Prepayment. For the Notes, or any future Note for which any partial or full payment has been made (whether in the form of payment by Secured & Collateralized Promissory Note, cash, or other agreed upon form of payment), the Company may prepay that Note at 135% of the principal balance.
135% is $2.6m for prepayment penalty.
There will be no additional cash payments to the Company from the Investor until the Note balance is $0 (must be $0 including any penalties or liquidated damages that are added to the Note balance) and all Conversion Shares are sold. It is estimated that Holder will need to liquidate $1,900,000 or more prior to any additional cash payments.
Agreed, this 8th of February, 2011. Cord Blood America, Inc.
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