Vapor Group Inc (VPOR)

[TheSittingtight1]

but the deal with Hanover was based on the lowest price of shares trading for 5 previous days upon request for conversion. Then the default would give them a 30% discount to that price. (Default provision removed) The lower the price the more shares to pay the debt. This is where the toxicity begins.

Re:

1.2 Conversion Price. Calculation of Conversion Price. The conversion price in effect on any Conversion Date shall be equal to a 30% discount from the lowest trading price in the five (5) Trading Days prior to conversion, subject to adjustment herein (the “Conversion Price”).


(Default provision removed)

Re:

The Agreement also makes various modifications to the Convertible Notes, including, without limitation, the removal of the clause in Section 3.19 of each Convertible Note, which stated: “Trading Below Premium. If, at any time after one hundred and eighty (180) calendar days after the Issue Date, the stock is trading below $0.18, the Company will be considered in default.”