Common use of Authorization of Convertible Notes Clause in Contracts

Authorization of Convertible Notes. The Company has authorized the issuance and sale of an aggregate of $7,000,000 principal amount of its 0% Convertible Subordinated Notes due May 29, 2002 (the "Convertible Notes"). The Convertible Notes are convertible into shares of the Company's common stock ("Common Stock"), par value $.01 per share (such shares to be issued upon conversion of the Convertible Notes being hereinafter referred to herein as the "Shares"), at the Conversion Price defined in Article 24 of this Agreement. The Convertible Notes do not bear interest. The Convertible Notes are to be sold pursuant to this Agreement to the purchasers listed on Exhibit "A" to this Agreement (the "Purchasers"). The Form of Convertible Note is attached hereto as Exhibit "B". I. A.