Exercise Default Payments Sample Clauses
The Exercise Default Payments clause establishes the obligations and procedures for payments that become due when a party fails to properly exercise its rights or fulfill its payment responsibilities under an agreement. Typically, this clause outlines the types of payments required in the event of a default, such as late fees, interest on overdue amounts, or accelerated payment of outstanding balances. By specifying these payment consequences, the clause incentivizes timely compliance and provides a clear mechanism for compensating the non-defaulting party, thereby reducing uncertainty and mitigating financial risk associated with defaults.
Exercise Default Payments. If, at any time, (x) Holder submits a Notice of Exercise and the Corporation fails for any reason (other than because such issuance would exceed Holder's allocated portion of the Reserved Amount or Cap Amount, for which failures Holder shall have the remedies set forth in Articles III and V, respectively) to deliver, on or prior to the fourth business day following the expiration of the Delivery Period for such exercise, such number of freely tradeable shares of Common Stock to which Holder is entitled upon such exercise, or (y) the Corporation provides notice to any holder of Prepaid Warrants (together with all other holders of Prepaid Warrants and the Holder referred to herein, the "Holders") at any time of its intention not to issue freely tradeable shares of Common Stock upon the exercise by any Holder of a Prepaid Warrant in accordance with the terms of the Prepaid Warrants (other than because such issuance would exceed such Holder's allocated portion of the Reserved Amount or Cap Amount) (each of (x) and (y) being an "Exercise Default"), then the Corporation shall pay to Holder, in the case of an Exercise Default described in clause (x) above, and to all Holders, in the case of a Exercise Default described in clause (y) above, an amount equal to: