<PAGE> 1
EXHIBIT 10.3
CHANGE IN TERMS AGREEMENT
[LOGO]
BORROWER
COMPASS
BANK NOTICE
OF NO ORAL
AGREEMENTS
Global Election Systems, Inc.
COMPASS BANK
P O Box 26144
Albuquerque, NM 87125
(888) 967-2265 "LENDER"
ADDRESS
1611 Wilmeth Road
McKinney, TX 75069
TELEPHONE NO.
IDENTIFICATION NO.
85039490
<TABLE>
<CAPTION>
OFFICER INTEREST CUSTOMER TRANSACTION
IDENTIFICATION RATE CREDIT LIMIT AGREEMENT DATE NUMBER ACCOUNT
-------------- ---- ------------ -------------- ------ -------
<S> <C> <C> <C> <C> <C>
WMF VARIABLE $904,950.00 05/22/00
</TABLE>
Borrower confirms that Borrower is aware of the provisions of N.M. Stat.
Ann. Section 58-6-5, providing that no contract, promise, or commitment to
loan money or to grant, extend or renew credit, or any modification
thereof, in any amount greater that $25,000, not primarily for personal,
family or household purposes, made by a financial institution, including
Lender indicated above, is enforceable unless in writing and signed by the
party to be charged, or by that party's authorized representative.
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Borrower acknowledges receipt of an exact copy of this Notice.
Dated: May 22, 2000
BORROWER: Global Election Systems, Inc BORROWER:
By:
------------------------------- ----------------------------
Howard T Van Pelt
President
BORROWER: BORROWER:
---------------------------------- ----------------------------
BORROWER: BORROWER:
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BORROWER: BORROWER:
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<PAGE> 3
[LOGO] COMPASS
BANK BORROWER
COMMERCIAL
VARIABLE
RATE
PROMISSORY
NOTE
Global Election Systems, Inc.
COMPASS BANK
P O Box 26144
Albuquerque, NM 87125
(888) 967-2265 "LENDER"
ADDRESS
1611 Wilmeth Road
McKinney, TX 75069
TELEPHONE NO.
IDENTIFICATION NO.
85039490
<TABLE>
<CAPTION>
OFFICER INTEREST PRINCIPAL FUNDING MATURITY CUSTOMER LOAN
IDENTIFICATION RATE AMOUNT DATE DATE NUMBER NUMBER
-------------- ---- ------------ -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
WMF VARIABLE $904,950.00 05/22/00 11/22/00
--------------------------------------------------------------------------------------
BUSINESS RENEWAL
--------------------------------------------------------------------------------------
</TABLE>
PROMISE TO PAY: For value received, Borrower promises to pay to the order
of Lender the principal amount of Nine Hundred Four Thousand Nine Hundred
Fifty and no/100 Dollars ($ 904,950.00 ) plus interest on the unpaid
principal balance at the rate and in the manner described below, until all
amounts owing under this Note are paid in full. All amounts received by
Lender shall be applied first to accrued, unpaid interest, then to unpaid
principal, and then to any late charges or expenses, or in any other order
as determined by Lender, in Lender's sole discretion, as permitted by law.
INTEREST RATE: This Note has a variable interest rate feature. The interest
rate on this Note may change from time to time if the Index Rate identified
below changes. Interest shall be computed on the basis of the actual number
of days over 360 days per year. Interest on this Note shall be calculated
and payable at a variable rate equal to 1.000 % per annum over the Index
Rate. The initial interest rate on this Note shall be 11.500% per annum.
Any change in the interest rate resulting from a change in the Index Rate
will be effective on:
the actual date of change.
INDEX RATE: The Index Rate for this Note shall be:
The Compass Bank New Mexico Base Rate which is a reference rate established
by Lender and is subject to increase and decrease at Lender's discretion.
Lender may lend to others at interest rates at, or greater or lessor than,
such rate.
<PAGE> 4
If the Index Rate is redefined or becomes unavailable, then Lender may
select another index which is substantially similar.
RATE LIMITATIONS: Subject to applicable law, the minimum interest rate on
this Note shall be N/A % per annum. The maximum interest rate on this Note
shall not exceed N/A % per annum, or if less, or if a maximum rate is not
indicated, the maximum interest rate Lender is permitted to charge by law.
The maximum rate increase at any one time will be N/A %. The maximum rate
decrease at any one time will be N/A %.
DEFAULT RATE: If there is an Event of Default under this Note, the Lender
may, in its discretion, increase the interest rate on this Note to: 18% ,or
the maximum interest rate Lender is permitted to charge by law, whichever
is less.
PAYMENT SCHEDULE: Borrower shall pay the principal and interest according
to the following schedule:
On demand, but if no demand is made, then:
1 interest only payment on August 22, 2000. A final payment of the unpaid
principal balance plus accrued interest is due and payable on November 22,
2000.
PREPAYMENT: This Note may be prepaid in part or in full on or before its
maturity date. If this Note contains more than one installment, any partial
prepayment will not affect the due date or the amount of any subsequent
installment, unless agreed to, in writing, by Borrower and Lender. To the
extent permitted by law, if this Note is prepaid in full, there will be:
[X] No minimum finance charge or prepayment penalty. [ ] A minimum finance
charge of $______. [ ] A prepayment penalty of:
LATE CHARGE: If a payment is received more than 10 days late, Borrower will
be charged a late charge of: [ ] ______% of the unapid payment; [X] $10.00
or 5.00% of the unpaid payment, whichever is [ ] greater [X] less.
SECURITY: To secure the payment and performance of obligations incurred
under this Note, Borrower, grants Lender a security interest in all of
Borrower's right, title, and interest in all monies, instruments, savings,
checking and other accounts of Borrower (excluding IRA, Keogh, trust
accounts and other accounts subject to tax penalties if so assigned) that
are now or in the future in Lender's custody or control. [ ] If checked,
the obligations under this Note are also secured by the collateral
described in any security instrument(s) executed in connection with this
Note, and any collateral described in any other security instrument(s)
securing this Note or all of Borrower's obligations.
RENEWAL: [X] If checked, this Note is a renewal, but not a satisfaction, of
Loan Number 2218900. Such renewal shall not be a novation that effectively
extinguishes debt and substitutes in its place new debt.
THE PERSONS SIGNING BELOW ACKNOWLEDGE THAT THEY HAVE READ, UNDERSTAND, AND
AGREE TO THE TERMS AND CONDITIONS OF THIS NOTE, INCLUDING THE PROVISIONS ON
THE REVERSE SIDE, AND FURTHER ACKNOWLEDGE RECEIPT OF AN EXACT COPY OF THIS
NOTICE.
<PAGE> 5
Dated: May 22, 2000
BORROWER: Global Election Systems, Inc BORROWER:
By:
------------------------------- ----------------------------
Howard T Van Pelt
President
BORROWER: BORROWER:
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BORROWER: BORROWER:
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BORROWER: BORROWER:
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<PAGE> 6
[LOGO] COMPASS
BANK BORROWER
DISBURSEMENT
INSTRUCTIONS
Global Election Systems, Inc.
COMPASS BANK
P O Box 26144
Albuquerque, NM 87125
(888) 967-2265 "LENDER"
ADDRESS
1611 Wilmeth Road
McKinney, TX 75069
TELEPHONE NO.
IDENTIFICATION NO.
85039490
<TABLE>
<CAPTION>
OFFICER INTEREST PRINCIPAL FUNDING MATURITY CUSTOMER LOAN
IDENTIFICATION RATE AMOUNT DATE DATE NUMBER NUMBER
-------------- ---- ------------ -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
WMF VARIABLE $904,950.00 05/22/00 11/22/00
</TABLE>
Borrower has borrowed money from Lender indicated above pursuant to a
Promissory Note/Credit Agreement dated May 22, 2000 and Borrower instructs
Lender to disburse the proceedings in the following manner:
<TABLE>
<S> <C>
AMOUNT DISBURSED TO BORROWER: 0.00
-----------
AMOUNT DRAWN TO PAY OR CREDIT TO BORROWER'S ACCOUNT WITH LENDER:
ACCOUNT NUMBER CREDITED: 500075546-2218900 904,950.00
-----------
ACCOUNT NUMBER CREDITED:
-----------
ACCOUNT NUMBER CREDITED:
-----------
ACCOUNT NUMBER CREDITED:
-----------
ACCOUNT NUMBER CREDITED:
-----------
AMOUNT OF LOAN PROCEEDS PAID TO OTHERS ON THE BORROWER'S BEHALF:
PAYEE:
-----------
PAYEE:
-----------
PAYEE:
-----------
PAYEE:
-----------
PAYEE:
-----------
PAYEE:
-----------
PAYEE:
-----------
PAYEE:
-----------
PAYEE:
-----------
PAYEE:
-----------
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
PAID IN CASH ADDED TO LOAN
<S> <C> <C>
AMOUNT PAID TO PUBLIC OFFICIALS:
------------- -------------
AMOUNT PAID TO INSURANCE COMPANIES:
------------- -------------
AMOUNT PAID TO CREDIT REPORTING AGENCIES:
------------- -------------
TITLE EXAMINATION:
------------- -------------
SETTLEMENT/CLOSING FEE:
------------- -------------
TITLE INSURANCE BINDER:
------------- -------------
ATTORNEY:
------------- -------------
DOCUMENT PREPARATION FEE:
------------- -------------
NOTARY:
------------- -------------
SURVEYOR:
------------- -------------
PEST INSPECTOR:
------------- -------------
ABSTRACT/TITLE SEARCH:
------------- -------------
TITLE INSURER:
------------- -------------
CITY/COUNTY TAX DEED/MORTGAGE:
------------- -------------
STATE TAX DEED/MORTGAGE:
------------- -------------
HAZARD INSURANCE PREMIUM:
------------- -------------
FLOOD INSURANCE PREMIUM
------------- -------------
------------- -------------
------------- -------------
------------- -------------
------------- -------------
------------- -------------
------------- -------------
------------- -------------
------------- -------------
------------- -------------
------------- -------------
Loan Origination Fee
------------- -------------
Points/Discount
------------- -------------
Lender's Inspection Fee
------------- -------------
Assumption Fee
------------- -------------
Doc Prep Fee 250.00
------------- -------------
TOTAL FEES PAID IN CASH: 250.00
------------- -------------
TOTAL FEES FINANCED WITH LOAN: 250.00
=============
</TABLE>
Dated: May 22, 2000
BORROWER: Global Election Systems, Inc BORROWER:
By:
------------------------------- ----------------------------
Howard T Van Pelt
President
BORROWER: BORROWER:
---------------------------------- ----------------------------
BORROWER: BORROWER:
---------------------------------- ----------------------------
BORROWER: BORROWER:
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