Summary of Principal Terms
Loan Transaction with Warrants
COMMAND CENTER, INC.
and
SONORAN PACIFIC RESOURCES, LLP
June 24, 2008
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Maker (“Company”):
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Command
Center, Inc., a Washington corporation.
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Holder:
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Sonoran
Pacific Resources, LLP, an Arizona limited liability
partnership.
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Promissory Note:
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Company
shall execute and deliver to Holder the Promissory Note in the
form attached hereto.
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Two
Million Dollars ($2,000,000.00).
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Principal Amount:
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Interest Rate:
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Fifteen
percent (15%) per annum. If not paid according to the terms of
the Promissory Note, the interest rate shall be two percent
(2.0%) per month.
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Warrants:
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Command
Center shall issue to Holder warrants for 1,000,000 shares of
the company’s common stock, $0.001 par value per share
(the “Warrants”). Each Warrant shall be
convertible, at the option of the Holder, at any time before
July 1, 2011 into one share of the Company’s common
stock, $0.001 par value per share (“ Common
Stock ”),
at an initial conversion price equal to $0.45 per share,
subject to adjustment to reflect certain stock dividends,
stock splits, combinations or exchanges of shares,
recapitalizations, or other changes in the capital structure
of the Company (the “ Conversion
Price ”).
If not previously converted, the Warrants will expire on July
1, 2011.
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Antidilution Provisions
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The
Conversion Price of the Warrants shall be adjusted to provide
the Holder with a full ratchet anti-dilution protection for
any subsequent issuance by the Company of shares of
Com
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