e.Digital Corporation (fka EDIG)

[HotrodHans]

rwrf...here's a clue for doni


7. PROMISSORY NOTE
The Company has the option, subject to certain limitations, to elect to make monthly $50,000 installment payments on the 7.5% Convertible Subordinated Term Note either in cash or in shares of common stock (“Monthly Installment Shares”). Monthly Installment Shares are valued at the arithmetic average of the closing prices for the last five trading days of the applicable month without discount. Payments must be paid in cash if the computed average price is less than $0.10 per share. During the three months ended June 30, 2009 the Company made the three monthly installment payments aggregating $150,000 through the issuance of 1,196,274 shares of common stock. Subsequent to June 30, 2009 the Company made the July 2009 note payment through the issuance of 458,715 shares of common stock.