Common use of Conversion of Series B Preferred Stock Clause in Contracts

Conversion of Series B Preferred Stock. Borrower will convert all Series B Preferred Stock to registered common shares of the Borrower's stock not later than December 31, 2001. The Borrower will take all necessary action to insure conversion of Series B Preferred stock to registered shares of Borrower's common stock before December 31, 2001. It is agreed that Borrower will increase the total number of common shares due (1,286,400) by 25% if conversion is not effected by March 31, 2002. After that date, penalty and shares will be an additional 15% per month, or fraction thereof, on a cumulative basis, until registered common shares are issued and delivered.