Common use of Limitation on Acquisition of Common Stock of the Company Clause in Contracts

Limitation on Acquisition of Common Stock of the Company. Notwithstanding anything to the contrary contained in this Agreement, any Related Agreement, any document, instrument or agreement entered into in connection with the transactions contemplated hereby or any document, instrument or agreement entered into in connection with any other transaction entered into by and between the Purchaser and the Company (and/or subsidiaries or affiliates of the Company), the Purchaser shall not acquire stock in the Company (including, without limitation, pursuant to a contract to purchase, by exercising an option or warrant, by converting any other security or instrument, by acquiring or exercising any other right to acquire, shares of stock or other security convertible into shares of stock in the Company, or otherwise, and such options, warrants, conversion or other rights shall not be exercisable) to the extent such stock acquisition would cause any interest (including any original issue discount) payable by the Company to the Purchaser not to qualify as portfolio interest, within the meaning of Section 881(c)(2) of the Internal Revenue Code of 1986, as amended (the "Code") by reason of Section 881(c)(3) of the Code, taking into account the constructive ownership rules under Section 871(h)(3)(C) of the Code (the "Stock Acquisition Limitation"). The Stock Acquisition Limitation shall automatically become null and void without any notice to Company upon the earlier to occur of either (a) Company's delivery to Laurus of a Notice of Redemption or (b) an Event of Default under, and as defined in, the Note, so long as, at the time of the occurrence of an Event of Default, the average closing price of Company's Common Stock as reported by Bloomberg, L.P. on the Principal Market for the immediately preceding five (5) trading days is greater than or equal to 130% of the Fixed Conversion Price at such time.

Appears in 2 contracts

Samples: Securities Purchase Agreement (Rezconnect Technologies Inc), Securities Purchase Agreement (Science Dynamics Corp)

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Limitation on Acquisition of Common Stock of the Company. Notwithstanding anything to the contrary contained in this Agreement, any Related Agreement, any document, instrument or agreement entered into in connection with the transactions contemplated hereby or any document, instrument or agreement entered into in connection with any other transaction entered into by and between the Purchaser and the Company (and/or subsidiaries or affiliates of the Company), the Purchaser shall not acquire stock in the Company (including, without limitation, pursuant to a contract to purchase, by exercising an option or warrant, by converting any other security or instrument, by acquiring or exercising any other right to acquire, shares of stock or other security convertible into shares of stock in the Company, or otherwise, and such options, warrants, conversion or other rights shall not be exercisable) to the extent such stock acquisition would cause any interest (including any original issue discount) payable by the Company to the Purchaser not to qualify as portfolio interest, within the meaning of Section 881(c)(2) of the Internal Revenue Code of 1986Code, as amended (the "Code") by reason of Section 881(c)(3) of the Code, taking into account the constructive ownership rules under Section 871(h)(3)(C) of the Code (the "Stock Acquisition Limitation"). The Stock Acquisition Limitation shall automatically become null and void without any notice to the Company upon the earlier to occur of either (a) the Company's delivery to Laurus the Purchaser of a Notice of Redemption (as defined in the Note) or (b) an Event of Default under, and as defined in, the Note, so long as, at the time of the occurrence of an such Event of Default, the average closing price of Company's Common Stock as reported by Bloomberg, L.P. on the Principal Market for the immediately preceding five (5) trading days is greater than or equal to 130150% of the Fixed Conversion Price (as defined in the Note) at such time.

Appears in 1 contract

Samples: Securities Purchase Agreement (Elec Communications Corp)

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Limitation on Acquisition of Common Stock of the Company. Notwithstanding anything to the contrary contained herein or in this Agreement, any Related Agreement, any document, instrument or agreement entered into in connection with the transactions contemplated hereby or any document, instrument or agreement entered into in connection with any other transaction entered into by and between the Purchaser and the Company (and/or subsidiaries or affiliates of the Company), the Purchaser shall not acquire stock in the Company (including, without limitation, pursuant to a contract to purchase, by exercising an option or warrant, by converting any other security or instrument, by acquiring or exercising any other right to acquire, shares of stock or other security convertible into shares of stock in the Company, or otherwise, and such options, warrants, conversion or other rights shall not be exercisable) to the extent such stock acquisition would cause any interest (including any original issue discount) payable by the Company to the Purchaser not to qualify as portfolio interest, within the meaning of Section 881(c)(2) of the Internal Revenue Code of 1986, as amended (the "Code") ”), by reason of Section 881(c)(3) of the Code, taking into account the constructive ownership rules under Section 871(h)(3)(C) of the Code (the "Stock Acquisition Limitation"). The Stock Acquisition Limitation shall automatically become null and void without any notice to Company upon the earlier to occur of either (a) Company's ’s delivery to Laurus the Purchaser of a Notice of Redemption or (b) an Event of Default under, and as defined in, the Note, so long as, at the time of the occurrence of an Event of Default, the average closing price of Company's Common Stock ’s common stock as reported by Bloomberg, L.P. on the Principal Market for the immediately preceding five (5) trading days is greater than or equal to 130150% of the Fixed Conversion Price at such time.

Appears in 1 contract

Samples: Securities Purchase Agreement (Pacific Biometrics Inc)

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