Common use of PIK Note Clause in Contracts

PIK Note. On each Quarterly Payment Date, the Company shall issue a convertible note to the Purchaser substantially in the form as attached to the Purchase Agreement as Exhibit B (each an “PIK Note”) for a principal amount equal to, assuming interest is payable on the outstanding principal amount of this Note, the interest payable on such Quarterly Payment Date as calculated at a rate of 5.00% per annum, compounded on each Quarterly Payment Date and computed on the basis of a 360-day year of twelve 30-day months, provided that (i) the aggregate principal amount of all PIK Note(s) issued prior to such Quarterly Payment Date shall be excluded from the foregoing calculation, and (ii) any portion of the principal amount of this Note which has been converted or which the Company has elected to settle by paying the Cash Alternative Amount or the Cash Settlement Amount prior to such Quarterly Payment Date shall not be deemed outstanding. Notwithstanding the foregoing, the Company will not issue any principal amount less than US$1,000 and will pay cash in lieu of such principal amount.