In December 2011, the Board of Directors of EAU Technologies, Inc. agreed in principle to the material terms of a loan agreement with Peter Ullrich. On March 1, 2012, the terms and conditions were formally approved by the Board. The principal amount of the Note is $358,527. The Note will bear interest at a rate of 10% annually and will mature on November 30, 2013. The Note is convertible into shares of the company's common stock at $1.00 per share and no principal or interest payments are due until maturity. The board also approved the amendment of certain terms of the company's $3,000,000 Third Amended and Restated Senior Secured Convertible Promissory Note dated October 21, 2010 with Water Science, Inc. The Promissory Note will be amended to extend the maturity date to coincide with the maturity date of the Note.