AUTHORIZATION OF DEBENTURES AND COMMON STOCK Sample Clauses
AUTHORIZATION OF DEBENTURES AND COMMON STOCK. The Company will authorize the issue and sale of (i) up to $15,000,000 in aggregate principal amount of its 10% Convertible Subordinated Debentures due October 31, 2006 (the "Debentures"), and (ii) 1,304,348 shares of its Common Stock, $0.0001 par value per share (the "Common Stock"), issuable upon conversion of the Debentures, such number of shares and the conversion price being subject to adjustment as provided in the Debentures. Each Debenture issued hereunder will be dated the date purchased by you hereunder, will mature on October 31, 2006, will bear interest on its unpaid principal balance from the date of issuance at the rate of 10% per annum, payable quarterly on December 31, March 31, June 30, and September 30 each year, commencing on December 31, 1999 and continuing to October 31, 2006, and thereafter shall bear interest on its unpaid principal balance at the rate of 18% per annum, payable quarterly on December 31, March 31, June 30, and September 30 each year, and upon any conversion or redemption of a Debenture (or, if less than all of the principal amount of a Debenture is converted, the portion of accrued and unpaid interest corresponding to the portion of principal of such Debenture converted) and will have the other terms and provisions provided herein and in the form of Debenture attached hereto as Exhibit A, with such changes therefrom, if any, as may be approved by you and --------- the Company. The term "Debenture" or "Debentures" as used herein shall include each Debenture delivered pursuant to any provision of this Agreement and each Debenture delivered in substitution or exchange for any such Debenture pursuant to any such provision. Certain capitalized terms used in this Agreement are defined in Section 14.