Common use of Payment by the Company Clause in Contracts

Payment by the Company. If the Registration Statement covering the Registrable Securities required to be filed by the Company pursuant to Section 2(a) hereof is not declared effective by November 3, 1997 (the "Initial Date"), then the Company will make payments to the Initial Investor in such amounts and at such times as shall be determined pursuant to this Section 2(c). The amount to be paid by the Company to the Initial Investor shall be determined as of each Computation Date, as defined below in this Section 2(c), and such amount shall be equal to two (2%) percent of the purchase price paid by the Initial Investor for the Debenture pursuant to the Subscription Agreement for the period from the Initial Date to the first Computation Date, and two (2%) percent of the purchase price for each Computation Date thereafter, to the date the Registration Statement is declared effective by the SEC (the "Periodic Amount"). The full Periodic Amount shall be paid by the Company in immediately available funds within five business days after each Computation Date. Notwithstanding the foregoing, the amounts payable by the Company pursuant to this provision shall not be payable to the extent any delay in the effectiveness of the Registration Statement occurs because of an act of, or a failure to act or to act timely by the Initial Investor or its counsel. As used in this Section 2(c), the following terms shall have the following meanings:

Payment by the Company. If the Registration Statement covering the Registrable Securities required to be filed by the Company pursuant to Section 2(a) hereof is not declared effective by November 3February 20, 1997 1998, (the "Initial Date"), then the Company will make payments to the Initial Investor in such amounts and at such times as shall be determined pursuant to this Section 2(c). The amount to be paid by the Company to the Initial Investor shall be determined as of each Computation Date, as defined below in this Section 2(c), and such amount shall be equal to two (2%) percent of the purchase price paid by the Initial Investor for the Debenture pursuant to the Subscription Agreement for the period from the Initial Date to the first Computation Date, and two (2%) percent of the purchase price for each Computation Date thereafter, to the date the Registration Statement is declared effective by the SEC (the "Periodic Amount"). The full Periodic Amount shall be paid by the Company in immediately available funds within five business days after each Computation Date. Notwithstanding the foregoing, the amounts payable by the Company pursuant to this provision shall not be payable to the extent any delay in the effectiveness of the Registration Statement occurs because of an act of, or a failure to act or to act timely by the Initial Investor or its counsel. As used in this Section 2(c), The above damages shall continue until the following terms obligation is fulfilled and shall have the following meanings:be paid within 5