Common use of Increases to Reserved Amount Clause in Contracts

Increases to Reserved Amount. If the Reserved Amount for any three (3) consecutive trading days (the last of such three (3) trading days being the "AUTHORIZATION TRIGGER DATE") shall (i) during the period beginning on the Closing Date and ending on that date which is one hundred fifty (150) days after the Closing Date be less than 100% of the number of shares of Common Stock issuable upon conversion of the Series H Preferred Stock on such trading days, or (ii) on or after that date which is one hundred fifty one (151) days after the Closing Date, be less than 135% of the number of shares of Common Stock issuable upon conversion of the Series H Preferred Stock on such trading days, the Corporation shall immediately notify the holders of Series H Preferred Stock of such occurrence and shall take immediate action (including seeking shareholder approval to authorize the issuance of additional shares of Common Stock) to increase the Reserved Amount to 150% of the number of shares of Common Stock into which the Series H Preferred Stock are then convertible. In the event the Corporation fails to so increase the Reserved Amount within ninety (90) days after an Authorization Trigger Date, each holder of Series H Preferred Stock shall thereafter have the option, exercisable in whole or in part at any time and from time to time by delivery of a Redemption Notice (as defined in Article VIII.D) to the Corporation, to require the Corporation to purchase for cash, at an amount per share equal to the Redemption Amount (as defined in Article VIII.C), a portion of the holder's Series H Preferred Stock such that, after giving effect to such purchase, the holder's allocated portion of the Reserved Amount exceeds 135% of the total number of shares of Common Stock issuable to such holder upon conversion of its Series H Preferred Stock. If the Corporation fails to redeem any of such shares within five (5) business days after its receipt of a Redemption Notice, then such holder shall be entitled to the remedies provided in Article VIII.D.

Appears in 1 contract

Sources: Securities Purchase Agreement (Palomar Medical Technologies Inc)

Increases to Reserved Amount. If the Reserved Amount for any three (3) five consecutive trading days (the last of such three (3) five trading days being the "AUTHORIZATION TRIGGER DATEAuthorization Trigger Date") shall (i) during the period beginning on the Closing Date and ending on that date which is one hundred fifty (150) days after the Closing Date be less than one hundred percent (100% %) of the number of shares of Common Stock Shares issuable upon full conversion of the Series H Preferred Stock on such trading days, or (ii) on or after that date which is one hundred fifty one (151) days after the Closing Date, be less than 135% of the number of then outstanding shares of Common Stock issuable upon conversion of the Series H "A" Preferred Stock on such trading daysShare, the Corporation shall immediately notify the holders of Series H "A" Preferred Stock Share of such occurrence and shall take immediate action (including including, if necessary, seeking shareholder stockholder approval to authorize the issuance of additional shares of Common StockShares) to increase the Reserved Amount to 150% one hundred percent (100%) of the number of shares Common Shares then issuable upon full conversion (including any Dividend payable thereon) of Common Stock into which all of the outstanding Series H "A" Preferred Stock are Share at the then convertiblecurrent Conversion Price. In the event the Corporation fails to so increase the Reserved Amount within ninety one hundred twenty (90120) days after an Authorization Trigger Date, each holder of Series H "A" Preferred Stock Shares shall thereafter have the option, exercisable in whole or in part at any time and from time to time time, by delivery of a Redemption Notice (as defined in Article VIII.D) to the Corporation, to require the Corporation to purchase redeem for cash, at an amount per share equal to the Redemption Amount (as defined set out in Article VIII.CSection 9(d) hereof), a portion number of the holder's shares of Series H "A" Preferred Stock Share such that, after giving effect to such purchaseredemption, the then unissued portion of such holder's allocated portion of the Reserved Amount exceeds 135% is at least equal to one hundred percent (100%) of the total number of Common Shares issuable upon conversion (including any Dividend payable thereon) of such holder's shares of Common Stock issuable to such holder upon conversion of its Series H Preferred Stock. If the Corporation fails to redeem any of such shares within five (5) business days after its receipt of a Redemption Notice, then such holder shall be entitled to the remedies provided in Article VIII.D."A"

Appears in 1 contract

Sources: Convertible Promissory Note Purchase Agreement (Platinum Research Organization, Inc.)