Ocata Therapeutics Inc fka OCAT

[rocky301]

penny,

The 20% limit soon to be lifted doesn't worry me too much as the debt holders are savy enough not to trash the pps. Imo, 10 cents is the barometer for financing deals and warrants so unless very good or very bad news comes out we will probably hover like we have been.
The info below worries me more than the 20% being lifted, we have to deal with this weight around our neck until end of 2010.


Section 5. Termination of Standstill Obligations.

(a)The obligation of any Lender under Section 4 hereof shall terminate (the “Termination”) on the earliest of (i) the date, if any, on which a petition for relief under the United States Bankruptcy Code or any similar state or Canadian law is filed by or against the Company or any of its subsidiaries or (ii) the date this Agreement is otherwise terminated or expires, it being understood that the Lenders holding 67% of the then outstanding principal amount of the Debentures shall have the right to terminate this Agreement on 3 Business Days’ prior notice to the Company. Notwithstanding anything in this Agreement or the Transaction Documents to the contrary, a Lender (the “Injured Lender”) shall have the right to take action against the Company pursuant to this Agreement or the Transaction Documents without the consent of any other Lender in the event that the Company defaults on a material obligation to such Injured Lender and such treatment of the Injured Lender is disproportionate to the treatment afforded by the Company to any other Lender; provided that such action shall only seek a remedy to the extent required to afford such Injured Lender equal treatment in proportion to such other Lenders and further, prior to taking such action, written notice shall be provided to all other Lenders.

(b) Upon Termination, the agreement of Lenders to forbear shall automatically and without further notice or action terminate and be of no force and effect, it being understood and agreed that the effect of such Termination will be to permit Lenders to exercise such rights and remedies hereunder, under the Transaction Documents, or applicable law, immediately without any further notice, passage of time or forbearance of any kind.

(c) The Company agrees that all of the Indebtedness shall, if not sooner paid, be absolutely and unconditionally due and payable in full in cash or other immediately available funds by the Company and the Lenders on the Termination.
http://www.sec.gov/Archives/edgar/data/1140098/000114420409040193/v155587_ex10-2.htm