Common use of Payment of Interest in Cash or Shares Clause in Contracts

Payment of Interest in Cash or Shares. The Company shall pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this Note at the rate of 12% per annum, payable quarterly on January 1, April 1, July 1 and October 1, beginning on the first such date after the Original Issue Date, on each Conversion Date (as to that principal amount then being converted), on each Optional Redemption Date (as to that principal amount then being redeemed) and on the Maturity Date (each such date, an “Interest Payment Date”) (if any Interest Payment Date is not a Business Day, then the applicable payment shall be due on the next succeeding Business Day), in cash or, at the Company’s option, in duly authorized, validly issued, fully paid and non-assessable shares of Common Stock at the Conversion Price (the dollar amount to be paid in shares, the “Interest Share Amount”) or a combination thereof; provided, however, that payment in shares of Common Stock may only occur if (i) all of the Equity Conditions have been met (unless waived by the Holder in writing) during the seven (7) Trading Days immediately prior to the applicable Interest Payment Date (the “Interest Notice Period”) and through and including the date such shares of Common Stock are actually issued to the Holder and (ii) the Company shall have given the Holder notice in accordance with the notice requirements set forth below (the “Interest Conversion Shares”). The Company further agrees to advance the first interest payment that would be due and payable to the Holder after the Original Issue Date (the “Interest Payment Advance”). The Interest Payment Advance will be deducted and paid to the Holder on the Closing Date. Upon the occurrence of an Event of Default and continuing until such Event of Default is cured or remedied, the Company shall pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this Note at the rate of twenty percent (20%) per annum and any payment of interest that is due and payable in accordance with this Note shall only be payable by the Company in cash.

Payment of Interest in Cash or Shares. The Company shall pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this Note Debenture at the rate of 12% per annumApplicable Interest Rate, payable quarterly on January 1, April 1, July 1 and October 1, beginning on monthly in arrears as of the first such date after the Original Issue Date, on last Trading Day of each Conversion Date (as to that principal amount then being converted), on each Optional Redemption Date (as to that principal amount then being redeemed) calendar month and on the Maturity Date (each such date, an “Interest Payment Date”) (if any Interest Payment Date is not a Business Day, then the applicable payment shall be due on the next succeeding Business Day), in cash or, at the Company’s option, in duly authorized, validly issued, fully paid and non-assessable shares of Common Stock at the Conversion Stock Payment Price for the applicable Interest Payment Date (the dollar amount to be paid in shares, the “Interest Share Amount”) or a combination thereof; providedthereof (such amount to be paid in cash and such amount to be paid in shares of Common Stock to be specifically enumerated as provided herein). In addition, howeveron the Maturity Date (or such earlier date that the principal amount of this Debenture is paid in full by acceleration or otherwise) a fixed amount, that which shall be deemed additional interest hereunder, equal to $765,900 shall be due and payable to the Holder on such date in cash, shares of Common Stock or a combination thereof as provided in this Section 2 with respect to regular interest payments (the “Special Interest Payment”). Notwithstanding anything contained herein to the contrary, any payment of interest in shares of Common Stock may only occur if (i) all of the Equity Conditions have been met (unless waived by the Holder in writing) during the seven five (75) Trading Days immediately prior to the applicable Interest Payment Date (the “Interest Notice Period”) and through and including the date such shares of Common Stock are actually issued to the Holder and Holder, (ii) the Company shall have given the Holder notice in accordance with the notice requirements set forth below below, and (iii) as to such Interest Payment Date, prior to such Interest Notice Period (but not more than two (2) Trading Days prior to the commencement of such Interest Notice Period), the Company shall have delivered to the Holder’s account with DTC a number of shares of Common Stock to be applied against such Interest Share Amount equal to the quotient of (x) the applicable Interest Share Amount divided by (y) the Stock Payment Price assuming for such purposes that the Interest Payment Date is the Trading Day immediately prior to the commencement of the Interest Notice Period (the “Interest Conversion Advance Shares”). The Company further agrees to advance In the first interest payment event that the Interest Advance Shares in respect of any Interest Share Amount would be due and payable to exceed the Holder after the Original Issue Date (the “Interest Payment Advance”). The Interest Payment Advance will be deducted and paid to the Holder on the Closing Date. Upon the occurrence of an Event of Default and continuing until such Event of Default is cured or remediedDollar Volume Limitation, then the Company shall pay interest to the Holder on portion of the aggregate unconverted and then outstanding principal amount Interest Advance Shares that would be in excess of this Note at the rate of twenty percent (20%) per annum and any payment of interest that is due and payable in accordance with this Note shall only be payable by the Company Dollar Volume Limitation in cash.

Payment of Interest in Cash or Shares. The Company shall pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this Note at the rate of 12% per annum, payable quarterly on January 1, April 1, July 1 and October 1, beginning on the first such date after the Original Issue Date, on each Conversion Date (as to that principal amount then being converted), on each Optional Redemption Date (as to that principal amount then being redeemed) and on the Maturity Date (each such date, an “Interest Payment Date”) (if any Interest Payment Date is not a Business Day, then the applicable payment shall be due on the next succeeding Business Day), in cash or, at the Company’s option, in duly authorized, validly issued, fully paid and non-assessable shares of Common Stock at the Conversion Price (the dollar amount to be paid in shares, the “Interest Share Amount”) or a combination thereof; provided, however, that payment in shares of Common Stock may only occur if (i) all of the Equity Conditions have been met (unless waived by the Holder in writing) during the seven (7) 7 Trading Days immediately prior to the applicable Interest Payment Date (the “Interest Notice Period”) and through and including the date such shares of Common Stock are actually issued to the Holder and (ii) the Company shall have given the Holder notice in accordance with the notice requirements set forth below (the “Interest Conversion Shares”). The Company further agrees to advance the first interest payment that would be due and payable to the Holder after the Original Issue Date (the “Interest Payment Advance”). The Interest Payment Advance will be deducted and paid to the Holder on the Closing Date. Upon the occurrence of an Event of Default and continuing until such Event of Default is cured or remedied, the Company shall pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this Note at the rate of twenty percent (20%) per annum and any payment of interest that is due and payable in accordance with this Note shall only be payable by the Company in cash.