Future Equity Financings. (a) If the Company requires additional capital by way of equity, the Company shall provide written notice to the Stockholders specifying the terms and conditions of the proposed equity issue including the amount of financing to be raised, the type of security to be issued, the price per security to be issued and the target completion date. Each Stockholder shall have the irrevocable right, exercisable by written notice given to the Company within 30 days after the giving of the above notice by the Company, to participate in the equity financing on a pro rata basis (determined by the ratio of the Stockholder's then existing holdings of Shares to the total holdings of all Stockholders on a Fully Diluted basis) on the terms and conditions set forth by the Company. In the event that one or more Stockholders elects to subscribe for his or its pro rata proportion of the proposed equity issue and one or more Stockholders declines to so subscribe, the Stockholder(s) electing to so subscribe shall have the further right and option, exercisable by notice in writing within five days of being notified by the Company that one or more Stockholders has declined to so subscribe, to subscribe for the remaining equity on the same terms and conditions as set forth by the Company in proportion to their respective holdings of Shares (or in such other proportions as they may agree among themselves). The foregoing procedure shall be repeated as often as is necessary until the equity issue is fully subscribed or until there remains equity which no Stockholder has elected to subscribe for. If there remains equity which no Stockholder has elected to subscribe for, the Company may elect to proceed with the equity financing in an amount equal to the amount subscribed for under this Section 9.3 or decline to proceed and to pursue its equity capital requirements through other sources on terms and conditions no more favorable than the terms and conditions specified to the Stockholders. Nothing contained in this Section 9.3 shall affect the requirement that requisite Investors provide written approval to the proposed equity financing in accordance with Section 5.10 of this Agreement.
Future Equity Financings. 28 10.4 Exceptions to Pre-emptive Rights................................ 28 -ii- 4 TABLE OF CONTENTS (CONTINUED) PAGE
Future Equity Financings. Borrower shall pay to Lender fifty percent (50%) of the net proceeds Borrower receives from the sale of any of its Common Stock or preferred stock during the Standstill Period. Any payments made pursuant to this Section 5 will be deemed payments under the Notes (allocated between the Notes at Lxxxxx’s discretion).
Future Equity Financings
