Common use of Insolvency of Company Clause in Contracts

Insolvency of Company. The Senior Lender is aware that the Company is indebted to the holders of the Debentures in an aggregate principal amount of $15,000,000, that such amount was due and payable on August 27, 2001, that the Company does not have, and does not expect to have the funds to repay this indebtedness at any time in the foreseeable future, and that the Company has no agreement with the holders of the Debentures relating to such indebtedness or its repayment, other than the terms of the Debentures. Senior Lender has carefully read and, to the extent it believes appropriate, has discussed with legal counsel, the Risk Disclosure attached hereto as Exhibit I and has chosen to purchase the Note and the Warrant with the full knowledge, awareness and understanding of the risks disclosed therein.