT HE/SHE IS AN ACCREDITED INVESTOR, AND AGREES TO COMPLETED ALL NECESSARY DOCUMENTATION TO SUPPORT THIS REPRESENTATION. Dated: 2-15-01 /s/Joseph Shamy ---------------- Print Name: Joseph Shamy Address: ------------------------ SSN/TIN: ------------------------ 3500 NW Boca Raton Boulevard, Building 811 * Boca Raton, Florida 33431 * Tel ###-###-#### * Fax ###-###-#### * www.usda.net