EAU Technologies, Inc. (OTCPK:EAUI) announced a private placement of unsecured short term loans from existing investor Peter Ullrich in January 2012. The final agreement has not been signed, and the material terms are not final. It is anticipated that the final loan will be at 10% simple interest and conversion rights into its common stock at an exercise price of $1.00 per share. Between January 2012 and September 2012, the company has received $1,325,000 from the investor. On January 31, 2013, the company signed the agreement. The note is convertible into common shares at $0.31 per share and no principal or interest payments are due until maturity. The interest rate of 10% annually and will mature on November 30, 2013. The company also issued warrants to purchase up to 1,325,000 common shares at an exercise of $0.31 per share. The warrant expires on January 31, 2018.