Common use of ADDITIONAL PENALTIES Clause in Contracts

ADDITIONAL PENALTIES. After the initial filing of the Registration Statement, if the Company fails to respond to any comments issued by the Commission within two weeks of receipt of such comments (the "Response Date"), then the Company shall pay to the Subscriber a penalty of 2% of the Registrable Securities (the "Periodic Penalty Shares"), for each additional two week period beyond the Response Date that the Company fails to respond to such comments. The Periodic Penalty Shares may be paid in cash or shares of Common Stock, at Subscriber's option, with the cash calculated at the rate of $1.75 per share. Notwithstanding the foregoing, the amounts payable by the Company pursuant to this provision shall not be payable to the extent any delay in the responding to comments occurs because of an act of, or a failure to act, or a failure to act timely by the Subscriber or its counsel.