Item 1.01 Entry into a Material Definitive Agreement.
On
If a Note is repaid (i) prior to 91 calendar days from the date of issuance, the Company is required to repay one hundred and nine percent (109%) of the aggregate principal balance and interest due on the Note outstanding as of the date of repayment (ii) between 91-120 calendar days from the date of issuance, the Company is required to repay one hundred and fifteen percent (115%) of the aggregate principal balance and interest due on the Note outstanding as of the date of repayment (iii) 121 calendar days or more from the date of issuance, the Company is required to repay one hundred and twenty-four percent (124%) of the aggregate principal balance and interest due on the Note outstanding as of the date of repayment.
In addition, the Notes provide that all accrued and unpaid interest thereon may be converted into the Company's next equity or debt securities offering on a dollar-for-dollar basis on such subscription terms and conditions as provided for in such offering.
Upon the occurrence of an event of default under the Notes, the Company must repay to the Note holders a default penalty equal to two percent (2%) of the face amount of such Notes per month during the period of default, in addition to the payment of all other amounts, costs, fees and expenses due in respect of the Notes.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
As disclosed above under Item 1.01, the Company issued the Notes on
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
On
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. Description 3.1 Amended and Restated Certificate of Designation of Preferences, Rights and Limitations of Series B 10% Convertible Preferred Stock
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