"Payable owed to Clifford Grossman from a prior debt owed by IAG : The original amount was $350,000 plus interest at 15% per annum, compounded annually. As of December 31, 2009, accrued interest included in the total amount due was approximately $216,000. In May 2010, we and Clifford Grossman entered into a settlement stipulation whereby the debt would be reduced to $450,000 payable in shares of common stock with $50,000 of shares due upon execution of the settlement, $25,000 of shares due on May 1 and June 1, 2010 and $50,000 of shares due on the first day of each month beginning on July 1, 2010 through January 1, 2011. The number of shares issuable at each date is based on the lesser of a) the weighted average monthly closing price, as defined in the agreement, less 20%, or b) the share price on the last day of the calculation period. The Company issued the shares upon execution but has not issued any further shares under this settlement and is currently in default of the agreement."
That is a boatload of shares to have to pay this guy each month. I do not like this section at all.
