Common use of Convertible Note Clause in Contracts

Convertible Note. 03/01/05 Clarion Finanz AG Senior Subordinated $1,000,000.00 $1,000,000.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- 03/01/05 Capriccio Investments Inc. Senior Subordinated $1,000,000.00 $1,000,000.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- 03/01/05 Desmodio Management Inc. Senior Subordinated $1,000,000.00 $1,000,000.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- 03/01/05 Centrum Bank AG Senior Subordinated $950,000.00 $950,000.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- 03/01/05 Finter Bank Zurich Senior Subordinated $910,000.00 $910,000.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- 03/01/05 Xxxxxx Xxxx Fund Senior Subordinated $685,000.00 $685,000.00 Trading (3)

Convertible Note. 03/01/05 Clarion Finanz AG Senior Subordinated $1,000,000.00 $1,000,000.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------ 03/01/05 Capriccio Investments Inc. Senior Subordinated $1,000,000.00 $1,000,000.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------ 03/01/05 Desmodio Management Inc. Senior Subordinated $1,000,000.00 $1,000,000.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------ 03/01/05 Centrum Bank AG Senior Subordinated $950,000.00 $950,000.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------ 03/01/05 Finter Bank Zurich Senior Subordinated $910,000.00 $910,000.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------ 03/01/05 Xxxxxx Xxxx Fund Senior Subordinated $685,000.00 $685,000.00 Trading (3)

Convertible Note. 03/01/05 Clarion Finanz AG Vanguard Capital Limited Senior Subordinated $1,000,000.00 1,100,000.00 $1,000,000.00 1,100,000.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- 03/01/05 Capriccio Investments Inc. ------------------------------------------------------------------------------------------------------------------ 05/31/05 HFTP Investment L.L.C. Senior Subordinated Secured $1,000,000.00 5,166,667.00 $1,000,000.00 5,166,667.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- 03/01/05 Desmodio Management Inc. ------------------------------------------------------------------------------------------------------------------ 05/31/05 Gaia Offshore Master Fund, Senior Subordinated Secured $1,000,000.00 1,333,333.00 $1,000,000.00 1,333,333.00 Ltd. Convertible Note --------------------------------------------------------------------------------------------------------------------- 03/01/05 Centrum Bank AG ------------------------------------------------------------------------------------------------------------------ 05/31/05 Caerus Fund, Ltd. Senior Subordinated Secured $950,000.00 166,667.00 $950,000.00 166,667.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- 03/01/05 Finter Bank Zurich ------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------ DATE CREDITOR NATURE OF DEBT ORIGINAL AMOUNT INCURRED AMOUNT OUTSTANDING ------------------------------------------------------------------------------------------------------------------ 05/31/05 Xxxxxxxx, L.P. Senior Subordinated Secured $910,000.00 3,333,333.00 $910,000.00 3,333,333.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- 03/01/05 Xxxxxx Xxxx Fund Senior Subordinated $685,000.00 $685,000.00 Trading (3)------------------------------------------------------------------------------------------------------------------ ------------

Convertible Note. 03/01/05 Clarion Finanz AG Vanguard Capital Limited Senior Subordinated $1,000,000.00 1,100,000.00 $1,000,000.00 1,100,000.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- 03/01/05 Capriccio Investments Inc. 05/31/05 HFTP Investment L.L.C. Senior Subordinated Secured $1,000,000.00 5,166,667.00 $1,000,000.00 5,166,667.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- 03/01/05 Desmodio Management Inc. 05/31/05 Gaia Offshore Master Fund, Senior Subordinated Secured $1,000,000.00 1,333,333.00 $1,000,000.00 1,333,333.00 Ltd. Convertible Note --------------------------------------------------------------------------------------------------------------------- 03/01/05 Centrum Bank AG 05/31/05 Caerus Fund, Ltd. Senior Subordinated Secured $950,000.00 166,667.00 $950,000.00 166,667.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- 03/01/05 Finter Bank Zurich --------------------------------------------------------------------------------------------------------------------- DATE CREDITOR NATURE OF DEBT ORIGINAL AMOUNT INCURRED AMOUNT OUTSTANDING --------------------------------------------------------------------------------------------------------------------- 05/31/05 Xxxxxxxx, L.P. Senior Subordinated Secured $910,000.00 3,333,333.00 $910,000.00 3,333,333.00 Convertible Note --------------------------------------------------------------------------------------------------------------------- 03/01/05 Xxxxxx Xxxx Fund Senior Subordinated $685,000.00 $685,000.00 Trading (3)------------