Redemption Premium. In the event that Lender elects not to retain any of the Shares in accordance with Section 6 of the March 2011 Securities Issuance Agreement, then Borrower shall pay to Lender, as a loan premium, the sum of One Hundred Seventy Thousand Dollars ($170,000) (the “Redemption Premium”) on the terms set forth in Section 6 of the March 2011 Securities Issuance Agreement. In the event that Lender elects to retain all of the Shares, then no Redemption Premium shall be payable. In the event that Lender elects to retain a portion, but not all, of such Shares, then the Redemption Premium shall be reduced to an amount equal to the product of (A) $170,000 and (B) a fraction, the numerator of which is the number of Shares that Lender elects not to retain, and the denominator of which is 1,000,000. For example, if Lender elects not to retain 300,000 Shares, then the Redemption Premium shall be $51,000. The Redemption Premium payment obligation shall constitute Obligations for all purposes hereunder and shall be fully secured by the Collateral.”
Appears in 2 contracts
Sources: Loan and Security Agreement, Loan and Security Agreement (Jagged Peak, Inc.)