Common use of Dilution Fee Clause in Contracts

Dilution Fee. In the event that, during the term of the Warrants, the Company pays any cash dividend or makes any cash distribution to any holder of any class of its Capital Stock with respect to such Capital Stock, each Holder of the Warrants will be entitled to receive in respect of its Warrant a dilution fee in cash (the "Dilution Fee") on the date of payment of such dividend or distribution, which Dilution Fee will be equal to the difference between (a) the highest amount per share paid to any class of Capital Stock times the number of Issued Warrant Shares then owned by such Holder plus the number of Issuable Warrant Shares then owned by such Holder, and (b) the amount of such dividend or distribution otherwise paid to such Holder as a result of its ownership of Common Stock. This provision shall not apply to the payment of cash dividends on the Series B Preferred Stock.

Dilution Fee. In the event that, during the term of the Warrants, the Company pays any cash dividend or makes any cash distribution to any holder of any class of its Capital Stock with respect to such Capital Stock, each Holder of the Warrants will be entitled to receive in respect of its Warrant a dilution fee in cash (the "Dilution Fee") on the date of payment of such dividend or distribution, which Dilution Fee will be equal to the difference between (a) the highest amount per share paid to any class of Capital Stock times the number of Issued Warrant Shares then owned by such Holder plus the number of Issuable Warrant Shares then owned by such Holder, and (b) the amount of such dividend or distribution otherwise paid to such Holder as a result of its ownership of Common Stock. This provision shall not apply to the payment of cash dividends on the Series B Preferred Stock.

Dilution Fee. In the event that, during the term of the Warrants, the Company pays any cash dividend or makes any cash distribution to any holder of any class of its Capital Stock with respect to such Capital Stock, other than a distribution pursuant to Section 2 or Section 3 of the Certificate of Designations, each Holder of the Warrants will be entitled to receive in respect of its Warrant Warrants a dilution fee in cash (the "“Dilution Fee"”) on the date of payment of such dividend or distribution, which Dilution Fee will be equal to the difference between (a) the highest amount per share paid to any class of Capital Stock times the number of Issued Warrant Shares then owned by such Holder plus the number of Issuable Warrant Shares then owned by such Holder, and (b) less the amount of such dividend or distribution otherwise paid to such Holder as a result of its ownership of Common Stock. This provision shall not apply to the payment of cash dividends on the Series B Preferred such Capital Stock.