Common use of Replacement Debenture Clause in Contracts

Replacement Debenture. All documents evidencing the Loans are hereby cancelled, superseded and replaced in their entirety by the Debenture attached hereto as Exhibit A (the "Replacement Debenture"). As of June 15, 2003, the parties agree there is a compromised amount of $97,195 owing in accrued interest, penalties, fees, liquidated damages and other costs and expenses incurred and/or accrued. Accordingly, the principal amount of the Replacement Debenture reflects the original principal amount of the Loans of $240,000 and a recapitalization of the foregoing compromised amount, for a total new principle amount of $337,195.