Common use of Additional Offering Clause in Contracts

Additional Offering. Provided an Event of Default (as defined in the Note) or an event which with the passage of time or the giving of notice could become an Event of Default has not occurred, then commencing ninety (90) days after the Actual Effective Date and ending ninety (90) days thereafter, the Company may offer and sell additional Notes, in the maximum principal amount of $3,000,000 and Warrants (“Additional Offering”) on the same terms and conditions as the Offering. Such other subscribers may be granted the same rights as granted to the Subscribers hereunder and pursuant to the Transaction Documents. Amounts payable on the Notes and other amounts due to the subscribers pursuant to the Additional Offering, corresponding to such sums payable to the Subscribers shall become part of the Obligations (as defined in the Security Agreement). Such other subscribers may share with the Subscribers hereunder, pari passu, the rights of the Subscribers under the Transaction Documents. No further Additional Offering will be permitted pursuant to the terms of the Additional Offering.