Document ID: 12777

Text:
(i) At the Closing, Buyer or Buyer Licensee will deliver to Seller a $100,000 aggregate principal amount in the form of a convertible equity security (Convertible Equity Security) and will also deliver to Steven J. Rychnovsky as Sellers Designee, a $100,000 aggregate principal amount in the form of a second Convertible Equity Security. The combined total amount of all such Convertible Equity Securities will be $200,000 and will fully satisfy that $200,000 convertible debenture referenced in that Option to Purchase Assets Agreement, dated August 27, 2009, by and between Seller and Buyer. Each Convertible Equity Security shall carry a simple interest rate of 8% accruing from the Effective Date and shall be converted (including any interest that is accrued and unpaid as of the date of conversion) on the date of the Payment Equity Financing of (A) the Buyer or (B) the Buyer Licensee. This conversion shall be the sole means of payment of the Convertible Equity Security, unless at Buyers sole discretion, Buyer chooses to pay cash in whole or in part.

Named Entities:
16
19
Principal
79
82
Principal
97
101
Title
104
107
EffectiveDate
127
128
Percentage

Tokenized Text:
(
i
)
At
the
Closing
,
Buyer
or
Buyer
Licensee
will
deliver
to
Seller
a
$
100
,
000
aggregate
principal
amount
in
the
form
of
a
convertible
equity
security
(
Convertible
Equity
Security
)
and
will
also
deliver
to
Steven
J
.
Rychnovsky
as
Sellers
Designee
,
a
$
100
,
000
aggregate
principal
amount
in
the
form
of
a
second
Convertible
Equity
Security
.
The
combined
total
amount
of
all
such
Convertible
Equity
Securities
will
be
$
200
,
000
and
will
fully
satisfy
that
$
200
,
000
convertible
debenture
referenced
in
that
Option
to
Purchase
Assets
Agreement
,
dated
August
27
,
2009
,
by
and
between
Seller
and
Buyer
.
Each
Convertible
Equity
Security
shall
carry
a
simple
interest
rate
of
8
%
accruing
from
the
Effective
Date
and
shall
be
converted
(
including
any
interest
that
is
accrued
and
unpaid
as
of
the
date
of
conversion
)
on
the
date
of
the
Payment
Equity
Financing
of
(
A
)
the
Buyer
or
(
B
)
the
Buyer
Licensee
.
This
conversion
shall
be
the
sole
means
of
payment
of
the
Convertible
Equity
Security
,
unless
at
Buyers
sole
discretion
,
Buyer
chooses
to
pay
cash
in
whole
or
in
part
.