Failure to Redeem. If the Company shall for any reason fail to redeem any shares of Series A Preferred Stock as required by this Section (e), and such failure shall continue for a period of 30 days, then notwithstanding anything to the contrary contained in this Certificate of Designation, with respect to all shares of Series A Preferred Stock then outstanding: (i) the conversion rights set forth in Section (d) hereof shall continue beyond any date for redemption specified in said Section, and said rights may be exercised at any time; and (ii) the Company may not, other than in the ordinary course of business, incur any indebtedness for money borrowed or borrow or reborrow any amounts under any lines of credit or any other borrowing facility which it may then have outstanding without the prior written consent of the holders of at least a majority of the then outstanding shares of Series A Preferred Stock, unless the proceeds of such incurrence of such indebtedness or borrowing or reborrowing are to be used to make all redemptions then required to be made; and (iii) dividends shall continue to accrue and be paid in accordance with and as defined in Section (a), and, to the extent not paid, shall be added to the Series A Redemption Price. Nothing herein shall limit the Company's obligations to redeem as set forth above, or limit the remedies available to the holders of Series A Preferred Stock in the event of a failure of the Company to honor such obligations.
Appears in 2 contracts
Sources: Series a Preferred Stock Purchase Agreement (Internet Capital Group Inc), Series a Preferred Stock Purchase Agreement (SCP Private Equity Partners Ii Lp)