Common use of Placement Agents Fees and Expenses Clause in Contracts

Placement Agents Fees and Expenses. At each Closing, the Company shall pay to the Placement Agent cash commissions equal to 8% of the gross proceeds of the sale of the Securities and a nonaccountable expense allowance equal to 2% of the gross proceeds of the sale of the Securities. The Company shall issue to the Placement Agent the Purchase Option to purchase 10% of the number of shares of Preferred Stock and 10% of the Warrants issued to the Subscribers at such Closing. At the Initial Closing (and if additional fees and expenses are incurred by the Placement Agent then at subsequent Closings as well), the Company also shall reimburse the Placement Agent for the expenses described in Section 5.2 hereof. All the foregoing amounts and any other expenses to be paid pursuant to Section 5.2 are payable at the Placement Agent's direction directly to the parties who are owed same by deduction from the aggregate purchase price of the Securities sold.