Failure of Registration Statement to Become Effective. The Company and the Holders agree that the Holders will suffer damages if the Registration Statement is not declared effective on or prior to the one hundred and twentieth (120th) day following the Closing Date. The Company and the Holders further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if the Registration Statement is not declared effective within one-hundred and fifty (150) days after the Closing Date, the Company shall pay in cash as liquidated damages for such failure and not as a penalty to each Holder an amount equal to (i) two percent (2%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement and (ii) one and one-half percent (1.5%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement for each subsequent thirty (30) day period (which shall be pro rated for such periods less than thirty (30) days) until the Registration Statement is declared effective. Payments to be made pursuant to this Section 7(f) shall be due and payable immediately upon demand in immediately available cash funds. The parties agree that the amounts set forth in this Section 7(f) represent a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount of damages that may be incurred by the Holders if the Registration Statement is not declared effective on or prior to the one hundred and twentieth (120th) day following the Closing Date. Notwithstanding the foregoing, the Company shall remain obligated to cause the Registration Statement to become effective, and the Holder shall have the right to take any action necessary or desirable to enforce such obligation.
Appears in 2 contracts
Samples: Investor Rights Agreement (National Coal Corp), Investor Rights Agreement (National Coal Corp)
Failure of Registration Statement to Become Effective. The Company and the Holders agree that the Holders will suffer damages if the Registration Statement is not declared effective on or prior to the one hundred and twentieth (120th) day following the Closing Date. The Company and the Holders further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if the Registration Statement is not declared effective within one-hundred and fifty (150) days after the Closing Date, the Company shall pay in cash as liquidated damages for such failure and not as a penalty to each Holder an amount equal to (i) two percent (2%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock Notes and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement and (ii) one and one-half percent (1.5%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock Notes and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement for each subsequent thirty (30) day period (which shall be pro rated for such periods less than thirty (30) days) until the Registration Statement is declared effective. Payments to be made pursuant to this Section 7(f) shall be due and payable immediately upon demand in immediately available cash funds. The parties agree that the amounts set forth in this Section 7(f) represent a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount of damages that may be incurred by the Holders if the Registration Statement is not declared effective on or prior to the one hundred and twentieth (120th) day following the Closing Date. Notwithstanding the foregoing, the Company shall remain obligated to cause the Registration Statement to become effective, and the Holder shall have the right to take any action necessary or desirable to enforce such obligation.
Appears in 1 contract
Samples: Note Investor Rights Agreement (National Coal Corp)
Failure of Registration Statement to Become Effective. The Company and the Holders Holder agree that the Holders Holder will suffer damages if the Registration Statement is not declared effective (i) filed with the Commission on or prior to the one hundred and twentieth Required Filing Date, or (120thii) day following declared effective by the Closing Commission on or prior to the Effectiveness Date. The Company and the Holders Holder further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if the Registration Statement is not filed with the Commission on or prior to the Required Filing Date and/or declared effective within one-hundred and fifty (150) days after by the Closing Commission on or prior to the Effectiveness Date, the Company shall pay in cash as liquidated damages for any such failure or breach and not as a penalty (the "Liquidated Damages") to each the Holder an amount equal to (i) two percent (2%) of such Holder's pro rata share of the purchase price of the Common Stock paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding the Holder pursuant to the Purchase Agreement and (ii) one and one-half percent (1.5%) of such Holder's pro rata share of or the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Second Purchase Agreement for each subsequent thirty (30) day period (which shall be pro rated for such periods any period less than thirty (30) days) , following the Required Filing Date until the Registration Statement is filed with the Commission and/or following the Effectiveness Date until the Registration Statement is declared effective. Notwithstanding the foregoing, in no event shall the Company be required to pay aggregate Liquidated Damages under this Section 8(d) in excess of twelve percent (12%) of the purchase price of the Common Stock paid by the Holder pursuant to the Purchase Agreement or the Second Purchase Agreement. Payments to be made pursuant to this Section 7(f8(d) shall be due and payable immediately upon demand in immediately available cash fundscash. The parties agree that the amounts set forth in this Section 7(f) Liquidated Damages represent a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount of damages that may be incurred by the Holders Holder if the Registration Statement is not filed with the Commission on or prior to the Required Filing Date and/or declared effective on or prior to the one hundred and twentieth (120th) day following the Closing Effectiveness Date. Notwithstanding the foregoing, the Company shall remain obligated to cause the Registration Statement to become effective, and the Holder shall have the right to take any action necessary or desirable to enforce such obligation.
Appears in 1 contract
Samples: Registration Rights Agreement (Socket Communications Inc)
Failure of Registration Statement to Become Effective. The Company and the Holders agree that the Holders will suffer damages if the Registration Statement is not declared effective on or prior to the one hundred and twentieth seventy-fifth (120th75th) day following the Closing Filing Date. The Company and the Holders further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if the Registration Statement is not declared effective within oneseventy-hundred and fifty five (15075) days after the Closing Filing Date, the Company shall pay in cash as liquidated damages for such failure and not as a penalty to each Holder an amount equal to (i) two percent (2%) of $150,000, multiplied by such Holder's pro ’s pro-rata share portion of all of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities Warrants purchased and then outstanding pursuant to the Purchase Agreement and (ii) one and one-half percent (1.5%) of $75,000, multiplied by such Holder's pro ’s pro-rata share portion of all of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities Warrants purchased and then outstanding pursuant to the Purchase Agreement for each subsequent thirty (30) day period (which shall be pro rated for such periods less than thirty (30) days) until the Registration Statement is declared effective. Payments to be made pursuant to this Section 7(f) shall be due and payable immediately upon demand in immediately available cash funds. The parties agree that the amounts set forth in this Section 7(f) represent a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount of damages that may will be incurred by the Holders if the Registration Statement is not declared effective on or prior to the one hundred and twentieth seventy-fifth (120th75th) day following the Closing Filing Date. Notwithstanding the foregoing, the Company shall remain obligated to cause the Registration Statement to become effective, and the Holder shall have the right to take any action necessary or desirable to enforce such obligation.
Appears in 1 contract
Samples: Investor Rights Agreement (Transmeridian Exploration Inc)
Failure of Registration Statement to Become Effective. The Company and the Holders agree that the Holders will suffer damages if the Registration Statement is not declared effective on or prior to the one hundred and twentieth seventy-fifth (120th75th) day following the Closing Filing Date. The Company and the Holders further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if the Registration Statement is not declared effective within oneseventy-hundred and fifty five (15075) days after the Closing Filing Date, the Company shall pay in cash as liquidated damages for such failure and not as a penalty to each Holder an amount equal to (i) two percent (2%) of $150,000, multiplied by such Holder's pro ’s pro-rata share portion of all of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities Warrants purchased and then outstanding pursuant to the Purchase Agreement and (ii) one and one-half percent (1.5%) of $75,000, multiplied by such Holder's pro ’s pro-rata share portion of all of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities Warrants purchased and then outstanding pursuant to the Purchase Agreement for each subsequent thirty (30) day period (which shall be pro rated for such periods less than thirty (30) days) until the Registration Statement is declared effective. Payments to be made pursuant to this Section 7(f8(f) shall be due and payable immediately upon demand in immediately available cash funds. The parties agree that the amounts set forth in this Section 7(f8(f) represent a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount of damages that may will be incurred by the Holders if the Registration Statement is not declared effective on or prior to the one hundred and twentieth seventy-fifth (120th75th) day following the Closing Filing Date. Notwithstanding the foregoing, the Company shall remain obligated to cause the Registration Statement to become effective, and the Holder shall have the right to take any action necessary or desirable to enforce such obligation.
Appears in 1 contract
Samples: Investor Rights Agreement (Transmeridian Exploration Inc)
Failure of Registration Statement to Become Effective. The Company and the Holders agree that the Holders will suffer damages if the Registration Statement is not declared effective on or prior to the one hundred and twentieth tenth (120th110th) day following the Initial Closing Date. The Company and the Holders further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if the Registration Statement is not declared effective within one-one hundred and fifty ten (150110) days after the Closing Date, the Company shall pay in cash as liquidated damages for such failure and not as a penalty to each Holder an amount equal to (i) two percent (2%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement Price and (ii) one and one-half two percent (1.52%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement Price for each subsequent thirty (30) day period (which shall be pro rated for such periods less than thirty (30) days) until either (x) the Registration Statement is declared effectiveeffective or (y) the twelfth (12th) month after the Initial Closing Date has ended. Payments to be made pursuant to this Section 7(f) shall be due and payable immediately upon demand in immediately available cash funds. The parties agree that the amounts set forth in this Section 7(f) represent a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount of damages that may be incurred by the Holders if the Registration Statement is not declared effective on or prior to the one hundred and twentieth tenth (120th110th) day following the Initial Closing Date. At any time that amounts continue to accrue pursuant to Section 7(e), such amounts shall be credited against any amounts that simultaneously accrue pursuant to this Section 7(f) such that the Company shall in no event be obligated to make any payments under this Section 7(f) with respect to any period for which it is obligated to pay the Periodic Amount under Section 7(e). Notwithstanding the foregoing, the Company shall remain obligated to cause the Registration Statement to become effective, and the Holder Holders shall have the right to take any action necessary or desirable to enforce such this obligation.
Appears in 1 contract
Failure of Registration Statement to Become Effective. The Company and the Holders agree that the Holders will suffer damages if the a Registration Statement is not declared effective on or prior to the one hundred and twentieth (120th) day following the Closing Effectiveness Date. The Company and the Holders further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if the a Registration Statement is not declared effective within one-hundred and fifty (150) days after on or prior to the Closing Effectiveness Date, the Company shall pay in cash as liquidated damages for such failure and not as a penalty to each Holder an amount equal to (i) two percent (2%) of such Holder's pro rata share ’s Aggregate Share Value upon the occurrence of such failure to be declared effective (the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement “Effectiveness Fixed Amount”) and (ii) one and one-half percent (1.5%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement ’s Aggregate Share Value for each subsequent thirty (30) day period (which shall be pro rated for such periods less than thirty (30) days) until the Registration Statement is declared effectiveeffective (the “Effectiveness Periodic Amount”). Payments to be made pursuant to this Section 7(f8(e) shall be due and payable immediately upon demand in immediately available cash funds. The parties agree that the amounts Effectiveness Fixed Amount and the Effectiveness Periodic Amount set forth in this Section 7(f8(e) represent a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount of damages that may be incurred by the Holders if the a Registration Statement is not declared effective on or prior to the one hundred and twentieth Effectiveness Date. At any time that amounts continue to accrue pursuant to Section 8(d), such amounts shall be credited against any amounts that simultaneously accrue pursuant to this Section 8(e) such that the Company shall in no event be obligated to make any payments under this Section 8(e) with respect to any period for which it is obligated to pay the Periodic Amount under Section 8(d). The Company shall not be required to pay the Periodic Amount or the Effectiveness Periodic Amount if the Company has previously paid any such amounts with respect to a period or periods that equal eight (120th) day following 8) months in the Closing Dateaggregate. Notwithstanding the foregoing, the Company shall remain obligated to cause the Registration Statement to become effective, and the Holder Holders shall have the right to take any action necessary or desirable to enforce such this obligation.
Appears in 1 contract
Samples: Restructuring Registration Rights Agreement (GlobalOptions Group, Inc.)
Failure of Registration Statement to Become Effective. The Company and the Holders agree that the Holders will suffer damages if the Registration Statement is not declared effective on or prior to the one hundred and twentieth tenth (120th110th) day following the Additional Closing Date. The Company and the Holders further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if the Registration Statement is not declared effective within one-one hundred and fifty ten (150110) days after the Additional Closing Date, the Company shall pay in cash as liquidated damages for such failure and not as a penalty to each Holder an amount equal to (i) two percent (2%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement Price and (ii) one and one-half two percent (1.52%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement Price for each subsequent thirty (30) day period (which shall be pro rated for such periods less than thirty (30) days) until either (x) the Registration Statement is declared effectiveeffective or (y) the twelfth (12th) month after the Additional Closing Date has ended. Payments to be made pursuant to this Section 7(f) shall be due and payable immediately upon demand in immediately available cash funds. The parties agree that the amounts set forth in this Section 7(f) represent a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount of damages that may be incurred by the Holders if the Registration Statement is not declared effective on or prior to the one hundred and twentieth tenth (120th110th) day following the Additional Closing Date. At any time that amounts continue to accrue pursuant to Section 7(e), such amounts shall be credited against any amounts that simultaneously accrue pursuant to this Section 7(f) such that the Company shall in no event be obligated to make any payments under this Section 7(f) with respect to any period for which it is obligated to pay the Periodic Amount under Section 7(e). Notwithstanding the foregoing, the Company shall remain obligated to cause the Registration Statement to become effective, and the Holder Holders shall have the right to take any action necessary or desirable to enforce such this obligation.
Appears in 1 contract
Failure of Registration Statement to Become Effective. The Company and the Holders agree that the Holders will suffer damages if the Registration Statement is not declared effective on or prior to the one hundred and twentieth (120th) day following the Closing Date. The Company and the Holders further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if the Registration Statement is not declared effective within one-hundred and fifty twenty (150120) days after the Closing Date, the Company shall pay in cash as liquidated damages for such failure and not as a penalty to each Holder an amount equal to (i) two three percent (23%) of such Holder's pro rata share of the purchase price paid by all Holders Purchase Price for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement and (ii) one and one-half percent (1.5%) of such Holder's pro rata share of the purchase price paid by all Holders Purchase Price for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement for each subsequent thirty (30) day period (which shall be pro rated for such periods less than thirty (30) days) until the Registration Statement is declared effective. Payments to be made pursuant to this Section 7(f8(f) shall be due and payable immediately upon demand in immediately available cash funds. The parties agree that the amounts set forth in this Section 7(f8(f) represent a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount of damages that may will be incurred by the Holders if the Registration Statement is not declared effective on or prior to the one hundred and twentieth ninetieth (120th90th) day following the Closing Date. Notwithstanding the foregoing, the Company shall remain obligated to cause the Registration Statement to become effective, and the Holder shall have the right to take any action necessary or desirable to enforce such obligation.
Appears in 1 contract
Samples: Investor Rights Agreement (Transmeridian Exploration Inc)
Failure of Registration Statement to Become Effective. The Company and the Holders agree that the Holders will suffer damages if the Registration Statement is not declared effective on or prior to the one hundred and twentieth sixty-fifth (120th165th) day following the Closing Date. The Company and the Holders further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if the Registration Statement is not declared effective within one-hundred and fifty sixty-five (150165) days after the Closing Datedate on which the Registration Statement is originally filed with the Commission, the Company shall pay in cash as liquidated damages for such failure and not as a penalty to each Holder an amount equal to (i) two three percent (23%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement Subscription Amount and (ii) one and one-half percent (1.5%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement Subscription Amount for each subsequent thirty (30) day period (which shall be pro rated for such periods less than thirty (30) days) until either (x) the Registration Statement is declared effectiveeffective or (y) the twelfth (12th) month after the Closing Date has ended. Payments to be made pursuant to this Section 7(f) shall be due and payable immediately upon demand in immediately available cash funds. The parties agree that the amounts set forth in this Section 7(f) represent a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount of damages that may be incurred by the Holders if the Registration Statement is not declared effective on or prior to the one hundred and twentieth sixty-fifth (120th165th) day following the Closing Datedate on which the Registration Statement is originally filed with the Commission. At any time that amounts continue to accrue pursuant to Section 7(e), such amounts shall be credited against any amounts that simultaneously accrue pursuant to this Section 7(f) such that the Company shall in no event be obligated to make any payments under this Section 7(f) with respect to any period for which it is obligated to pay the Periodic Amount under Section 7(e). Notwithstanding the foregoing, the Company shall remain obligated to cause the Registration Statement to become effective, and the Holder Holders shall have the right to take any action necessary or desirable to enforce such this obligation.
Appears in 1 contract
Failure of Registration Statement to Become Effective. The Company and the Holders agree that the Holders will suffer damages if the Registration Statement is not declared effective on or prior to the one hundred and twentieth ninetieth (120th90th) day following the Initial Closing Date. The Company and the Holders further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if the Registration Statement is not declared effective within one-hundred and fifty twenty (150120) days after the Closing Datedate on which the Registration Statement is originally filed with the Commission, the Company shall pay in cash as liquidated damages for such failure and not as a penalty to each Holder an amount equal to (i) two one percent (21%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement Subscription Amount and (ii) one and one-half percent (1.51%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement Subscription Amount for each subsequent thirty (30) day period (which shall be pro rated for such periods less than thirty (30) days) until either (x) the Registration Statement is declared effectiveeffective or (y) the twelfth (12th) month after the Initial Closing Date has ended. Payments to be made pursuant to this Section 7(f) shall be due and payable immediately upon demand in immediately available cash funds. The parties agree that the amounts set forth in this Section 7(f) represent a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount of damages that may be incurred by the Holders if the Registration Statement is not declared effective on or prior to the one hundred and twentieth ninetieth (120th90th) day following the Closing Datedate on which the Registration Statement is originally filed with the Commission. At any time that amounts continue to accrue pursuant to Section 7(e), such amounts shall be credited against any amounts that simultaneously accrue pursuant to this Section 7(f) such that the Company shall in no event be obligated to make any payments under this Section 7(f) with respect to any period for which it is obligated to pay the Periodic Amount under Section 7(e). Notwithstanding the foregoing, the Company shall remain obligated to cause the Registration Statement to become effective, and the Holder Holders shall have the right to take any action necessary or desirable to enforce such this obligation.
Appears in 1 contract
Samples: Investor Rights Agreement (Somanta Pharmaceuticals Inc.)
Failure of Registration Statement to Become Effective. The Company and the Holders agree that the Holders will suffer damages if the Registration Statement is not declared effective on or prior to the one hundred and twentieth (120th) day following the Closing Date. The Company and the Holders further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if the Registration Statement is not declared effective within one-hundred and fifty on or before the date that is thirty (15030) days after the Closing DateEffectiveness Deadline (as such Effectiveness Deadline may be delayed pursuant to Section 3(n)), the Company shall pay in cash as liquidated damages for such failure and not as a penalty to each Holder an amount equal to (i) two one percent (21%) of such Holder's pro rata share of the purchase price paid by all Holders such Holder for Preferred Stock the Purchased Shares and other Registrable Securities Warrants purchased and then outstanding pursuant to the Purchase Agreement and (ii) one and one-half percent (1.51%) of such Holder's pro rata share of the purchase price paid by all Holders such Holder for Preferred Stock the Purchased Shares and other Registrable Securities Warrants purchased and then outstanding pursuant to the Purchase Agreement and then held by such Holder for each subsequent thirty (30) day period (which shall be pro rated for such periods less than thirty (30) days) until either (x) the Registration Statement is declared effectiveeffective or (y) the twelfth (12th) month after the Closing Date has ended. Payments to be made pursuant to this Section 7(f) shall be due and payable immediately upon demand in immediately available cash funds, provided that a demand by each holder for payment of such amounts shall not be made more frequently than once every thirty (30) days. The parties agree that the amounts set forth in this Section 7(f) represent a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount of damages that may be incurred by the Holders if the Registration Statement is not declared effective on or prior to the one hundred and twentieth (120th) day following the Closing Date. At any time that amounts continue to accrue pursuant to Section 7(e), such amounts shall be credited against any amounts that simultaneously accrue pursuant to this Section 7(f) such that the Company shall in no event be obligated to make any payments under this Section 7(f) with respect to any period for which it is obligated to pay the Periodic Amount under Section 7(e). Notwithstanding the foregoing, the Company shall remain obligated to cause the Registration Statement to become effective, and the Holder Holders shall have the right to take any action necessary or desirable to enforce such this obligation.
Appears in 1 contract
Samples: Investor Rights Agreement (Spectrum Pharmaceuticals Inc)
Failure of Registration Statement to Become Effective. The Company and the Holders agree that the Holders will suffer damages if the Registration Statement is not declared effective on or prior to the one hundred and twentieth ninetieth (120th90th) day following the Closing Filing Period Start Date. The Company and the Holders further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if if, through no fault of any Holder, the Registration Statement is not declared effective within one-hundred and fifty twenty (150120) days after the Closing Filing Period Start Date, the Company shall pay in cash as liquidated damages for such failure and not as a penalty to each Holder an amount equal to (i) two percent (2%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement and (ii) one and one-half two percent (1.52%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement for each subsequent thirty (30) day period (which shall be pro rated for such periods less than thirty (30) days) until either (x) the Registration Statement is declared effectiveeffective or (y) the twelfth (12th) month after the Closing Date has ended. Payments to be made pursuant to this Section 7(f) shall be due and payable immediately upon demand in immediately available cash funds. The parties agree that the amounts set forth in this Section 7(f) represent a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount of damages that may be incurred by the Holders if the Registration Statement is not declared effective on or prior to the one hundred and twentieth ninetieth (120th90th) day following the Closing Filing Period Start Date. At any time that amounts continue to accrue pursuant to Section 7(e), such amounts shall be credited against any amounts that simultaneously accrue pursuant to this Section 7(f) such that the Company shall in no event be obligated to make any payments under this Section 7(f) with respect to any period for which it is obligated to pay the Periodic Amount under Section 7(e). Notwithstanding the foregoing, the Company shall remain obligated to cause the Registration Statement to become effective, and the Holder Holders shall have the right to take any action necessary or desirable to enforce such this obligation.
Appears in 1 contract
Failure of Registration Statement to Become Effective. The Company and the Holders agree that the Holders will suffer damages if the Registration Statement is not declared effective on or prior to the one hundred and twentieth (120th) day following the Closing Date. The Company and the Holders further agree that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, if the Registration Statement is not declared effective within one-one hundred and fifty twenty (150120) days after the Closing Date, the Company shall pay in cash as liquidated damages for such failure and not as a penalty to each Holder an amount equal to (i) two percent (2%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement ’s Subscription Amount and (ii) one and one-half two percent (1.52%) of such Holder's pro rata share of the purchase price paid by all Holders for Preferred Stock and other Registrable Securities purchased and then outstanding pursuant to the Purchase Agreement ’s Subscription Amount for each subsequent thirty (30) day period (which shall be pro rated for such periods less than thirty (30) days) until the Registration Statement is declared effective, in each case, unless the delay in effectiveness of the Registration Statement during any thirty (30) day period or portion thereof results from the Commission’s comment process with respect to such Registration Statement and the Company has used and continues to use its best efforts to respond and continues to respond promptly and diligently to all of the Commission’s comments on such Registration Statement. Payments to be made pursuant to this Section 7(f) shall be due and payable immediately upon demand in immediately available cash funds. The parties agree that the amounts set forth in this Section 7(f) represent a reasonable estimate on the part of the parties, as of the date of this Agreement, of the amount of damages that may be incurred by the Holders if the Registration Statement is not declared effective on or prior to the one hundred and twentieth (120th) day following the Closing Date. Notwithstanding the foregoing, the Company shall remain obligated to cause the Registration Statement to become effective, and the Holder shall have the right to take any action necessary or desirable to enforce such obligation.Closing
Appears in 1 contract
Samples: Registration Rights Agreement (Inovio Biomedical Corp)