Dr Foods Inc. (DRFS)

[JDoggs_Money]

Here's what I'm curious about today...

"(2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Lender and its affiliates of more than 4.99% of the outstanding shares of Common Stock."

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9872797
Exhibit 10.0, page 3

The amount of shares today alone would put them over the 5% threshold. Much less for the last 4 days?!?!

What am I missing? Did the note holder do something against the contract?

"(1) of such proviso, provided, further, however, that the limitations on conversion may be waived by the Lender upon, at the election of the Lender, not less than 61 days prior notice to the Borrower, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such later date, as determined by the Lender, as may be specified in such notice of waiver)."

Same page.

Did the company get a waiver sent to them and agree to let them convert ALL of the the remaining??? That would be F'ed up!

Or is that why they sell them right away once converted???

Just trying to understand if the note-holder is going against the contract?