Common use of 99% Limitation Clause in Contracts

99% Limitation. Notwithstanding anything contained herein to the contrary, the number of shares of Common Stock issuable by the Borrower and acquirable by the Holder at a price below $0.24 per share pursuant to the terms of this Note, the Security Agreement or any Ancillary Agreement, shall not exceed an aggregate of 19.99% of the total issued and outstanding shares (calculated in accordance with applicable Principal Market rules and regulations) of the Borrower’s Common Stock (subject to appropriate adjustment for stock splits, stock dividends, or other similar recapitalizations affecting the Common Stock) or otherwise violate the Borrower’s obligations under the rules and regulations of the Principal Market (the “Maximum Common Stock Issuance”), unless Stockholder approval shall first be obtained in accordance with Section 13(u) of the Security Agreement. Borrower shall not be obligated to issue such shares of Common Stock in excess of the Maximum Common Stock Issuance unless and until the Borrower obtains the Stockholder Approval in accordance with Section 13(u) of the Security Agreement and applicable Principal Market rules and regulations.

99% Limitation. Notwithstanding anything contained herein to the contrary, the number of shares of Common Stock issuable by the Borrower and acquirable by the Holder at a price below $0.24 per share pursuant to the terms of this Note, the Security Agreement or any Ancillary Agreement, shall not exceed an aggregate of 19.99% of the total issued and outstanding shares (calculated in accordance with applicable Principal Market rules and regulations) shares of the Borrower’s Common Stock (subject to appropriate adjustment for stock splits, stock dividends, or other similar recapitalizations affecting the Common Stock) or otherwise violate the Borrower’s obligations under the rules and regulations of the Principal Market (the “Maximum Common Stock Issuance”), unless Stockholder approval Approval shall first be obtained in accordance with Section 13(u) of the Security Agreement. Borrower shall not be obligated to issue such shares of Common Stock in excess of the Maximum Common Stock Issuance unless and until the Borrower obtains the Stockholder Approval at its next annual meeting of stockholders in accordance with Section 13(u) of the Security Agreement and applicable Principal Market rules and regulations.