Common use of The New Notes Clause in Contracts

The New Notes. The Company has advised the Noteholders that it has insufficient funds to make the June 3, 2002 interest payment, which will result in an Event of Default under the Indenture on July 3, 2002. As a result, the Company has requested that the Noteholders agree to permit the Company to make the June 3, 2002 accrued cash interest payment due on the Notes, plus the interest due on such interest, through the issuance of additional promissory notes (the "NEW NOTES") with terms that are identical to the terms of the Series A Notes except with respect to the issuance date, the aggregate principal amount and CUSIP number. In addition, the New Notes will not immediately be registered under the Securities Act of 1933 and shall not be freely tradable until such time as a registration statement with respect to the New Notes has been declared effective by the Securities and Exchange Commission. The New Notes will be issued under the Indenture as Series A Notes and as Tack-On Senior Secured Notes, and they will have an Accreted Value of $1,000 per Note.

The New Notes. The Company has advised and the Noteholders hereby agree that it has insufficient funds to make the June 3, 2002 interest payment, which will result in an Event of Default under the Indenture on July 3, 2002. As a result, the Company has requested that the Noteholders agree to permit the Company to shall make the June 3, 2002 accrued cash interest payment due on the Notes, plus the interest due on such interest, through the issuance to the Noteholders of additional promissory notes the New Notes on the Effective Date having an aggregate principal amount equal to the amount of such interest payment ($8,125,000) and accruing interest from June 3, 2002. The New Notes shall be issued under the "NEW NOTES") with Indenture as Series A Notes and as Tack-On Senior Secured Notes and shall have terms that are identical to the terms of the Series A Notes except with respect to the issuance date, the aggregate principal amount and the CUSIP number. In addition, the New Notes will not immediately be registered under the Securities Act of 1933 and shall not be freely tradable until such time as a registration statement with respect to the New Notes has been declared effective by the Securities and Exchange Commission. The Company hereby agrees that, on the Effective Date, it shall execute and deliver the New Notes will be issued under the Indenture as Series A Notes and as Tack-On Senior Secured Notes, and they will have an Accreted Value of $1,000 per Note.