usmc contract, page-2

She's on the verge of going broke Tell....she's cheap if they grab a decent contract but they never do. The Mission
Payload Module-Non-Lethal Weapons System demo may pay off perhaps but she is a seedy stock...been looking a her of late but very hard to buy even at current prices.

Under the heads of agreement, Metal Storm has agreed to:
1. Propose the extension of the maturity date of its listed
convertible notes (ASX:MSTG) from September 1 2009 to September 1 2010.
2. Offer $6m of new convertible notes by way of a rights issue
to existing noteholders, to be partially underwritten by Harmony or its
ssociates or nominees.
Harmony has agreed on the form of an underwriting agreement,
under which it will:
* subscribe for up to $3m in respect of new notes offered to it
under the rights issue; or
* to the extent that it subscribes for less than $3m in new
notes under the rights issue, to underwrite the balance.
3. Offer up to $3m of new notes via a placement to Harmony.
Metal Storm will also grant Harmony a total of 65m options,
exercisable for five years at 6c a share, as a fee for agreeing to
underwrite or subscribe for new notes under the rights issue, and for
the placement of new notes.
Some of the obligations of Metal Storm and Harmony are subject
to the satisfaction of several conditions, including existing noteholder
and shareholder approval.