Common use of Extension of Related Party Debt Clause in Contracts

Extension of Related Party Debt. All promissory notes issued by the Company to any shareholder, officer or director was converted to a term out loan whereby the loans were amortized over 36 months at a 12% interest rate with a balloon payment at eighteen months. A sample of the revised promissory notes is attached as Schedule 7.9. ARTICLE VIIICONDITIONS PRECEDENT TO OBLIGATION OF COMPANY TO CLOSE 8.1 Accuracy of Representations 8.2 Buyer’s Performance 8.3 No Injunction ARTICLE IXTERMINATION

Extension of Related Party Debt. All promissory notes issued by the Company to any shareholder, officer or director was converted to a term out loan whereby the loans were amortized over 36 months at a 12% interest rate with a balloon payment at eighteen months. A sample of the revised promissory notes is attached as Schedule 7.9. ARTICLE VIIICONDITIONS PRECEDENT TO OBLIGATION OF COMPANY TO CLOSE 8.1 Accuracy of Representations 8.2 Buyer’s Performance 8.3 No Injunction ARTICLE IXTERMINATION.