Increases to Reserved Amount Clause Samples
The "Increases to Reserved Amount" clause establishes the conditions under which the amount of funds or assets set aside (the reserved amount) may be increased during the term of an agreement. Typically, this clause outlines the triggers for such increases, such as changes in risk assessment, regulatory requirements, or the occurrence of specific events that may impact the parties' obligations. For example, if a party's financial condition deteriorates or if there is a significant change in market conditions, the reserved amount may be adjusted upward to provide additional security. The core function of this clause is to protect the interests of one or both parties by ensuring that sufficient resources are available to cover potential liabilities or obligations as circumstances evolve.
Increases to Reserved Amount. Without limiting any other provision of this Section 1.6, if at any time prior to the Nine Month Anniversary Date the Company is notified by a Holder that the Reserved Amount, based upon the average of the 5 lowest Five Day Average Prices (as defined below) during any 30 consecutive trading days prior to the providing of such notice shall be less than One Hundred Fifty percent (150%) of the number of shares of Common Stock that would be issuable to such Holder if the date of such notice by the Holder were a Reset Date and the Class II Warrant was exercised in full on such date (without regard to the conversion limitations contained herein, and including shares of Common Stock issuable upon exercise of the Class II Warrant with respect to additional Units in connection with such Reset Date) (a "Share Reservation Failure"), the Company shall within five (5) business days notify all Holders of such occurrence and shall take action as soon as possible, but in any event within five (5) days after such Holder's notice if such action can be accomplished by the Board of Directors and within 120 days of such Holder's notice if such action requires the approval of the Company's shareholders, to increase the Reserved Amount for each Holder to Two Hundred percent (200%) of the number of shares of Common Stock then issuable to such Holder if the date of such notice by the Holder were a Reset Date (without regard to the conversion limitations contained herein, and including shares of Common Stock issuable upon exercise of the Class II Warrant with respect to additional Units in connection with such Reset Date). Any notice with respect to a particular Share Reservation Failure by a Holder shall be given within ten (10) business days of such particular Share Reservation Failure. For purposes hereof, "Five Day Average Price" means the average Closing Bid Price for the 5 trading days ending on the date in question.
Increases to Reserved Amount. If the Reserved Amount for any three (3) consecutive trading days (the last of such three (3) trading days being the "AUTHORIZATION TRIGGER DATE") shall be less than 175% of the number of shares of Common Stock issuable upon conversion of this Debenture on such trading days, the Corporation shall immediately notify Holder of such occurrence and shall take immediate action (including, if necessary, seeking shareholder approval to authorize the issuance of additional shares of Common Stock) to increase the Reserved Amount to 200% of the number of shares of Common Stock then issuable upon conversion of this Debenture. In the event the Corporation fails to so increase the Reserved Amount within ninety (90) days after an Authorization Trigger Date, Holder shall thereafter have the option, exercisable in whole or in part at any time and from time to time by delivery of a Default Notice (as defined in Article VIII.C) to the Corporation, to require the Corporation to prepay for cash, at the Default Amount (as defined in Article VIII.B), a portion of the principal amount of this Debenture (plus accrued interest thereon) such that, after giving effect to such prepayment, the Reserved Amount exceeds 175% of the total number of shares of Common Stock issuable to Holder upon conversion of this Debenture on the date of the Default Notice. If the Corporation fails to pay such Default Amount within five (5) business days after its receipt of a Default Notice, then Holder shall be entitled to the remedies provided in Article VIII.C.
Increases to Reserved Amount. During the period that the Corporation’s Common Stock is not listed on any National Securities Exchange in the United States or abroad or the OTC Bulletin Board, the Corporation shall, twice annually, review the Reserved Amount for any stock splits, or adjustments on the Series B Preferred Stock, or similar situations to determine whether the Reserved Amount needs to be increased.
Increases to Reserved Amount. If the Reserved Amount for any three (3) consecutive trading days (the last of such three (3) trading days being the "AUTHORIZATION TRIGGER DATE") shall (i) during the period beginning on the Closing Date and ending on that date which is one hundred fifty (150) days after the Closing Date be less than 100% of the number of shares of Common Stock issuable upon conversion of the Series H Preferred Stock on such trading days, or (ii) on or after that date which is one hundred fifty one (151) days after the Closing Date, be less than 135% of the number of shares of Common Stock issuable upon conversion of the Series H Preferred Stock on such trading days, the Corporation shall immediately notify the holders of Series H Preferred Stock of such occurrence and shall take immediate action (including seeking shareholder approval to authorize the issuance of additional shares of Common Stock) to increase the Reserved Amount to 150% of the number of shares of Common Stock into which the Series H Preferred Stock are then convertible. In the event the Corporation fails to so increase the Reserved Amount within ninety (90) days after an Authorization Trigger Date, each holder of Series H Preferred Stock shall thereafter have the option, exercisable in whole or in part at any time and from time to time by delivery of a Redemption Notice (as defined in Article VIII.D) to the Corporation, to require the Corporation to purchase for cash, at an amount per share equal to the Redemption Amount (as defined in Article VIII.C), a portion of the holder's Series H Preferred Stock such that, after giving effect to such purchase, the holder's allocated portion of the Reserved Amount exceeds 135% of the total number of shares of Common Stock issuable to such holder upon conversion of its Series H Preferred Stock. If the Corporation fails to redeem any of such shares within five (5) business days after its receipt of a Redemption Notice, then such holder shall be entitled to the remedies provided in Article VIII.D.
Increases to Reserved Amount. If the Reserved Amount for any three consecutive trading days (the last of such three trading days being the “Authorization Trigger Date”) shall be less than one hundred percent (100%) of the number of shares of Common Stock issuable upon full conversion of the then outstanding shares of Series B Preferred Stock, the Corporation shall immediately notify the holders of Series B Preferred Stock of such occurrence and shall take immediate action (including, if necessary, seeking stockholder approval to authorize the issuance of additional shares of Common Stock) to increase the Reserved Amount to one hundred percent (100%) of the number of shares of Common Stock then issuable upon full conversion of all of the outstanding Series B Preferred Stock at the then current Conversion Price.
Increases to Reserved Amount. If, at any time after the date hereof, the Reserved Amount for any three (3) consecutive trading days (the last of such three (3) trading days being the "AUTHORIZATION TRIGGER DATE") shall be less than 135% of the number of shares of Common Stock issuable upon the full exercise of all Prepaid Warrants issued or issuable pursuant to the Securities Purchase Agreement, the Corporation shall immediately notify the holders of Prepaid Warrants of
Increases to Reserved Amount. Without limiting any other provision of this Section 6, if the Reserved Amount for any three (3) consecutive trading days (the last of such three (3) trading days being the "Reservation Trigger Date") shall be less than two hundred percent (200%) of the number of shares of Common Stock issuable upon conversion of the Preferred Shares and Warrant Shares issuable upon exercise of the related Warrants on such trading days (a "Share Authorization Failure"), the Company shall immediately notify all Holders of such occurrence and shall take action as soon as possible, but in any event within thirty (30) days after a Reservation Trigger Date (including, if necessary, seeking shareholder approval to authorize the issuance of additional shares of Common Stock) to increase the Reserved Amount to two hundred percent (200%) of the number of shares of Common Stock then issuable upon conversion of the Preferred Shares.
Increases to Reserved Amount. If the Reserved Amount for any three ----------------------------