Common use of Accrual of Conversion Rights Clause in Contracts

Accrual of Conversion Rights. The Conversion Period shall commence 3 calendar months after the date of issuance, or (if earlier) the date that a Registration Statement covering resale of the underlying shares of Common Stock has been declared effective by the Securities and Exchange Commission, and shall continue thereafter for the life of the issue. Each holder of record of 6% Preferred shares on the date of commencement of the Conversion Period (an "Original Holder") shall be entitled to convert in any calendar month the following percentage of the 6% Preferred shares held by such holder on the date of commencement of the Conversion Period, on a cumulative basis following commencement of the Conversion Period. The percentage for each calendar month will be determined based on the highest of the daily low trading prices of the Common Stock during such month, as follows: Highest of daily low trading Percentage convertible prices during month during such month $3.00 or less 20.0% $3.01 to $3.50 25.0% $3.51 to $4.00 30.0% $4.01 to $4.50 35.0% $4.51 to $5.00 40.0% $5.01 to $5.50 45.0% $5.51 or more 50.0% The number of shares which may be converted in any calendar month shall include the number of shares which might have been but were not converted during earlier calendar months. In the case of transfers of shares by an Original Holder the Corporation shall make such notations on its stock ownership records and on the certificates for shares issued upon transfer so as to reflect the portion (if any) of the transferred shares which have become convertible pursuant to this provision, or the Corporation may at its election issue certificates representing the 6% Preferred shares in such form, or with such annotations, as to reflect the time or times at which the shares represented by such certificates will become convertible.

Accrual of Conversion Rights. The Conversion Period shall commence 3 calendar months after the date of issuance, or (if earlier) the date that a Registration Statement covering resale of the underlying shares of Common Stock has been declared effective by the Securities and Exchange Commission, and shall continue thereafter for the life of the issue. Each holder of record of 6% Series A Preferred shares on the date of commencement of the Conversion Period (an "Original Holder") shall be entitled to convert in any calendar month the following percentage of the 6% Series A Preferred shares held by such holder on the date of commencement of the Conversion Period, on a cumulative basis following commencement of the Conversion Period. The percentage for each calendar month will be determined based on the highest of the daily low trading prices of the Common Stock during such month, as follows: Highest of daily low trading Percentage convertible prices during month during such month ---------------------------- ---------------------- $3.00 or 7.00 to less 20.0% $3.01 7.01 to $3.50 7.50 25.0% $3.51 7.51 to $4.00 8.00 30.0% $4.01 8.01 to $4.50 8.50 35.0% $4.51 8.51 to $5.00 9.00 40.0% $5.01 9.01 to $5.50 9.50 45.0% $5.51 9.51 or more 50.0% The number of shares which may be converted in any calendar month shall include be the number of shares determined as above provided plus the number which might have been but were not converted during earlier calendar months. In the case of transfers of shares by an Original Holder the Corporation shall make such notations on its stock ownership records and on the certificates for shares issued upon transfer so as to reflect the portion (if any) of the transferred shares which have become convertible pursuant to this provision, or the Corporation may at its election issue certificates representing the 6% Series A Preferred shares in such form, or with such annotations, as to reflect the time or times at which the shares represented by such certificates will become convertible.