It's all good... On April 21, 2008, the Company executed a Forbearance Agreement (the “Agreement”) by and between Ariel Way, Inc. (the “Company”) and YA Global Investments, L.P. (formerly Cornell Capital Partners, LP, a Delaware limited partnership (“YA Global”) and Montgomery Equity Partners, Ltd., a Cayman Islands exempted Company and wholly owned subsidiary of YA Global (“Montgomery” and together with YA Global, the “Investor”). Pursuant to the terms and conditions of this Agreement, the Company was among others obligated to:
(a)
The Company shall issue to YA Global a Warrant to purchase 500,000,000 shares of Common Stock of the Company at an exercise price of $0.001 per share for a period of five years from the issuance date.
(b)
The Company shall amend the Company’s Articles of Incorporation related to its Series A Convertible Preferred Shares so that: (i) Holders of Preferred Shares will be entitled to receive dividends or distributions on a pro rata basis according to their holdings of shares of Preferred Stock when and if declared by the Company’s Board of Directors at an annual rate of eighteen percent (18%) effective as of the date hereof; and (ii) the conversion price as set forth in the Preferred Stock shall be equal to the lesser of (a)Ten Cents ($0.10), or (b) a seventy-five percent (75%) of the lowest volume weighted average price of the Common Stock as quoted by Bloomberg, LP during the twenty (20) trading days immediately preceding the date of conversion. Also, the Company is required to reduce the exercise price of an outstanding warrant to purchase 1,000,000 held by the investor to an exercise price of $.001 per share.
Giving Arne time to take care of the business plan and keep moving it forward, eh?
Life, Liberty and the Pursuit...!
AI
