Common use of Compensation for Buy Clause in Contracts

Compensation for Buy. In on Failure to Timely Deliver Certificates Upon Exercise. In addition to any other rights available to the holder, if the Company fails for any reason to deliver to the holder such certificate or certificates pursuant to Section 1 by the third (3rd) business day after exercise, and if after such third (3rd) business day after exercise the holder is required by its brokerage firm to purchase (in an open market transaction or otherwise) Common Stock to deliver in satisfaction of a sale by such holder of Common Stock which the holder anticipated receiving upon such exercise (a "Buy-In"), then the Company shall (a) pay in cash to the holder (in addition to any remedies available to or elected by the holder) the amount by which (i) the holder's total purchase price (including brokerage commissions, if any) for the Common Stock so purchased exceeds (ii) the product of (A) the aggregate number of shares of Common Stock that such holder anticipated receiving from the exercise at issue multiplied by (B) the actual sale price of the Common Stock at the time of the sale (including brokerage commissions, if any) giving rise to such purchase obligation and (b) at the option of the holder, either reissue an identical Warrant to purchase such number of shares of Common Stock equal to the attempted exercise or deliver to the holder the number of shares of Common Stock that would have been issued had the Company timely complied with its delivery requirements under Section 1. The Holder shall provide the Company written notice indicating the amounts payable to the holder in respect of the Buy-In.