Common use of Fractional Interests; Effect of Conversion Clause in Contracts

Fractional Interests; Effect of Conversion. In lieu of the Company issuing any fractional securities to the Holder upon any conversion of this Series 2 Note, the Company shall have the option of paying to the Holder an amount equal to the product obtained by multiplying the applicable conversion price by the fraction of the security not issued, but provided such amount is at least equal to ten dollars ($10) and if not, then such amount less than ten dollars ($10) shall not be paid or payable and such fractional security shall be cancelled. Upon conversion of this Series 2 Note in full and the payment of the amount (if any) specified in this paragraph, this Series 2 Note shall be deemed to have been paid in full and the Company shall be deemed to have satisfied all its obligations under or in respect of this Series 2 Note, whether or not the original of this Series 2 Note has been delivered to the Company for cancellation.