Common use of Draw Downs Clause in Contracts

Draw Downs. As set forth on the Ledger, as of the Original Issue Date, Holder has loaned to the Company an aggregate principal amount of $494,000 (the “Initial Advance”). The Holder agrees to immediately lend such additional cash amounts to the Company as the Company may request from time to time (each a “Draw Down”), up to an aggregate principal amount of $3,000,000 (including the Initial Advance, except for advances in the aggregate principal amount of $317,662.19 which have been converted by the Holder to common stock of the Company) (the “Full Commitment Amount”); provided however, that the Holder shall not be obligated to advance any Draw Down request for an amount less than $100,000, unless such amount represents the remainder of the Full Commitment Amount not yet advanced. All Draw Downs made on account of principal hereof shall be recorded on the Ledger and signed by Holder and the Company where indicated; provided however, that the failure of the Holder to sign the Ledger shall have no effect on the Holder’s obligation to advance any Draw Down. The applicable Repayment Date for each Draw Down shall be the one year anniversary of the date such funds are initially advanced to the Company as indicated on the Ledger; provided however that the Repayment Date for the Initial Advance and any Draw Downs that were made on or before September 30, 2010, shall be November 17, 2012. Simultaneously with the receipt of any Draw Down funds, the Company shall issue to the Holder a Warrant to purchase an amount of shares of Common Stock of the Company equal to the amount of such Draw Down divided by the then applicable Conversion Price (as defined below) and otherwise on the terms and conditions set forth in the Warrant.”

Draw Downs. As set forth on the Ledger, as of the Original Issue Date, Date Holder has loaned to the Company an aggregate principal amount of $494,000 (the “Initial Advance”). The Holder agrees to immediately lend such additional cash amounts to the Company as the Company may request from time to time (each a “Draw Down”), up to an aggregate principal amount of $3,000,000 2,000,000 (including the Initial Advance, except for advances in the aggregate principal amount of $317,662.19 which have been converted by the Holder to common stock of the Company) (the “Full Commitment Amount”); provided however, that the Holder shall not be obligated to advance any Draw Down request for an amount less than $100,000, unless such amount represents the remainder of the Full Commitment Amount not yet advanced. All Draw Downs made on account of principal hereof shall be recorded on the Ledger and signed by Holder and the Company where indicated; provided however, that the failure of the Holder to sign the Ledger shall have no effect on the Holder’s obligation to advance any Draw Down. The applicable Repayment Date for each Draw Down and for the Initial Advance shall be the one year anniversary of the date such funds are initially advanced to the Company as indicated on the Ledger; provided however that the Repayment Date for the Initial Advance and any Draw Downs that were made on or before September 30, 2010, shall be November 17, 2012. Simultaneously with the receipt of any Draw Down funds, the Company shall issue to the Holder a Warrant to purchase an amount of shares of Common Stock of the Company equal to the amount of such Draw Down divided by the then applicable Conversion Price (as defined below) and otherwise on the terms and conditions set forth in the Warrant.”