ARGYLE SECURITY, INC. 4
4 · ARGYLE SECURITY, INC. · Filed Dec 16, 2009
Insider Transaction Report
Form 4
ARGYLE SECURITY, INC.ARGL.OB
MEZZANINE MANAGEMENT LTD
10% Owner
Transactions
- Purchase
10% Convertible Subordinated Notes
2009-12-14$2450000.00/sh+2,450,000$6,002,500,000,000 - Purchase
10% Convertible Subordinated Bridge Notes
2009-12-14$8000000.00/sh+8,000,000$64,000,000,000,000
Footnotes (3)
- [F1]Under the terms of these notes, the issuer is required to use commercially reasonable efforts to complete a rights offering of its common stock as promptly as reasonably practicable after the issue date of these notes. The proceeds from such an offering received from sources other than the reporting persons will be used to repay these notes. The reporting persons are required to use the balance of the notes to participate in the rights offering. (Continued in Note 2)
- [F2]Any of these notes not repaid or otherwise used by the reporting persons to subscribe for common stock in such rights offering will be automatically converted into common stock at the earlier of (1) the closing of the rights offering (or such other equity offering of the issuer) or (2) June 30, 2010, at a price per share equal to (A) the price per share offered in the rights offering (or such other equity offering of the issuer) or (B) if no rights offering (or other equity offering) occurs before June 30, 2010, $0.4302, which reflects the volume weighted average sale price for the common stock as quoted on the OTC Bulletin Board for the ten trading days prior to the issuance of these notes.
- [F3]These notes are convertible into shares of common stock at the option of the reporting persons, at a price equal to (1) the price per share offered in the rights offering (or such other equity offering) if consummated on or prior to June 30, 2010 or (2) if no such rights offering (or other equity offering) occurs before June 30, 2010, $0.4302, which reflects the volume weighted average sale price for the common stock as quoted on the OTC Bulletin Board for the ten trading days prior to the issuance of these notes.