Common use of Increase in Authorized Shares Clause in Contracts

Increase in Authorized Shares. The Company hereby agrees that it will (a) file an information statement with the SEC with respect to the increase in its authorized shares described in Section 4.4 hereof within ten (10) business days after the Initial Closing; (b) mail such information statement to its stockholders five (5) days after clearance by the SEC; (c) file an amendment to its certificate of incorporation effecting such increase twenty (20) days after the date of such mailing; and (d) immediately thereafter reserve for issuance a sufficient number of shares to provide for conversion of the Notes pursuant to Section 6 thereof (assuming a lowest possible conversion price of $.05 per share).