Common use of Conversion Premium Clause in Contracts

Conversion Premium. (a) Eco Telecom expressly acknowledges the obligation of any holder of the Preferred Stock to pay, prior to the conversion of such Preferred Stock into Common Stock, an amount in cash equal to the fair market value of the Common Stock into which the Preferred Stock is then convertible, such fair market value to be determined at the time of such conversion (the "CONVERSION PREMIUM") and agrees to be bound by such obligation upon its acquisition of the Preferred Stock. (b) Eco Telecom expressly agrees that (a) Eco Telecom shall pay the Conversion Premium upon the conversion of any or all of the Preferred Stock, and (b) if for any circumstances irrespective of their nature, the Conversion Premium cannot be paid as a "conversion premium", then Eco Telecom shall, on the conversion date, pay to VIP "forgiveness" money (as defined in Article 409 of the Civil Code of the Russian Federation) in cash form, the sum being equal to the fair market value of the Common Stock (determined at the date of conversion) into which such Preferred Stock is then converted.

Conversion Premium. (a) Eco Telecom expressly acknowledges the obligation of any holder of the Preferred Stock to pay, prior to the conversion of such Preferred Stock into Common Stock, an amount in cash equal to the fair market value of the Common Stock into which the Preferred Stock is then convertible, such fair market value to be determined at the time of such conversion (the "CONVERSION PREMIUMConversion Premium") and agrees to be bound by such obligation upon its acquisition of the Preferred Stock. (b) Eco Telecom expressly agrees that (a) Eco Telecom shall pay the Conversion Premium upon the conversion of any or all of the Preferred Stock, and (b) if for any circumstances irrespective of their nature, the Conversion Premium cannot be paid as a "conversion premium", then Eco Telecom shall, on the conversion date, pay to VIP "forgiveness" money (as defined in Article 409 of the Civil Code of the Russian Federation) in cash form, the sum being equal to the fair market value of the Common Stock (determined at the date of conversion) into which such Preferred Stock is then converted.