Dividends on Preferred Stock. On December 22, 2000, LHT exercised ---------------------------- its rights under Xxxxxx's Certificate of Determination of Rights, Preferences, Privileges and Restrictions of 8% Series C Convertible Preferred Stock (the "Certificate of Determination") to convert all 300 of its shares of Hawker ----------------------------- Series C Convertible Preferred Stock (the "Preferred Stock") into shares of --------------- Common Stock. In conjunction with the conversion, LHT also received partial accrued dividends on the Preferred Stock. Pursuant to the terms of the Certificate of Determination, upon shareholder approval, LHT has the right to receive the remaining accrued dividends on the Preferred Stock in the form of 35,583 shares of Common Stock. On December 22, 2000, LHT requested that Hawker seek shareholder approval to issue these 35,583 shares of Common Stock. Pursuant to the Certificate of Determination, Hawker must use its best efforts to obtain such shareholder approval not later than sixty (60) days after such request has been made and if such shareholder approval is not obtained within such 60-day period, Hawker shall instead be required to make a cash payment to LHT pursuant to a formula set forth in the Certificate of Determination. Pursuant to the Certificate of Determination, if Hawker fails to make such cash payment in full, interest on any unpaid amount shall accrue at a rate of 18% per year beginning as of December 22, 2000. Xxxxxx hereby agrees that it shall seek the shareholder approval to issue the foregoing 35,583 shares of Common Stock to LHT at the Annual Meeting. Xxxxxx further agrees that if the Annual Meeting does not take place during the 60-day period required Xx. Xxxxx Xxxxxxx Lufthansa Technik AG February 6, 2001 Page 10 for such shareholder approval pursuant to the Certificate of Determination, that LHT shall thereafter, at its option, have the right to receive either (1) a cash payment, in accordance with the terms of the Certificate of Determination or (2) in the event their issuance is approved at the Annual Meeting, the 35,583 shares of Common Stock in accrued dividends.
Dividends on Preferred Stock. Dividends on Preferred Stock includes the allocation of the proceeds received to the warrants issued and beneficial conversion features of our Preferred Stock issued during the respective periods. During 2001, $12.8 million was recorded with the issuance of our Series A Preferred Stock, $1.5 million for the Series B Preferred Stock and $1.9 million for the Series C Preferred Stock. During 2002, $3.2 million was recorded with the issuance of $4.0 million of our Series C Preferred Stock and $6.4 million was recorded with the issuance of our Series D Convertible Preferred Stock. Additionally, stated dividends were accrued from each date of issuance through conversion on the Series A and Series B Preferred Stock. Dividends accrued on the Series A Preferred Stock were paid in-kind with common shares at the time of conversion during 2001. Dividends were accrued on the Series B Preferred stock through conversion on September 30, 2002. The Series C Preferred Stock did not provide for stated dividends. The Series D Convertible Preferred Stock accrues dividends at 8% per annum and increases to 12% on January 1, 2004. COMPARISON OF 2001 TO 2000 Revenues. Our revenues are comprised of revenues for subscriptions to our services, implementation revenues and certain revenues for Web-hosting services. We are no longer providing Web-Hosting services. The following table sets forth for the periods indicated the components of revenue included in our consolidated statements of operations:
Dividends on Preferred Stock. Dividends on Preferred Stock includes the allocation of the proceeds received to the warrants issued and beneficial conversion features of the Series A Preferred Stock of $12.8 million, $1.5 million for the Series B Preferred Stock and $1.9 million for the Series C Preferred Stock. Additionally, dividends of $0.4 million were accrued from each date of issuance through conversion or December 31, 2001. Dividends accrued on the Series A and Series B Preferred Stock were paid in-kind with common shares at the time of conversion during 2001. The Series C Preferred Stock does not provide for stated dividends. We will continue to accrue dividends through the date that that the Series B Preferred Stock is converted into common stock. LIQUIDITY AND CAPITAL RESOURCES Our principal potential sources of liquidity are cash on hand, cash generated from operations and cash provided from financing activities. As of December 31, 2002, we had cash, cash equivalents and short-term investments of $0.6 million. During 2002, we used $9.4 million in operating activities reflecting a net loss of $8.1 million. Cash used in operating activities also reflects: a) $1.8 million of depreciation and amortization; b) $0.7 million of non-cash stock compensation; c) $1.6 million for the non-cash extraordinary gain on extinguishment of debt; d) $0.4 million for the non-cash termination of lease obligation; and e) $1.8 million in cash used in other working capital changes. During 2001, we used $18.3 million in operating activities, comprised principally of a net loss of $24.5 million. Cash used in operating activities also reflects $2.2 million for non-cash stock compensation and interest expense for the conversion feature of the Hewlett-Packard note, $2.1 million of depreciation and amortization, $2.9 million in non-cash extraordinary expense for warrants issued to Hewlett-Packard in connection with the modification of the existing convertible note in April 2000, $2.3 million of non-cash extraordinary gain related to the extinguishment of the convertible note with Hewlett-Packard in November 2001 and a $1.3 million increase in cash provided by other working capital changes. During 2000, we used $26.8 million in operating activities, comprised principally of a net loss of $39.1 million. Cash used in operating activities also reflects $7.2 million for non-cash stock compensation and interest expense for the conversion feature of the Hewlett-Packard note, $2.1 million of depreciation and amort...
Dividends on Preferred Stock. Each individual Principal Shareholder covenants and agrees that he will at no time accept or elect to receive a cash dividend on shares of preferred stock of the Parent held by him on or after the date of this Agreement.
Dividends on Preferred Stock. The method of declaring and paying dividends on the Preferred Stock shall be as set forth in Section 2 of the Certificate of Designations.
Dividends on Preferred Stock. (i) Notwithstanding that the Preferred Stock Amendments shall not yet have been approved by the holders of Common Stock at the Shareholder Meeting, Xxxxxxx agrees that dividends shall accrue and be paid on the Series D Preferred Stock and the Series E Preferred Stock at the reduced rate of 4% (rather than 10%) per annum from the Effective Time through the date of the Amendment Filings (the “Provisional Dividend Period”), and, except as expressly provided in Section 2(e)(iii) below, Xxxxxxx hereby waives all right to receive a full 10% dividend on the Series D Preferred Stock and the Series E Preferred Stock during the Provisional Dividend Period.
Dividends on Preferred Stock. Perry shall make, to the maximum extent permitted thereunder, all dividend payments on the Series B Preferred Stock or the Series C Preferred Stock, as the case may be, through the issuance of additional Series D Preferred Stock rather than in cash.
Dividends on Preferred Stock. Each share of Preferred Stock confers on its holder the right to a fixed cumulative preferential dividend (the “Preferred Dividend”) at an annual rate equal to 8.0% of the aggregate of the Subscription Price and accrued but unpaid dividends on each share of Preferred Stock. Subject to the right of the Directors to declare and pay a Preferred Dividend at any time, the Preferred Dividend shall accrue calendar quarterly in arrears commencing on the expiry of the first calendar quarter after the Issue Date of the relevant Preferred Stock and accruing as from the first day of the next month after the Issue Date rather than as from the Issue Date itself and shall compound annually and shall be paid upon the Repurchase Date in respect of the period from the Issue Date of the relevant Preferred Stock up to and including the Repurchase Date. The right to the Preferred Dividend has priority over the dividend rights of the holders of any other class of shares and no dividend may be declared and paid upon any of the Common Stock or any shares of any other class whilst any Preferred Stock is outstanding and if a dividend is so declared or paid in breach of this restriction, holders of Preferred Stock will participate in such dividend on an as-converted basis.
Dividends on Preferred Stock. Permit any certificate of designation of the Company with respect to Disqualified Stock to provide that dividends shall be paid or accrued unless such dividends are otherwise permitted to be paid or accrued pursuant to this Agreement.
Dividends on Preferred Stock. The Company shall pay a yearly dividend, in cash or Common Stock (with the determination to pay in cash or Common Stock, or a combination of the two, to be made by the Company at its discretion), equal to four percent (4%) of the Valuation Price of each share of Series A Convertible Preferred Stock, payable quarterly within thirty (30) days after the end of each calendar quarter, and such dividend shall be paid prior to the payment of any dividends on the Company’s Common Stock. In the event the Company elects to pay a portion or all of the dividends on the Series A Convertible Preferred Stock by issuing shares of Common Stock, these shares issued as dividends shall be restricted, unregistered shares, and will be subject to the same transfer restrictions that apply to the shares of Series A Convertible Preferred Stock.
