Common use of Conversion Default Payments Clause in Contracts

Conversion Default Payments. If, at any time, (x) the Holder submits a Notice of Optional Conversion and the Corporation fails for any reason to deliver, on or prior to the first trading day following the expiration of the Delivery Period for such conversion, the shares of Common Stock to which the Holder is entitled upon such conversion in the manner required hereunder and under the Purchase Agreement, or (y) the Corporation provides notice to any holder of the Debentures at any time of its intention not to issue shares of Common Stock upon exercise by any holder of its conversion rights in accordance with the terms of the Debentures (each of (x) and (y) being a "CONVERSION DEFAULT"), then the Corporation shall pay to the Holder payments for the first ten (10) trading days following the expiration of the Delivery Period, in the case of a Conversion Default described in clause (x), and for the first ten (10) trading days of any other Conversion Default, an amount equal to $1,000 per day. In the event any Conversion Default continues beyond such ten (10) trading day period, the Holder shall be entitled to interest on the Outstanding Amount at a rate per annum equal to the lower of twenty-four percent (24%) and the highest rate permitted by applicable law from the expiration of the ten (10) trading day period described above through and including the Default Cure Date. In addition, upon the occurrence of any Conversion Default, the Holder may, by written notice to the Corporation, elect to revoke any Optional Conversion and obtain the return of the unconverted Debenture. As used herein, the "DEFAULT CURE DATE" means (i) with respect to a Conversion Default described in clause (x) of its definition, the date the Corporation effects the conversion of the full Outstanding Amount requested to be converted and (ii) with respect to a Conversion Default described in clause (y) of its definition, the date the Corporation begins to honor conversions of the Debentures in accordance with their terms.

Conversion Default Payments. If, at any time, (x) the Holder a holder of shares of Series A Preferred Stock submits a Notice of Optional Conversion and the original certificates representing the Series A Preferred Stock and the stock powers required by paragraph IV(B) and the Corporation fails for any reason (other than because such issuance would exceed such holder's allocated portion of the Reserved Amount or Cap Amount, for which failures the holders shall have the remedies set forth in Articles V and VII) to deliver, on or prior to the first trading second business day following the expiration of the Delivery Period for such conversionconversion (said period of time being the "Extended Delivery Period"), the such number of freely tradeable shares of Common Stock to which the Holder such holder is entitled upon such conversion in the manner required hereunder and under the Purchase Agreementconversion, or (y) the Corporation provides notice (including by way of public announcement) to any holder of the Debentures Series A Preferred Stock at any time of its intention not to issue freely tradeable shares of Common Stock upon exercise by any holder of of' its conversion rights in accordance with the terms of this Certificate of Designation (other than because such issuance would exceed such holder's allocated portion of the Debentures Reserved Amount or Cap Amount) (each of (x) and (y) being a "CONVERSION DEFAULTConversion Default"), then the Corporation shall pay to the Holder affected holder, in the case of a Conversion Default described in clause (x) above, and to all holders, in the case of a Conversion Default described in clause (y) above, payments for the first ten (10) trading business days following the expiration of the Extended Delivery Period, in the case of a Conversion Default described in clause (x), and for the first ten (10) trading business days of any other a Conversion DefaultDefault described in clause (y), an amount equal to $1,000 1000 per dayday for the first ten days. In the event any Conversion Default continues beyond such ten (10) trading business day period, the Holder Corporation shall be entitled pay to interest on the Outstanding Amount at a rate holder an additional amount per annum day equal to the lower of twenty-four percent (24%) and the highest rate permitted by applicable law from the expiration 1% of the ten (10) trading day period described above through and including the Default Cure Date. In addition, upon the occurrence of any Conversion Default, the Holder may, by written notice to the Corporation, elect to revoke any Optional Conversion and obtain the return Face Amount of the unconverted Debenture. As used herein, the "DEFAULT CURE DATE" means (i) Series A Preferred Stock with respect to a which the Conversion Default described in clause (x) of its definition, the date the Corporation effects the conversion of the full Outstanding Amount requested to be converted and (ii) with respect to a Conversion Default described in clause (y) of its definition, the date the Corporation begins to honor conversions of the Debentures in accordance with their termsexists.