Axion International Hldgs Inc. (fka AXIHQ)

[berge]

this part might be a "red flag"
Item 2.04 - Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement

On April 4, 2007, the Company's common stock was delisted from trading on the Nasdaq Capital Market. Pursuant to the terms of the Company's 13% Secured Convertible Debentures due November 24, 2007 (the “Debentures”), failure to be listed on a major exchange constitutes an Event of Default. As such, the holders of the Debentures may elect to accelerate the Debentures and demand an immediate cash payment of 120% of the outstanding aggregate principal amount of $1,643,050, plus accrued but unpaid interest, liquidated damages and other amounts owing in respect thereof through the date of acceleration. Additionally, commencing five days after the occurrence of any Event of Default that results in the eventual acceleration of the Debentures, the interest rate on the Debentures will accrue at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted under applicable law. The holders of the Debentures have the right to seize and liquidate the Company's assets at any time.